OSK HOLDINGS BERHAD 199001015406 (207075-U)
MOVING FORWARD, PROGRESSING TOGETHER.
SUSTAINABILITY REPORT 2019 ABOUT THIS REPORT
THE COVER DESIGN OF OUR This year, the cover design of our 2019 SUSTAINABILITY REPORT sustainability report features a glimpse of how we are improving societal “Moving Forward, Progressing well-being through efforts in our five Together” has been an ongoing theme sustainability focus areas, namely, that resonates with OSK Group as it Governance, Economic, Environmental, encapsulates our journey of striving Social and Community. Besides and progressing together as a Group showcasing the positive impacts we towards our vision of being a long- deliver to the local communities, the term business builder and delivering illustration also seamlessly transitions value to our stakeholders. into the cover design of OSK Group's 2019 Annual Report.
OSK Group Sustainability Report PRINCIPAL GUIDELINES joint venture and collaborative 2019 is the fourth consecutive • Bursa Malaysia Securities Berhad partners, occupants, tenants, sites, edition of OSK Holdings Berhad Main Market Listing Requirement as well as third party vendors and (“OSK” or “the Company”) and • Bursa Malaysia's Sustainability suppliers that are beyond the direct its subsidiaries’ (“OSK Group” or Reporting Guide and immediate control of OSK “the Group”) Sustainability Report Group, unless otherwise stated. that documents our progress in ADDITIONAL GUIDELINES driving a culture of sustainability • Global Reporting Initiative ("GRI") FEEDBACK and, embedding sustainable Standards • This report, as well as our previous practices across the Group. This Sustainability Reports, are available report is intended to present OSK REPORTING PERIOD AND CYCLE in PDF format and can be accessed on Group's sustainability strategies, • 1 January – 31 December 2019 our corporate website at: initiatives and performance (“FY2019”) *unless otherwise stated in creating value for our • The OSK Sustainability Report is http://www.oskgroup.com/ stakeholders. The publication prepared and published on an corporate-announcements/ of this report complements OSK annual basis, based on its financial • As we endeavour to continuously Group's 2019 Annual Report. year. improve our sustainability efforts and
disclosure, we welcome feedback, In keeping with Bursa Malaysia SCOPE suggestions and comments from all Securities Berhad’s Main Market Listing • Our reporting scope encompasses our stakeholders to further strengthen Requirements, as well as other additional the operations of OSK, a public our sustainability performance and reference and guidelines listed below, we listed company on the Main Market reporting. continue to ensure transparent disclosure of Bursa Malaysia Securities Berhad, of our sustainable development journey and its subsidiaries in Malaysia. to our wide array of stakeholders. • The content of the report excludes • Kindly address your feedback to OSK our business and corporate activities Group Chief Sustainability Officer at: conducted outside Malaysia and [email protected] activities undertaken by the Group’s
FEATURES IN THIS SUSTAINABILITY REPORT
This icon indicates where This icon indicates where To access our Sustainability Report, more details can be accessed more details can be accessed online. please scan the QR code above elsewhere in our Sustainability Report with your smart device. or Annual Report 2019. http://www.oskgroup.com/ corporate-announcements/ INSIDE THIS REPORT
Overview & Ensuring Good Helping The Leadership Governance & Underserved In Statement Accountability The Community
3 About Us 18 Ethics and Integrity 46 OSK Foundation: Making a 5 Chairman’s Message 19 Regulatory Compliance difference in the community 19 Prudent Risk Management 20 Anti-Corruption
Creating Strategy For Shared Sustainable Economic Value Creation Growth What’s Ahead?
6 Sustainability Policy 21 Economic 50 Top Five Material Matters 7 Sustainability Roadmap 21 Sustainable Procurement To Drive Sustainability 8 How We Implement Sustainability 21 Market Presence 8 How We Govern Sustainability 21 Reputation 9 How We Engage Our Stakeholders
Supporting Sustainability Environmental Review 2019 Well-being GRI Index
11 Phase One – Alignment with 23 Innovation 52 GRI Index Group Enterprise 24 Green Buildings Risk Management 25 Managing Resources at the 11 Phase Two – Materiality Workplace Reassessment 25 Energy 26 Waste Management Creating a Responsible Marketplace Our & Being a Sustainability Responsible Achievements Employer
15 KPIs & Outcomes 29 Quality Products and Services 31 Ensuring a Safe Environment for Our Customers 31 Customer and Public Engagement Events 32 Data Protection 33 Health and Safety 41 Employee Engagement Programmes 44 Talent Management 45 Learning and Development Overview & 01 02 03 04 05 06 07 08 09 10 11 Leadership Statement
ABOUT US
OSK Holdings Berhad (“OSK” or “the merged into OSK Group in 2015, which In addition to the property development Company”) began its stockbroking transformed OSK into an enlarged segment, other businesses under OSK business in 1963 and was listed on the entity with diversified business interests Group are also well established in their Kuala Lumpur Stock Exchange (“KLSE”, in five key segments, namely, Property, respective industries, including OSK now known as Bursa Malaysia Securities Construction, Financial Services, Construction, a “Class A” and “G7” Berhad or “Bursa Malaysia”) in 1991. Industries and Hospitality. certified contractor which operates in OSK grew over the years to become a tandem with OSK Property under the regional investment bank under OSK Today, OSK’s property development “Prop-Con” model. Investment Bank Berhad (“OSKIB”). business, under the “OSK Property” brand, is a leading home-grown name OSK’s industries segment, on the other In 1997, OSK diversified into properties that takes pride in providing a range hand, involves the manufacturing of through its subsidiary company, OSK of quality homes from its sprawling power cables under the Olympic Cable Property Holdings Berhad (“OSKPH”). township in Sungai Petani, Kedah, to brand and precast concrete wall panels, When OSKIB became a regulated entity high-rise city condominiums and mixed- an industrialised building system solution, in 2007 by Bank Negara Malaysia, use developments in the Klang Valley to under the Acotec brand. the shares of OSKH were distributed to modern affordable landed residences in the shareholders of OSK to comply with the Iringan Bayu township in Seremban, OSK Capital, the financial services arm, regulatory requirements. Negeri Sembilan. provides capital financing; while our hospitality segment comprises hotels In 2012, OSKIB merged with RHB OSK is also expanding its overseas under the “Swiss-Garden International” Investment Bank Berhad in a share swap presence beginning with its maiden brand, as well as a vacation club under exercise resulting in OSK becoming a project in Melbourne, Australia, known the “SGI Vacation Club” brand. major shareholder in RHB Banking Group as Melbourne Square. A joint-venture – the 4th largest bank in Malaysia, an partnership with Employees Provident Capitalising on our business building investment holding position that OSK Fund Malaysia (“EPF”), Melbourne expertise, OSK Group is focused on continues to hold until today. Square is a connected, live-work-play improving the performance of our precinct that is set to transform the city’s business portfolios to deliver strong Subsequently, OSKPH and PJ evolving skyline. sustainable returns to our shareholders. Development Holdings Berhad (“PJDH”)
PROPERTY CONSTRUCTION FINANCIAL • Property • “Class A” and SERVICES Development “G7” Contractor • Capital Financing • Property Investment • Investment Holding and Management
INDUSTRIES HOSPITALITY • Industrialised • Hotels and Building System Resorts • High Quality Power • Vacation Club Cables
OSK HOLDINGS BERHAD 199001015406 (207075-U) 3 SUSTAINABILITY REPORT 2019 Overview & 01 02 03 04 05 06 07 08 09 10 11 Leadership Statement
ABOUT US
Embracing Sustainable Growth SUSTAINABILITY VISION: The spirit and essence of sustainability is integrated into OSK’s Building Sustainable Businesses of Tomorrow. vision and mission to create long-term sustainable growth in all our businesses. SUSTAINABILITY MISSION: Our sustainability vision and mission support OSK’s corporate A responsible organisation that creates significant value for strategy, as we continually advance and innovate to build our stakeholders – for today and tomorrow. resilient and future-ready businesses.
OUR OUR CORPORATE CORPORATE VISION MISSION
At OSK, our vision SHAREHOLDERS BUSINESS PARTNERS is to be a long-term We seek to create long-term value for We create and nurture mutually business builder that our shareholders through delivering rewarding long-term partnerships delivers superior strong and sustainable returns. with our suppliers, consultants, business associates and customers. value to all our BUSINESS UNITS internal and external We help our businesses deliver EMPLOYEES stakeholders. unique and high-quality products We aim to be an employer of and services to our customers choice through maintaining a through the expertise of our business good work culture and adopting leaders, our willingness to invest in a genuine interest in the talent, our efficient infrastructure and long-term career development of our our effective operational processes. employees.
COMMUNITY We aim to enrich the lives of the communities in which we operate.
OUR EXCELLENCE HUMILITY & RESPECT CORPORATE We make decisions and formulate In all our internal and external strategies based on objective facts. dealings, we seek to create an VALUES We try our best to have a thorough environment of mutual respect understanding of our businesses and through demonstrating humility, We aim to achieve our the markets in which we operate so appreciation and cooperation. vision by embracing that we make decisions that are well these values in our thought-through. INTEGRITY daily work. We are dedicated to building strong We adopt high standards in all relationships that are mutually that we do so that our businesses beneficial to all our stakeholders consistently deliver high quality and us. Even in the most challenging products and services. situations, we behave in a professional and ethical manner. FORWARD THINKING We adopt a long-term view of our PEOPLE DRIVEN businesses and the markets that we Our people are the ones who power operate in, and we are conscious of the organisation. As such, we try the long-term effects of the decisions our best to recruit, groom and retain we make. people who have good character, are committed to the organisation and are highly skilled in their areas of expertise.
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CHAIRMAN'S MESSAGE
• Innovation to promote environmental conservation and incorporating innovative advancements into our business operations; • Quality Products and Services to uphold our reputation and honour the trust given to us by our stakeholders and customers; • Talent Management to prepare our workforce to ensure that they continue to excel and contribute to the growth of the Nation’s economy; and • Health and Safety to safeguard the well-being of our employees, suppliers, vendors, consultants and customers at all times.
With this, I would like to take this opportunity to thank the Government, regulators and agencies for their efforts in instilling sustainability, and I also wish to express my appreciation to the members of our Board, management and employees for their commitment and drive to embrace sustainability as an integral part of the Group’s culture and conduct.
Tan Sri Ong Leong Huat @ Wong Joo Hwa On behalf of the Board of Directors, it is my pleasure to present Executive Chairman OSK Holdings Berhad’s Sustainability Report 2019, our fourth 28 February 2020 edition for the Group. Updates (22 April 2020) The year 2019 marked the end of the decade with increasing The paragraphs below provide an update on the sustainability disruptions in the social, environmental, technological and actions and views adopted by the Group, following events that geopolitical landscape throughout the world, as rapidly shifting took place after 28 February 2020. priorities alter the ways companies embed sustainability into their business strategies. Recognising the potential risks this As the Covid-19 pandemic intensifies with total confirmed cases poses not only to the continued well-being of our community, globally exceeding 2.6 million and a death toll surpassing but to the Group as a whole, we directed our focus to 180,000 (as at 22 April 2020), Malaysia is not spared from strengthening our sustainability resilience, primarily on the four the impact of the virus as total domestic cases reached 5,532 aspects below: with a death toll of 93 (as at 22 April 2020).
1. Contributing to the nation’s vibrant economy by creating Nonetheless, we are pleased to be among the first movers rewarding employment opportunities and upskilling our who had adopted proactive risk mitigation measures as early people to prepare them for future challenges; as late-January 2020 before cases began escalating in the 2. Upholding our commitment to good governance and country. In addition to adhering to the Movement Control Order continuing to deliver on our promise to provide quality (“MCO”) enforced by the Government, we have put in place products and services to our customers; the necessary precautionary actions across our premises to 3. Innovating and exploring new ways to conserve our safeguard the health and well-being of our customers, tenants, environment, while minimising and mitigating the impact of employees, as well as everyone around us. our activities to our surroundings; and 4. Making a difference in the community, especially among Careful consideration was also taken prior to the implementation the underprivileged, to ensure that their needs are met and of each measure to ensure that they are in accordance with providing them with the support they need to lead a healthy the guidelines issued by from the Ministry of Health and other and successful life. global health authorities to minimise the risk of transmission.
Our response to the growing urgency to address sustainability During these challenging times, it is worth noting that our holistically is reflected in our actions taken during the year, healthcare workers are on the frontline contributing tirelessly in which include re-assessing the effectiveness and relevancy of the fight against the virus. In solidarity with the community and our material matters and re-aligning them to address emerging showing them that we are together in this crisis, OSK Foundation priorities; incorporating enterprise risk management in our made a contribution to The Edge Covid-19 Equipment Fund to sustainability framework; and evaluating our contributions to support the purchase of much-needed medical equipment such the wider sustainability agenda. as masks, protective suits and ventilators for our hospitals.
The year 2020 is expected to be an exciting year ahead, as Further discussion on the above can be found on pages 35-39 we move forward to focus our sustainability efforts on our five in this report. Despite the challenging impacts of Covid-19, we most material matters, namely: look forward to continue our sustainability journey to deliver meaningful and positive change to the community, environment • Ethics & Integrity to strengthen the Group’s governance and all our stakeholders. underpinned by ethical conduct and sustainability principles;
OSK HOLDINGS BERHAD 199001015406 (207075-U) 5 SUSTAINABILITY REPORT 2019 Strategy For 01 02 03 04 05 06 07 08 09 10 11 Sustainable Value Creation STRATEGY FOR SUSTAINABLE VALUE CREATION
Guided by our Sustainability Policy and objectives, OSK is committed to building sustainable and long- which was established in 2016, we continue to term businesses, while shaping and spearheading embed sustainability in the manner we conduct our impactful change for our customers, our talents, the businesses. communities where we operate in, the marketplace and the environment.
SUSTAINABILITY AT OSK
Our Biggest Asset
• Top Talents Highest Ethical Standards • Diverse & Inclusive Minimising Workplace • Anti-bribery Impacts • Safety & Health & Anti-corruption • Innovation • Accountability & Risk • Green Practices DRIVING Management • Promoting SUSTAINABLE • Regulatory Compliance Environmental GROWTH Protection and Progressing Together Conservation Responsible Marketplace • Market Leadership • The Best Products & • Superior Returns Services • Go Local • Continuous Improvement • Customer-centric
OUR SUSTAINABILITY POLICY
Guiding Principles for OSK's Sustainability Policy Sustainability to OSK
To comply with, and exceed where practicable, all applicable 1 legislations, regulations and codes of practice.
