QL Resources Berhad

The company does not have a science-based emission reduction target.

The company acknowledges the importance of greenhouse gas emissions as a contributor to climate change and discloses its Scope 1 and 2 emissions across business segments for FY2022. It has set a target to reduce its GHG emission intensity by 20% by FY2026 from the base year 2020. Additionally, it is running efforts to increase its share of renewable energy by rolling out a mangrove reforestation and rehabilitation programme. The target only covers its Malaysian operations. It procures raw materials to trade and mill animal feed. Therefore, Scope 3 emissions related to agriculture are relevant. However, it does not disclose whether it has set targets to reduce GHG emissions from Scope 3.

The company does not report engaging with suppliers to reduce emissions from agriculture.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming

The company does not engage in innovative projects to reduce or mitigate emissions from animal farming

The company's combined Scope 1 and Scope 2 emissions for FY2022 are reported to be 99500 tCO2e. Out of the four business segment emissions reported, the highest GHG-emitting business segment is MPM (Marine Products Manufacturing). Since the report covers activities of Malaysia only, the geographic scope is said to be limited to certain geographies.

The total GHG emissions in FY2022 amounted to 99,458 tCO2e. It also discloses the emissions from manure and palm oil effluents (POME) to be 5,261 tCO2e in FY2022. Hence, the exact percentage of emissions produced by manure is still being determined. It does not disclose information regarding emissions from feed production. The company trades and has feed but does not explicitly disclose data about feed farming emissions. It does not disclose information regarding emissions from land-use change.

The company has responded to the CDP climate change questionnaire in 2022. It mentions in its Integrated Report 2022 that it intends to have external assurance of its data in the future.

Scope 1 and 2 GHG emissions for FY2021 are reported to be 107,100 tCO2e, and for FY2022 it is 99,458 tCO2e. As the company discloses the emissions from chicken manure and palm oil separately after adding these emissions, the total figures for FY2021 and FY2022 would be 110,239 tCO2e and 104,719 tCO2e, respectively. Thus, there is a 5% decrease in absolute GHG emissions. It discloses emissions from chicken manure and palm oil effluent totalled 5,261 tCo2 in FY2022, representing a 21.3% reduction from the base year FY2020. However, it does not disaggregate the emissions from manure. Therefore, it is impossible to calculate whether manure emissions have increased or decreased in the reporting period.

The company still needs to conduct a climate-related scenario analysis. However, it acknowledges climate change as a material business risk to its operations. It mentions that weather changes will impact business operations and is constantly looking for ways to improve its response by investing in renewable energy technologies and solutions and managing GHG emissions at all levels.

The company discusses the high feed costs that severely impacted layer farming operations during the lockdown. However, it does not disclose how it intends to mitigate the projected impact of physical risks on feed ingredients' availability and price volatility. It mentions in its Integrated Annual Report 2022 that as a result of the Russia-Ukraine war, energy costs rose upwards in the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company is a vertically integrated poultry producer. It trades and mills feed and raw materials across production sites in Malaysia, Indonesia, and Vietnam. The company discloses that it uses soybean meal and corn as raw materials for animal feed. It discloses a committment to not clear primary forests or areas which contain significant concentrations of biodiversity (e.g. endangered species) or fragile ecosystems, or areas which are fundamental to meeting basic or traditional cultural needs of local communities (high conservation value areas). However, it does not explain how it manages deforestation risks linked to soy. QL Resources does not disclose the origin of its sourced soy.

The company does not disclose having a deforestation/conversion-free target for soy.

The company has submitted its responses to CDP Forests Questionnaire. However, the questionnaire is not publicly available.

The company has a Supplier Code of Conduct. However, there is no mention of deforestation risk.

The company does not disclose how compliance in monitored or what actions are taken if non-compliance occurs. Further, the company does no disclose the level of traceability it has of its soy supply chain.

The company does not discuss innovations and/or practices to move towards sustainable feed sources.

The company states that its aquaculture production facilities hold various certifications, including HACCP, Makanan Selamat Tanggungjawab Industri (MeSTI), and Good Manufacturing Practice (GMP), and, where applicable, comply with the EU regulations. However, no information is found regarding ASC, BAP, SSP, or GlobalGAP certification.

The company does not disclose any information related to feed ingredients and policy.

The company does not disclose that marine and soy ingredients are 100% certified or that it does not source these ingredients. It did not disclose a quantitative decrease in FCR by species, or a decrease in FFDRm/FFDRo. The company does not discloses the absolute volumes of fishmeal/fish oil sourced including a breakdown of sourcing from whole fish vs sourcing from by products. Further, it did not disclose the protein conversion efficiency with calculation methodology and workings.

