QL Resources Berhad

The company does not have a science-based emission reduction target.

The company acknowledges the significance of greenhouse gas emissions in climate change and discloses its Scope 1 and 2 emissions for FY2023. It aims to reduce GHG emissions intensity by 20% by FY2026 from a 2020 baseline, achieving a 17.2% reduction in FY2023. Efforts to increase renewable energy include a mangrove reforestation programme and 337 green energy projects providing 13.40 MWp capacity for customers, focusing on Malaysian operations. Scope 3 emissions related to agriculture are relevant, as the company procures raw materials for animal feed. However, it does not disclose targets for reducing Scope 3 GHG emissions.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming.

The company does not engage in innovative projects to reduce or mitigate emissions from animal farming.

The company reports its combined Scope 1 and Scope 2 emissions for FY2023 as 142,820 tCO2e.

The company is vertically integrated in its livestock farming, managing the entire production process from breeding layer hens and broiler chickens, without sourcing from third-party suppliers. In FY2023, the company reported total GHG emissions of 142,820.83 tCO2e. However, it does not disaggregate these emissions into those from enteric fermentation or manure management, nor does it disclose emissions related to feed production or land-use change.

The company does not disclose to the CDP climate change questionnaire. The company does not disclose whether the GHG inventory data is audited by a third party.

The company reports a 44% increase in total Scope 1 and 2 GHG emissions, from 99,458 tCO2e in FY2022 to 142,821 tCO2e in FY2023. It has aggregated data for these emissions but has not disclosed specific reductions in emissions from feed, enteric fermentation, or manure management.

The company does not disclose information on a climate-related scenario analysis.

The company reports that high raw feed costs severely impacted its operations during the lockdown, followed by a lack of grain supply to meet increased demand when economies reopened. For its Integrated Livestock Farming (ILF) unit, the company anticipates continued volatility in the commodities market, driven by uncertain weather patterns. In the Marine Products Manufacturing (MPM) unit, it highlights potential impacts of increased heat or rainfall from the El Niño phenomenon on raw material costs but does not detail mitigation strategies for these risks. The company does not provide information on the effects of heat stress, animal mortality, or increased veterinary and medicine costs related to temperature rises. It also does not discuss potential carbon tax risks associated with electricity and animal protein. In its Integrated Annual Report 2023, the company mentions energy cost challenges due to the Russia-Ukraine war but fails to address the impact of increased demand and prices related to climate scenarios or how it plans to mitigate or adapt to these risks. Furthermore, the company does not disclose any financially material events resulting from climate risk during the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

The company does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

The company does not disclose any information on how it engages soy suppliers on deforestation and does not provide support to soy producers to encourage deforestation-free production or improve traceability.

The company does not disclose how compliance is monitored or what actions are taken if non-compliance occurs. Furthermore, the company does not disclose the level of traceability in its soy supply chain.

The company does not discuss innovations or practices to move towards sustainable feed sources.

The company does not disclose whether any of its farms hold relevant certifications.

The company does not disclose feed ingredients by percentage, nor does it state if it purchases certified soy and marine animal products. The company does not provide disclosure on forage fish dependency for fish meal and fish oil.

The company does not disclose information about the sourcing of fishmeal and fish oil used in its feed basket, nor does it specify whether marine and soy ingredients are 100% certified. Furthermore, the company does not provide information on improvements in feed conversion efficiency or its reliance on foraged fish during the reporting period.

The company does not disclose having conducted a risk assessment on how reduced feed availability might impact production. It also lacks a disclosed strategy to increase the use of seafood trimmings or alternative feed ingredients.

The company does not disclose the percentage of R&D allocated to novel ingredient development. Furthermore, it does not disclose a target related to feed innovation. It also does not disclose the average EPA and DHA content of salmon it produces.

The company does not disclose data on escapes, nor does it disclose the financial cost of all escape events or provide a discussion on escapement prevention. Finally, the company does not disclose a time-bound target for zero escapes.

The company does not provide a discussion of work undertaken to reduce biodiversity impacts. It also does not provide a time-bound target to eliminate human-wildlife conflict.

The company does not disclose a management plan in the event of algal blooms.

The company identifies water security as a material issue and manages it by tracking and monitoring water consumption patterns. However, it has not conducted a risk assessment to identify facilities operating in areas of high or medium water stress. Total water consumption is reported as 3,042,140 m3, covering subsidiaries in Malaysia but excluding those in Indonesia and Vietnam. The company recognises water as a scarce resource and emphasises efficient water management to prevent ecosystem stress. Since FY2020, it has tracked water withdrawal by source and increased water flowmeter installations to improve consumption analysis, detect leakages, and enhance efficiency. It has also established alternative water supply sources, diverging from municipal sources to enhance resilience. Since 2021, rainwater has been used for non-potable purposes, and efforts continue to maximise rainwater harvesting. In FY2023, rainwater consumption increased to 6,754 m3, a 67.5% rise from FY2022.