Limit Our To integrate sustainability values into our business decisions. 2 Adverse Responsible Impact To ensure that all Directors and employees are fully aware of our Behaviour Sustainability Policy and are committed to its implementation and improvement. 3 Increase Our Positive Impact To ensure that external parties involved in any business dealings with the Group are aware of and strive to adhere to our 4 Sustainability Policy, where practicable.
To engage with relevant stakeholder groups to identify and align their concerns with the Group’s sustainability strategy, where 5 applicable.
To review and report the key sustainability matters annually and 6 continually strive to improve our sustainability performance.
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 6 Strategy For 01 02 03 04 05 06 07 08 09 10 11 Sustainable Value Creation
STRATEGY FOR SUSTAINABLE VALUE CREATION
SUSTAINABILITY ROADMAP 103 For FY2019, we undertook a second materiality assessment taking into consideration the maturity of our businesses, our The Group’s sustainability journey started four years ago achievement and initiatives thus far. The following table with the identification of material sustainability matters that illustrates the Group’s sustainability journey – past, present were most relevant to OSK in 2016. This was followed by the and future: formulation of KPIs for 10 selected most material matters in 2017. In 2018, we continued to track our KPIs and reviewed our Sustainability Performance.
Awareness and the Foundation Operational Continuous Improvement Moving Forward Sustainability Practices 2016 2017 2018 2019 2020 Identified 32 material Remained 32 Remained 32 Undertook a second materiality Adoption of the 20 sustainability matters material matters. material matters. assessment. Streamlined material matters to guide (material matters) that 32 material matters into 20 the Group’s overall were most relevant to material matters, in line with sustainability direction OSK. current business aspirations and and support the Group’s sustainability guidelines. Out business objectives. of the 20 material matters, five Adoption of the five were determined to have the most material matters as most impact and significance to the primary focus of the the Group’s business viability Group’s sustainability and long-term success. initiatives and reporting across our sustainability Conducted our first online impact areas: People/ Materiality Assessment Survey Talent, Business & covering internal and external Customers, and stakeholders of OSK. Community. No key performance Formulated KPIs Continued tracking Continued tracking of KPIs for Map the five most indicators (“KPIs”) on for 10 selected of KPIs for the the 10 material matters. material matters sustainability matters. material matters. 10 material to Enterprise Risk matters. Management (“ERM”) framework and develop new KPIs and targets to measure sustainability performance. Identified five Remained with Remained with five Remained with five pillars. Remained with five reporting pillars five pillars. pillars. pillars. which are Governance, Economic, Environment, Social and Community.
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STRATEGY FOR SUSTAINABLE VALUE CREATION
HOW WE IMPLEMENT SUSTAINABILITY activities are grounded on the outcome of our materiality analysis, which guides us towards achieving our targets in Our roadmap towards sustainable development represents sustainability. a measured approach that is geared towards forming the necessary perspectives and practices to deliver practical and tangible outcomes across the entire Group, including each subsidiary, business unit and department. Our plans and
OSK’S ROADMAP TO SUSTAINABILITY
Outline Establish Identify Conduct Sustainability Goverrnance Stakeholders Materiality 1 Policy 2 Structure 3 Group 4 Study
Select Set KPIs Material For Material Formulate Track Action 5 Matters 6 Matters 7 Action Plans 8 Plans & KPIs
HOW WE GOVERN SUSTAINABILITY Supporting the BOD are the Group Management Risk 102-18, 102-19, 102-32 Committee (“GMRC”) and the Chief Sustainability Officer (“CSO”) who are responsible for overseeing the overall Sustainability Governance is an essential factor in driving implementation of sustainability strategies and initiatives sustainability and ensuring long term success. Since 2016, across the Group. There is also the Sustainability Working the Board of Directors (“BOD”) is responsible for driving Group (“SWG”), which includes Business and Functional and ensuring the effectiveness of the Group’s sustainability divisions responsible for practising sustainability in their daily strategy. operations, as well as tracking and monitoring its progress.
Drives sustainability strategy. OSK Board of Directors Issues final approval for sustainability initiatives, strategies, Sustainability Report Board Risk Management Committee and its contents.
Responsible for overseeing the Group Management Risk Committee overall sustainability strategy and implementation across the Group. Chief Sustainability Officer Ensures that policies, processes and systems related to sustainability are in place. Sustainability Working Group Drives, tracks and monitors progress and improvement Business and Functional Divisions towards achieving the Group's key sustainability objectives.
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 8 Strategy For 01 02 03 04 05 06 07 08 09 10 11 Sustainable Value Creation
STRATEGY FOR SUSTAINABLE VALUE CREATION
HOW WE ENGAGE OUR STAKEHOLDERS engage and evaluate diverse perspectives in our decision- 102-40, 102-42, 102-43, 102-44 making to create sustainable impact.
Effective and meaningful engagement with key stakeholder In 2019, we maintained continuous engagement with our key groups is essential to achieving robust strategy development stakeholders to seek their feedback through various means and shared ownership in the Group’s success. It also forms including meetings, customer surveys, roadshows and social the foundation of good governance and trust, allowing us to media, as summarised in the table below:
Stakeholder Areas of Interest OSK’s Stance Engagement Methods Frequency of Groups Engagement Business • Industry best practices Together with our • Annual and Annual and Industry • Innovation and advances in the industry peers, Sustainability Reports Partners industry OSK is committed • Consultation on industry As and when • New business opportunities to advancing the matters required • OSK’s position within the industry through industry active participation • Corporate presentation As and when • Fair procurement in the marketplace required • Staying connected with the and sharing updates • Events and roadshows Ongoing Company on our progress, • Support of local suppliers and challenges and other • Forums and dialogues As and when local producers developments. required • Membership in Annual To read more about our associations response, please refer to the • Satisfaction survey Annual “Economic” section on pages 21-22 of this Sustainability Report. Community • Impact of operations to the As part of our society, • Community engagement Ongoing community OSK understands activities • Local community development that our business • Community partnerships Ongoing • Philanthropy operations have • Staying connected with the an impact on the • Social media tools Ongoing Company community. We are • Website, catalogues Ongoing committed to our and brochures To read more about our role as a contributor response, please refer to the and enabler for the “Social“ and “Community” communities in which sections on pages 29-41 and we operate. 42-45 of this Sustainability Report. Customers • Brand reputation Building strong • Events and roadshows Ongoing including • Confidence and trust in the relationships and trust • Feedback channels Ongoing Tenants, Company forms the foundation Shoppers • Pleasant experience of everything we • Loyalty programmes Ongoing and Guests • Value for money do. OSK envisions • Market research As and when being the partner required To read more about our of its customers and response, please refer to the maintaining a • Meetings Ongoing “Economic” and “Community” long-term perspective • Social media tools Ongoing sections on pages 21-22 and of its business 42-45 of this Sustainability Report. operations. • Website, catalogues Ongoing and brochures
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STRATEGY FOR SUSTAINABLE VALUE CREATION
Stakeholder Areas of Interest OSK’s Stance Engagement Methods Frequency of Groups Engagement Employees • Attractive remuneration OSK is committed • Annual dinner Annual • Career development to providing an • Work-life balance engaging, inclusive • Employee engagement Annual and stimulating work survey To read more about our environment that • Employee volunteerism As and when response, please refer to the encourages quality required “Social” section on pages 29-41 performance, high of this Sustainability Report. employee satisfaction • Internal employee portal Ongoing and loyalty. • Internal engagement Ongoing activities • Training and Ongoing development • Townhall meetings Ongoing • Whistleblowing channel Ongoing Government • Compliance Each subsidiary • Formal meetings As and when and • Contributions to the economy, is responsible to required Regulators local community and comply with all nation-building relevant regulations. • Performance reports Ongoing We support the To read more about our Government’s response, please refer to the initiatives and place “Governance”, “Economic” and great emphasis on “Community” sections on pages being an exemplary 18-20, 21-22 and 42-45 of this corporate citizen. Sustainability Report. Media • Corporate updates Delivering the right • Events and launches Ongoing • Events message to the media • Upcoming developments is key, especially at • Media networking Ongoing corporate events and sessions To read more about our launches, where we • Media visits Ongoing response, please refer to the disseminate first-hand “Economic” and “Community” project information, sections on pages 21-22 and initiatives and 42-45 of this Sustainability Report. updates. Shareholders • Brand reputation OSK’s overall goal is • Annual general Annual and • Future competence to create sustainable meetings Investors • Long-term relationship shareholder value development while fulfilling the • Annual and Annual • OSK’s position within the expectations of other Sustainability Reports industry stakeholders. A strong • Positive investment growth focus on financial • Bursa announcements As and when • Risk management performance, risk required management and • Investor relations (“IR”) As and when To read more about our internal control briefings or conference required response, please refer to the is instrumental in calls “Economic” section on achieving this goal. pages 21-22 of this Sustainability • Quarterly financial Quarterly reports Report. • Shareholder updates As and when required Supply Chain • Fair procurement OSK works across • Satisfaction survey Ongoing Partners • Staying connected with the its value chain to Company minimise risks, • Supplier audits Ongoing • Support of local suppliers and maximise future • Supplier events Ongoing local produce opportunities and ensure sustainable To read more about our economic growth. response, please refer to the “Economic” and “Social” sections on pages 21-22 and 42-45 of this Sustainability Report. OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 10 Sustainability 01 02 03 04 05 06 07 08 09 10 11 Review 2019
SUSTAINABILITY REVIEW 2019
As part of our efforts in addressing emerging sustainability approach, performance and traction. challenges, the Group reviewed its sustainability perspective and processes from which a series of The sustainability enhancement measures undertaken during actions were implemented to further improve our 2019 was divided into two main phases as follows:
OSK Group Strategy
Business Units & Operations PHASE ONE PHASE TWO
Group Enterprise Risk Review Material Matters Management Materiality Survey Materiality Matrix Establishing Sustainability Context Evaluate & Prioritise Material • Governance Matters • Economic Sustainability • Social Focus Areas Five Most Material Matters • Environment (FY2020 onwards) Risk Assessment
Risk Identification Risk Analysis Risk Evaluation
Risk Treatment Regular Monitoring and Review
PHASE ONE PHASE TWO
ALIGNMENT WITH GROUP ERM - Understanding MATERIALITY REASSESSMENT – Reviewing Our Sustainability Risks and Opportunities Material Sustainability Matters 102-46 102-47
To ensure deeper insights on sustainable development and In 2017, we prioritised 10 out of the 32 material matters resource allocation, SWG worked with the Group Risk identified in 2016 to ensure focused sustainability initiatives Management (“GRM”) department to incorporate strategic and disclosure. sustainability risk mitigation measures into the Group’s decision-making and performance evaluation process. In keeping with our Sustainability Guiding Principle, SWG re-assessed the Group’s 32 material matters in 2019, alongside To this end, we identified the need to re-engage our materiality the Group’s enterprise risk profile to evaluate its continued factors via a materiality assessment, to ensure that potential relevance in supporting the Group's long-term success and our concerns impacting the governance, economic, social and ability to deliver sustainable value to our stakeholders. environmental sustainability of the Group are addressed and aligned to the Group’s enterprise risk profile.
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SUSTAINABILITY REVIEW 2019
During this process, SWG streamlined the existing 32 material matters into 20 material matters.
32 Material Matters 20 Material Matters 1. Local Hiring 1. Regulatory Compliance 2. Nation Building 2. Anti-Corruption 3. Sustainable Procurement 3. Quality Products and Services 4. Climate Change 4. Ethics and Integrity 5. Anti-Competition 5. Reputation 6. Green Buildings 6. Health and Safety 7. Employee Volunteerism 7. Data Protection 8. Local Community Engagement 8. Waste 9. Water 9. Water 10. Energy 10. Biodiversity 11. Responsible Sourcing of Materials 11. Energy 12. Responsible Financing 12. Climate Change 13. Waste 13. Green Buildings 14. Diversity 14. Economic Performance 2019 15. Stakeholder Engagement 2020 15. Market Presence 16. Employer/Employee Relations 16. Innovation 17. Customer Privacy 17. Diversity and Equal Opportunities 18. Customer Feedback 18. Talent Management 19. Corruption 19. Sustainable Procurement 20. Economic & Business Performance 20. Community Engagement 21. Recruitment & Retaining 22. Training and Career Development 23. Board Management 24. Employee Engagement and Satisfaction 25. Discrimination 26. Quality 27. Ethics 28. Transparency 29. Risk Management 30. Child and Compulsory Labour 31. Occupational Safety and Health 32. Public and Customer Safety
SWG adopted the view that the streamlined 20 material Key internal and external stakeholder groups were invited to matters provide a close reflection of the Group’s current participate in the Stakeholders’ Materiality Assessment Survey. business landscape and offer a more coherent interpretation of They comprised: the established GRI Standards in terminology and application. Hence, the SWG decided that these 20 material matters be used as the basis for the Group’s sustainability reporting from FY2020 onwards. Our business Members of the Our customers Our top and industry community management In identifying these 20 material matters, the following partners and employees measures were undertaken by OSK Group:
• Sustainability meeting with GMRC; • Pre-Materiality Assessment Workshop Meeting; • Materiality Assessment Workshop with Senior Representatives Members of Our Management; and from the the media shareholders • Materiality Assessment Workshop with Business Units. Government and investors and regulators
To ensure impartiality, efficiency and effectiveness of the The output of the materiality assessment was the generation of exercise, we engaged an external consultant to develop and a new materiality matrix. The matrix was then deliberated by carry out an online Stakeholders’ Materiality Assessment the SWG with the Senior Management and the Business Units Survey. The objective of the survey was to obtain feedback (via workshops) to ensure that the profile of the matrix was on the Group’s sustainability performance and, stakeholders’ in alignment with the Group’s vision and long-term business concerns with respect to the 20 material matters. aspirations, as well as potential risks and opportunities that may arise.