The company does not disclose its strategy for feed innovation.

The company does not dsiclose the percentage of R&D allocated to novel ingredients development. Further, it does not disclose a target related to feed innovation. It also does not disclose the average EPA and DHA content of salmon it produces.

The company does not disclose information about sea lice management.

The company does not discuss non-medicinal/non-chemical approaches taken to prevent sea lice infestation. It does not disclose investment into cleaner fish husbandry or disclose the mortalities of cleaner fish used.

The company does not disclose any information on escapes.

The company discloses it collaborates with Wetlands International as a mangrove conservation programme strategic partner and that it lanted 1,000 mangrove seedlings in Banjar Utara Forest Reserve, Tanjung Karang, during the reporting period. However, the company does not provide sufficient information on how it aims to manage or reduce biodiversity impact through research and biodiversity projects and does not disclose a time-bound target for ending human-wildlife contact in its operations.

The company does not disclose a management plan in the event of algal blooms.

The company mentions that it is committed to safeguarding water resources and monitors water consumption with a tracking system. However, it does not mention conducting a risk assessment to identify water stress areas. It has reported water consumption for its subsidiaries in Malaysia but not in Indonesia and Vietnam. The company recognises that water is a scarce resource and that water pollution prevention is critical. In FY2020, the company started tracking water withdrawal from its sites. In FY2022, the company increased water meter installation for data collection and enhanced analysis.

The company is investigating water reduction initiatives. The company plans to set a reduction target for water withdrawal intensity. However, the company has not yet set targets to reduce water withdrawals.

The company discloses its water withdrawals by source and discloses its water intensity. The company has submitted its response to the CDP Water questionnaire. It reports a reduction in the water consumed by 12.5% between FY21 and FY22. It also mentions that there is a decrease in the water withdrawal intensity in the reporting period owing to improved water management systems at several sites and increased usage of rainwater harvesting tanks.

The company does not disclose information on water use or water scarcity in the context of feed suppliers in its public disclosure.

The company does not disclose feed water intensity, or the proportion of feed sourced from water stresses areas. Further, the company does not provide evidence that it is investing in sustainable feed production from a water use perspective.

The company states that the initiative has increased the visibility of water consumption at each process and that active data monitoring and analysing have helped to optimise water consumption and reduce water wastage.

The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company mentions that it understands the risks associated with pollution from discharge. It also discloses that it takes strict measures to ensure wastewater from its sites complies with regulatory requirements before discharging wastewater into the environment. However, the company does not explicitly mention whether it had any associated penalties in the reporting year.

The company discloses that it ensures all wastewater discharged complies with respective regulations. The company discloses the average BOD for its palm oil business but not for its animal protein processing facilities. QL Resources discloses the volume of wastewater discharge in FY2022. It has also submitted its response to the 2022 CDP Water questionnaire.

The company does not convert animal by-products from processing effluents into fertiliser and/or biogas. It discloses the average BOD concentration in wastewater discharge for the company's palm oil business. However, the company does not disclose the same information with regard to its animal protein processing facilities. The company discloses a decrease in wastewater discharged from its Malaysian operations last year.

The company does not disclose information related to nutrient management in feed farming.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company has started converting chicken manure into fertilisers at its poultry farms. In FY2022, 95.3% of the total chicken manure was converted to organic fertiliser.

The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.

The company does not disclose undertaking risk assessments to identify high-risk locations. It does not disclose metrics or methods to measure organic and inorganic loading, or disclose the percentage and location of sites that exceed carrying capacity of local environment by operating country. The company also does not disclose measures of nitrogen or phosphorous and does not disclose a stragey to eliminate faecal matter and uneaten feed deposited to the seabed. Further, the company does not state that it it did not discharge of sludge to public waterways in the reporting year.

The company does not disclose the treatment or metrics of effluent pond water. It does not disclose a neutral impact on water, or provide evidence of a community engagement plan.

The company implements biosecurity measures to maintain the health of its animals, but it does not disclose specific information regarding its antibiotics policy.

The company does not disclose the quantity of antibiotics used.

The company mentions stringent controls, good hygiene, and animal husbandry practices focusing on biosecurity. However, it does not disclose an explicit animal welfare policy or commitments on confinement, mutilation, inhumane slaughter, and long-distance transportation.

The company does not state a commitment to engaging and training employees on animal welfare issues.

The company conducts regular quality reviews through internal audits and external parties, including regulators. It also states that its Integrated Livestock Farming (ILF) processes are certified by Malaysian Good Agricultural Practices (MyGAP). However, it does not disclose whether these audits or certifications include considerations for animal welfare.

The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.

The company does not disclose information on crucial material welfare risks.

The company does not disclose any information relating to aquatic animal welfare.

