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ACCA MalaysiaSustainabilityReporting Awards(MaSRA)

Judges’ Report 2015

2ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2015


ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 178,000 members and 455,000 students in 181 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 95 offices and centres and more than 7,110 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers.

About ACCA

4Introduction

Businesses and markets are gearing up for subdued growth as the global economic outlook turns bleak, but leveraging Sustainability strategies may prove to be an effective means to fuel healthy long-term growth.

The business case for Sustainability is supported by new research demonstrating that sustainable behaviour improves corporate performance. In a 2015 study, index provider FTSE Russell (FTSE), which develops benchmark indices for capital markets around the world, proved that effective sustainable practices do in fact translate into bottom line gains by comparing companies in its FTSE4Good ethical index against companies in traditional benchmark indices. FTSE concluded that companies listed on the FTSE4Good index recorded a return of 15.5% over a three-year period compared to 14.7% returns posted by companies listed in their respective country benchmarks.

Similarly, Project ROI in 2015 found that effective corporate responsibility (CR) programmes add tangible value. According to Project ROI’s findings, well-designed CR programmes boosted business value by up to 11% due to higher sales, increased shareholder value and improved employee productivity.

On the investment side, sustainable assets have demonstrated consistent strong growth. Data from the Global Sustainable Investment Review showed that assets linked to Socially Responsible Investment (SRI) grew 61% from $13.3 trillion in 2012 to $21.4 trillion in 2014. Drilling down, SRI assets in Asia grew by a tremendous 32% in 2014. Nevertheless, Asian SRI assets accounted for just US$53 billion of the global total, meaning that there is ample room for further growth.

Closely linked to sustainable business and investment is Sustainability reporting. Sustainability reporting advocates such as the Global Reporting Initiative (GRI) have postulated that

providing high-quality disclosure on sustainable business activities will aid investors in making better-informed decisions, which in turn will pressure businesses to behave sustainably and provide more transparent, improved disclosure in order to influence investors, markets and other stakeholders in perpetuating a virtuous cycle of Sustainability.

Meanwhile, Sustainability reporting continues to gain traction and momentum as investors, regulators and other stakeholders globally demand higher-quality corporate reporting in addition to forward-looking and relevant information to facilitate decision-making as well as asset and resource allocation.

In particular, demand is growing for Sustainability reporting which is linked to enhancing disclosure on key environmental, social and governance (ESG) issues impacting businesses. Such ESG disclosure is especially critical in light of research such as the World Economic Forum’s (WEF) Global Risks 2015 report which shows that ESG risks now constitute seven of the top 10 global economic and business risks.

While Sustainability reporting remains very much voluntary and not mandatory, it is perceived as a major differentiator for both markets and businesses in a VUCA (volatile, uncertain, complex and ambiguous) landscape. Subsequently, many leading regulators have


In ASEAN and the Asia Pacific, Malaysia is in the vanguard of facilitating and regulating corporate Sustainability and investment, and had charted a number of major milestones over the past 12 months. First, it launched the FTSE4Good Bursa Malaysia Index, which measures an organisation’s demonstration of good ESG practices based on criteria specified by the FTSE. Second, it became a signatory to the UN Sustainable Stock Exchanges Initiative, committing itself to developing and upholding global ESG best practices, which include promoting improved ESG disclosure among its listed members. Finally, Bursa Malaysia launched a Sustainability Guide and Toolkit alongside new Sustainability reporting requirements in the 4th quarter of 2015, which will help Malaysian PLCs expand their business activities to incorporate Sustainability considerations into their business strategy and operations.

Through our ongoing advocacy and celebration of excellence in Sustainability reporting, the ACCA Malaysia Sustainability Reporting Awards (MaSRA) aims to accomplish a similar goal – to encourage Malaysian enterprises and businesses to leverage Sustainability strategies and reporting to enhance performance and longevity. ACCA is confident that by utilising their competencies in analysing and reporting relevant and forward-looking information, our globally-recognised finance professionals can play a significant role in transforming organisations into high-performing, transparent and sustainable entities. Our vision is that ACCA MaSRA will serve as an influential platform that recognises excellence and best practices in Sustainability reporting, promotes transparency and best practices, and supports the development of Sustainability reporting and sustainable business in Malaysia.

Beyond this, ACCA is partnering Talent Corporation Malaysia Berhad (TalentCorp) to position MaSRA

Introduction

as a vehicle to drive diversity and inclusion (D&I). Our joint advocacy of D&I is a strategy to help manage the country’s talent shortage, which has been identified as a major challenge impeding Malaysia’s long-term economic Sustainability and competitiveness. Starting from 2014, MaSRA awards special recognition to companies with sustainable workplace practices that promote diversity and inclusivity in the workforce, and hence support talent retention and development.

Now in its 12th edition and still going strong, ACCA MaSRA 2015 received a total of 51 entries, a 13% increase from 2014. Attesting to the effectiveness of our message that Sustainability reporting applies to entities of all sizes and categories, MaSRA is delighted to welcome 12 new entries from non-PLCs and SMEs for the 2015 edition of the awards.

Looking ahead, we believe that the new measures put in place by Bursa Malaysia to encourage Sustainability and ESG reporting will draw greater participation in ACCA MaSRA in the coming years. Currently, the number of participants in MaSRA consists of only a fraction of the 800 PLCs registered with Bursa Malaysia; there is clearly room for improvement and we welcome new entries annually to enhance the breadth and depth of corporate reporting.

Finally, we wish to thank our partners and collaborators, TalentCorp and Bursa Malaysia, for their continuing endorsement and support of the ACCA MaSRA. We would also like to thank all participating organisations for being involved in this ongoing Sustainability reporting journey. ACCA Malaysia pledges its long-term commitment to raising the quality of global corporate reporting by advocating responsible Sustainability reporting, and invite all qualified preparers to take part in ACCA MaSRA 2017.

championed Sustainability reporting as a recommended best practice to improve the competitiveness of their financial and capital markets.

In the Asia-Pacific region, the Singapore Exchange and the Stock Exchange of Hong Kong Ltd (SEHK) have identified Sustainability reporting and ESG reporting initiatives as market drivers. Once it completes the amendments to its listing requirements in 2016, the SEHK – like the Stock Exchange of Thailand and Bursa Malaysia – will mandate ESG disclosure among its listed companies. Reportedly, Singapore will mandate ESG disclosure in 2017.

62015 Entrants

A K

L

M

N

B

D

C

F

G

I

Advanced Micro Devices Global Services (M) Sdn Bhd Corporate Responsibility Summary Magazine (Malaysia)

Allianz Malaysia Berhad Annual Report 2014

Amway (M) Holdings BerhadAnnual Report 2014

Astro Malaysia Holdings Berhad Annual Report 2015: 360°

Axiata GroupSustainability Report 2014: Commitment to Development, Towards A Digital Future

Kulim (M) Berhad Integrated Annual Report 2014: A New Energy

Lafarge Malaysia Berhad Sustainability Report 2014

Mah Sing Group BerhadAnnual Report 2014: Quality, The Hallmark of Excellence

Maxis BerhadSustainability Report 2013/2014

Malayan Banking Berhad Sustainability Report 2014: Building ASEAN Together

Malaysia Airports Holding Berhad Sustainability Report 2014: At the Heart of Our Community

Media Prima BerhadSustainability Report 2014: Closer to You

MISC BerhadAnnual Report 2014: Resolute, Purposeful, Energised

Nestle (M) BerhadAnnual Report 2014: Touching Lives

Nets Printwork Sdn BhdSustainability Report 2014: Delivering Green Values

Bank RakyatAnnual Report 2014: 60 years of delivering value through excellence

British American Tobacco (M) Berhad Annual Report 2014: The Bat Way

Digi Telecommunications Sdn Bhd Sustainability Report 2014: Let’s Inspire

Carlsberg Brewery Malaysia Berhad CSR Report 2014

Cenviro Sdn Bhd (f.k.a.UEM Environment)Sustainability Report 2014: Driving Sustainability

CIMB Group Holdings Bhd Sustainability Report 2014

Felda Global Ventures Holdings BerhadAnnual Report 2014: Ingenuity Incorporated

Fuji Xerox Asia Pacific Pte Ltd Sustainability Report 2014: Beyond Partnership…Soaring High

GD ExpressAnnual Report 2014

Genting BerhadAnnual Report 2014

Genting Malaysia BerhadAnnual Report 2014

Guiness Anchor BerhadAnnual Report 2014: Breaking Boundaries & Innovating for the Future

