Chemical Company of Malaysia Berhad Sustainability Report 2019

| Our Commitment to Sustainable Economic Practices | In RM million 2018 2019 Revenue 395.9 385.2 Economic value distributed 370.2 384.2 Operating costs 285.8 316.6 Employee wages and benefits 37.3 35.3 Payments to providers of capitals 26.1 21.8 Payments to government 20.9 10.3 Community investment 0.1 0.2 Economic value retained 25.7 1.0 INNOVATIVE DEVELOPMENT [102-2] Sustainability-driven innovation, with its end goal of significantly reducing costs and waste, does much to improve business operations and make operational processes more efficient. At CCM, we continue to integrate innovative practices into our organisation’s business operations and are successfully deriving tangible benefits. In FY 2019, we continued to implement existing innovative practices as well as introduce several new measures relating to climate change that saw us successfully reducing our energy consumption, carbon footprint and water intake, among other things. The finer details of these initiatives can be found in the ‘Our Commitment to Sustainable Environmental Practices’ section of this Report. Our Polymers Division is focused on creating new markets by developing innovative raw material alternatives under a long-term product development strategy that aims to identify and formulatedisruptive products. The Division also leverages on alternative supplies to maintain multiple raw material sources. This ensures limited if not zero disruption which goes a long way in satisfying product output and customer demand. The Polymers Division has also set its sights on developing other emerging value- added products that cater to customer requirements via making improvements to its product formula. Now that an advanced new ultra-modern laboratory with cutting-edge equipment for polymers R&D is in place, this will help the Polymers Division to intensify and fast-track new product development as well as testing and developmental activities for industries beyond the gloves sector. The CCM Innovation Challenge (CCM IC) is an annual platform that serves to drive and showcase the culture of innovation within CCM. The event helps hone idea generation, innovative thinking, problem-solving and business-pitching skills among our employees. Prior to the main CCM IC event on 21 August 2019, participants underwent innovation training from 27-28 June 2019 as well as a follow-up coaching session for each group. Four groups (one form each of CCM’s sites) took part in the CCM IC held at Reka Scape in Cyberjaya with each group brainstorming and pitching their ideas to the judges: • Team 1 from CCM Chemicals PGW presented their ‘Integrated Conveying System’ concept that sought to alleviate the stress of manually rolling heavy chlorine drums on day-to-day basis by automating the current process. • Team 2 from CCM Chemicals Shah Alam showcased their ‘Zero Waste for Calcium Nitrate Production’ idea that sought to re-use waste in calcium nitrate production to create revenue generating products. • Team 3 from CCM Polymers came up with their ‘EcoZyme’ project involving the use of a cultured solution of micro-organisms that secrete enzymes capable of breaking down plastics to its raw form which is then used to make new, high quality plastic that is self-regenerative and sustainable. Finally, • Team 4 from CCM Berhad presented their ‘Wellness Accelerator Programme’ that encompassed social, health and financial management features all on the one platform. 34 CHEMICAL COMPANY OF MALAYSIA BERHAD