Report 2011 Sustainability

Transcription

(Incorporated in Malaysia)
(Incorporated in Malaysia)
Address
Telephone
Facsimile
Wedsite
Level 5, Wisma DRB-HICOM
No. 2, Jalan Usahawan U1/8
Seksyen U1, 40150 Shah Alam
Selangor Darul Ehsan
Tel : (03) 2052 8000
Fax : (03) 2052 8099
www.drb-hicom.com
Sustainability
Report
2011
TOMORROW • TODAy
in Building the Nation
Children are the foundation that we will build our hopes and aspiration for the
continuity of our legacy. They hold the promise of what we will leave in the pride
of our cultural heritage, and the richness of our diversity.
Depicting the future by children on the edge of a new global order is a definitive statement
of DRB-HICOM’s focus on the environment that it operates, and is dedicated to its
business sustainability that it impacts on.
As a Group that sees ahead in our tomorrow, we are initiating the path we will take today,
by making the long term commitment that will decisively play a pivotal role
in building the nation.
01
Vision
To be number 1 and continuously excel in all that we do.
mission
To lead in the growth of the nation in the areas of DRB-HICOM’s core businesses.
shared values
Excellence • Decorum • Teamwork • Integrity
Innovation • Quality • Transparency
DRB-Hicom Berhad
Sustainability report 2011
02
Contents
About This Report 04
Statement-GRI Application Level check 05
GROUP Corporate Structure 06
Group Managing Director’s statement 08
MATERIALITY ANALYSIS 10
Corporate Governance 12
16
Our Community
YOUTH DEVELOPMENT AND EDUCATION • SOCIO-ECONOMIC DEVELOPMENT
QUALITY OF LIFE
26
Our Environment
SUSTAINABLE GREEN PRACTICES • GOING BEYOND GREEN AND CLIMATE CHANGE • MINIMISING ENVIRONMENTAL IMPACTS FROM OPERATIONS
BIODIVERSITY AND CONSERVATION • OTHER ENVIRONMENTAL INITIATIVES
40
Our Marketplace
OUR COMMITMENT IN THE MARKETPLACE • SUSTAINABLE PROCUREMENT
PRODUCT RESPONSIBILITY • MARKETING AND COMMUNICATION RESPONSIBILITY
50
Our Workplace
EMPLOYMENT PRACTICES • PROVIDING AN EXCITING WORKPLACE • CONTINUOUS LEARNING AND DEVELOPMENT
LABOUR RELATIONS AND MANAGEMENT • HEALTH AND SAFETY AT WORK
GRI Content Index 64
Assurance Statement 78
03
About this Report
This is the second DRB-HICOM Berhad (“DRB-HICOM”) Sustainability Report we have produced which provides disclosure of our sustainability
achievements in a proactive approach with our stakeholders. We have tried to present our data in the most accurate manner possible,
using quantitative indicators wherever relevant. We have compared our achievements in FYE 2011 against those of the previous year to show the
progression of our sustainability activities. We have also used our FYE 2011 performance as a benchmark for our FYE 2012 targets. For greater
transparency, we have used Social Return on Investment (SROI) calculations to quantify one of our major Corporate Responsibility (CR) activities.
We adopt new guidelines in sustainability initiatives as they emerge to keep abreast with international best practice. In FYE 2011,
these included the ISO 26000 guidance on social responsibility.
About this Report
•
•
We commissioned comprehensive stakeholder analysis and
materiality tests to identify and highlight major issues of
interest to our stakeholders and develop our approach to
these issues.
•
This Sustainability Report is consistent with our Annual
Report. This Report features our core CR domains
which are aligned with the Bursa CR Framework. Our
strategies, achievements and future plans for sustainability
management are all aligned with these guidelines especially
in the areas of sustainable environmental management,
community and social contributions, ethics in marketplace
and corporate culture. Where Group-wide information is
not fully available, we have provided performance data and
case studies of our subsidiaries that are representative of
our general approach.
•
•
T he Report has been examined by OWW Consulting
Sdn. Bhd. to measure its reliability. Their conclusions are
presented in an Assurance Statement that can be found at
the end of this Report.
e have continued our commitment to provide detailed
W
disclosure with indicators and clear performance trends.
In this Report we have also tracked data and statistics of
our performance to date and evaluated our progress in
achieving targets.
DRB-Hicom Berhad
04
Our transparency efforts are not limited to this Report.
Other material issues, such as Corporate Governance, and
detailed data on our internal operations and business
activities are reported in other publicly available documents,
such as our Annual Report, and are not repeated here.
Reporting Scope:
The DRB-HICOM Sustainability Report covers our entire
organisation and includes quantitative and qualitative data for
FYE 2011. Some indicators are partial and only relate to certain
divisions or activities as indicated in the text.
Reporting Period:
April 1, 2010 to March 31, 2011.
Reporting Cycle:
Once a year
Reporting Framework
•
•
Principal Framework: GRI G3 Guideline
Additional Frameworks:
-> Bursa Malaysia CR Framework
-> ACCA Malaysia Sustainability Reporting Guidelines for
Malaysian Companies 2005
Reliability of Information Disclosed
We strive to improve the materiality and reliability of the
information presented and have adopted an approach aligned
with the ISO 26000 and the UN Global Compact. This Report
has been verified by an external third party and has also been
assessed by the Global Reporting Initiative (GRI) for how
comprehensively we have applied the latest GRI-G3 guidelines.
We have again achieved the top Application Level of A+.
Our approach to sustainability is also
widely endorsed by our stakeholders, as
reflected in the many awards we have
received from respected, independent
assessments of our performance. These
are listed in the report.
Distribution of and Feedback on the Report
This report is available to all stakeholders in hard copy on
request and can be downloaded from our website. For further
information and comments please contact:
Jessica Tang
Corporate Responsibility Manager
Corporate Affairs Division
Level 5, Wisma DRB-HICOM,
No.2, Jalan Usahawan U1/8, Seksyen U1,
40150 Shah Alam, Selangor Darul Ehsan,
Malaysia.
Tel : 603-2052 8000
Fax : 603-2052 7696
Email : jessica.tang@drb-hicom.com
Website : www.drb-hicom.com
Statement
GRI
Application
Level Check
05
Group Corporate Structure
PUSPAKOM
Sdn. Bhd.
E.I. : 100%
Bank Muamalat
Malaysia Berhad
E.I. : 70%
HICOM University
College Sdn. Bhd.
E.I. : 100%
HICOM Power
Sdn. Bhd.
E.I. : 100%
Muamalat Invest
Sdn. Bhd.
E.I. : 70%
Gadek (Malaysia)
Berhad
E.I. : 100%
Uni.Asia Capital
Sdn. Bhd.
E.I. : 51%
Muamalat Venture
Sdn. Bhd.
E.I. : 70%
Mega Consolidated
Sdn. Bhd.
E.I. : 100%
Uni.Asia Life
Assurance Berhad
E.I. : 51%
Uni.Asia General
Insurance Berhad
E.I. : 34.73%
Alam Flora
Sdn. Bhd.
E.I. : 60.53%
USF-HICOM
(Malaysia)
Sdn. Bhd.
E.I. : 100%
PHN Industry
Sdn. Bhd.
E.I. : 62.50%
HICOM
Diecastings
Sdn. Bhd.
E.I. : 100%
Proton City
Development
Corporation
Sdn. Bhd.
E.I. : 60%
KL Airport
Services
Sdn. Bhd.
E.I. : 100%
Scott & English
(Malaysia)
Sdn. Bhd.
E.I. : 70%
HICOM-Teck See
Manufacturing Malaysia
Sdn. Bhd.
E.I. : 51%
Oriental Summit
Industries
Sdn. Bhd.
E.I. : 70%
Automotive
Corporation
(Malaysia) Sdn. Bhd.
E.I. : 100%
KLAS Engineering
Services Sdn. Bhd.
E.I. : 100%
HICOM-HONDA
Sdn. Bhd.
E.I. : 48%
DRB-Hicom Berhad
HICOM Holdings
Berhad
E.I. : 100%
06
HICOM United
Leasing Sdn. Bhd.
E.I. : 70%
Scott & English
Trading (Sarawak)
Sdn. Bhd.
E.I. : 35.70%
HICOM-YAMAHA
Sdn. Bhd.
E.I. : 45%
HICOM Automotive
Plastics (Thailand) Ltd.
E.I. : 50.99%
Suzuki Motorcycle
Malaysia
Sdn. Bhd.
E.I. : 29%
HICOM Automotive
Manufacturers
(Malaysia)
Sdn. Bhd.
E.I. : 93%
ISUZU HICOM
Malaysia
Sdn. Bhd.
E.I. : 49%
DRB-HICOM Auto
Solutions Sdn. Bhd.
E.I. : 100%
Motosikal Dan Enjin
Nasional Sdn. Bhd.
E.I. : 70%
Edaran Modenas
Sdn. Bhd.
E.I. : 70%
DRB-HICOM Defence
Technologies Sdn. Bhd.
E.I. : 100%
Honda Malaysia
Sdn. Bhd.
E.I. : 34%
Isuzu Malaysia
Sdn. Bhd.
E.I. : 49%
Defence Services
Sdn. Bhd.
E.I. : 100%
Edaran Otomobil
Nasional Berhad
E.I. : 100%
Comtrac
Sdn. Bhd.
E.I. : 70%
Euromobil
Sdn. Bhd.
E.I. : 100%
EON Properties
Sdn. Bhd.
E.I. : 100%
SRT-EON Security
Services Sdn. Bhd.
E.I. : 40%
EON Auto Mart
Sdn. Bhd.
E.I. : 100%
Mitsubishi Motors
Malaysia
Sdn. Bhd.
E.I. : 48%
Johnson Controls
Automotive Holding
(M) Sdn. Bhd.
E.I. : 30%
Automotive
Conversion Engineering
Sdn. Bhd.
E.I. : 100%
Multi Automotive
Service and Assist
Sdn. Bhd.
E.I. : 55%
Proton Parts Centre
Sdn. Bhd.
E.I. : 45%
HICOM
Berhad
E.I. : 100%
Glenmarie Cove
Development
Sdn. Bhd.
E.I. : 89.50%
Horsedale
Development
Berhad
E.I. : 70.60%
HICOM-Gamuda
Development
Sdn. Bhd.
E.I. : 35.30%
Glenmarie
Properties
Sdn. Bhd.
E.I. : 100%
Kenyir Splendour
Berhad
E.I. : 100%
Glenmarie Asset
Management
Sdn. Bhd.
E.I. : 100%
HICOM Indungan
Sdn. Bhd.
E.I. : 100%
Midea Scott &
English Electronics
Sdn. Bhd.
E.I. : 30%
Suzuki Malaysia
Automobile
Sdn. Bhd.
E.I. : 40%
TRW Steering and
Suspension
(Malaysia) Sdn. Bhd.
E.I. : 20%
Niro Ceramic (M)
Sdn. Bhd.
E.I. : 21.58%
Rebak Island
Marina Berhad
E.I. : 75%
HICOM Megah
Sdn. Bhd.
E.I. : 100%
HICOM Builders
Sdn. Bhd.
E.I. : 100%
Corwin Holding
Pte. Ltd.
E.I. : 90%
Sectorial
AUTOMOTIVE
SERVICES
PROPERTY, ASSET AND CONSTRUCTION
INVESTMENT HOLDING
JOINTLY CONTROLLED ENTITIES /
ASSOCIATED COMPANIES
Note:
E.I. – DRB-HICOM Group’s Effective Interest
• GROUP Corporate structure •
07
Group Managing Director’s Statement
On behalf of the Board of Directors,
I am pleased to present our second
Sustainability Report. This Report aims
at providing additional perspectives
on our performance in the workplace,
community, marketplace and
environment. We truly acknowledge
that Corporate Responsibility (CR)
extends beyond our philosophical
and philanthropic commitments.
it is therefore imperative that we
showcase our commitments by
conducting our business responsibly,
with integrity and strong
governance.
DRB-Hicom Berhad
08
Last year, we took a step further to communicate our
transparency and accountability by producing our first
Sustainability Report. The strategic plans and robust
initiatives under our CR vision that were announced
in my previous statement had been successfully
implemented. I would like to take this opportunity to
evident the spirit of our employees and with the support
of our other stakeholders we were able to achieve strong
environmental and social performance.
In this Report, I would like to highlight our contribution
towards sustainable development benefiting our operating
environment, society, partners and all of our stakeholders;
and how we continuously strive to manage our business
operations in a responsible way.
Our Milestones During the Year
Apart from extending our efforts to formulate the
necessary strategies and initiatives to improve the quality
of information delivered in this Report, we also aim
to be a leader across our core Sustainability pillars i.e.
Workplace, Community, Marketplace and Environment.
While there were various initiatives executed over the
past twelve months, we remained steadfast in our
commitments to nourish the Country and improve the
lives of Malaysians through our CR efforts.
Taking into consideration that the planet is our greatest
stakeholder, we persevere to mitigate and reduce the
burden of our business activities on the environment to
develop a sustainable society. In FYE 2011, we continued
to measure our environmental impacts through sustainable
green practices while contributing to socio-economic
development and reaching out to improve the quality of life
of deserving communities. We believe that managing our
responsibility as a corporate citizen is vital in maximising
its positive impacts to the society while balancing the
expectations of our diverse stakeholders.
For the year under review, we also placed great emphasis
on delivering high impact CR through various key
initiatives. We recognise that education is one of our
main Community pillar in our promise to spearhead
nation-building. Therefore, we are dedicated to enhance
excellence through ICAM’s holistic approach coupled by
competitive learning courses in automotive education.
Amongst other key initiatives implemented is the
Environment Management Plan (EMP) to monitor all
environmental impacts in our operations while promoting
green procurement within our tendering and purchasing
processes.
As part of our innovation through green technology,
we have also launched our first state-of-the-art
environment friendly electric bike, CTric by MODENAS.
The CTric is developed, assembled and manufactured in
Malaysia. We have also expanded the application of our
HICOM Management System to all Group companies
to encourage our vendors to conduct themselves
responsibly.
Last but not least, we have taken a historic step in
accelerating the Company’s goals on gender equality
and women empowerment. I am pleased to evident
the significant increase in the number of female senior
managers in the Company and we will continue to
promote learning as part of our long term human capital
development process.
With such commendable achievements to date, I assure
you that we will not become complacent and we will
continue to challenge ourselves to achieve more. We
continue to set formal goals in our primary CR focus
areas, helping to drive accountability and continuous
improvement to the business.
Sustainability Challenges
Commitment to CR in our Group is unwavering as
Sustainability is becoming an increasingly important area of
focus globally. We realise that all aspects of Sustainability
are demanding but we need to relish these challenges
as they are vital to creating competitive advantage.
Sustainability can act as a catalyst for innovation and
help identify new business opportunities, reduce risk and
improve cost efficiency as well as enhancing relationships
with our stakeholders. Moving forward, we will strive
to bring our efforts to greater heights, to ensure that
DRB-HICOM, as a global corporate citizen, live up to the
expectations of all our stakeholders.
Acknowledgement
On behalf of the Board, I would like to express my
utmost gratitude to the Management and employees
for their dedication and commitment. The successes we
achieved in FYE 2011 could not have been accomplished
without your hard work. I would also like to extend my
sincere appreciation to all our stakeholders and valued
shareholders for their continued support and confidence
in DRB-HICOM Group. This Sustainability Report is
dedicated to all of you. I hope you find it useful and
informative. As always, we welcome your feedback for
our further improvements.