IJM Corporation BerhadAnnual Report 2015: Performance Precision Potential

IJM Plantations BhdAnnual Report 2015: Nurturing Sustainability


ACCA MaSRA 2015 entries

T

R

U

S

P

Telekom Malaysia Berhad Sustainability Report 2014: Game Changer

Top Glove Corporation Berhad Annual Report 2014

TSH Resources BerhadAnnual Report 2014: Continuity of Growth

RHB Capital BhdAnnual Report 2014

UEM Group BerhadSustainability Report 2013/2014

UMW Holdings BerhadAnnual Report 2014: Beyond Boundaries

United Plantations Berhad United Plantations Berhad Annual Report 2014

Universiti Sains Malaysia USM Policy on Sustainability 2014

Y

Yayasan Bank RakyatLaporan Tahunan Yayasan Bank Rakyat 2014

YTL Corporation BerhadSustainability Report 2014: The Journey Continues

Salcon BerhadAnnual Report 2014: Achieving Sustainable Growth

Sime Darby BerhadAnnual Report 2014

Sime Darby Plantation Sdn Bhd Sustainability Report 2014

Sime Darby Property Berhad Sustainability Report 2014

SME Bank BerhadSustainability Report 2014

Sunway BerhadAnnual Report 2014

Sunway Real Estate Investment Trust Annual Report 2015: Half a Decade of Success

Petronas Chemicals Group Berhad Annual Report 2014: Accelerating Excellence

Petronas Gas BerhadAnnual Report 2014: Driving Transformation

Petroliam Nasional Berhad (Petronas) Sustainability Report 2014

Puncak Niaga Holdings Berhad Annual Report 2014: Staying the Course

PwC MalaysiaFit for The Future: Corporate Responsibility 2014 - 2015

8Shortlisted

Participants Shortlisted Winners51 20 7Allianz Malaysia BerhadAnnual Report 2014

Cenviro Sdn BhdSustainability Report 2014

Fuji XeroxSustainability Report 2014

Kulim (Malaysia) BerhadIntegrated Annual Report 2014

Allianz Malaysia BerhadSustainability Report 2014

DiGi.Com BerhadSustainability Report 2014

British American Tobacco MalaysiaAnnual Report 2014

Axiata Group BerhadSustainability & National Contribution Report 2014


Kulim (Malaysia) BerhadIntegrated Annual Report 2014

Lafarge MalaysiaSustainability Report 2014

Malaysia Airports BerhadSustainability Report 2014

Maybank BerhadSustainability Report 2014

Media Prima BerhadSustainability Report 2014

Nets Printword Sdn BhdSustainability Report 2014

Sime Darby BerhadAnnual Report 2014

Sime Darby Property BerhadSustainability Report 2014

UEM Group BerhadSustainability Report 2014

Telekom Malaysia BerhadAnnual Report 2014

PwC MalaysiaCorporate Responsibility Report 2014

Petronas BerhadSustainability Report 2014

Shortlisted Reports

1 0Shortlisted reports by Category

Stand-alone Sustainability Report

Axiata Group Axiata Sustainability Report 2014: Commitment to Development, Towards A Digital Future

Shaping the future: Towards a digital company (ebook)

Cenviro Sdn Bhd Driving Sustainability

Digi.com Berhad Sustainability Report 2014: Let's Inspire

Malayan Banking Berhad Sustainability Report 2014: Building ASEAN Together

Malaysia Airports Holding Berhad Sustainability Report 2014: At the Heart of Our Community

Media Prima Berhad Sustainability Report 2014: Closer to You

Nestle (M) Berhad Touching Lives : Nestle in Society 2014

Petroliam Nasional Berhad (Petronas) Petronas Sustainability Report 2014

PwC Malaysia Fit for The Future: Corporate Responsibility 2014-2015

Telekom Malaysia Berhad Sustainability Report 2014: Game Changer

UEM Group Berhad Sustainability Report 2013/2014

First-time Reporter

Lafarge Malaysia Berhad Sustainability Report 2014: Lafarge Malaysia Bhd

Sime Darby Plantation Sdn Bhd Sime Darby Plantation Sustainability Report 2014

Sime Darby Property Berhad Sime Darby Property Sustainability Report 2014

SMEs category

Fuji Xerox Asia Pacific Pte Ltd Sustainability Report 2014: Beyond Partnership…Soaring High

Nets Printwork Sdn Bhd Sustainability Report : Delivering Green Values

Reporting within Annual Report

Allianz Malaysia Berhad Allianz Annual Report 2014

Allianz Sustainability Booklet 2014

British American Tobacco (M) Berhad BAT Malaysia's 2014 Annual Report: The BAT Way

Kulim (M) Berhad Integrated Annual Report 2014: A New Energy

Sime Darby Berhad Sime Darby Berhad Annual Report 2014

1 1ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2015


From left to right: Sridharan Nair, Managing Partner of PwC Malaysia; Datuk Tong Poh Keow, Group Chief Financial Officer of Sime Darby Berhad; Tan Sri Dato’ Seri Syed Anwar Jamalullail, Chairman of Nestlé (M) Berhad; David Chin, Head of ACCA Malaysia; Mohamad Idham Nawawi, Group Chief Corporate Officer of Axiata Group Berhad; Dato’ Seri Abdul Wahid Omar, Minister in the Prime Minister Department of Malaysia; Dato’ Dr Lukman Ibrahim, President of ACCA Malaysia Advisory Committee; Vimala Menon, Independent Non-Executive Director and member of the Audit & Risk Committee of DiGi.com Berhad; Nor Azahar Husain, Head, Sustainability & Quality Management of Sime Darby Property Berhad and The Soo Tyng, Sustainability Strategy & Programme Director, Nets Printwork Sdn Bhd.

The winners of ACCA MaSRA 2015 and guest of honours on stage.


Category Winner

Winner: Best Sustainability Report Axiata Group Berhad

Runner-up: Best Sustainability Report DiGi.Com Berhad

Runner-up: Best Sustainability Report Nestlé (M) Berhad

Best First-Time Standalone Sustainability Report Sime Darby Property Berhad

Best Sustainability Reporting in SMEs Nets Printwork Sdn Bhd

Best Reporting Within an Annual Report Sime Darby Berhad

Best Workplace Practices PwC Malaysia

1 4Winners

Best Sustainability AwardRunner-Up: Best Sustainability ReportsBest Reporting Within an Annual ReportBest First-Time Stand-alone Sustainability ReportBest Workplace Practices


Winner: Best Sustainability Award Axiata Group Berhad

Ranked as the best overall report by the ACCA MaSRA panel of judges, Axiata Group Berhad’s (Axiata) Sustainability report featured numerous best practices, y-o-y improvements, and innovations which differentiated it from the competition and justified its selection. Powerful messages from the President and Group CEO conveyed board and management’s oversight of the Sustainability reporting process, and their commitment to embedding an internal Sustainability culture. These set the appropriate tone from the top, demonstrated high-level support for Sustainability initiatives in Axiata’s different business markets, and enabled tracking of y-o-y progress on its Sustainability goals. The judges praised Axiata’s materiality assessment process (Figure 1), which complied meaningfully with GRI G4

Sustainability Reporting Framework requirements and engaged both internal and external stakeholders, as an appropriate example of best practice. Equally noteworthy was Axiata’s inclusion of its global benchmarking study, which compared the Sustainability performance of the top 20 global telecommunications companies to identify material business issues impacting the sector. Axiata was also commended for clearly linking stakeholder engagement, materiality assessment and material issues to its Sustainability pillars and relevance to operations in subsidiary markets. (Figure 2).

Another innovation was Axiata’s customisation of its Sustainability agenda according to the different needs of each regional market in which it operates. Instead of imposing a blanket sustainability strategy, Axiata tailored its

Sustainability initiatives to meet specific needs within each regional market, therefore efficiently creating value for local communities. For example, Axiata’s Sustainability framework focused on disaster preparation and response plans in countries prone to natural disasters.

The report also effectively conveyed Axiata’s commitment to uplifting economic and social wellbeing through digital inclusion and connectivity, which is a key thrust of its Sustainability agenda. Axiata was one of only four global telecommunications companies to sign the Humanitarian Connectivity Charter at the CGMA Congress in March 2015. This supplements the launch of its Axiata Digital Innovation Fund (ADIF) in 2014 to aid Malaysian companies in realising their digital potential and to expand digital ecosystems, which in turn supports nation-building.


Winner: Best Sustainability AwardAxiata Group Berhad

StrengthsRecommendations for improvement

• Provided clear disclosure of materiality and overview of Sustainability initiatives in both parent and subsidiary companies.

• Linked Sustainability activities with its business activities, and demonstrated robust understanding of its responsibilities.

• Engaged an external assurance provider to audit its Sustainability report, boosting credibility

• Extensive disclosure of supporting Sustainability data, including its economic and social contributions in the markets in which it operates, as well as environmental emissions data.

• Features eco design and printed on environmentally-friendly material to conserve resources. The report was also made available in digital format, in line with Axiata’s goals of expanding digital ecosystems.

• Provide more specific disclosure on policies and initiatives in operating companies.

• Clearly state the link between material issues and operating companies.

• Strengthen discourse on risk management by linking key risk areas to Sustainability initiatives.

• Focus on the current shortcomings in Sustainability to improve future reports (vague).

• Disclose specific feedback received from external stakeholders for improved transparency

• Include more quantifiable data on workplace practices, particularly in the areas of inclusivity and diversity.

“Axiata came out on top this year because it successfully linked its long-term and short-term Sustainability goals and plans to its core business, which many reporters fail to do effectively. Another winning factor was its innovative move to extend its report to cover the Sustainability initiatives of its regional offices. The report also excelled in its identification of materiality analysis and stakeholder engagement.”

Goh Ching YinSecurities Commission

JUDGE’S COMMENT



DIAGRAM OF RISKMANAGEMENT PROCESS

Risk Management Function of Operating Companies

Chief RiskOfficer

Group RiskManagement

Board ofDirectors

Board AuditCommittee

Risk ManagementCommittee (RMC)

Board /Risk Council

Corporate Function

CoSec

Legal & ERM

CorpDev

Marketing

Finance

HR

Technology

CorpOffice

Strategy

Talent

ADS

Reporting Line

Information Flow

Figure 1: Axiata's diagram of its risk management process presents a clear and comprehensive overview of its oversight structure and process.



OUR NETWORK & PRODUCTS

Our OpCo’s champion various products and services that are inclusive for many who are otherwise unable to access the services of a digital ecosystem. Few examples are listed down following the 4A inclusion model5 followed by Dialog in Sri Lanka.

