Tan Chong Motor Holdings Berhad

logo_tcmh-amend-new
Littleman Icon
Sustainability Framework

Tan Chong Motor Holdings Berhad employs a structured approach to embed sustainability principles into operations and decision-making. This entails assessing current practices, setting goals, implementing strategies, measuring progress and involving stakeholders. The aim is to align business activities with economic, environmental, and social sustainability objectives.

Sustainability Highlights

(As at 31 December 2023)

highlights

Our Approach To Sustainability

9 United Nations Sustainable Development Goals (“UNSDGs”)" Adopted by Tan Chong

approach 3
approach 4
approach 5
approach 8
approach 9
approach 10
approach 12
approach 13
approach 16

Our Purpose Statement

driving resilience

The Group is fully committed to the responsibility of ensuring and providing solutions to facilitate social progress, environmental equilibrium and economic growth through a strong governance structure. Sustainability is an integral part of our DNA and our stance towards the development of sustainable solutions has never wavered. We will strive to realise our full potential in creating long-term value – both in profitability and sustainability for our stakeholders, across present and future generations, impacting positively the lives we come in contact with along the way.

The Group regards sustainability as fundamental towards creating long-term value to shareholders and other stakeholders. Ultimately, we accentuate on embracing robust EESG practices, which are aligned to the UNSDGs. TCMH’s Core Values (“TCFIMPeD”), which span across seven (7) focal areas, serve as the foundation of the Group’s Sustainability Framework. We remain vigilant in supporting our stakeholders’ interests in the greater community we serve.

icon glasses

Sustainability
Vision

To provide information about sustainability initiatives to help realise the goals of a sustainable organisation and society

icon arrowboard

Sustainability
Mission

To develop a sustainability roadmap, increase engagement with our stakeholders, improve on resource allocation through understanding of the EESG agenda and make proactive and continuous adjustments to our sustainability strategy.

Materiality Matters & Themes

Materiality Assessment

TCMH is cognisant of the fact that our material issues can directly or indirectly impact our ability to create long-term value for our stakeholders and at the same time, define our business strategy and decision making process. ​​

Phase 1

Evaluating the current business environment and reporting landscape. Identifying current EESG issues that we can help to manage and mitigate.

Phase 2

Prioritisation of the material issues via materiality assessment (engaging internal and external stakeholders).

Phase 3

Validation, review and endorsement of the identified issues by Risk Management and Sustainability Committee, Board Risk Management and Sustainability Committee and the Board of Directors.

While we aim to conduct a comprehensive materiality assessment once every 3 years, we undertake an annual review of the relevance of our previously prioritised economic, environmental, social and governance impacts arising from our day-to-day activities.

A full scale materiality assessment was conducted in 2022 for both our key internal and external stakeholders to ensure that their interests and concerns were addressed in our business strategies.​

graph

Economic

EC1 Financial Stability and Revenue Growth

EC2 Optimum Assets Utilisation and Capital Allocation

EC3 Sustainable Productivity

EC4 Succession Planning and Bench Strength

EC5 Convenient After-Sales Service

EC6 Customer Outreach

EC7 Automation and Digitalisation

EC8Innovation and Value-Added Services

Environmental

EN1 Environmental Compliance and Regulation

EN2 Emissions, Waste and Effluent Management

Social

S1 Community Engagement and Empowerment

S2 Diversity and Inclusiveness

S3 Human Rights

S4 Talent Development and Retention

S5 Employees’ Safety and Well-Being

Governance

G1 Information Security

G2 Good Corporate Governance

G3 Supply Chain Management

Based on feedback gathered from stakeholders, the Group has categorised the priority for material matters into 3 levels, which are elaborated below:​

Level 1

Strong emphasis and focus on the materiality approach to closely align with the Group’s Enterprise Risk Management and business strategy, aiming to attain desired outcomes for all stakeholders.

Level 2

Close monitoring and continuous efforts are deployed to drive process improvement towards achieving the desired results. Demonstrate a proactive approach to risk management, climate action, social and governance issues and long-term strategy.

Level 3

Develop a long-term plan and prioritise to address every conceivable EESG issue and managing the impacts through risk mitigation and maximising opportunities.

TCMH's 6 Sustainability Material Themes

Innovation And Digitalisation

Technology adoption to improve efficiency, speed and quality in service and product delivery, innovation in enhancing connection witth customers.

A Green Future

Committed to environmental sustainability matters in every market we operate in.