DATO’ SRI HAJI MOHD KHAMIL BIN JAMIL
Group Managing Director
• Group Managing Director’s Statement •
09
MATERIALITY ANALYSIS
High
Prior to our materiality analysis,
we conducted a review exercise
to identify and document
significant opportunities,
challenges and priorities in
our operating environment in
order to anticipate the emerging
expectations of our stakeholders
and respond proactively. We use
a materiality matrix to map these
issues and focus our efforts
on each area according to the
following criteria:
1. High: We report our comprehensive management
approach, set targets where relevant and disclose
our performance in achieving the goal
2. Medium: Issues covered in this area are
reported but not necessarily with quantitative
performance indicators
3. Low: These issues have been identified as low
materiality and are not reported in detail
Level of Concern to Stakeholders
Significant disclosure
1
7
2
8
9
3
Issues for disclosure
4
Issues not disclosed
5
11
6
10
12
13
Low
Impact Level
High
Item description Section
1 Nation Building Community
2 Product Responsibility Marketplace
3
Occupational Safety and Health (OSH) Workplace
4
Impact from Social Responsibility Community
5
Environmental Strategy and Performance Environment
6 Environmental Impacts Environment
7Fair and Happy Workplace Workplace
8
Compliance
Community, Environment, Marketplace and Workplace
9
Fair and Happy Workplace Workplace
10Effective Communications with Stakeholders
Community, Environment, Marketplace and Workplace
11 Collective Bargaining and Labour Relations Workplace
12 Child Labour Workplace
13 Forced Labour DRB-Hicom Berhad
10
Workplace
We do not report extensively on child and forced labour since we adhere to the national
Employment Act 1955 which prohibits the employment of underage and forced workforce.
The Global Reporting Initiative Sustainability Reporting Guidelines (GRI-G3) use materiality
as one of three key principles in defining report content. Material issues are “topics
and indicators that reflect the organisation’s significant economic, environmental and
social impacts, or that would substantively influence the assessments and decisions
of stakeholders”.
Identify Key Issues
We have attempted to conduct the identification process of key issues according to three
broad categories specified by GRI-G3 Economic, Social and Environment. Considering our
diversified nature of business, we classify these issues by the corresponding areas that are
most likely to impact our CR strategy.
Assess the potential impact of issues and their importance to stakeholders
Our stakeholder groups include internal and external; direct and indirect stakeholders.
We continue to prioritise issues according to our stakeholders’ areas of concern and their
impact level to our business goals.
Focus on material areas
Having identified the areas of significant impact on our operations and of most concern
to our stakeholders, we have formulated our approach to sustainability reporting. This
Report has been structured in a way that stresses priority areas, highlights the rationale
behind each selection and demonstrates our commitment to addressing each area and its
current performance.
• MATERIALITY ANALYSIS •
11
Corporate Governance
Good corporate governance is globally accepted at DRB-HICOM as being fundamental to our organisation’s
competitiveness. It is vital to growth and enhances shareholders’ value through a sustainable business. The Board
of Directors is committed to ensuring that the highest standards of Corporate Governance are practiced throughout
the Group as a fundamental part of its responsibilities in managing the business and affairs of the Group. Our Corporate
Governance practices are aligned with the Malaysian Code on Corporate Governance (Revised 2007) – “the Code”.
BOARD OF DIRECTORS
Duties and Responsibilities
•Adopting and reviewing a strategic plan for the Company
•Overseeing the conduct of the Company’s business
to evaluate whether the business is being properly
managed and sustained
•Identifying principal risks and ensure the implementation
of appropriate systems to manage these risks
•Succession planning including appointing, training, fixing
the remuneration and replacing the senior management
of the Company as required
•Developing and implementing an investor relations
programme or shareholder communications policy for
the Company
•Reviewing the adequacy and integrity of the Company’s
internal control systems and management information
systems including systems for compliance with applicable
laws, regulations, rules, directives and guidelines
Composition and Balance
The current Board has eight members: one Executive Director
and seven Non-Executive Directors (including the Chairman).
Five are independent as defined by Bursa Securities Main
Market Listing Requirements. The independent Directors
make up 62% of the Board membership.
All members of the Board are suitably qualified in view
of their respective qualifications and experience which
provide the Board with a good mix of industry-specific
knowledge, broad business sense and commercial experience.
DRB-Hicom Berhad
12
This balance enables the Board to provide clear and
effective leadership to the Group and bring information
and independent judgement to many aspects of the Group’s
strategy and performance.
Appointments and Training
There is a formal and transparent procedure for the
appointment of new Directors to the Company and the
Group. The Nomination and Remuneration Committee
ensures that an induction programme is arranged including
visits to the Group’s significant businesses and meetings with
senior management as appropriate.
All existing Directors completed the Mandatory Accreditation
Programme and are also encouraged to attend continuous
education programmes and seminars to keep abreast of the
latest developments in the marketplace.
Board Meetings and Supply of Information to the Board
The Board met a total of eight times in the FYE 2011 and
all Directors attended more than half of the meetings held
during the financial year. Issues discussed include financial
information and other information deemed suitable such
as new statutory and regulatory requirements concerning
their duties and responsibilities; risk management and risk
management updates; customer satisfaction; product and
service quality; market share and market trends; manpower
and human resource; and environmental issues. The Board
meetings are governed by a structured formal agenda and
matters for approval or notation with sufficient time given
for deliberations.
All Directors, whether independent or otherwise, have direct
and unrestricted access to the Management and may seek
professional advice at the Group’s expense. All Directors
also have access to the advice and services of the Company
Secretary whose appointment and removal is a matter for
the Board as a whole.
Board Committees
To ensure the effective discharge of its fiduciary duties,
the Board has delegated specific responsibilities to the
respective Committees of the Board. These include:
•Audit Committee
•Nomination and Remuneration Committee
•Risk Committee
In addition to the Board Committees, the Company has
established three other main committees at management level:
•Management Committee
•Group Risk Management Committee
•Corporate Responsibility Steering Committee
Relationship and Communication with Stakeholders
In October 2010, we established the Investor Relations (IR)
Department in an effort to increase awareness among the
investment community by assisting investors to develop a
well rounded understanding of the Group’s businesses and
strategies. Groups which belong to this community amongst
others include fund managers, analysts, shareholders,
potential shareholders, bankers, regulators, credit rating
agencies and fixed-income holders.
The role of IR is mainly to bridge the gap between the
Management and our stakeholders, namely the investment
community by encouraging 2-way communications and
improve the level and quality of disclosure. The IR Department
acts as a touch-point for the investment community seeking
clarification on any issues regarding the Group. Since its
inception, the IR Department maintained an active role
through continuous dialogue with investors via a planned
programme of investor relations activities and engagement.
With DRB-HICOM’s diversified nature of business, it is
imperative that stakeholders’ interests are met through
timely dissemination of information with sufficient level of
transparency and accountability. In FYE 2011, key IR initiatives
undertaken by the Group aimed at improving engagement with
stakeholders include in-house one-to-one and small group
meetings, teleconferencing and improvement of IR webpage
which can be assessed through its corporate website.
The Board of Directors values the dialogues with investors
and appreciates the keen interest of shareholders and
investors in the Group’s performance. We also communicate
with our shareholders and stakeholders on regular basis
through the release of quarterly financial results, press
releases and announcements to Bursa Malaysia.
In addition, the distribution of DRB-HICOM’s Annual Report
provides shareholders a comprehensive outlook on the
Group’s financial results, its activities and operations. Another
form of effective communication is through its yearly Annual
General Meeting (AGM). The AGM provides an open forum
where shareholders are informed of recent developments
and also Q&A sessions with the Board members.
Conflict of Interest
The Directors continue to observe the Company Directors’
Code of Ethics established by the Companies Commission of
Malaysia in carrying out fiduciary duties and responsibilities.
We ensure high ethical standards are upheld and the
interests of stakeholders are always a priority. The Directors
are required to declare their direct and indirect interests in
the Company and related companies. We have implemented
appropriate controls to ensure the systematic identification
of potential conflicts of interest and procedures between
the Directors and operation of the Group to manage such
conflicts of interest if they arise.
DRB-HICOM Corruption Commitment
Corrupt practices are completely unacceptable to us and are
strictly prohibited. We introduced a policy in 2006 and this
is also clearly communicated to all employees in the Code
of Ethics & Business Practice. No bribes or gratuities can be
offered or accepted by any party. All operations are monitored
for risks related to fraud and corruption. All commercial
transactions must be properly and accurately recorded. The
Group Managing Director, Dato’ Sri Haji Mohd Khamil Bin
Jamil, strongly upholds the principle of anti-corruption and
regularly communicates this issue to all employees.
The Group Internal Audit Division reports directly to the
Audit Committee which consists of solely independent
members. This structure was adopted to ensure a fair and
non-biased assessment and opinion in carrying out its
responsibilities which include ensuring compliance with laws
and regulations; ensuring the accuracy and transparency of
financial reporting; and investigating fraud and safeguarding
assets. The practice of honesty, truthfulness and accuracy is
aligned with the Group shared values of ‘Integrity’.
The policy applies to DRB-HICOM and all its subsidiary
companies. All stakeholders including employees,
shareholders, consultants, vendors, contractors, outside
agencies or any other parties with a business relationship
with us or our subsidiaries are encouraged to report any
wrongdoing that may adversely impact the Company. It is
the task of the internal auditors or any assigned parties
to investigate any report received. The results of this
investigation will be reported to the Audit Committee and
Senior Management of the Group.
Our toll-free hotline is one of the mechanisms introduced to
employees to report allegations of wrongdoing or unethical
business behaviour. Complaints and reports under this policy
can also be made through email, fax or mail.
Anti-Fraud Policy
Our Management is responsible for the detection and
prevention of fraud, misappropriations and other
inappropriate conduct. Fraud is defined as the intentional,
false representation or concealment of a material fact for
the purpose of inducing another to act upon it to his or
her injury and financial loss. This policy ensures consistent
and effective investigation, reporting and disclosure of fraud
occurrences within the Group.
Compliance
Our fight against corruption is exemplified through signing
of a memorandum of understanding (MOU) by Puspakom
with the Malaysian Anti-Corruption Commission (MACC)
to mitigate corruption in the most efficient and effective
manner within our Company.
Whistleblower Policy
The whistleblower policy directly supports company values
and the corporate code of ethics and governance. This
policy emphasises the Group’s commitment to enabling
stakeholders to raise concerns in a responsible manner
regarding any wrongdoing or malpractice without being
subject to victimisation or discrimination treatment and to
have such concern properly investigated.
As a public listed entity, we strictly abide by the governing
Acts, authorities, rules and regulations. Any dealing, buying or
selling of DRB-HICOM shares by employees is undertaken very
carefully to avoid the implications of insider trading laws.
We handle many forms of transactions and undertake various
types of business activities. Any form of business undertakings
are carefully attended to, to avoid the implications of money
laundering as defined by statutory laws.
We are pleased to report that there was no incident or
penalty for violation at any time during the period under
review. We are also pleased to report that there was no
significant incident or penalty for non-compliance with laws
and regulations at any time during this reporting period.
• Corporate Governance •
13
Stirring their
Imagination in Creativity
In young minds lie their unique experiences locked in
pictured postcard memories, awaiting to come to life
their personal imagination
DRB-Hicom Berhad
14
15
Our Community
We recognise our responsibility to manage the impact of our
business on the community. Our longstanding community
engagement has allowed the Company to grow and
develop together. We continue our proactive approach to
the community and improve our ability to measure the
effectiveness of these efforts.
In order to deliver a more effective community
approach, we encourage our subsidiaries to implement
their CR programmes which are vital to their
nature of business. We continue to support these
initiatives and build effective collaboration
between subsidiary companies for mutual benefit.
Programmes are determined according to
community needs and there are three strategic
core themes on which we focus.
–Youth development and Education
–Socio-Economic development
– Quality of life
DRB-Hicom Berhad
16
SocioEconomic
Development
Youth
Development
and
Education
DRB-HICOM
Community
Engagement
Quality
of Life
Youth Development
and Education
were used to purchase educational materials, co-curricular
items, motivational and skill development programmes.
The initiative was proven successful when it broke the
school’s record by having three straight A’s UPSR scorers. We
conducted a Social Return on Investment (SROI) calculation
to measure the social value created by the School Adoption
Programme. This calculation was completed by incorporating
the social, environmental and economic costs and benefits
involved in the programme during FYE 2011. It also considers
the financial proxy of each investment. The SROI for the
Student Adoption Programme is RM2.91; for every Ringgit
spent, RM2.91 of social value is created.
The Star-Newspaper-in-Education (NiE) Programme
We participated in the Star NIE Programme by adopting
15 selected schools in the Klang Valley, Pahang and Kedah
by providing the weekly NIE pullout to these schools. NIE
is an acronym for ‘Newspaper in Education’. This exciting
programme uses newspaper articles and resources in schools
as an educational tool. We are pleased with the feedback
received that suggests this teaching method has helped
energise classrooms, enhance critical thinking, increase
vocabulary, and improve skills in subjects such as English,
History, Mathematics, Geography and Science while building
students’ awareness of world events.
School Adoption Programme by HICOM Power
Sdn. Bhd. (HPSB)
HPSB adopted Sekolah Kebangsaan Serkat, located in Mukim
Serkat, Pontian, Johor. This is in-line with its commitment to
promote education and nation development. The school was
selected due to its close proximity to the Tanjung Bin Power
Plant. A large percentage of students in this school are from
vulnerable and marginalised families: the majority of their
parents are fishermen. HPSB allocated a fund to enhance
the infrastructure development of the school and upgrade
its academic support. Annually, a total of 230 students
are benefiting from the RM15,000 contributions which
• Our Community •
17
Our Community
(continued)
Honda Dreams Fund
Project Strategy and Partnership
For the fourth consecutive year, 20 scholarships worth
RM1 million were rewarded to underprivileged youths aged
17 to 24 under the Honda Dreams Fund (HDF). This year,
HONDA focused heavily on developing the nation through
upgrading the education level in rural areas in Kelantan,
Terengganu, Sabah, Perak and the Klang Valley. Since its
launch in April 2007, 60 students have benefited from
this programme to further their tertiary education in local
institutions of higher learning. For the success of this
programme, we also partnered with the United Nations
Development Programme (UNDP) Malaysia in ensuring a fair
and unbiased fund disbursement.
Welfare
To help underprivileged children
who are in need
Proposed Areas:
• Children who are lacking education
• Aged 17-24 years old
• Honda as a good corporate citizen
• Project will commence from 2006-2011
• Open to all Malaysians who fits in
Honda Dreams Fund criteria
Honda + UN
for human development
Education
Fund Their Education
• Full Degree Scholarship
• Any course of desire at any colleges
or universities in Malaysia
DRB-Hicom Berhad
18
Project Name: Honda Dreams Fund
Roles & Responsibilities of UNDP:
1. To launch nationwide application
2. To assist with evaluation and scholar selection
3.To maintain the Advisory Panel (AP) to advise
the Management of the project and assist in the
selection of candidates
4.Monitor and evaluate academic progress of
students and prepare an Annual Report on
activities undertaken by the project
The Development of International College of
Automotive (ICAM)
The International College of Automotive (ICAM) is managed
by HICOM University College Sdn. Bhd. (HUSCB), a wholly
owned subsidiary of DRB-HICOM Berhad. The establishment
of ICAM as an Institution of Higher Learning was approved by
the Ministry of Higher Education in April 2010.
ICAM’s holistic and unique automotive education model
would enable it to support its vision of becoming a Leader
in Automotive Education. ICAM helps to drive the national
automotive industry forward by addressing the skill and
knowledge gap of the nation. ICAM will also help to produce
the competent workforce which will attract more foreign
investments and improves the New Economic Model of the
Government. The vision of ICAM is becoming the Leader in
Automotive Education which also includes the making of
Pekan Automotive Complex as the home of ICAM, which
houses state-of-the-art automotive technologies.
The first intake in March 2010 included 75 employees from
the Group’s auto companies, and by March 2011, 34% of
the offers were taken up by the local public. ICAM keeps
abreast with the latest technological advances to remain
competitive by leveraging on premium global auto brands
who are DRB-HICOM business partners such as Mercedes,
Audi, Volkswagen, Honda and Suzuki.
Progressively, three additional home grown diploma
programmes were developed and launched during ICAM’s
second intake in September 2010:
At the initial stage of operations in March 2010, ICAM
offered three home grown diploma programmes:
• Diploma in Automotive Management Systems (DMS)
As the industry leader, we are pleased to see the growth of
ICAM’s home grown diploma programmes. The following two
additional courses will be introduced in September 2011:
• Diploma in Vehicle Assembly Management (DVA)
• Diploma in Procurement and Vendor Development
• Diploma in Vehicle Inspection (DVI)
• Diploma in Enterprise Resource Planning
• Diploma in Automotive Service Technology (DST)
• Diploma in Automotive Retail Management (DRM)
• Diploma in Automotive Parts Management (DPM)
19
Our Community
(continued)
SOCIO-ECONOMIC
DEVELOPMENT
ICAM to Boost Nation Building
Under the 10th Malaysia Plan (RMK10), the Government
is targeting the technical and vocational education
opportunities to reach at least 37% of highly skilled
workers by 2015. Currently it stands at 23%. Given that
the core business of DRB-HICOM is in automotive, it is
imperative that we steer the development of the skilled
and knowledgable workers in the areas of automotive and
automotive related industries towards building the Group’s
expertise for sustainable growth of its core business.
