1 December 2022

To our stakeholders:

I am pleased to confirm that Alam Flora Sdn. Bhd. reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

DATO' HAJI MOHD ZAIN BIN HAJI HASSAN
Chief Executive Officer

Alam Flora Sdn. Bhd. (Alam Flora or Group) is a subsidiary of Malakoff Corporation Berhad (MCB), Malaysia’s leading Independent Power Producer (IPP) listed on the main market of Bursa Malaysia.

Our commitment to fundamental human rights is enshrined in our Code of Conduct, which confirms Alam Flora's support and respect for internationally recognised human rights, including the fundamental rights principles outlined in the International Labour Organization's (ILO) Declaration on Fundamental Principles and Rights at Work. The expectation for responsible business conduct consists of following laws and regulations, which includes protecting the environment and public health and safety, as explained in the Environmental Principles and the Labour Practices Principles, respectively.

All of the policies, including Alam Flora Code of Conduct, Health and Safety Policy and other policy have been formulated to ensure to support and respect the basic human rights. It reaffirms our commitment to basic human rights and treating all employees and others fairly, equally, and with respect, which is free from prejudice, discrimination, bias, harassment and/or violation.

We encourage employees and external stakeholders to report any breaches or suspected breaches of our Code of Conduct, including any possible human rights abuses or infringements in terms of our whistle-blowers’ standard operating procedure. A disclosure of improper conduct to be made in writing via e-mail to whistleblowing@alamflora.com.my.

Respecting and supporting human rights is our materiality under the Governance pillar and at the same time we will be supporting MCB on the human rights journey at a higher level.

a) Alam Flora Code of Conduct is a guide to our stakeholders.
All of our employees must formally embrace the company’s code of conduct. The code is extended to our external stakeholders which are customers, vendors and suppliers when they enter into new commercial agreements with us. They must accept or recognise the code, ensuring that the fundamental of human rights are respected and supported throughout our value chain.

b) Awareness training of employees on Human Rights.
Supporting and respecting Human Rights is part of our Sustainability Awareness Programme modules for our employees.

UNGC’s digital learning platform
As a subscriber to UNGC, this digital learning platform gives benefits to our employees that can helps to move further, faster in supporting our CEO’s commitment to the Ten Principles. A set of the Business and Human Rights modules provided by the UNGC Academy is accessible to all employees.

c) Human resources and ethics related policy documents, process and statements in supporting Human Rights.
The Group’s human resources and ethics-related policy documents, processes, and statements that are relevant across the Group prove to our dedication to upholding fundamental human rights. Among these are the relevant the Group's whistle-blower policy, and the appropriate grievance procedures. The policy statement of the whistle-blower is available on the Group’s corporate website.

This section should be read in conjunction with MCB Annual Integrated Report for the same reporting cycle.

a) Communication and Awareness training of employees on Human Rights

Supporting and respecting Human Rights were communicated during the Sustainability awareness programme. The webinar session was conducted on 15 September 2022, attended by a total of 42 participants, whereby 21 participants from Human Capital Department in headquarter and Kuala Lumpur branch, and 23 participants from Operation Department in Kuala Lumpur branch.

b) Ways of Preventing Human Rights Abuse within our Value Chain
Measures taken by the Alam Flora in the reporting period intended to contribute to the human rights abuse in the Group and its value chain. We ensure that all new vendors and suppliers, were screened based on social criteria such as ISO 9001 Quality Management, ISO 14001 Environmental Management and ISO 45001 Occupational Health & Safety certification. (GRI Disclosure 414-1 New suppliers that were screened using social criteria)

c) Whistleblowing Mechanism (GRI 2-26 Mechanisms for seeking advice and raising concerns)
Our whistleblowing mechanism is established to ensure that these incidents are brought to the Company’s attention. All reported incidents are formally recorded and reported to the Management for consideration.

The Alam Flora’s Board Audit Committee has the overall responsibility over the whistle-blower policy and shall oversee the implementation of this policy. The Head of Internal Audit Department is responsible for the administration, implementation of this policy and will include but not limited to establishing relevant Standard Operating Procedures to support the effective implementation of this policy. This policy and the provisions herein may be reviewed and amended whenever necessary to ensure its effective implementation. Any amendment to this policy shall be affected by the Head of Internal Audit Department, subject to the approval by the Board of Directors.