Employees’ Safety And Well-Being

To ensure the safety and well-being (physical and mental) of all employees.

sutain chart

Long-Term Value Creation

Mapping out long term strategic direction to realise the Group’s long term sustainability on assets through optimal resource allocation.

Governance Responsibilities

To achieve business objectives while maintaining ethical standing and comply with best practises in corporate governance in the eyes of shareholders, regulators and the wider community.

The Human Connection

We connect with the surrounding communities through social engagement and aim to empower, and strengthen them via a pertinent Corporate Social Responsibilities activities.

Level

Ranking By Importance

Material Matters

Description

Information Security

Protection of all data, information and intellectual property against cybersecurity breaches.

Employees’ Safety and Well-Being

Providing for the health, safety and well-being of our employees in ways that address key challenges and bring positive development to their livelihood in the workplace. It covers all aspects of working life, from the quality and safety of the physical environment, to how workers feel about their work and their workplace environment.

Good Corporate Governance

Upholding good Corporate Governance practices.

Supply Chain Management

Consideration of EESG factors across supply chain management and processes.

Emissions, Waste and Effluent Management

Aspiring towards the circular economy within our operations, supply chain waste management and reducing CO2 footprint.

Human Rights

Adherence to human rights standards across all operations.

* The sustainability matters EN2 and S3 were reclassified to Level 1 of the material priority ranking due to their considerable environmental and social impacts to the organisation and stakeholders.

Long-Term Value Creation

Financial Stability and Revenue Growth

We continuously map out long-term strategic directions in ensuring we deliver growth in revenue and achieving financial sustainability

Optimum Assets Utilisation and Capital Allocation

Optimising assets utilisation and capital allocation to ensure optimal return on investment

Innovation, Automation and Digitalisation

Responding to the needs to innovate in meeting market needs and improve business efficiency through automation and digitalisation for business continuity

A Green
Future

Climate Change

We will proactively address climate-related challenges and strive towards being a greener and more sustainable organisation.

Waste Management

We focus on recycling, waste prevention and responsible disposal through our waste management system

Water Conservation

We conserve water by recycling and reusing it, optimizing processes and educating our employees

The Human Connection

Community Engagement and Empowerment​

We volunteer our time and efforts for the betterment of the community

Fair and Equal Opportunity

Guided by our Human Resource Policies to ensure equal opportunity for all. We nurture, respect and listen to our employees and workers as we uphold Human and Labour Rights

Employee’s Safe and Healthy Workplace

We ensure a safe and healthy working environment for all employees through stringent safety measures

Governance Responsibilities

Good Corporate Governance

We practise good corporate governance to build trust, promote financial stability, enhance integrity and reputation, maintain transparency and accountability, all to achieve long-term business value and growth

Information Security

We implement a robust cybersecurity framework to protect information and systems, ensuring technology security, reducing vulnerabilities, and enhancing the resilience of TC businesses

Supply Chain Management

We adopt sustainability best practices to enhance our supply chain’s sustainability, resilience, and reliability, thereby protecting our organisation’s growth, profits, brand and reputation within the community

Sustainability Framework

“Driving Resilience” is aligned with our business strategy and guided by the Group’s core values where we defined our sustainability vision and mission. Through this framework, we aspire to meet the needs of our stakeholders, reduce our environmental impact as​ well as contribute positively towards the local communities where we operate in.​

house sustainability

Performance KPIs and Scorecard

(As at 31 December 2023)

Material Matters

Indicator / Target

Target for 2023

Current progress against targets

Information Security

Cybersecurity awareness

Incident management on successful cyber-attack

100% of employees (identifies as computer users)

Zero successful attack impactng the business

Employees’ Safety and Well-Being

Training programmes on health awareness

Training programmes on financial literacy

At least 12 programmes

At least 6 programmes

Good Corporate Governance

Severity Rate

Code Of Business Conduct and Ethics (“CBCE”)

Briefing to 3rd Party on Anti-Bribery Anti-Corruption (“ABAC”) Policy requirements and endorsement on the vendor integrity undertaking (“VIU”)

15% reduction in severity rate from previous year

100% acknowledgement by staff

100% attendance and endorsement by 3rd Party/Vendors

Supply Chain Management

Supplier Performance Evaluation

100% completion of performance evaluation of at least 20 key suppliers

Information Security

Solar energy harnessed

Solar power generation of
1,141,380 kWh

Human Rights

Total waste generated and recycled

Number of substantiated complaints concerning human rights violations

At least 12 programmes

At least 6 programmes