Judges Report2014

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JUDGES

REPORTACCA Malaysia SustainabilityReporting Awards (MaSRA) 2014


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2 ACCA MALAYSIA SUSTAINABILITY REPORTING AWARDS (MaSRA) 2014 | JUDGES REPORT

Contents

10 Shortlisted

Reports

2014Entrants

08

ACKNOWLEDGEMENTACCA would like to thank and acknowledge the contribution and support of the distinguished panelof judges and partners, Talent Corporation Malaysia Berhad (TalentCorp) and Securities IndustryDevelopment Corporation (SIDC), as well as Bursa Malaysia Berhad for endorsing the Awards. Lastbut not least we would like to thank and congratulate all participating companies in the Awards.We believe that the participating companies deserve recognition for leading the way in advocatingthe importance and impact of sustainability reporting, communicating what matters to theirstakeholders and communities at large.


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ACCA MALAYSIA 3

ACCA MaSRA2014 Winners12

Judges

Comments

22


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55 Entries26 Shortlisted9 Winners


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ACCA MALAYSIA 5

Introduction

ACCA Malaysia has been a

staunch advocate of sustainabilityreporting for many years, havingrolled out the first MalaysianSustainability ReportingAwards (MaSRA) back in 2002.MaSRA provides a platformfor ACCA and our partners torecognise and celebrate leadingorganisations which report on

their sustainability performanceand impacts across the triplebottomline of profit, people andplanet. ACCA MaSRA also aimsto encourage more organisationsto embrace sustainabilityreporting through different

channels and media, raisingawareness on business challengesaround environmental, social andgovernance (ESG) issues impactingsustainability. These includetalent and resource scarcity thatmay give rise to operational riskor even reputational risk due toadverse reactions from affectedstakeholders and investors.

Today, MaSRA is in its 11th cycleand continues to influence andeducate organisations on thebusiness case and benefits ofsustainability reporting. We are

pleased to report that MaSRA2014 attracted a total of 55entries, up from 48 in the MaSRA2013 cycle. We thank theseorganisations for their participationand their commitment to enrichingcorporate reporting in Malaysia.


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SUSTAINABILITY & INCLUSIVENESS

ACCA sees genuine sustainable

organisations as those whichintegrate sustainable practicesinto each component of its valuechain and strategies in orderfor it to create value not only tothe organisation itself, but to thepeople and environment as well.

Disclosure and reporting of

it, on the other hand, is seenas an effective means toencourage companies to improvesustainable practices, since whatis measured and reported usuallygets managed.

We are heartened to note that

over the years, sustainabilityreporting has been embraced asa valuable tool for organisationsin identifying and managing theircurrent and future impacts onthe triple bottomline of economy,society and environment, andsubsequently drives theirperformance and value creation.As of 2013, it was estimated thatover 6,000 organisations globallynow produce sustainabilityreports benchmarked against theGlobal Reporting Initiatives (GRI)sustainability reporting framework.

Regionally, a PwC survey of 200

companies within the ASEAN-5 Malaysia, Indonesia, Thailand,Vietnam and the Philippinesfound that 64% of those surveyedreported publicly on sustainability,either as part of their annualreport, in a stand-alone report or inan integrated report.

The awareness about sustainabilitypractices and reporting amongMalaysian investors is still at anascent stage, but it is growingfast. With the launch of ESGIndex by Bursa Malaysia in thecoming months, enhancing thequality of sustainability reporting

will be essential. High qualitysustainability reporting is ayardstick for socially responsibleinvestment (SRI), which is gainingtraction as international investorsbecoming more discerning aboutthe markets and companies inwhich they invest, in response topublic and social pressure. The

Global Sustainable InvestmentReview 2012 reported thatover US$13.6 trillion of assetsrepresenting approximately21.8% of the professionallymanaged assets globally hasactually incorporated ESG factorsinto their investment selection

and management. We hope

with the increased sustainabilityreporting by Malaysian-domiciledcompanies, supported by theESG Index, Malaysia will be one ofthe favourable locations for theseglobal SRI funds as well as adddepth and breadth to our localcapital markets.

As the pace of regionalisation picksup with the ASEAN EconomicCommunity (AEC) looming in nextyear, the concept of inclusivenesswill be a pillar and imperative forsuccess. To rise above the rest,organisations must actively engageall their stakeholders to capture

market share and win hearts andminds not only in Malaysia, but inthe new AEC which aims to bringtogether ten of Southeast Asiasmost culturally diverse countriesinto an integrated marketplace of600 million consumers. The stakeis high not only will they need toengage the current and potential

consumers, the organisations willneed to up their game in engagingits talents, the regulators and thepublic at large. They must striveto optimise the interests andwellbeing of these stakeholders toensure their market acceptance,legitimacy and sustainability.


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ACCA MALAYSIA 7

Being able to successfully engage

the diverse stakeholders andgenuinely responding to theirissues and concerns can makethe difference between enduringsuccess and abject failure. Whatbetter way to address this but anequally motley yet harmoniousworkforce that is in tune with theirstakeholders concerns. We oftenheard that the business case fordiversity is that well-managedorganisations which successfullyintegrate their talent in theworkplace, regardless of gender,ethnicity or age, deliver superiorresults. In an effort to encouragegood workplace practices and

diversity and inclusion, MaSRA hasincluded this as a new category tothe Awards. This is aligned with thenew Bursa Malaysia requirementfor all listed companies todisclose their diversity policyfor their boards, managementand workforce in annual reportsissued after 1 January 2015. To

strengthen transparency andcomparability, companies areencouraged to emulate global bestpractices in diversity and inclusionby disclosing the breakdown oftheir workforce in terms of gender,ethnicity and age.