Alam Flora Sdn. Bhd. (Alam Flora or Group) is a subsidiary of Malakoff Corporation Berhad (Malakoff), Malaysia’s leading Independent Power Producer (IPP) listed on the main market of Bursa Malaysia.

We are committed to ensuring that our labour standards continue to protect our employees' health, safety, and well-being. We are governed by national and international labour laws, such as the International Labour Organization (ILO) and the Personal Data Protection Act (PDPA). Policies such as our Code of Conduct demonstrate adherence to these codes; allocation of social performance responsibilities throughout the business to our vendors, suppliers, and customers; complaints processes; training and cultural awareness programmes; community support programmes; and stringent safety practices.

Given the nature of the work, Alam Flora recognises the importance of ensuring the availability of key personnel. As a result, the company has implemented stringent controls to mitigate this risk. Controls were put in place at every site and facility, including fleet depots, transfer stations, and sanitary landfills.

All of our employees are free to join trade unions. The right to associate and bargain collectively is a fundamental right enshrined in the ILO Constitution and the Declaration of Philadelphia, which is annexed to the ILO Constitution.

We conducted our materiality matters research assessment on 17 companies, including the top 15 waste management companies in the world. According to our findings, the majority of companies prioritised the health and safety of their workforce. Under the social pillar, our materiality ranked the following items: (1) employee safety and health; (2) employee training and awareness; (3) diversity and inclusion; (4) labour practises and standards; and (5) community investment. Whereas under the Governance pillar, respecting and supporting human rights is one of our materiality this year.

a) Employee safety and health
(GRI 403-2 Hazard identification, risk assessment, and incident investigation)

Alam Flora is certified for ISO 9001 Quality Management, ISO 14001 Environmental Management, and ISO 45001 Occupational Health and Safety. Safety leadership and governance frameworks that enable the identification, evaluation, and satisfactory management of threats are required to ensure the availability of key workforce risks related to daily activities.

We aim to equip our workforce with the skills and confidence to identify and act on the safety hazards around them, know their personal obligations, learn from incidents, and strive to continually improve our health and safety performance.

In Alam Flora, a safe work environment is one that is also free of any form of harassment. We investigate all safety incidents and take corrective action after a thorough investigation. The Hazard Risk Assessment Procedures outline the process for identifying, analysing, implementing, and reviewing hazards.

Our Health and Safety Manual guide, which is available on the Group’s intranet, sets out to manage risks and support us in protecting the safety of all related parties – employees, temporary workers, contractor personnel, visitors, and any other person in the workplace. We are committed to preventing workplace injuries and illnesses through continuous monitoring of key indicators.

We recognise the interrelation between physical, mental, emotional and social health on the overall wellbeing of our workforce. Employee engagement via Kelab Rekreasi dan Kebajikan Alam Flora (Club) is key to advocating employees’ work-life balance to achieve performance at the highest potential. This club was established to support employees’ mental well-being by providing an opportunity to unplug from daily working stresses and strains, while the random grouping allows stronger relationship network development with other colleagues.

b) Employee training and awareness
(GRI 403-5 Worker training on occupational health and safety)
(GRI 404-2 Programs for upgrading employee skills and transition assistance programs)

Our training and communication enable us to improve employee skills and plan skill acquisition that prepares employees to meet strategic targets in a changing work environment. More skilled employees contribute to our human capital and increase employee satisfaction, which is strongly related to improved performance.

This includes reducing the number of incidents and the likelihood of serious incidents in the workplace. The training was delivered in a language easily understood by the workers. The information or updates are also communicated internally via emails.

c) Diversity and inclusion
We want an inclusive and diverse workplace that values everyone and provides opportunities for everyone to contribute and thrive. We promote an inclusive and supportive work environment, foster harmony, and minimise work disruption and stakeholder concern.

