ACCA MALAYSIA SUSTAINABILITY REPORTING AWARDS (MaSRA) 2013

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contents

Introduction 4

PanelofJudges 7

2013Entrants 8

Short-listedReports 10

ACCAMaSRA2013Winners 13

Judges’Comments 20

SupportingOrganisation 22

AboutACCA 23

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Acrosstheglobe,CorporateSocialResponsibility(CSR)isbecomingincreasinglyintegraltobusinessasregulatorsandstakeholdersexpectcompaniestobehaveresponsiblyandsustainably.Indeed,CSRisgaininggroundasabenchmarkandcriterionformarketcompetitivenessandinvestmentdollars.RecognisingtheglobalmomentumoftheCSRmovement,theACCAMaSRAaimstochampionCSRandsustainabilityinMalaysiabyhonouringthecompaniesthatdemonstratethehigheststandardsinsustainabilityreporting.

After a year’s hiatus, the ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2013 returns with the theme of ‘Diversity and Inclusion’. ACCA and Talent Corporation Malaysia Berhad (TalentCorp) – its supporting partner for ACCA MaSRA 2013 – would like to thank all the companies that participated this year.

TheACCAMaSRA2013isnotjusttimely,butitisalignedwithongoingglobalinitiativestoembedsustainabilityreportingincorporatedisclosureandstrategy.

Lastyear,Paragraph47(P47)oftheUnitedNationsRio+20EarthSummit’soutcomedocumentprovidedexplicitsupportfortheconceptofsustainabilityreportingbylistedandlargecompanies.Subsequently,aconsortiumofgovernmentsthenformedaGroupofFriendsofParagraph47tosupportandupholdsustainabilityreporting.

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introduction

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Sustainabilityshouldencompassmorethanpublic-listedcompaniestobemeaningful,sincesmallandmediumenterprisesandprivately-heldcompaniestoohaveatremendousimpact.TheUNGlobalCompact’s(UNGC)TriennialLeaders’SummitinNewYorkonSept20,2013unveiledanewbusinessengagementstructureaimedatencouragingprivatecompaniestoleverageonsustainabilitydevelopmentandreporting.

Meanwhile,majorinvestorsandotherthoughtleaders–includingACCA–continuetokeepupthepressurethroughtheCorporateSustainabilityReportingCoalition(CRSC),whichworkstolobbygovernmentstodevelopnationalregulationsmandatingtheintegrationofmaterialsustainabilityissuesincompanies’annualreportsandaccounts.

Evolvingstandardsarevitaltocontinuouslyimprovingthequalityofsustainabilitydisclosure.TherecentlaunchofthefourthgenerationofsustainabilityreportingguidelinesG4byGlobalReportingInitiative(GRI)inMay2013isyetanotherstepupinelevatingsustainabilityreporting.ReplacingtheG3.1Guidelines,G4ismoreuser-friendlyandencouragesorganisationstoreportonlyoninformationthatismaterialtotheirbusiness.G4guidesorganisationsandusersofthereporttofocusonmaterialsustainabilityimpacts,resultinginreportswhicharemorestrategic,focused,credibleandeasierforstakeholderstonavigate.TheG4guidelinesalsoincludednewandupdateddisclosuresongovernance,

introduction

supplychain,greenhousegasemissionsandothercriticalissuestoimprovecomprehensivenessandcompleteness.

TherevisedguidelineswillbecompatiblewiththeIntegratedReportingframeworkwhichwillbelaunchedbytheInternationalIntegratedReportingCouncil(IIRC)inDecember2013.Thiswillmakeitmucheasierfororganisationstounderstandthesynergiesandlinkagesinthesestandards,andusetheminconjunctionwithoneanother.However,inlightoftheearlycut-offsubmissiondate,thecompaniesparticipatinginACCAMaSRA2013wereassessedagainsttheG3.1standards.

MalaysiahaslongrecognisedtheimportanceofCSRasadifferentiatoranditcontinuestostrengthenitsreputationasaleaderandchampionofsustainabilityreportinginAsia.Studiesshowthatmorelocalcompaniesandlocalsubsidiariesofmultinationalcorporations(MNCs)issuesustainabilityreportscomparedtotheirpeersinothercountriesintheregion.

Tosustainthemomentum,theMalaysiangovernmentandregulatorscontinuetoincentiviseandencouragebestpracticesandgoodgovernanceinordertobuildarobustandsupportivelocalinfrastructureforCSRandsustainability.

