SUSTAINABILITY STATEMENT

This Sustainability Statement (“Statement”) covers our sustainability efforts in our main activities and operations in Malaysia from 1 January 2019 to 31 December 2019. This Statement has been prepared based on the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad.

The Group recognises the importance of creating long-term sustainable value for all stakeholders. In this regard, the Group endeavours to address issues related to sustainability across the various Economic, Environment and Social (“EES”) impacts of the activities of the Group while looking after the interests of our key stakeholders.

This statement covers the entire operations of Straits Inter Logistics Berhad and its operating subsidiaries (“Straits” or “the Group”) that are contributing significant revenue towards the Group’s overall financial performance.

1.Governance Structure

The Group have always conducted its business activities in an ethically responsible manner and in compliance with prevailing laws and regulations. In doing so, our action reflects transparency and accountability whilst strengthening the trust of our stakeholders. Established in January 2020, our Sustainability Management Committee (“SMC”) comprises key management personnel with direct reporting to the Group Managing Director (“Group MD”).

The SMC is tasked to drive initiatives that will help to identify and improve pertinent EES matters and other areas of concerns. Arising from that, the SMC has developed management action plans towards achieving the Group’s goal of being a sustainable organisation. In this manner, the SMC assist the Group MD and the Board of Directors to meet its oversight responsibilities in relation to the Group’s sustainability initiatives and performance.

2.Stakeholder Engagement

The Group recognises the importance of various stakeholders’ concerns on sustainability matters, especially in the process of identifying what is deemed material to the Group.

In determining and prioritising sustainability matters which are material to the Group and its stakeholders, we take into consideration the perspective of internal and external stakeholders.

The following table summarises some the Group’s stakeholders and how the Group has engaged with them :

3.Material Assessment and Sustainability Matters

The Group had identified issues that are material to both our Group and key stakeholders. These material EES issues are determined based on their likelihood and potential impact on the Group’s business and long-term growth.

4.Key Sustainability Matters

a) Health, Safety & Security

b) Business Ethics

c) Environment

d) Human Capital

e) Economic

f) Customer

g) Community

HEALTH, SAFETY & SECURITY (``HSS``)
  • It is one of our key priorities to maintain a safe and healthy working environment for our employees at all levels of the Group’s business operations. We have introduced various measures to provide a safe and quality work environment for employees to carry out their daily activities. We strive to continuously improve our HSS performance.
  • Under the requirement of International Standard Organization (“ISO”), enforcement is carried out within the Group to ensure continuous adherence to safety measures are observed at all times to prevent injuries at workplace. The Group’s occupational health and safety policy exists which provides a clear emphasis on the principles and values that we subscribe to. We also adhere to the strictest standards in marine safety to maintain and achieve target in Incident Injury Free (“IIF”).
  • We also embed safety practices in the performance of our daily activities. All employees receive a health, safety, security and environment (“HSSE”) briefing as part of the induction process. Employees travelling to offshore facilities must undergo basic offshore safety induction and emergency training (“BOSIET”) programmes.
  • To safeguard the health, well-being and safety of our employees, the following precautions and measures were also established:

a) Promotion of a safe working culture through the conduct of safety briefing and safety awareness campaigns for both employees and contractors;

b) Implementation of standardized health and safety program across all the Group’s operations; and

c) Regular safety education programs are conducted to enable employees to understand the requirements of the Occupational Safety and Health Administration (“OSHA”) and to boost safety and health awareness.

  • The Group’s vessels are also in compliance to international marine regulations and codes, including the following:

a) International Safety Management (“ISM”);

b) International Ship and Port Facility Security (“ISPS”); and

c) Safety Management System.

We continue to place emphasis on maintaining a safe working environment by establishing and adopting International Safety Management Code (“ISM Code”) and Ship Management System to ensure safety of every tanker vessel.

The purpose of this code is to provide an international standard for the safe management and operation of ships and for pollution prevention.