Apart from diversity and inclusion

disclosure, there has also beendevelopment in the evolution ofcorporate reporting. IntegratedReporting is set to becomethe way forward for companies toreport their financial and non-financial (including sustainability)information. The concept of requires a company to report itsstrategy, governance, performanceand prospects in the context of itsexternal environment, leading tothe creation of value in the short,medium and long term. In otherwords, it pulls together financialand non-financial data, bringingthem together in a meaningful and

coherent way. However, doesnot replace sustainability reporting.Instead, sustainability reporting ispart of . Sustainability reportsprovides its intended stakeholdersinformation about a companysenvironmental, social andgovernance performance whichis an important transparency

measure. Integrated Reportingthen seeks to catalyse a changein thinking and behaviour whichresults in a concise communicationof value to its stakeholders. ACCAbelieves that the development ofthe integrated reporting conceptoffers a significant opportunity for

the quality of corporate reporting

to be improved by giving investorsand other stakeholders a morecomplete and interconnected viewof the entity and its prospects overa longer time frame than is usuallycovered in traditional corporatereporting.

It is our hope that future MaSRAcan further stimulate sustainabilityreporting in the Malaysian context,which in turn can promotesustainable and inclusive business,facilitate analysis and decision-making and position Malaysia as aglobally competitive marketplaceand location of choice for global

investors. Special thanks mustbe extended to our partners andsupporting organisations TalentCorporation Malaysia Berhad(TalentCorp) and the SecuritiesIndustry Development Corporation(SIDC) as well as our endorserBursa Malaysia Berhad for theircommitment towards ensuring the

success of MaSRA 2014.

We look forward for moreparticipation in the ACCA MaSRA2015.


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2014 Entrants

aAdvance Micro Devices GlobalServices (Malaysia) Sdn Bhd

2013/2014 CorporateResponsibility Report

AirAsia Berhad

Annual Report 2013:More than you can imagine

AirAsia Foundation

Video Annual Report:Finding Our Voice

AirAsia X Berhad

Annual Report 2013: Going TheDistance, A Journey To GlobalLeadership

Allianz Malaysia Berhad

Annual Report 2013: Delivering InMoments Of Truth

Allianz Malaysia Berhad

Sustainability Booklet 2013: OurSustainability Journey From A To Z

Astro Malaysia Holdings Berhad

Annual Report 2014: Go

Axiata Group

Sustainability and NationalContribution Report 2013: OurCommitment To Development

fFelda Global VenturesHoldings Berhad

Annual Report 2013: AnchoringGrowth Towards Success

Felda Global VenturesHoldings Berhad

Sustainability Report 2013:

Enriching Values A ContinuousJourney

Fraser & Neave Holdings Bhd

Annual Report 2013:The Way Forward

fFraser & Neave Holdings Bhd

Annual Report 2013 AbridgedVersion: The Way Forward

Fuji Xerox Asia Pte. Ltd. (MalaysiaOperations)

Sustainability Report 2013:Create Connect Into The Future

bBritish American Tobacco(Malaysia) Berhad

Annual Report 2013:A New Chapter

gGuinness Anchor Berhad

Corporate Responsibility Report

2013: Inspiring Change, CreatingImpact

iIndah Water Konsortium Sdn Bhd

Sustainability Report 2012-2013: Cleaning the Unseen For ASustainable Future

lLafarge Malaysia Berhad

Annual Report 2013: BuildingBetter Cities In Malaysia

kKPJ Healthcare Berhad

Annual Report 2013:Care for Life, Patient-Centric &Technology-Driven

Kulim (Malaysia) Berhad

Annual Report: New Dimensionfor Growth

Kulim (Malaysia) Berhad

Sustainability Report 2012/2013

(Plantation Division): ExpandingHorizon, Affirming Commitments

dDiGi.Com Berhad

Annual Report 2013: DeliveringThe Best Internet Experience

DiGi.Com Berhad

Sustainability Report 2013:Delivering The Best InternetExperience

cCarlsberg BreweryMalaysia Berhad

CSR Report 2013

Cenviro Sdn Bhd (formerly knownas UEM Environment Sdn Bhd)

Sustainability Report 2013:Evolving

CIMB Group Holdings Berhad

Sustainability Report 2013:Into A New Era

Citibank Berhad

Annual Report 2013


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ACCA MALAYSIA 9

mMah Sing Group Berhad

Annual Report 2013:Master Of Strategy

Mah Sing Group Berhad

Annual Report 2013 AbridgedVersion: Master Of Strategy

Malayan Banking Berhad

Sustainability Report 2013:Building Sustainable LinkagesAcross Asia

Malaysia Airports Holding BerhadSustainability Report 2013:Accelerating Growth Momentum

Malaysian ResourcesCorporation Berhad

Annual Report 2013: MRCB KualaLumpur Sentral CBD, The NewMetropolis - A Magnificient CityWithin A City

Malaysian ResourcesCorporation Berhad

Sustainability Report 2013: MRCBKuala Lumpur Sentral CBD, TheGreen Metropolis - A MagnificientCity Within A City

Media Prima Berhad

Annual Report 2013:Enriching The Ecosystem

Media Prima Berhad

Sustainability Report 2013:Enriching The Ecosystem

MISC Berhad

Sustainability Report 2013:Charting A Sustainable Future

MSM Malaysia Holdings Berhad

Annual Report 2013:Optimising Our Resources

rRHB Banking Group

Corporate Responsibilty Report2013: A New Dawn

RHB Capital Berhad

Annual Report 2013: A New Dawn

tTelekom Malaysia Berhad

Sustainability Report 2013:Life Made Sustainable

Tex Cycle Sdn Bhd

Sustainability Report 2013: 30Years Of Sustainable Existence

TSH Resources Berhad

Annual Report 2013:Committed To Growth

u UEM Sunrise BerhadSustainability Report 2013: OurNew DNA Brings Even More To Life

y YTL Corporation BerhadAnnual Report 2013:The Journey ContinuesYTL Corporation Berhad

