OUR SUSTAINABILITY APPROACH
QES endeavored for FYE 2023 to intensify the Group’s environment, social, and governance (“ESG”) in line with Bursa Malaysia Securities (“Bursa”) enhanced sustainability reporting requirement in the Main Market Listing Requirements (“MMLR”) with the aim to elevate our sustainability practices and disclosures. QES truly believes that by adopting ESG and sustainability practices, we will still be able to develop innovative products, achieve operational profitability, providing sustainable solutions for our stakeholders while contributing to a positive societal change, in enabling the Group to succeed now and in the future.
Sustainability Governance
We firmly believe that a robust governance structure is vital to implement our sustainability strategy across the Group to strengthen relationships with stakeholders and enhance overall accountability in our business operations. QES’s Sustainability Steering Committee (“SSC”) was established in 2019 and chaired by the Group Managing Director to drive sustainability measures and initiatives. He is supported by a team of key management personnel in implementing strategies towards achieving sustainable performance for the Group. Below is a snapshot of QES’s sustainability members and their respective duties:-
Board of Directors & Chairman of SSC | The Board of Directors has oversight on sustainability. Strategies related to ESG are also presented and determined at the Board level. This includes matters like integrity, anti-corruption & bribery, code of conduct, occupational health and safety, talent management, risk management, proposals and budgets for environmental and social measures and implementation. |
Sustainability Steering Committee Executive Director VP of Distribution Division VP of Manufacturing Division Business Unit Director Senior GM of Supply Chain Management Senior Corporate HR Manager GM of Finance | Setting the Group’s sustainability strategy goals to the long term business growth and objectives which have been approved by the Board. Conducting a thorough assessment of the ESG risks and opportunities relevant to our industry and business operations. Identify the environmental and social impacts of our operations, as well as the governance practices that may affect our business performance and reputation. Developing the materiality matrix and reporting systems to measure and track our Group’s ESG performance. |
Sustainability Working Committee | Comprises of the various department heads within the Group and employees who are passionate about ESG. Tasked with ensuring that strategies and plans affirmed by the SSC are implemented. Monitors progress of sustainability initiatives, activities and targets, and reports to the respective heads of the SSC. |
Materiality Assessment
We have considered and reviewed the material matters relating to the three (3) pillars – environmental, social and governance. We identify our material sustainability matters through a materiality assessment that focuses on ESG and considers our stakeholders’ interests through regular engagement. Thereupon, the key material matters are reviewed by our Board and the SSC to ensure that the material matters are aligned with our sustainability ambition.
We identify relevant material sustainability matters through linking to the SDGs and we are striving to fulfil our nine (9) ESG Core Themes to drive SDGs through our business.
As part of our efforts to improve the sustainability framework, we re-prioritized the materiality assessment to identify material sustainability issues and ranked them based on their significance to its business and stakeholders.
Stakeholder Engagement
At QES, we believe that consistent communication and understanding with all internal and external stakeholders is critical in our journey to become a reputable, long-term company with good corporate governance. The Group maintains ongoing dialogues with pertinent stakeholders and shares information in a timely, effective, and transparent way. The invaluable input from our stakeholders guides our company as we strive to become a responsible corporate citizen. To accomplish meaningful engagements that meet the requirements of our stakeholders, we empower and make it our mission for the respective business units to assess the best approach to engage with our stakeholders. We communicate with our stakeholders through a variety of platforms and at varying frequencies, ranging from daily communications to weekly updates to quarterly follow-ups and annual meetings.
Financial Performance
Corporate Governance Practices
Business Strategy
ESG Strategy & Sustainability Goals
We recognize the importance of addressing climate change as part of our long-term sustainability strategy. While we are in the early stages of developing our climate-related initiatives, we are dedicated to making meaningful progress. Our commitment to addressing climate change is also outlined in our Environmental Policy, which is available on our corporate website.
We have initiated the measurement of our operational greenhouse gas (GHG) emissions and have disclosed Scope 1 and Scope 2 emissions data for FY2023. As we progress, we are committed to enhancing our measurement and monitoring efforts, with plans to expand our disclosure to include Scope 3 emissions. Our goal is to embed climate considerations into our strategic planning and operations, ensuring continuous improvement and alignment with sustainability best practices.
We acknowledge the significant impact our operations can have on the environment and are committed to integrating sustainable practices throughout all our business activities.
Given the urgent issues of climate change and environmental degradation, we are focused on reducing our ecological footprint and improving our environmental management practices. This Environmental Policy (the “Policy”) demonstrates our commitment to responsible environmental stewardship and outlines the framework for our sustainability efforts.
The QES Supplier Code of Conduct (hereafter ‘the Code’) is to help us maintain this commitment by setting standards which we expect our suppliers, their employees, agents, subcontractors, and other representatives to respect and adhere to when conducting their business dealings.
The Code outlines standards for ethical behavior by our employees and business partners. It sets out our four key principles and eleven key risk areas, each of which are explained in detail. It explains how compliance is a commitment, and a responsibility shared by all of us.
We are committed to upholding high standards of labour practices that comply with local laws and align with our Environmental, Social, and Governance (ESG) principles. This Labour Standards Policy (“Policy”) outlines our commitment to ensuring fair treatment, safety, and well-being of all employees, while fostering a diverse, inclusive, ethical, and sustainable working environment.
We are committed to the highest standards of ethical business conduct. In keeping with our commitment and in line with good corporate practices, QES has adopted this Code of Ethics and Conduct which sets out the principal and standards of business ethics and conduct of QES.
At QES Group Berhad (“the Company”) and its subsidiaries (“the Group”), we are committed to conducting our business with the utmost legal and ethical standards. We expect our Directors and employees to act with professionalism and integrity in all aspects of our business operations.
This Anti-Corruption and Bribery Policy outlines our dedication to preventing bribery and corruption within the Group. We are proactive in ensuring that our business activities remain free from any corrupt practices, taking all necessary and reasonable steps to uphold this standard.
This policy applies to all entities within the Company, covering Directors, employees, consultants, trainees, agents, suppliers, customers, third parties, and all associated personnel. It aligns with the principles outlined in our Code of Ethics & Conduct Policy.
QES Group Berhad (“the Company”) and its subsidiaries (“the Group”) are firmly committed to the highest standards of corporate governance and business integrity. In line with these values, we offer a platform for both employees and the public to raise concerns or report any improper conduct within the Group, ensuring swift and effective resolution.
Policy Objectives:
This policy defines the criteria for the appointment and re-appointment of Directors to the Board of QES Group Berhad (“QES”) and its subsidiaries. We aim to ensure that each Director possesses the character, experience, integrity, competence, and time necessary to effectively fulfill their responsibilities.
The policy serves as a guideline for the Nomination Committee (“NC”) and the Board during the review and assessment of candidates for Board appointments and Directors seeking re-election. It complies with the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and adheres to the Malaysian Code on Corporate Governance (MCCG) wherever applicable.
SECTION A – Disclosure on Malaysian Code on Corporate Governance
The disclosures in this section are made in accordance with Paragraph 15.25 of Bursa Malaysia’s Listing Requirements, reflecting our commitment to upholding corporate governance standards across the Group.
SECTION B – Disclosure on Corporate Governance Practices Pursuant to Corporate Governance Guidelines Issued by Bank Negara Malaysia
These disclosures, as per Appendix 4 (Corporate Governance Disclosures) of the Corporate Governance Guidelines, are applicable to financial institutions and any listed institutions required to comply with these guidelines. This section reflects our compliance with the governance practices mandated by Bank Negara Malaysia.
2024 @ QES GROUP BERHAD (201401042911)