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SUSTAINABILITY REVIEW 2019
Materiality Reassessment Process
Identification Assessment Establishment Evaluation Validation
A total of 20 material Material assessment The materiality matrix The established The materiality matrix matters were identified of the 20 material was established based materiality matrix was then verified by the SWG and the matters were carried on the results of the was analysed and and agreed by the GMRC as crucial, out in a series of materiality assessment, evaluated by the BOD and shall be based on evaluation workshops and where each material SWG. reviewed from time of the existing 32 online survey with matter was ranked to time. material matters, our stakeholder according to its industry trends and groups. These include importance to each leading GRI indicators. business and industry stakeholder group and partners, members OSK Group. of the community, customers, employees, Government and regulators, members of the media, shareholders and investors.
NEW MATERIALITY MATRIX – What Matters to Us our business operations. Material matters located in the top right quadrant are recognised as those with most significant The position of each material matter within the matrix is influence and impact to the continued success of OSK Group. indicative of its relative importance to stakeholders and to
Legend
Regulatory Governance Compliance Very High Very Anti-Corruption Economic Quality Products and Services Health and Safety Ethics and Environmental Integrity Data Protection Reputation Social Community Engagement Economic Performance Market Presence Innovation Diversity Sustainable and Equal Talent Management Opportunities Green Buildings Procurement Climate Change Waste Significance to Stakeholders
Energy Water
Biodiversity High High Significance to Business Operations Very High
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SUSTAINABILITY REVIEW 2019
Upon detailed deliberation on the material matrix, the SWG Nonetheless, the other 15 material matters shall continue to proposed that the five most material matters shown below be pursued to ensure holistic and sustainable growth across shall anchor the Group’s sustainability journey and emphasis all levels of the Group’s operations. for year 2020 and beyond.
20 Material Matters Five Most Material Matters Sustainability Focus Areas For FY2020 For FY2020 • Regulatory Compliance • Ethics and Integrity Governance • Anti-Corruption • Innovation Economic & Environment • Quality Products and Services • Quality Products & Services Economic & Social • Ethics and Integrity • Talent Management Social • Reputation • Health & Safety Social • Health and Safety • Data Protection • Waste • Water • Biodiversity • Energy • Climate Change • Green Buildings • Economic Performance • Market Presence • Innovation • Diversity and Equal Opportunities • Talent Management • Sustainable Procurement • Community Engagement
Ryan & Miho, a GBI Gold certified development Artist's Impression
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OUR SUSTAINABILITY ACHIEVEMENTS
In 2017, we formalised our KPIs and have been reporting importance of continuity in reporting. Our reporting themes its achievements in our annual Sustainability Report. We are selected based on the importance of these material have ensured that our transition this year will not divert from matters to our business operations and the level of interest to the progress we have achieved so far to underscore the our stakeholders.
KPIs & OUTCOMES
Material Matters Owners KPIs Targets Outcomes Governance Business Ethics Company Number of Minimum three 1. Rolled out the Anti-Bribery and Secretarial initiatives initiatives per year. Corruption Handbook (“ABAC To read more about (“Co-Sec”)/ taken to Handbook”). our performance on this All enhance 2. Rolled out the revised Fraud Policy. Material Matter, please business 3. Rolled out e-acknowledgement for refer to page 18 of this ethics ABAC Handbook, revised Fraud Sustainability Report. practices. Policy, Code of Conduct and Business Ethics, and Whistleblowing Policy for all new and existing employees. 4. Existing and new policies are made available to all employees via internal employee portal. Risk Management Risk Number of Minimum two 1. Conducted risk awareness training to Management activities initiatives per year. OSK Group entities. To read more about conducted 2. Conducted Business Continuity our performance on this to cultivate a awareness to OSK Group entities. Material Matter, please positive risk 3. Conducted cyber security and IT risk refer to page 19 of this management awareness to OSK Group entities. Sustainability Report. culture. Transparency Co-Sec Maintain To be listed in the 1. Listed on the ASEAN CG 2018 good Minority Shareholder List of Top 100 Companies for CG To read more about corporate Watch Group Disclosure (ranked 41st). our performance on this governance (“MSWG”) Top 100 *Source: http://www.mswg.org. Material Matter, please (“CG”) Companies my/list-of-top-100-companies-for-cg- refer to page 19 of this practices and for Overall CG & disclosure-by-rank Sustainability Report. Disclosure. Performance. 2. Listed on the ASEAN CG 2018 List of Top 100 Companies for Overall CG & Performance (ranked 66th). *Source: http://www.mswg.org. my/overall-cg-performance-by-rank
Note: MSWG has yet to release the lists for FY2019 at time of printing.
OSK HOLDINGS BERHAD 199001015406 (207075-U) 15 SUSTAINABILITY REPORT 2019 Our Sustainability 01 02 03 04 05 06 07 08 09 10 11 Achievements
OUR SUSTAINABILITY ACHIEVEMENTS
Material Matters Owners KPIs Targets Outcomes Economic Economic & Business All Number of Minimum three 1. OSK Foundation supported Performance initiatives initiatives per 39 organisations/ taken to contribute year. beneficiaries in 2019. To read more about our to local economy/ Details are listed in the performance on this Material community. "Community" section of Matter, please refer to page 21 this report. of this Sustainability Report. 2. OSK Property continued to support the wellbeing of the Orang Asli community by building a home for an Orang Asli family in EPIC 3.0. Details are listed in the "Community" section of this report. 3. Atria supported and continues to support the Alzheimer’s Disease Foundation Malaysia (“ADFM”) via a dementia-friendly community corner within the mall. Environment Waste Management All Number of waste Minimum two 1. Recycling Right 2.0 initiative. management initiatives per 2. Recycling excess materials To read more about our initiatives or year. and cuttings from Acotec performance on this Material campaigns panels to minimise wastage. Matter, please refer to page 26 conducted. 3R (Reduce, Reuse, Recycle) of this Sustainability Report. practices encouraged Company-wide. Social Quality Property Quality Assessment Achieve a QLASSIC scores achieved by Development System for Building minimum OSK Property: To read more about our Construction Works score of 75%. • "Luminari" in Butterworth, performance on this Material (“QLASSIC”) score Penang – 80%; Matter, please refer to page 29 for development • "Windmill Upon Hills" in of this Sustainability Report. projects. Genting Permai, Pahang – 80%; and • "TimurBay" in Kuantan, Pahang – 76%. Public & Customer Safety Property Timely maintenance Keep within 1. Implemented precautionary Investment - of public facilities the number measures against Novel To read more about our Atria calculated by of allowable Coronavirus (Covid-19) performance on this Material number of major major across all retail, hotels, Matter, please refer to page 31 breakdowns breakdowns resorts, factories and office of this Sustainability Report. (requiring per year premises under the Group. specialist/service (not more 2. No major breakdown was provider actions) than eight reported during the year, per year. breakdowns except toilet maintenance with four that required change of being the parts. The issue was promptly target addressed. allowable).
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 16 Our Sustainability 01 02 03 04 05 06 07 08 09 10 11 Achievements
OUR SUSTAINABILITY ACHIEVEMENTS
Material Matters Owners KPIs Targets Outcomes Social (Cont'd) Occupational Safety & Construction Number of Minimum two 1. Implemented precautionary Health Hospitality initiatives activities per measures against Novel Cables conducted to year. Coronavirus (Covid-19) at To read more about our cultivate a safety Plaza OSK. performance on this Material and health 2. Swiss-Garden Beach Resort Damai Matter, please refer to page 33 awareness Laut of this Sustainability Report. culture. • Conducted one-day briefing by Jabatan Bomba (Manjung/ Pantai Remis). • Conducted one-day briefing on the formation of Occupational Safety and Health Administration & Emergency Response Team (“ERT”) Committee. • Conducted two-day Cardiopulmonary Resuscitation (“CPR”) & First Respondent Training. • Displayed Hazard Identification, Risk Assessment & Risk Control info to mitigate workplace risk. • Displayed operating manuals at work stations where there is a potential risk when operating machinery or implementing work processes. 3. Swiss-Garden Beach Resort Kuantan • Carried out basic life support and first aid training (CPR & Automated External Defibrillator) at the workplace. • Conducted ERT Training 4. Olympic Cable Company (“Olympic Cable”) • Conducted fire drill. • Conducted ERT training. • Conducted safe work practice briefing. • Conducted forklift safety training. • Conducted hearing conservation training. Training & Career Group Training Achieve an The Group achieved an average Development Human satisfaction average training satisfaction score of 84%. Resources score. satisfaction score To read more about our (“HR”) of 75%. performance on this Material Matter, please refer to page 41 of this Sustainability Report. Employee Engagement Group HR Percentage of Benchmark 1. Conducted OSK Group Virtual employee against Townhall (1Q2020). To read more about our satisfaction the Global 2. The Group achieved an overall performance on this Material score. Engagement employee satisfaction score of Matter, please refer to page 37 Index 75%. of this Sustainability Report. (“GEI”) of 66%.
OSK HOLDINGS BERHAD 199001015406 (207075-U) 17 SUSTAINABILITY REPORT 2019 Ensuring Good 01 02 03 04 05 06 07 08 09 10 11 Governance & Accountability ENSURING GOOD GOVERNANCE & ACCOUNTABILITY
Good governance is at the heart In keeping with OSK being a of OSK’s business activities. responsible corporate citizen, we It not only serves as the ensure our policies, procedures foundation to support the Group’s and practices remain relevant, high-performance culture, but also accurate, consistent and serves to preserve stakeholders’ responsive to our stakeholders’ confidence and ensures that the concerns and expectations. organisation is well placed to respond to changes in our external environment.
Conflict of Interest MOST MATERIAL MATTER: Business Ethics Exists when the personal interest of a director or ETHICS AND INTEGRITY Personal Conduct an employee conflict in 102-16, 102-17 any way with the interests All employees are expected of OSK. All situations Ethical business is a crucial element to conduct their roles with where conflict of interest in the corporate culture of OSK as it the standards according might exist must be underscores a commitment to promote to the stipulated guidelines Code reported to the Group's good business conduct and sound and endeavour their best Senior Management and corporate governance, which are effort to maintain the appropriate approvals must integral to our core values. We strive to reputation of the Group. be obtained. uphold the highest principles of moral behaviour and integrity throughout our Business Conduct business chain to operate effectively & Ethics across our diverse business activities. We have, therefore, formulated a Summarises the values, framework for appropriate management principles and bussiness of roles and responsibilities of practices that guide the employees at all levels to merit public business of the Group and trust and uphold our reputation. provide minimum ethical requirements expected from We continued to cascade our Code of the directors and employees. Conduct and Business Ethics (“Code”) employees, as well as key stakeholders blowers can lodge their concerns directly to all existing and new employees. The through our stakeholder engagements or via dedicated emails and letters to the Code outlines our central guide and and our employee portal. Whistleblowing Coordinator or Chairman reference for ethical decision-making of the Audit Committee. The Chairman of to ensure business is conducted with We have also formulated a the Audit Committee deliberates on all integrity. The Code addresses three Whistleblowing Policy that serves as an whistleblowing cases on a regular basis. broad areas of employee performance, avenue for employees and members of Our Whistleblowing Policy is available namely: Personal Conduct, Conflict of public to raise concerns of any suspected on our OSK Holdings Berhad website at: Interest and Business Conduct & Ethics or known impropriety in conduct that they (as shown in the graphic on the right). may have observed in OSK Group. The http://www.oskgroup.com/ policy permits an employee of the Group corporate-governance/ While our Code is established at the or member of the public to confidentially Group level, it is cascaded down to all raise concerns on any misconduct. Whistle- subsidiaries and communicated to all
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 18 Ensuring Good 01 02 03 04 05 06 07 08 09 10 11 Governance & Accountability
ENSURING GOOD GOVERNANCE & ACCOUNTABILITY
• Employment MOST MATERIAL MATTER: Act 1955 Transparency • Personal Data • Companies COMPLIANCE Protection Act Act 2016 TO LAWS AND REGULATORY COMPLIANCE 2010 REGULATIONS 419-1 • Occupational • Minimum Wages Safety and Order 2018 Regulatory compliance has become Health Act 1994 an essential element in our business • Factories and processes to inculcate sustainable • Malaysian Machinery Act practices in our ranks. We endeavour to Anti-Corruption be compliant with laws and regulations Commission and conduct due diligence in all our • Environmental Act 2009 undertakings, as we strive towards Quality Act 1974 responsible business operations across • Whistleblowing our headquarters and subsidiaries. Protection Act Our strong compliance culture ensures 2010 we uphold our reputation and image to remain trustworthy amongst our stakeholders. Henceforth, the Group In 2019, the Group did not incur any 100 Companies for Overall Corporate has formulated various internal significant fine for non-compliance Governance & Performance" (ranked procedures, policies and guidelines with applicable laws or regulations. 66th). This reflects an acknowledgement to ensure zero non-compliance in our During the year under review, OSK of our ongoing efforts in improving business operations. Key regulations was listed by the Minority Shareholders our Corporate Governance practices, that govern our business operations are Watch Group as one of the "Top 100 policies and disclosures, as well as shown in the graphic on the right. Companies for Corporate Governance upholding the spirit of transparency in Disclosure" (ranked 41st) and "Top our daily operations.
MOST MATERIAL MATTER: Risk Management
PRUDENT RISK MANAGEMENT
Enterprise Risk Management is an exercise to address emerging business visibility, among others, on gross important business tool for good risks and assess our ability to respond risk rating, internal controls on the management and governance at effectively. It was also conducted effectiveness and residual risk rating OSK. We have a comprehensive risk to improve compliance with legal, of certain business aspects including management framework in place to help regulatory and reporting requirements, sales, quality, property management, identify potential risks and developing which enhances efficiency and cash flow management, procurement, solutions to either prevent recurrence effectiveness of business operation customers, delivery, compliance, data or minimise their impact while being across the Group. management and talent management. able to take advantage of potential opportunities. In addition, the GRM team conducted Implementation of risk cards enable us to quarterly meetings and discussions stay informed, robust and nimble, when In 2019, OSK had mapped out our on business risks with our Senior facing potential business challenges. material sustainability matters based on Management and heads of department our Enterprise Risk Assessment 2019. to ensure continuous communication To read more about our risk and facilitation of risk assessment, as management measures, please refer Our business risks across the Group well as implementation of risk mitigation to our “Statement on Risk Management are reviewed monthly with quarterly measures at the Group level. and Internal Control” and “Enterprise reporting by the GRM department. Risk Management Framework” sections During the year, we organised bi-annual We recognise the need to develop on pages 108-111 and 112-115 in our Group-wide Enterprise Risk Awareness risk cards for our subsidiaries to gain Annual Report 2019.