To address language barriers among our employees, we provide trainings, communications and documents in our first language (Bahasa Melayu Malaysia) and include as many pictures as possible showing proper procedures or equipment functions for safety measures. We ensure the quality of information and training provided is delivered to all employees, regardless of gender and employee category. (GRI 404-1 Average hours of training per year per employee)

All our employees are free to belong to trade unions. Relationships with trade union representatives, considered key person, are managed in a proactive and responsible manner by site human resources managers. Formal processes are in place to foster a culture of transparency and constructive engagement with trade union representatives in each territory. (GRI 2-30 Collective bargaining agreements)

This section should be read in conjunction with Malakoff’s Annual Integrated Report for the same reporting cycle.

a) Grievance Mechanism (GRI 2-25 Processes to remediate negative impacts)
The Alam Flora grievance mechanism procedure is disclosed on the Group’s intranet. The procedure provides a clear and transparent framework for addressing grievances related in the workplace. There are seven steps explained to guide the employee when he or she raises the issue. This is typically done through an internal complaint procedure, which is then followed by consideration, management response, and feedback.

b) Whistleblowing mechanism (GRI 2-26 Mechanisms for seeking advice and raising concerns)
We encourage our employees and external stakeholders to report any violations or suspected violations of our Code of Conduct, such as potential rights abuses or infringements, acts or omissions that pose a significant and specific risk to the lives, health, or safety of employees, the general public, or the environment; unsafe work practices; or significant waste of company resources.

c) Forced or Compulsory Labour and Discrimination
Measures taken by the Alam Flora in the reporting period intended to contribute to the elimination of all forms of discrimination, forced or compulsory labour in the Group and its value chain.

We ensure that all new vendors and suppliers are screened based on social criteria such as ISO 9001 Quality Management, ISO 14001 Environmental Management and ISO 45001 Occupational Health & Safety certifications.

The incidents reported in the Group involving discrimination, forced or compulsory labour will be reviewed and remedied through routine internal management review processes. (GRI 406-1 Incidents of discrimination and corrective actions taken, GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labour, GRI 414-1 New suppliers that were screened using social criteria)

d) Employee training and awareness
Our training and communication enable us to upgrade employee skills and plan skill acquisition that equips employees to achieve strategic targets in a changing work environment, including safety at the workplace:
- There were 312 of participants attended to the 54 occupational health and safety related training sessions as of 30 September 2022. (GRI 403-5 Worker training on occupational health and safety)

e) Diversity & Inclusions
We ensure the quality of information and training provided is delivered to all employees:
- The average training hours per employee was 25.84 hours for female employee and 29.52 hours for male employees. The average training hours by employee category were 29.52 hours for non-executive, 62.09 hours for executives, and 38.61 hours for management. In average, the training hours per employee was 40.23 as of 30 September 2022. (GRI 404-1 Average hours of training per year per employee i.gender ii.employee category)

All our employees are free to belong to trade unions. The collective bargaining agreements dated 7 April 2022 that they have the right to promote and realise decent working conditions are being effectively recognised. There is 33% percentage of employees covered by collective bargaining agreements dated on 7 April 2022. (GRI 2-30 Collective bargaining agreements)

Alam Flora Sdn. Bhd. (Alam Flora or Group) is a subsidiary of Malakoff Corporation Berhad (Malakoff), Malaysia’s leading Independent Power Producer (IPP) listed on the main market of Bursa Malaysia.

Consistent with our commitment as a responsible corporate citizen to contribute to sustainable development, our Code of Conduct confirms that we exercise a systematic approach to health, safety, and quality in order to achieve continuous performance improvement and compliance with relevant legislation, regulations, and guidelines. Our pledges to health, the environment, and quality are available on our website.

We recognise the importance of supporting global initiatives aimed at protecting the environment, which is aligned with our business as the sustainability problem solver. We established the Environmental Policy and pledged to minimise, manage, and control the environmental impact generated from our operations and value chain. The policy, available online, advocates the containment of the carbon footprint across the supply chain in a technically and economically feasible manner.

This year, we conducted our materiality matters research assessment on 17 companies, including the top 15 waste management companies in the world. According to our findings, the majority of companies prioritised the circular economy and mitigating climate change which are very high important.

Under the environmental pillar, our materiality ranked the following items: (1) circular economy; (2) mitigating climate change; (3) leachate & groundwater management; (4) air quality / pollution; (5) energy from waste; (6) internal waste generated; and (7) optimise water usage.

