Sustainability is becoming a key component for companies to promote value creation, and demand for increased transparency on listed companies’ economic, environment and social (‘EES’) practices have been growing among investors. At WZ Satu Berhad Group (‘the Group’), sustainability has always been a part of the Group culture as we strive to achieve continual financial performance and uninterrupted growth. Recognising the relevance of sustainability in our business values, our statement on sustainability aims to illustrate our strategic approach to address sustainability challenges in contributing towards the betterment of the business, environment and society.
We began our identification and information gathering phase on a general level, in the broad categories of economic, environmental and social factors to help us understand our position and to what extent efforts have been taken towards sustainability. We have also determined areas considered material to the Group in order to identify further potential initiatives towards addressing sustainability risks and implementing sustainability opportunities.
The annual report 2018 represents our first inclusion of the Sustainability Statement in accordance with the Bursa Malaysia Securities Berhad’s Main Market Listing Requirements. It describes our performance on non-financial metrics for the period from 1 September 2017 to 31 August 2018 covering our initiatives on economic, environmental and social related sustainability matters.
The Board acknowledges the importance for the Group to adopt and continuously practise good corporate governance throughout the Group operations to ensure accountability and transparency, as a fundamental part of discharging its responsibilities to protect and enhance shareholders’ value and financial performance of the Group.
Our Group sustainability strategy is determined by our Board of Directors, whom provides oversight of our corporate sustainability policies and performance. Senior Management oversees the implementation of the organisation’s sustainability approach and ensures that key targets are being met. The respective division management head are responsible for identifying, evaluating, monitoring and managing EES risks and opportunities directly.
The Group recognises the importance of effective communication to ensure that our stakeholders understand our business, governance, financial performance and prospects. We define our stakeholders as those impacted by our activities and projects, who have direct and indirect involvement and whose interest may have positive or negative consequences due to our activities and projects.
Our website, which is regularly updated, is used to promote and facilitate communication with our stakeholders and provide them with useful information about the Company and our subsidiaries. Moving forward, we will continue working to better understand the requirements and needs of our stakeholders and to address the challenges and opportunities identified through the feedback received.
KEY SUSTAINABILITY MATTERS
The following is the Group’s identified material sustainability matters. Through our materiality assessment, we have identified the key sustainability matters as outlined in the table below.
The Group is principally involved in the business of civil engineering and construction, oil and gas, mining and manufacturing. Through the Group’s strong order book, it has created employment opportunities for the Malaysian people. The Group aims to maintain a sustainable business to continue its contribution to Malaysia economic development. We endeavour to inculcate sustainability within our core operations, in pursuit of creating long-term value for our stakeholders.
The financial performance and measures to ensure the economic sustainability of the Group are elaborated in the Management Discussion & Analysis section as set out in this Annual Report.
Anti-Bribery and Anti-Corruption
The Group is committed to the values of transparency, integrity, impartiality and accountability in the conduct of its business and affairs.
WZ Satu Berhad enforces a “No Gift” policy through its Code of Conduct. Directors and employees are not permitted to solicit gifts or personal favours from contractors, sub-contractors, suppliers, consultants, bankers, dealers or customers or other parties having business dealings with the Company, whether actual or potential, regardless of value.
Our whistle-blowing policy is established with the aim of providing a structured mechanism for employees and other stakeholders to report any concerns on any suspected or wrongful activities or wrongdoings. These refer to any potential violations or concerns relating to any laws, rules, regulations, acts, ethics, integrity and business conduct, including any violation or concerns relating to malpractice, illegal, immoral, embezzlement and fraudulent activities, which will affect the business and image of the Group.
Customer engagement is one of the key factors to grow, sustain our business and for us to remain competitive. We always relate quality with customer satisfaction and continuous improvements. Therefore, we emphasise on customer satisfaction and adherence to continuous improvements and quality standards all the time.
Our civil engineering and construction division has obtained its quality standard recognition, achieving its ISO 9001 certification since year 2012 and has upgraded its ISO quality management system certification to the latest edition of ISO 9001:2015 on 15 May 2018 emphasizing in customer satisfaction and continual improvement via the process approach and risk based thinking concepts. Customer feedback via customer satisfaction survey exercise serves as part of our commitment towards customer engagement. The certification above is a testament to our continuous improvement in sustainability efforts for quality management system as well as our assurance of conformity to customers and applicable statutory and regulatory requirements.