OSK HOLDINGS BERHAD 199001015406 (207075-U) 19 SUSTAINABILITY REPORT 2019 Ensuring Good 01 02 03 04 05 06 07 08 09 10 11 Governance & Accountability
ENSURING GOOD GOVERNANCE & ACCOUNTABILITY
ANTI-BRIBERY AND ANTI- The ABAC Handbook is implemented CORRUPTION in conjunction with three Group-wide 205-2, 205-3 policies, namely: 1. Code of Conduct and Business OSK Group does not condone nor Ethics support any form of corrupt practices 2. Whistleblowing Policy within the organisation, including the 3. Fraud Policy parties whom we work with. Towards the realisation of good governance and The ABAC Handbook is available on integrity in all aspects of our operations, OSK Holdings Berhad’s website at: we have established the Whistleblowing Policy and Fraud Policy in September http://www.oskgroup.com/ 2017. corporate-governance/
Introduction to the ABAC Handbook.
We introduced the Group’s Anti-Bribery and Anti-Corruption Handbook (“ABAC Handbook”) that was adopted Group- wide in January 2020. The policies and procedures detailed in the handbook are applicable to all employees and third- party suppliers, vendors and agents, which carry out business activities with or provide services to the Group.
Additionally, in keeping with the new ABAC Handbook, the Group revised our Fraud Policy which was approved in January 2020 with a focus on refining our scope and expanding its coverage to 3rd party(ies) that perform services for or on behalf of OSK Group.
These policies function as a guide for our employees to act in accordance with OSK’s values and to ensure protection when inappropriate behaviour is reported. Besides the inclusion of corporate policies in our employees’ induction pack, the policies are also accessible in the Policy Portal on the Company’s Intranet.
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 20 Creating Shared 01 02 03 04 05 06 07 08 09 10 11 Economic Growth CREATING SHARED ECONOMIC GROWTH
As a conglomerate with Most importantly, we pledge to diversified business interests, remain corruption-free in all our OSK acknowledges the dealings in upholding our core significance of promotingvalue of integrity. inclusive growth for the Group and its stakeholders. This is To help strengthen our national realised by leveraging on our economy, we continue to hire central belief that “Moving locals besides investing in our Forward, Progressing Together” talent pool through internship is not only about growing opportunities. This enables our bottom line, but also young Malaysians to enhance ensuring that we provide equal their employability and employment opportunities and professional skills. promoting holistic growth.
ECONOMICMOST MATERIAL PERFORMANCE MATTER: including contractors, service providers REPUTATION 201-1Economic & Business and consultants are among the group 102-13 Performance of people who support our business operations in delivering quality Maintaining a good reputation and As a responsible corporate citizen properties, products and services to our positive branding are vital to deliver with diversified business activities, our customers. the best quality products and services to corporate objective goes well beyond our customers. We continue to be active the mandate of delivering sustainable Our business policy expects business advocates as we believe that effective profits for our shareholders. This can practices performed by suppliers to be communication with our partners and be seen in the way our reporting has consistent with our sustainability policy. peers essentially gives us the voice to evolved to include more comprehensive We conduct annual assessments on our engage with the wider community, disclosures covering the governance, suppliers’ performance including safety including Government agencies, economic, environmental and social and health, regulatory compliance and regulators and the general public. In aspects of our businesses. quality of service. being connected to the industry, we also keep ourselves abreast of the latest This financial year, the Group generated MARKET PRESENCE industry developments and practices. a net profit of RM418.7 million with 202-2 a value-added distribution of RM701.8 million. As OSK employees constitute one of our key stakeholder groups, we strive For a more comprehensive presentation to nurture them professionally and of our financial results and business promote their personal growth. We are, performance, please refer to our Annual therefore, committed towards providing Report 2019. an inclusive and equal opportunity work environment that integrates people from SUSTAINABLE PROCUREMENT different backgrounds, ethnicity, age This financial year, 102-9, 204-1 groups, languages, physical abilities the Group generated and skillsets. a net profit of Suppliers rank among the most RM418.7 million essential resources in our business We strive to recruit local talents for all our chain, in our efforts to achieve businesses. Our Senior Management with a value-added sustainable development. At OSK, we team comprised all Malaysians during distribution of ensure responsible sourcing, in line the financial year. RM701.8 million with our sustainability approach of ‘Responsible Behaviour’ and to ‘Limit Our Adverse Impact’. Our suppliers
OSK HOLDINGS BERHAD 199001015406 (207075-U) 21 SUSTAINABILITY REPORT 2019 Creating Shared 01 02 03 04 05 06 07 08 09 10 11 Economic Growth
CREATING SHARED ECONOMIC GROWTH
AWARDS & RECOGNITION
We are pleased to be the recipient of various awards during the year as follows:
OSK Holdings Berhad
• National Annual Corporate Report Awards (NACRA 2019) – Certificate of Merit (Annual Report 2018) • HR Asia – Best Companies to Work for in Asia 2019 NACRA 2019 OSK Property
• StarProperty Awards 2020 Corporate Awards – StarProperty All-Stars Award – Best Overall Champion – StarProperty Consumers’ Choice Award Project Awards Best Companies to Work for in Asia 2019 Excellence – Windmill Upon Hills – The Holiday Home Award – Luminari – The Northern Star Award Honours – Timurbay – The Eastern Star Award Merit – Ryan & Miho – The Long Life Award – You City III – The Proximity Award Best Family Friendly Mall • The Edge Property Excellence Awards – Top Property Developers Awards 2019 (Ranked 14th) • Sin Chew Business Excellence Awards 2019 – OSK Property (Property Excellence Awards & CSR Excellence Awards)
Swiss-Garden International
• Swiss-Garden Beach Resort Kuantan Best City Hotel in Kuala Lumpur – Agoda’s 2019 Gold Circle Awards – Asia-Pacific Tourism & Travel (APTTF) Awards Year 2019: Best Family Retreat Destination in Malaysia – Hotel of the Year Awards – Top 100 Luxury Resorts Worldwide 2019: Best Family Beach Resort Asia 2019 • Swiss-Garden Hotel Bukit Bintang Kuala Lumpur – Asia-Pacific Tourism & Travel (APTTF) Awards Year 2019: Best City Hotel in Kuala Lumpur Agoda's 2019 – Experts’ Choice Award 2019 by tripexpert.com (Booking.com) Gold Circle Awards • Swiss-Garden Beach Resort Damai Laut – Hotel of the Year Awards – Top 100 Luxury Resorts Worldwide 2019: Best Beach Resort for Families Asia 2019 • Swiss-Inn Johor Bahru – Agoda’s 2019 Gold Circle Awards Swiss-Garden Hotel • Swiss-Inn Chinatown Kuala Lumpur – Experts’ Choice Award 2019 by tripexpert.com (Booking.com)
Atria Shopping Gallery
• Best Family Friendly Mall – BabyTalk and MamaPapa Readers’ Choice Awards 2019
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 22 Supporting 01 02 03 04 05 06 07 08 09 10 11 Environmental Well-being SUPPORTING ENVIRONMENTAL WELL-BEING
OSK Group’s approach to Among others, we believe environmental management is that our employees, across all captured in our sustainability ranks are in the best position approach to “Limit Our Adverse to implement sustainable Impact”, as well as contribute environmental practices by towards broader efforts in identifying and undertaking mitigating the adverse impacts initiatives that are practical, of climate change and related effective and cost-efficient. In this matters. Accordingly, we continue regard, our construction division to be mindful of our responsibility obtained the ISO 14001:2015 to look at sustainability from a Environmental Management macro perspective and evaluate System to ensure that the delivery how we can play our part as a of ongoing projects comply with responsible corporate citizen. environmental requirements.
OUR APPROACH TOWARDS ENVIRONMENTAL SUSTAINABILITY INNOVATION 103
In contributing towards the goal of sustainable development, we have mapped out OSK believes that innovation serves our environmental approach as follows: as a platform for us to promote environmental protection, while strengthening the Group’s operations Conserving and presence in the industry. We keep natural abreast of the latest technology and resources innovate our processes, where possible, Proactive measures to continuously provide improved taken in various quality products and services to our business operations stakeholders. In July 2019, Olympic Cable introduced a ‘Continuous Preserving the Greening of Business Vulcanisation’ line machine with level- environment Operations: two improvement by changing the hose • Green buildings joint type and modification of overflow • Innovation valve. This practice helps reduce oil waste while carrying out maintenance Reactive measures on the machinery. This measure helps based on reduce oil spill incidents and minimises considerations in scheduled waste at our cable factory. Group activities In ensuring greater operational Greening by Corporate synergy, OSK Property has successfully Initiatives: implemented our "Prop-Con" initiative to • Managing resources at integrate the Property and Construction the workplace teams to deliver improved quality • Waste management standards within the organisation. This • Environmental protection integration affirms the quality assurance and conservation and quality control (“QA/QC”) of our property development projects.
OSK HOLDINGS BERHAD 199001015406 (207075-U) 23 SUSTAINABILITY REPORT 2019 Supporting 01 02 03 04 05 06 07 08 09 10 11 Environmental Well-being
SUPPORTING ENVIRONMENTAL WELL-BEING
GREEN BUILDINGS
The Green Building Index (“GBI”) is an environmental rating system for buildings developed by the Malaysian Institute of Architects and Association of Consulting Engineers Malaysia which promotes efficient building design while taking into consideration the preservation of the environment. We had previously adopted eco-friendly practices in our projects by benchmarking them against the GBI. This year, we are proud that our property development project, "Ryan & Miho", in Section 13 Petaling Jaya, has been awarded the coveted GBI Gold certification. Ryan & Miho, Section 13 Petaling Jaya Artist's Impression
Ryan & Miho was awarded the GBI Gold certification based on the following six design assessment criteria:
• Energy efficiency • Materials and resources • Indoor environmental quality • Water efficiency
• Sustainable site planning and management • Innovation
During the GBI assessment, we excelled in indoor environmental quality, material resources and innovation, where we scored maximum points for the first two criteria.
Supporting the move towards a more efficient construction method to improve the delivery standards of the Malaysian construction industry, our subsidiary Acotec, manufactures Industrialised Building System (“IBS”) pre-cast building components, which offer faster construction time, reduced total cost, improved built quality and Acotec wall panels minimised construction waste generation.
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 24 Supporting 01 02 03 04 05 06 07 08 09 10 11 Environmental Well-being
SUPPORTING ENVIRONMENTAL WELL-BEING
MANAGING RESOURCES AT THE WORKPLACE re-use materials over their entire life cycles. Building upon our previous environmental initiatives, we continue to implement OSK continues to take steps to reduce consumption of efforts to bring the latest technology with value-added energy resources at our corporate and subsidiaries’ premises. efficiency to the forefront of our businesses.
This covers the consumption of electricity and water, We also constantly monitor the progress of our environmental recycling of materials, as well as a systematic approach to initiatives to analyse their effectiveness.
Energy Management Water Conservation
Atria’s sensor-based escalators stop when Our green property projects feature rainwater not in use. harvesting systems that reduce water consumption by 50%.
Atria uses energy efficient LED lights. Water consumption for landscape irrigation has also been reduced by 50% via the use of native and adaptive plants. Atria uses a Building Control System to optimise energy usage efficiency in the building, such as Air Conditioning and Facilities at Atria’s toilets are fitted with sensors Mechanical Ventilation (“ACMV”) and that control water volumes. lighting.
Other energy saving or energy-efficient You Vista has photo and motion sensors amenities at our buildings include: connected to lights and fans in common • Low-flow sink and bathtub faucets, showerheads areas which will automatically switch off and toilets at our hotels. when no one is around. • Dual-flush valves on water closets that provide a full flush and optional half flush. • Lavatory/sink aerators with more restrictive SGI VC’s Melaka property is fitted with alternatives. Variable Refrigerant Flow (“VRF”) air- • Using higher-efficiency plumbing fixtures. conditioning system and solar energy for water heating.
ENERGY 302-4 electricity and fuel usage. We are committed to contributing towards curbing climate change progressively by ensuring We are conscious of the importance of energy efficiency greater energy efficiency and minimising our carbon footprint and endeavour to optimise our energy consumption, where where possible. applicable. The Group’s energy usage comes from both
OSK HOLDINGS BERHAD 199001015406 (207075-U) 25 SUSTAINABILITY REPORT 2019 Supporting 01 02 03 04 05 06 07 08 09 10 11 Environmental Well-being
SUPPORTING ENVIRONMENTAL WELL-BEING
MOST MATERIAL MATTER: Waste Management
DOING IT RIGHT – WASTE MANAGEMENT 306-2 environmental-related activities are shared via our employee portal to promote awareness and participation among In 2019, the Group continued with its recycling campaign that employees. was introduced in July 2018 and renamed it as "Recycling Campaign 2.0". The campaign aims to embrace recycling the Other waste management initiatives include measures right way and to take steps to manage our wastes responsibly, undertaken by Olympic Cable, among which include the as part of the Group’s sustainability effort in addressing waste promotion of safe transportation of scheduled wastes through management at the workplace. the “One-Correct packaging for scheduled waste safe transportation" initiative. In terms of daily operations, we We aim to use the 2,013 kg of recyclables collected in encourage our employees to optimise the use of resources, 2018 as a benchmark to target for the future. We continue such as paper, where applicable. to emphasise the twin acts of the 2Rs, namely, to “Reduce and Reuse” at the source. We collected a total of 2,862 kg At OSK Construction, waste produced during construction (June – December 2019) of recyclables, through our consist of construction waste and domestic waste. In addition partnership with waste management solution provider RODA. to our “Recycling Campaign 2.0”, we also implemented We managed the collection and analysed the effectiveness the “Zero Plastic Campaign” at all our construction sites, of our recycling collection over the course of the campaign where storage and collection of recyclables were carried and took concerted measures to ensure items are properly out regularly. The adjacent chart is a summary of the types recycled by certified end-recyclers. of waste generated at the “Ryan & Miho” project site in Petaling Jaya, Selangor, where 33% of the construction waste The "Recycling Campaign 2.0" was rolled out within our generated was recycled during the year. offices in the Klang Valley, namely Plaza OSK, Atria and SGI VC premises. Details of the recycling campaign including the collection mechanics, type of recyclable items and upcoming
Types of waste generated at the "Ryan & Miho" project site in 2019 (kg)
8,410 25%
RECYCLING CAMPAIGN 2.0
25,780 +42% 75% 2,013 kg 2,862 kg recycled in recycled in 2018 2019 Construction Domestic
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 26 Supporting 01 02 03 04 05 06 07 08 09 10 11 Environmental Well-being
SUPPORTING ENVIRONMENTAL WELL-BEING
PROMOTING ENVIRONMENTAL PROTECTION AND CONSERVATION 103
Biodiversity is vital to maintaining a resilient natural We make it a practice to minimise biodiversity impact by environment as it forms the foundation of the vast array of including it as part of our operations and decision-making. ecosystem services that are intimately linked to our lives. OSK We also extend our support to conservation programmes that is cognisant of the importance of protecting our biodiversity. promote biodiversity.