Under the economic pillar, our materiality ranked the following items: (1) Investing in technology & green assets; and (2) partnership for integrated solutions.

a) Circular economy

-Programmes with our stakeholders.
We want to be portrayed as a major role in environmental solutions industries by recycling more and reduce landfilling. We aim to achieve a recycling rate of 10% of our waste collected. To achieve this goal, we collaborated with all of our stakeholders to promote our recycling facilities and the responsible consumption awareness programme through the #JomrawatBumi campaign. In this campaign, we focus on 3R, food waste management, and learn ways to reduce waste to landfills.

Other than the local community, we also engage with the media, key opinion leaders, social media influencers, and bloggers to use their voices and influence to educate and raise awareness about sustainable living. We conduct an annual event for our corporate clients, suppliers, and contractors. We actively promote the circular economy initiatives in our social media under the account of Alam Flora Sdn. Bhd. We also communicated our sustainability activities and performance during the analyst meeting with Malakoff.

Internally, we embed this 3R programme in our employees’ KPI with the individual target of not less than 45kg of recycled waste per year.

-Partnership Programme
Our recycling facilities resulted in improved air quality due to the reduction in burning of waste at the landfill and increased energy recovery. Our new recycling facilities will continue to protect the environment and create more employment opportunities for the local community, while also involving them in our Emergency Preparedness Plan to meet safety and social objectives in the event of a natural disaster.

Through our recent collaboration with Nestle Products Sdn Bhd, we have expanded our 3R footprint in the Hartamas and Bukit Damansara areas. Our second partnership was with PETRONAS Chemical Group Berhad in supplying potential feedstock of plastic and food waste, as well as a potential project to build waste segregation facilities in Malaysia.

Both of our collaborations not only increase the recycling rate in Kuala Lumpur but also assist these corporations in meeting their ESG targets. They will achieve the GHG emission reduction target and support this country in improving its responsible consumption and production patterns. This partnership program is one of the mitigations plans to seize the interception of potential recyclable waste smuggling.

Local authorities are one of our key stakeholders for the long-term growth of our business. We will continue supporting DBKL in administering the city to become a Low Carbon City through the development of the Recovery Initiative Sustainable Eco-Facility (RISE) in Wangsa Maju.

-Investing in technology and green assets
As a sustainability problem solver, we aim to improve the recycling rate and diverting waste from landfills. Food waste accounts for approximately 45% of Malaysia's MSW. Alam Flora took this as an opportunity and a preparation in managing food waste with technology.

* Converted food waste into the renewable energy or biogas for the internal energy
consumption
Technology: Anaerobic Digester (AD).
Location: Integrated Recycle Facility (IRF) in Putrajaya.
Function: AD operates at a 500 kg/day capacity of food waste and can produce 35 m³ of
biogas with a 55% methane content. AD generates 40 kW/h of electricity, which could be
used to operate the internal facility-conveyor belts for four hours of consumption.

*Converted food waste into animal feed and bio-compost.
Technology: Black Soldier Fly (BSF)
Location: Belenggu Halt sanitary landfill in Temerloh, Pahang.
Function: This treatment provides a high source of protein and fat for animal feed and the
treatment requires optimal temperature, humidity, and light intensity. It is suitable for our
climate. The BSF’s technology effectively and biologically breaks down diverse
biodegradable wastes under sub-tropical conditions.

b) Mitigating climate change

- Air quality / pollution- Fleet management
Our sustainable fleets are the key to mitigate the sudden increase in the number and amount of waste. This year, there was a 10% increase in the waste generated from bazaars during Ramadan. We have doubled our collection trips to maintain the cleanliness of Kuala Lumpur. We ensure the availability of our fleet through scheduled maintenance and high-quality component replacement. The fleets’ performance has also been monitored via route optimization software to identify vehicles that are due for maintenance. Due to these practices, most of our ageing fleets are still in good condition. Sustainable fleets contribute to lower carbon footprints by minimizing greenhouse gas emissions.

* Environmentally friendly fleets
We also budgeted for the new environmentally friendly fleets to deliver impressive services and be prepared for the sudden increase in waste generated due to urbanisation and natural disasters (i.e., post-flood clean-up).