DuringtheBudget2014presentation,PrimeMinisterDato’SeriNajibTunRazakannouncedthateffortswouldbeintensifiedtowardspromotingMalaysiaasamarketforSocialResponsibleInvestments(SRI).

Furthermore,anEnvironment,SocialandGovernance(ESG)Indexwillbelaunchedinthenearfutureto“raisetheprofileoflistedcompanieswhichhavehighsociallyresponsiblepractices”.

Inaddition,thegovernmentwillestablishaSRIFundmandatedtoinvestinlistedcompaniesthatdemonstratehighaccountability,transparencyandsustainability,includinginclusivenessindiversityencompassinggender,ageandethnicity.

ACCAMaSRA2013receivedatotalof48entries.Thereportswereinitiallyscoredandrankedbyashortlistingpanelofjudges;theynarroweddowntothefieldtothetop16companieswhichwerethenevaluatedbythemainjudgingpanel.Oftheshortlistedentries,11werestand-alonesustainabilityreportsandfiveweresustainabilityreportswithinannualreports.

Reflectingglobaltrendsindiversityandinclusion,ACCAMaSRA2013introducedanewawardcategory:ReportingonGenderDiversity.Thiscategorywascreatedtorewardtheorganisationthatbestreportsontheirpoliciesandpracticesofsupportingwomenintheworkforce.DuringthelaunchofMaSRA2013inFebruary,then-MinisterinthePrimeMinister’sDepartmentTanSriNorMohamedYakcopnotedthatMalaysiahasalabourparticipationrateforwomenof46%,whichisrelativelylowcomparedtoourimmediateneighboursSingapore(60%)andThailand(70%).AccordingtoTalentCorp,thismeansthat

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manyMalaysianwomenareexcludedfromtheworkforce,duetoreasonsrangingfromperceivedinequalityofemploymentopportunitiesandpractices,socialnorms,familyobligationsthatneedtobemet,aswellasself-limitingbeliefs.

NorMohamedemphasisedthatwomen’sparticipationintheworkforcewasakeyagendaforMalaysia,andthecountryneedstounlockthepotentialofhalfthepopulation–whichwillsucceedorfaildependingmainlyontheeffortsofcorporateMalaysia.

Aswithanynewly-introducedcategory,thenumberofreportswhichcouldbejudgedbasedonthereportingcriteriaforGenderDiversitywaslimited.Nosinglecompanystoodoutindiversityreporting,althoughtherewerecommendableattempts.However,itishopedthatACCAMaSRA2013’sinclusionofaGenderDiversityReportingAwardwillstimulatecorporateinterestindiversityandencouragemorecompaniestopursueacultureofdiversityandinclusionwhichcanonlyhavepositivebenefitsforwomen,minorities,familiesandultimately,societyatlarge.

Onafinalnote,itisencouragingtoseeanincreasingnumberofcompaniesembracingsustainabilityreporting,inameaningfulandcomprehensivemanner.Cyclebycycle,theACCAMaSRAjudgescollectivelyhaveseensignificantimprovementsinthequalityofsustainabilityreportinginMalaysia.Thisisatestamenttocompanies’genuinecommitmenttobecomingmoresociallyresponsibleandaccountabletotheirstakeholders.

ACCAcontinuestobecommittedtothevaluesoftheworldwidesustainabilityinitiativeandwelookforwardtoyourparticipationintheACCAMaSRA2014.

introduction

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THE ACCA MaSRA 2013 JUDGES

Mr Goh Ching Yin*ExecutiveDirector,Strategy&Development,SecuritiesCommissionMalaysia

Ms Selvarany RasiahChiefRegulatoryOfficer,BursaMalaysiaBerhad

Y Bhg Dato’ Abdul Rauf RashidCountryManagingPartner,EYMalaysia

En Johan Mahmood MericanChiefExecutiveOfficer,TalentCorporationMalaysiaBerhad

Ms Anna TaingManagingEditor,TheEdgeCommunicationsSdnBhd

Dr Faizah Darus**HeadAsia-PacificCentreforSustainability(APCeS),UniversitiTeknologiMara(UiTM)

Dr Ho Jo Ann**SeniorLecturer,FacultyofEconomicsandManagement,UniversitiPutraMalaysia

Mr Ng Kean Kok**DeputyDean,DepartmentofFinance,UniversitiTunkuAbdulRahman

*Chairmanofjudgingpanel**Memberoftheshortlistjudgingpanel

panelofjudges

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Amway (Malaysia) Holdings Berhad AnnualReport2012:PlacingYourFutureinGoodHands

