SUSTAINABILITY
STATEMENT
PRESERVE
OUR NATURE
Maxland Berhad (“ML” or “The Group”) has
steadfastly committed to being a responsible
corporate citizen by embedding sustainable
practices across all facets of our operations.
From our upstream activities in sustainable
forest
management, reforestation, and
meticulous harvesting planning, to our
downstream processes of manufacturing
plywood, sawn timber, and moulded timber,
we adhere to the highest standards of
sustainability and global certification.
ABOUT THIS
STATEMENT
Our Sustainability Statement, an integral part of our Annual
Report, reflects our ongoing dedication to sustainability
and is rigorously reviewed by our Board of Directors. This
commitment ensures that we remain at the forefront of
sustainable practices, delivering value to our stakeholders
while preserving natural resources for future generations.
Scope and Basis of Scope
In line with Bursa Malaysia Securities Berhad’s Sustainability
Reporting Guide, ML’s sustainability framework is built on a
comprehensive evaluation of economic, environmental, and
social risks and opportunities. This framework is intricately
aligned with ML’s corporate governance principles and
social responsibilities, ensuring that sustainability is
embedded in every aspect of our operations.
To further solidify our commitment to sustainability, ML is
formalising a dedicated governance structure. This initiative
will oversee and drive our sustainability agenda, ensuring
that our practices not only meet but exceed regulatory
requirements and stakeholder expectations. By doing so,
we aim to create long-term value for our stakeholders while
contributing positively to the environment and society.
Reporting Framework and Standard
This Statement has been meticulously prepared in
accordance with the guidelines set forth in Bursa Malaysia
Securities Berhad’s Sustainability Reporting Guide 3rd
Edition and is fully aligned with the Global Reporting
Initiatives (GRI) Standards. Our approach is in harmony with
the International Integrated Reporting Framework and the
Integrated Thinking Principles of the IFRS Foundation,
as well as the United Nations Sustainable Development
Goals (UNSDGs). Furthermore, we have enhanced the
transparency of our climate-related financial disclosures
by adopting the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD).
Feedback
We welcome and encourage our stakeholders to provide
feedback on this Statement and the issues covered. Please
visit our website at https://www.maxlandbhd.com/ for
more information.
ABOUT THE COMPANY
With over 25 years of industry experience, ML is recognised as
a pioneer in sustainable timber management in Malaysia. We
manage 28,051 hectares of forestland under the Sustainable
Forest Management (SFM) regime, ensuring minimal
environmental impact through Reduced Impact Logging (RIL)
techniques. Our downstream operations are equipped with
state-of-the-art machinery, enabling the production of high
quality plywood and timber products that meet stringent
international standards, including Japanese Agricultural
Standards (JAS), California’s Air Resources Board Phase 2
(CARB P2), United States Environmental Protection Agency
(EPA), and Sabah Timber Legality Assurance System (TLAS),
Type 6 product certification awarded by the Programme for
the Endorsement of Forest Certification (PEFC) certifications.
Our commitment to sustainability, which is driven by the collective efforts of our
people – including our employees, contractors, shareholders, partners, and the
communities in which we operate, extends beyond environmental stewardship.
We are dedicated to fulfilling our purpose of making a positive impact on
climate, nature, and people. We do this by actively invest in local communities by
providing employment opportunities, infrastructure development, and training
programmes, fostering economic growth and improving livelihoods. ML also
emphasises waste management and recycling, wood waste supplied to boiler
to generate steam/heat for drying of veneer and incorporating sustainable
practices into our manufacturing processes. As we expand our business through
diversification and new ventures, sustainability remains at the core of our strategic
vision.
ML’s Purpose and Values
ML is dedicated to enhancing lives through sustainable resource development. Our purpose drives our actions, underpinned
by our organisational culture and core values. We are committed to responsibly managing resources, safeguarding biodiversity,
and creating lasting positive impacts on nature and people. Responsible business conduct is the cornerstone of ML’s long
term value creation.