ICAM’s objectives are strongly aligned with the New
Economic Policy (NEP) which is an economic transformation
designed by the Government to build momentum and
confidence in the mindset of citizens that more changes
will emerge, reformed along with few strategic initiatives.
ICAM approaches are directly complementing the NEP
deliverables which include:
• Developing a high quality workforce
• Building infrastructure for a knowledge base
• Enhancing the sources of growth and its sustainability
ICAM’s motives are also aligned with the Economic
Transformation Programme (ETP). The ETP introduced by the
Malaysian Government has prioritised the investments in
12 National Key Economic Areas (NKEAs), one of which is
education. Through ICAM, we aim to create additional work
opportunities in this area.
DRB-Hicom Berhad
20
DRB-HICOM Poverty
Eradication Action Plan
We continue to reach out to help the needy through
various social welfare initiatives to make continuous
improvements hence, giving them a chance to rise
above the challenges they are facing. Amongst the
many initiatives are the contribution to the various
medical and dialysis centres for the underprivileged
including children, the elderly and our commitment
in assisting the poor.
Kem Harapan DRB-HICOM
We sponsored a motivational camp for 300 primary and secondary students
from Pekan in Pahang at Universiti Putra Malaysia, Serdang from 13 to 16
May 2010. It was organised with the Yayasan Harapan Kanak-Kanak, Malaysia.
In a simple yet meaningful event, YABhg Datin Paduka Seri Rosmah Mansor
expressed her heartfelt gratitude to DRB-HICOM for its generosity towards
such a charitable cause and expressed hope that many other corporate
companies will emulate the initiative. During the camp, children were
entertained by motivational talks and enjoyed fun interaction games in a
University environment.
21
Our Community
(continued)
QUALITY OF LIFE
“We Care for Our Travellers”, says KLAS
KL Airport Services Sdn. Bhd. (KLAS) extended its warm
hospitality and care by distributing lunch packs to 300
Europe-bound passengers who were stranded in Kuala
Lumpur International Airport (KLIA) during the Icelandic
volcanic ash incident which closed European airports on 21
April 2010. The lunch packs distribution was led by former
KLAS Chief Executive Officer, Encik Mohd. Shukrie Mohd.
Salleh with the support of senior managers and heads
of department.
“Sahabat Korporat Tabung Haji” Programme
For the 3rd consecutive year, DRB-HICOM contributed to
Program Sahabat Korporat Tabung Haji 1431H which was
held in September 2010. Sahabat Korporat Tabung Haji
is a corporate partnership initiative by Lembaga Tabung
Haji which presents local corporations the opportunity
to extend contributions, products and services as part of
goodwill-building for the Haj pilgrimage. Following positive
feedbacks received during 2010, we once again contributed
a total of 500 units of luggage bags to the pilgrims this year
which amounted to a total of RM150,000.
DRB-HICOM participated in
“Majlis Rayuan Hari Pahlawan”
DRB-HICOM Defence Technologies Sdn. Bhd. (DEFTECH)
donated RM 1 million in conjunction with Hari Pahlawan
to show gratitude to former military personnel for their
services and sacrifices in fighting for peace in the country.
Through this activity, we hope to boost the spirit of national
patriotism among our employees whom we believe will be
instrumental in developing this nation.
Hari Raya – The Month of Blessing
More than 1,300 friends and clients joined the DRB-HICOM
Group to celebrate the festive month of Syawal at the
Grand Ballroom of the Istana Hotel Kuala Lumpur on 22
September 2010. The occasion was graced by KDYTM Tengku
Mahkota Pahang, Tengku Abdullah Al-Haj Ibni Sultan Haji
Ahmad Shah Al-Musta’in Billah. We have also invited 60
children from Rumah Anak Yatim Al-Barakh who were given
goodies and duit raya.
DRB-Hicom Berhad
22
Automotive Corporation Malaysia Sdn. Bhd. (ACM) organised
a Ramah Mesra Hari Raya 2010 held at the ACM office in
Batu Caves on 1 October 2010. The event was attended by
YBhg Dato’ Sri Haji Mohd Khamil Jamil, Group Managing
Director, DRB-HICOM Berhad with 800 employees and
guests. In keeping with the spirit of Aidilfitri, ACM Chief
Executive Officer, Encik Amirudin Abd Kadir and his wife,
Puan Siti Hardiah Haji Harun presented duit raya raised by
ACM staff, to 40 orphans from Rumah Sinar Salam and eight
orphans of former ACM Employees.
To spread the joy of Ramadhan, EON invited its employees,
children of employees and 25 orphans to the Majlis Berbuka
Puasa bersama Anak-anak Rumah Penyayang Hembusan
Kasturi which was held at its office on 6 September 2011.
Another major Buka Puasa event was held in Pekan in August
2010 with more than 1,700 people in attendance. The crowd
included DRB-HICOM employees and their families, 200
single mothers and senior citizens, local community and
friends from the media.
En Hashim: “Setelah menggunakan alat CPAP (Continuous Positive Airways Pressure),
Auto Set Spirit 2 ETR S8 selama beberapa bulan kesan yang saya dapati ialah:
1. Tidak lagi berdengkur ketika tidur di waktu malam.
2. Mampu tidur dengan nyenyak
3.Tiada lagi masalah pernafasan terhenti secara tiba-tiba sewaktu tidur.
4.Badan rasa lebih segar dan bertenaga sewaktu bangun dari tidur.
5. Tiada masalah pening kepala
6.Tiada lagi masalah kerongkong kering, sakit ataupun bengkak.
Untuk pengetahuan, saya juga tidak pernah mengambil Medical Leave (MC)
sepanjang tahun
Give Children a Smile
Uni.Asia With A Heroic Heart
In conjunction with the Chinese New Year festivities, the employees of Holiday Inn Kuala
Lumpur Glenmarie (HIKLG) treated 10 children from the Compassion Home Subang Jaya to a
shopping spree. The children, aged five to 12, were each allocated RM100 to buy new clothes
and accessories in addition to grocery items which were donated to the children’s home.
Uni.Asia General and the National Blood Bank organised a one-day blood donation drive
themed “Gift of Life” at Menara Uni.Asia on 5 April 2010. A total of 74 donors participated
in this event including employees, customers and other tenants in the building. Following
this success, Uni.Asia held a similar campaign on 12 October 2010 with a total of 79 pints
of blood collected.
Spouses of the Management also organised a follow-up visit to Pemulihan Dalam Komuniti
(PDK) Titian Murni on 14 August 2010. During the visit, hampers and duit raya were given to
more than 41 special children of PDK Titian Murni.
CPAP Equipment Donation
The welfare of our employees is our top priority. We sponsored special medical equipment
to an employee of our subsidiary company, Automotive Corporations Malaysia Sdn. Bhd.
(ACM). Encik Hashim Ahmad, a public sector sales representative, suffered from Obstructive
Sleep Apnoea (OSA) characterised by pauses in breathing during sleep that affects the
cerebrovascular and cardiovascular systems. En Hashim was recommended by a specialist
to use a Continuous Positive Airways Pressure (CPAP) equipment to prevent further
complications. CPAP equipment valued at RM8,000 was presented to Encik Hashim by the
Chief Operating Officer of ACM, Encik Amirudin Abd Kadir to improve his health.
Uni.Asia Life also introduced an environmentally friendly non-woven bag to its employees
on 7 April 2010. Employees are encouraged to use their non-woven bags when doing
their grocery shopping. The use of the environmentally friendly non-woven bags will be
extended in phases as Uni.Asia Life begins its CR initiatives. The bags will be distributed at
hypermarkets during non-plastic bag day to promote the environmentally-friendly initiative.
In promoting education, Uni.Asia Life started participating in the School Adoption Programme
since 2007. A total of eight schools have been supported to date and in FY2010, the total
contribution was RM205,777. The money donated was used to fund various academic
and non-academic causes including examination clinics, educational visits, a career and
motivational talk, visits to orphanage homes and the upgrading of schools facilities.
23
Moulding their
Appreciation in Values
The world has become closer than ever, and through
its shared information, culture and history, brings a
greater sense of appreciation in their values
DRB-Hicom Berhad
24
25
Our Environment
SUSTAINABLE GREEN PRACTICES
We are committed to achieve a cleaner environment and comply with all relevant legal requirements:
Our integrated environmental management
practices ensure that our operations are both
profitable for our shareholders and have minimal
impact on the environment. Our core policies
including the Environmental Policy, Quality Policy,
Employee Safety & Health Policy and Enterprise
Risk Management Policy help to improve the
environment in all aspects of our operations.
• Environment Quality Act 1974
• Factories Machineries Act 1967
•Occupational Safety & Health Act 1994
•Road Transport Act 1987
•Local Government Act 1976
•Street, Drainage and Building Act 1974
DRB-HICOM Environmental Policy vs. Implementation
The Group’s Environmental Policy upholds the Environmental Management System
(EMS) which has been externally benchmarked against international certifications
including the ISO 14001. Subsidiary companies that have obtained ISO 14001
certifications are:
•HICOM Diecastings Sdn. Bhd.
Effectively Manage
Reduce, Reuse and
Recycle (3R) programmes
• 3R Programmes
• Energy Saving Programmes
•Less Paper Consumption
Continuously instil
environmental awareness
through communication
and education
• Environmental training and awareness
•Briefing and Dialogue with Contractors
•Public Relations and Education
Effectively control
discharges and emissions
from wastes management
facilities
• Environmental Quality Monitoring
•Wastewater Analysis
Meet and exceed all
applicable Malaysian
environmental regulations
and requirements
• Environmental Regulatory Risk Management
•Smoke Emission Monitoring
•Waste Management
•Leachate Rectification Programmes
•Bin Point Monitoring
•HICOM-HONDA Manufacturing Malaysia Sdn. Bhd.
•HICOM-Teck See Manufacturing Malaysia Sdn. Bhd.
•HICOM-YAMAHA Manufacturing Malaysia Sdn. Bhd.
•Oriental Summit Industries Sdn. Bhd.
•PHN Industry Sdn. Bhd. (PHN)
•Alam Flora Sdn. Bhd.
Identifying Environmental Risk
Our Enterprise Opportunity & Risk Management (EORM) plays a significant role
in identifying environmental risks and uncertainties in our efforts to reduce the
environmental impacts from the operation’s activities and facilities. Since its
introduction in 2003, the EORM model has been enhanced with the establishment
of Key Performance Indicators (using Balance Scorecard Model) for the measurement
and tracking of the strategic controls and preventive action plans identified in
the corporate risk register. Our emerging environmental risks were measured and
prioritised using a Risk Assessment Matrix with regard to its ‘significance’ and
‘likelihood of the risk’
DRB-Hicom Berhad
26
Materials Consumption (kgs)
- HICOM-Teck See Manufacturing Malaysia Sdn. Bhd.
5,461,536
5,070,535
Materials Consumption (kgs)
- KLAS In-Flight Catering Services and Cargo Services
3,854
4,549,958
20,503
40,099
2008
2009
In-Flight Catering
Cooking Oil
In-Flight Catering
Cooking Oil Boxes
Cargo Services
Plastic Sheet
2010
Materials Management
Materials usage for HICOM-Teck See, being a one-stop centre for plastic products, is
polypropylene (PP) and Acrylonitrile Butadiene Styrene (ABS). PP is a thermoplastic polymer
that is resistant to many chemical solvents, bases and acids. ABS is used by HICOM-Teck See
to make light, rigid, moulded body parts, wheel covers and joinery panels.
We encourage the conservation of natural resources by minimising waste and practising the
principles of reuse and recycling by engaging all employees and supply chain partners. The
materials recycling rates in HICOM-Teck See have been constant for the period between
2007 and 2010 which are estimated at approximately 1-3%. All of our Manufacturing and
Engineering (M&E) companies recycle 100% of their packaging.
KLAS is an independent ground handler that provides a comprehensive range of services
including ground handling services, cargo handling services, in-flight catering services,
aircraft maintenance and engineering services. Although KLAS is involved in delivering up to
2,555,000 meals per year, it continues to find ways to minimise environmental impacts from
its operations. The key materials consumed by KLAS for its in-flight catering services and
cargo services in FYE 2011 can be seen in the chart below.
• Our Environment •
27
Our Environment
(continued)
Waste Management
DRB-HICOM through its subsidiary, Alam Flora, manages and operates waste disposal and
provides other environmental services including the collection of domestic waste, cleansing
of drains and management of disposal sites and 3R (Reduce, Reuse and Recycle). The 3R
programme introduced by Alam Flora was designed to help reward the public for recycling
their waste. In FYE 2011, a total of 2,154,457 tonnes of waste was collected during operations
by Alam Flora and its contractors.
One of our subsidiaries, PHN, works with the Government and third party suppliers in
managing its waste. These include the Department of Environment and Tex Cycle Sdn. Bhd.
We are also involved in clearing up illegal dumping upon request by the Local Authorities
through our subsidiary, Alam Flora. Collection is carried out on a monthly basis in persistent
illegal dumping areas. The breakdown of total illegal dumping handled by Alam Flora by
month can be seen below.
Total Illegal Dumping Handled by
Alam Flora Sdn. Bhd. (tonnes)
2,131
2,077
1,971
1,927
1,954
Total Collection and Cleansing Wastes Handled by
Alam Flora Sdn. Bhd. (tonnes)
2,170
2,061
2,116
2,092
1,850
1,593
1,204
1,828,750
1,951,078
2,052,414
2,093,083
2,134,180
Apr
2010
2007
2008
2009
2010
2011
Waste Recycled by Type
- Alam Flora Sdn. Bhd.
Paper
Glass
Plastic
Steel
Aluminium
E-Waste
Beverage
Others
DRB-Hicom Berhad
28
68.26
0.30
13.00
16.30
1.70
0.20
0.04
0.20
May
2010
Jun
2010
Jul
2010
Aug
2010
Sep
2010
Oct
2010
Nov
2010
Dec
2010
Jan
2011
Feb
2011
Mar
2011
Scheduled Waste Management
We comply with the Environmental Quality (Scheduled Waste) Regulations 2005 which
outlines the policies on the disposal, treatment, storage and labelling of scheduled waste.
Our scheduled waste is disposed off or treated at prescribed premises only. Identified
toxic scheduled waste and its respective waste code in HICOM-Teck See is categorised
in the Scheduled Waste Notification Form. Waste chemicals and empty chemical bottles,
containers, cans and drums for reclamation or disposition are delivered to the central waste
collection. Plastic wrappers or sacks used for chemicals may be disposed as normal rubbish
at the dump yard.
At PHN, schedule waste is disposed on weekly/bimonthly basis and is categorised according
to the type of waste:
•SW – 410 : contaminated rags, PPE (Personal Protective Equipment) and absorbents
•SW – 409 : contaminated container
•SW – 306 : waste oil
Management of Hazardous Waste
Schedule waste generated by DRB-HICOM is stored temporarily in-house and kept in the
designated storage area with adequate spillage or leakage prevention construction. All liquid
scheduled waste is kept in 45-gallons drums to prevent spillage or leakage with proper labels
and seals. This label includes the quantity and category of scheduled waste, treatment and
disposal. Hazardous chemicals are labelled according to OSHA (Classification, Packaging and
Labelling of Hazardous Chemical) Regulations 1997. This waste is sent to the DOE licensed
contractors for treatment.