Astro Malaysia Holdings Berhad InspiringSustainability2011/2012

Bintulu Port Holdings Berhad CorporateSustainabilityReport2012

British American Tobacco (Malaysia) Berhad AnnualReport2012:Celebrating100Years

Chemical Company of Malaysia Berhad AnnualReport2012:LivingAhead,InspiringGrowth

Citibank Berhad AnnualReport2012

Convergys Malaysia NurturingWomenintheWorkplace

DiGi Telecommunications Sdn Bhd SustainabilityReport2012:MakingInternetForAllAReality

DRB-Hicom Berhad AnnualReport2012:SeizingOpportunities,SensingPotential

Encorp Berhad SustainabilityReport2011

Faber Group Berhad SustainabilityReport2011

Faber Group Berhad AnnualReport2012:BuildingValueTogether

Felda Global Ventures Holdings Berhad AnnualReport2012

Guinness Anchor Berhad CorporateResponsibilityReport2011:Together,WeBrewSustainability

Helikonia Advisory Sdn Bhd SustainabilityReport2012

Indah Water Konsortium Sdn Bhd SustainabilityReport2011:MakingADifferencetoOurLivesandEnvironmentviaAGreenerTodayForACleanerandSaferTomorrow

Intel Technology Sdn Bhd 2011CorporateResponsibilityReport:FocusonMalaysia

KKB Engineering Berhad AnnualReport2012

KPJ Healthcare Berhad AnnualReport2012:CareForLife

Kulim (Malaysia) Berhad AnnualReport2012

Kulim (Malaysia) Berhad ANewRoadforSustainableGrowth:SustainabilityReport2010/2011

Lafarge Malayan Cement Berhad AnnualReport2012:AdvancingSustainability

Mah Sing Group Berhad AnnualReport2012

2013entrants

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entrants2013

Malayan Banking Berhad GrowingProfitablyandResponsibly:SustainabilityReport2012

Malaysia Airports Holdings Berhad SustainabilityReport2012:ConnectingWithYou

Malaysia Airports Holdings Berhad AnnualReport2012:ConnectingWithYou

Malaysian Resources Corporation Berhad AnnualReport2012:KLSentralCentralBusinessDistrict

Malaysian Resources Corporation Berhad SustainabilityReport2012:OurCommitmenttoGreen

