At WZ Satu Berhad Group (‘the Group’), sustainability has always been a part of the Group’s culture as we strive to achieve continual financial performance and uninterrupted growth. The Group is cognisant of the need to grow its businesses in a sustainable and responsible manner. The Group remains committed to build on the efforts in sustainability and progress made in the previous year.
This Sustainability Statement is produced pursuant to Bursa Malaysia Securities Berhad’s (“Bursa Securities”) Main Market Listing Requirements. It describes our performance on non-financial metrics for the period from 1 September 2018 to 31 August 2019 covering our initiatives on economic, environmental and social (‘EES’) related sustainability matters.
The Board acknowledges the importance for the Group to adopt and continuously practise good corporate governance throughout the Group’s 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’s 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 Group’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 to provide them with useful information about the Company and its subsidiaries. Moving forward, we will continue working to address the challenges and opportunities identified through the feedback received from our stakeholders.
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 sustainable businesses to continue its contribution to Malaysia’s economic development. We endeavour to inculcate sustainability within our core operations, in pursuit of creating long-term value for our stakeholders.
The sustainability of our subsidiaries’ businesses is vital for growth and continuity. The awards and accolades received are testament of our continuous strive to deliver the best of products, services and value to our stakeholders while creating positive economic impact and contribution to the community where we operate. For example, our oil and gas division (‘WZS Misi Setia Sdn Bhd’) has obtained multiple awards in its business operation since 2002. In 2019, the division has been awarded the 2019 Winner’s Circle, an award by Baker Hughes, a GE Company (‘BHGE’), in recognition and appreciation for exceeding the sales target plan.
As a Group, we are accountable to our investors. We strive to enhance our financial performance continuously to deliver value to our investors and 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, customers or other parties having business dealings with the Company.
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, embezzlement, illegal, immoral or fraudulent activities, which will affect the business and image of the Group.
Customer engagement is one of the key factors to grow and 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, adherence to continuous improvements and quality standards all the time.
Our civil engineering & construction division (‘WZS Binaraya Sdn Bhd’) and oil & gas division are certified to ISO 9001:2015 based on our customer-centric quality management system. This certification further evidence our commitment towards continual improvement that aims to reduce risks and increase effectiveness.
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 our environmental performance by implementing self-regulation practices based on a set of environmental mainstreaming tools, introduced by the Department of Environment (‘DoE’) under the Guided Self-Regulation (‘GSR’) program.
Our civil engineering and construction division have been involved principally in Malaysia on various civil engineering and infrastructural projects.
This division is supported by a strong and highly experienced management team comprising people with a wealth of technical knowledge and experience on handling major projects combined with the technology to enable it to undertake various complex projects. We are committed to contributing positively to the construction industry, providing innovative solutions and construction services in a safe and responsible manner via our environmental policy commitment.
In 2019, there was no incidence of non-compliance with laws and regulations and we endeavour to maintain this track record.
The Group’s corporate social responsibility activities are continuously guided by its firm belief that it can contribute positively to society as a caring and responsible corporate entity. A sustainable business is one that enriches its people and the communities in which it operates in. We organise activities (such as badminton and futsal) to promote a healthy lifestyle for employees while we celebrate festivities and foster relationships 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 strongly believe that innovative solutions are developed through interaction amongst employees from different background, knowledge and experiences.
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 practice, 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. As at 31 August 2019, our total workforce currently stands at 433.
The employees are also provided with adequate welfare benefits such as medical, hospitalisation and personal accident insurance coverages.
Occupational Safety and Health
We are aware that the nature of our diversified businesses expose our employees to occupational health and safety risks. Health and safety violations could result in fines and/or stop-work orders. We take pride in our achievements towards maintaining high standards on occupational health and safety measures to ensure compliance with statutory and regulatory requirements. The Group places high importance on the health and safety of its employees and strives to maintain a work place that is safe, 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 illnesses at project sites and workplaces.
Our subsidiary, WZS Misi Setia Sdn Bhd 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 includes identifying, assessing and controlling risks to ensure business sustainability. As part of our sustainability initiative, we have tracked our manhours worked without Lost Time Injury (‘LTI”), and have included the results in this Sustainability Statement. As at 31 August 2019, we have achieved 15,970,696 manhours worked without LTI since 2006.
The Group believes in creating a strong safety culture and places employees’ and workers’ safety at the forefront. In 2019, we have achieved our target whereby there are no reported fatalities in our workplace. The Group aims to continue to achieve this target in the forthcoming year.
WZS Misi Setia Sdn Bhd has also participated in the ‘Workplace Accident Free Week (WAFEW) 2019’ programme organized by Department Of Occupational Safety And Health, with the aim to promote and increase awareness on ‘Preventive Accident Culture’ at the workplace.
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 where needed, to attend job related workshops, training sessions and seminars. Trainings may be in the form of internal, external and on-the-job trainings.
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. Our subsidiary, WZS Misi Setia Sdn Bhd has participated in a ‘Fun Walk’ in collaboration with NASOM (‘National Autism Society of Malaysia’) as part of its CSR activity.
The Group continues to offer internship programmes by providing positions to fresh graduates after completing their tertiary education.
We recognise that more could be done in sustainability efforts in creating positive impacts on economic, environmental and social aspects. The Group shall continually seek for new opportunities to realise our sustainability commitment and roadmap.