Southern
Steel Bhd (KL:SSTEEL) won gold at The Edge Malaysia ESG Awards 2024 in the
most improved ESG performance over three years category for public listed
companies with a market cap of between RM300 million and RM800 million.
According to
the company, this is a result of its clear objectives and action plans to
reduce its carbon footprint. These plans are monitored and reviewed
periodically, with any issue being addressed expeditiously. The plans are also
cascaded down to operational levels across the company to be executed.
“We consistently promote and integrate ESG culture into our
operations to foster a sustainable business. We also continuously learn and
update our knowledge in ESG reporting by referring to various reporting guides
to meet key requirements,” says group managing director Yeoh Choon Kwee.
“We have a committed management team who are all aligned to
achieve our ESG goals. We also set clear action plans with the aim [of
reducing] our carbon footprint. We adopt both top-down and bottom-up
[approaches] to encourage total involvement [of the company]. [This is] in
order to foster a long-lasting ESG culture and values, thus building our own
resilience.”
Southern
Steel is the first steel mill in Malaysia to successfully obtain the Sirim
Eco-Labelling Certification and the MyHijau Green Mark for the company’s steel
bar and wire rod (Photos by Southern Steel)
To make all of this a possibility, Southern Steel conducted ESG
awareness training for all its employees. This is because there was
insufficient ESG awareness across the entire workforce in the company, notes
Yeoh. There was also the mindset that ESG was only the responsibility of the
top management.
We hope to
see the government take the lead to increase the procurement of products with
the MyHijau Green Mark in all government-related projects - Yeoh
“We want to educate them on the importance of ESG and how each
and every one of us has a role to play. We also reviewed and strengthened our
various policies and enhanced our risk management framework,” says Yeoh.
Southern Steel is also exercising care for the environment by
embracing eco-friendly and green products. It is the first steel mill in
Malaysia to successfully obtain the Sirim Eco-Labelling Certification and the
MyHijau Green Mark for the company’s steel bar and wire rod.
“We have also extended the Sirim Eco-Labelling Certification and
the MyHijau Green Mark to eight other products by one of our subsidiaries,”
adds Yeoh.
In addition, Southern Steel is also constantly improving process
control and exploring new possibilities to decarbonise the company’s
operations. This is key as steel is considered a hard-to-abate industry.
To begin with, the company utilises the electric arc furnace
(EAF) technology, which uses recycled steel scrap. It is a greener option as
compared to blast furnaces, with the EAF technology having at least three times
lower carbon dioxide emission intensity, says Yeoh.
He hopes to see the introduction of carbon tax in Malaysia to
speed up the adoption of ESG.
“We hope to see the government take the lead to increase the
procurement of products with the MyHijau Green Mark in all government-related
projects. The government can also provide incentives for private companies to
buy green products,” he says.
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