Sustainability
Integrity
Innovation
Community
Transparency
Sustainability
Commitment to environmentally
responsible practices that ensure the
continuity of natural resources.
Integrity
Upholding the highest ethical
standards in all our operations and
interactions.
Innovation
Continuously
seeking
and
implementing creative solutions for
sustainable development.
Community
Fostering strong relationships with and providing support
to the communities in which we operate.
Transparency
Maintaining openness and accountability in all business
practices.
SUSTAINABILITY STRATEGY
ML’s business strategy prioritises sustainability,
emphasising the importance of conducting our
everyday business in a responsible manner, as we
continue to work towards transforming the future for
the better. Continued investment in climate, nature,
and sustainable development is crucial for achieving
this objective.
In today’s business environment, companies like
ML are under increasing pressure to tackle global
challenges such as climate change, biodiversity loss,
and social inequality. Stakeholders, including investors,
customers, and regulators, are now expecting
businesses not only to minimise their negative impacts
but also to actively contribute to solutions for these
pressing issues. This growing expectation underscores
the need for ML to integrate sustainability into every
aspect of its operations, from sustainable forest
management to ethical business practices.
The significance of this shift was highlighted at the
Sharm el-Sheikh Climate Change Conference (COP27)
in 2022, where for the first time, the final decision
text included a dedicated section on forests and
forest-based industries. This milestone underscores
the critical role that companies in the timber industry,
such as ML, play in global efforts to combat climate
change and protect natural ecosystems. For ML,
this recognition reinforces the importance of its
commitment to sustainable practices, as well as
its responsibility to lead by example in promoting
sustainable development within the industry.
Our Strategic Approach
The Board recognises the crucial role of adopting and
consistently practicing good corporate governance
across the Group’s operations to ensure accountability
and transparency. This commitment is fundamental to
fulfilling its responsibilities in protecting and enhancing
shareholders’ value and the Group’s financial performance.
The Group is committed to embedding sustainability at all
organisational levels, viewing it as a collective responsibility.
This commitment is manifested through strong governance
and operational structures that guide the implementation
of initiatives and foster a culture that values and promotes
sustainability. Economic, environmental, social, and
governance (ESG) matters are governed by a structured
framework that allows for strategic planning, monitoring,
assessment, and deliberation of material issues across all
levels of the Group.
Sustainability Governance
The sustainability governance structure at ML is designed
to integrate sustainability into the core operations
and strategic direction of the company, ensuring a
comprehensive and responsible approach to environmental,
social, and governance (ESG) issues.
ML’s Sustainability Governance Structure
ML has established a comprehensive sustainability
governance structure to ensure that sustainability is
integrated across all levels of the organisation. At the top
of this structure is the Board of Directors, which holds
overall responsibility for the governance of the Group,
including all matters related to sustainability. The Board is
supported by the Group Sustainability Committee (GSC),
chaired by Executive Director, Mr. Yin Kong Fung. The GSC
plays a critical role in assisting the Board by focusing on
sustainability-related matters, ensuring that sustainability
remains a core focus of ML’s strategic agenda.
Group Sustainability Committee
The Sustainability Committee is integral to developing and implementing ML’s sustainability strategy. The GSC is composed
of senior management from ML’s various divisions, including operating units such as plymill, sawmill, logging, forest
replanting, nursery, marine, road maintenance, and dredging. This diverse representation ensures that the committee can
comprehensively review and approve the Group’s sustainability objectives, while also effectively monitoring the progress
towards achieving these goals. The GSC is instrumental in aligning ML’s sustainability strategy with its operational realities,
ensuring that sustainability objectives are not only ambitious but also achievable.
The committee identifies and manages sustainability-related risks and opportunities, aligning initiatives with the company’s
strategic objectives.
Operations Sustainability Teams
Operations Sustainability Teams (OST) each comprises
personnel from various operating units. These teams are
tasked with the implementation, monitoring, and reporting
of the progress of approved sustainability objectives
within their respective units’ day-to-day operations. This
decentralised approach to sustainability governance allows
ML to embed sustainability into the fabric of its operations,
ensuring that sustainability considerations are an integral
part of the decision-making process at all levels.