In the field of environmental stewardship, we continued to demonstrate our commitment to conservation through emphasis on managing our resources – reducing waste, practising energy efficiency and introducing initiatives to reduce emissions throughout our operations. Our top management also demonstrated their commitment through establishing a separate Environmental Policy, which stated our commitment to minimize the environmental impact of our activities, comply to all applicable laws and regulations and communicate our commitment to our stakeholders.
We are monitoring the environmental performance through the Guided Self-Regulation (GSR) introduced by the Department of Environment (DoE).
Our civil engineering and construction division have been involved principally in Malaysia on various structural and civil engineering infrastructural projects.
This division is supported by a strong and highly experienced management team comprising people with a wealth of technical experience of handling major projects and possessing advanced machinery to enable it to undertake various complex projects. We are committed to contributing positively to the construction industry, always providing innovative solutions and construction services in a safe and responsible manner via our environmental policy commitment.
The Group’s corporate social responsibility activities are continuously guided by its firm beliefs that it can contribute positively to our society as a caring and responsible corporate entity. A sustainable business is one that enriches its people and the communities which they operate in. We actively organise activities (such as badminton and futsal) to promote a healthy lifestyle for employees while we celebrate festivities and foster relationship amongst employees during our annual dinners and families’ day events.
We reach out to society via our philanthropic and corporate social responsibility activities, aimed at the less fortunate where we can make a difference and our employees can participate to give back and enrich themselves in the process.
Employment Diversity and Equal Opportunity
Building and retaining talent are both critical in growing the Group as the continuous growth of the Group needs talented employees. Having a diverse workforce with equal opportunity regardless of age, race and gender is one of the ways to build and retain talent.
We value our employees as they are key to competitive success in the marketplace which is vital for business sustainability. As part of the Group hiring practise, we do not discriminate against any race, gender or minorities. Although we emphasise on equal employment opportunity, we also stress that candidates are only hired based on suitability and competency. The employees are also provided with adequate welfare benefits such as medical, hospitalisation and personal accident insurance coverage.
Occupational Safety and Health
We are aware that the nature of our business exposes our employees to occupational health and safety risk. Health and safety violations could result in fines or stop-work orders. We take pride in our achievement towards maintaining high standards on occupational health and safety measures to ensure compliance with statutory and regulatory requirements. The Group places importance on the health and safety of its employees and strives to maintain a work place that is safe and risk-free and are continuously working towards cultivating a strong health and safety culture in the workplace. Across our operations, we maintain a safe and healthy working environment by implementing key measures to prevent injuries, fatalities and occupational illness at project sites and workplace.
Our subsidiary, WZS Misi Setia is certified to ISO 9001:2015 (since 2003) and OHSAS 18001:2007 (since 2010) by an accredited certification body, AJA EQS Certification (M) Sdn Bhd. We have a formal process for risk management, which include identifying risk, assessing risk and controlling risk to ensure business sustainability. As of 28 Sep 2018, we have achieved 14,889,160 manhours worked without LTI since 2006. Our aspiration is always for zero incidents, and it is sustained by our safety excellence culture. In 2018, we have achieved our target and there are no reported fatalities in our workplace. The Group aims to continue to achieve its target in the forthcoming year.
In 2017 and 2018, our civil engineering and construction division has successfully achieved two five (5) star score in Safety and Health Assessment System in Construction (SHASSIC), awarded by CIDB Malaysia for two involved highway projects as follow:
Training and Education
We believe in training and development of our employees, who are undoubtedly our most valued assets. We invest in our employees, so that they could grow professionally and achieve their full potential. It is imperative that our employees keep abreast of the latest developments in their respective professional fields.
The Group offers a development platform to allow staff to grow both professionally and personally. To equip new hires with relevant skills and knowledge, the Group offers training programme for new employees. Continuous training are also provided to existing employees of the Group. Employees are assigned, on an ongoing basis when needed, to attend job related workshops, training sessions and seminars. Trainings may be in the form of internal, external and on-the-job training.
We engage with local communities through education, project liaison and support them through charitable work, sponsorship and other support initiatives. Our efforts in undertaking Corporate Social Responsibility (‘CSR’) are part of our commitment and mission in managing our business responsibility towards ensuring all the stakeholders have benefited in one way or another.
We continue to play our part as a responsible corporate citizen and discharging our social responsibilities through active participation in CSR programs. The Group offers internship programmes by providing positions to interns for them to complete their tertiary educations.
We recognise that more can be done in sustainability efforts in creating positive impact on economic, environmental and social aspect. The Group shall continually seek for new opportunities to realise our sustainability commitment and roadmap.