The company does not disclose a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

The company reports that 82.42% of its withdrawn water is sourced from municipal supplies, 8.24% from rivers, 9.12% from the ground, and 0.22% from rain. Its water intensity decreased by 4.3% from 595.49 m3/million RM revenue in FY2022 to 569.89 m3/million RM revenue in FY2023, attributed to higher production volume and improved efficiency. However, total water withdrawal and consumption increased from 2.43 million m3 to 3.04 million m3 over the same period. The reporting scope covers its subsidiaries in Malaysia but excludes those in Indonesia and Vietnam. The company does not report water withdrawals or consumption by water stress level, nor does it disclose water-related capital or operational expenditure. The data lacks third-party verification, and the company did not respond to the CDP Water questionnaire in 2023. Clarification on total water withdrawal and consumption metrics is encouraged.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

The company does not disclose the proportion of animal protein commodities produced or sourced in water-stressed areas and lacks a sustainable agricultural policy addressing water use in animal farming. Although it has installed water flow meters across all sites to monitor consumption and detect leaks, it does not provide guidance, support, or incentives to suppliers or growers regarding water use in animal farming.

The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company acknowledges the risks of pollution from wastewater discharge and states it implements strict measures to ensure compliance with regulatory requirements. It reports no cases of non-compliance in its latest report. However, the company does not identify processing facilities in areas of high and medium water stress and lacks targets for wastewater quality and volume.

The company reports that its discharged wastewater complies with Environmental Quality (Industrial Effluent) Regulations, yet does not provide information on the quality of this wastewater. It disclosed a discharge of 1,213,620 m3 of wastewater during the last reporting period. Additionally, the company does not have its wastewater data audited by a third party and did not respond to the CDP Water questionnaire.

The company does not disclose having improved the wastewater quality at the aggregate level compared to the previous reporting period or reduced the volume of wastewater discharged.

The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company reports that 93.7% of chicken manure was converted into organic fertiliser through composting in FY2023, covering 17 Malaysian businesses. However, it has not disclosed any risk assessments identifying locations with high pollution risk.

The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its own farms to develop nutrient management plans and improve manure storage.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company does not disclose whether it undertakes risk assessments to identify farming locations at high risk of nutrient pollution. Additionally, it does not provide metrics or methods used to measure organic and inorganic loading at these sites, nor does it outline a strategy to prevent the accumulation of organic matter.

The company states that it sends wastewater from its production processes to treatment plants before environmental discharge. However, it does not disclose metrics of effluent water or specific impacts on local water systems. Additionally, the company does not provide evidence of a community engagement plan regarding pollution around aquaculture farms.

The company does not disclose information on antibiotics. It reports strategies to enhance welfare and reduce antibiotic reliance, including enhanced biosecurity measures, a quality assurance programme, a digital biosecurity audit monitoring system, and a poultry academy framework focused on farm biosecurity and associated risks.

The company does not disclose the quantity of antibiotics used.

The company does not provide a statement in support of the Five Freedoms or a similar statement on the importance of animal welfare.

The company does not state a commitment to engaging and training employees on animal welfare issues.

The company states that all farms are Malaysian Good Agricultural Practice (myGAP) certified.

The company does not disclose information on animal welfare certifications or assurance programs for its beef operations.

The company does not disclose information on key animal welfare risks in beef.

The company does not disclose its aquatic animal welfare policy.

The company does not disclose sufficient information to ascertain if it ensures a stocking density of lower than 17 kg/m³ for salmon at all times.

The company does not disclose information regarding eye-stalk ablation of shrimp.

The company does not disclose mortality rates or incident-based mortality information and has not set a time-bound target for reducing mortality rates.

The company does not disclose incident-based mortality.

The company does not disclose the mortality rate for shrimp.

The company does not disclose the direct financial costs linked to shrimp mortality.

In its 2024 Human Rights and Labour Standards Policy, the company commits to respecting internationally recognised human rights as outlined in the UDHR and the ILO's Declaration on Fundamental Principles and Rights at Work.