Maxis Berhad SustainabilityReport2011/2012:ImpactingLives,ImpartingHope

Media Prima BerhadAnnualReport2012:SettingNewStandards

Media Prima Berhad SustainabilityReport2012:SettingNewStandards

MSM Malaysia Holdings Berhad AnnualReport2012

Naim Cendera Holdings Berhad AnnualReport2012:GrowingStronger,EmbracingChange

Nestlé (Malaysia) Berhad AnnualReport2012

Nestlé (Malaysia) Berhad CreatingSharedValueReport2012

Nets Printwork Sdn Bhd SustainabilityReport2011

QL Resources Berhad SustainabilityReport

RHB Banking Group CorporateSustainabilityReport2012

Sime Darby Berhad SustainabilityReport2011:DevelopingSustainableFuture

Sunway Group Berhad Diversity&Inclusion–SupportingWomenintheWorkplace2013

Sunway Group Berhad AnnualReport2012:OneTeamVision

Telekom Malaysia Berhad SustainabilityReport2012:Sustain

UEM Environment Sdn Bhd SustainabilityReport2012:Grow

UEM Sunrise Berhad SustainabilityReport2012:EmbracingSustainableLiving

WCT BerhadAnnualReport2012:BuildingValues

YTL Corporation Berhad AnnualReport2012:TheJourneyContinues

YTL Corporation Berhad SustainabilityReport2012:TheJourneyContinues

Yung Kong Galvanising Industries Berhad AnnualReport2012:Strong&Sustainable

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Growing

Profitablyand Responsibly

SuStainability RepoRt 2012

STAND ALONE CATEGORY

1 DiGi Telecommunications Sdn Bhd SustainabilityReport2012:MakingInternetForAllA

Reality

2 Guinness Anchor Berhad CorporateResponsibilityReport2011:Together,WeBrew

Sustainability

3 Indah Water Konsortium Sdn Bhd SustainabilityReport2011:MakingADifferencetoOur

LivesandEnvironmentviaAGreenerTodayForCleanerandSaferTomorrow

4 Kulim (Malaysia) Berhad ANewRoadforSustainableGrowth:SustainabilityReport

2010/2011

5 Malayan Banking Berhad GrowingProfitablyandResponsibly:SustainabilityReport

2012

6 Maxis Berhad SustainabilityReport2011/2012:ImpactingLives,

ImpartingHope

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short-listedreports

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short-listedreports

7 Media Prima Berhad SustainabilityReport2012:SettingNewStandards

8 Nestlé (Malaysia) Berhad CreatingSharedValueReport2012

9 Nets Printwork Sdn Bhd SustainabilityReport2011

10 Sime Darby Berhad SustainabilityReport2011:DevelopingSustainableFuture

11 UEM Sunrise Berhad SustainabilityReport2012:EmbracingSustainableLiving

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9 10

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ANNUAL REPORT CATEGORY

1 British American Tobacco (Malaysia) Berhad AnnualReport2012:Celebrating100years

2 DRB-HICOM Berhad AnnualReport2012:SeizingOpportunities,SensingPotential

3 KPJ Healthcare Berhad CareForLife:AnnualReport2012

4 Lafarge Malayan Cement Berhad AnnualReport2012:AdvancingSustainability

5 Sunway Group Berhad AnnualReport2012:OneTeamVision

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short-listedreports

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OVERALL WINNER – BEST SUSTAINABILITY REPORT (JOINT WINNERS)MalayanBankingBerhadMediaPrimaBerhad

WINNER – REPORTING WITHIN AN ANNUAL REPORTBritishAmericanTobacco(Malaysia)Berhad

WINNER – BEST FIRST-TIME REPORTERSimeDarbyBerhad

COMMENDATION – PRODUCT RESPONSIBILITYGuinnessAnchorBerhad

COMMENDATION – REPORTING ON GENDER DIVERSITYMalayanBankingBerhadNestlé(Malaysia)Berhad

COMMENDATION – SUSTAINABILITY REPORTING IN SMEsNetsPrintworkSdnBhd

ACCAMaSRA2013winners

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ACCAMaSRA2013winners

OVERALL WINNER – BEST SUSTAINABILITY REPORT (JOINT WINNER)

Malayan Banking Berhad

Thereportshowssignificantimprovementinqualityandcomprehensivenesscomparedtoitsprevioussustainabilitydisclosures.

MessagesfromtheChairmanandChiefExecutiveOfficer(CEO)demonstratetonefromthetopandseniormanagementsupportforsustainabilityinitiatives.Thereportclearlycommunicatestheorganisation’sandleadership’spervasiveandrobustcommitmenttowardsacultureofsustainability.

Thereport’sfocusoneducationandmicro-financingdemonstratesvigorousemployeeandcommunityengagementandcommitmenttowardsthebank’sstrategicgoalsoftalentdevelopmentandfinancialinclusion.

Differentiateditselffromotherparticipants’reportsbyincludingdisclosureonenvironmentalimpactsandconservation,whicharenotwithintheconventionalframeworkofthebankingbusiness.

ExternalthirdpartyassuranceraisesreportingcredibilityandstakeholderconfidencewhiletheGRIApplicationLevelCheckbenchmarkedthereportagainstcurrentGRIdisclosurestandards.

Thereportincludedextensivequantitativehistoricaldataoverafive-yearperiodtosupportthecompany’sstatementsonsustainabilityandtrendanalysis.

Theeye-catching“GenY-friendly”layoutanddesignfeaturedabalanceduseofphotos,textandgraphics.

Theinclusionofaclearanduser-friendlymaterialitymatrixidentifiesandprioritisesissuesthatarehighlymaterialtothebusinessandstakeholders.

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OVERALL WINNER – BEST SUSTAINABILITY REPORT (JOINT WINNER)

Media Prima Berhad

Thisstandalonereportdemonstratesoutstandingcomprehensivenessandcompleteness.

Thereisaclearemphasisonmaterialitythroughtheidentificationandprioritisationofkeystrategicissuesanddisclosureofmaterialityandimpacts.

DemonstratesthoroughcompliancewithGRIguidelinescommensuratewithaGRIratingofA+.

Clearlyexplainshowsustainabilitystrategyisintegratedintothecompany’scorebusinessstrategy.

Providesextremelycomprehensivedata,includingdisclosureofbreakdowns,benchmarksandstatistics.Notably,thereportincludesdetailedinformationonemployeeengagement,includingabreakdownofbenefitsforemployeesacrosstheboard(e.g.thepilgrimagebenefitsforbothMuslimandnon-Muslimstaff).

Theinclusionofathird-partyenvironmentalimpactassessmentreportandexternalassurancecertificationincreasescredibilityandstakeholderconfidence.

Keystakeholderissuesweredisclosedandmappedagainstthelevelofimpactontheirbusinessandimportancetotheirstakeholders.