HICOM Teck-See practices very strict health, safety and environmental management on
the storage of hazardous chemicals. All incompatible materials are stored in different
compartments. Its health, safety and environmental policy explicitly states that all organic
solvents should be stored in labelled polyethylene or polyethylene lined containers and
are stored away from acids, alkalis or oxidizers. Flammable chemicals that are stored in the
production line must be stored in the approved safety cabinet. We expect all subsidiaries
to conduct decontamination activities when an area is no longer used for storing, mixing or
any activity involving chemicals. The following information must be available on the label
of any hazardous waste:
Total Scheduled Waste Disposed by
HICOM Teck-See Manufacturing Malaysia Sdn. Bhd. (tonnes)
198
•Name of hazardous chemical
•Name, address, telephone number of the supplier
• Danger symbol and indication of danger
158
•Nature of special risk associated with the use of chemical
Energy Conservation and Management
104
2009
2010
2011
The management of greenhouse gas emissions is an important global issue. In DRB-HICOM
Corporate Office, we see that our greenhouse gas emissions are mainly derived from the
use of utilities, fuels and environmental systems. We continue to implement a range of
programmes to deliver ongoing greenhouse gas emissions savings through various energy
saving initiatives being implemented in our daily operations. These include:
•Switching off lights and air-conditioner after office hours
•Regular testing and calibration of all M&E equipment and systems to ensure that
operation and maintenance schedules are kept up-to-date
29
Our Environment
(continued)
In subsidiary companies such as PHN, various energy saving programmes have been
implemented including the introduction of alternative energy. Other programmes include:
CO2 emission resulted from operations – Alam Flora
CO2 Emission Resulted from Operations
- Alam Flora Sdn. Bhd.
•Reducing electricity consumption by installing transparent panels to wall and roof
•Practising paperless environment by introducing Centralised Quality Documentation for
company manuals and quality procedures to accommodate all 5 satellite plants
•Increasing number of parts per pallet and modifying pallet height to reduce transportation trip
50.74
•Optimising utilisation of machine by improving output per hour
29.72
25.78
Total Energy (Electricity) Consumption CO2 metric tonnes *
2006 3,634,843 2,024.64
2007 3,207,577 1,786.65
2008 3,423,531 1,906.94
2009 3,505,991 1,952.87
2010 3,677,377 2,048.33
* Estimates
are based on the indirect Greenhouse Gas emissions protocol of the World Business Council for
Sustainable Development and the World Resources Institute
Electricity Consumption (kWh)
- Corporate Office, DRB-HICOM
33.55
31.99
The table below shows the electricity consumption for Wisma DRB-HICOM and resulting
CO2 emissions from 2006 to 2010.
2007
2008
2009
2010
Water Management
Syarikat Bekalan Air Selangor (SYABAS) supplies domestic water to Wisma DRB-HICOM.
Our environmental impacts relating to water use is relatively high due to the nature and
size of our operations. Actions to reduce water consumption include flow restriction devices
on taps and the upgrading of toilet cisterns. Air-cooling units have been installed in most
of our M&E subsidiaries. Sewage water generated from our operations is channelled to the
centralised sewerage networking system which is disposed of at the treatment plant under
Indah Water Konsortium (IWK).
Total Water Discharged (m3)
- HICOM-Teck See Manufacturing Malaysia Sdn. Bhd. (tonnes)
3,634,843
3,505,991
3,677,377
25,281
3,423,531
20,262
19,979
2009
2010
3,207,577
2006
DRB-Hicom Berhad
2007
2008
30
2009
2011
2010
2011
GOING BEYOND GREEN AND CLIMATE CHANGE
We share the global concern that the climatic changes occurring today have been speeded up because of man’s activities. We support the action of the United Nations, governments and the world at
large by implementing steps to minimise climate change risks. Holiday Inn Kuala Lumpur Glenmarie continues to record high occupancy rate due to its prestigious brand and quality service. Despite its
busy operations, Holiday Inn Kuala Lumpur Glenmarie has proven its commitment to environmental conservation by minimising its impact throughout its life-cycle. Holiday Inn Kuala Lumpur Glenmarie
achieved the EarthCheck Bronze benchmarked status in April 2010 by the EarthCheck Certifications which is the world’s leading environmental practices monitoring programmeme used by the travel
and tourism industry.
A list of EarthCheck benchmarking measures can be seen in the table below:
Benchmark
Indicator Measure
Achievements
Sustainability Policy
Policy is produced and in place
Environmental Management System (EMS) is integrated into
everyday business activities and monitored by the Holiday
Inn Kuala Lumpur Glenmarie Green Team.
Energy Consumption
Energy used (MJ/Guest Night)
Energy consumption was marked at 300.9MJ per Guest Night
which was 10.4% better than the BPL
Potable Water Consumption
Potable water consumed (ℓ/Guest Night)
1,819.7ℓ per Guest Night which was 2 times below the BL
Water saving (Checklist rating)
Water saving rating was at the BL level
Waste sent to landfill (ℓ/Guest Night)
Waste produced was marked at 70.8ℓ per Guest Night
which was 17.7 times below the BL
% of total waste produced that is recycled/reused/
composted (%)³
Waste Recycling rating was 9.7 points better than the BL
Local employment
Community commitment was 5% better than the BL
Community contributions
Community contributions rating was 19.5 points better
than the BL
Paper Products
Paper product types used
Paper products rating was 1.1 points better than the BPL
Cleaning Products
Cleaning product types used
Cleaning products rating was 8.9 points better than the BPL
Pesticide Products
Pesticide product types used
Pesticide products rating was 8.9 points better than BPL
Waste Sent to Landfill
Community Commitment
* BPL : Best Practice Level
* BL : Baseline Level
31
Our Environment
(continued)
MINIMISING ENVIRONMENTAL Impacts FROM OPERATIONS
We continue to research and implement initiatives to minimise our environmental impacts from day-to-day operations. Compliance with relevant laws and regulations is our base target but
we will continue to aim to achieve a more significant positive impact.
Impact from Transportation
We continue to regularly inspect smoke emission levels from our operating vehicles according to our Planned Preventive
Maintenance (PPM) schedule. We are pleased to report that to date, we have not received any issues or complaints from the
Department of Environment.
Alam Flora sends the collected waste to a transfer station prior to sending them to a landfill to compress waste and minimise
spillage. Our leachate rectification programme helps to mitigate major spillage during operations. The newly installed larger
leachate storage on all vehicles has significantly reduced the incidence of leachate spillage and its accompanying problems. Our
leachate storage tanks have been upgraded to accommodate 700 litres from an initial 250 litres.
We are proud to report that there have been no cases of major spillage and complaints in collection and transportation during
this reporting period.
Impact from Air Quality
During FYE 2011, our ambient air quality levels were 100% in compliance with air quality guidelines.
Wastewater Discharge
We continue to monitor our wastewater discharge from our vehicle washing bays to ensure its compliance with the Sewage and
Industrial Effluents 1979. We only use chemicals for washing activity which are environmentally friendly and safe for workers.
DRB-Hicom Berhad
32
BIODIVERSITY AND CONSERVATION
Conservation of Lake Kenyir
Alam Flora Sdn. Bhd. (Alam Flora) organised a communal
tree planting event at an illegal dumping ground near Taman
Tasik Manjalara on 20 February 2010. The initiative prevents
the site from being reused as an illegal dumping ground and
to green its surroundings. The tree planting event themed
‘We Green The Environment’ was officiated by YBhg Dato’
Khalid Abdol Rahman, Group Director of Corporate Planning,
DRB-HICOM. More than 200 people from Alam Flora,
DRB-HICOM, Kuala Lumpur City Hall, Non-Governmental
Organisations, Resident Associations and Masjid Al-Imam AlGhazali took part in the event which includes activities such
as garbage collection and landscaping the area surrounding
the lake and parking areas around the mosque.
We spent RM10 million upgrading and refurbishing Lake
Kenyir Resort and Spa in a bid to position the resort on the
international tourism map. This largest lake in Malaysia spans
over 260,000 hectares and is a gateway to Taman Negara
known for its lush tropical jungle. Kenyir is also home to
9 species of hornbills in Asia.
We believe by incorporating Hornbill & National Park into our
logo is complementary to our focus on ECO Tourism. Policies
and implementations to conserve the environment include:
•Composting grass and trees that have been pruned
•Separating waste such as cans, paper and metal
•Special treatment of waste oil by third party suppliers
•Discharging sewerage plant water underground away
from the lake
•Prohibiting vehicles from driving around the Resort
•Prohibiting open fire at any parts of the Resort
•Planting holding plants and bushes in areas prone
to erosion
We continue to work with WWF and the Terengganu Wildlife
Department to nurture the flora and fauna in this 60 acres
area. Results show that our conservation efforts have been
positive as we have discovered an increase in the number
of species known as “Oriental Pied” from eight in 2007 to
34 in 2011. We have also discovered a significant increase in
the number of mammals around the Resort. We are pleased
to report that there has not been any habitat destruction or
disturbance in the area.
We have responded to climate change risks including the risk of
flooding during monsoon season by recently installing a lightning
arrestor which helps protect the asset and its surrounding.
33
Our Environment
(continued)
Save the Sumatran Rhinos
Honda and WWF-Malaysia initiated the five-year project
to save Sumatran Rhinos and pledged RM5 million to fund
WWF-Malaysia’s conservation efforts. The project aims to
educate the future generation and the Malaysian public
on environmental and conservation issues through various
activities. Honda Malaysia continues to raise awareness
among students on caring for the environment and living in
harmony with Mother Nature by focusing on this species.
The Sumatran Rhino is a critically endangered animal unique
to Malaysia and Borneo. The Honda Malaysia conservation
team travelled to four schools in Kedah to highlight the
Rhino conservation initiatives during the 2010 roadshows.
More than 850 students in Kedah from SK Jalan Datuk
Kumbar, SK Langgar, SRJK (C) Sin Kwang and SK Sungai
Petani attended the informative environmental talk. Honda
Malaysia has addressed over 8,800 primary school students
to play an important role to preserve the environment
to date. Since 2007, Honda Malaysia’s conservation team
has visited 48 schools in the Klang Valley, Penang, Johor,
Malacca, Kuantan, Ipoh, Perlis and Kedah.
OTHER ENVIRONMENTAL INITIATIVES
DRB-HICOM Nature Trail 2010
DRB-HICOM organised a three-day, two-night road trip
to Taman Negara to provide a unique experience while
appreciating the nature. The trip was supported by 41 business
and news journalists, photographers as well as representatives
from the various divisions of the Group. We hope to build a
sustainable relationship with our Media partners through this
activity and help them build a fundamental understanding
about the Group. Activities included a night jungle walk,
jungle trekking, rapid shooting, a visit to Batiq Tribe, a tour of
an Orang Asli settlement and a jungle-themed party featuring
a nature-based musical contest.
DRB-Hicom Berhad
34
Uni.Asia e-Waste Recycling Campaign
Uni.Asia General Insurance Berhad introduced a three-day
e-Waste Recycling Campaign, recognising that irresponsible
disposal of electrical components may contaminate our soil
and rivers. The Campaign was held as a joint-effort with
Alam Flora Sdn. Bhd. at Menara Uni.Asia which aimed at
encouraging responsible behaviour when disposing of used
and unwanted electronic equipment.
The Campaign has educated the public on the proper
way to dispose off e-waste which includes computers,
televisions, radios, VCD/DVD players, fax machines, copiers,
mobile phones, batteries, adaptors, chargers and other
electronic items that contain lead and mercury. A total of
RM919.60 was collected through the sale of 52 monitors, 74
CPUs and 298kg of other e-waste. The money raised was
donated to Persatuan Kebajikan Warga Tua dan Kanak-Kanak
in Kepong along with the RM1,851 cash donation, food,
clothes and groceries collected. Uni.Asia donated a lump
sum of RM5,000 in cash and household goods valued at
RM2,400 to this home.
Project Revive was held in Teluk Chempedak on 18 and 19
March 2011. The project was officiated by YBhg Dato’ Hoh
Kai Mun, Chairman of Jawatankuasa Kerajaan Tempatan, Alam
Sekitar dan Kesihatan Negeri Pahang. The main highlight
this year is the throwing of mud balls which is known
as an effective microorganism (EM) to improve the water
quality and revive aquatic life. The mud balls help stimulate
mangrove growth and break down the sludge deposited in
rivers and the seabed. Other activities include a beach cleanup, painting of beach amenities, environmental conservation
talks and an exhibition.
ALAM FLORA Recycling Campaign
Alam Flora participated in the recycling campaign hosted
by Jabatan Pengurusan Sisa Pepejal Negara (JPSPN) at SK
Ampang Pecah, Kuala Kubu Baru, on 24 April 2010. The
event was officially launched by YB Datuk Seri Panglima Haji
Lajim bin Haji Ukin, Deputy Minister of Housing and Local
Government. Alam Flora took the opportunity to boost
public environmental awareness by distributing educational
recycling materials. Other activities include tree planting, a
quiz and the introduction of recycling bins to the school.
Project REVIVE
We participated in Project Revive which is a roadshow
of green events around Malaysia organised by Revival
Productions Sdn. Bhd. We have been supporting this project
to increase the awareness among our employees and inspire
Malaysians to adopt a ‘Greener Living’ lifestyle. This year,
Alam Flora also organised a separate environmental awareness
talk in conjunction with Earth Day on 21 April 2010. The talk,
“Waste Management and Us”, was delivered by the Manager of
Quality Assurance and Environment Management Department
to employees and guests of Melia Hotel Kuala Lumpur which
was attended by friends from the media. Topics discussed
included waste reduction, recycling, carbon footprint and the
disposal of domestic and industrial waste.
Emission of Ozone-Depleting Substances
The ozone layer is essential for the survival of humans and
other animals. Certain gases including Chiorofluorocarbon
(CFC) and Hydrochlorofluorocarbon (HCFC) damage the
ozone layer. We have committed to reduce our emission of
ozone-depleting gases, in line with the Montreal Protocol.
Part of the protocol requires phasing out the use of CFCs
by year 2012. Accordingly, we have introduced a Preventive
Maintenance programme to minimise breakdown cases
which requires the recharging of refrigerant gases such as
R12/22 (CFC/HCFC).
Other initiatives to minimise the risks resulting from chemicallyactive gases such as the carbon monoxide (CO) and other
halogenated ozone depleting substances (ODS) include:
•State-of-the-art ventilation, especially in our car park,
which includes a carbon monoxide detector
•High efficiency air-conditioning chillers
• Floor-by-floor air handling units
•Variable speed drive water pumps
The Glenmarie Asset & Management team closely monitors
the CO levels over time to ensure that we are not
contributing to the ozone layer depletion.
Green Procurement
In FYE 2011, our Procurement Department introduced
Environmentally Preferable Purchasing (EPP) elements in its
invitation to bid. EPP, often referred to as “green purchasing”,
is the affirmative selection and acquisition of products
and services that most effectively minimise negative
environmental impacts over their life cycle of manufacturing,
transportation, use, recycling and disposal. Examples of
environmentally preferable characteristics specified by our
Procurement Department include products and services
that conserve energy and water; minimise the generation of
waste and release of pollutants; and products made from
recycled materials which can be reused or recycled.
Bidders are required to provide their company’s green
initiatives as part of their tender submission. In addition,
DRB-HICOM Group Companies adopt environmentally
preferred goods and services in support of the Green
Procurement commitment.
35
Our Environment
(continued)
Sustainable Product – Green Technology
Under the revised National Automotive Policy in October
2009, the Government announced that local assemblers and
manufacturers of hybrid/electric vehicles and the development
of related infrastructure would be given 100% investment
tax allowance or pioneer status for a period of 10 years.
To promote this environmentally-friendly mission, 50%
exemption on excise duty for locally assembled/manufactured
hybrid or electric vehicles or provision of grants was also
introduced under the Industrial Adjustment Fund.
Currently, Honda Malaysia Sdn. Bhd. and UMW Toyota
Motor Sdn. Bhd. are the only two official franchise holders
offering their own hybrid models in Malaysia; the Honda
Civic Hybrid and Toyota Prius respectively. Relying on its
excellent quality, DRB-HICOM extended the warranty period
of the vehicles’ battery which is the driving force of these
hybrid’s electric motors. These green technology vehicles
are created to cater for exceptional fuel economy. They are
powered by Honda’s new generation of Integrated Motor
Assist (IMA) System that ingeniously recaptures and stores
kinetic energy from vehicle braking and deceleration and
supplies additional power for acceleration when required.