Our compactors or fleets contribute to the large carbon footprint. To improve our fleet utilisation, our Geographical Information System (GIS) team has been using the integrated development environment (IDE) software to construct spatial data comprehensively that covers plan and plot route optimization to optimise delivery routes and schedules, reducing fleet maintenance costs and fuel consumption. Picking up the waste at point of collection on schedules leads to better customer satisfaction and experiences.

- Air quality / pollution- Incinerator technology
Management of solid waste is a complex and crucial procedure. The most effective approach to dispose of solid waste is through a thermal treatment facility (incinerator), which requires less space than a landfill and has fewer issues with methane gas emission, odour and leachate.
However, the high moisture of waste in Malaysia leads to a challenge in operating the incinerators effectively. Additionally, they harm the environment by emitting gases, hazardous compounds, and liquids that leach from trash.
Due to size, location, and landscape constraints, it is more difficult to ensure the sustainability of solid waste management in tourist destinations like Pangkor Island and Cameron Highlands.

*Investing in technology and green assets
The technology utilised in the two plants operated AFES successfully overcomes majority of the issues, and could therefore be implemented in incinerator plants across the nation.

More interestingly, the technology was developed by local experts under the direction of AFES Advisor, Dr. Muhd Noor Muhd Yunus, who was formerly the Deputy Director General of the Malaysian Nuclear Agency.

The team applied their expertise to produce a new incinerator design scientifically, using simulation methods and computer models.

The new design converts the gas cooler to a hybrid innovative heat exchanger and water cooling system (water quencher), successfully overcoming the issue of choking and blockage in existing gas coolers. Besides meeting the requirements of Department of Environment (DOE), an outstanding zero liquid waste discharge is achieved by reusing treated leachate water for quenching purposes.

- Water quality/pollution
The demand for clean water pressures on municipal water supply. In response Alam Flora is committed to mitigating our impact on the environment by encouraging the proactive water initiatives such as install of low-flow faucet aerators in toilets and rainwater harvesting for floor cleaning as well as water supply for lorry tankers.

*Rainwater harvest
We started our rainwater harvest projects in year 2016. The investment cost was around RM111,742 to install the systems at location below:
i. Mustering Point (MP) Jalan Bunus, WPKL
Date of completion: 29 February 2016
Usage: For washing
ii. Mustering Point (MP) Bandar, Kuantan
Date of completion: 26 October 2018
Usage: For washing
iii. Mustering Point (MP) Tiong Nam, WPKL
Date of completion: 16 May 2019
Usage: For washing
iv. Depoh Batu Muda, WPKL
Date of completion: 1 September 2019
Usage: Water supply for lorry tankers
v. Fasiliti Inovasi Kitar Semula (FIKS), Putrajaya
Date of completion: 20 February 2020
Usage: For toilet flushing and washing
vi. Mustering Point (MP) Taman Gelora, Kuantan
Date of completion: 7 June 2020
Usage: For washing
vii. Mustering Point (MP) Kampung Baru, WPKL
Date of completion: 10 November 2018 (Dismantle and relocate to Lot 513A)
Usage: For toilet flushing and washing
viii. Mustering Point (MP) Kampung Baru, WPKL
Date of completion: 24 May 2022
Usage: For toilet flushing and washing

- Embrace the technology and innovation into our supply chain management
Alam Flora also encourages vendors and suppliers to upgrade their technology to improve their capabilities to further help reduce pollution from the company’s projects. These innovation and technology initiatives may add value to them in improving their credit facilities for their operations.

This section should be read in conjunction with Malakoff’s Annual Integrated Report for the same reporting cycle.

Carbon footprint is the standard way of measuring and reporting the environmental impact from our operations including fleets and offices. One strategy to lessen the carbon footprint and operation cost is to lower the use of energy.

As of September 2022, we see a reduction of the energy consumption by 13% compared to 2021 for two mini incinerators in Cameron Highlands, Pahang and Pulau Pangkor, Perak. The carbon emission also reduces 3.3% per waste tonnage. Our technology built for the incinerators met Department of Environment’s standards.

