Chemical Company of Malaysia Berhad Sustainability Report 2019

| FOCUSED ON STRENGTHENING | SUSTAINABILITY DISCLOSURE As the CCM Group ventures forth, we remain committed to communicating the Group’s financial and non-financial dealings in an open and transparent manner. As we focus our efforts on presenting more comprehensive, clear and concise sustainability disclosures to our stakeholders, we are also gearing up to embed sustainability in a greater measure within our management and operational activities on a Group-wide basis. To date, the Board of Directors, under the guidance of external sustainability consultant KPMG Management & Risk Consulting Sdn Bhd, have come up with a Sustainability Management Framework (SMF) that aims to integrate sustainability within CCM to a greater extent. The SMF will serve as a guide to help the Board finetune its sustainability governance functions, vision, strategies, policies and programmes in a more holistic and robust manner. Under the SMF, the Board will focus its efforts on strengthening these four fundamental areas: the establishment of a more holistic sustainability governance structure; the creation of a sustainability vision on a Group-wide basis; a more robust risk identification and prioritisation process; as well as the rollout of a sustainability implementation plan with short, medium and long-term goals. For a start, the Board has decided that it will focus on these key short-term improvement opportunities: • Greater Board governance and oversight over sustainability matters; • Greater competency in terms of sustainability-related knowledge for the governance structure and organisation through training; • More structured stakeholder engagement and materiality assessment processes; • Greater alignment of sustainability matters with the Group’s business risks with the aim of developing a more robust business strategy; • Greater linkage of material matters to CCM’s existing or new sustainability initiatives; and • The identification of challenges that would restrain CCM from creating value over the short, medium and long-term. The SMF will be applicable to all CCM-operated businesses (i.e. from the Group’s corporate functions and business units to all operational sites and functions under full operational control) and should be communicated and committed by every level of CCM’s management. We believe that the effective implementation of the SMF and short-term improvement opportunities will do much to bolster CCM’s sustainability agenda on a Group-wide basis. Moving forward, the Group will continue to meet its mandate of providing sustainable solutions based on innovative sciences while balancing out its economic ambitions with good environmental and societal considerations. Through collaboration and engagement with local government agencies and regulators, our peers and customers, the community at large and other key stakeholders, CCM intends to help drive sustainability efforts across the chemicals and polymers industries in Malaysia as well as stand out as a role model for responsible corporate behaviour. 67 SUSTAINABILITY REPORT 2019