Sustainability Report 2013:The Journey Continues

nNestl (Malaysia) Berhad

Nestl In Society Report: CreatingShared Value And Meeting OurCommitments 2013

Nets Printwork Sdn Bhd

Sustainability Report 2012/2013:Co-exist With Nature

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Petronas Chemical Group Berhad

Annual Report 2013:

Driving InnovationPetronas Gas Berhad

Annual Report 2013:Delivering More

Petroliam Nasional Berhad(PETRONAS)

Sustainability Report 2013:Reimagining Energy

Puncak Niaga Holdings Berhad

Annual Report 2013:Resilient & Committed

PwC Malaysia

CR Report 2013: Were Partof It, Creating Value ThroughResponsible Business

sSime Darby Berhad

Sustainability Report 2013:A Deep Dive Into Plantation

Sunway Berhad

Annual Report 2013:Looking Beyond The Horizon

Sunway Berhad

Sustainability And DiversityIn The Workplace

Sunway Real EstateInvestment Trust

Annual Report 2014:Fortune Favours The Resilient


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ShortlistedReports

26Short-listed

Reports


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WITHIN AN ANNUAL REPORT CATEGORY

STAND-ALONE CATEGORY

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ACCAMaSRA2014

Winners

WINNER: BEST SUSTAINABILITY REPORT


RUNNER-UP: BEST SUSTAINABILITY REPORT

Axiata Group Berhad

BEST FIRST-TIME REPORTING

MISC Berhad

BEST REPORTING WITHIN AN ANNUAL REPORTAllianz Malaysia Berhad

BEST WORKPLACE PRACTICES


COMMENDATION: SUSTAINABILITY

REPORTING IN SMEs

Nets Printwork Sdn Bhd

COMMENDATION: REPORTING ON

STAKEHOLDERS ENGAGEMENT

Cenviro Sdn Bhd(formerly known as UEM Environment Sdn Bhd)


SUSTAINABILITY STRATEGYSime Darby Berhad


DIVERSITY & INCLUSION

PwC Malaysia


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WINNER: BEST SUSTAINABILITY REPORT

Malayan Banking BerhadBuilding Sustainable Linkages Across Asia

SUSTAINABILITYREPORT

Building SustainableLinkages AcrossAsia

HumanisingFinancialServic esAcrossA sia.

The report demonstratescompleteness, whereby it addressesalmost each component inthe judging criteria, with clearorganisation of subsections, linkingback to each criterion.

Messages from Chairman andManaging Director set the tone,

articulate sustainability developmentstrategies and demonstrate boardcommitment to sustainabilityinitiatives.

Clearly explains its governancesystems, and profiles the boardmembers and senior managersresponsible for sustainabilitydevelopment.

Conducts impact analysis studiesand applies GRI principles ofmateriality and completenessto define report content andboundaries.

Communicates Maybanks businessethos of Humanising FinancialServices Across Asia and links itback to sustainable development.

Reports extensively on the Maybank

Foundation, which aims to empowercommunities through sustainabledevelopment and value creation.

Discloses its total 2013 sustainabilityspend of RM66.5 million in five coreareas Healthy Living, Education,Community Empowerment, Arts andCulture, and Environmental Diversity.

Material issues which relates back totheir core business were identified,e.g. access to finance, financialliteracy and talent risks.

Addresses access to finance risksthrough Maybank One, which helpslower-income customers understandfinancial services, rural outreach

programmes and agency or sharedbanking services.

Addresses the risk of risinghousehold debt through moneymanagement and early interventionfinancial literacy programmes aimedat youth.

Addresses financial inclusion forSMEs through the Retail SMEbusiness model and the SME CleanLoan Product, which drove MaybankSME loan growth of 23.1% in 2013.

Builds gender diversity andwomens access to finance throughthe Womens EmpowermentProgramme through Micro FinancingServices.

Discusses its low-carboncommitment through management

of direct environmental impacts (e.g.green building initiatives, e-banking,paperless environment and its firstsolar-powered ATM in Bali) andsupporting biodiversity (Asian tigerconservation).

One of the few reports to disclose itsdigital footprint, namely its impactthrough virtual banking and itscommitment to security and dataprotection.

Explains its product stewardshipwithin the financial services supplychain, such as Islamic finance

leadership and renewable energyproject finance.

Tabulates comparative five-yeardata from 2009 to 2013 on itsmaterial performance indicators forenvironment and workplace.

Indexes to GRI G4 and externallyassured.

A well-organised report which isvisually appealing and utiliseshigh-quality photos, graphics andnarratives, enabling easy navigationand comprehension.


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RUNNER-UP: BEST SUSTAINABILITY REPORT

Axiata Group BerhadSustainability and National Contribution Report 2013:

Our Commitment To Development

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Message from President & GroupChief Executive sets the tone,articulates sustainability approach

and demonstrates support forsustainability agenda. Approach to sustainability anchored

on four pillars: Beyond Short-termProfits, Nurturing People, ProcessExcellence, and Planet & Society andclearly discloses efforts linking backto these pillars.

Diagrammed the Enterprise RiskManagement Process to explain the

governance and accountability chainfor risk management.

Identifies and lists key riskareas: sustainability of long-termbusiness strategy, regulatory andtax environment, competition,service substitution, technologyobsolescence, system and networkfailure, leadership competency gapand investment risks, among others.

Maps its material issues, explainstheir impact on businesssustainability, summarises how

management is addressing these,and sets 2014 targets e.g. supplychain risks are addressed byestablishing a group procurementframework.

The only report to disclose NationalContribution research (conductedby a third party) which explainshow Axiata impacts its marketse.g. contributed between USD1.48

to USD2.14 billion to annual GDPbetween 2008 and 2013 andcreated an average of 23000 jobsannually.

Enhances credibility by explainingthe methodology and computationalformula for the National ContributionReport.

Explains social impact of digitalinclusion initiatives e.g. free

insurance for mobile subscriberswith limited access to insurance,mobile social networking using SMS,M-Education for online learning, andeZ cash for financial inclusion.