Companyleveragedmediaplaformsandchannelspositivitytoreachouttovarioussegmentsofthecommunity.

Thereportscoredhighlyforpresentation,makingamemorableimpressionwithitsaestheticlayoutwithclearandsimpletext.

ACCAMaSRA2013winners

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ACCAMaSRA2013winners

British American Tobacco (Malaysia) Berhad

ThereportcompliedseamlesslytoGRIstandards,andstoodoutforitmappingofkeyissuesaccordingtoGRIrequirements.

Thereportprovidedbalanceddisclosureinthefourareasofsustainabilityimpacts–environment,marketplace,workplaceandcommunity.

Thereportwasjudgedtobemostcompleteandcomprehensiveamongalltheshortlistedreportswithinanannualreport.

Despitethenegativeimpactsonbrand,performanceandmarketperception,thereportincludedpicturesofthecompany’sgraphichealthwarningsoncigarettepackagingandacknowledgedtheproducts’effectsandrisksonconsumers,themarketplaceandthecommunityatlarge.

Detailedandaestheticallyappealingstatisticsandgraphicsfleshedoutthetext.

WINNER - REPORTING WITHIN AN ANNUAL REPORT

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WINNER – BEST FIRST-TIME REPORTER

Sime Darby Berhad

Thereportdemonstratedanimpressivestandardofdisclosureforafirst-timereporter.

Thereportwasverycomprehensiveandcomplete,providingabroadoverviewofthecompany’ssustainabilitydevelopmentstrategiesandtheoutcomes.

Thecompanyevidentlyinvestedsignificantefforttowardsthepreparationofthesustainabilityreport.

Thereportisverywell-balancedintermsofpresentation–thelayout,reportingandfactsweremeticulouslythought-outandeasytonavigateandunderstand.

Thereportprovidesaclearandconcisesummaryofthecompany’ssustainabilityperformance–showingitsobjectives,performancetodateandfutureactivitiesplanned.

ACCAMaSRA2013winners

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ACCAMaSRA2013winners

COMMENDATION – REPORTING ON GENDER DIVERSITY

Malayan Banking Berhad

Morethan30%ofthecompany’sC-suitelevelexecutivesconsistofwomen,demonstratingthatthecompanyistranslatingpolicyintoactionableoutcomes.

ThereportclearlydisclosedinformationonDiversityandInclusionpoliciesandperformance,includingstatisticsthatwomenform54%ofthecompany’sworkforceand41%populatemiddleandseniormanagementlevels.

Thecompanyadvocatesinvestinginhighereducationforgirlstoachievelong-termimpactsandimprovesocialandcommunitywellbeing.Asanintegralpartofitsadvocacy,thecompanydisclosedthatitawardedRM1.8millioninscholarshipsforwomentoattendtheAsianUniversityintheperiodunderreview.

COMMENDATION – REPORTING ON GENDER DIVERSITY

Nestlé (Malaysia) Berhad

Policiesongenderdiversityarebackedupbypositiveactionsandoutcomes:42%ofwomenareinleadershippositions,with11%femalerepresentationontheBoardofDirectors.

Thereportprovidestransparentanddetaileddisclosureontherateandtotalnumberofemployeesleavingemploymentbygender.

Thereporttransparentlydisclosestheratiooffemale/malesalariesaccordingtostaffranking:TopManagement,SeniorManagement,MiddleManagement,ExecutivesandNon-Management(unionised).

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COMMENDATION – PRODUCT RESPONSIBILITY

Guinness Anchor Berhad

Displaysadmirablebalancebetweentheattainmentofbusinessobjectivesandthepursuitofsustainabilityinitiativesandstakeholderengagement–suchasthe“DrinkResponsibly”campaign–whichcouldbedetrimentaltobusinessperformance.

Thereportclearlydocumentstheadoptionoftheriverbehinditsfactory,furthervalidatingGAB’senvironment-friendlycredentials.

Thereportsignalsthatthecompanyisadoptingamorepoliticallycorrectapproachtomarketingandadvertisingthatcentersonengaginggender-neutraladvertisementsinsteadoftheold-styleadswhichobjectifywomen.Thereporttransparentlyincludedaside-by-sidecomparisonoftheoldadswiththenew,whichcouldstandasevidenceofGAB’scommitmenttomoreholisticstakeholderengagement.

ACCAMaSRA2013winners

COMMENDATION – SUSTAINABILITY REPORTING IN SME

Nets Printwork Sdn Bhd

Thecompany’spresentationwasveryinteresting–style-wise,thereportcommunicateditssustainabilitystrategiesandoutcomesinaneasy-going,pleasantandengagingmanner.