Swiss-Garden Beach Resort Damai Laut: Giving Nature a Helping Hand with Baby Turtle Release
With support from OSK Foundation, guests at Swiss-Garden suitable for the release of turtle species. Besides ensuring that Beach Resort Damai Laut (“SBDL”) were given an experience the adjacent beach is kept clean and safe from poachers, the of a lifetime as they watched endangered turtle hatchlings resort also organised a two-day exhibition to enhance public being released to the sea, carried out in collaboration with awareness on the importance of marine turtles in the ocean's the Segari Turtle Sanctuary in Lumut, Perak. Located along the ecosystem. The exhibition also served to support Malaysia’s southern reaches of Lumut, SBDL’s pristine white sandy beach ongoing conservation efforts to protect endangered sea turtles. has been identified as one of the natural locations that are
Perak Fisheries Department Director Zaki Mori SBDL guests releasing endangered turtle hatchlings to the sea (forefront in black shirt) with SBDL guests
Contribution to the Victorian Bushfire Appeal
In January 2020, our associate company, Yarra Park City in Melbourne, Australia, the developer of the iconic Melbourne Square project in the Southbank precinct of Melbourne, donated AU$20,000 to the Victorian Bushfire Appeal to support efforts in fighting the unprecedented bushfire disaster that had claimed at least 33 lives along with countless animals, and ravaged more than 11 million hectares of land, forests and parks across Australia. With more than 5,900 homes and buildings burnt, it was one of the most destructive bushfire crises that struct the continent for decades, as yet another indication of the impacts of climate change.
Contributions to the Victorian Bushfire Appeal is expected to provide practical support for impacted Victorians ranging from families who had lost their loved ones, farmers whose premises were damaged by the bushfires, as well as those who had lost their homes during the crisis.
OSK HOLDINGS BERHAD 199001015406 (207075-U) 27 SUSTAINABILITY REPORT 2019 Supporting 01 02 03 04 05 06 07 08 09 10 11 Environmental Well-being
SUPPORTING ENVIRONMENTAL WELL-BEING
MELBOURNE SQUARE Setting a New Standard in Healthy Living
Public park at Melbourne Square Artist's Impression
Sustainability
Melbourne Square, a five-acre mixed- Targeting to achieve 5-Star National Australian Built Environment Rating development project with lush parklands System (“NABERS”) Energy Rating and 5-Star Green Star rating. and green open spaces, is designed and built as a connected, work-live-play precinct created with a holistic approach NABERS is an initiative by the Government of Australia to evaluate the to environmental sustainability, health environmental performance of Australian buildings and tenancies; while Green and well-being. Star is a sustainability rating system for buildings in Australia, initiated by the Green Building Council of Australia. Green Star rating assesses the sustainability Being OSK Group’s maiden foray in the of development projects at all stages of the built environment life cycle. Australian property market, Melbourne Square comprises a total floor space of 364,140 square metres (3,919,600 square feet) and is set to become one of Green Spaces Wellness Centre the largest developments in the Victoria 2 district. The six-tower development 3,745m Targeting complex showcases our commitment to Parklands and green spaces build high quality residential, retail and Gold commercial properties centred on green healthy living. End-of-trip facilities Standard Recognised for its innovative, green The WELL Building Standard was and people-centric design, Melbourne 300+ Square was named as one of the best Bike racks, lockers, gym and yoga developed by integrating scientific and developments in the Asia Pacific, studios and state-of-the-art change and medical research on environmental winning two accolades in the 2019/20 shower rooms, integrated café, etc. health with leading practices in Asia Pacific Property Awards in the building design, construction and ‘Residential High-rise Architecture’ and management. ‘Mixed-use Development’ categories, respectively.
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 28 Creating a Responsible Marketplace & 01 02 03 04 05 06 07 08 09 10 11 Being a Responsible Employer CREATING A RESPONSIBLE MARKETPLACE & BEING A RESPONSIBLE EMPLOYER
OSK recognises the importance of Additionally, OSK invests resources upholding responsible practices and towards maintaining a healthy maintaining quality relationships working environment for our with our employees, communities employees by inculcating a socially and the society. Hence, we strive to inclusive, diverse and positive embed social sustainability into our workplace culture. This is carried core business strategy as part of our out to ensuring progressive long-term value creation. Among organisational growth through the impacts that we continuously targeted measures in talent improve on include upholding management, and safeguarding customer satisfaction across our the safety and health of our various business operations via people at all times. Our societal quality products and services, as impact extends to supporting local well as the ethical treatment of data communities, where we work within our operations. towards ensuring sustainable community development.
MARKETPLACE Subsidiary Certification Description Acotec BS 476: Part 22: 1987 Product Listing Certification MOST MATERIAL MATTER: Quality Management System Manufacturing of Precast Quality (ISO 9001:2015) Concrete Wall Panel Olympic Cable Quality Management System Design and manufacture of Company (ISO 9001:2008) low and medium voltage QUALITY PRODUCTS AND power cables SERVICES 102-43 TUV SUD PSB Quality products and services is among SIRIM QAS International Various product ranges the most critical factors that determine a Jabatan Kerja Raya Malaysia company’s success in today’s competitive Tenaga Nasional Berhad business landscape. It is an intrinsic part OSK Property Quality Management System Provision of building of our value creation that is encapsulated (ISO 9001:2015) construction services into the delivery processes of all our businesses to maintain competitiveness OSK Construction Quality Management System Provision of building (ISO 9001:2015) construction services and long-term sustainability. Environmental Management Provision of construction Our commitment towards quality System (ISO14001:2015) services for building works services and products is exemplified by Sistem Penilaian Keselamatan 5-Star SHASSIC of 87% our certification and compliance with dan Kesihatan Dalam and 90% score for the industry-leading quality standards and Pembinaan (“SHASSIC”) development of Iringan Bayu benchmarks across our business units, as follows: Quality Assessment System for Score of 78% for Windmill Building Construction Works Upon Hill (“QLASSIC”) Swiss-Garden Quality Management System Provision of Hotel International (ISO 9001:2015) Management Service
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In 2019, three of our projects received a QLASSIC score comments and suggestions to allow growth and improvement from the Construction Industry Development Board (“CIDB”) of on the part of the hotel and vacation club. Illustrated Malaysia as a result of continued efforts in maintaining quality below are the results of the survey obtained by SGI and workmanship in our construction process. SGI VC respectively.
QLASSIC is a third-party quality assessment in construction Likewise, we conduct market surveys at our Atria Shopping to evaluate the quality of workmanship and the completion Gallery to obtain customers’ feedback on their satisfaction, of a development project against industry standards. Two shopping needs and expectations. Criteria used in the survey of our property development projects, namely “Windmill are age range, visiting frequency, purpose of visit, main Upon Hills” in Genting Permai, Pahang, and “Luminari” in shopping attraction, rating on public toilet facilities, car park Butterworth, Penang, achieved a QLASSIC quality score of facilities, common corridor facilities, customer service and 80%, respectively, while our “Timurbay” development project outlets in the shopping gallery. The survey is conducted on a in Kuantan, Pahang, recorded a score of 76%. quarterly basis. In 2019, we were rated as “Excellent” and “Good” based on the survey conducted, with the majority Customer satisfaction also ranks high on our delivery priority, of the “Excellent” rating attributed to the customer service where we strive to consistently achieve high levels of approval category. by our guests and customers. At Olympic Cable, we are proud to report that we achieved Our hospitality business through Swiss-Garden International an average score of 4.25 out of 5. Olympic Cable’s customer ("SGI") and SGI Vacation Club ("SGI VC") aspire to survey criteria varied from sales personnel services, accuracy consistently achieve a high level of guest satisfaction with and timeliness of quotation to complaints handling and quality services at our properties. We established an online accuracy of delivery. survey tool providing a simple channel for guests to submit
"Windmill Upon Hills" and "Luminari" received a "TimurBay" received a QLASSIC score of 80% QLASSIC score of 76%
SGI achieved an overall customer SGI VC achieved a total guest service performance score of satisfaction score of 3.45/5 65.1/100
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MOST MATERIAL MATTER: CUSTOMER AND PUBLIC ENGAGEMENT EVENTS Public & Customer Safety Providing a positive customer experience is a crucial part of OSK’s culture of excellence. In upholding high levels of ENSURING A SAFE ENVIRONMENT FOR OUR satisfaction and strengthening our customer relationships, we CUSTOMERS have conducted customer engagement programmes where we created interaction opportunities to share meaningful Atria Promotes a Safer Community through Safety milestones and moments in every step of our customer journey. Campaign In FY2019, we engaged with our customers and the public Atria held a two-day Crime Prevention & Fire Safety Awareness through various engagement sessions. Among the events that campaign aimed at educating the public about preventive were carried out include: measures and better solutions in creating a safer community. • Promoting a safer community through Safety Campaign Launched by ADUN Bandar Utama, YB Jamaliah binti by Atria Jamaluddin, the campaign was also supported by the • Earth Hour Treasure hunt by Atria Malaysia Crime Prevention Foundation, Royal Malaysia • Celebrating early project completion for “Windmill Upon Police (“PDRM”), Bomba, Gabungan Persatuan Peniaga Kunci Hills” and “Luminari” Malaysia and MyTaman, an IoT community app that helps • Introduction to Asset Management services for “Timurbay” deliver greater security in the neighbourhood and promote a customers close knit community. • Corporate cocktail for Swiss-Garden Beach Resort Kuantan clientele • Interval International Workshop for SGI VC members
TALKS ON DEMENTIA THROUGH MEMORY WALK
Atria and the Alzheimer’s Disease Foundation Malaysia (“ADFM”) hosted hundreds of patients living with dementia together with their caregivers to a “Memory Walk” to raise awareness on dementia and the challenge and stigma that surrounds it. This marked the third Memory Walk hosted by Atria, which commemorated the World Alzheimer’s Month (“WAM”) 2019 with a series of activities including a line of informative and educative seminars, talks and healthy activities to allow members of the public to better understand YB Jamaliah binti Jamaluddin, ADUN Bandar Utama dementia. Launched by YB Jamaliah binti Jamaluddin, ADUN (centre) with sponsors of Atria Crime Prevention & Fire Safety Awareness campaign during the launch Bandar Utama assemblywoman, the two-day WAM 2019 event also included a panel discussion where participants and caregivers shared their stories and experiences. With the crime prevention, control and reduction approach, the campaign lined up a series of fun and interactive talk sessions and live demonstrations on useful tips of cybercrime prevention and fire safety.
Memory Walk at Atria
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DATA PROTECTION 418-1 Data Protection Policy, which regulates the protection of data obtained from customers, potential customers, customers and OSK sees the safeguarding of data from misuse, compromise employees of companies working with us. This policy is made or loss as an essential part of our culture of integrity. We available on our portal in both English and Bahasa Melayu recognise that organisational and customer data is an to inform stakeholders about how we collect, manage and important corporate asset and necessitates the implementation use personal data of various parties that maintain a working of effective protection measures to ensure that it remains relationship with the Group. secure, safe and accurate at all times. All our Business Divisions ensure their respective employees As a responsible organisation, the Group and our subsidiaries understand and endorse a Letter of Consent on Disclosure attach great importance to the confidentiality of personal data Clauses for Personal Data to ensure stakeholders’ interests and which is adopted as a working standard to be complied at rights to confidentiality are safeguarded. all times. As for data recovery, we ensure all of our key information In compliance with the Malaysian Personal Data Protection technology systems undergo daily data backup in accordance Act 2010 (“PDPA 2010”), we have established our Personal with our data backup procedures.
Data security and protection measures employed to strengthen our ability to prevent accidental loss, damage or misuse of data and defend ourselves against cyber security threats are as follows:
01 02 Installation and frequent Implementation of updates of firewalls/ password-controlled access anti-virus software on all to all OSK Group's IT system workstations and servers.
07 03 Strict access control to prevent Established policies and guidelines unauthorised entry to the server room on IT security
06 04 Email threat protection to Periodic vulnerability test to scan mitigate phishing attacks the entire network for weakness
05 Additional security configuration on IT system (i.e. Intrusion Detection Systems, Network Address Translation, split DNS etc.)
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MOST MATERIAL MATTER: In addition to the established OSH protocols, the Group Occupational Safety & Health actively manages and supervises the effectiveness of safety and health requirements at both our headquarters and subsidiaries which are guided by our Incident Management HEALTH AND SAFETY Policy. The policy provides a clear definition and approach to 403-1, 403-2, 403-4, 403-5, 403-9, 403-10 incident lodgement and management to minimise the potential adverse impacts to the Group. The policy also outlines the Ensuring Health and Safety at all our project sites is one of roles and responsibilities of the Management and employees our key responsibilities to protecting the safety and welfare in relation to incident management. of our affected stakeholders, which include our employees, contractors and customers. We strive to meet regulatory As part of the Incident Management Policy, we adhere to requirements set under the Occupational Safety and Health Emergency Response Handling Procedures for effective Act (“OSHA”) 1994, where applicable, by continuously management of preparations and responses to emergency improving our safety performance. Our primary goal is to situations at our Atria Shopping Gallery and Faber Towers. foster a healthy work environment that is safe from potential This ensures the safety of our customers, retailers and hazards for all employees, as well as visitors and customers. employees at our properties.