The company does not disclose sufficient information to ascertain if it assures a stocking density of lower than 17kg/m3 for salmon at all times.

The company does not disclose information in relation to the eye-stalk ablation of shrimps.

The company does not disclose mortality, disease incidence, management or prevention information.

The company does not disclose the incident-based mortality.

The company does not disclose the mortality rate for shrimp.

The company does not disclose the direct financial costs linked to the mortality of shrimps.

The company commits in writing to respect internationally recognised Human Rights as established in the ILO's Declaration on Fundamental Principles and Rights of Work.

The company states that it will conduct ongoing human rights and labour standards due diligence to assess and mitigate potential human rights and labour standards infringements. However, the company does not disclose its approach in detail or discuss how it would identify the next steps of action it would take due to the due diligence findings. To mitigate risk, the company conducted a Human Rights and Labour Standards Policy briefing in FY2022, attended by 1,927 employees. However, the company does not mention human rights risk mitigation measures for its supply chain.

The company does not mention if it has identified human rights risks through audits or due diligence.

The company commits in writing to prohibit discrimination, child labour, forced labour and inhumane treatment. However, it has yet to commit to providing fair wages or mention conducting any formal human rights audits. The company's Supplier Code of Business Ethics requires suppliers to prohibit child labour, forced labour and workplace abuse from their operations. However, there is no policy regarding discrimination or requiring suppliers to pay employees a fair wage. In addition, the company does not mention if employees have the right to paid sick leave provided by the company.

The company has an anonymous whistleblowing channel in place for its direct operations, accessible by both employees and external stakeholders. However, it also mentions that whistleblowers are encouraged to provide their identities to facilitate the investigation process. Further, it must disclose whether it was designed in consultation with stakeholders. The company states that in FY2022, one complaint was made via the whistleblowing channel. However, it does not report the exact nature of the complaint and only says it was unrelated to bribery or corruption.

The company commits in writing to provide all employees with a safe, secure and healthy working environment. It is also in the process of obtaining an ISO45001 certification. As of FY2022, the company has progressed to a pilot project on ISO 45001 certification at one of the business units in the ILF business pillar. Certifications are only targeted in select facilities, limiting the geographic scope. The company discloses establishing an occupational health and safety committee in FY2021. However, it does not disclose the % of facilities/sites with health and safety committees with worker representatives.

From FY2021 to FY2022, the company's lost time injury frequency rate per million work hours (LTI) improved from 4.41 to 4.28. Similarly, fatality figures improved from one to zero. The company reports turnover rates segregated by business segments but not disaggregated by seniority level.

The company acknowledges the right to freedom of association of its employees but does not disclose the unionisation rate. The company provides evidence of support for freedom of association but does not have collective bargaining agreements. The company does not impose a strict requirement or expectation for suppliers to adhere to their employees' freedom of association and collective bargaining rights.

The company states it has no collective bargaining agreements in place. The company also discloses the distribution of its workforce across existing contractual agreements.

The company states that its ILF, MPM and CVS business units are certified by the FSSC 22000 certification, which is GFSI-recognised. It derives 22.24% of revenue from the MPM division, 53% from the ILF division, and 12% from the CVS division. Therefore, these three units constitute more than two-thirds of its sites. However, it does not confirm whether suppliers are expected to hold GFSI certification, nor does it disclose the portion of those that do.

The company does not report the number or frequency of food safety audits during the reporting year. Further, it does not specify associated corrective action rates. It does not disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company mentions product quality and safety, affecting reputation as a risk. It also mentions non-compliance with food safety regulations can impact its operating license. However, it does not provide any information on its product recall system. Further, it does not disclose the number of recall incidents in the reporting period; none were detected in the media screening.

The company does not disclose information related to market bans in the reporting period; none were detected in media screening.

The company's board members are responsible for driving the direction of sustainability in the company's business pillars. In addition, with involvement from the board, the company conducted a materiality assessment in 2021 and outlined the process in its public reporting. Seventeen sustainability matters were prioritised, with 12 issues identified as most influential to stakeholders and the business. These issues include waste and effluent management, climate change and emissions, fair labour practices, occupational health and safety, and biosecurity. The company reports holding board-level expertise in food safety and innovation but not food safety.

The company engages with regulators and NGOs as a Council Member of the Chinese Chamber of Commerce. However, the company does not disclose how it engages with these organisations on ESG issues. Further, it does not provide a complete list of trade associations, alliances and coalitions it is part of or discuss aligning its policy-engagement strategy to restrict global temperature rise to 1.5°C.

The company does not disclose a strategic approach to sustainability innovation or state whether it benchmarks itself against peers in sustainability and innovation.

The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources

The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.