Incl

usio

n b

y Pr

oduc

ts

Affordability

Availability

Accessibility

Applicability

Smart provides cheapest call and data rates in Cambodia

Dialog and Robi

affordable smart phones for less than USD100

All OpCos online access to the Customer centre via chat, email forums

Celcom some of customer centres are accessible to disabled persons

Smart makes 4G available in Cambodia as first operator, followed by iPhone6 launch

XL and Robi

provides a local number for roaming customer where incoming calls become free

Robi and Celcom

provides social media access to feature phones

Dialog has value added services such as ‘Say it in English’

Figure 2: Innovation: Axiata designed specific and differentiated services to ensure digital inclusiveness for all customers in its diverse regional markets.

Figure 3: Judges cited Axiata’s materiality assessment process (Figure 1), which complied with GRI G4 Sustainability Reporting Framework requirements and engaged both internal and external stakeholders, as an outstanding example of best practice.

External Sources Internal Sources

Industry perception We conducted a benchmarking study comparing the Sustainability performance of the top 20 global telecommunications companies4 in 2014. A detailed review was carried out looking into publicly available information on the material issues of our peers.

Group KPI We reviewed the Group’s key performance indicators and their relevance to Sustainability issues.

Group Policy We reviewed the coverage of the Group’s policies in relation to Sustainability.

Top Management Perception We considered the frequency of each of the Sustainability issues or relevant topics taken up in Senior Management Group meetings and the correlation to the company’s longterm/short-term strategy.

Risk Management Matrix We did an assessment of the Group’s Risk Management Matrix and the relationship of key risks across the group to the Sustainability issues.

Regulatory Perception We reviewed the feedback and perception of our regulators across the region. We have looked into areas our regulators stress and request us to work on. We have also taken into consideration the emphasis made by regulatory bodies not directly related to the industry as well.

Our Stakeholder Perception Discussions with internal divisions engaging with our key stakeholders were conducted. Perceptions of each stakeholder group on Sustainability were taken into account. The stakeholder groups we engaged with were employees, customers, the Board of Directors, shareholders, investors and suppliers.


Runner-Up: Best Sustainability Report DiGi.Com Berhad

DiGi.Com Berhad (DiGi)’s Sustainability report excelled in its governance and oversight structure, its completeness and credibility, and successfully linked core business activities and Sustainability strategy.

Tone at the top is manifest. DiGi reports its Sustainability key performance indicators (KPIs) – e.g. Climate Change, People Management, Health and Safety and Supply Chain Risks - to the Board of Directors on a quarterly basis. Furthermore, DiGi reports these KPIs on a quarterly and annualised basis to Telenor Group Sustainability (its parent company in Norway), benchmarking the Malaysian division’s performance against Group’s objectives (Figure 1).

Its materiality assessment, which comprises three distinct processes – identification, prioritisation and validation, convincingly enhanced credibility and completeness. The report provided comprehensive disclosure of Sustainability indicators and metrics, including DiGi’s performance record and historical trends, which measured improvements and declines in numerous relevant key areas. The report was transparent and provided balanced disclosure of the organisation’s footprint and impacts, good and bad, which enhanced credibility and completeness.

DiGi clearly links its Sustainability goals to its core business to their sustainability practices and activities, which was clearly

communicated. Judges commended DiGi’s best practices in building a sustainable supply chain, and in expanding digital inclusion to uplift economic and social wellbeing. DiGi participates in national policy development to deliver broadband access to underserved communities, and works to empower digital literacy and education.

In line with its resource conservation efforts, DiGi made its report available exclusively in a digital format. While they commended this decision, judges expressed concern that the report might not be universally accessible, and recommended that printed reports be made available upon request or at least downloadable into PDF format.



• Structured and consistent approach in assessing its material Sustainability issues.

• Demonstrates a robust Sustainability governance structure and commendable tone from the top.

• Disclosed quantified data over a three-year period to facilitate benchmarking.

• Balanced reporting which disclosed both positive and negative impacts of the organisation, supporting credibility and completeness.

• Clearly linked its Sustainability policies to its core business.

• Consistent and structured approach in determining Sustainability issues.

• Disclosed its participation and impacts in community development.

• Complied to GRI G4 framework requirements and provided adequate benchmarks.

• The only Sustainability report presented in full digital format, demonstrating the organisation’s commitment to Sustainability.

• Report required many cross-references to the website, deterring reading and understanding. In future, the digital version of the report should be made more user-friendly.

• Provide more specific disclosure on materiality assessment by reporting stakeholder feedback.

• Further clarify the links between performance indicators and targets.

• Differentiate risk identification and the risk management process from the materiality assessment disclosure.

• Clearly delineate the scope of reporting by explaining which business/operating units or subsidiaries were included or excluded from the report.

• Consider expanding the scope of assurance to cover statements and claims made in relation to materiality assessment and stakeholder engagement.

• Improve disclosure on diversity and inclusiveness.

“DiGi.com’s report sent a clear message that Sustainability is at the core of the organisation’s business strategy, as reflected in its CEO’s Statement and its Sustainability policies. Apart from adopting a structured and consistent approach in assessing its material Sustainability issues, DiGi surpassed others by monitoring and reporting a set of KPIs to the DiGi Board of Directors and its parent company, on a quarterly and/or annual basis.”

Selvarany RasiahBursa Malaysia

JUDGE’S COMMENT




GOVERNANCE OF SUSTAINABLE BUSINESS PRACTICES

Telenor Group Sustainability

• Setting of KPIs and alignment with Group

• Quarterly reporting of supply chain KPIs

• Annual non-financial reporting

CEO AND DiGi MANAGEMENT TEAM

• Oversee Sustainability-related risks and progress of non-financial KPIs

• Responsible for Sustainable Business policies

DiGi Sustainability Function

• Formulate the CR strategy, policies and goals

• Monitor and facilitate adherence to the CR Policy

• Facilitate and supper various units to achieve CR goals

• Conduct awareness and engagement programmes on CR initiatives

• Sustainability performance reporting

DIVISIONS

• Day-to-day management of Sustainability risk and issues

• Communicate with the CR function on Sustainability-related issues

• Own relevant Sustainability-related corporate policies and ensure compliance to policies

DiGi BOARD OF DIRECTORSOversee DiGi’s Sustainability performance

Quaterly reporting

Monthly reporting

On-going

Figure 1: DiGi’s governance of sustainable business practices.

Figure 2: DiGi clearly benchmarked its Sustainability performance against its targets on a y-o-y basis.

Empowerment Through Connectivity

2014 target objectives, and initiatives 2015 Focus Areas and Targets

• Launched a range of products and services at affordable price points to deliver Internet For All

• Offer products and services that promote affordable and positive use of the internet

• Completed network modernisation programme

• Expanded our 3G network to 86% of polulation coverage

• Rolled out LTE to 32% of population coverage

• Rollout of LTE to reach 50% of population coverage

• Increase sharing of sites to increase coverage

Achieved Ongoing



STAKEHOLDEREXPECTATIONS

POLICYMAKERS

CUSTOMERS EMPLOYEES INVESTORSBUSINESSPARTNERS

MEDIACOMMUNITYAND NGOS

LINK TO CORPORATE STRATEGY

FOCUS AREAS

Digital Inclusion

Internet For All mission

Empowerment Through Connectivity

Network Coverage

Loved by customers

Industry Development

Drive & set industry standards

Community Development

Most engaged corporate citizen

Quality of Service

Loved by customers

Climate Change

Smartest use of network & IT assets

Climate Change and Environment

Green ICT

People Management

Passionate Employees

Passionate Employees

Health, Safety, Security & Environment

Code of Conduct

Sustainable Business Practices

Ethical & Responsible Business

DiGi Values

Corporate Governance

Supply Chain Governance

Consumer Interests (RF, Privacy, Customer Service)

Loves by customers

Figure 3: DiGi’s stakeholder matrix clearly linked stakeholder expectations to desired corporate strategy outcomes and its focus areas of concern.


Runner-Up: Best Sustainability ReportNestlé Malaysia Berhad

Nestlé Malaysia Berhad’s (Nestlé) Sustainability report exemplified many important features of a robust report, justifying its runner-up position.

The Chairman and Managing Director’s joint message signalled that Nestlé management recognises Sustainability as the key to the organisation’s future. This was further supported by the disclosure of the Nestlé group’s governance structure, which oversees the execution of Sustainability objectives and strategies across all of Nestlé’s businesses. Nestlé’s strategy and business operations were communicated through its business ethos “Creating Shared Value” (CSV) and focused on three key areas - Nutrition, Water and Environment and Rural Development (Figure 1). The report demonstrated how Nestlé created shared value at each stage of its value chain and how these values benefited the organisation, and the communities in which it operates (Figure 2).

Nestlé’s inclusion of trend data for the past three years boosted the credibility of its report, showed a robust understanding of the company’s lifecycle and demonstrated changes and improvements over the period under review (Figure 3).

Moreover, Nestlé’s report ably demonstrated the link between its core business and its Sustainability activities which empower the communities in which it operates and transcend simple charity. Nestlé’s initiatives focus on localising the supply chain, facilitating rural healthcare, water conservation and awareness, and contributing towards UN Millennium Development Goals.

Judges singled out Nestlé’s communication of its four pillars of Sustainability—Community, People, Environment and Marketplace—as a winning factor. Nestlé discussed each pillar, its objectives, identification of priority areas, management approaches and strategies, and provided case studies which illustrated Nestlé’s general policies and enhanced reporting credibility.




• Reported comprehensive trend data enabling comparisons over various lifecycles.

• Showed strong links between its Sustainability practices and value creation objectives.

• Meaningful compliance with GRI framework.

• Demonstrated how it adapted global Sustainability policies e.g. Creating Shared Value, to fit the Malaysian context.

• Focused effectively on building sustainable supply chains which create value for Malaysian stakeholders.

