Chemical Company of Malaysia Berhad Sustainability Report 2018

Our Commitment To Sustainable Environmental Practices Energy Reduction Through Electrolyser and Membrane Efficiency • Upgrading of electrolyser technology from NCS electrolyser to NCH electrolyser. • Significant reduction in power consumption by replacing the NCS electrolyser with a NCH electrolyser. • These efforts have resulted in a higher performance membrane in Chlor- alkali manufacturing. Additionally, we have set ourselves the goal of reducing our emissions as much as possible by switching to renewable energy. CCM Chemicals, Pasir Gudang Works (PGW) has embarked on a dual-fuel boiler project by utilising excess hydrogen as an alternative fuel source for boiler operations instead of using natural gas alone. While hydrogen gas generated from the chlor-alkali manufacturing process is upcycled to produce hydrochloric acid, there is still a significant excess that will be released into the atmosphere. By embarking on this project, the natural gas consumption for the boiler fuel source has been reduced by 33.3% against the requirement. This translates into some 1,376 MT of carbon dioxide equivalent (CO 2 e) that was not emitted into the atmosphere from natural gas consumption. Relatively, a total of 1.952 million Nm 3 of hydrogen has been used to fuel the boiler and prevent unnecessary emission. Reduces natural gas consumption by 33.3%, which when converted to CO 2 e, avoids 1,376 MT of emission! To keep track of our emission quality, we conduct air quality monitoring of our plants and generator sets. These activities, which encompass ambient air, stack and scrubber monitoring, all comply with the requirements set by the Department of Environment Malaysia (DOE). In addition, our Polymers Division also conducted noise monitoring and personal chemical exposure on yearly basic. MANAGING SIGNIFICANT SPILLS As a leading chemical specialist, we are dealing with huge amounts and various types of chemicals which pose a risk to the environment in the event of spillage. Potential contaminated areas and sources of spill can come from our warehouses, production lines and lab testing. In order to prevent any incidents of spill and to minimise the negative impacts in the event of a spill, we have been implementing multiple control measures and continuously improving these measures. At CCM Polymers, we have implemented control measures and have specified how we can improve each mitigation step so that we have a fool-proof process as listed below. Current control Improvement Gate valve system at strategic location covering point of discharge into external drain. Improvement of chemical storage such as stacking system, bund wall and racking system. Bund wall near internal drain to control direct discharge during spillage. Enhance forklift driver competency through training and awareness to ensure spillage incident are minimised. Awareness to workers including forklift drivers on spillage prevention such as chemical transfer, loading and unloading of chemicals. • Evaluate chemical handling with high risk of spillage incident. • Evaluate existing HIRARC on each process. Spill kit for spillage emergency response. Evaluate operations’ processes which have potential spillage incident. 33 CHEMICAL COMPANY OF MALAYSIA BERHAD