At OSK, occupational health and safety is managed at the In strengthening our preparedness against potential incidents, company and the respective subsidiaries where our practices the Group ensures employees are kept abreast of the latest are benchmarked against legislations and regulations, which Safety and Health information and skills through briefings, include the Occupational Safety and Health Act, Factories trainings and continuous education as part of efforts to ensure and Machinery Act and the Occupational Health and Safety a safe working environment. In 2019, we conducted training Assessment Series. sessions for our employees, subcontractors, and customers where safety and health management tools and guidelines We have also established independent Safety and Health were shared. Committees across our different business divisions to meet the specific needs of each business unit. Our Safety and To upkeep each construction employee’s self-awareness and Health committees are led by the respective division leaders safety competency, we conducted a total of 62 on-the-job supported by an implementation team with a balanced ratio training sessions and 161 Toolbox Meetings to ensure all tasks of 1:1 comprising representatives from the management team are carried out in the prescribed manner. and employees from various departments.
Among the activities carried out by the respective Safety and Health committees include: • Carry out workplace assessments to pre-empt potential hazards; • Conduct periodic safety and health workplace reassessments; • Maintain records on hazard assessments; and • Re-evaluate the suitability of previously adopted safety and health control methods.
We also practise Hazard Identification, Risk Assessment and the Determining Control (“HIRADC”) method as part of our standard Occupational Safety and Health (“OSH”) procedure at OSK Construction, Olympic Cable, as well as Plaza OSK employees underwent a our hospitality chain, SGI. It enables us to plan, introduce and fire drill exercise monitor preventive measures to ensure that potential OSK risks are effectively controlled at all times. At Olympic Cable, we have an Environmental, Health and Safety Policy that guides our environmental, health and safety performance.
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The table below shows the training and briefing sessions conducted by the various business divisions during the year:
No. Training Swiss-Garden International 1 1-Day Briefing by Jabatan Bomba (Manjung/Pantai Remis) 2 1-Day Briefing on formation of OSHA & Emergency Response Team (“ERT”) Committee 3 2-Day CPR & First Respondent Training 4 ERT Training Olympic Cable Company 5 Fire Drill & ERT Training 6 Safe Work Practice Briefing 7 Forklift Safety Training 8 Hearing Conservation Training OSK Construction 9 Tuberculosis Awareness Training 10 Safety and Health Committee Training 11 Basic Scheduled Waste Management Training 12 ERT Basic Training 13 Tool Box Meeting 14 Project Safety Induction 15 Bar bending & Genset Machine Safety Training 16 Signalman for Crane Operations Safety Training 17 Emergency Evacuation Drill & Manual Handling 18 Safety Handling of Fogging Machine 19 Chemical Safety Training 20 Accident Investigation Team Training 21 Evacuation Safety Training 22 Signalman/Flagman Training 23 Hot Work (Welding) Safety Training 24 Training on Safety for Brick Layer and Plasterer Works 25 Construction Waste Management Training Atria 26 Fire Awareness Training & Emergency Drill
OSK continues to work towards zero incident at our workplace. We record all incidents and report them immediately to ensure the necessary mitigation and corrective actions are taken.
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During this period, our business operations continued to run COMBATTING NOVEL CORONAVIRUS (“Covid-19”) 403-6 with minimal disruption, while we did all we could to protect our employees and the community. Some of the measures applied include daily checks to ensure each employee’s well- being and sharing daily updates related to Covid-19 and the MCO. Key areas highlighted include the precautionary measures recommended by the Ministry of Health and the CARING FOR OUR EMPLOYEES’ WELL-BEING AND World Health Organisation, in addition to reminders on the PLAYING OUR PART TO FLATTEN THE CURVE importance of maintaining a healthy lifestyle, practising social distancing and upholding high standards of hygiene. In response to the Covid-19 pandemic that is affecting more than 200 countries and territories across the globe including Malaysia, our series of measures that began as early as late- While the impact of the outbreak and the imposition of MCO January 2020 before the onset of high daily infection rates caused many businesses to come to a standstill, we continued proved successful in protecting our employees and their to assure our stakeholders and customers that the Group’s families from the virus. operations remained fully functional to support their needs during the period. All internal and external meetings and The Group had initiated swift and early response to the correspondences were carried out via video conferencing, Covid-19 threat beginning early February 2020, where emails and mobile messaging. Business Continuity Plan ("BCP") to mitigate impacts from the virus spread was discussed at the Group Management Risk Here is a summary of the key steps we took to mitigate the Committee and presented to the Board Risk Management transmission of Covid-19 before the MCO was announced: Committee on the strategic action plans proposed. This took place when Covid-19 escalated in the People’s Republic of Ensuring health & safety of all employees, customers, China, which led to a multi-city lockdown and subsequent tenants, associates, suppliers and visitors cases detected in Malaysia.
Following the announcement of the national Movement Control Segregated Plaza OSK entrances into two zones, one Order (“MCO”) (18-31 March 2020) by the Prime Minister for tenants and one for visitors via dedicated lifts. on 16 March 2020, we closed our office premises at Plaza OSK and all employees were requested to work from home to mitigate the spread of Covid-19. We further abided by the 2nd Hand sanitiser placed at multiple locations. phase (1-14 April 2020) and 3rd phase of the MCO (15-28 April 2020), as the Government took decisive action to ensure effectiveness in ending the chain of transmission of the virus. Temperature check for all staff and visitors at the Key focus: respective offices. • To ensure the health and safety of all employees and the people they are in close contact with. • To help contain and “circuit break” the transmission of Increased frequency of cleaning and sanitisation Covid-19 through various measures to safeguard our activities, including all parcels/packages received offices, site offices, retail mall, hotels, construction sites, through post and courier. factories, workers’ quarters, etc. • To ensure business continuity despite the closure of our work premises. Staff health advisories issued. Those who were unwell, were not allowed to report to work in the office. Employees’ safety & health is our #1 priority
Breaking the transmission of Travel advisory on high risk countries. Covid-19 is our #1 commitment
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Mitigate and “Circuit break” the transmission of Business Units/ Support Function Groups DATE Covid-19 at our premises Crisis Simulation
OSK Property 11 Mar Group IT prepared Remote Access Functions for all Group Finance 11 Mar Business Units. Group Human Resources 12 Mar Group Corporate Services 6 Mar
Group Finance prepared to facilitate majority OSK Capital 6 Mar transactions via online and softcopy approval. Swiss-Garden International 12 Mar Acotec 13 Mar Group Information Technology 5 Mar Self-quarantine for OSKers who may have had close contact with Covid-19 cases. Here is a summary of the key steps we took to ensure business continuity while curbing the spread of Covid-19 during the MCO: Enhanced cleanliness of workers' hostels, retail mall and factories. Actions Goals During MCO Cleaning for all Continue to be carried out locations at locations where essential Sources and secure face masks for our front liners. services are still operating e.g. Plaza OSK, Atria, etc. Travel ban Applicable to all staff Set up and promoted online team meetings using advisory member. Microsoft Teams and Zoom. Work from home All BUs and SFGs are working from home with no Ensure business continuity for our operations major disruptions except those functions involved in site/factory and hostel. Conducted crisis simulation for BUs and Support GMRC and Senior Management and Function Groups ("SFGs") to prepare for potential workgroups HODs are proactively shut down. meeting to keeping in touch with strategise and all staff members while As part of the simulation, we also tested Atria implement action managing every aspect of and Swiss Garden Residence's office as remote/ plans the business. alternate worksite. Social distancing Social distancing markers implemented, including in office lifts. Five Group Management Risk Committee meetings were conducted to formulate strategic action plans. Active Advices, updates and communication learning guides through with staff e-mail. Group IT assisted in obtaining tools to facilitate Security Ensuring all closed working from home e.g. printers and laptops. premises were properly secured and checked regularly.
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OSK Group ensured that all operations and activities were in Property Investment full compliance with the MCO and guidelines issued by the authorities including the National Security Council, the Human Locations: Plaza OSK, Atria and Faber Towers Resources Ministry and the Ministry of Health throughout the period. • Continued with actions implemented prior to MCO, where necessary. Here is a summary of the measures taken by each business • Building maintenance and security services continued unit during MCO: to support tenants that were providing essential services. Property Development and Construction • Identified areas for cost minimisation during the MCO period, especially usage of utilities. Locations: Kuala Lumpur, Selangor, Negeri Sembilan, Pahang, • Developed rosters for OSKers who were carrying out Pulau Pinang and Kedah. support services and issued official letter from the Company to facilitate movements. • Attended to construction workers’ welfare by • Preparations were in place for further implementation providing food, sanitisation and monitoring the of health-focused measures post-MCO such as social health of the workers. distancing in lifts. • Assessed financial and operational impact and • Close communication with tenants on the latest carried out planning for construction catch-up post- developments through circulars. MCO. • Expanded sales channel to virtual platforms such as Industries Instagram, websites and phone calls. Locations: Nilai, Taiping, Bandar Tenggara and Melaka
Acotec • Factory operation was closed and the premises were secured by the security team.
OCC • Continued to operate at 50% capacity from 18th March to 1st April 2020 with permission from MKN. Factory was closed after 1 April 2020.
OCC continued to operate at 50% capacity during MCO period until 1 April 2020 • Property viewing is carried out through videos. • Planning and discussions for new projects via online communications. • Social distancing measures were implemented. • Workers’ temperature checked and packed food were provided instead of dining at the canteen. • Workers are rostered to carry out regular preventive maintenance and cleaning of the factory.
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Hospitality – Hotels and SGI Vacation Club TRAVEL All business-related travel both domestic and Locations: Damai Laut, Kuantan, Genting Highlands, Sg international was cancelled or postponed. Petani, Johor Bahru and Kuala Lumpur
• All hotels remain closed. WORK-FROM-HOME • Minimal staff on duty. Our office remained open and the business was • Minimal usage of utilities. fully operational. However, we advised those who • Sales activities were performed on virtual platforms. use public transport for work and those with young • Virtual training for SGI VC sales staff. children and elderly at home to work from home. • Continued to engage with travel agents. • Swiss-Inn Kuala Lumpur ("SIKL") and Swiss-Inn Johor Bahru ("SIJB") were included in the list of hotels used MEETINGS by the Ministry of Health for quarantine purposes. All weekly meetings for project, sales and settlement were being held as usual. However, all face-to- face meetings were being replaced with meetings via teleconference and/or video conference.
DISPLAY SUITE Display Suite remained open. However, we abided by the public gathering rule of maximum two people. SIJB exercised social distancing and other precautionary measures SITE VISITS We continue to attend the project site, as needed, Capital Financing until such a time that our contract shut down the site or/and our employees deemed it was unsafe Location: Plaza OSK to visit the site.
• Monitored the credit standing of clients effectively during the current period of uncertainties. PREPAREDNESS In the event of any complete lockdown or isolation, Australian operations - Melbourne Square (“MSQ”) MSQ office was well placed to continue business as project via associate company Yarra Park City usual via technology platform that allows remote operations. • Limited Restriction was implemented since mid-March by the Government of Australia As a responsible employer, we are committed to • Construction site remained open and works were on- safeguarding the health and wellness of all our going employees at all times. As a result of the measures taken above, we are pleased to update that as at 30 March 2020, none of our employees nor their family members have contracted Covid-19.
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OSK FOUNDATION Supporting Malaysia’s Healthcare Heroes
OSK Foundation joined Corporate Malaysia in fighting against Covid-19 by contributing RM500,000 to The Edge Covid-19 Equipment Fund that was initiated by The Edge Media Group. The collected funds were used to purchase much needed medical equipment such as medical grade protective suits, masks, gloves, oxygen concentrators, face shields and ventilators to enable our frontline healthcare heroes to perform their duties safely and effectively.
Just one week after the fund was launched, the fund had started sending 1,000,000 face masks and 35,000 personal protection suits to more than 30 designated hospitals nationwide. In the following week, another 4,000 protective suits and 200,000 were delivered to 20 designated hospitals.
As at 3 April 2020, The Edge Covid-19 Equipment Fund had collected a total of RM13.9 million, while The Edge Covid-19 Healthcare Workers Support Fund raised RM10.0 million, bringing The Edge Covid-19 Equipment Fund contributing the total donations received from medical equipment to a hospital Corporate Malaysia and Malaysians to RM23.9 million.
#FightCovid19 #PrihatinMalaysia #KitaJagaKita #StaySafeStayHealthy Source: The Edge Malaysia - The Week of April 6-April 12, 2020
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DIVERSITY AND EQUAL Workforce by Age Group Workforce by Employment OPPORTUNITIES in 2019 Contract in 2019 401-1, 401-2, 405-1 11% 19% 81% Ensuring a diverse workforce and 39% providing equal opportunities at the 20% workplace are among the mandatory indicators of a responsible employer. In this regard, OSK has allocated significant resources towards inculcating 30% an inclusive culture that understands and Below 30 years Permanent Staff accepts individual differences in age, cultural background, physical abilities 30 - 40 years Non-Permanent Staff and disabilities, race, religion and gender. The Group strongly believes 40 - 50 years that adopting a wide band of inclusion As we continually embrace employee provides us with the advantage of Above 50 years growth and development throughout diverse perspectives and deeper cultural their tenure with the Group, we strive awareness that will in turn contribute to to uphold our employee retention rate, better decision making and value for Workforce by Ethnicity subject to workforce dynamics in the the business. in 2019 respective industries. 14% We have formulated our Diversity Apart from embracing employee and Inclusion Policy that provides a 45% 11% diversity, we also invest in active framework for OSK Group underscoring employee engagement programmes to inclusive and acceptable practices and build a healthy work life balance and behaviour for all employees. In doing develop strong working relationships 30% so, we actively ensure fair employment amongst each employee. We believe and equal treatment of all employees that effective employee engagement Malay Indian across all business divisions in the through a people-driven culture Group. strengthens individual ownership and a Others Chinese sense of belonging to the Group. The Group enjoys a fair level of diversity across age groups, employment type Workforce by Employment Type and ethnicity, reflecting the demography in 2019 of the population where our businesses 3% operate.