Thecompanyhassignedanintegritypledge,andcontinuestobeseriousinitscommitmenttosustainabilitypractices.

ThequalityofthereportisastoundingforsuchaSmallandMediumEnterprise(SME),andthejudgesunanimouslyfeltthatitdeservedacommendationinrecognitionofitsefforts.ThisinturnishopedtoencouragemoreSMEstoembarkonvoluntarysustainabilityreporting.

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Thejudgesrecognisethatsustainabilityreportingisalearningprocess,andeachreportwilldifferinitsstrengthsandweaknesses.Inordertoguideparticipantstoimproveonthequalityoftheirfuturesustainabilityreports,andtoencourageandsharetipswithorganisationsthatareplanningtoembarkontheirownsustainabilityreportingjourney,thejudgeshavecompiledalistofrecommendationsbasedontheirreviewofthisyear’sawardsentries.

Thejudgeswereelatedtonotethatthisyear’sentriesshowedasignificantimprovementintermsofreportingquality,suchthatshortlistingthefinal16reportswashighlychallenging.Itwasnoteworthythatmoreandmorelocalconglomeratesaresteppinguptomakesustainabilityreportinganintegralpartoftheircorporatereporting,whetherwithintheirannualreportsorasstandalonereports.Commendably,someofthemareequallymatchedwithmultinationalcompaniesintermsofsustainabilityreporting.

Furthermore,manyoftheleadingreportershaveclearlygonebeyondcompliance,makingdisclosureanintegralpartoftheircorporatestrategyandstakeholderengagementinitiatives.Judgesnotedthattherewasacleardistinctionbetweenthisyear’sentriescomparedtopreviousyears’reports,wherebymanycompaniesproducedsustainabilityreportsmerelytomeetBursaMalaysiareportingrequirements,andnotbecausetheybelievedinthestrategicvalueofdisclosure.

Qualityisalsorisingasalargernumber

ofcompaniesadopttherecommendedstandardsandbestpracticesforsustainabilityreporting,suchasadheringtoGRIrequirements,andobtainingtheGRIApplicationLevelCheckandindependentassurance.

Despitethemanypositiveaspectsofthesubmittedreports,thejudgesnotedthefollowingareasforfutureimprovements:

PRECISE AND FULLER DISCLOSURE NEEDEDOverall,thejudgesrecommendedthatreportsshouldbemoretransparent,comprehensiveandcomplete.Organisationswhichintendtoimprovetheirqualityofsustainabilityreportingarerecommendedto:clearlystateoutrighttheirintentions;implementthem;andfinally,presenttheoutcomesinaclearandconcisemanner.Sinceakeyfunctionofsustainabilityreportingistoenabledecision-making,companiesareadvisedtoincludemorequantifiableandcomparablehistoricaldatatofacilitateanalysisaswellasinformationregardingfutureplansandfollow-upactions.

LEAVE THE COMFORT ZONESPreparerswereurgedtorefrainfromrepetitivereportingandrehashingthecontentsofpreviousreports.Judgesalsoadvisedcompaniestoemergefromtheircomfortzoneinordertoimprovereportingquality.

“Companiesneedtoprovethattheyaremakingmorethanjusttokeneffortsataddressingissueswhichareofconcerntotheirstakeholdersaswellastheir

customers.Theyneedtounequivocallyshowthattheyhavecoherentandobviousprogrammestotackletheseissues,aswellasshowinghowsuccessfultheseprogrammesareinexecution,”commentedjudges.

Furthermore,companiesshouldensureconsistentqualityofreportingacrosstheentireannualreport.Comparedtothestandalonesustainabilityreport,sustainabilityreportswithinanannualreportwereunevenandpatchyinquality.Forexample,onecompany’soverallannualreportwasveryimpressive,butthequalityoftheCSRsegmentpaledincomparisontothatoftheprimarycorporatereport.

PERFORM BEYOND INDUSTRY REQUIREMENTS, CONFRONT DIFFICULT ISSUESWhilereportsweregenerallywellprepared,companiesshouldpushtheenvelopeandstarttacklingissuesbeyondthenormalscopeoftheirbusinessoperationsandindustryrequirements.“Forinstance,utilitycompanieswouldalreadyplaceenvironmentalconservationveryhighontheiragenda–butitismoreofarequirement,andnotsomethingthatisoptionalforthem.Itisalreadyanimperativewhichisexpectedofthem.Theyhavetoprovetobedoingmorethanjustthat.Forexample,theymightdeliverwellonenvironmentalissues,butlackinotherareassuchassocialresponsibilitydisclosures,”commentedjudges.