Axiata Talent Factory strategydevelops a regional talent pool toaddress talent risks.

Discloses diversity and inclusionindicators such as gender andturnover not just at Group level butacross its business units: Celcom, XL,Dialog, Robi, Smart and CorporateCentre.

Indexes to the GRI G4 sustainabilityreporting framework and externallyverified by an Australian assuranceprovider.

Visually appealing, well-structuredreport which utilises colour, attractiveinfographics and simple narrative toease navigation and comprehension.


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BEST FIRST-TIME REPORTING

MISC BerhadSustainability Report 2013:

Charting A Sustainable Future

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Articulates its sustainability approachin a dedicated section: Sustainabilityat MISC which discusses

governance, the sustainabilityreporting framework, materiality andstakeholder engagement.

Developed its SustainabilityReporting Framework througha benchmarking process withinternational peers and stakeholders.

Evidence of a clear sustainabilitygovernance reporting chain,whereby sustainability performance

is reported to the ManagementCommittee, the SustainabilitySteering Committee and/or theMISC Group HSE Council.

Sustainability reporting focuseson the key areas of governance,business conduct, sustainableshareholder value, health and safetyand climate change and reports.

Addresses ethical business risks

through best practices such aseradication of corruption, whistle-blowing, and a no gift policy.

Discusses the global challengesaffecting shipping sectorsustainability such as socio-economic changes, rise of local

governance and rights, demandfor transparency, climate changeand resource constraints, energy

prospects, and maritime regulations. Discusses relevant marketplacerisks, such as security and piracy,overcapacity and fuel price volatilitywhich link directly back to its coreshipping business.

Highlights its procurementphilosophy and commitmentto sustainable value creationby engaging with vendors and

suppliers. Reports adequately on workplace

and diversity, such as disclosingnationalities and number of womenemployed, and explains that itsnature of business necessitatesrecruitment of more males.

Chooses to report extensively on itsenvironment and climate changeinitiatives as a significant portion of

carbon emissions are derived fromits core shipping business.

Tabulates comparative data forenvironmental performanceindicators such as energy use,carbon emissions and wastemanagement which directly impactits business.

Highlights its green initiatives: theI Save Fuel energy efficiencyprogramme, green fleet maintenance

and management, and marineconservation in line with globalregulations.

Community investment focuses onyouth talent development initiativessuch as its wholly-owned maritimeacademy ALAM, Cadet SponsorshipProgramme, and Navigate YourCareer which links back to managingtalent risk.


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BEST REPORTING WITHIN AN ANNUAL REPORT

Allianz Malaysia BerhadAnnual Report 2013: Delivering In Moments Of Truth

Delivering inMomentsofTruth

Allianz Malaysia Berhad(12428-W)Annual Report 2013

The mini booklet on OurSustainability Journey from A toZ sets the tone for sustainabilityand discloses material issues at aglance: access to finance, safety,demographic change, employeeengagement, good governance, andcarbon footprint reduction.

Dedicated CEO statement for thesustainability section supportscommitment to sustainability.

Identifies four focus areas whereit intends to utilise its financial

and business expertise to affectchange: Safety, Financial Literacy,Environment and Community.

On-going engagement withcustomers through the Net PromoteScore to measure customer loyaltyand satisfaction.

Engaging with underservedcustomers to promote financialinclusion through Kampungku to

offer entry-level insurance to ruralpopulations.

Addresses demographic risksthrough new products: AllianzRetirePlus to instil a retirementsavings habit and Life@70, an appto create retirement awareness.

Manages environmental impactsthrough targeted strategies toreduce carbon footprint: GlobalPrint Policy to reduce paper use,and Global Travel Regulation andteleconferencing to reduce businesstravel, among others.

Discloses investment in carbonprojects that finance climateprotection to offset emissions: its2013 investment in Rimba Raya inSouthern Borneo.

Engages with community through

targeted road safety advocacycampaigns and My FinanceCoach and Global Money Weekprogrammes which link back to itsSafety and Financial Literacy focirespectively.

Engages with staff through annualAllianz Engagement Survey whichachieved an Employee EngagementIndex of 84% in 2013 and uses

feedback for improvement. Identifies its first female independent

director Datuk Dr. Rafiah Salim asthe champion of gender equality andwomens empowerment.


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SUSTAINABILITYREP ORT

Building SustainableLinkages AcrossAsia

HumanisingFinancialServic esAcrossA sia.

BEST WORKPLACE PRACTICES

Malayan Banking BerhadBuilding Sustainable Linkages Across Asia

The report demonstrates extensivediscussion of workplace bestpractices and diversity and inclusioninitiatives which engage talent acrosskey markets and demographics.

Focuses people development on fourkey areas employee engagement,building a high-performanceculture, diversity and inclusion, andsafety, health and wellbeing andmeasures progress from 2011 2013.

Comprehensive diversity and

inclusion programmes encompassdevelopment of women, GenerationY (Gen Y), and older employees.

The report shows how theorganisation tracks the impact of itstalent development policies throughinitiatives like People Dashboardmonitoring, and Creation of PipelinePools.

Demonstrates strong tone from the

top through Townhalls and GroupExco Leaders Teaching Leaderssessions where leaders engage staff.

Strong engagement with Gen Ytalent in its key markets through theGO Ahead Challenge, which spotsand nurtures future leaders forMaybank.

Engages women employees throughthe Maybank Tiger Cubs ChildcareCentre and the formalisation of itsFlexible Work Arrangement (FWA)policy in 2013.

Empowers women employeesthrough Women Mentoring,and tracks womens careerand leadership developmentand representation in seniormanagement.

Engages senior employees by raisingretirement ages from 55 years to 60

in line with the Minimum RetirementAge Act 2012.

Builds inclusiveness through theCareer Transition programme whichfinds the right job match or reskillsstaff whose careers are disrupted byorganisational change.