Workforce by Gender 54% 43% 2,035 Workforce
Executive
Non-Executive locally hired
1,186 (58%) 849 (42%) Non-Executive foreign hired Men Women
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• To ensure business continuity in the Themed “Jukebox Night Fever”, the MOST MATERIAL MATTER: event that our work premises are event saw close to 800 OSK employees Employee Engagement closed. dressed to the nines in vibrant and sparkly costumes from the 60’s, flowery EMPLOYEE ENGAGEMENT The townhall messages were pieces from the 70’s right up to the PROGRAMMES subsequently cascaded to all employees denim looks favoured by K-pop and boy
within the Group by the respective band groups. Townhall Meetings and Business Unit Heads and Support Employee Surveys Function Group Heads to ensure meaningful engagement with our OSK holds regular engagement sessions workforce. The townhall was among the such as townhalls with its employees measures taken to align our employees to seek their views and feedback on in facing the challenges ahead. a broad range of issues and concerns ranging from the work environment Our Group Human Resources teams also and personal development to company carry out employee satisfaction surveys Jukebox Night Fever performance and prospects. The inputs each year to provide management with received help us better understand their ideas and insights into aspects that views, needs and expectations, thereby could improve employee performance Promoting Fitness at Work allowing a broader consideration and productivity. The outcome of these of diverse opinions in the Group’s surveys was reviewed by Management In December, the Group opened its first decision-making process. with action plans being devised to OSK Wellness & Chillax Zone to all
manage issues that surfaced. employees to promote work-life balance The Group’s first Virtual Townhall was and a healthy lifestyle. Managed by held on 8 April 2020, which saw During the year in review, OSK’s the Building Management Department, a gathering of the Group’s Senior Group-wide engagement index was the 3,845 sq ft Wellness & Chillax Management, Business Unit Heads 75.1% (FY2018: 68.6%). The results Zone is fully equipped with locker and and Support Function Group Heads on are competitive as measured against shower facilities and an array of fitness Microsoft Teams to discuss developments the Global Engagement Index score, equipment including treadmills, weight in the first quarter of 2020 and our which stood at 66% for FY2019. machines, cross-trainers, gym balls, and strategy moving forward. dumbbells. It also doubles as a chillax
lounge for after-work interaction among The virtual townhall relayed important employees. messages on the Group’s performance, updates on the respective business segments, and the proactive measures implemented in relation to the Movement Control Order, including our BCP, to mitigate the various impacts during this exceptionally challenging period.
The three key objectives of our BCP, which was activated prior to the OSK Wellness & Chillax Zone implementation of the Movement Control Order on 18 March 2020, are: OSK Construction townhall
OSK Wellness & Chillax Zone is open • To ensure the health and well-being of daily from Monday to Friday between all employees, as well as the people 7.00 a.m. and 9.00 p.m. that they are in close contact with; OSK Annual Dinner 2019: “Jukebox Night Fever” In addition, weekly Yoga and Zumba • To help contain and “circuit break” classes are held at Plaza OSK to the transmission of Covid-19 through OSK Group’s Annual Dinner is one improve employees’ overall well-being, various measures to protect the safety of our core avenues for employee while providing an avenue for our of our offices, site offices, retail mall, engagement and relationship building employees to relax and de-stress from hotels, construction sites, factories, and serves as a means to strengthen the work. workers’ quarters, and other Group’s core values and culture. The premises; and Group’s annual dinner at The Majestic Hotel Kuala Lumpur was a glitzy affair that created many memorable moments.
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their skills in friendly matches at the KSL Sport Centre Setapak in Kuala Lumpur. The competition evoked a greater sense of unity and better networking among employees beside much fun and laughter.
OSK Wellness & Chillax Zone @ Level 8 Hari Raya Aidilfitri decoration at Plaza OSK
Thrill-Seeking Skytrex Luncheon Talk on “Empowering Adventure Team Building Women's Image for Success” Futsal tournament A thrill-seeking teambuilding session In conjunction with International was organised at Skytrex Sungai Women's Day, a lunch talk on Congkak that gathered around 100 The Laser Battle Challenge "Empowering Women's Image for OSK employees with the objective of Success" was held exclusively for the strengthening our employees’ team ladies of OSK. We invited Lynda Lian, spirit and camaraderie at work. Following good response from the previous Laser Battle challenge, we an Image Consultant from SWET Image organised a second Laser Battle International, to share her insights on Challenge providing an exhilarating personal grooming and tips on wearing adventure and adrenaline-pumping the right attire to project a professional fun at Berjaya Times Square that saw image. Around 100 ladies enjoyed the participation of over 100 OSK the fruitful session on empowerment employees. where the speaker shared on the importance of leaving a memorable and powerful impression on the people Skytrex team building they meet, which could help their career development. Take Charge of Your Personal Safety; During Traveling, Anytime and Anywhere
We hosted a one-hour lunch talk by the Laser Battle challenge Managing Director of Perfect Protection, Ladies of OSK attending lunch talk Michael Chong, who focused on practical preventive measures during Riang Ria Raya Decoration travelling and solutions for road users, Competition & Iftar Get Together Movie Nights with a New self-defense tips for both genders and Experience! the use of personal safety protection The Hari Raya decoration competition, devices. organised during the month of OSK Movie Nights serve as an informal Ramadhan, boosted employee morale get-together event annual event for as each floor (occupied by OSK) in employees to mingle and have fun Plaza OSK was decked in colourful after working hours. The movie nights Hari Raya décor creating a warm saw employees enjoying the screening festive ambience. Seven teams from of blockbuster movie titles, such as various departments showcased their “Marvel Comics Spider-Man: Far From creativity in capturing the colourful Home” and the Disney classic “The Lion Lunch talk on personal safety memories and fun of Hari Raya Aidilfitri King”. with their creative ideas. The highlight of the competition was an Iftar get Solidarity through Sports, Futsal together and a prize giving ceremony Tournament a Success for the winners.
The tournament gathered 72 participants comprising eight male and four female teams from various business Movie Night units and functions who showed off
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 42 Creating a Responsible Marketplace & 01 02 03 04 05 06 07 08 09 10 11 Being a Responsible Employer
CREATING A RESPONSIBLE MARKETPLACE & BEING A RESPONSIBLE EMPLOYER
SGI Vacation Club’s Team Attracting Young Talents at ‘Get to Know Atria’ Scavenger Building & Achiever’s Circle JobStreet MCTF 2019 Hunt Award Night 2019 OSK’s Young Leaders together with our The Scavenger Hunt was organised at SGI VC organised a Team Building & Talent Acquisition (“TA”) team became Atria where teams were given a list of Achiever's Circle Award Night 2019 the Group’s ambassadors during the tasks in two sets of challenges including on 16 and 17 April 2019 at the Broga JobStreet Malaysia Career & Training one in the Party Room, Malaysia’s first Hill Eco Farm Resort in Semenyih. Fair (“MCTF”) 2019. The two-day event interactive party space with innovative The team building event brought 125 held at Mid Valley Exhibition Centre gaming experiences. The employee employees under one roof where saw over 1,000 job seekers visiting the engagement initiative sought to promote they underwent activities such as OSK booth to register their interest for inter-division teamwork across various Photo Hunts, Obstacle Courses, Raft various roles within the Group. Besides OSK business units. Building, Kayak "King", Zumba and getting to know us, booth visitors also Tug-of-War to build rapport, teamwork submitted their resume online and were and comradeship. The fun-filled engaged by our GHR team through Achiever's Circle Award Night 2019, one-on-one discussions. themed "Aloha Hawaii", was held to reward outstanding employees for their excellent contribution to the organisation in 2018.
Scavenger Hunt
JobStreet Malaysia Career & Training Fair 2019
SGI VC team building 2019
OSK Group Finance team building 2019
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CREATING A RESPONSIBLE MARKETPLACE & BEING A RESPONSIBLE EMPLOYER
TALENT MANAGEMENT Employees are provided with ample two talent pipelines – talent identification 404-1, 404-2 opportunities in their career growth, and the Graduate Trainee Programme. given the Group’s continued emphasis on In line with our effort to build sustainable upskilling and knowledge improvement. Efforts on talent identification centres bench strength, we have embarked on As leadership development is a key on assessments to spot potential a structured talent management exercise priority at OSK, we have adopted talents who demonstrate outstanding by focusing on the two following areas: a structured talent framework which performance with high leadership dovetails into our Succession Planning capabilities. The second talent building pipeline. The Talent Management pipeline, the Graduate Trainee Framework is based on a set of key Programme is a 12-month programme business drivers to address capacity which provides all-round exposure to Building up Developing gaps. At the same time, a Talent Council graduate trainees through job rotations Succession Talent was set up to measure our rate of success within their assigned business units. The Management Pipelines in talent acquisition, review existing development programme was based talent initiatives, provide direction and on the “learning journey” concept the necessary resources. The framework incorporating a combination of formal covers all levels of employees with the learning, personal mentoring, coaching initial efforts concentrating on building and on-the-job experience.
AMONG THE ‘BEST COMPANIES TO WORK FOR IN ASIA 2019’
During FY2019, OSK was recognised T.E.A.M is a unique 360-degree employee engagement to team for its strong workplace culture, earning employee engagement survey that dynamics. us the honour of being one of the studies not just how much an employee “Best Companies to Work for in Asia is engaged, but also how they are We dedicate the win to our 2019”. The award, which covered engaged differently in a group 2,000-strong employees who form 12 markets across Asia, including environment, and in response to the backbone of our businesses. The Hong Kong, Singapore, Malaysia and corporate initiatives. recognition was an achievement in Indonesia, was decided by employees how we manage our talents, as we based on an assessment model called, Organised by leading HR publication, continue to improve our workplace for Total Engagement Assessment Model HR Asia, the award covers aspects employees to grow and thrive. (“T.E.A.M”). ranging from corporate culture and
®
Ong Ju Yan, Group Managing Director of OSK (fifth from the right) with the team
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CREATING A RESPONSIBLE MARKETPLACE & BEING A RESPONSIBLE EMPLOYER
MOST MATERIAL MATTER: Training & Career Development
Learning & Development We also launched the "Coach for Peak Performance" for managers within the Group in May 2019. The programme was The basic building blocks of Group-wide Learning & spearheaded by the Group HR department in collaboration Development comprise dynamic self-improvement modules with Development Dimension International Malaysia. in Personal Effectiveness, Interpersonal Effectiveness, and Managerial and Leadership, in line with the OSK Group’s To facilitate effective learning, we have been benchmarking Leadership Competency Framework. our training outcomes since 2016 with a targeted benchmark score of 75%. The evaluation process tracks the learning The Group continues to leverage on internal expertise in our efficacy of employee training programmes and assess effort to groom the next line of leaders with our “Leaders as whether they are aligned with the Group’s strategic goals and Teachers” experiential learning series. We have delivered objectives. 305 job-specific training for all levels of employees, out of which 20% were delivered by senior managers. In 2019, This year, we achieved an Employee Training Satisfaction we implemented an awareness programme on Leadership score of 84%, exceeding our internal the benchmark by nine Competency & Personal Development as a new addition to percentage points. the series.
Interpersonal Effectiveness Personal Effectiveness Managerial and Leadership Skills Targeted to develop knowledge Targeted to develop ability to manage and skills needed to build effective one's self, leading towards Targeted to develop fundamental interpersonal relationships; focusing on self-mastery managerial and leadership skills at positive impact and influence various leadership pipelines
Achieved 305 job-specific Total number of training hours Training training for employees in FY2019 84% Evaluation in 2019 score of 84% 16,590 for training effectiveness
Awareness Drive on Leadership Competency & Personal Development
In recognising the vitality of learning agility, all employees (executives and above) are expected to develop an Individual Development Plan ("IDP") focusing on both leadership and/or technical/functional competencies.
In driving awareness requires the sharing of individual leadership stories, and connect them to OSK's leadership competency Framework which provides useful insights on how best to use it for career and personal development in OSK.
About 92% of our employees have completed their IDP
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IN THE COMMUNITY 413-1
OSK FOUNDATION: MAKING A advocating volunteerism by our DIFFERENCE IN THE COMMUNITY management and staff.
OSK Foundation was incorporated The foundation's key areas of in May 2015 as the philanthropic focus are Education, Community arm of OSK Group. It was Development and the Environment. established to consolidate and We seek to create and provide further enhance the company's more opportunities via high on-going commitment towards impact, sustainable projects contributing to the well-being of that can assist, improve and our community. sustain issues within these areas of focus through grant-giving, Every year, OSK Group allocates partnerships, volunteerism and up to 0.5% of its net profit to programme development. the foundation to assist and promote the causes that we are OSK Foundation is governed by running or have adopted. It is the Board of Trustees ("BOT") the foundation's commitment for chaired by OSK Holding Berhad OSK Foundation the disbursed funds to have the Executive Chairman Tan Sri supported more than strongest impact by ensuring that Ong Leong Huat, RHB Bank 526 beneficiaries with we give effectively and efficiently. Berhad Chairman Tan Sri Azlan Zainol and the President of the a contribution of more Going beyond donations International Strategy Institute than RM1,000,000 associated with charitable giving, and the Economic Club of Kuala in FY2019. the foundation also focuses on Lumpur Tan Sri Dato' Dr Michael giving time and attention through Yeoh.
THREE CORE FOCUS AREAS OF OSK FOUNDATION
Community Development*
• High impact, sustainable projects that can assist, improve and sustain underprivileged communities. Education*
• Education opportunities Environment* for the disadvantaged. • Programmers that can • Improve awareness and assist in advancing provide assistance to educational standards environmental-related for the underprivileged. programmes and organisations.
* The activities/initiatives may overlap in terms of areas of focus
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Under our focus areas, we would like to highlight the work we have done with some organisations and beneficiaries.