The mini incinerators are operating with mix energy, which are diesel and electricity. In 2022, the fuel consumption was recorded at 164,238 litres (2021: 233,538 litres), emitting 10,415 tCO2e (2021: 10,699 tCO2e) which reduced by 29.7% and 2.7% respectively. In 2022, the electricity consumption was recorded at 1,292,625 kWh (2021: 1,439,219 kWh), emitting 897 tCO2e (2021: 999 tCO2e), both reduced by 10.2%. In 2022, we are able to see the reduction of GHG emission for energy by 3.2% per waste tonnage. The total GHG emission recorded a decrease by 3.3% with 11,312 tCO2e in 2022 (2021: 11,698 tCO2e). The GHG emitted around 0.61 tCO2e in 2022 and 0.63 tCO2e in 2021 per waste tonnage. (GRI 302-1 Energy consumption within the organization, GRI 305-1 Direct (Scope 1) GHG emissions, GRI 305-2 Energy indirect (Scope 2) GHG emissions, GRI 302-4 Reduction of energy consumption)

Our technology such as AD contributes 35m³ of biogas or the renewable energy which could be used to operate the internal facility-conveyor belts for four hours of consumption. Our food waste was around 44% of the overall total waste collected and it will continue to increase. Through AD technology, food waste from Putrajaya is collected and screened to remove the impurities that can damage the AD. The 500kg of food waste per day is converted into biogas that becomes a source of renewable energy for the internal electricity consumption. As of September 2022, AD consumed 10,520 of non-renewable energy to generate 1,014 m³ of biogas. AD emitted a total of 7.63 tCO2e of greenhouse gases in 2022, with 0.53 tCO2e per tonne of food waste. (GRI 302-1 Energy consumption within the organization, GRI305-2 Energy indirect (Scope 2) GHG emissions)

As of September 2022, the electricity consumption for office operations in Alam Flora group was recorded at 2,945,556 kWh (2021: 2,856,259 kWh), emitting 2,044 tCO2e (2021: 1,982 tCO2e) which accounted for 3.1% increase. The total GHG emission recorded an increase by 3.1% with 2,044 tCO2e in 2022 (2021: 1,982 tCO2e). The GHG emitted was around 0.67 tCO2e in 2022 and 0.65 tCO2e in 2021 per employee. (GRI 302-1 Energy consumption within the organization, GRI 305-2 Energy indirect (Scope 2) GHG emissions)

We started our electric vehicle (EV) pilot project to our support vehicle and equipment such as mini road sweeper, blower and grass cutter. In 2022, we budgeted around RM500 million to upgrade our fleet’s engine that estimated to reduce 20-30% of GHG emission per litre. Maintain our asset's and facility’s maintenance programme to ensure the efficiency of energy consumption. As of September 2022, the diesel consumption of Alam Flora group was recorded at 5,358,455.16 litres (2021: 5,763,446.03), emitting 16,808.67 tCO2e (2021: 18,079.07 tCO2e), showing a decrease of 7%. We can see a 3.2% increase in petrol consumption with 153,620.70 litres (2021: 148,840.17 litres), emitting 386.73 tCO2e (2021: 374.69 tCO2e). (GRI 302-1 a. Energy consumption within the organization, GRI 305-1 Direct (Scope 1) GHG emissions)

Sustainable Value Chain
We ensure that all new vendors and suppliers are screened based on environmental criteria (i.e., ISO 9001 Quality Management, ISO 14001 Environmental Management and ISO 45001 Occupational Health & Safety certifications). (GRI 308-1 Percentage of new suppliers that were screened using environmental criteria)

The demand for clean water pressures on municipal water supply. In response Alam Flora is committed to mitigating our impact on the environment by encouraging the proactive water initiatives such as install of low-flow faucet aerators in toilets and rainwater harvesting for floor cleaning as well as water supply for lorry tankers. (GRI 303-1 Interactions with water as a shared source)
As of September 2022, water consumption in Alam Flora group was recorded at 122,074 m³ (2021: 201,238 m³), showing a reduction of 39.3%. The water consumptions were around 40 m³ in 2022 and 66 m³ in 2021 per employee. (GRI 303-5 Water consumption)
We have 7 rainwater harvest systems with the overall capacity of 28,033 litres. In 2022, the potential water collected, withdrawn and consumed approximately 5,009,882 litres. (GRI 303-3 Water withdrawal, GRI 303-4 Water discharge). The biggest system is in Depoh Batu Muda due to high water supply requirement for high pressure water jetters, and the system is part of our water security for clean water.