• Relevant case studies help readers easily grasp the benefits of Nestlé’s Sustainability initiatives.

• Clarify linkages between the materiality matrix and its Sustainability strategy.

• Offer a more balanced perspective by disclosing specific risks arising from nutritional concerns. Address these issues by discussing solutions.

• Improve disclosure of the unique Sustainability risks facing Nestlé products and Malaysia operations.

• Provide more specific disclosure of stakeholder feedback received during engagement sessions.

• Improve ease of reading; report is currently too cumbersome for comfort.

• Be transparent on negative disclosure which builds credibility e.g. in addressing performance data that has declined compared to 2013.

“Nestlé’s report was thorough, benchmarking against GRI requirements. The report referenced key points, was attractively presented and included good signposting. Nestlé showed that it really understands lifecycle thinking and that it has done a lot to innovate within its business. Nestlé’s global Sustainability policies are well translated in its Malaysia operations and this is evident in all its reports.”

Thiagarajan NadesonWWF Malaysia

JUDGE’S COMMENT

Responsible sourcing : Our commitment: Implement responsible sourcing in our supply chain



CREATING SHARED VALUE

THE NESTLÉ IN SOCIETY PYRAMID

ComplianceLaws, business principles, codes of conduct

SustainabilityProtect the future

CreatingShared ValueNutrition, Water,

Rural Development

Why Nutrition?Food and nutrition are the basis of health and of our business – it is the reason we exist.

Why Rural development?The overall well-being of our various stakeholders – farmers, rural communities, employees, small entrepreneurs and suppliers – is key to our continued success and the nation’s development.

Why Water?Water is one of our most critical resources, the scarcity of which will have a drastic impact on the quality of life as well as on our business operations.

Figure 1: Nestlé’s report clearly defined and presented its key focus areas of nutrition, water and rural development.

Nutrition

Water &Environment

RuralDevelopment

Figure 2: Nestlé’s report demonstrated that its Sustainability initiatives created shared value at each stage of its value chain and benefited both the organisation and society at large.

Agriculture andRural Development

Expertise andsupport for farmers

Providing R&Dand expertise for

suppliers

lnvesting inlocal manufacturing

plants

Building brandsthrough responsible

marketing

Increasing valueand volume sales

Environment,Manufacturing

and People

Product andConsumers

CREATING SHARED VALUE AT EACH STAGE OF THE VALUE CHAIN

Securing suppliesof high qualityraw materials

Improved yieldsand increasedincomes

Improvingcommunityrelationships andproduct quality

Reducingconsumption ofnatural resources

Loweringmanufacturingand distributioncosts

Creating jobsin localcommunities

Entering newand emergingmarkets

Widening accessto nutritionalproducts thatconsumers prefer

Achieving competitiveshareholder returns

Generatinglocal investmentsand economicgrowth

ValueforNestlé

ValueforSociety



SUMMARY OF KEY PERFORMANCE DATA

GRI Ref 2012 2013 2014

The Marketplace

NUTRITION

Products meeting or exceeding Nutritional Foundation profiling criteria (as % of sales) # 78% 78% 77%

Products meeting or exceeding consumer taste preference (as % of sales) # 80% 89% 88%

Products with nutritional plus over competitors (as % of sales) # 52% 53% 51%

Products with a nutritional claim on front of pack PR3 67% 62% 59%

Products covered with NESTLÉ NUTRITIONAL COMPASS (as % of sales) PR3 100% 100% 100%

Products with GDA labelling (as % of sales PR3 98% 98% 98%

Our Environmental Footprint

Total energy (GJ)1 EN5 1,479,099 1,526,031 1,346,213

Total amount of energy per tonne (GJ/tonne)1 EN5 3.94 3.82 3.53

Total direct and indirect greenhouse gas emissions (tonne CO2)2 EN16 158,901 171,747 159,538

Total water withdrawal by source (m3/year) EN8 1,734,455 1,863,027 1,710,038

Volume of water recycled per reused (m3/year) EN10 80,710 80,710 80,710

Landfill waste (tonne) EN22 4,698 1,990 160

Recycling (tonne)3 EN22 11,561 13,303 11,895

Our People

Workforce size LA1 5,881 5,847 5,702

Lost Time Injury Frequency Rate LA7 1.2 1.4 1.5

Leadership positions held by women LA13 42% 37% 43%

In line with the Global Reporting Initiative (GRI), we have included a set of economic indicators in 2015 Report:

# Nestlé-specific indicators1. The data for 2012 and 2013 has been updated as per new reporting from SHE-PM.2. The data for 2012 and 2013 has been updated as per new reporting from SHE-PM.3. All recycling and landfill waste are managed by appointed and authorised Waste Management

Company.

Figure 3: The inclusion of three-year trend data helped readers grasp the impact of Nestlé’s Sustainability activities, and demonstrated the improvements and changes implemented over this period.



Sime Darby Berhad’s exemplary initiative in producing Malaysia’s first integrated report differentiated it from the competition and won praise from the judges and the organisers.

Integrated Reporting <IR> is the next evolution in enhancing corporate reporting and aligns disclosure with the demands of markets and investors. <IR> requires companies to demonstrate

integrated thinking, whereby companies articulate how the capitals they use — financial, manufactured, natural, human, social and relationship, and intellectual – are translated into value over time.

While <IR> is not synonymous with Sustainability reporting, Sime Darby’s integrated report provided a comprehensive overview of the group’s overall Sustainability strategy,

which in turn was supported by individual Sustainability reports from its business divisions. Notably, the report demonstrated strong synergy between Sime Darby’s Sustainability strategy and its business strategy through the 5-Year Group Strategy Blueprint (Figure 1), and recognises that Sustainability must be incorporated as a key strategic element to optimise performance.

The report excelled in its comprehensive and balanced disclosure of its risk management. Sime Darby reported its stakeholder concerns and efforts taken to address those concerns (Figure 2). It revealed those targets it failed to meet, which strengthened reporting credibility. It disclosed the company’s risk identification and management process, and its use of a two-tier board structure to introduce greater accountability into the organisation as a whole (Figure 3).The report offered extra insight by analysing global developments which were relevant to the organisation, e.g. demographics, increasing purchasing power in emerging Asia, resource scarcity, and increasing regulation, and disclosed how these would impact strategic direction and decisions.

To strengthen reporting, judges recommended that Sime Darby include specific disclosure on workplace practices, e.g. policies and performance on diversity and inclusivity in both the local and external market, enabling benchmarking. Going forward, the judges advised Sime Darby to incorporate Sustainability issues into its supply chain. As a large regional conglomerate, Sime Darby can exercise significant influence over third parties to improve the Sustainability and impacts of its global supply chain.




• Commendable effort to produce Malaysia’s first integrated report.

• Balanced reporting of both positive and negative developments. throughout the year under review

• Clear demonstration of the link between its business activities and Sustainability practices.

• Excelled in identifying and engaging with external stakeholders.

• Linked and benchmarked Sustainability progress against its 5-year Strategic Blueprint.

• Comprehensive identification and disclosure of global risks and opportunities.

• Include more specific disclosures on negative developments and feedback from stakeholders.

• Increase disclosure of workplace Sustainability practices such as diversity and inclusiveness.

• Provide measurable data to support its general policies and statements.

• Exert its size, influence and significant trade linkages to build a more sustainable global supply chain.

• Strengthen the materiality assessment section by identifying material issues and including more relevant information.

“Commendably, Sime Darby didn’t just tell the good stories, but also the bad. It was very transparent and balanced in highlighting the decrease of 27% in its lost-time injury frequency rate, and in reporting the 12 fatalities and 7 permanent disabilities that occurred in 2014. The company was able to pinpoint the causes of those incidents and responded by holding training programmes to address high-risk activities. Sime Darby also openly disclosed major delays and issues in its operating countries, and this builds trust and investor confidence.”

Salleh HassanSecurities Industry Development Corporation (SIDC)

JUDGE’S COMMENT



5-YEAR GROUP STRATEGY BLUEPRINT

In FY2011, the Sime Darby Group developed a 5-Year Group Strategy Blueprint. The objective of this blueprint was to articulate a well-defined strategy framework that would drive the Group’s future business direction and financial performance. In the process, the Management aspired to transform the perception of Sime Darby from a large

conglomerate with low response rate to market dynamics into one that is world class with superior shareholder value creation.

Despite the challenges in FY2013 and FY2014 from a sluggish economic environment and other uncontrollable factors such as lower CPO prices and a downturn of the mining industry lasting longer than expected, significant progress

in achieving our strategic goals has been made.

Moving into the fourth year of the 5-Year Group Strategy Blueprint in FY2015, the current focus is on driving execution excellence to obtain the desired end outcomes. Our priorities in FY2015 are outlined on page 019.

The 5-Year Group Strategy Blueprint is underpinned by four key strategic thrusts:

Realise thefull potential of the core

businesses

Strive for leadership position

Pursue strategic portfolio growth

Institute performanceand value-driven culture

1

2

3

4

Figure 1: Sime Darby linked its business activities convincingly with its Sustainability practices to create value for its stakeholders.


GOVERNANCE & AUDIT COMMITTEE

Chairman & majority independent

NOMINATION & REMUNERATION COMMITTEE


4 out of 10 are external Directors






RISK MANAGEMENTCOMMITTEE

Chairman & 50% independent

SustainabilityCOMMITTEE



STAKEHOLDER ENGAGEMENT

Sime Darby’s key stakeholder groups have been identified through the Group’s century of activities in the plantation sector and its recent leadership in the industrial, motors, annual report 2014 property and energy & utilities sectors as below. While Sime Darby aims to respond to all reasonable expectations and concerns, the Group’s main successes are achieved through strategic engagement and active communication with all key stakeholders.