EDUCATION: EMPOWERING income backgrounds overcome hurdles Contributing Towards A Better KNOWLEDGE towards attaining quality higher Learning Environment education via personalised one-on-one OSK Foundation believes that education mentoring, training workshops, as well Due to its proximity to Atria Shopping is the most effective driver of change, as as residential camps. The mentors are Gallery, OSK Foundation has been it remains the biggest socio-economic all volunteers who have been scholars sponsoring SK Damansara Jaya equaliser in our society. The Foundation themselves and attended top universities (“SKDJ”) 1’s school infrastructure. adopts the view that when we ensure from around the world. Some of the upgrading works the education is accessible for all, not only Foundation has assisted SKDJ with are we providing them with the tools OSK Foundation was the main sponsor include restoration works for the and means to build a more progressive for the 2018 student cohort, matching school’s cafeteria and toilets, purchase society, but more importantly, we are 31 kids with their assigned mentors. of new tables and benches for the also enabling them and their families to school canteen, as well as two new escape the cycle of poverty. Sparking Interest in STEM cabin classrooms for the Kelas Khas through Chumbaka Sdn Bhd students to ensure that teaching and Inspiring High Achievers (“Chumbaka”) learning is carried out in a comfortable through Teach For Malaysia environment. (“TFM”) The Foundation has tied up with Chumbaka on a three-year pilot project Teach For Malaysia is an independent, with the aim to bridge the digital divide non-for-profit organisation that identifies between urban and rural schools and and trains qualified volunteers to teach train students to achieve higher order with the aim to empower students in high- thinking skills and to ignite their passion need schools and their communities. for Science and Technology in 14 identified high-need schools. SKDJ 1 cabin classroom The Foundation has been sponsoring TFM one-to-two fellows over the past In the programme, children learn by years who will serve as full-time teachers building exciting projects such as The Foundation also made monetary in high-need schools. In addition, on mobile apps, computer games, robots, contributions towards infrastructure an annual basis, a senior personnel Internet of Things (IoT), and 3D structure. enhancement projects in the following within the OSK Group will participate They are then given real-life challenges schools:- in TFM Week, where they will share where they conduct their own research 1. Sekolah Menengah Persendirian motivational and career aspiration talks to turn their ideas into solutions, and Chong Hwa in Sentul, Kuala with a class. share their findings with others. Lumpur; 2. SJK(C) Chinese National in By using technology to solve real-life Kampung Koh, Sitiawan; challenges, children acquire valuable 3. SRJK(C) Kg Baru Mambau, life skills such as problem-solving, Seremban; and communication, and tenacity. 4. Lembaga Pengurus SJK(C) Alor Pongsu in Bagan Serai, Perak.
TFM Week COMMUNITY DEVELOPMENT: ENRICHING THE LIVES OF UNDERSERVED COMMUNITIES Improving Social Mobility Through Closing The Gap OSK Foundation actively contributed ("CTG") to the community’s well-being through active participation in various Closing the Gap is a programme Teachers in Chumbaka training programmes and initiatives to support that helps bright students from low-
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underserved and/or marginalised vandalised areas in the PPR, besides series of Small Business Training and communities. Within this area, the rolling out community activities such Financial Management Workshops for Foundation has worked on: as gotong-royong and recycling underserved women groups nationwide. programmes. 1. Sponsoring the annual cost of Launched in October 2019, the two- Orang Asli teachers' training, day workshop covers every state as well as sponsorship of one of in Malaysia, including Sabah and the Orang Asli pre-schools in Pos Sarawak, to offer comprehensive Musuh, Tapah, Perak (via Persatuan Tan Sri Ong Leong Huat (6th from left) training and mentorship for women who receiving the appreciation plaque from Kebajikan Suara Kanak-Kanak the 7th Prime Minister Tun Dr. Mahathir wish to start their own small businesses. Malaysia ("SUKA")). Mohamad (4th from left) The target is to reach out to over 500 women in the country, including Orang Asli, Orang Sungai and single mothers. Extending A Helping Hand to Hospis Malaysia
OSK Foundation continues to Orang Asli teacher conducting a support Hospis Malaysia in 2019 by class with Orang Asli children sponsoring activities linked to Hospis Malaysia’s “Speak-up – Because I WIM entrepreneurial workshop for Matter” campaign. We also supported underserved women groups 2. Sponsorship of Persatuan Kebajikan Hospis Malaysia by taking part in the Kanak-Kanak Kajang’s ("PKKKK") Hospis Malaysia Treasure Hunt as well tuition teacher's fees and meal as the Palliative Care Awareness Month Celebrating "Gifts of Hope" with programmes for children from in an effort to enhance awareness on the Less Fortunate underprivileged or broken family the importance of palliative care in backgrounds. Malaysia. OSK Foundation’s "Gifts of Hope" programme was set up to provide In conjunction with the Palliative Care opportunities for OSK employees to Awareness Month, the Foundation give back to society and to encourage together with Atria, hosted a “Paint a them to participate in volunteering Brighter Future” fundraising drive to activities. Gifts of Hope contribution to help spread awareness about palliative PKKKK single mothers care among the public. Under this programme, OSK employees help to fulfil the wishes of occupants from selected homes/shelters through 3. Scholarships for identified students the “Wish Board” displayed at the at Kolej Universiti Tunku Abdul Plaza OSK lobby in the weeks leading Rahman. up to major festive seasons celebration.
OSK Property Supports Dasar Komuniti Negara(“DKN”) Paint a Brighter Future OSK Property is proud to be part of the DKN initiative or the National Community Policy. As an initiative Empowering Women through under the National Housing Policy 2.0, Entrepreneurial Trainings and OSK Property is committed to improve Workshops Nationwide the living environment of the residents of Program Perumahan Rakyat (“PPR”) During the year, OSK Foundation has A Gift of Hope Christmas party Jalan Thamby in Butterworth, Penang partnered with the Women's Institute by carrying out repainting activities at of Management ("WIM") to hold a
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HELPING THE UNDERSERVED IN THE COMMUNITY 413-1
SERVING THE NEEDS OF THE campaign at Sekolah Rendah Jenis Swiss-Garden Beach Resort COMMUNITY – INITIATIVES BY Kebangsaan (“SRJK”) (C) Kampung Damai Laut (“SBDL”) Raised BUSINESS UNITS Baru Mambau to provide nutritious Funds for Charity meals for the school’s students, in In keeping with our integrated support of the Healthy School Canteen SBDL held its 2nd edition of the 10km sustainability approach, businesses Management Guide by the Ministry of Charity Fun Run, in aid of the National under OSK Group also played a role Education Malaysia. Cancer Society Malaysia (“NCSM”). in helping the local communities where The fun run raised RM14,700, which they operate. was channelled to NCSM to provide quality medical care for Malaysian A New Kindergarten cancer patients. Almost 400 participants took part in the Charity Fun Run at OSK Property and OSK Foundation Swiss-Garden Beach Resort Damai Laut. joined hands with KCC Paint Malaysia and Artzland Studio to breathe life into Students of SRJK (C) Kampung the walls of two old blocks that were Baru Mambau, Negeri Sembilan re-adapted for use as a kindergarten. enjoying their lunch box Together with school teachers and students of SJKT Ladang Shanghai in Seremban, 70 volunteers from Recycling Workshop For The SBDL Charity Fun Run OSK Property and OSK Construction Young transformed the deserted buildings into a bright and lively kindergarten with SGI VC organised an educational EPIC Merdeka Build 3.0 beautiful mural designs. recycling workshop with Rumah Victory - A Memorable Merdeka Children & Youth Home at Taman OUG Celebration for Orang Asli in Kuala Lumpur to impart the benefits of Family recycling, utilising recyclable materials and converting them into meaningful EPIC (Extraordinary People Impacting artworks. Community) is a social enterprise. EPIC Homes is EPIC's flagship initiative where volunteers come together to build a home for a family in rural locations. This home is built from scratch. Volunteers from OSK Property and OSK Construction beautifying the walls with mural painting together with the A total of 25 volunteers from OSK took school's students and teachers part in building a brand-new home SGI VC volunteers at Rumah Victory comprising a living room, foyer, kitchen and two bedrooms for Petarick and his The school also received new appliances family of four. and fixtures to create a conducive teaching and learning environment for the teachers and students.
Healthy Meals For Primary School Students
In an effort to enhance the living conditions of the Mambau community within the Iringan Bayu neighbourhood, The Foundation together with OSK Property carried out a healthy eating EPIC Merdeka Build 3.0
OSK HOLDINGS BERHAD 199001015406 (207075-U) 49 SUSTAINABILITY REPORT 2019 What’s 01 02 03 04 05 06 07 08 09 10 11 Ahead?
WHAT’S AHEAD?
As we strive to provide sustainable value Five Most Material Matters To Drive Sustainability creation to our stakeholders, we also continuously work towards instilling a Following the completion of our second Materiality Assessment culture of sustainability at every level of the this year, the SWG had concluded that five most material organisation to ensure the future viability of matters (distilled from our 20 material matters) shall anchor our business, people and the planet. And in the Group’s sustainability journey and emphasis for FY2020 doing so, we are constantly vigilant of our and beyond. environmental footprint and continuously Quality Products develop new ways to minimise impacts where and Services possible, without compromising the quality of our products and services. It is our belief that the strong partnerships and the legacy of trust that we have built with our stakeholders will Innovation Talent Management continue to inspire us to pursue sustainable growth in the years ahead. Five Most Material Matters Here are among the next steps we will take to push the envelope on sustainability, as we move forward in our path to create a brighter future for all our stakeholders: Ethics and Integrity Health and Safety
Below is a description of each of the Group’s most material matters and the views that we hold on how it will add further value to OSK Group in the coming years:
MOST MATERIAL SUSTAINABILITY IMPACT DEFINITION MATTERS FY2020 AREAS Ethics & Integrity • Governance • Values, principles, standards, and norms of behaviour of OSK Group are critical to the Company’s business sustainability to promote social and economic growth. Innovation • Economic • Efforts by OSK Group to support business advancement and remain • Environment competitive in the market by incorporating innovative working tools and technology-centric applications in its business operations. • OSK Group to adopt an innovative approach to environmental conservation and protection to broaden its impact and efficiency.
Quality Products • Economic • OSK Group’s continuous commitment to delivering quality products and Services • Social and services to our stakeholders, and customers in particular.
Talent Management • Social • OSK Group to heighten its efforts in acquiring and developing its talent pool. This includes strategies undertaken in recruitment, talent development and training, engagement and retention of our employees. Health and Safety • Social • OSK Group continues to manage health and safety impacts across the life cycle of a product or service, particularly with regards to our customers and the occupational health and safety for our employees.
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WHAT’S AHEAD?
STRENGTHENED SUSTAINABILITY GUIDING • Mapping our five most material matters against our key PRINCIPLE sustainability impact areas.
Following the introduction of the Group’s Sustainability The enhanced “Sustainability Guiding Principle” shall Guiding Principle as highlighted in our Sustainability Report form a comprehensive framework that becomes the basis 2018, SWG had improved it further by: of our sustainability decision-making and direction as we move forward to realise our aspiration to be a sustainable • Outlining the function of Group ERM as part of our organisation in the coming years. decision-making process to mitigate risks, capture new opportunities and deliver positive Economic, Environment, Social and Governance impacts from the Group’s operations; and
NEW SUSTAINABILITY GUIDING PRINCIPLE FOR FY2020 AND BEYOND
STAKEHOLDER KEY SUSTAINABILITY GROUPS IMPACT AREAS Five Most Material Matters OSK Group’s Vision & Business and Industry Strategy Partners ° Talent Management People/Talent Community
Customers Sustainability Top Management Focus Areas: ° Ethics & Integrity and Employees Business and ° Quality Products & • Governance Customers Services Government and • Economic ° Innovation (Business) Regulators • Social • Environment
Media
Shareholders and ° Health & Safety Investors Community ° Innovation (Environment) Supply Chain Group Partners Enterprise Risk Management
As we approach year 2020 that marks the arrival of a new decade, we look forward to making another meaningful step in our journey towards sustainable growth.
OSK HOLDINGS BERHAD 199001015406 (207075-U) 51 SUSTAINABILITY REPORT 2019 GRI 01 02 03 04 05 06 07 08 09 10 11 Index
GRI INDEX TABLE
GRI Standard Disclosure Section GRI 102: General Disclosure 102-1 Name of the organization About This Report 102-9 Supply chain Sustainable Procurement 102-13 Membership of associations Reputation 102-16 Values, principles, standards, and norms of behaviour Ethics and Integrity 102-17 Mechanisms for advice and concerns about ethics Ethics and Integrity 102-18 Governance Structure Sustainability Governance 102-19 Delegating Authority Sustainability Governance 102-32 Highest governance body’s role in sustainability reporting Sustainability Governance 102-40 List of stakeholder groups Stakeholder Engagement 102-42 Identifying and selecting stakeholders Stakeholder Engagement 102-43 Approach to stakeholder engagement Stakeholder Engagement Quality Products and Services 102-44 Key topics and concerns raised Stakeholder Engagement 102-46 Defining report content and topic boundaries Material Sustainability Matters 102-47 List of material topics Material Sustainability Matters 102-50 Reporting period About This Report 102-52 Reporting cycle About This Report 102-53 Contact point for questions regarding the report About This Report 102-55 GRI content index GRI Index Table GRI 103: Management 103-1 Explanation of the material topic and its boundary Driving Sustainability Approach Implementation Platform 103-2 The management approach and its components Driving Sustainability Implementation Platform Innovation GRI 201: Economic Performance 201-1 Direct economic value generated and distributed Economic Performance GRI 202: Market Presence 202-2 Proportion of senior management hired from the local community Market Presence GRI 204: Procurement Practices 204-1 Proportion of spending on local suppliers Sustainable Procurement GRI 205: Anti-Corruption 205-2 Communications and training about anti-corruption policies and procedures Anti-Corruption GRI 302: Energy 302-4 Reduction of energy consumption Energy GRI 306: Effluents and Waste 306-2 Waste by type and disposal method Waste GRI 401: Employment 401-1 New employee hires and employee turnover Diversity and Equal Opportunities GRI 405: Diversity and Equal 405-1 Diversity of governance bodies and employees Diversity and Equal Opportunities Opportunities GRI 404: Training and Education 404-1 Average hours of training per year per employee Talent Management 404-2 Programs for upgrading employee skills and transition assistance programs Talent Management GRI 403: Occupational Health 403-1 Occupational health and safety management system Health and Safety and Safety 403-2 Hazard identification, risk assessment, and incident investigation Health and Safety 403-4 Worker participation, consultation, and communication on occupational Health and Safety health and safety 403-5 Worker training on occupational health and safety Health and Safety 403-6 Promotion of worker health Health and Safety 403-9 Work-related injuries Health and Safety 403-10 Work-related ill health Health and Safety GRI 413: Local Communities 413-1 Operations with local community engagement, impact, assessments, Community Engagement and development programs GRI 418: Customer Privacy 418-1 Substantiated complaints concerning breaches of customer privacy Data Protection and losses of customer data GRI 419: Socioeconomic 419-1 Non-compliance with laws and regulations in the social and economic area Regulatory Compliance Compliance
OSK HOLDINGS BERHAD 199001015406 (207075-U) SUSTAINABILITY REPORT 2019 52 OSK HOLDINGS BERHAD 199001015406 (207075-U) (Incorporated in Malaysia) 21st Floor, Plaza OSK, Jalan Ampang, 50450 Kuala Lumpur, Wilayah Persekutuan, Malaysia.
Tel. No. : (603) 2177 1999 Fax No. : (603) 2026 6331
www.oskgroup.com
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