Our incinerators technology has zero leachate discharge.
We benefit our stakeholders, especially the local community via supporting biodiversity in our local communities operate. Leachate that discharges from the MSW causes significant threat to surface water and groundwater. Besides that, the leachate also caused an awful smell and contributes to bad health and well-being.
Leachate can be defined as a liquid that passes through a landfill and has extracted dissolved and suspended matter from it. Leachate results from precipitation entering the landfill from moisture that exists in the waste when it is composed.
Our incinerators technology has zero leachate discharge as the leachates are being treated and reused for flue gas cooling process in water quenching system. The treated leachate from the treatment plant is used as one of the water supplies to lower the flue gas temperature to approximate 200°C from 850°C-1000°C after combustions.

Our circularity measures, to prevent waste generation and to manage significant impacts from waste generated are: (GRI 306-1 Waste generation and significant waste-related impacts, 306-2 Management of significant waste-related impacts)
(1) collaboration in the value chain and business model innovation via policies for procurement from suppliers that have sound waste prevention and waste management criteria;
(2) end-of-life interventions by establishing and improving facilities for waste management, including facilities for the collection and sorting of waste. The net waste handled in Alam Flora group was 1,030,502 tonnages in 2022 and 1,131,000 tonnages in 2021. We also measure the recycling activity within our operations via 3R (Reduce, Reuse and Recycle) programme. This 3Rs is embedded to our employees’ KPI with the individual target of not less than 45kg of recycled waste per year.

Net Zero Carbon Emissions goal by 2050
As part of the Malakoff Corporation Berhad (MCB) Group, we are guided by MCB Group’s Net Zero Carbon Emissions goal by 2050 using science-based targets and by setting clear goals to increase revenue contribution from renewable energy and environmental solutions as well as to reduce waste.
The new Sustainability Framework, which was established at the beginning of 2022, will enable us to track and improve our sustainability performance. Nine impact areas have been identified, with three impact areas in each pillar, addressing issues from climate change to employee safety and well-being as well as corporate governance.

Tracking the performance that aligning with the MCB’s framework:
a) Climate Change
Reducing our Greenhouse Gas (GHG) emissions and moving towards a low-carbon system by transitioning to Renewable Energy (RE) & Environmental Solutions
b) Circular Economy
Reducing overconsumption, designing out waste & regenerating the ecosystem
c) Water Security
Improving the efficiency of water usage & long-term supply of water in water-stressed regions

Alam Flora Sdn. Bhd. (Alam Flora or Group) is a subsidiary of Malakoff Corporation Berhad (MCB), Malaysia’s leading Independent Power Producer (IPP) listed on the main market of Bursa Malaysia.

We have a zero-tolerance policy towards any form of bribery by, or of, its employees or any persons or companies acting for or on behalf of Alam Flora Group. Our Anti-Bribery Policy & Framework is in line with international guidelines and established in accordance with the Guidelines on Adequate Procedures issued by the Malaysian Anti-Corruption Commission (MACC) pursuant to Subsection (5) of Section 17A of the Act.

We value honesty, integrity, and fairness in all aspects of our business and expect the same from those with whom we do business. We are committed to combating bribery and unethical business practises in the jurisdictions in which we operate. As a result, employees and any parties acting for or on behalf of the Group are strictly prohibited from directly or indirectly soliciting, accepting or offering bribes in relation to AFSB Group’s businesses and operations.

Our Anti-Bribery Policy Statement is implemented at all levels within the Company and sets the right “tone from the top”. It is available on our corporate website.

We conducted our materiality matters research assessment on 17 companies, including the top 15 waste management companies in the world. According to our findings, the majority of companies prioritised anti-corruption and business ethics. Under the governance pillar, our materiality ranked the following items: (1) anti-corruption; (2) business ethics; (3) supporting and respecting human rights, (4) public disclosures of policy and practices; (5) data privacy and security; (6) supply chain management; (7); and (8) political advocacy and contribution.