JudgescitedcompaniessuchasGuinnessAnchorBerhad(GAB)andBritish

judges’comments

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AmericanTobacco(BAT)asfrontrunnersinconfrontingdifficultissuessuchasmarketandethicalrisks.“ItisclearthatcompanieslikeGABorBAThaveadisadvantageasthepublicperceivetheirindustrynegatively,sotospeak–tackletheseissuesveryseriously,andtheydoitquitewell.Theireffortscomeacrossasbeingmoregenuine,especiallycomparedtopreviousyears.”

BATwaslaudedforitstransparentdisclosureandpresentationofproductperformanceandhealthrisksaswellastheimpactonconsumersandmarkets.Notably,BATincludedgraphicpicturesofthehealthwarningsanddeterrentsprintedonitspackaging.

Meanwhile,GABdiscloseditsimpositionofanethicalcodeofbehaviouronitssuppliers,whichshowsthattheyarenotonlywillingtodiscussthedifficultissuesbutarealsowillingtowalkthetalk–animprovementfrompreviousyears.GABalsodemonstratedamorepoliticallycorrectapproachbymovingawayfromexploitativeadvertisementsofwomenintomoregeneralyetengagingads;thiscouldbeaneffortbythecompanytoengagefemalestakeholdersandconsumersandupholdgenderdiversity.Furthermore,itlaunchedthe“DrinkResponsibly”campaign–whichengagedstakeholdersbyhighlightingtherisksofdrinkingbutcouldpotentiallybedetrimentaltotheirfinancialperformance.

ENHANCE GENDER DIVERSITY DISCLOSUREGenderdiversityandinclusionarebecomingincreasinglyimportantinMalaysiaasthecountrystrivestobeefupthetalentpoolbyattractingandretainingmorequalifiedwomenintheworkforce.Keygenderdiversitymeasuresincludemandatingboardroomquotasforwomendirectorsandencouragingfamily-friendlyworkforcepolicies.In2011,theMalaysiancabinetapprovedapolicythatrequireswomentomakeupatleast30%ofexecutivesindecision-makingpositionsinthecorporatesectorinfiveyears’time.Furthermore,thePrimeMinisterDato’SeriNajibTunRazakencouragedlistedcorporationstodisclose,intheirannualreports,policiessuchasflexibleworkingarrangementstopromoteandsupportwomen.

GiventhatgenderdiversityissuesarestillgainingtractioninMalaysia,itishardlysurprisingthatrelateddisclosureremainslimited.Basedontheshortlistedreports,therewasnoclearwinnerforthegenderdiversitycategory.Themajorityofreportslackedclearevidenceonthegenderdiversitybestpractices,didnotcomplywithGRIGuidelinesonGenderandfailedtotranslatepoliciesongenderdiversityintoconcreteoutcomes.“Forexample,onecompanyhadacomprehensivereportaboutitseffortsatencouragingdevelopmentofwomen;however,womenwerepoorlyrepresentedontheboardofdirectorsandmanagementlevel,”commentedjudges.

Merelyprovidingcommentaryongenderdiversityeffortsisinsufficienttobuildcredibility.Thejudgesfeltthatacompany’sstanceongenderdiversityhadtobeadequatelybackedbysolidnumbersandproperpresentationinaccordancewithreportingguidelines.Forexample,thejudgesunanimouslyagreedthatSunwayGroupdeservedaSpecialMentionforitseffortstodevelopwomenintheworkforce,butnotedthatthedisclosurecouldhavebeenbetterpresentedwithstrictercompliancetoGRIrequirements.

Inordertoinstillacorporateculturethatsupportsdiversity,organisationsshouldestablishrobustandtransparentdiversitypolicies,implementmeasurableobjectivesandensurefulldisclosureoftheirlong-termtargetsandkeyperformanceindicators(KPIs)onGenderDiversity.Theseincludeputtingstrategiesandpoliciesinplacetoencouragehigherrepresentationofwomenatboardandmanagementlevel.Importantly,tonefromthetopandastrongcommitmentfromleadershiptogenderequalityandparitywillhelporganisationsachievesustainablediversityinthelongterm.

judges’comments

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supportingorganisation

PARTNER

Talent Corporation Malaysia

TalentCorporationMalaysia(TalentCorp)wasestablishedon1January2011underthePrimeMinister’sDepartmenttoformulateandfacilitateinitiativestoaddresstheavailabilityoftalentinlinewiththeneedsofthecountry’seconomictransformation.CollaboratingcloselywithrelevantGovernmentagenciesandemployersinpriorityeconomicsectors,TalentCorpdevelopsdemand-driveninitiativesfocusedonthreestrategicthrusts,specifically(1)OptimiseMalaysiantalent,(2)AttractandFacilitateGlobalTalentand(3)BuildNetworksofTopTalent.