We also introduced the Ecological Drive Assist System (Eco
DRB-Hicom Berhad
36
Assist) which further improves vehicle fuel efficiency and
performance. Maintaining safety as our key focus, Honda
All-New Insight has obtained a 6-star JNCAP safety rating for
driver and 5-star JNCAP safety rating for passengers.
In the same year, MODENAS was heavily focused on finalising
its production plan of CTric, the first electric bike in South
East Asia. CTric will also create history by being a vehicle
which is fully developed, assembled and manufactured in
Malaysia. It uses 80 per cent local components and 20 per
cent from China. Recent Research and Development shows
that this electric bike will result in 30% saving through its eagle
glide system. CTric uses a nano gel battery concept which
prevents spillage during accidents. We aim to boost Malaysia’s
competitive edge through this innovation which is in-line with
the Government’s mission of economic development.
Continuous Achievements in Protecting the Environment
Environmental Expenditure by Type
The table below shows the efforts being practiced by one of our subsidiaries, PHN, in mitigating
environmental risks.
The table below shows the breakdown of environmental expenditures of Alam
Flora in FYE 2011.
Mitigation/Action
1. Metal scraps
• Collected by the contractor ING CHUAN HARDWARE Sdn. Bhd.
• Landfill: Kg Jawa, Klang, Selangor
• Frequency: Four to five times daily
2. Water use
• T he Waste Water Characteristic Study (WWCS) which was conducted
by PROCOMA ENVIRONMENTAL (M) Sdn. Bhd. recently shows that the
volume of water discharge is relatively low
3. Emissions
• C
hemical exposure monitoring which was conducted by GLOBAL SAFE-T
Sdn. Bhd. in December 2010 shows that our emission level is below the
Permissible Exposure Limit (PEL)
4. Noise
• N
oise monitoring study shows that the noise level in PHN plants is below
the permissible limit
• All workers have passed the audiometric test which was conducted recently
5. Waste • Waste schedule disposal is collected by TEX CYCLE Sdn. Bhd. on a weekly basis
• Waste treatment/disposal facility located at Taman Perindustrian Kinrara,
Puchong Selangor
6. Air
• T he recent air sampling study shows that the concentration of dust
particulate and gases emitted from 15 unit exhaust stack is within the
respective standard limit. Concentration of Mercury, Cadmium, Lead,
Arsenic, Zinc, Copper, Antimony, HCL, HF, H2SO4, H2S and CL2 emitted
from all exhaust system also does not exceed the standard limit
Type of Expenses
(RM)
Environmental Quality Monitoring (EQM)
•Surface water quality monitoring at landfills
and oil interceptor monitoring at depots
22,030
Tree planting activity
1,500
Environmental Training
3,800
ISO 14001 certification
42,100
Recycling activity
2,167
TOTAL
71,597
Compliance
We conduct a continuous cycle of risk assessment, internal auditing and
detailed recording of non-compliances in addition to our commitment to
these regulations. During the FYE 2011, we did not face any penalties for
violations of environment-related laws and regulations. We comply with all
significant environmental requirements under the Department of Environment’s
legal regulations. There were no significant fines or penalties incurred for
environmental non-compliance during the course of operations.
HICOM-Teck See is also performing well in the area of environmental protection by continuing its best
practices in minimising the environmental impacts. Some of its practices include:
• Covered parking. Result: Cost saving RM873.36/year
• Timer for all 10HP air-cond. Result: Cost Saving RM4,357.08/month
• Changed all transparent roofing sheets. Result: Cost saving RM5,938.92/month
• Changed all lighting to electronic ballast. Result: Cost Saving RM1,632/month
37
Guiding their
Lessons in Life
What we provide them in their education will last
through a lifetime, and what they will gain is the
never ending lessons of their own lives
DRB-Hicom Berhad
38
39
OUR MARKETPLACE
OUR COMMITMENT IN THE MARKETPLACE
DRB-HICOM and its subsidiaries are committed to
delivering high quality products and services with
excellent level of effectiveness and efficiency. Our best
practices are summarised in our “HICOM Management
System” (HMS) which serves as a testimony to our
commitment to ensure excellent delivery to our
stakeholders. The best practices or initiatives being
promoted were guided by the nine HMS principles.
HMS 9 Principles
Visual Management
Total Employee Involvement & Development
Long Term Business Thinking
DRB-Hicom Berhad
40
Quality Right 1st Time
Every Time
StandArdisation
Production Levelling
Flexibility
Pull System
Waste Elimination
Best Quality - Lowest Cost - Shortest Lead Time
- Best Environment & Safety - High Morale
Setting a Solid Foundation
The foundation of HMS lies in strategic thinking, effective employee participation
and having a visual workplace. HMS helps to promote a conducive environment
whereby all employees strive to deliver exceptionally commendable products
or services to all stakeholders in relation to quality, cost, timeliness, safety
and environment. In achieving this, HMS emphasises good implementation of
5S and Autonomous Maintenance.
5S is a concept of workplace methodology to organise work space for efficiency and
effectiveness by identifying and storing items used, maintaining the area and sustaining
the new order. It also helps to instil ownership of the workplace and processes in each
employee. The following depicts the iterative step-by-step 5S principles for people to
become naturally disciplined and organised, hence setting good image while being ready to
attract new businesses.
1S - Seiri (Sort)
1S
2S
Sort needed and unneeded items.
Remove unneeded items at work
place and keep only what is needed.
2S - Seiton (Straighten)
SEIRI
SEITON
Place thing in good order or
arangement so they can easily be
reached whenever they are needed.
3S - Seiso (Shine)
Keep things clean, polished
and restored ; no trash or dirt in
the workplace
SHITSUKE
4S - Seiketsu (Standardise)
SEIKETSU
4S
5S
SEISO
Maintain 1S-3S by establishing standard
and ownership and establish
5S Boards meant for effective
communication tool.
5S - Shitsuke (Sustain)
3S
Train people to follow good work habits
and to strictly follow the standards
established, as well as continuously
improve 1S-3S conditions.
• Our MARKETPLACE •
41
Our MARKETPLACE
(continued)
Autonomous Maintenance (AM) refers to the activities where employees are trained to
perform basic maintenance activities independent of the maintenance department. The goal of
the AM initiative is to develop knowledgeable workers who are responsible for ensuring:
• The prevention of equipment deterioration
• The restoration of equipment to its optimum state
•That basic conditions are established to maintain equipment
The introduction of AM in Manufacturing and Engineering Sector was proven successful as
contamination levels were significantly reduced in FYE 2011 and self-initiated improvements
have also been escalated. This has been replicated to other Group companies as a result of
this success. Basic equipment condition is satisfied through the following three steps:
I. INITIAL CLEANING
1.Perform 3S :
•Seiri
: Sort needed and unneeded items. Dispose the unneeded items
•Seiton : Arrange needed items and label
•Seiso : Clean and Restore
2.Clean machine/tooling from dirt or foreign material
3.Provide lubrication where necessary
4.Look for abnormalities and perform restoration
5. Identify hard to clean areas
II. COUNTERMEASURES TO SOURCES OF CONTAMINATION
1.Analyse each contaminant issue to identify the root cause. A cleaning checklist was
introduced which highlights each area of concern, tools required for cleaning and
scheduled cleaning activities.
III. CLEANING AND LUBRICATING
1.Ensure lubrication of relevant reciprocating, sliding and rotating parts.
2.Monitor lubricant level and see to it that:
• The lubricant supply unit is working properly
•Oil is at the correct level
•No damaged pipes or tubes
•No leakage from valves or fittings
•No clogging to the pipes or valves
•Adequate lubricant on the lubricating surface
•No over-heating
3.KPI Monitoring
DRB-Hicom Berhad
42
Deployment and Monitoring Process
Underpinning the nine principles are the following initiatives implemented to achieve the desired performance:
Strategic Management
•Business Plan
•Succession Planning
•Capital Investment
•Customer Satisfaction Survey
• Employee Satisfaction Survey
•Product Portfolio Analysis and Planning
•Product Profitability Analysis and Planning
Process Ownership Thinking
•New Employee Induction
•On the Job Training (OJT)
•Skill Chart
•Manufacturing Competency
5S
•Seiri (Sort): Sort out / Remove unrequired items from the
work place and retain what is needed
•Seiton (Straighten): Place things in good order so they can
easily be reached whenever they are needed
•Seiso (Shine): Keep things clean and polished; no trash or
dirt in the workplace
•Seiketsu (Standardise): Maintain cleanliness after cleaning by
establishing cleaning standards for 1S – 3S
•Shitsuke (Sustain): Train people to follow good work habits
and strictly follow the standards established
Autonomous Maintenance
Visual Control
•Visual Control Board
•Andon System
•Signage
• Footprint
•Hansei (Reflect and Correct)
• First In First Out (FIFO)
•Min – Max
•Obeya (Big visual control room)
Quality Management System
• International Management Systems (IMS)
Employee Suggestion Scheme (ESS)
•Policy
• Implementation
•Monitoring
Continuous Improvement Programme
• Innovative Creative Circle (ICC)
• Quality Improvement Team (QIT)
• Daily Inspections
• Eliminate contamination
•Cleaning
•Abnormality Detection
Just In Time (JIT)
•Pull System
•Kanban Card
•Supermarket
Value Stream Mapping
•Current State Map
• Future State Map
Jidoka – ‘Automation with Human Touch’
• Detection of abnormalities
•Mistake Proofing
Single Minute Exchange of Dies (SMED)
• Quick changeover with minimum waste
Flexible Manufacturing System
•Resource Flexibility
•Routing Flexibility
•Kitting Supply System
Implementation of HMS initiatives at Manufacturing and Engineering companies are assessed annually. These cover areas of HMS initiatives deployment, implementation and key KPI achievements.
The result of this assessment has improved by 33% since its first introduction in FYE 2007. One of the obvious achievements is the inter-company and intra-company replication of initiatives
and the continuation of benchmarking activities.
43
Our MARKETPLACE
(continued)
HMS Expansion Group-Wide
Quality Management System
The sucess of HMS in cascading and propagating best
practices in the Manufacturing and Engineering companies,
we officially promoted the system to the other sectors
within the Group in FYE 2011. Promoted initiatives include
5S, Continuous Improvement Programme and Employee
Suggestion Scheme. HMS has now become an abbreviation
for HICOM Management System; replacing the previous
abbreviation of HICOM Manufacturing System. This is due to
many initiatives becoming applicable across all other sectors
and industries.
Our commitment to ensuring quality products and services
is also evident in our subsidiaries which are certified to
ISO 9001 and ISO TS 16949. These standards help to direct
and control the quality of our products and services. We
strive to go beyond compliance. In FYE 2011, various quality
monitoring initiatives were also introduced such as Poka Yoke
(mistake proofing), Six Sigma and Value Stream Mapping.
The relevance of best practices was made more evident by
conducting benchmarking visits, in addition to awareness
trainings on the initiatives. For the first time, companies from
all sectors were subjected to HMS Assessment in FYE 2011.
We are pleased to announce its successful implementation
which was justified by the achievement of Bronze Level HMS
implementation by all companies.
Continuous Improvement Programme
In realising the need for a continuous team-based
improvement programme, we organised Innovative Quality
Circle (ICC) Convention and Quality Improvement Team (QIT),
for non-executives and executives of subsidiary companies.
A recent convention held during FYE 2011 was attended by
companies from Manufacturing and Engineering, Services,
Property and Auto Distribution sectors. The objectives
of the event were to encourage the culture of sharing
challenges, develop healthy competition among subsidiaries
and to promote the importance of continuous improvement
programmes such as ICC to our subsidiaries.
We are confident that programmes such as ICC are able to
encourage the development of more innovative procedures
which continuously improves our business processes.
It also emphasises the process of planning, brainstorming,
monitoring, standardising and horizontal replication.
DRB-Hicom Berhad
44
A historic collaboration between DRB-HICOM and
Volkswagen has been finalised to assemble vehicles for
the Malaysian and ASEAN markets. VDA 6.3 has been
introduced to ensure high quality products as a result of
this partnership. Verband der Automobilindustrie (VDA) or
the Association of The Automotive Industry is a German
interest group of the German automobile industry; the VDA
6.1 is a German quality standard certification initiated by
the automobile industry. The VDA standard is divided into
Management and Products; and Processes. In addition to
the basic requirements of a Quality Management System, it
also considers the special product-related requirements of
Volkswagen purchased parts, the production processes, and
special technical inspection requirements. Having realised its
importance, VDA 6.3 awareness training has been conducted
during June 2011 to the VW Project team members.
SUSTAINABLE PROCUREMENT
We practice strict procurement ethics which promotes fair
dealing and prevent abuse. Our procurement policy also
favours the appointment of local vendors and suppliers.
Currently, more than 95% of our vendors and suppliers are
sourced locally.
During 2010, our subsidiary, Bank Muamalat Malaysia Berhad
started to implement the e-procurement system to maximise
efficiency, reduce cost and to conserve the environment by
reducing paper waste. All transactions are done electronically.
The audit trail module eases the control and monitoring of
compliances. Vendors’ pre-qualifying evaluation includes social
and environmental components such as the status of vendors’
ISO 14001 standards and quality assurance standards.
PRODUCT RESPONSIBILITY
Product Life-Cycle – Health and Safety Impacts
During the product life cycle process, rigorous assessments on their implication to the
environment were conducted.
In the whole product-life-cycle stages depicted below, careful assessments have been
carried out to make informed decisions on how to mitigate the respective safety, health and
environmental impacts. The assessments range from material assessment during Research and
Development to avoid usage of hazardous substances, foresee risks during product testing by
conducting pertinent product lab test, to handling of rescheduled waste are observed.
Meanwhile, all quality Management systems (ISO 9001, ISO TS16949, ISO 14001, OHSAS 18001)
will ensure there are adequate activities leading to the attainment of quality requirement,
planning, and compliance with regard to safety, health and environment.
1
2
3
7
6
5
Customers
Relationship
Management
Research &
Development
Product
Testing
Disposal
Marketing &
Communications
Compliance
4
No.Processes
DRB-HICOM Approaches
1Research & Development
•Ban of hazardous materials use
•Ensure product design complies with health
and safety
2 Product Testing
•End product must go through the Failure Mode
Effect Analysis (FMEA) to identify its risks
3Compliance
•Jabatan Pengangkutan Jalan (JPJ) Malaysia
• Jabatan Keselamatan Jalan Raya (JKJR)
• ISO 9001
• ISO TS16949
• ISO 14001
4Assembly • All assembling personnel are to comply with
the SOPs
5Marketing & Communications
•Market Survey, Product and Price Positioning
• Product launching
• Product manual
• Traditional marketing
6 Disposal •SOP on solid and scheduled waste management
•DOE compliant recycling and waste
treatment practices
7 Customers Relationship
Management (CRM)
•Personal customer care
•Hotline
•Customer Satisfaction Surveys
Assembly
45
Our MARKETPLACE
(continued)
Product Life-Cycle – Health and Safety Impacts
We have a few mechanisms for our automotive division to gauge customer satisfaction level.
These include:
Market Survey
Service Campaign onducted each year by region and selected dealers based on
C
the product populations and intended focus areas. It is done for
new model and current models available in the market to monitor
satisfaction levels. This focuses mainly on product acceptance,
product quality and reliability, after-sales services and spare parts.
T his activity is conducted by our Service Department by offering
free services to the customer and promoting awareness for proper
maintenance of motorcycles. Survey questionnaires are distributed to
customers to provide feedback on products they are currently using.
Service Centres Service centres are a mechanism to obtain feedback from
customers on the level of satisfaction after using our
product. Service centres forward the survey questionnaires
to the customer. Any comment and improvement required
is channelled to the QMT for product improvements.
b)On-Line Satisfaction Poll
Direct users have the opportunity to provide feedback on
issues related to our products and services through the
Internet. Comments received are reviewed by the Website
Committee before being escalated to the management
Customer Privacy
DRB-HICOM’S CRM module limits access to detailed customer contact lists. This secured layered access
to data on clients is instrumental in preventing any breaches of customer privacy. Information affecting
corporate bodies, customers and employees cannot be disclosed in any manner without proper
authorisation. The obligation of employees to protect and preserve such proprietary, confidential or
sensitive information continues even after leaving the service of the Company. Customer privacy is
protected and regulated throughout DRB-HICOM’S Code of Ethics. There have not been any breaches
in customer privacy or loss of customer data during the period under review.