Proactive engagement is an integral process that helps ensure that Sime Darby remains in touch with the needs and expectations of all stakeholders. It also empowers the Group to be more responsive and effective in addressing relevant issues and assists stakeholders in understanding the Group’s strategies and approaches.

STAKEHOLDER GROUPS

Figure 2: Sime Darby clearly identified its stakeholders and their concerns, and explained its stakeholder engagement process.

Figure 3: Sime Darby clearly communicated its two-tier governance structure, which is designed to optimise risk and accountability at group and subsidiary levels.

TWO-TIER BOARD STRUCTURE

SIME DARBY BERHAD BOARD

PlantationFSB

IndustrialFSB

MotorsFSB

PropertyFSB

Energy & Utilities (Non-China)

FSB

Energy & Utilities (China)

FSB


Best First-Time Stand-alone Sustainability ReportSime Darby Property Berhad

First-time Sustainability reporter Sime Darby Property Berhad (Sime Darby Property) produced a balanced report showcasing a robust Sustainability infrastructure and highlighted its commitment to good governance and combating corruption.

In particular, Sime Darby Property’s report stood out for its unique inclusion of a balanced statement on anti-corruption, whereby it disclosed negative corruption incidents and the actions taken to address these.

Sime Darby Property successfully linked its Sustainability initiatives back to the footprint of its core business. For example, Sime Darby Property aimed to assess and quantify its businesses’ indirect economic impacts to ensure that its township developments continually incorporated Sustainability features. Sime Darby Property also developed a Sustainability index based on the GRI framework to help readers track the progress of the company’s Sustainability practices (Figure 2).

The report excelled by incorporating a clear overview of Sustainability-related risks (e.g. resource scarcity, changing customer demand, social and labour risks) that were relevant and critical to the organisation, and disclosed its risk controls for greater transparency. Furthermore, the thoughtful inclusion of a dedicated Sustainability committee and a property Sustainability department (Figure 1) strengthened governance and oversight.




• Strikes an equitable balance in reporting both positive and negative developments, especially corruption issues.

• Detailed identification and disclosure of material issues.

• Excellent disclosure of policies and procedures.

• Effectively aligned Sustainability practices with business strategy.

• Provided comprehensive comparative data.

• Incorporated a reader-friendly Sustainability index for benchmarking Sustainability performance.

• Effectively demonstrated the company’s commitment towards continual improvement through its Sustainability blueprint and goals.

• Improve disclosure of stakeholder analysis.

• Review its Property Sustainability Blueprint and Goals to address concerns relevant to the industry in which it operates e.g. provision of affordable housing.

• Include external assurance for credibility.

• Improve disclosure on workplace practices and diversity.

“Sime Darby Property’s Sustainability report showcased its excellent work in making townships more sustainable. It stood out by being the only report to disclose corruption issues and the measures it took to combat corruption. Overall, the report provided a very clear overview of Sustainability-related risks and how these linked back to Sime Darby Property’s core business activities. Sime’s development of a Sustainability index is a commendable initiative that should be emulated.”

Rita Benoy BushonMinority ShareholderWatchdog Group

JUDGE’S COMMENT



Sustainability GOVERNANCE

Sustainability is embedded in our governance structure and management reporting structure, and is driven from the top. The integration of Sustainability into our governance structure validates our commitment to develop sustainable futures.

Board Sustainability Committee

Property Flagship Subsidiary

Board (FSB)

SIME DARBY BERHADMAIN BOARD

Group Management Sustainability Committee

President & Group Chief

Executive

Group Chief Operating

Officer

Property Managing Director

Property Division Management

Committee (PDMC) Meeting

Sustainability Committee

Property Sustainability

& Quality Management (SQM)

Department

Group Sustainability

& Quality Management

(GSQM) Department

Direct Reporting

Administrative Reporting

Group Level

Property Level

Figure 1: Sime Darby Property’s governance structure included dedicated mechanisms to address Sustainability concerns related to the property sector.



Sustainability INDEX (SUSDEX)

In 2010, we developed a Sustainability Index (SUSDEX) assessment based on the Global Reporting Initiative (GRI) Framework, which covers the ‘triple bottom line’ of Economic (Prosperity), Environment (Planet) and Social (People). The SUSDEX supports us by measuring Sustainability in our townships and business units, and enables us to compare the performance between townships and business units.

The SUSDEX assessment cycle is implemented twice a year, and presently covers:

• All matured townships under Property Development; and

• Facilities and building management under Property Investment.

Our goal is to achieve SUSDEX score of 95% for Property Development, and 90% for Property Investment by the year 2020.In FY2014, two SUSDEX assessments were conducted for each Property Development township and Property Investment facilities, with the average results obtained as follows:

SUSDEX ASSESSMENT

Property Development

Property Investment and Asset Management

AVERAGERESULT

68.2% 65%

65.3% 60%

BASELINETARGET

Figure 2: Development of a GRI-based Sustainability index provided a baseline for y-o-y comparisons.

Figure 3: Sime Darby Property was one of the few reporters which included disclosure on its anti-corruption measures and performance over the course of its fiscal year.

BUSINESS CONDUCT AND ANTI-CORRUPTION

We are committed to behaving professionally, fairly and with integrity in all our business dealings and relationships wherever we operate. As part of our risk management policy and strategy, we evaluate the risk of corruption practices in all our operations. We continue to actively engage with the Malaysian Anti- Corruption Commission (MACC), the Malaysian Anti-Corruption Academy, and Transparency International Malaysia (TI-M).

Our anti-corruption initiatives require that:

• All employees of Sime Darby Property in Malaysia receive compulsory training on anti- corruption through either e-Learning courses or briefings, as part of the mandatory Code of Business Conduct (COBC), which they must acknowledge compliance with; and

• Communication on anti-corruption is provided to all employees through the COBC handbook and, for the new employees, during the Corporate On-Boarding programme.

We take a zero tolerance approach

towards bribery and corruption.

During FY2014, four cases of dishonest conduct were reported in Sime Darby Property. Of these four reported cases, three cases were confirmed corruption violations and one case was related to data privacy. All cases were resolved through appropriate grievance mechanisms.


Best Workplace PracticesPwC Malaysia

A leading advocate of diversity and inclusion in the Malaysian landscape, PricewaterhouseCoopers Malaysia (PwC) achieved recognition for its excellent workplace practices for the second consecutive year (Figure 1).

In particular, judges praised PwC for its active and innovative efforts to promote and report on gender diversity. These included:

• Creating a more nurturing and women-friendly environment through workshops and mentoring programmes

• Appointing three women as partners out of a total of eight new appointments in the previous year (37.5%)

• Ensuring that 50% of all promotions to Executive Director positions were women

• Exceeding the national target of 30% women’s representation in senior management and top management positions

• Appointing a designated Diversity & Markets Leader.

The company’s commitment to diversity was also very evident from the top as the Managing Partner of PwC, Sridharan Nair, is a Steering Committee member of the 30% Club Malaysia—an organisation aimed at developing a diverse pool of talent for businesses.

PwC successfully related its Sustainability strategies back to its key objective of building capacity through education, supporting its claim that talent is its key asset (Figure 2).




• Initiated innovative workplace practices which promote capacity-building, talent retention, and gender diversity.

• Successfully links its community projects back to its chief objective of building capacity and competencies in talent.

• Strong linkage between its Sustainability initiatives and business strategy.

• Transparent disclosure of measurable data enabling year- to-year comparisons.

• Showed tangible improvements over the previous year’s report.

• Included attractive infographics.

• Needs further elaboration on risk factors affecting PwC’s business in Malaysia.

• Engage external assurance to boost report’s credibility.

• Improve disclosure on stakeholder concerns and expectations, as well as management’s responses.

• Expand the diversity agenda beyond the discourse on gender, to cover the inclusion of ethnic and minority groups.

“PwC’s report is our choice for showcasing best workplace practices because it demonstrated a strong diversity and inclusion policy. Women in PwC’s senior management positions exceed the national target of 30%, which clearly shows that the organisation walks the talk. PwC’s achievements are not accidental, as these are supported by initiatives to enhance inclusiveness e.g. mentoring programmes, extending maternity leave to 3 months, enhancing flexible work arrangements and targeting women to rejoin the workforce.”

Johan Mahmood MericanTalentCorp

JUDGE’S COMMENT



WORKPLACE / DIVERSITY AND INCLUSION

2,207 staff

2,379 staff

FY14

FY15

40%

39%

FY14

FY15

of Partners andDirectors are women

of Partners andDirectors are women

FY14

FY14

FY15

FY15

sessions sessions

58% of our graduatehires are women

61% of our graduatehires are women

Guest lectures at local university

10 13

Figure 1: Comparison of diversity and inclusion at PwC’s workplace in financial years 2014 and 2015.



MEASURING OUR IMPACT

Figure 2: PwC’s community engagement activities linked back to their core business by focusing on talent and capacity building.



Figure 3: While PwC identified its stakeholder concerns, judges recommended that it provide increased disclosure on stakeholder expectations and the company’s responses.

RELEVANCE OF TOPICS TO STAKEHOLDERS

This table shows GRI performance indicators or topics which are important by stakeholders groups.

