Chemical Company of Malaysia Berhad Sustainability Report 2018

Our Commitment To Sustainable Environmental Practices At CCM Chemicals, the risk of chemical spills or leaks may come from our Pasir Gudang Works (PGW) and Shah Alam plants. The spill or leak could come from liquid products, fumes or chlorine gases. Thus, mitigation plans are in place at the design stage for the fabrication of all the relevant plants. At PGW, the emergency absorption tower and scrubber system are the two main features that will absorb any gases and fumes released as a result of pressure difference. These gases and fumes are then treated before being released into the atmosphere. There is also the risk of liquid products such as hydrochloric acid, caustic soda and nitric acid spilling out of their containers. Therefore, all storage tanks are located within a secured bund wall to contain any spillage. In the event of spillage, the spillage is directed to the effluent treatment system. All online processes and operations are controlled and monitored via the Distributed Control System to enable operations personnel to identify and respond immediately to any unexpected events. RESPONSIBLE SCHEDULEDWASTE MANAGEMENT [306-2] All scheduled wastes generated from our operations are being managed responsibly in terms of their generation, storage, transportation and treatment. Scheduled wastes are collected by a licensed waste contractor that has been approved by the Department of Environment, Malaysia (DOE). The generation of wastes for 2018 is presented as follows. Division Waste type Amount of waste (MT) Polymers • SW 204 • SW 409 • SW 410 • SW 429 • SW 401 98.43 Chemicals • SW 106 • SW 201 • SW 106 • SW 421 • SW 110 • SW 422 • SW 204 • SW 429 • SW 305 • SW 206 • SW 408 • SW 109 • SW 410 1,786 MONITORING OF EFFLUENT DISCHARGE [303-2, 306-1] In line with our commitment to ensure that our effluent discharge is safe for the environment and does not affect human health, we comply with the DOE’s stringent regulatory standards. Our effluent discharge is treated prior to discharge through chemical and biological treatment. In this regard, all the Group’s manufacturing plants are equipped with a wastewater treatment plant. In 2018, we discharged 290 m 3 and 91,551 m 3 of effluent from our Polymers and Chemicals operations respectively. WATER INTAKE AND CONTROL MEASURES [303-5] Water is one of the key resources in our operations and our product manufacturing process is dependent on this resource. Nevertheless, we are continually striving to minimise water usage in our operations and throughout our supply chain in order to protect the environment, reduce costs and ensure our future remains resilient. We acknowledge our responsibility to use and manage water sources efficiently and sustainably. As per the graph below, we managed to reduce our water consumption in 2018 by introducing several water-efficient processes and technology. Total Suppliers Water Consumption (m 3 ) 3Rs PolymerWashedWater in MT andWashedWater Savings in RM 2017 2018 688,484 429,806 RM342,700 RM688,484 RM726,492 Reused Quantity (MT) Saving (RM) 131.8 256 279 Chemicals 664 63 218 9 Polymers Local Foreign 34 SUSTAINABILITY REPORT 2018

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