PUSPAKOM and Safety
PUSPAKOM together with the Road Transport Department (JPJ), Department of Environment
(DOE) and National Anti-Drug Agency (NADA) conducted a road block exercise on
2 April 2010 at the Kajang bus station in Selangor. The exercise targeted drivers of commercial
DRB-Hicom Berhad
46
vehicles, particularly public buses and taxis, which did not comply with JPJ guidelines. This
was supported by Encik Hisham Othman, PUSPAKOM’s CEO who promoted public awareness
of vehicle safety by spot checking tyres, seats, fire extinguishers, smoke emission level
and inspection certificates. Fines issued during the event include 20 summonses for non-compliance on
road safety, five fines for excessive smoke emission and three drivers who tested positive for drugs.
PUSPAKOM Premier Mobile Inspection (PMI)
PUSPAKOM offers inspection services of both passenger and commercial vehicles and is the
sole company for computerised vehicle inspection in Malaysia. PMI is currently available in
the Klang Valley, Penang and Johor Bahru. The types of inspection offered include engine
number inspection, chassis number inspection, cut and joint inspection, visual inspection,
undercarriage inspection and tinted glass inspection.
The Hire-Purchase Act requires motorists wishing to sell their vehicles to send the cars for a
comprehensive 18-point inspection by Puspakom before entering into a hire-purchase agreement.
The inspection will include computerised testing for smoke emission, brakes, side-slip and
suspension. Puspakom has been appointed by Kementerian Perdagangan Dalam Negeri, Koperasi
dan Kepenggunaaan (KPDNKK) to undertake this inspection which is known as HPI inspection.
MARKETING AND COMMUNICATION RESPONSIBILITY
Effective communication is the key to our business efficiency and profitability both within
the organisation and between our organisation and our customers. Employees are encouraged
to accept responsibility for the quality of communication with our customers. Each contact
with a customer in person, on the phone or by mail is regarded as an opportunity to
improve the quality of communication between us and the people whose needs we serve.
Alam Flora’s operational employees are equipped with a two-way communication system for
immediate field contact to act quickly on requests and complaints. This includes a customer
care counter for walk in customers, toll-free line, email, fax and letters. Their in house magazine,
“FLORA”, is distributed periodically to disseminate our services information and build a culture of
clean environment. FLORA is available to all employees, shareholders and stakeholders.
Training is being provided to all sales and marketing personnel each time a new product is
introduced into the market. Training is also provided to dealers. We conduct a Defensive Training
Module for end-users to educate them on product usage, safety and maintenance. Information
to end users is available through media advertisements (newspaper, magazine), streamer, radio
commercial, brochures, forums, blog, website banners, email blast and road shows.
We are pleased to report that there have been no significant incidents of non-compliance
with regulations and voluntary codes relating to marketing communications and labelling
during this period.
Awards and Recognitions Received during FYE 2011 for Our Products and Services Excellence
Subsidiary CompanyAwards Achieved in FYE 2011
PHN Industry Sdn. Bhd. •
•
•
•
•
•
•
•
•
•
1 st Runner-up Proton Kaizen Convention Category Vendor 2010
1st Runner-up Proton ICC Convention 2010
Champion, 42nd Kikuchi Press Circles Global Convention, Tokyo
Proton most improved vendor
1st Runner-up Proton ZERO Defect Programme 2010/2011
1st Runner-up HONDA Procurement Division’s NHC Convention 2010
Gold MPC Wilayah Tengah ICC Convention 2010
1st Runner-up 7th DRB-HICOM ICC Convention
Honda Best Delivery Award
1st Runner-up PERODUA ICC Convention
Oriental Summit Industries Sdn. Bhd. • DRB-HICOM Best Company (Turnaround) 2010
• TS-Lear Best Delivery Improvement 2010
• 2nd Runner-up 7th DRB-HICOM ICC Convention 2011
• 1st Runner-up MODENAS Vendor Kaizen Presentation 2010
• 2nd Runner-up 5th TOYOTA QCC Convention 2010
• MODENAS Most Improved Vendor 2010
Motosikal Dan Enjin Nasional Sdn. Bhd. (MODENAS)
•
•
•
•
Holiday Inn Kuala Lumpur, Glenmarie • Hospitality Asia Platinum Awards (HAPA)
• Best Employers Award 2011
National Productivity Award ( Special Award )
Quality Environment/5S Certification from MPC
Innovative and Creative Circle Certification from MPC
Anugerah Kecemerlangan Industri by Ministry of International Trade & Industry
Compliance of Our Products and Services
We are pleased to report that there have been no significant penalties in relation to our products and services during this reporting period. We
received minor feedback and queries on our products functions. We have formally introduced a process whereby we introduce each customer
to their service care personnel to deliver exclusive buying experience with us.
We continue to adhere to all relevant laws and regulations and work with the relevant authorities and other parties to ensure compliance.
Our initiatives include:
•
Submitting a detailed proposal to the Jabatan Pengangkutan Jalan (JPJ) Malaysia prior to introducing any new car model for JPJ to asses our compliance
status in terms of emissions release, vibration and brake function
• O
ur pricing strategy is sent to the Ministry of Finance to estimate its value and affordability according to Malaysians’ buying power hence,
to obtain approval prior to any product launching
• A
significant number of our employees are part of the Jabatan Keselamatan Jalan Raya (JKJR) committee to discuss issues of road safety and
support their research study on campaigns to minimise accident risks
47
Developing their
Needs in Expression
As in the proverbial what we sow, we will reap, the
child is a product of his background that needs their
individuality to be mutually respected
DRB-Hicom Berhad
48
49
Our workplace
EMPLOYMENT PRACTICES
Good Conduct at Work
We introduced the Code of Ethics & Business Practices (COEBP) to ensure that employees understand
and practice the expectations of the Company with regard to good conduct. We take appropriate
disciplinary action against any employee for misconduct or inefficiency at work.
We are committed to provide fair and equitable treatment to employees and maintaining a workplace
free from discrimination, harassment and retaliation.
We continue to play our role in developing the economy of Malaysia by providing work opportunities
to local citizens. Only in situations where specialised expertise is required but not available locally,
consideration will be given to relevant foreign experts or specialists for the specified period of
assignment. We are mindful that there is a cost to society and to the nation in employing foreign
workers. However, our hiring policy is fair and non-discriminatory.
Employment Diversity and Fair Pay Policy
There are no disparities in pay between men and women. All employees receive the same pay regardless
of gender. Although there is no minimum wage law in Malaysia, our base salary is competitive and
includes performance-based incentives and rewards. Our salary ratio between men and women is 1:1.
Notice period for Operational Change
Any operational changes occurring that may potentially affect our employees will be communicated
throughout the Group. The Group Human Capital Department is required to send notices to all
employees via email or other electronic modes. These platforms are used by the management to
communicate updates and changes within the Group. We recognise the importance of having a two-way
dialogue between the Management and employees, regardless of major or minor changes.
Women Empowerment
We support the United Nations Millennium Development Goals which include the empowerment of women.
We have taken a historic step in accelerating the Company’s goals on gender equality and the development
of women. We consider gender equality a basic human right and acknowledge that, its achievement has
enormous socio-economic implications. We believe that empowering women fuels thriving economies,
spurring productivity and growth. We are pleased to present the positive results of our actions through the
significant increase in the number of female senior managers in the Company during this reporting period.
DRB-Hicom Berhad
50
•Medical benefits, which include:
o General Outpatient Treatment
oSpecialist Treatment
o Hospitalisation
o Maternity
o Dental Treatment
o Health Screening
Employees Rights
We continue to inspire our female employees to grow as
women entrepreneurs. We contributed RM10,000 to E-Women
which is a one-stop-centre portal for current affairs, business
ideas, events, business trends and other enterprise issues. The
portal also regularly shares inspiring news on women’s success
stories and provides the opportunity for participants to network
with other women’s organisations in the country and overseas.
The E-Women portal was officially launched by YBhg Dato
Maznah Mazlan, Malaysia’s Deputy Minister of Human Capital.
It was supported by the Federation of Women Entrepreneurs
Associations, SME Corp Sdn. Bhd. and the Ministry of Women,
Family and Community Development.
In addition, we appreciate the important role of a woman
particularly during pregnancy. All female employees and wives
of employees are entitled to maternity treatments which
include pre and post-natal expenses for up to five child
deliveries at our panel clinics and hospitals.
Sexual Harassment
We fully support the rights and opportunities of all
employees to employment without discrimination. We
recognise that sexual harassment is an unlawful and
inappropriate behaviour which lowers morale and interferes
with work effectiveness. Sexual harassment in any form
constitutes misconduct.
Sexual harassment means unwanted conduct of sexual
nature, requests for sexual favours, conduct based on sex or
other verbal or physical conduct of a sexual nature directed
against an employee which is offensive to the said employee.
An employee who makes a false or fabricated accusation of
sexual harassment shall be subjected to disciplinary action.
Employees found guilty of either harassment or making
false accusation shall be guilty of an offence attracting
punishment which may include dismissal.
Benefits for Full-time Employees
We believe in providing a fair recognition to our employees
for their continuous hard work. Some of our benefit packages
being offered to our full-time employees include:
•Housing Loan interest rates subsidy up to 4%
•4% additional employer’s contribution to Employees
Provident Fund
•Vehicle Loan
•Mileage/travelling and outstation allowance
•Corporate Club membership
We recognise that respecting the human rights of employees
is our most basic responsibility. We have introduced our
Human Capital Policy which covers human rights issues such
as policies on collective bargaining and discrimination. This
Policy is also incorporated in our procurement practices,
with human rights screening as standard clauses in supplier
and contractor contracts. All our Human Rights practices
are monitored with regular internal audits. Our Human
Rights training programmes address issues of discrimination
and our diversity policy. We conduct Labour Law training
for employees including our subsidiary companies. Training
covers the Children and Young Person Act; Employment Act;
Industrial Relations Act; and Trade Union Act. There have
been no incident of discrimination reported in FYE 2011.
We are pleased to report that there have been no significant
incidents of discrimination or risks to freedom of association
and collective bargaining. There was no incident of violation
of human rights involving the rights of indigenous people at
any time in the Company’s history.
We comply with The Children and Young Persons Employment
Act of Malaysia which prohibits the employment of children
under the age of 14. There have been no reported incidents
or risks of child, forced or compulsory labour.
•Overtime including excess of the normal hours of work
per day, on rest days, public holidays and other gazetted
holidays
•
First time marriage and pilgrimage leave for any religion
• Our workPLACE •
51
Our Workplace
(continued)
Workforce Data for Corporate Office, DRB-HICOM
FYE 2009 FYE 2010 FYE 2011
175
194 245
FYE 2009 FYE 2010 FYE 2011
Male 14 18 23
Female 8
10 9
Total Employees at Corporate Office,
DRB-HICOM
Employees Turnover
Total (%)
22 (13%)
28 (14%)
32 (13%)
FYE 2009 FYE 2010 FYE 2011
<30 4
4
11
30-50 15 21 17
3
3
4
Age Group
>50 Workforce Breakdown by Type
Workforce Breakdown by Contract
Executive
Non-Executive
Non-permanent staff (contract)
Permanent staff
243
174
155
188
174
138
71
39
37
6
1
2009
DRB-Hicom Berhad
2010
52
2011
2009
2010
2
2011
Workforce Breakdown by Gender
Workforce Breakdown by Race
Male
Female
138
88
87
101
93
5%
9%
Malay
Chinese
Indian
86%
9%
5%
107
86%
2009
2010
2011
PROVIDING AN EXCITING WORKPLACE
DRB-HICOM Karting Championship
In strengthening our strong corporate culture, ICAM
held its first DRB-HICOM Karting Championship Series
with the theme ‘Powered by MODENAS, Driven by
ICAM’ in October 2010. The Championship aims to
bring everyone closer as a big corporate family while
enjoying an exciting motorsport experience. There were
13 participating teams including the Royal Malaysian
Police (PDRM) and 85 ICAM students volunteered as
drivers, scrutinisers, paddock and grid marshals, course
marshals, lap scores and timekeepers.
53
Our Workplace
(continued)
Appreciating Heritage through Art
The senior management of DRB-HICOM and CEOs of
its group of companies visited the Islamic Arts Museum
Malaysia (IAMM) which is Southeast Asia’s largest museum
dedicated to Islamic arts on 8 July 2010. The IAMM complex
occupies 30,000 square metres, houses more than 7,000
artifacts and boasts an exceptional library of Islamic arts
and books. Employees enjoyed the artifacts and objects on
display including collections of Qurans, weapons, jewellery
and architecture which represent Islamic civilisations from
the Middle East, Europe and Asia. The museum was built by
the Albukhary Foundation and serves as a centre to promote
Islamic studies and culture.
Secretaries Amazing Race
A total of 52 secretaries from all DRB-HICOM Group of
companies were treated to an “amazing race” which ended
in Kenyir. The programme started with a visit to KLAS where
participants were brought for a tour around the in-flight
catering kitchen and preparation areas to learn the ropes
of in-flight food and beverages operations. The team then
flew to Kenyir for a three-day, two-night retreat where they
were entertained with fun-filled activities, courses on soft
skills and team building programmes. The retreat ended with
an appreciation dinner which was attended by our Group
Managing Director, senior management, general managers
and all committee members.
Staff Welfare Fund
Our Staff Welfare Fund (SWF) was established on 17 April
2007. Money for this fund is sourced from voluntary monthly
contributions from subscribing member employees. SWF is
utilised for the purpose of aiding subscribers (including their
immediate family members) who are in need of financial
assistance to seek medical treatment for critical illness.
It also assists subscribers who face financial constraint
resulting from Acts of God (natural disasters). Critical illness
is defined as a condition which is terminal or life threatening
in nature. As of March 2011, the total contribution to the
fund was RM 707,000.
The monthly contribution by subscribing employees varies
according to their level of appointment as tabulated below:
Designation Senior General Manager and above DRB-Hicom Berhad
54
Contribution (RM)
100.00
General Manager 50.00
Senior Manager/Manager 10.00
Assistant Manager/Executive 5.00
Non-Executive 2.00
Pn Esliza Elias (Property, Asset & Construction
Division) - “At 35-weeks of pregnancy, I was diagnosed
with Hellp Syndrome, a life-threatening complication
which caused pregnancy induced hypertension. After
consulting the doctor, my unique case was referred
to Damansara Specialist Hospital (DSH). I safely
gave birth to a baby girl on 18 November 2009 via
c-section. My hypertension condition had deteriorated
following my post-delivery condition that I was placed
under an induced comma and warded in ICU. Upon
regaining consciousness, I was billed with a huge sum
of RM113,517.85 (HELLP syndrome complications)
+ RM8,033.00 (c-section delivery). I was fortunate to
have DRB-HICOM to subsidise the cost of my HELLP
syndrome complication and the remaining from the
generous contribution of SWF.”
Rewarding Our Employees’ Children
A total of RM61,150 was given to 149 children of DRB-HICOM
employees who excelled in the national school examinations.
This includes 82 Penilaian Menengah Rendah (PMR) students,
64 Sijil Pelajaran Malaysia (SPM) students and 3 Sijil Tinggi
Pelajaran Malaysia (STPM) students who obtained a minimum
of 6As for PMR, 5As for SPM and 2As for STPM. This is part
of delivering our commitment in giving back to employees
and their families. We believe this approach will help to boost
education excellence in the country and encourage the children
of our employees to continue excelling in their studies.
CONTINUOUS LEARNING AND DEVELOPMENT
In FYE 2011, our training budget was RM1.867 million and the average total training hours per
employee was 222.31; mainly due to nine weeks of basic police tranning for the Auxiliary
Police personnel recruited during the financial year.
on performance is represented on the scale from 1.00 to 5.00. The Human Capital division
reviews and finalises the overall performance ratings with respective heads of departments
to ensure fair and equitable ratings. This PMS is linked to other human resource matters
including but not limited to:
• Increment
e-Training/e-Learning
•Bonus
In 2010, we finalised the new concept of
e-Training/e-Learning which is going to
be introduced in the next financial year.
The concept of e-Learning is introduced
to compliment traditional classroom
instructor lead training programmes. We
hope that knowledge gained from attending
classroom training can be retained and
enhanced through this approach.