The company reports conducting internal human rights due diligence audits at three plants in FY2023 and plans to expand these to more sites over the next four years. However, it does not detail the audit processes or clarify how it will address identified human rights risks. Additionally, while the company disclosed human rights training in FY2022 and mentions future training in its 2024 Human Rights Policy, it does not report any training or capacity building in FY2023.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company states it prohibits discrimination, child labour, forced labour, and abusive treatment. It complies with local minimum wage regulations but does not guarantee wages in line with the cost of living. The company's Human Rights and Labour Standards Policy 2024 affirms employees' right to sick leave but does not clarify if this is paid leave. In FY2023, the company began internal human rights due diligence audits at three business sites, though it is unclear if these cover all policy areas. The Supplier Code of Business Ethics and Conduct 2023 requires suppliers to prohibit child labour, forced labour, and workplace abuse, but lacks a policy on discrimination. Suppliers are expected to provide local minimum wages, without promoting fair wages.

The company does not disclose whether it monitors compliance with selected supply chain policies through audits. It has a whistleblowing system for its direct operations, allowing grievances to be made anonymously, although disclosing identities is encouraged to aid investigations. Contractors and business partners can also use this system. The company reveals it received reports of harassment and an unsubstantiated bribery and corruption report but does not disclose the total number of grievances received through its whistleblowing mechanisms.

The company highlights its commitment to ensuring a safe, secure, and healthy working environment for all employees. In FY2023, its subsidiary, QL Poultry Farm Sdn. Bhd, achieved ISO 45001:2018 (OSH Management System) certification. This certification formed part of a pilot health and safety project, which the company plans to expand to other business segments, beginning with QL Kitchen Sdn. Bhd. Quarterly meetings for safety professionals and the Group OSH work committee are organised to promote safe work practices. However, the company does not disclose the percentage of facilities with health and safety committees that include worker representatives. Additionally, it does not assess or discuss antimicrobial resistance risk for the workforce.

In FY2023, the company reports a reduction in its Lost Time Injury Frequency Rate from 4.28 to 3.31 per million hours, alongside 86 lost time injuries. However, it expanded its reporting to include three subsidiaries that were not covered in FY2022 data. The company also discloses an increase in fatalities from zero in FY2022 to one in FY2023, noting the expanded reporting scope. Additionally, it reveals a turnover rate of 67.5%, disaggregated by business segment and seniority.

The company acknowledges the right to freedom of association for its employees but does not disclose the unionisation rate or evidence supporting employees' rights to freedom of association and collective bargaining. Its supply chain policy requires suppliers to respect these rights, but this is limited to operations in Malaysia.

The company states that it has no collective bargaining agreements and lacks a clear statement supporting workers' right to collective bargaining. While it distinguishes its workforce by permanent versus subcontracted employment, it does not disclose the number of full-time, part-time, or hourly workers.

The company discloses FSSC 22000 certification, recognised by the GFSI, for its integrated livestock farming, marine-products manufacturing, and convenience store chain business units. These divisions account for 21.49%, 55%, and 13.79% of revenue, respectively, comprising over two-thirds of its sites. However, the company does not specify whether its suppliers are required to hold GFSI certification or the proportion of suppliers that meet this criterion.

The company does not report the number or frequency of food safety audits conducted during the reporting year. It also does not specify associated corrective action rates, nor does it disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company acknowledges the importance of food safety to its business integrity but does not specifically address product recalls or market bans. It has not disclosed information on any product recalls for the reporting year.

The company does not disclose any information on market bans for the reporting year, nor were any market bans detected in media screenings.

The company states that reviewing and adopting strategies related to economic, environmental, and social sustainability issues is a key board responsibility. It conducted a materiality assessment in FY2021 and, in FY2023, confirmed the relevance of 17 identified material issues—such as waste and effluent management, climate change and emissions, fair labour practices, occupational health and safety, and biosecurity—through stakeholder consultation. The Sustainability Steering Group, chaired by the CEO, is involved in this assessment. The company does not provide evidence of a board member with expertise in sustainability or food safety. However, it has a board member with experience in new product management and R&D.

The company has not linked executive monetary remuneration to sustainability performance. While it engages with regulators and NGOs as a Council Member of the Chinese Chamber of Commerce, it does not disclose how these engagements address ESG issues. The company is also a member of various trade associations, including the Chinese Chamber of Commerce & Industry of Kuala Lumpur & Selangor, Federation of Malaysian Manufacturers, Sabah Livestock Association, and Federation of Livestock Farmers Association of Malaysia. However, a complete list of its affiliations is encouraged for greater transparency. Additionally, the company does not publicly disclose any commitment to aligning its policy-engagement activities with the goal of limiting global temperature rise to 1.5⁰C.

The company does not disclose a strategic approach to sustainability innovation or state whether it benchmarks itself against peers in sustainability and innovation.

The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.

The company does not indicate an approach to diversifying its product range to include plant-based and alternative protein options.