Report addresses health andperformance risks by creating asafe, healthy and conducive working

culture, through conducting theTraumatic Stress ManagementDebrief programme for staffin Tawau and Lahad Datu, andorganising Trim & Fit programmes,monthly health talks and thePedometer Challenge.

Tabulates comparative five-yeardata from 2009 to 2013 onworkplace performance, includingthe disclosure of turnover rates,ethnicity, womens representation inmanagement and top management,and ages of employees.

Report demonstrates transparencyby disclosing its failure to meetinternal hiring targets of 80% for2013 to fill vacancies.


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COMMENDATION: SUSTAINABILITY REPORTING IN SMES

Nets Printwork Sdn BhdSustainability Report 2012/2013: Co-exist With Nature

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Co-exist with Nature

Message from the managingdirector sets tone at the top andsupports companys commitment tosustainability.

References GRI G3.1 Sustainabilityreporting framework and ISO 26000:Guidance on Social Responsibility.

Sustainability agenda is driven bya Sustainability Manager heading aSustainability Department.

Developed a materiality matrix toidentify significant issues and setreporting boundaries.

Links business risks lowerdemand for paper-based printing,reduced advertisement budgets,health risks for printing operators,competition to new opportunitiesfor differentiation promoting eco-printing and use of safer vegetable-based inks.

Provides comparative consumptionand wastage data for materials,

energy and carbon emissions.

Discloses targets to use morethan 30% FSC*-certified paper inproduction by end of FY2013, whichwere not achieved.

Discloses plans to developa Sustainability Roadmap,Sustainability/CSR Policy and GreenPurchasing Policy among othersustainable workplace initiatives, butdid not explain strategies, targetsand timelines.

Reports on diversity indicators,including equal pay, age, gender,

turnover, ethnicity and employeesstate of origin. Initiates the Green Supplier

Circle and drafted a GreenPurchasing Policy to ensuresustainable procurement andsupport sustainable supply chainmanagement.

Initiates the Product Developmentunit to engage the community

on how to reduce environmentalimpacts through choosing ecoproducts.

Engages customers through annualcustomer satisfaction analysis andcreating awareness of eco-printing.

Discloses workplace and diversityindicators such as equal pay, gender,ethnicity, and employees state oforigin, and provides one day annualCSR leave for employees to promoteCSR activism.

Discloses its financial allocationfor sustainability developmentwhich amounts to 33% of the totalcompany budget.

Reports allocation of environmentalexpenditures through theEnvironmental Investment Ratio.

*FSC Forest Stewardship Council


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ACCA MALAYSIA 19

COMMENDATION: REPORTING ON STAKEHOLDER ENGAGEMENT

Cenviro Sdn Bhd (formerly known as UEM Environment Sdn Bhd)Sustainability Report 2013: Evolving

CEO message sets the toneby focusing on stakeholderengagement and sustainabilityagenda e.g. disclosure ofsustainability discussions withshareholder Khazanah, work withlocal communities surrounding itswaste management centres, andengagement with regulators andgovernment.

Articulation of sustainabilitystrategy and goals focuses onstakeholders: positive community

relations; green technology tomanage environmental impact,and economic benefit throughsustainable business.

Clearly maps out its diversestakeholders, the methods andfrequency of engagement, andcommon areas of interest e.g.engages customers through annualsurveys and daily hotlines on issues

like fair pricing, service quality andassurance.

Maps materiality of issues accordingto stakeholders interests: innovativebusiness and continuous growth,regulatory compliance, andenvironmental impact are ranked asthe most material issues.

Highlights sustainability milestonesfor 2013, explains stakeholderimpact and indicates the wayforward: engages communitythrough Flood Relief Mission, internalrecycling and English literacyprogrammes for 2013 and will focus

on community partnerships andvolunteerism in the future. Highlights feedback from customers

like PETRONAS Carigali and RaubAustralian Gold Mining to drivecustomer service improvement.

Engages with community in projectsthat utilise its expertise, such as thedisposal of school laboratory wastefor 312 schools in 2013.

Clearly explains the governancechain and profiles the board andmanagement team.

Conducts Sustainability Surveyto gauge employees perceptionof sustainability: workplace anddiversity and inclusion policies,service quality and fair pricingpolicies, among others.

Tabulates extensive environmentaldata on quarterly and yearly basesto track environmental impact:emissions, noise, air quality,groundwater quality and others.

Discloses impact on biodiversitythrough its Flora and Fauna indices,which lists the types of flora andfauna affected according to theirstatuses: vulnerable, criticallyendangered and least concern.

Indexes to the GRI G3.1sustainability reporting framework

and independently assured.


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COMMENDATION: REPORTING ON SUSTAINABILITY STRATEGY

Sime Darby BerhadSustainability Report 2013: A Deep Dive Into Plantation

The President and Group CEOsmessage summarises the Groupsstrategic sustainability goals andthe issues and challenges it faces inthe emerging sustainable palm oilmarket.

Appointment of Group SustainabilityAdvisor, Jonathan Porritt, Co-Directorof the Prince of Waless Business &Sustainability Programme, sets thetone and demonstrates top supportfor sustainability.

The report clearly explains its

sustainability governance structure,where the Main Board is the highestauthority for the Group, supportedby flagship subsidiary boards whichoversee individual Divisions.

Articulates how its sustainabilityapproach is linked to its corevalues, business principles andsustainability principles.

Guided by a Five Year StrategicBlueprint which incorporates fiveStrategic Sustainability Goals value creation, risk management,leadership, reporting, andperformance culture - which in turndrive the Groups actions.

Its Group Performance Summarysummarises the progress made inFY2013 and delivery of its StrategicSustainability Goals.

Linked future actions and targetsto these Goals e.g. RM50 million

savings in Lean Six Sigma projectsin FY2014, 100% RSPO certificationfor all Plantation Strategic OperatingUnits.