InternalStakeholders

External Stakeholders Performance Indicators

Staff /Partners

Clients Graduates Localcommunity

Others*

Investment in the community (EC7)

Local community engagement, development programmes (SO1)

Environment stewardship• Energy consumption (EN3) & Indirect energy consumption

(EN4)• Greenhouse gas (GHG) emissions (EN15-17)• Initiatives to reduce (EN19) GHG emissions and mitigate

environmental impact (EN27)

Participation in public policy development (SO4)

Customer satisfaction survey (PR5)

Customer privacy and customer data (PR8)

Training on anti-corruption (SO4)

Training for employees (LA9)

Regular performance & career development reviews (LA11)

Workplace• Breakdown of employees by gender, type for Diversity and

Opportunity (LA12)• Equal employment opportunities – number of hires and

turnover (LA1)• Benefits for employees (LA2)

24

*Media, business organisations, etc


Best Sustainability Reporting in SMEs Nets Printwork Sdn Bhd

Nets Printwork Sdn Bhd (Nets Printwork) has won Best Sustainability Reporting in SMEs for three consecutive years, effectively linking Sustainability practice with its overall business strategy, and achieving continuous improvement in developing its Sustainability framework.

The company stands out by adopting an integrated and holistic approach towards Sustainability and disclosure. For example, commitment to Sustainability is evident from strong tone at the top, whereby management employed a Sustainability manager and created a

dedicated Sustainability department. To reduce its impacts, Nets Printwork implements a comprehensive Sustainability strategy focused on holistic lifecycle thinking and continually monitors its end-to-end production footprint (Figure 3). Further legitimising its Sustainability efforts, the company is a signatory of the United Nations Global Compact and is endorsed by the Malaysia Green Technology Corporation.

Naturally, its sustainability activities link back to achieving Sustainability within the community. Its Eco Office Initiative Project helps other companies Go-Green by reengineering waste management procedures sustainably (Figure2).



• Clearly links Sustainability and overall business strategy.

• Engaged effectively with diverse stakeholders in producing the report.

• Extensive disclosure on material issues, including the development of a materiality matrix.

• Implemented initiatives and policies that support management’s holistic and integrated commitment to Sustainability.

• Innovative presentation.

• Company’s strategy of life-cycle thinking enables it to manage its Sustainability footprint effectively.

• Improve disclosure on diversity initiatives to manage talent and build capacity.

• Provide external assurance compliant with the AA1000 Accountability Principles Standard 2008.

• Offer valid reasons for including or omitting GRI G4 items.

• Increase disclosure of long-term Sustainability strategies, targets and timelines.

• Correct typographical and grammatical errors.

“Nets Printwork demonstrates an impressive understanding of Sustainability and its management is committed towards the adoption of sustainable practice. Importantly, the report conveys what drives Sustainability, and it is clear for Nets Printwork that being sustainable and doing business are one and the same. For SMEs, the drive comes from the people at the top, and their aspirations are clearly seen in the company’s operation and principles.”

Sharifatu Laila Syed AliValueCap Sdn Bhd

JUDGE’S COMMENT

Best Sustainability Reporting in SMEsNets Printwork Sdn Bhd




ECO OFFICE INITIATIVE PROJECT (EOIP)

STAKEHOLDER MAPPING

ACKNOWLEDGMENT

ECO OFFICE CONCEPT MODEL

Banks Customer

Government

Employees

Media

Investors

Supplier

NGOs

IndustryCompetitors

For the first time, this Sustainability report is jointly produced by different stakeholder including colleagues from different companies. We would like to thank

Content Team

• Ms Teh Soo Tyng for content development

• Ms Tiffany Chung and Ms Ismarini Azrinie for assisting in data and picture collection

Creative Team

• Christine Gan Xin Lian (NPW) for heading the creative team

• Azimuddin Manaf (NMT) for the drawing of the cover pages

• Christine God Siew Koon (NCS), Teow Tian Hai (NCS) and colleagues (NI) for developing the print layout

• Hiap Moh Paper Co (M) Sdn Bhd for contributing the FSC certified paper

In an effort to have a more sustained business community engagement, we introduced a CSR programme named Eco Office Initiative Project (EOIP). The EOIP is a voluntary collaboration based but structured programme that provide eco office transformation guide and assessment tools for all offices at low cost. The project is funded by Nets Printwork Sdn Bhd. We hope this will intensified our community engagement efforts. This project also covers both our CSR focuses. The objectives of the project are:

Figure 1: Collaborated with diverse stakeholder groups to produce the Sustainability report

Figure 2: Net Printwork’s CSR project links back to their Sustainability principles and is designed to empower other companies to Go-Green.

1. To help company turn green

2. To conserve natural resources, reduce waste and energy through responsible management

3. To establish a model for higher productivity in the workplace

4. To create a more enriched working experience

The aim of the project is to help 100 organisations to establish their eco office in 2 years time based on the concept of Green Purchasing, Green Operation, Green Engagement and Green Growth. There are checklists and criterias as a key evaluation tool to help the participants to identify ways for improvement. The concept was presented as a conference paper during the CARE Innovation 2014 at Vienna, Austria.

GreenPurchasing

GreenGrowth

GreenEngagement

GreenOperation



“GROWING THE SEEDS OF HOPE” Tree Planting Programme

Figure 3: Net Printwork’s Tree Planting Programme exemplifies their philosophy of life-cycle thinking, supports their Sustainability practices, and mitigates the company’s impact on the environment.

We learn that wood based paper contribute the most carbon emission to the printing industry. We are not able to acquire a land or plantation to offset the carbon emission but we can start with little programme like the tree planting programme to contribute our part to the environment. The objectives of organising Tree

Planting Programme themed “Growing the Seeds of Hope” are:

1. To create awareness on environmental protection

2. To reduce the environmental burden via reforestation / forest restoration project

3. To learn about Malaysia’s biodiversity

4. To support the local community economically


Panel of Judges

Final Judges

Goh Ching YinExecutive Director,Market DevelopmentSecurities CommissionMalaysia

Johan MahmoodMericanChief ExecutiveOfficer, TalentCorporation MalaysiaBerhad

Salleh HassanDirector of Examinations & CPE and CorporateGovernance, Securities Industry DevelopmentCorporation (SIDC)

Rita Benoy BushonChief ExecutiveOfficer, MinorityShareholderWatchdog Group

Selvarany RasiahChief Regulatory Officer, BursaMalaysia Berhad

Sharifatu LailaSyed AliChief ExecutiveOfficer, ValueCapSdn Bhd

ThiagarajanNadesonHead of Market and Education, WWF Malaysia


Shortlisting Judges

Dr HajjahFaizah DarusHead, Asia-PacificCentre forSustainability(APCeS), UniversitiTeknologi Mara

Ng Kean KokDeputy Dean,Department ofFinance, UniversitiTunku Abdul Rahman

Dr Ho Jo AnnSenior Lecturer,Faculty of Economicsand Management,Universiti PutraMalaysia

Professor Dr NikNazli Nik AhmadLecturer, Department of Accounting,International IslamicUniversity Malaysia


The distinguished panel of ACCA MaSRA 2015 judges unanimously agreed that there has been a significant improvement in the quality of Sustainability reporting for the period under review, such that it was highly challenging to shortlist the finalists and eventual winners.

Judges’ Comments

Judges’ Comments


During the panel discussion, judges made the following observations:

• In line with previous recommendations, the majority of the participating organisations had adopted International Best Practices, such as complying with Global Reporting Initiative (GRI) principles.

• Responding to escalating demands for high quality corporate reporting, a few companies prepared integrated reports in accordance with the international Integrated Reporting <IR> framework, which was a key point in their favour.

• The number of organisations submitting stand-alone Sustainability reports continues to rise, suggesting that Malaysian organisations recognise the inherent value of Sustainability beyond compliance with statutory listing requirements.

• Interest from non-traditional non-public listed entities is increasing as they recognise the value of Sustainability reporting to engage stakeholders and optimise performance. Non-traditional entities such as Universiti Sains Malaysia and Yayasan Bank Rakyat participated in MaSRA 2015 for the first time.

• Greater participation among SMEs would be highly desirable, since they form the backbone of the Malaysian economy and are thus highly influential in shaping the business and Sustainability landscape.

As in previous years, the judges proposed that organisations adopt the following best practices to improve Sustainability reporting and outcomes in future.

LINKING SUSTAINABILITY TO BUSINESS STRATEGY

A key factor differentiating the MaSRA 2015 winners is their ability to clearly link their business strategy to their Sustainability goals, action plans and targets. The best reporters also disclosed targets, benchmarks and y-o-y quantifiable and qualitative data to show how their business impacts were being managed sustainably.

Despite being one of the few SMEs competing, Nets Printwork Sdn Bhd, which won for Best Sustainability Reporting in SMEs, outranked larger organisations by demonstrating a strong top-down link between Sustainability strategies and business activities. Nets Printwork’s business model incorporated Sustainability into the organisation’s DNA.

Further, Sustainability is described as the “guiding concept” in its migration from conventional printing to eco-printing in 2009.

Its Sustainability initiatives and targets reflected this linkage. For example, it sets a target of ensuring that 30% of annual printing uses Forest Stewardship Council (FSC)-certified paper, and it reports annually on whether this goal was achieved.

Likewise, Sime Darby Property demonstrated clear Sustainability-business linkages and disclosed y-o-y continual improvement on Sustainability goals. By integrating Sustainability considerations in its home designs and township plans, Sime Darby Property convincingly showed how Sustainability is driving its core business activities.

Judges’ Comments


Recommendations:

• Clearly demonstrate the linkage between Sustainability activities and business strategy, including specific goals, action plans, targets and measurable progress, as well as the way forward. Explain if any targets were not fulfilled.

• Design Sustainability initiatives to mitigate the impacts of the core business and empower target stakeholders e.g. people, economy, and environment, instead of being purely focused on philanthropy or CSR.

• Articulate the link between Sustainability strategy and business strategy based on an objective assessment of business impacts, ideally through a materiality assessment.

