We recognise that strong and good governance is fundamental to achieving long-term sustainability. At Tan Chong, we are committed to the highest standards of corporate governance and the achievement of long-term sustainable value for our shareholders. The Board of Directors is responsible for strategic direction of the Group and the implementation of policies to ensure good corporate governance.
Sustainability Governance
Structure And Responsibilities
Board Of Directors
- Ultimately responsible for the oversight of the Group’s sustainability journey, including EESG integration and its execution, ensuring accountability and transparency of the Group’s ethical and social responsibility footprints.
- Reviews updates on material issues, developments and progress reports on a quarterly basis, so as to monitor achievement of the Group’s sustainability targets.
Board Risk Management And Sustainability Committee ("BRMSC")
- Comprises six (6) board members entrusted by the Board of Directors with specific terms of reference to assist the latter in overseeing the EESG agenda, including making recommendations of action plans for the Board’s consideration.
Risk Management and Sustainability Committee ("RMSC")
- Provides strategic direction and support in the development and execution of the Group’s sustainability strategies, targets and initiatives as well as regularly reviews the actions and outcomes.
- Drives the Group’s sustainability focus areas to ensure alignment with Group’s sustainability efforts, review of sustainability policies, issues and monitoring the effectiveness of sustainability plans and Key Performance Indicators (“KPIs”).
- Oversight of the implementation of sustainability strategies, coordinates and communicates sustainability initiatives to promote awareness of such initiatives, both internally and externally.
- Drives performance through target setting and measurement of KPIs and engaging with internal and external stakeholders in ensuring effective execution of planned initiatives.
- Reports to the BRMSC, discusses sustainability matters and monitors emerging sustainability trends.
Sustainability Working Committee (“SWC”) & Group Risk Management And Sustainability Department (“GRMS”)
- SWC and GRMS jointly work together as an active taskforce delegated by the Chairman of RMSC to perform the materiality assessment and submit to RMSC and BRMSC for review and Board of Directors for approval.
- Implement sustainability strategies, coordinate and communicate sustainability initiatives to promote awareness of such initiatives, both internally and externally.
- Review the sustainability matters yearly, propose to RMSC for consideration and decision for any changes and need for reassessment of materiality matters.
- Facilitate and guide business units on the directives given by the Chairman of RMSC in relation to sustainability strategies and plans.
- Monthly monitoring of sustainability KPIs and BURSA’s common indicators with quarterly reporting to RMSC and BRMSC.
Business Units And Functional Support Groups
- Owners of sustainability initiatives and their implementations.
- Determine and track performance metrics and targets by identifying, assessing and implementing sustainability initiatives and programmes planned.
- Review the effectiveness of relevant policies based on their materiality, including initiatives undertaken.
The Administrator
- Active involvement with Business Units and Functional Support Groups in gathering and analysing key performance data to ensure meaningful disclosure.
- Entrusted to engage with internal and external stakeholders to elicit feedback to determine sustainability matters that are material to TCMH.
Good Corporate Governance
The Group’s Governance Framework is supported by the Group’s policies, in particularly the following, when we engage with our stakeholders. We also conduct awareness programmes on Anti-Bribery and Anti-Corruption Policy and put in place whistleblowing mechanism for employees, key suppliers and vendors. The Corruption Risk Assessment Framework was formalised to help business units evaluate and address potential corruption risks, guided by the Risk-Based Anti-Corruption Due Diligence Guidelines when conducting due diligence on both existing and newly onboarded business partners in our supply chain.
Charter And Policies
Policies
Information Security
We embrace a robust and effective information technology governance system and framework to minimise/mitigate cybersecurity threats, ensure better data protection and business continuity.
Our Approach
- Firewalls, endpoint threat detection systems, network monitoring, etc
- Mandatory cybersecurity awareness training and annual assessment for all employees
Supply Chain Management
We aspire to incorporate sustainability into our supply chain practices with the aim of reducing our environmental footprint and ensuing conformance with related regulatory requirements.
Our Approach
- Support local suppliers especially the small and midsize enterprises and local communities to stimulate local economy.
- Schedule regular supplier performance evaluations to assess and ensure the quality of products and services, while strengthening supplier relationships
- Optimise supply chain processes (planning, sourcing, manufacturing, delivery and returns) to reduce costs, improve efficiency, and ensure timely delivery
- To gain a competitive advantage by minimising waste, reducing costs, and improving customer satisfaction through effective supply chain management
Business Continuity And Long-Term
Value Creation
We are steadfast in our commitment to providing long-term value creation to our shareholders via strategic initiatives to stimulate financial stability and revenue growth.
Our Approach
- Continuously map out the long-term strategic directions to attract investors and drive long-term return growth for all stakeholders
- Optimise asset utilisation and capital allocation to achieve better ROA and maximize shareholders’ values