Engages various stakeholdersfor feedback on material issues,which determined the focus ofdisclosure on Plantations approach,performance and prospects.

Explains its participation insustainability organisations:Roundtable on Sustainable PalmOil, Malaysian Sustainable Palm OilStandard, World Business Councilfor Sustainable Development, etc.- to help shape the sustainabilityagenda.

Benchmarks report against theGRI3.1 Sustainability Reportingframework and the principles of theUnited Nations Global Compact.


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COMMENDATION: REPORTING ON DIVERSITY & INCLUSION

PwC MalaysiaCR Report 2013: Were Part of It, Creating Value Through Responsible Business

Were part of it:Creatingvaluet hroughresponsiblebusiness

CRReport 2013

www.pwc.com/my

The report discloses their diversityand inclusion milestones for 2013which link back to talent risks andretention: volunteering, return-to-work, flex benefits, extendedmaternity and paternity leave, andsecondment of a senior employeeto TalentCorp to support local talentdevelopment.

It clearly reflects that diversity andinclusion is embedded in the firms2-year plan from 2014 2016.

Feedback from regular engagement

with partners and staff used toidentify material issues. Report clearly discloses extensive

efforts to engage women, throughthe Worklife Plus Programme(covering flexiwork arrangements,career breaks and time-out options),FlexSpace (work from anywhere),Back2Work (encouraging formerfemale employees to return to

work), the Parents Network Group(a work-life balance support group),breastfeeding room and reservedparking lots for pregnant employees.

Extensive disclosure on employeevolunteerism and measuresvolunteerism impact based onindicators like number of activities,number of volunteers and volunteerhours, supported by comparativedata from FY09 - FY13.

Detailed discussion of staffvolunteering projects: literacy,coaching, mentoring, and pro-bonoor discounted audit services.

Reports two years comparativedata on diversity and workplace

indicators: turnover and recruitment,learning and development hourslogged, gender, senior management,and applications for maternity andpaternity leave.

Encourages staff environmentalawareness by linking carbonfootprint reduction to electricityconsumption and air travel mileslogged.


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Puan Sharifatu LailaSyed Ali

Chief Executive Officer,ValueCap Sdn Bhd

Encik Salleh HassanDirector, Examinations & CPEand Corporate Governance,

Securities Industry DevelopmentCorporation (SIDC)

Final Judges

Short-listing Judges

Mr Goh Ching YinExecutive Director, MarketDevelopment, SecuritiesCommission Malaysia

Dr Faizah DarusHead Asia-Pacific Centre for

Sustainability (APCeS),Accounting Research Institute/

Faculty of Accountancy,Universiti Teknologi Mara

Ms Selvarany RasiahChief Regulatory Officer,Bursa Malaysia Berhad

Mr Ng Kean KokDeputy Dean, Departmentof Accountancy, Universiti

Tunku Abdul Rahman

Encik Johan MahmoodMerican

Chief Executive Officer,Talent Corporation Malaysia

Berhad

Dr Ho Jo AnnAssociate Professor,

Faculty of Economics andManagement, Universiti

Putra Malaysia

Panel of Judges

CHAIRMAN OF

JUDGING PANEL


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ACCA MALAYSIA 23

Judges Comments

The reporting quality forMaSRA 2014 continues toadvance and the judges

acknowledged that it was muchharder to evaluate and pickthe winners this year. Amongthe leaders in sustainabilityreporting, there continues to besignificant improvements butthere are new leaders showing

much potentials too. This year,we also noted slight increasein number of stand-alonesustainability report submission a testament that companiesare going beyond regulatorycompliance.

Interestingly, MaSRA 2014 alsosaw the increasing dominanceof homegrown companies,

which attest to the risingmaturity and internationalcompetitiveness of Malaysianpublic-listed entities. The effortsof companies embracingGRI 4 reporting framework iscommendable and definitely

makes their reports a moremeaningful read.

To further improve thereporting quality disclosuresin Malaysia, the judges sharedsome recommendations for

considerations. These areasare quite fundamental andsomething the judges look outfor when evaluating the reportsthis year.


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Completeness of reporting andbreadth of scope continued to be amajor area for improvement for themajority of reporting organisations.Failure in clearly articulatingtheir sustainability strategy andgoals, and linking it back to thebusiness strategy were muchcriticised by the judges. Initiativesthat are not properly aligned totheir business strategies may beperceived as merely green washof CSR activities or environmentalconservation campaigns, they said.

The winning reports were seen asoutstanding in terms of being ableto concisely identify and convey thekey material issues and impacts oftheir businesses. Many included amateriality matrix which prioritisedrisks according to feedbackand impact from their multiplestakeholders. The outstandingones also conducted stakeholderanalyses in identifying issues whichresonated the most with theirstakeholders, and incorporated theresulting feedback into subsequentstrategy and initiatives.

Regrettably, many companies fellshort by omitting disclosure ordiscussion on more controversialissues which are definitely keyconcerns for their stakeholders andcould compromise their long-term

COMPLETENESS

prospects. For example, judgesfelt that sustainability reportsoriginating from high-impact sectorssuch as plantations companies,breweries, food and cigarettemanufacturers should considerexpanding disclosure on issuesimpacting health, social wellbeingand the environment while statingtheir companies strategies formanaging these concerns.

For example, cigarettemanufacturers may want to shareon their product innovations inminimising health concerns fromsmoking or education in placedfor their consumers in addition toreporting on cigarette smugglingand the sale of illegal cigaretteswhich affect profit margins andthus shareholder value. Plantationscompanies could perhaps considerdisclosing the environmentalimpact of their business activitiesand their strategies in mitigatingits impact on climate change, airpollution and haze. Meanwhile, foodmanufacturers could follow suit byacknowledging the potential healthimpact of sugar and additives intheir products, and share how theyplan to reduce those ingredients inlight of product stewardship.