MATERIALITY ASSESSMENT

Materiality is a core principle of Sustainability reporting and can be defined as the prioritisation of issues or indicators that affect the organisation and its activities directly and indirectly.

Preparers are expected to disclose how materiality is assessed, as well as their internal and external methodologies for determining materiality. Through materiality disclosure, preparers communicate an integrated and “bigger picture” of their impacts to the environment, economy and society.

On the positive side, the majority of participants must be commended for conducting materiality assessments and complying with reporting best practices. However, the quality of materiality assessments and disclosure differed widely, and there is room for further improvement.

For example, while Sime Darby Bhd was adjudged among the best in terms of linking its Sustainability strategy to its business activities, the materiality assessment process could have been more comprehensive in scope, remarked

judges. Instead of focusing its reporting efforts primarily on its Property and Plantation sector, Sime Darby should also have addressed its Sustainability efforts in its other core businesses, e.g. Motors. Even if these areas had been assessed and judged as being less material, balanced reporting requires that Sime Darby disclose their decision together with the relevant supporting explanation.

Similarly, participating financial institutions made a major materiality omission by not discussing the issue of responsible lending, which has emerged as a leading concern in sustainable banking globally. Banks and financial institutions’ lending activities have a major impact on economic development and financial inclusion, and hence responsible lending should deservedly be subject to scrutiny.

Commendably, Axiata innovated its materiality assessment process by conducting a global Sustainability benchmarking study of the top 20 global telecommunications companies to identify the sector’s material issues. Axiata then assessed these against its own criteria in the local context to determine materiality, convincing judges that its assessment process was reliable and comprehensive.

Apart from providing a holistic picture of the organisation’s impacts, the materiality assessment must consider other elements that may affect Sustainability. Some considerations include:

• Product lifecycle. Do assess the various Sustainability impacts of your product throughout its lifecycle, e.g. how should a beverage company recycle its empty plastic bottles to protect the environment?

• Supply chain. Organisations can influence the Sustainability of their supply chains by educating internal and external parties on their impacts and holding them to certain standards e.g. green certification.

• Framing the organisation’s Sustainability impacts within local, regional and global contexts, which is particularly relevant for MNCs with regional and international operations.

Judges reminded organisations that the materiality assessment process should not be a box-ticking exercise, but rather designed to reflect meaningful change in strategising and implementing sustainable behaviour. An organisation should be cognizant of its Sustainability footprint and impacts in the larger ecosystem.

Recommendations:

• The assessment should encompass the organisation’s whole lifecycle and value chain, and is best presented through a materiality matrix.

• Benchmarking against the industry and global trends adds value; readers are able to assess whether the organisation’s behaviour is sustainable in the local context.

• Adopt recognised materiality assessment approaches such as the AA1000 Accountability Principles Standard 2008 to improve assurance and credibility, as was done successfully by DiGi.Com Bhd.

• Materiality assessment is more effective if organisations improve their engagement with internal and external stakeholders to assess all their impacts.


Stakeholder engagement is integral to creating and maintaining a robust Sustainability strategy. Genuine and open interaction between organisations and stakeholders helps identify key challenges that may impact a company or industry, and enables organisations to develop effective mitigation strategies.

At its best, stakeholder engagement is a constructive two-way process whereby organisations gather feedback on material issues that aid the materiality

Judges’ Comments


GOING DIGITAL

Presentation is an important element of excellent reporting, and organisations should focus on the judicious management of resources for Sustainability. Elements such as colourful pictures, complex design and non-standard page sizes may compromise the Sustainability message.

While excellent in tone and disclosure, Malayan Banking Bhd’s (Maybank) submission was printed on non-standard page sizes and used colour and pictures liberally, which counted against it. Judges similarly expressed concern that Nets Printwork’s report may be unsustainable if printed on a large scale.

While organisations are now actively providing digital reports to complement their printed reports, the judges recommended that digital reports be given greater priority. This does not mean that digital reports should be replicas of the printed version, but should be thoughtfully designed to facilitate ease of reading and cross-referencing. DiGi.Com Bhd’s decision to issue digital-only reports last year was commended by the judges, although there was a general consensus among the judges that printed reports should be made available upon request.

Recommendations:

• Prioritise digital reports, which should be the way forward.

• Facilitate cross-referencing by equipping digital reports with “word search” functions.

• Enable downloads of digital reports into PDF or e-book formats.

• Make digital reports available on interactive applications.

• Print limited copies of summarised physical reports or produce fully printed reports only upon request.

Judges’ Comments

assessment process, while demonstrating responsiveness and goodwill to address stakeholder concerns. Where public-listed entities are concerned, Sustainability issues should be given more weight since regulators, markets and investors are increasingly prioritising ESG (environmental, social and governance) considerations.

Judges commended Axiata Group Bhd for its outstanding stakeholder engagement process, whereby it reached out to local stakeholders in its home and regional. Subsequently, Axiata was able to differentiate the needs of diverse stakeholders and tailor market-appropriate strategies.

Recommendations:

• As organisations’ Sustainability frameworks mature, they will need to demonstrate greater responsiveness to stakeholders to inspire market confidence.

• Organisations need to expand their pool of internal and external stakeholders and engage them better to identify their concerns when assessing materiality.

• Management’s response post-engagement should be clearly disclosed to reassure stakeholders that they are studying said feedback and formulating appropriate actions.

• The stakeholder engagement process requires that organisations disclose their interventions and actions, and their progress with regards to current and future goals.

ETHICS AND GOVERNANCE

Judges recommended that organisations enhance their disclosure on ethics and governance issues as these have a significant impact on the Sustainability of a company. Furthermore, regulators, markets and other stakeholders are paying increasing attention to governance issues which are part of ESG considerations. Bursa Malaysia, for

example, has assigned corruption as a key indicator and area of particular interest to stakeholders in recent amendments to its Sustainability reporting guidelines.

Despite the growing emphasis on ESG, only two organisations participating in MaSRA 2015 reported on corruption issues: Sime Darby Property and PETRONAS. Judges lauded PETRONAS for disclosing its stance on corruption and reporting relevant data e.g. the number of staff that had undergone its Anti-Bribery and Corruption Compliance Programme and its corruption training for third parties working with the organisation. Sime Darby Property similarly reported on its anti-corruption policies and performance, including incidents of corruption as well as the measures taken in response. Judges commended Sime Darby Property’s transparent disclosure in this area and encouraged others to emulate the organisation.

Recommendations:

• Organisations should assign greater importance to disclosure on good governance and capacity-building, especially incidents of corruption and ethical misconduct in compliance with heightened expectations for ESG reporting. There is currently insufficient disclosure on corruption risk assessments and management as well as subsequent actions taken.

• Organisations can improve in this area by reporting specific cases regarding allegations of corruption or unethical behaviour that occurred during the year under review, and the actions taken by management in response to these cases.

• Commitment to good governance is demonstrated by instituting a clear governance structure with oversight and accountability to enforce policies against corruption and unethical practices.

• Organisations should ideally disclose the composition and roles of the organisation’s ethics committee.


ADOPT INTEGRATED REPORTING

Integrated Reporting, or <IR>, has been hailed as the next evolution of corporate reporting as it places equal priority on financial and non-financial narratives and integrating these in a more meaningful and coherent way. Although <IR> and <SR> are not synonymous, the adoption of integrated thinking and <IR> can support Sustainability reporting. The concept of <IR> requires a company to report its strategy, governance, performance and prospects, and its use of multiple capitals to explain how it creates sustainable value. Malaysian regulators too are encouraging organisations to voluntarily adopt <IR> to differentiate local markets and improve their competitiveness. As of 2015, Sime Darby Berhad became the first organisation in Malaysia to issue an Integrated Annual Report.

In their assessment, the judges remarked that Sime Darby effectively delegated

Judges’ Comments

ownership of Sustainability reporting to its various divisions to overcome silo reporting. Sime Darby successfully produced an integrated report despite the organisation’s size and diversity, while clearly disclosing its integrated thinking and strategies across the various business units and how these linked back to long-term sustainable performance.

Judges recommended that other organisations adopt the integrated thinking and reporting approach to improve their reporting and business Sustainability in future.

Recommendations:

• Organisations need to focus selectively on quality versus quantity of information when preparing their reports based on the <IR> framework.

• Link reporting back to integrated thinking by explaining how key Sustainability-related risks are being managed under the Sustainability strategy, and the relevant actions being undertaken.

WORKPLACE PRACTICES

Given the dire skills shortage, talent has become a key Sustainability issue for local organisations, and diversity and inclusivity (D&I) has been positioned as an important Sustainability strategy in managing talent risks.

As such, ACCA works together with Talent Corporation Berhad to recognise and reward D&I efforts on the MaSRA platform, hence supporting talent Sustainability and nation-building.

In MaSRA 2015, judges declared that while many organisations disclosed their diversity policies, few provided specific metrics and data measuring the outcome of their initiatives. Judges also advised organisations to actively pursue their diversity agenda, in addition to enforcing non-discrimination.

Overall, organisations currently remain focused on gender diversity and female empowerment issues. However,

Although integratedreporting and sustainability reporting are not synonymous, the adoption of integrated thinking and integrated reporting can support Sustainabilityreporting.


Recommendations:

• There is an urgent need to expand the scope of disclosure to include diversity and inclusivity metrics such as gender composition by level, ethnicity, age, compensation, work arrangements, and work-life balance and benefits that are available for employees.

• Organisations should report on matters such as employee turnover rates, employee engagement, training and development career paths, and most importantly, indication of tone from the top and a supportive culture in advocating healthy workplace practices.