•Promotion
•Succession Planning
•Career Advancement
• Training and Development
Organisational Chart for Performance Review Committee
Chairman
Financial Training for Non-Financial Managers
Finance for Non-Finance Managers is designed to provide employees with an understanding
of financial management principles and equip employees with the practical skills to develop
informed and effective financial plans. Employees were exposed to critical skills in analysing
financial statements and understanding corporate finance, key financial indicators, strategic
management and the financial planning process in more depth.
This workshop enables employees to contribute to discussions about the financial
performance of the organisation or business unit, giving the employees the confidence
to make decisions based on financial data. In FYE 2011, 16 employees were trained under
this programme.
Performance Management System (PMS)
We continue to implement a fair and effective performance review process where both
employee and his/her immediate superior are responsible for completing the appraisal
process. The PMS system is being practiced by all employees (100%). This provides a process
of shared understanding between the Management and employees on the Company’s
business goals and directions by way of an enabling tool for an individual and organisation
to optimise performance. The objectives/targets cascading process from the top ensures
that all employees are aligned towards common goals.
We understand the need for an on-going business system that supports its strategic
direction and links individual and team performance with business goals and objectives.
PMS is core to all aspects of rewards, career development, human capital planning and
organisational growth. All employees are required to complete PMS forms at the beginning
of each financial year. An interim review is conducted between appraiser/appraisee during
mid-year, followed by a final review at the end of each financial year. The agreed rating
Human Capital Division
Representative
Group MD Office
Representative
Finance & Treasury
Representative
The performance of the Group Managing Director, Group Chief Operating Officer, Heads
of Divisions at Corporate Office, and CEOs and CFOs of Group of companies is measured
through the Key Performance Indicators (KPI) system. The reward is directly tied to KPI
achievement level through the execution of the KPI-Performance Contract which specifies
the bonus entitlements for achieving certain level of performance. The minimum threshold to
qualify for bonus is at 90% achievement level. Achievements above 100% level, on the other
hand, qualify for discretionary bonus consideration, over and above performance bonus.
LABOUR RELATIONS AND MANAGEMENT
Collective Agreement
We adopted the collective bargaining system to ensure industrial peace and harmony in the
Group of companies by providing a mutually beneficial economic and social relationship
between the employers and trade unions in matters affecting terms and conditions of
service of the employees. The resulting collective agreement helps to clarify the rights
and responsibilities of the company and its employees to achieve greater success in the
performance and stability of the company. Currently, 5,290 employees are members of
in-house unions whilst 3,613 are members of recognised national unions at their worksites.
55
Our Workplace
(continued)
List of Registered In-House Unions In DRB-HICOM Group Companies as at March 2011
Union 1.Kesatuan
2.Kesatuan
3.Kesatuan
4.Kesatuan
5.Kesatuan
6.Kesatuan
7.Kesatuan
8.Kesatuan
9.Kesatuan
10.Kesatuan
11.Kesatuan
12.Kesatuan
Company MEMBERS
Pekerja-Pekerja Alam Flora Sdn. Bhd.
Alam Flora Sdn. Bhd.
Penyelia-Penyelia Alam Flora Sdn. Bhd.
Pekerja-Pekerja Deftech
DRB-HICOM Defence Technologies Sdn. Bhd.
Pekerja-Pekerja EON Semenanjung
Jurujual EON Semenanjung
Edaran Otomobil Nasional Berhad (EON)
Pekerja-Pekerja EON Sabah
Pekerja-Pekerja EON Sarawak
Pekerja-Pekerja HICOMHICOM-HONDA Manufacturing (M) Sdn. Bhd.
Pekerja-Pekerja Honda Malaysia Sdn. Bhd.Honda Malaysia Sdn. Bhd.
Pekerja-Pekerja MODENASMotosikal & Enjin Nasional Sdn. Bhd. (MODENAS)
Pekerja-Pekerja PHN Industry Sdn. Bhd.PHN Industry Sdn. Bhd.
Pegawai-Pegawai Bank Muamalat Malaysia BerhadBank Muamalat Malaysia Berhad
1816
185
95
497
191
44
62
337
750
485
364
525
List of Registered National Unions In DRB-HICOM Group Companies as at March 2011
Union COMPANY MEMBERS
1.National Union of Transport, Equipment and
HICOM Automotive Manufacturing (M) Sdn. Bhd.
Allied Industries Workers (NUTEAIW)
Isuzu HICOM (M) Sdn. Bhd.
HICOM-Yamaha Manufacturing (M) Sdn. Bhd.
Oriental Summit Industries Sdn. Bhd.
2.Club Employee Union Peninsular Malaysia (CEUPM)Glenmarie Golf & Country Club
3. Metal Industries Employees Union (MIEU)
HICOM Diecastings Sdn. Bhd.
4.National Union of Petroleum & Chemical Industry WorkersHICOM-Teck See Manufacturing (M) Sdn. Bhd.
5. Non-Metallic Product Manufacturing Employees Union (NMPMEU)
Niro Ceramics Sdn. Bhd.
6.National Union of Hotel, Bar & Restaurant Workers,Holiday Inn Kuala Lumpur, Glenmarie
Peninsular Malaysia (NUHBRW)Rebak Island Resort
7.National Union of Commercial Workers (NUCW)Scott & English (M) Sdn. Bhd.
Uni.Asia General Insurance
Puspakom Sdn. Bhd.
8.National Union of Bank Employees (NUBE)
9.Sabah Banking Employees Union (SBEU)Bank Muamalat Malaysia Berhad
10.Sarawak Banking Employees Union (SBEU)
11.Kesatuan Pegawai-Pegawai Bank Sarawak
DRB-Hicom Berhad
56
675
320
220
210
85
310
340
76
203
170
232
910
525
15
25
12
Employees Feedback Survey
We have conducted the annual Employee Feedback Survey (EFS) in the past four years to create a communication channel which allows employees to provide feedback to the management to
assess the level of engagement of employees and to generate actions to address issues raised by employees. The response rate for the recent EFS was 62%. Overall, 156 out of 161 respondents
(96.9%) claim they are proud to work with us.
Employees’ Perception on
DRB-HICOM
100
80
81
75
65
60
56
51
42
40
37
36
32
26
20
15
Others
Very
challenging
Has many office
conflicts
Profitable
Concern for
community
Very strict
approach
Facing many
uncertainties
Bureaucracy
Emphasis on
good values
Good place
to work in
Good image
0
Good business
prospect
No. of Votes
70
57
Our Workplace
(continued)
A summary extracted from the results of the survey is as follows:
Survey Topic Results Summary
Employer of Choice87% of respondents are proud to work with
us. This statement is supported by 73% of
the respondents who were not considering
seeking employment outside of the Company.
Employees feel secure to work with us
as they believe that the Company will be
successful in future and our products and
services have good reputation with its
products and services.
Employer-Employee RelationshipThe relationship between supervisors, senior
management and employees is positive.
Responses show that supervisors are willing to
dedicate their time to guide new employees
and the continuous support from the senior
management is strongly appreciated.
Vision, Mission and ValuesMore than 80% of employees including Senior
Management completely understand the
Company’s Vision, Mission and Values and
they hold it to their heart.
Supervisor and Senior ManagementThe majority of employees agreed that their
supervisors possess good leadership quality
and competencies in assisting them to
perform their job.
Job Interest and WorkloadSurvey results show that the management
should encourage work life balance to create
healthier environment in order to avoid work
stress, mental disruption or other similar
diseases which result in higher medical costs.
Employee Suggestion Scheme (ESS)
We continue to practice the Employee Suggestion Scheme in Group companies to
encourage our employees to suggest ideas which will improve our companies. We benefit
from this scheme by receiving innovative, creative and effective improvement ideas. The
ESS Programme is coordinated by a team who report to the ESS Committee. We encourage
inter-departments to share their opinions as abnormalities which may be more obvious
DRB-Hicom Berhad
58
from the view of external parties. We believe that the ESS portrays effective two-way
communication which has successfully helped boost employees’ morale. In FYE 2011, close
to 60% of suggestions received were successfully implemented.
HEALTH AND SAFETY AT WORK
Our business is diversified and includes automotive manufacturing and distribution; defence;
financial services; property and construction; and service industries. We recognise the
fundamental responsibility and are committed to ensuring that all employees work in a safe
and healthy environment. Our Safety Health and Environmental (SHE) policy explains the
following principles:
•All occupational injuries and illnesses are preventable
•All operating risks can be eliminated or adequately safeguarded
•Superior SHE performance is crucial for improving efficiency, quality and competitive advantage
•All operations are conducted in compliance with applicable laws, regulations and standards
•Management at all levels is responsible and accountable for SHE performance within
their areas of responsibility
•All employees are trained in and are expected to follow the established SHE practices
and contribute to their enhancement
•Working safely is a condition of employment
This policy is communicated to all employees and is made available to any interested
parties who are concerned with or affected by the SHE performance of the operating unit.
Subsidiary companies which have obtained the OHSAS 18001 certifications are:
•Monitoring & assessment by Hygiene Technician (Electroplating)
•HICOM Diecastings Sdn. Bhd.
SHE topics covered in Collective Agreement
•Neighbourhood Watch Programme (NWP) :
•HICOM-HONDA Manufacturing Malaysia Sdn. Bhd.
•Chemical Safety and Management
•HICOM-Teck See Manufacturing Malaysia Sdn. Bhd.
•Personal Protective Equipment for Safety and Health
•HICOM-YAMAHA Manufacturing Malaysia Sdn. Bhd.
• Effective First Aid and CPR Techniques
•Oriental Summit Industries Sdn. Bhd.
• Environmental Management System ISO14001:2004 EMS Awareness Training
•PHN Industry Sdn. Bhd.
•Occupational Health & Safety Management System OHSAS 18001:2007 Awareness Training
SHE Acts and Regulations applicable to DRB-HICOM Group of Companies have been made
under the following:
Total no. of occupational accidents in DRB-HICOM Group Companies in FYE2011
• Factories and Machinery Act 1967 and its Regulations
1200
•Occupational Safety and Health Act 1994 and its Regulations
• Environmental Quality Act 1974 and its Regulations
1000
•Uniform Building By-Laws 1984
• Electrical Supply Act 1990
•Atomic Energy Licensing Act 1984 and its Regulations
•Gas Supply Act 1993 and its Regulations
Total cases
•Poison Act 1952 and its Regulations
600
400
We established a SHE Steering Committee and senior management personnel have been
appointed to the Committee to provide expertise, and 50% of the Committee is represented
by employees. The principal responsibility of this Committee is to oversee the development
of policies and best practices relating to health and safety issues in order to ensure
compliance with applicable laws.
We work closely with other organisations including BOMBA, Department of Environment,
Department of Occupational Safety and Health and Agensi Anti Dadah Kebangsaan (AADK)
to achieve our target of zero accidents.
800
200
0
2008/2009
2009/2010
2010/2011
2008/2009 2009/2010 2010/2011
First aid cases 24 21 32
Various programmes have been introduced to achieve SHE objectives which is zero accidents
such as:
Minor cases 48 56 52
•Fire Protection And Suppression System (FPASS) Audit at highly flammable process
such as Painting Line
Major cases 71 50 61
• ISO14001 & OHSAS18001 System Integration
Total 143 127 145
Lost time injuries 1024 882 774
•BOMBA Training (In-House)
• Fire Drill & Building Evacuation Activities
59
Our Workplace
(continued)
Total no. of occupational accidents in DRB-HICOM Group Companies in FYE 2011
No. of cases
20
15
10
5
0
April
May
June
July
AprilMay
First aid
August
Jun
September
October
November
December
Month
JulyAugust
SeptemberOctoberNovember
January
February
December
January
March
FebruaryMarch
4
3
3
2
3
1
6
0
3
2
2
3
Minor
5
4
2
6
2
3
5
6
3
3
10
3
Major
4
1
2
7
5
4
8
5
3
7
3
12
Awareness Training for Serious Diseases
Although all employees receive medical insurance and benefits, the Company is committed to take one step ahead in fighting the spread of serious diseases. The case of Influenza A (H1N1)
that attacked our country has infected a serious number of citizens. In responding to this issue, DRB-HICOM conducted a comprehensive education programme, providing all employees with
guidelines on prevention. The Company also displayed awareness posters at strategic points of the building, including all subsidiaries.
DRB-Hicom Berhad
60
Total no. of occupational accidents in DRB-HICOM Group Companies in FYE 2011
No. of cases
35
30
25
20
15
10
5
0
Oriental
Summit
Industries
Alam
Flora
HICOM
Automotive
MODENAS
PHN
Industries
HICOMHONDA
HICOM
Diecastings
Isuzu
HICOM
PUSPAKOM
HICOMYAMAHA
KL Airport
Services
Scott &
English
HICOMTeck See
Defence
Services
Group Companies
Oriental
Summit
Industries
Alam
Flora
First aid
7
3
2
1
5
6
7
0
0
1
0
Minor
8
14
5
3
2
4
3
7
2
2
Major
18
14
5
7
4
1
0
2
3
1
HICOM
PHN
HICOM-
HICOM
Isuzu
HICOM- KL Airport Scott &
PUPAKOM Yamaha Sevices
Automotive MODENAS
Industries HONDA Diecastings HICOM
English
HICOM-
Teck See
Defence
Services
0
0
0
0
1
0
1
3
2
1
0
Safety Monitoring
All serious cases are reported to our Corporate Office within 24 hours. The local Department of Occupational Safety and Health is then notified in accordance to the Occupational Safety
and Health Regulations 2004. The investigation procedure identifies the type of event, purpose of investigation, the root cause of non-conformance, arrangement of witness interview and any
other practical issues.
Planned audits at regular intervals are scheduled and performed to ensure conformance and identify opportunities for continual improvement of the SHE system. The audit is conducted by
independent personnel and results of the audit are provided to all relevant parties immediately for corrective actions. This result is also reported to the SHE Department of DRB-HICOM.