WeseeourselvesasthebridgebetweenthepublicandprivatesectorsinMalaysia.Welistentotheprivatesectortobetterunderstandtheirtalentneedsfortomorrow.Wepartnerwiththepublicsectortointroduceandimplementfacilitativepoliciesandinitiativestonurture,attractandretaintoptalentforthecountry.WebelievethatMalaysiatrulyhastalentandthattalentsofallbackgroundswillbeabletofindmeaningfulprofessionalopportunitiesinthiscountry.Towardsthisend,wecollaboratewithemployersandengagewithtalentsathomeandabroadtopromotethedynamicanddiverseprofessionalopportunitiesavailableinMalaysia.

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ACCA(theAssociationofCharteredCertifiedAccountants)istheglobalbodyforprofessionalaccountants.Weaimtoofferbusiness-relevant,first-choicequalificationstopeopleofapplication,abilityandambitionaroundtheworldwhoseekarewardingcareerinaccountancy,financeandmanagement.

Foundedin1904,ACCAhasconsistentlyhelduniquecorevalues:opportunity,diversity,innovation,integrityandaccountability.Webelievethataccountantsbringvaluetoeconomiesinallstagesofdevelopment.Weaimtodevelopcapacityintheprofessionandencouragetheadoptionofglobalstandards.Ourvaluesarealignedtotheneedsofemployersinallsectorsandweensurethat,throughourqualifications,weprepareaccountantsforbusiness.Weseektoopenuptheprofessiontopeople

ofallbackgroundsandremoveartificialbarriers,innovatingourqualificationsandtheirdeliverytomeetthediverseneedsoftraineeprofessionalsandtheiremployers.

ACCAworkstostrengthenaglobalprofessionbasedontheapplicationofconsistentstandards,whichwebelievebestsupportsinternationalbusinessandthedesireoftalentedpeopletohavesuccessful,internationalcareers.Wechampiontheneedsofsmallandmediumsizedbusiness(SMEs)andemergingeconomies,andpromotethevalueofsustainablebusiness.

ToachievethisweworkwithglobalbodiessuchastheInternationalFederationofAccountants(IFAC)andwith77globalpartnerships.Aboveall,weseektobringlong-termvaluetoeconomiesinwhichwedevelopandsupportprofessionalaccountants.

aboutACCA

Wesupportour162,000membersand428,000studentsin173countries,helpingthemtodevelopsuccessfulcareersinaccountingandbusiness,withtheskillsneededbyemployers.Weworkthroughanetworkofover89officesandcentresand8,500ApprovedEmployersworldwide,whoprovidehighstandardsofemployeelearninganddevelopment.

ACCAworksinthepublicinterest,assuringthatitsmembersareappropriatelyregulatedfortheworktheycarryoutand,promotingprinciples-basedapproachestoregulation.Weactivelyseektoenhancethepublicvalueofaccountinginsocietythroughinternationalresearchandwetakeaprogressivestanceonglobalissuestoensureaccountancyasaprofessioncontinuestogrowinreputationandinfluence.

2424

ACCA Malaysia Sdn Bhd(473007P)27thFloorSunwayTower Kuching BranchNo86JalanAmpang Unit#8.0150450KualaLumpur 8thFloorGatewayBuildingtel:1800885051fax:+60327135052 No9JalanBukitMataemail:myinfo@accaglobal.com 93100KuchingSarawakwww.accaglobal.com tel:1800885051fax:+6082426061

AN INVITATION TO PARTICIPATE

Ifyoudiscloseenvironmental,socialorfullsustainabilityinformationaboutyourorganisation,weinviteyoutoparticipateinACCAMalaysiaSustainabilityReportingAwards2014.

TheACCAMalaysiaSustainabilityReportingAwards2014timetableis:

March 2014 Announcementofthe2014Awards

30 June 2014 Entrydeadline

August 2014 Judges’meetings

October 2014 Awardspresentationceremony

IfyouhaveanyquestionsabouttheAwardsscheme,pleasecontact

Ms Dorothy Deotel:+(603)21823606fax:+(603)27135052email:dorothy.deo@accaglobal.com

ACCAMalaysiaSustainabilityReportingAwards(MaSRA)2014