SUSTAINABILITY PROGRESS
AND PERFORMANCE
Environmental
Aligning with UNSDGs:
Energy and Emissions Management
For FPE 2025, ML has consolidated Energy and
Emissions into a single disclosure to enhance
reporting clarity and reflect the interlinkages between
energy consumption and emissions. This integration
also strengthens the consistency and transparency of
the Group’s environmental performance reporting.
Energy use represents a key operational input for ML’s
manufacturing and processing activities. Effective
energy management therefore plays a critical role in improving operational efficiency, optimising resource
utilisation, and reducing the environmental impact
of operations. As regulatory expectations continue
to evolve, organisations are increasingly expected to
strengthen their energy management practices and
improve operational efficiency.
By enhancing energy efficiency and strengthening
emissions control measures, ML aims to minimise
the environmental footprint of its operations while
supporting responsible resource management. These
efforts align with the objectives of the UNSDG 7
(Affordable and Clean Energy).
Energy Management
ML adopts a structured approach to energy management
that focuses on improving efficiency, optimising operational
processes and gradually exploring renewable energy
opportunities. Operational scheduling plays an important
role in managing energy demand across our facilities. Where
feasible, production activities are planned to optimise
energy usage and reduce unnecessary consumption during
peak demand periods. In addition, the Group continues to
introduce energy-efficient technologies across its facilities,
including LED lighting systems and automated operational
controls that support more efficient electricity usage.
ML also emphasises continuous improvement in
manufacturing efficiency. By implementing process
optimisation initiatives and adopting lean operational
practices, the Group is able to reduce energy wastage while
maintaining productivity. These measures not only support
environmental objectives but also enhance operational efficiency. At the same time, ML is exploring opportunities
to integrate renewable energy solutions into its operations.
Preliminary assessments are being conducted to evaluate
the feasibility of installing solar photovoltaic systems to
supplement existing energy sources and gradually reduce
reliance on fossil fuel-based electricity.
Employee engagement is another important component
of ML’s energy management efforts. Awareness initiatives
are conducted to encourage responsible energy use and
strengthen employee participation in resource conservation
initiatives.
Energy Consumption and Monitoring
Energy consumption remains one of the key contributors
to the Group’s greenhouse gas emissions. Strengthening
the monitoring and management of energy use is therefore
an important step in improving ML’s environmental
performance. During the reporting year, the Group enhanced
its internal data collection processes to establish a clearer
baseline for energy consumption across its operations.
Electricity consumption currently serves as the primary
indicator used to monitor the Group’s overall energy usage
and forms the basis for future energy performance tracking.
Overall, total energy consumption reached 82,367 Gj in FPE 2025, as compared to 51,798 Gj in FPE 2024. This increase is
in line with the production volume. Moving forward, ML will continue strengthening its energy monitoring and management
practices to identify opportunities for operational efficiencies and to better optimise energy consumption across its facilities.
Air Emissions
Managing air emissions is an important aspect of ML’s
environmental responsibility, particularly given the nature
of manufacturing activities within the timber processing
industry. At our manufacturing facilities, emission
monitoring systems have been installed to minimise the
release of particulate matter and dark smoke from steam
boilers. These systems help detect and prevent excessive
smoke emissions while reducing the release of wood
dust and other pollutants through the chimney systems.
By maintaining effective monitoring mechanisms, the
Group is able to improve air quality within its operational
environment and minimise potential impacts on nearby
communities.
In addition to emission monitoring, ML continues to explore
opportunities to reduce emissions at the source. This
includes improving energy efficiency, optimising production
processes, and evaluating cleaner operational technologies.
As part of strengthening its environmental management
approach, the Group is also enhancing internal data
collection processes to support more structured monitoring
of air emissions across its operations.
Moving Forward
ML remains committed to strengthening its energy and emissions management practices as part of its broader environmental
strategy. In the near term, the Group will continue improving energy monitoring systems and expanding the use of energy
efficient technologies across operational sites. Additional efforts will also focus on enhancing air emission control mechanisms
and identifying operational opportunities to further improve efficiency.
Over the longer term, ML aims to progressively integrate renewable energy solutions where feasible, while continuing to
optimise manufacturing processes and resource utilisation. Through these initiatives, the Group seeks to enhance its overall
environmental performance and reinforce its commitment to responsible and sustainable operations.
Water Management
Water plays an important role in ML’s operations, particularly in supporting manufacturing processes, facility maintenance and
wastewater treatment activities. Responsible water management is therefore essential to ensuring operational sustainability
while minimising environmental impact.
As global concerns surrounding water scarcity and resource management continue to intensify, organisations are increasingly
expected to adopt responsible water stewardship practices. ML recognises the importance of protecting water resources
and is committed to improving water efficiency across its operations. These efforts support the objectives of UNSDG 6 (Clean
Water and Sanitation), which promotes sustainable management of water resources. To support responsible water usage, ML
has implemented water management systems designed to reduce wastage and improve water efficiency across its facilities
A key component of this approach is the installation of a water recycling system, which allows water used within operational
processes to be treated and reused. By recycling water within the production cycle, the Group reduces reliance on fresh
water sources while improving resource efficiency.
