As a specialised steel trading, processing, and manufacturing company, Leon Fuat Berhad ("Leon Fuat" or "the Group") recognises the importance of integrating Environmental, Social, and Governance ("ESG") considerations into our business. We are committed to creating a positive impact on both society and the environment. To this end, we continuously enhance our processes and operations in line with modern best practices, embracing our responsibility to help shape a more sustainable future for generations to come.

OUR JOURNEY FORWARD

Since 2017, sustainable practices have transformed our organisation, integrating ESG considerations into our core values. Today, we remain focused on achieving our ESG aspirations and sustainability targets.

Leon Fuat's sustainability journey is outlined in the figure below:

FY 2017 - FY 2018

  • Published the inaugural sustainability statement in FY2017 in accordance to Bursa Malaysia Sustainability Reporting Guide (1st Edition)
  • Established a Sustainability Committee and a Sustainability Task Force Committee
  • Conducted comprehensive materiality assessment and developed a materiality matrix based on thirteen (13) material matters
  • Fourteen (14) UN SDGs adopted in total

FY 2019 - FY 2020

  • Adopted Bursa Malaysia Sustainability Reporting Guide (2nd Edition) and GRI Standards
  • Established a three-tier governance structure and Terms of Reference ("TOR")
  • Identified seven (7) key stakeholder groups and enhanced stakeholder engagement table
  • Conducted materiality re-assessment in 2020 to identify new priorities

FY 2021 - FY 2022

  • Established ESG framework
  • Introduced Climate Change as a new material sustainability matter
  • Reviewed and updated materiality matrix to accommodate changes in the material matters

FY 2023

  • Adopted Bursa Malaysia Sustainability Reporting Guide (3rd Edition)
  • Commenced reporting of climate-related disclosure by adopting the Task Force on Climate-related Financial Disclosures Recommendations
  • Established Group-wide Sustainability Policy
  • Conducted materiality re-assessment on thirteen (13) material matters to re-evaluate and update ESG priorities
  • Enhanced stakeholder engagement table by including Leon Fuat's responses to stakeholders' concerns

FY 2024

  • Enhanced climate-related disclosures by evaluating climate-related risks and opportunities over short, medium and long-term
  • Reported emissions avoidance through solar power generation

Our Vision

"Steel is our business. Excellence is our commitment"

Leon Fuat's Shared Values

Drive a performance culture of integrity and accountability
Commitment to products and services quality
Strengthen business processes to provide better service to customers
Manage cash resources for operational effectiveness
Economic Prosperity
  • Operational Excellence
  • Responsible Procurement
Responsible Governance
  • Corporate Governance and Anti-Corruption
  • Data Privacy and Cybersecurity
Environmental Stewardship
  • Climate Change and Energy
  • Effluent and Waste Management
  • Water Efficiency
Social Responsibility
  • Occupational Safety and Health
  • Noise Management
  • Labour Practices and Standards
  • Diversity and Inclusiveness
  • Product Quality and Customer Satisfaction
  • Corporate Social Responsibility

Supporting Global Responsibility

The United Nations Sustainable Development Goals ("UN SDGs") call on all nations to create a sustainable and inclusive global society by 2030. We identified seven (7) SDGs that closely align with our initiatives, representing key areas where we can make the most positive impact.

Our Contribution to the UN SDGs:

3
Good Health
and well-being
UN SDG 3
  • Provides healthcare and insurance coverage as part of our employee benefits package
  • Enhanced employee healthcare benefits at LF Metal in FY2024 by upgrading insurance coverage to offer better protection and support
7
Affordable and
Clean Energy
UN SDG 7
  • Added three (3) solar-powered streetlights at LF Metal, enhancing our energy efficiency
  • Exported 942,136 kWh of surplus electricity from solar panels at LF Metal to the grid under the Net Energy Metering Scheme in FY2024
8
Decent work and
Economic Growth
UN SDG 8
  • Reviewed and updated our Health and Safety Policy in 2024 to align with the Occupational Safety and Health (Amendment) Act 2022
  • Applied Hazard Identification, Risk Assessment, and Risk Control ("HIRARC") methods to systematically identify, mitigate, and eliminate operational risks
  • Conducted scheduled noise risk assessments, annual audiometric tests, and noise monitoring in factory environments to ensure safe noise levels
  • Provided Personal Protective Equipment ("PPE") to all individuals entering factory premises, ensuring adherence to safety standards
  • Delivered ongoing health and safety training to employees, reinforcing safe work practices and reducing workplace incidents
9
Industry, Innovation
and Infrastructure
UN SDG 9
  • Enhanced production efficiency by investing in modern factory machinery, such as fibre laser cutting technology, which accelerates output and reduces energy consumption
  • Upgraded 97.1% of delivery trucks to green trucks powered by green diesel, resulting in lower carbon monoxide emissions and sulphur content
12
Responsible
Consumption
and production
UN SDG 12
  • Established a waste management system to ensure proper handling, treatment, and disposal of all scheduled and non-scheduled waste categories
  • Regularly monitored and documented effluent discharge quality to maintain compliance with legal and environmental standards
  • Established procurement procedures to uphold fair business practices, ensuring supplier compliance with ethical standards
  • Conducted rigorous supplier evaluations and regular performance assessments to ensure adherence to corporate values
13
Climate
Action
UN SDG 13
  • Reduced our carbon footprint by adopting green diesel for delivery vehicles and increasing solar power usage to enhance energy efficiency
  • Enhanced climate-related disclosures by evaluating climate-related risks and opportunities over the short, medium and long-term
16
Peace, Justice
and strong
Institutions
UN SDG 16
  • Implemented a comprehensive Anti-Bribery Management System to identify and mitigate bribery risks within our business activities
  • Introduced a due diligence questionnaire for suppliers, covering compliance systems and anti-bribery measures
  • Zero confirmed incidents of bribery and corruption recorded for the past three (3) years
  • Established a comprehensive suite of corporate governance policies to uphold transparency, accountability, and ethical practices across the Group, including:
    1. Code of Ethics and Conduct
    2. Directors' Fit and Proper Policy
    3. Board Charter
    4. Anti-Bribery Policy
    5. Whistleblowing Policy
    6. Personal Data Protection Notice

Leon Fuat's Sustainability Policy

Our Sustainability Policy articulates the Group's efforts towards our objectives. It strategically equips us to manage emerging risks and leverage opportunities, driving our ESG progress forward.

Economic Prosperity

  • Adopt a sustainable business model that emphasises quality products, value-added services and ethical practices.
  • Prioritise delivering superior returns to our shareholders while considering the long-term impacts of our actions.
  • Conduct regular assessments to identify and mitigate any potential risks associated with our supply chain, ensuring compliance with ethical and responsible sourcing practices.
  • Drive the continuous innovation of sustainable products and services.
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Responsible Governance

  • Adhere strictly to laws, regulations and industry standards relevant to our operations by regularly assessing our compliance mechanisms and updating policies as needed to meet evolving legal requirements.
  • Maintain transparent and open communication with our stakeholders.
  • Uphold the highest level of ethics and integrity in our business operations, encouraging a culture of honesty, fairness and accountability.
  • Implement robust risk management strategies, identifying potential risks associated with environmental impact, social issues and governance concerns and proactively taking measures to mitigate them.
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Environmental Stewardship

  • Continuously improve energy efficiency, monitor and reduce our carbon footprint.
  • Ensure compliance with environmental regulations and legal requirements.
  • Prevent environmental pollution and improve the quality of environmental management.
  • Embrace the principles of a circular economy, with a focus on recycling, reusing and reducing waste.
  • Develop initiatives to extend the lifecycle of products, promoting responsible consumption and production.
  • Monitor water consumption and implement water conservation practices in our facilities.
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Social Responsibility

  • Prioritise the health, safety and well-being of our employees by implementing stringent safety guidelines and protocols.
  • Conduct regular health and safety training to foster a safe and healthy work environment.
  • Support the well-being and growth of our employees by cultivating a workplace culture that encourages their development.
  • Encourage employee growth and development through training programmes, career advancement opportunities and performance recognition.
  • Foster a culture of diversity and inclusion by implementing policies and practices that promote equal opportunities and eliminate discrimination.
  • Engage in community development initiatives.
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ENGAGING WITH OUR STAKEHOLDERS

Building Strong Relationships

Engaging with stakeholders through effective communication and collaboration fosters meaningful, mutually-beneficial relationships. Continuous dialogue ensures we stay informed of evolving trends, developments, and expectations, allowing us to embrace new opportunities and remain relevant.

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SUSTAINING FOCUS AND MOMENTUM

Sustainability Report 2024

As a specialised steel trading, processing and manufacturing company, Leon Fuat Berhad ("Leon Fuat" or "the Group"), acknowledges the importance of integrating Environmental, Social and Governance ("ESG") considerations into our business, aiming to leave a positive impact on society and the environment.

We are pleased to present our Sustainability Report for the financial year 2024, offering a detailed account of our ongoing journey and the progress we have made thus far. We continue to refine our processes and operations to align with modern best practices, viewing it as our responsibility to shape a better future for generations to come.

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