Chemical Company of Malaysia Berhad Sustainability Report 2018

The table below shows the total energy consumption across the Group for 2017 and 2018. Energy Consumption Unit 2017 2018 Electricity kWh 159,451,990 129,505,917 Fuel Oil (diesel, petrol) Litres 13,200 9,670 Natural Gas Sm 3 3,630,000 3,123,499 Some of our energy usage in 2018 has decreased in comparison to 2017. This reduction in energy consumption may be due to the energy efficiency features that we have implemented throughout our operations. Although the transformation into an energy-efficient operator is often times an expensive exercise, it has the greatest potential for reducing carbon emissions over a long period and will ultimately result in reduced operating costs as well. CARBON FOOTPRINT [302-4, 305-1, 305-5] In complying with the Intergovernmental Panel on Climate Change (IPCC), we began our carbon management programme and carbon footprint reporting back in 2012. Under this initiative, we report our greenhouse gas emissions associated with key operations in our Polymers and Chemical Divisions. Our carbon calculation consists of the consumption of electricity, fossil fuels and natural gas. CO 2 eq (MT) Headquarters Chemicals Polymers 2017 54.3 81,632 255.7 2018 59.6 83,857 251.9 As the operational activities within our businesses increase, our fuel and electricity usage too will naturally rise, thus contributing to an increase in carbon emissions. The rise in emissions in 2018 was largely attributable to our operational expansion and increased production which has been necessary to accommodate increased business demand. Nevertheless, several initiatives has been implemented to minimise the energy usage. At our Polymers Division, we have rolled out several initiatives to mitigate our carbon footprint. We have sought to reduce our electricity consumption via our Operational Excellence Project and have met with good success. Through this project, we were able to save RM17,427 and RM22,920 in 2017 and 2018 respectively. Approximately 94% of carbon emissions from the Chemicals Division comes from electricity consumption for the electrolysis process in chlor-alkali manufacturing. Acknowledging that this process consumes a huge amount of energy, we initiated an energy-saving project in 2015 to help reduce our carbon emissions. This project, which was fully completed in 2016, focuses on the augmentation of electrolyser technology by optimising a higher performance membrane. The energy saving initiatives led to a 5% reduction of carbon emissions in 2018 in comparison to 2014’s reading before the project was started. Our Commitment To Sustainable Environmental Practices 32 SUSTAINABILITY REPORT 2018