In addition, rainwater harvesting systems have been installed at selected operational sites and worker accommodations.
Rainwater collected through these systems is utilised for non-potable daily uses, helping to reduce dependence on municipal
water supply. Together, these initiatives contribute to improving water stability within operations while reducing pressure on
local water resources.
Water Use and Efficiency
Water is utilised across several operational activities,
including facility maintenance and wastewater management
processes. Consumption levels may vary depending on
operational scale and production requirements. In FPE 2025,
ML recorded total water consumption of 129.87 megalitres,
as compared to 79.98 megalitres in the previous reporting
period. Monitoring water consumption allows the Group to
evaluate resource efficiency and identify opportunities to
optimise water usage.
Moving Forward
ML will continue enhancing its water management practices
to improve resource efficiency and strengthen water
stewardship across its operations. In the near term, the
Group will focus on optimising existing water recycling
systems and expanding rainwater harvesting initiatives
where feasible. These measures will further reduce reliance
on external water sources while strengthening operational
resilience.
Over the longer term, ML aims to evaluate advanced water
treatment technologies that could enable higher levels
of water recycling within its production processes. The
Group also intends to collaborate with local stakeholders
to promote responsible water use and environmental
stewardship.
Waste Management
Timber processing activities inevitably generate
operational by-products such as wood offcuts,
sawdust, and other residual materials. Without proper
management, these materials could contribute to
environmental impacts such as pollution, inefficient
resource use, and unnecessary waste generation.
ML is therefore committed to managing waste responsibly by prioritising waste reduction, recycling,
and resource recovery wherever possible. Effective
waste management supports regulatory compliance,
enhances operational efficiency, and promotes
responsible resource utilisation across our operations.
These initiatives align with the objectives of UNSDG
12: Responsible Consumption and Production.
To ensure proper implementation, designated
personnel conduct regular inspections across
operational sites to monitor waste generation and
verify that appropriate waste management practices
are consistently applied. ML implements several
waste management initiatives across its operations,
including:
- Adoption of the 3R approach; reduce, reuse, and recycle, to minimise waste generation.
- Engagement of contractors for the proper handling and disposal of operational waste.
- Resource recovery of timber by-products, where wood offcuts and sawdust generated during manufacturing are repurposed as biomass fuel to generate energy for operational use.
- Installation of chipping machines to convert bulk wood waste into wood chips, allowing for more efficient combustion and reduced smoke emissions.
- Reuse of wood residues in the production of wood based filler and putty, as well as in engineered flooring products where recovered timber is utilised.
- Implementation of a centralised suction and air filtration system to minimise airborne sawdust, improving both workplace conditions and operational cleanliness.
- Use of low-formaldehyde adhesives in plywood production that contain minimal volatile organic compounds (VOCs), helping to reduce potential environmental and health impacts
Through these initiatives, ML aims to maximise the
value of timber resources while minimising waste
generation and environmental impact across its
operations.
Waste Monitoring and Reporting
During the reporting period, ML initiated the process of
strengthening waste data collection across its operations.
While the current reporting scope is still developing,
it
establishes an important baseline for ML’s waste
monitoring framework. The Group will continue enhancing
data collection processes to provide more comprehensive
reporting in future sustainability disclosures.
Circular Resource Utilisation
A key component of ML’s waste management approach is
the reuse and recovery of timber by-products generated
during manufacturing processes. Wood offcuts and sawdust
are repurposed as fuel for the Group’s biomass power
plant, enabling the generation of renewable electricity that
supports operational energy requirements. This approach
reduces waste disposal while simultaneously contributing
to the Group’s energy efficiency objectives.
In addition, wood waste is processed using chipping
machines that convert bulk timber residues into wood
chips. The increased surface area of wood chips enables
more efficient combustion, helping reduce smoke emissions
during biomass energy generation. ML also reuses wood
residues in value-added applications such as wood-based
f
iller production and engineered flooring products. By
repurposing timber waste within production processes, the
Group maximises resource efficiency while reducing the
volume of waste requiring disposal.
Moving Forward
ML remains committed to continuously strengthening
its waste management practices and improving resource
efficiency across its operations. In the short term, the
Group will focus on improving employee awareness
and engagement through training programmes aimed
at strengthening waste management practices and
operational discipline. Over the longer term, ML aims to
further develop a more structured waste management
framework that enhances monitoring, encourages resource
recovery and supports continuous improvement in
sustainable production practices. Through these ongoing
efforts, ML seeks to minimise environmental impact while
ensuring that its operations remain aligned with responsible
resource management principles.
×
![]()