Understandably, this perceivedreluctance to identify and addressnegative yet material issues

relates directly to the naturalinclination to report only goodnews. However, research has shownthat balanced reporting as well asan organisations willingness totransparently report and manage itsmaterial concerns builds credibility,trust and stakeholder confidence.

In line with the encouragementfor disclosures on best workplacepractices as well as diversity andinclusion, judges were in viewthat the best reports providedextensive disclosure on theirtalent management practices andpolicies, along with comparativedata on diversity indicators, such asgender, ethnicity, pay discrepancies,numbers of women in managementand the board, for example.However, many reports omittedthese disclosures or providedminimal information or it wassomehow mentioned in their annualreport but not in the sustainabilityreport. Going forward, judgesrecommended that organisationsenhance disclosure on thesefronts in compliance with the newreporting requirements and upliftingtheir reporting quality. Preparersshould clearly disclose diversityindicators, preferably supported bycomparative data and statistics.


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ACCA MALAYSIA 25

CREDIBILITY

Some of the reports weredeemed more credible bydisclosing both good and badnews; benchmarking actualperformance against objectives;presenting historical and trenddata to support statements andclaims; publishing feedback fromstakeholders and demonstratinghow the feedbacks were takeninto their sustainability strategy;

compliance with reportingframeworks; and including externalassurance statements.

The judges would also like to seemore information on accountabilityand governance in place. Robustmessages from top leadersand statement explaining the

organisations sustainability focusand strategy at the start of thereports is seen as good reflectionof tone from the top. Moreprofiling of board members andmanagement team who is leadingthe sustainability strategy as wellas diversity and inclusion agendais a plus point.

Judges also appreciatecomparative past and present-years data which offer insightsinto trends and achievementof objectives, e.g. wastemanagement, carbon emissions,materials consumption, energyconsumption, carbon footprintcalculations and talent diversitymeasures.

Overall, most of the participantsmade commendable efforts tocomply with the Global ReportingInitiative (GRI) reporting principles.The shortlisted reports weremostly benchmarked againstGRI G3.1 or the more recentGRI 4.0 reporting frameworkwhich focuses on materiality and

stakeholder inclusion. Wherecertain disclosures againstGRI were omitted, the leadingcompanies usually explain theirreasons for omission in the GRIcontent index. However, judgescriticised certain companies fortheir textbook compliance whereit became less meaningful and

merely ticked the boxes ratherthan telling a compelling story of

the organisations sustainabilitystrategy and effort. The GRIframework should be used asa guide to help organisationsprepare a materially significantreport which facilitates analysisand decision-making, and nota checklist to be completed,they said. More importantly, doensure that reference pages forthe GRI content index table at the

back of the report are correctlycross-indexed to prevent readersconfusion.

Judges highly recommend thatorganisations consider verifyingtheir reports through a third-partyassurance provider in enhancingcredibility and trustworthiness,

and bringing it to a higher levelof reporting standards. Many ofthe leading reports were verifiedby external and independentassurance providers.


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While completeness and credibilityis a given must-haves, reports mustalso be succinct and provides easynavigation. Judges noted that reportingpresentation and navigation needs tobe improved to provide greater clarityfor readers on sustainability initiatives.Preparers were advised to focus onmateriality and strike a fine balancebetween information overload andsufficient disclosure to make the mostimpact on the readers.

The winning reports went the distanceto ensure that they were aestheticallyappealing and engaging. The bestreports used attractive colour schemes,relevant photographs, appealinginfographics to communicateperformance metrics with clear andreadable fonts and layouts. Some ofthe companies even experimented withnon-conventional media of reportingwith embedding videos, e-booksand mobile applications. The reportswere also well-structured and easyto navigate, enhancing useability andunderstanding. Do make sure thatlanguage is simple yet grammaticallycorrect, since errors affect the finalquality of the report.

While judges encourage innovation inpresentation, do put some thought intothe comfort and ease of the readingexperience. Reports of unorthodox sizecan be awkward to post via snail mail, tohold in ones hands, and to read.

COMMUNICATIONS CONCLUSION

Sustainability reporting is vitalin raising the bar of corporatereporting, which in turn will

strengthen business performanceand support Malaysias agenda ofeconomic transformation. Lookingahead, sustainability reportingwill become more complex as thebusiness landscape becomes morecomplex and harder to navigate.Reporting organisations will have totake emerging developments and

risks into account when preparingdisclosure, such as diversityand inclusiveness challenges,the war for talent, demographicchange, stakeholder pressures,environmental challenges, resourcescarcity, geopolitical crises, andcapital flight to product innovation,among others. Only then can

organisations capture a holisticpicture of their sustainability visionto accurately guide their strategyand operations.

Despite the challenges, the judgesare encouraging more organisationsto report on the sustainability oftheir performance and businessmodels, consequently raisingtransparency and giving credibilityand legitimacy to Malaysia as aleading business and investmentdestination. Organisations are

also encouraged to producemore stand-alone reports formore extensive picture of their

sustainability strategies as opposedto the limitations of reporting withinan annual report.

As we move forward, we willcontinue to innovate and refreshACCA MaSRA judging criteriaand groupings to ensure itsrelevance to the market and

achieves its overarching objectiveof championing sustainabilityreporting and businesssustainability.

The judges also recommendedsplitting entries into the categoriesof small-cap, medium-cap andlarge-cap reporting organisations

to level the playing field in futureMaSRA. This will hopefully makethe competition more equitablefor small- and medium-capentities which may be constrainedby limited resources, and large-caps which face the challengeof overcoming silos and size topresent a complete and integratedpicture of their sustainabilityimpacts.