By establishing a robust sustainability governance
structure, ML demonstrates its commitment to sustainable
development and accountability. This structure ensures
that sustainability is not just a top-down directive, but a
collective responsibility shared across the organisation,
promoting a culture of continuous improvement and
innovation in sustainability practices.
Materiality Matters
ML’s strategic approach to sustainability is
based on a deep understanding of important
issues, allowing us to successfully navigate
changing circumstances and take advantage
of new possibilities. We identify material
topics as those that have the greatest impact
on the economy, environment, and people
within our value chain. Effectively managing
the risks and opportunities of our material
topics helps to better align our business with
stakeholder concerns.
With the ever-changing business landscape and
evolving stakeholder expectations, it is crucial to have
a comprehensive and transparent approach in order to
identify ML’s important topics. This approach should
consider the global and regional context, as well as the
perspectives of both internal and external stakeholders.
Here is an overview of the important steps we have taken
to identify and define our material topics.
ENGAGEMENT
ASSESSMENT
ALIGNMENT
ENGAGEMENT
Stakeholder Engagement and Consultation
Why it’s important:
Engaging with our key stakeholders—employees, customers, investors, suppliers, regulatory bodies, and local communities—is crucial for ensuring that the material topics we identify are both relevant and reflective of the concerns and expectations of those who are impacted by or have an impact on ML’s operations. By maintaining an open dialogue with these groups, we can better align our strategic goals with the needs and values of those we serve and collaborate with.
Our Action:
We have conducted structured interviews, surveys, and focus group discussions to gather insights directly from our stakeholders. For example, we have engaged in community meetings where the Forestry Department and local committees expressed their views and concerns. This engagement process allowed us to understand what our stakeholders consider to be the most significant environmental, social, and governance (ESG) issues. By prioritising topics that resonate with stakeholder expectations, we are better positioned to align these concerns with our company’s strategic goals, ensuring that our efforts are both impactful and meaningful.
Why it’s important:
Engaging with our key stakeholders—employees, customers, investors, suppliers, regulatory bodies, and local communities—is crucial for ensuring that the material topics we identify are both relevant and reflective of the concerns and expectations of those who are impacted by or have an impact on ML’s operations. By maintaining an open dialogue with these groups, we can better align our strategic goals with the needs and values of those we serve and collaborate with.
Our Action:
We have conducted structured interviews, surveys, and focus group discussions to gather insights directly from our stakeholders. For example, we have engaged in community meetings where the Forestry Department and local committees expressed their views and concerns. This engagement process allowed us to understand what our stakeholders consider to be the most significant environmental, social, and governance (ESG) issues. By prioritising topics that resonate with stakeholder expectations, we are better positioned to align these concerns with our company’s strategic goals, ensuring that our efforts are both impactful and meaningful.
ASSESSMENT
Assessment of Business Impact
Why it’s important:
Understanding the impact of various topics on ML’s business operations, financial performance, and long term sustainability is essential for identifying material topics that truly matter. These material topics significantly influence our ability to create value in the short, medium, and long term, and their careful assessment ensures that we are focusing on areas that drive both sustainability and business success.
Our Action:
We have undertaken a thorough impact assessment to evaluate the risks and opportunities associated with various ESG topics. This assessment included an analysis of the financial implications, regulatory requirements, and reputational risks linked to each topic. Additionally, we considered how these topics align with our strategic objectives and sustainability commitments, ensuring that we focus on areas that are critical to our business success and sustainability goals.
Why it’s important:
Understanding the impact of various topics on ML’s business operations, financial performance, and long term sustainability is essential for identifying material topics that truly matter. These material topics significantly influence our ability to create value in the short, medium, and long term, and their careful assessment ensures that we are focusing on areas that drive both sustainability and business success.