A formalised Anti-Bribery and Anti-Corruption programme has been established for 2022-2024 and is being implemented throughout the Group. This programme which was approved by Alam Flora’s Top Management and presented to the BAC on 22 April 2022, is managed by the Risk Management and Integrity Department (RMID). RMID is authorized and responsible for the anti-bribery compliance function.

RMID monitors and reports to the Board Audit Committee (BAC) and Top Management on the effectiveness of the organization’s anti-bribery policy and its related policies and collaborates with the Board of Directors, Top Management, and relevant functional areas, including the Anti-Bribery related policy owners, to ensure the adequacy of controls with issues relating to integrity and bribery at all levels.

Anti-Bribery Policy and Framework has set out the roles and responsibilities of the Anti-Bribery related policy owners:

Department: Group of Internal Audit
Responsibilities of the Anti-Bribery related policies: Whistle-blower policy
Method of communication: Corporate website

Department: RMCID
Responsibilities of the Anti-Bribery related policies: Anti-Bribery Policy and Enterprise Risk and Management Policy
Method of communication: Awareness via Anti-Bribery programme to employees and vendors/suppliers/ contractors

Department: People Capital Resources
Responsibilities of the Anti-Bribery related policies: Code of Conduct, Gift & Business Courtesy Policy, Employee Handbook, Manpower Planning and Recruitment Procedure
Method of communication: Group’s portal intranet

Department: Procurement
Responsibilities of the Anti-Bribery related policies: Procurement Guideline and Procedure
Method of communication: Internal memo to employees and briefing session with vendors/suppliers/ contractors

Department: Finance
Responsibilities of the Anti-Bribery related policies: Limit of Authority (LoA) and Related Party Transaction (RPT)
Method of communication: Internal memo for LoA and Integrated Annual Report of Malakoff Corporation Berhad for RPT

This section should be read in conjunction with Malakoff’s Annual Integrated Report for the same reporting cycle.

The Board of Directors and Top Management are committed to implementing and enforcing effective and robust policies and procedures to prevent, monitor and eliminate bribery, and to continually improve AFSB Group’s Anti-Bribery Management System.

Corruption Risk Assessment (CRA) is conducted within Alam Flora Group and its subsidiary by each respective department to identify any significant risk related to all operations. (GRI 205-1 Operations assessed for risks related to corruption)

In regard to the communication and training, the Anti-Bribery Policy was communicated to all employees via emails and a survey was conducted across the Group’s material businesses which are in HQ, Shah Alam, Selangor, Pahang, Kuala Lumpur and Putrajaya. The results of the survey will be used to focus interventions on specific areas required to enhance our programme further. On 27 September 2022 a briefing session on Section 17A Corporate Liability Malaysian Anti-Corruption Commission was conducted at Glenmarie Golf & Country Club, Glenmarie, Shah Alam. There were 89 of participants including the Top Management attended to the briefing. Our Chairman, Tan Sri Abu Kassim bin Mohamed, accompanied by our CEO, Dato’ Haji Mohd Zain bin Haji Hassan were also presented to the session. The briefing was conducted by Tn. Jayantha Kumar Sen Gupta, the Deputy Head of Private Sector Management at the Community Education Division from Malaysia Anti-Corruption Commission (MACC). RMID conducted awareness sessions with 41 vendors and suppliers from Kuala Lumpur, Putrajaya and also in Kuantan during the recent Vendors' Interface Townhall 2022, organised by the Fleet & Engine Department on 23 August and 5 September 2022. (GRI 205-2 Communication and training about anti-corruption policies and procedures)

Whistleblowing mechanism
The Board Audit Committee has the overall responsibility over this policy and shall oversee the implementation of this policy. The Head of the Internal Audit Department is responsible for the administration, implementation of this policy and will include but not limited to establishing relevant Standard Operating Procedures to support the effective implementation of this policy. This policy and the provisions herein may be reviewed and amended whenever necessary to ensure its effective implementation. Any amendment to this policy shall be made by the Head of Internal Audit Department, subject to approval by the Board of Directors. (GRI 2-26 Mechanisms for seeking advice and raising concerns)