The contents of ISM Code amongst others are as follows:

  • Functions Requirements for Safety Management system
  • Safety and Environment Protection Policy
  • Company Responsibilities and Authority
  • Designated Person(s)
  • Master Responsibility and Authority
  • Resources and Personnel
  • Shipboard Operations
  • Emergency Preparedness
  • Report and Analysis of Non-Conformities, Accident and Hazards Occurrences
  • Maintenance of the Ship and Equipment
  • Company Verification, Review and Evaluation
  • Certification and Periodical Verification

The Safety Management System consists amongst others:-

  • Details as to how a vessel would operate on a day-to-day basis
  • Procedures and guidelines to be followed in case of an emergency
  • How are drills and trainings conducted, measures taken for safe operation
  • Procedures and guidelines to ensure safe operations of ships and protection of marine environment in compliance with relevant International and flag State legislations
  • Procedure and guidelines for reporting accidents or any other form of non-conformities
  • Safety and environmental protection policy
BUSINESS ETHICS
  • The combination of ethical business conduct and sound corporate governance are fundamental to the achievement of our objectives to expand our business and enhance stakeholders’ value. It is the Group’s policy to conduct business in a fair, honest and transparent manner.
  • It is our responsibility to uphold our code – to set a high standard for ourselves and be seen by our peers, customers, business partners, investors and communities as a company that does the right thing, always.
ENVIRONMENTAL MANAGEMENT
  • We proactively work to protect the environment and minimize any impact by operating with high safety standards. We are mindful of the environmental impacts arising from our activities and hence, we consistently ensure compliance with all the environmental regulations are met.
  • The industry we are in have extensive direct and indirect impacts on the environment and therefore, aligning ourselves with the goals of sustainable development is crucial. Our emphasis is to grow the business without compromising the quality of the environment we live in.
  • A range of pollution risks are associated with our activities. These include risks related to planned and unplanned discharges and waste management. We strive to continually operate in a safe manner to avoid spills, leaks or accidental discharges of polluting materials.
  • Being in the maritime and transport industry, we ensure all our vessels and lorry tankers are compliant with the statutory requirements related to Marine Pollutions Regulation and Road Transport Department’s Regulations respectively.
HUMAN CAPITAL
  • Employees are our greatest assets. We are made up of people with vast experience and industry background. Strengthening capability is key, hence we proactively provide opportunities for growth and development for talent in the organisation through targeted development plans and succession planning.
  • Straits is committed to provide equal opportunities of our employees and sees diversity as a strength in building the Group’s competitiveness. We believe that our people should be treated on the basis of their work performance and merits, without discriminating them based on religious belief, age, creed, marital status, gender or any disability. Employees are required to observe and adhere all relevant Group’s policies and practices.
  • Ensuring our long term sustainability, we continuously invest time and effort in recruiting, upskilling, engaging, retaining and rewarding talents/employees of the organisation accordingly. We will continue to focus on human capital development to nurture our employees to their full potential.
CUSTOMER
  • Customers are the main pillar of our business ventures.
  • Customers’ satisfaction is the basis of a sustainable business and engagement with customers provides opportunity for the Group to improve many areas including service quality.
COMMUNITY
  • The Group is committed to promote social responsibilities as an integral part of the Group’s vision whilst pursuing business growth to enhance shareholders and stakeholders’ value. We are proud of having the privilege to serve various segments of the community towards providing social empowerment and helping to make a positive difference for people across all walks of life. We have from time to time made donations to various charitable organization and helping the less fortunate members of our community is our way of giving back to society.
CONCLUSION

We will continuously improve the sustainability approach towards formalizing sustainability within our business. We recognize that we still have room for enhancement, both in terms of initiatives undertaken and our reporting structure. Moving forward, we will enhance the materiality factors and metrics and targets to measure issues that are material to our business and move towards benchmarking our progress against international standards of reporting. As we look to the future, it is our hope that we will continue to introduce new and exciting quality for our customers, enrich our local communities, create value for our stakeholders, and be an organisation that people will be proud to associate with.

This Statement has been approved by the Board on 5 May 2020.