Our Action:
We have undertaken a thorough impact assessment to evaluate the risks and opportunities associated with various ESG topics. This assessment included an analysis of the financial implications, regulatory requirements, and reputational risks linked to each topic. Additionally, we considered how these topics align with our strategic objectives and sustainability commitments, ensuring that we focus on areas that are critical to our business success and sustainability goals.
ALIGNMENT
Alignment with Global Standards and Frameworks
Why it’s important:
Aligning our material topics with recognised global standards and frameworks ensures that ML’s sustainability reporting and practices are consistent with industry best practices and meet stakeholder expectations. This alignment not only enhances the credibility of our sustainability performance but also ensures that our efforts are comparable on a global scale, thereby reinforcing our commitment to responsible business practices.
Our Action:
We have mapped the identified topics against global frameworks such as the Global Reporting Initiative (GRI) Standards, the Sustainable Development Goals (SDGs), and other relevant industry-specific guidelines. This process has helped us refine and validate our material topics, ensuring they are in line with global priorities and benchmarks. By doing so, we confirm that our sustainability efforts are aligned with the highest standards, which enhances our ability to address critical issues effectively and transparently.
Why it’s important:
Aligning our material topics with recognised global standards and frameworks ensures that ML’s sustainability reporting and practices are consistent with industry best practices and meet stakeholder expectations. This alignment not only enhances the credibility of our sustainability performance but also ensures that our efforts are comparable on a global scale, thereby reinforcing our commitment to responsible business practices.
Our Action:
We have mapped the identified topics against global frameworks such as the Global Reporting Initiative (GRI) Standards, the Sustainable Development Goals (SDGs), and other relevant industry-specific guidelines. This process has helped us refine and validate our material topics, ensuring they are in line with global priorities and benchmarks. By doing so, we confirm that our sustainability efforts are aligned with the highest standards, which enhances our ability to address critical issues effectively and transparently.
By engaging with stakeholders, assessing business impacts, and aligning with global standards, we have effectively identified
and defined material topics that are relevant to our stakeholders, crucial to our business operations, and aligned with global
sustainability standards. This comprehensive approach strengthens our commitment to sustainable development and ensures
that we are addressing the most critical issues in a way that supports both our business objectives and the broader goals of
sustainability.
The materiality assessment resulted in a list of topics that was subsequently presented to and endorsed by the Board of
Directors.
Stakeholders Engagement
We understand the significance of actively involving our stakeholders, as they are essential contributors to our efforts in
creating value. These stakeholders play a crucial role in the long-term success of our company, as their actions and decisions
have a direct or indirect influence on our operations. Clear and concise communication with stakeholders is crucial to
ensure they have a comprehensive understanding of our business, governance, financial performance, and prospects. These
engagements also assist us in recognising important matters and gaining a better understanding of potential opportunities
and risks, enabling us to better meet their needs.
Group’s Stakeholder Engagement
MANAGING RISKS
This Enterprise Risk Management Framework offers a thorough overview of potential risks and opportunities linked to
each Material Sustainability Matters, guiding ML in the identification, evaluation, and handling of risks while capitalising on
opportunities for sustainable growth and operational efficiency.
Key Risk Areas
Sustainability Framework
Our sustainability initiatives are guided by a comprehensive framework that promotes clarity, fosters collaboration across
various functions, and ensures the seamless integration of sustainability considerations into our strategic development.
Vision
To be a leading sustainable company in the timber,
manufacturing and engineering industries, driving
economic growth, environmental stewardship, and social
responsibility.
Mission
To integrate sustainability into all aspects of our operations,
ensuring long-term value creation for our stakeholders
while protecting the environment and enhancing social
well-being.
Aspirations
Sustainability Pillars
ENGINEERING THE FUTURE
PRESERVING NATURE
With unwavering grit and grace, Maxland Berhad is committed to forging a
deeper connection with nature and the environment. By faithfully upholding
ethical standards in forest management, the company embraces its responsibility
with care. Maxland Berhad also advances future-oriented innovation through
its engineering division. Driven by a steadfast sense of duty, Maxland Berhad
continues to position itself for purposeful, sustainable growth, guided by vigor
and a commitment to reaching new heights.