HONEST AND TRANSPARENT COMMUNICATIONS

The best Sustainability reports clearly articulate the link between their Sustainability strategies and core business, provide comprehensive and comparative information that enable readers to track progress, and importantly, strike a balance between disclosing positive and negative news.

Naturally, organisations prefer to omit negative developments when reporting but this impedes readers from forming an objective opinion of risks and potentials.

Report readability and structure were key factors in presentation, with winners including Axiata, DiGi.Com and Sime Darby Bhd raising the bar. Winning

Judges’ Comments

organisations need to expand their definition of diversity beyond gender, and address risks such as demographic change, minority inclusion, employee attrition and talent development. Most importantly, organisations need to show that the commitment to diversity comes from the very top and cascades down throughout the organisation.

Reminiscent of MaSRA 2014, Maybank and PricewaterhouseCoopers (PwC) continued to stand out in reporting on workplace practices. Maybank transparently disclosed its workplace diversity targets e.g. greater female Board representation and ensuring that 80% of all promotions were filled from internal sources. Judges remarked positively on Maybank’s honest reporting of unfulfilled targets and its measures to address those shortcomings in the future.

PwC was ultimately chosen as the winner of the Best Workplace Practices award because of its continuous improvements in managing diversity and inclusion in the workplace, and its effort to address shortcomings that were identified previously. For example, PwC increased the number of women who were appointed as Partners and introduced key measures to facilitate women returning following a career break. Judges commended PwC’s extension of maternity leave and the implementation of flexible work hours as progressive initiatives that would make workplaces more inclusive and diverse.

reports did equally well in communicating the organisation’s understanding of its impact on the economy, society and environment, as well as its initiatives designed to mitigate the impact.

The judges reminded organisations that sustainable behaviour is an infinite responsibility that is not discharged once their reports are published. Their subsequent responses and communications on newly emerging risks were taken into account during the judging process. For example, certain organisations were alleged to have been perpetrators in the haze which shrouded ASEAN in 2015. However, the judges considered their swift response to the allegations and subsequent remedial actions as evidence of the organisations’ commitment to resolving the issue.

Recommendations:

• Reports should be more balanced and transparent in explaining controversies surrounding the organisation’s business as well as explaining missed targets and plans.

• Winning reports should clearly reflect the organisation’s understanding of its impacts on the economy, society and environment.

• Organisations should insert more relevant data into their narrative reporting, so readers need not constantly refer to the appendices to obtain required information.


Judges’ Comments

CONCLUSION

Overall, the judges were satisfied that the quality of reporting had improved acceptably in 2015. Participating organisations had broadly demonstrated an understanding of Sustainability goals and frameworks, although the majority of reports had room to improve their depth and breadth of disclosure.

In closing, the judges advised that specific disclosure is more valuable compared to generic disclosure, and that detailed linkages added more value than general statements. This does not mean that organisations need to embellish their reports with maximum detail; rather, they should be selective and disclose only the most relevant material issues and Sustainability initiatives. Organisations should also provide more meaningful disclosure on trending developments such as diversity and corruption instead of providing minimal information or none at all.

Recognising the tremendous role and impacts of SMEs in the Malaysian economy, greater SME participation in Sustainability reporting would be encouraged and highly desirable. Although the judges acknowledge the constraints on SMEs’ limited resources, SMEs need to appreciate that Sustainability adds immeasurable business value that transcends financial costs. By becoming sustainable, SMEs

can qualify as vendors in the coveted “green” supply chains of major MNCs and PLCs, and differentiate themselves when competing for capital and markets. Moreover, it is less complicated for SMEs to align their business strategy along sustainable channels due to their simpler ownership, governance and management structures compared to PLCs. Hence, the judges trust that there will be greater SME visibility in ACCA MaSRA in future.

ACKNOWLEDGMENTS AND PROSPECTS

On behalf of the organisers and all involved, ACCA Malaysia wishes to extend its utmost gratitude to all those who have helped ensure the success of ACCA MaSRA 2015. We owe a tremendous debt to our partners and sponsors, namely Bursa Malaysia, Talent Corporation Berhad, and to all the participants who have helped MaSRA grow from strength to strength since the awards’ inception in 2002.

MaSRA aims to celebrate reporting excellence, and ACCA and our partners wish to extend our wholehearted congratulations to all the winners for their commitment to Sustainability and their exceptional reports in a very challenging competition. The organisers and judges also wish to commend all participants for their efforts in going beyond compliance and uplifting the quality of Malaysian corporate reporting through their active participation. We are delighted to witness

the continuing advancement of excellent corporate reporting in Malaysia. It is our hope that the MaSRA will continue to be a stimulus for Sustainability reporting, and a platform for further improving Malaysian corporate disclosure.

As Malaysia forges ahead, Sustainability reporting is anticipated to become more widespread and corporate disclosure will be measured against more exacting standards in line with market demands and regulatory expectations. Bursa Malaysia’s new listing guidelines on Sustainability reporting are expected to create greater interest and awareness of Sustainability going forward.

Starting from 2017, the ACCA MaSRA Awards will be held bi-annually to grant companies additional time to plan and prepare their Sustainability reports and to conserve resources in line with Sustainability ideals. We believe this will also widen the field of participation by attracting more diverse organisations - including non-traditional reporters and SMEs – which will better reflect the diversity of the Malaysian business landscape.

Looking ahead, it is anticipated that ACCA MaSRA 2017 will attract a larger and higher-calibre pool of entries. ACCA hopes to continue supporting the ongoing evolution of Malaysian corporate reporting through this innovative platform.

ACCA MaSRA 2016: Participate now!

Key Dates

Announcement of the 2016 Awards July 2016

Entry submission deadline 30 September 2016

Final judges meeting December 2016

Awards presentation ceremony January 2017

Visit our website for further details, www.accaglobal.com/my/masra


Panelists:

• Mohamad Idham Nawawi Group Chief Corporate Officer, Axiata Group Berhad

• Datuk Tong Poh Keow Group Chief Financial Officer, Sime Darby Berhad

• Zainun Nur Abdul Rauf Executive Director,

• Group Corporate Affairs, Nestlé Malaysia Berhad

Moderator:

• David Chin Head of ACCA Malaysia

Key Takeaways from Dialogue Session with ACCA MaSRA Winners



Sustainability reporting should be framed as a strategic activity that transcends corporate social responsibility, and positioned as an approach to create a facilitative environment for sustainable business in the long term. - Axiata

Sustainability reporting is a strategy, not CSR.

Successfully implementing a Sustainability reporting strategy.

Integrated reporting, which complements Sustainability reporting, is a team effort. - Sime Darby

Get started on integrated reporting and Sustainability reporting by identifying the gaps in present reporting and tackling low-hanging fruits. - Sime Darby

Tone from the top is vital. Convince group management to commit and support the Sustainability reporting initiative and emphasise the benefits to long-term growth.- Axiata

Put together a strong and expert team to travel and share best practices of Sustainability reporting across the markets in which your organisation operates. This will drive understanding and quality engagement with government, regulators and other stakeholders. - Axiata

Adopt the Global Reporting Initiative (GRI)’s G4 Sustainability Reporting Guidelines to help put processes and priorities in place and guide information gathering and disclosure. - Axiata

Present comprehensive and comparative data that enables audiences to track your Sustainability performance.

Engage external assurance to strengthen the credibility of your report. - Axiata



Embed Sustainability into strategic areas e.g. financial performance, talent management, business operations and organisational impacts on social and environmental development. - Axiata

Incorporate Sustainability strategy into business operations as part of long-term business development. - Nestle

Embed organisational values such as uplifting the quality of life, long-term Sustainability development and value creation not just into the corporate business principles and strategies but in work culture, products, brand and people too. - Nestlé

Embark on the Sustainability journey internally because you know and understand your business the best. - Nestle and Sime Darby

Make Sustainability part of corporate DNA.

Conventional reporting contains tremendous amounts of disclosure but doesn’t tell a story about what organisations are doing and how targets are achieved, because reporting is done very much in silo. - Sime Darby

Sustainability reporting connects with all stakeholders and is an effective way to communicate with people and to engage the regulators in their respective countries. - Sime Darby

Other than fulfilling the thirst for connectivity and integration, Sustainability reporting can be a tool to drive diversity and inclusiveness in operations and people throughout an organisation. - Sime Darby

Use Sustainability Reporting to improve stakeholder communications.

Connect with internal stakeholders to understand the gaps in the entire value chain and instruct them to maintain databases to validate these gaps and mitigate the arising risks. - Nestle

Engage internal stakeholders to identify and validate the gaps in your Sustainability process before appointing external parties to review and suggest possible improvements. - Nestle and Sime Darby

Propose an initial framework for your Sustainability strategy, followed up by an internal evaluation to assess how well the strategy fits with your organisation, and build your team’s expertise in Sustainability reporting. - Axiata

Communicate with external stakeholders and consistently seek feedback on areas for improvement to complement internal databases. - Nestle Demonstrate the value of Sustainability reporting to shareholders and embed it into the core business. - Nestle and Sime Darby

Stakeholder Engagement is Vital to Effective Sustainability Reporting.

Contact us Any enquiries about the Awards can be directed to:

Ms Vivian KoE: [email protected]

ACCA Malaysia Sdn Bhd (473007 P)Suite 15.1, Level 15 Centrepoint North TowerMid Valley City, Lingkaran Syed Putra59200 Kuala Lumpur, Malaysia

The information contained in this publication is provided for general purposes only. While every effort has been made to ensure that the information is accurate and up to date at the time of printing, ACCA accepts no responsibility for any loss which may arise from information contained in this publication. No part of this publication may be reproduced, in any format, without prior written permission from ACCA. © ACCA MAY 2016

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