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ACCA MALAYSIA 27

MANAGEMENTPR

OCESS

ASSURANCE

PERF

ORMA

NCE

GOVERNA

NCE

STR

ATEGY

MATER

IALITY

STA

KEHOLDERINCLU

SION

Credibility

Governance:board/CEO participation,sustainability committee tone from thetop

Management process:system in place,dedicated person and team, in-houseeffort in coming up with reporting content

Stakeholder inclusion:evidence ofstakeholders feedback considered intosustainability strategy and reporting

Performance:quantifiable, trend data andtarget, current state and future plans tomeet target

Assurance:references to sustainabilityreporting frameworks e.g. GRI and UNGC;

independent external assurance obtained

Communications

Presentation & structure Visually engaging Effective layout, easy navigation Incorporate various media, e.g. video,

mobile apps Good usage of infographics Simple layman terms

Good handy size

Completeness

Strategy:clear sustainability

strategy and goals, linking itto the business strategy

Materiality: materialitymatrix, disclosing whatmatters where it matters

Risk management:disclosure on riskmanagement, linking backto sustainability strategy

Objective:giving objectiveview on issues, not only safe,

non-controversial matters Diversity & inclusion:more

disclosure on workplacepractices policies in place/plan

Product stewardship:commitments and plans forproduct stewardship

FORMULA OFWINNING REPORTS


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SupportingOrganisations

Talent Corporation Malaysia Berhad (TalentCorp)was established on 1 January 2011 under thePrime Ministers Department to formulate andfacilitate initiatives to address the availabilityof talent in line with the needs of the countryseconomic transformation. Collaborating closely

with relevant Government agencies and employersin priority economic sectors, TalentCorp developsdemand-driven initiatives to enhance graduateemployability, promote talent diversity, engageMalaysians abroad and facilitate foreign talent.

The Securities Industry Development Corporation(SIDC) is the leading capital markets education andtraining provider in ASEAN. It was established as thetraining arm of the Securities Commission Malaysia(SC) in 1994 and incorporated in 2007.

The SIDC has been developing and delivering capitalmarket training and investor education for twodecades, covering basic to advance capital marketskills as well as policies and development issues.It serves regulators, intermediaries, investors anddirectors in both local and international markets.

The SIDC works closely with the SC in setting thecompetency standards for the capital market industryand also plays a significant role in developing thetalent pipeline for the Malaysian capital market.Through its unique talent development programmes,the SIDC has successfully produced qualityprofessionals for both the conventional and Islamiccapital market.

Partners


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ACCA MALAYSIA 29

Endorser

Bursa Malaysia is an exchange holding company established in1973 and listed in 2005. Today, it is one of the largest bourses inASEAN, hosting more than 900 companies across 60 economicactivities. Companies from the economic sectors are listed eitheron the Main Market for large-cap established companies, or on theACE Market for emerging companies of all sizes. Bursa Malaysia

adopts the FTSE Bursa Malaysia KLCI values as its main index.

Bursa Malaysia operates a fully-integrated exchange, offeringa comprehensive range of exchange-related facilities includinglisting, trading, clearing, settlement and depository services. BursaMalaysia offers a diverse spread of offerings covering equities,derivatives, Islamic products, bonds as well as offshore, andprovides a various range of investment choices globally.

In assisting the development of the Malaysian capital market,Bursa Malaysia is committed to provide the infrastructure neededto create a globally competitive and vibrant marketplace.


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ACCA (the Association of CharteredCertified Accountants) is the globalbody for professional accountants.We aim to offer business-relevant,first-choice qualifications to peopleof application, ability and ambitionaround the world who seek arewarding career in accountancy,

finance and management.

Founded in 1904, ACCA hasconsistently held unique corevalues: opportunity, diversity,innovation, integrity andaccountability. We believethat accountants bring valueto economies in all stages ofdevelopment. We aim to developcapacity in the profession andencourage the adoption of globalstandards. Our values are alignedto the needs of employers inall sectors and we ensure that,through our qualifications, weprepare accountants for business.

We seek to open up the professionto people of all backgroundsand remove artificial barriers,innovating our qualifications andtheir delivery to meet the diverseneeds of trainee professionals andtheir employers.

ACCA works to strengthen aglobal profession based on theapplication of consistent standards,which we believe best supportsinternational business and thedesire of talented people to havesuccessful, international careers.We champion the needs of small

and medium sized business(SMEs) and emerging economies,and promote the value ofsustainable business.

To achieve this we work withglobal bodies such as theInternational Federation ofAccountants (IFAC) and with over80 global partnerships. Aboveall, we seek to bring long-termvalue to economies in which wedevelop and support professionalaccountants.

We support our 170,000members and 436,000 students

in 180 countries, helping themto develop successful careers inaccounting and business, with

the skills required by employers.We work through a network of91 offices and centres and morethan 8,500 Approved Employersworldwide, who provide highstandards of employee learningand development. Throughour public interest remit, we

promote appropriate regulation ofaccounting and conduct relevantresearch to ensure accountancycontinues to grow in reputationand influence.

ACCA works in the public interest,assuring that its members areappropriately regulated for thework they carry out and, promotingprinciples-based approachesto regulation. We actively seekto enhance the public value ofaccounting in society throughinternational research and we takea progressive stance on globalissues to ensure accountancy as

a profession continues to grow inreputation and influence.

About ACCA


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ACCA MALAYSIA 31

If you have any questions about the Awards, please contact:

Ms Vivian Ko

tel: +(603) 2182 3606

fax: +(603) 2713 5052

email: [email protected]

AN INVITATION TO PARTICIPATE

The ACCA Malaysia Sustainability Reporting Awards 2015 timetable as follows:

January 2015 Announcement of the 2015 Awards

August 2015 Entry submission deadline

November 2015 Final judges meeting

December 2015 Awards presentation ceremony


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ACCA Malaysia Sdn Bhd(473007 P)

27th Floor Sunway Tower

No 86 Jalan Ampang

50450 Kuala Lumpur

tel: 1800 88 5051fax: +603 2713 5052email: [email protected]

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 atthe 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 November 2014

Judges Report2014

Documents

Transcript of Judges Report2014