61
Defining their
Role Tomorrow
By giving them the opportunity to understand from
the beginning, the importance of our role tomorrow,
makes them understand theirs
DRB-Hicom Berhad
62
• GRI Content Idex •
63
GRI Content Index
Section
:AR – Annual Report 2010; FC – Front Cover
Application :C – Core; A – Additional
Status
:
Fully Reported; Partially Reported;  Not Reported
G3 Content Index
Standard Disclosures Part: Profile Disclosures
1. Strategy and Analysis
Profile
Disclosure
Description
Status
CrossReference
1.1
Statement from the most
senior decision-maker of the
organisation
P8-9
1.2
Description of key impacts, risks,
and opportunities
P8-9, P10-11
2. Organisational Profile
2.1
Name of the organisation
FC
2.2
Primary brands, products,
and/or services
List of primary products and brands are disclosed
in the front section of the AR 2011 : P9
2.3
Operational structure of the
organisation
P6-7
2.4
Location of organisation’s
headquarters
P4
2.5
Number of countries where the
organisation operates
The Group only operates in Malaysia as shown in
the AR 2011 : P26-27
2.6
Nature of ownership and legal
form
DRB-HICOM's ownership structure including detailed
information of the organisation is disclosed in the
AR 2011 : P26-27, P285-287
2.7
Markets served
Not more than 10% of revenues and assets are
contributed from outside Malaysia
DRB-Hicom Berhad
64
Reason for omission &
Explanation
G3 Content Index (continued)
Standard Disclosures Part: Profile Disclosures (continued)
2. Organisational Profile (continued)
Profile
Disclosure
Description
Status
CrossReference
2.8
Scale of the reporting
organisation
The financial section of the AR 2011 : P148-283
discloses detailed revenue, capital and net sales and
all other relevant scale/financial measurement in
DRB-HICOM
2.9
Significant changes during the
reporting period
P8-9
2.10
Awards received in the reporting
period
List of awards and its photos are disclosed in the
front section of the AR 2011 : P20
Explanation
3. Report Parameters
3.1
Reporting period
P4
3.2
Date of most recent previous
report
P4
3.3
Reporting cycle
P4
3.4
Contact point for questions
regarding the report or its
contents
P4
3.5
Process for defining report
content
P4, P10-11
3.6
Boundary of the report
P4, P6-7
3.7
Specific limitations on the scope
or boundary of the report
P4
3.8
Basis for reporting on joint
ventures, subsidiaries, etc
P4
3.9
Data measurement techniques
and the bases of calculations
P4
3.10
Explanation of the effect of any
re-statements of information
P4
• GRI Content Index •
65
GRI Content Index
(continued)
3. Report Parameters (continued)
Profile
Disclosure
Description
Status
CrossReference
3.11
Significant changes from previous
reporting period
P4, P8-9
3.12
Table identifying the location of
the Standard Disclosures
P64-75
3.13
Policy and current practice
with regard to seeking external
assurance for the report
P76-78
4. Governance, Commitments, and Engagement
4.1
Governance structure of the
organisation
P12-13
4.2
Indicate whether the Chair of
the highest governance body is
also an executive officer
The Chairman of the Board of Directors is not an
executive officer
4.3
Independent and/or
non-executive members of
the Board
P12. Details of indepent/non-independent members
are listed in the AR 2011 with each director's
background : P60-66
4.4
Mechanisms for shareholders
and employees to provide
recommendations or direction to
the highest governance body
P12-13
4.5
Linkage between compensation
and the organisation’s
performance
Details on the compensation for senior managers
are explained under the section 'remuneration' in
AR 2011 : P67-71
4.6
Processes in place to ensure
conflicts of interest are avoided
P13
4.7
Qualifications and expertise of
the Board
AR 2011 : P39-49
4.8
Internally developed statements
of mission or values, codes of
conduct, and principles
P2
DRB-Hicom Berhad
66
Explanation
4. Governance, Commitments, and Engagement (continued)
Profile
Disclosure
Description
Status
CrossReference
4.9
Identification and management
of economic, environmental, and
social performance, conduct,
and principles
P10-11
4.10
Processes for evaluating the
highest governance body’s own
performance
P12-13
4.11
Explanation of whether and how
the precautionary approach or
principle is addressed by the
organisation
P8-9, P10-11
4.12
Externally developed economic,
environmental, and social
charters, principles
P4-5
4.13
Memberships in associations
The Company has no material membership
of this type
4.14
List of stakeholder groups
engaged by the organisation
P10-11
4.15
Basis for identification and
selection of stakeholders with
whom to engage
P10-11
4.16
Approaches to stakeholder
engagement
P10-11
4.17
Key topics and concerns that
have been raised through
stakeholder engagement, and
how the organisation has
responded to those key topics
P10-11
Explanation
67
GRI Content Index
(continued)
STANDARD DISCLOSURES: Performance Indicators
Economic
Performance
Indicator
Description
Status
Crossreference
Explanation
To be
reported in
We are not able to report on this indicator as
we are still in the process of improving our data
collection process
2013
Economic performance
EC1
Direct economic value generated and
distributed
AR 2011 : P34-35, P154-157
EC2
Financial implications and other risks
and opportunities for the organisation's
activities due to climate change
P31
EC3
Coverage of the organisation's defined
benefit plan obligations
P51
EC4
Significant financial assistance received
from government
AR 2011 : Financial Statements
EC5
Standard entry level wage vs. local
minimum wage
P50
EC6
Policy, practices, and proportion of
spending on locally-based suppliers
P44
EC7
Procedures for local hiring
P44
EC8
Development and impacts of infrastructure
investments and services provided
primarily for public benefit
P16-23
EC9
Understanding and describing significant
indirect economic impacts
P20-23
EN1
Materials used by weight or volume
P26
EN2
Percentage of materials used that are
recycled input materials
P26
Market presence
Indirect economic impacts
Materials
DRB-Hicom Berhad
68
STANDARD DISCLOSURES: Performance Indicators (continued)
Economic (continued)
Performance
Indicator
Crossreference
Explanation
To be
reported in
Description
Status
Direct energy consumption by primary
energy source

collection process
Indirect energy consumption by primary
source

collection process
Energy
EN3
EN4
EN5
Energy saved due to conservation and
efficiency improvements
P29-30
EN6
Initiatives to provide energy-efficient or
renewable energy
P29-30
EN7
Initiatives to reduce indirect energy
consumption and reductions achieved
P29-30
EN8
Total water withdrawal by source
P30-32
collection process
2013
EN9
Significant impact of withdrawal of water
P30-32
collection process
2013
EN10
Percentage and total volume of water
recycled and reused.
collection process
2013
collection process
2013
Water

Biodiversity
EN11
Location and size of land owned, leased,
managed in, or adjacent to, protected
areas
P33-35
EN12
Description of significant impacts of
activities, products, and services on
biodiversity in protected areas
P33-35
69
GRI Content Index
(continued)
Performance
Indicator
Description
Crossreference
Explanation
To be
reported in
collection process
2013
collection process
2013

collection process
2013

collection process
2013
collection process
2013
Status
Biodiversity (continued)
EN13
Habitats protected or restored
P33-35
EN14
Strategies, current actions, and future
plans for managing impacts on biodiversity
P33-35
EN15
Number of IUCN Red List species and
national conservation list species with
habitats in areas affected by operations
P33-35
Emissions, effluents and waste
EN16
Total direct and indirect greenhouse gas
emissions by weight
P30
EN17
Other relevant indirect greenhouse gas
emissions by weight
P30
EN18
Initiatives to reduce greenhouse gas
emissions and reductions achieved
P30-31
EN19
Emissions of ozone-depleting substances
by weight
EN20
Nitrogen Oxides (NOx), Sulphur Oxides
(SOx), and other significant air emissions
by type and weight
EN21
Total water discharge by quality and
destination.
EN22
Total weight of waste by type and
disposal method
EN23
Total number and volume of significant
spills
DRB-Hicom Berhad
70
P30-33

2013
Performance
Indicator
Description
Status
Crossreference
Explanation
To be
reported in
Emissions, effluents and waste (continued)
EN24
EN25
Weight of transported, imported,
exported, or treated waste deemed
hazardous
Identity, size, protected status, and
biodiversity value of water bodies and
related habitats significantly affected by
the reporting organisation's discharges of
water and runoff
2013

P33
Products and services
EN26
Initiatives to mitigate environmental
impacts of products and services, and
extent of impact mitigation.
P32-37
EN27
Percentage of products sold and their
packaging materials that are reclaimed by
category
P27
Monetary value of significant fines and
total number of non-monetary sanctions
for non-compliance with environmental
laws and regulations.
P37
Significant environmental impacts of
transporting products and other goods
and materials used for the organisation’s
operations, and transporting members of
the workforce.
P32
Total environmental protection
expenditures and investments by type.
P37
Compliance
EN28
Transport
EN29
Overall
EN30
71
GRI Content Index
(continued)
Social: Labour Practices and Decent Work
Performance
Indicator
Description
Status
Crossreference
Explanation
To be
reported in
collection process
2013
collection process
2013
Employment
LA1
Total workforce by employment type,
employment contract, and region
P52-53
LA2
Total number and rate of employee
turnover by age group, gender, and region
P52-53
LA3
Benefits provided to full-time employees
that are not provided to temporary or
part-time employees, by major operations
P51-55
Labour/management relations
LA4
Percentage of employees covered by
collective bargaining agreements
P55-56
LA5
Minimum notice period(s) regarding
significant operational changes, including
whether it is specified in collective
agreements
P50
Occupational health and safety
LA6
Percentage of total workforce represented
in formal joint management-worker health
and safety committees that help monitor
and advise on occupational health and
safety programmes
P59
LA7
Rates of injury, occupational diseases, lost
days, and absenteeism, and number of
work-related fatalities by region
P59-60
LA8
Education, training, counselling, prevention,
and risk-control programmes in place to
assist workforce members, their families, or
community members regarding serious diseases
P60
LA9
Health and safety topics covered in formal
agreements with trade unions.
P59
DRB-Hicom Berhad
72
Social: Labour Practices and Decent Work
Performance
Indicator
Description
Status
Crossreference
Explanation
To be
reported in
collection process
2013
Training and education
LA10
Average hours of training per year per
employee by employee category
P55
LA11
Programmes for skills management
and lifelong learning that support the
continued employability of employees and
assist them in managing career endings
P55
LA12
Percentage of employees receiving regular
performance and career development reviews
P55
Diversity and equal opportunity
LA13
Composition of governance bodies and
breakdown of employees per category
according to gender, age group,
minority group membership, and other
indicators of diversity.
P52-53
LA14
Ratio of basic salary of men to women by
employee category.
P50
Social: Human Rights
Diversity and equal opportunity
HR1
Percentage and total number of significant
investment agreements that include human
rights clauses or that have undergone
human rights screening
P50-51
HR2
Percentage of significant suppliers and
contractors that have undergone screening
on human rights and actions taken.
P50-51
HR3
Total hours of employee training on
policies and procedures concerning
aspects of human rights that are relevant
to operations, including the percentage of
employees trained.
P50-51
73
GRI Content Index
(continued)
Social: Human Rights (continued)
Performance
Indicator
Description
Status
Crossreference
Non-discrimination
HR4
Total number of incidents of
discrimination and actions taken.
P51
Freedom of association and collective bargaining
HR5
Operations identified in which the right
to exercise freedom of association
and collective bargaining may be at
significant risk, and actions taken to
support these rights.
P51
Operations identified as having significant
risk for incidents of child labour, and
measures taken to contribute to the
elimination of child labour.
P51
Child labour
HR6
Forced and compulsory labour
HR7
Operations identified as having significant
risk for incidents of forced or compulsory
labour, and measures to contribute to the
elimination of forced or compulsory labour.
P51
Percentage of security personnel trained
in the organisation’s policies or procedures
concerning aspects of human rights that
are relevant to operations.
P51
Total number of incidents of violations
involving rights of indigenous people and
actions taken.
P51
Security practices
HR8
Indigenous rights
HR9
DRB-Hicom Berhad
74
Explanation
To be
reported in
Social: Society
Performance
Indicator
Description
Status
Crossreference
Explanation
To be
reported in
Community
SO1
Nature, scope, and effectiveness of any
programmes and practices that assess and
manage the impacts of operations on
communities, including entering, operating,
and exiting
P16-23
SO2
Percentage and total number of business
units analysed for risks related to
corruption.
P13
SO3
Percentage of employees trained in
organisation's anti-corruption policies and
procedures
P13
SO4
Actions taken in response to incidents of
corruption
P13
SO5
Public policy positions and participation in
public policy development and lobbying
P13, P16-23
SO6
Total value of financial and in-kind
contributions to political parties, politicians,
and related institutions by country
P13
Corruption
Public policy
Anti-competitive behaviour
SO7
Total number of legal actions for anticompetitive behavior, anti-trust, and
monopoly practices and their outcomes.
P13
Monetary value of significant fines and
total number of non-monetary sanctions
for non-compliance with laws and
regulations.
P13
Compliance
SO8
75
GRI Content Index
(continued)
Social: Product Responsibility
Performance
Indicator
Description
Status
Crossreference
Customer health and safety
PR1
Life cycle stages in which health and
safety impacts of products and services
are assessed for improvement, and
percentage of significant products and
services categories subject to such
procedures.
P36-37
PR2
Total number of incidents of noncompliance with regulations and voluntary
codes concerning health and safety
impacts of products and services during
their life cycle, by type of outcomes.
PP37, P47
Product and service labelling
PR3
Type of product and service information
required by procedures, and percentage of
significant products and services subject
to such information requirements.
P29, P44, P47
PR4
Total number of incidents of noncompliance with regulations and voluntary
codes concerning product and service
information and labelling, by type of
outcomes.
P47
PR5
Practices related to customer satisfaction,
including results of surveys measuring
customer satisfaction.
P43-46
DRB-Hicom Berhad
76
Explanation
To be
reported in
Social: Product Responsibility (continued)
Performance
Indicator
Description
Status
Crossreference
Explanation
To be
reported in
Marketing communications
PR6
Programmes for adherence to laws,
standards, and voluntary codes related
to marketing communications, including
advertising, promotion, and sponsorship.
P46-47
PR7
Total number of incidents of noncompliance with regulations and
voluntary codes concerning marketing
communications, including advertising,
promotion, and sponsorship by type of
outcomes.
P46
Total number of substantiated complaints
regarding breaches of customer privacy
and losses of customer data
P47
Monetary value of significant fines for
non-compliance with laws and regulations
concerning the provision and use of
products and services.
P47
Customer privacy
PR8
Compliance
PR9
77
Assurance Statement
Assurance Statement
DRB-HICOM BERHAD
(Company No: 203430-W)
Introduction
Exclusions from the scope of our work
OWW Consulting Sdn. Bhd. (OWW) is a specialist in Corporate Social Responsibility
(CSR) and Socially Responsible Investment (SRI). We were engaged by DRB-HICOM Berhad
(“DRB-HICOM”) to provide assurance services for various aspects of their Sustainability
Report 2011 (the “Report”).
Excluded from the scope of our work is information relating to:
The Report and its contents are the exclusive responsibility of DRB-HICOM. Our responsibility
is to perform limited assurance procedures over the Report and underlying processes within
the scope set out below:
•Statements of commitment or intention to undertake action in the future
•Statements of opinion, belief or aspiration
•Information in internal or external documents referred to in the Report, except insofar
as we have viewed their existence as part of the assurance process
• Economic
Basis of our opinion
•Social Performance: Labour Practices & Decent Work
In conducting this engagement we have considered the principles of balance, comparability,
accuracy, timeliness, clarity, relevance and reliability as in the Global Reporting Initiative
(GRI) G3 Guidelines.
•Social Performance: Human Rights
•Social Performance: Society
•Social Performance: Product Responsibility
• Environmental
In each case verification was conducted through low-level assurance via information
provided by DRB-HICOM.
It is agreed that DRB-HICOM expects to be able to provide a response to each of the
GRI-G3 Guideline Protocols and to meet an A+ or Advanced Application Level which requires
reporting on each of the core GRI-G3 indicators, even if the report is an omission statement.
DRB-Hicom Berhad
78
We have also taken into account the principles of independence of assurance in the GRIG3 Guidelines and have been mindful of the AA1000AS and the the International Standard
on Assurance Engagements (ISAE 3000) although we have not been asked to apply these
standards directly.
We have conducted this engagement to provide a reasonable rather than an absolute level
of assurance and we believe that the work conducted and described herein provides a
reasonable basis for our conclusions.
Our review included the following activities:
•Interviews and one-to-one meetings with relevant personnel at corporate and subsidiaries
level responsible for the information in the Report
•Interviews and one-to-one meetings with relevant external stakeholders related to
DRB-HICOM activities, including Heads of Department
•Documentary evidence was reviewed from communications meant for both internal
and external circulation but coming from within DRB-HICOM. This included manually
generated internal reports, performance data, internal policy documents, established
codes of conduct, corporate presentations, reports on events and information on safety
procedures at DRB-HICOM
•Observed related facilities and areas including notice boards, management offices, traffic
monitoring centre
•Challenges and questions related to the CSR related statements and claims made in
the Report
During our investigation we discussed the necessary changes in the Report with DRB-HICOM
personnel and determined that these changes have been adequately incorporated into the
final version. We relied on representations made to us during the course of our assurance
work by DRB-HICOM personnel.
Information in the Report that is directly sourced from DRB-HICOM Annual Report is
considered to be reliable based on the audit statement of the Independent Chartered
Accountant and Registered Auditor to these statements.
We provided advice on which data is necessary and how this data could be compiled
to comply with the GRI-G3 Guidelines. All data and corrections were provided directly by
DRB-HICOM staff. In the same reporting period we have not provided any other advisory
work for DRB-HICOM which may have been used in this report.
Conclusions
1.In our opinion, the Report meets the content and quality requirements of the Global
Reporting Initiative Sustainability Reporting Guidelines (Version GRI-G3);
2.The Report provides a fair representation of DRB-HICOM’s social accounting and
reporting activity for the period covered by the Report;
3.The information in the Report is reliable and free from significant bias;
4.DRB-HICOM has processes in place for identifying, understanding and managing its
environmental and social responsibilities and for capturing, understanding and responding
to the views of its main stakeholders;
5.In our opinion the report contains new information in each domain which we believe
is a fair and balanced reflection of the efforts of DRB-HICOM to develop and improve
their approach to sustainability and reporting.
• Assurance Statement •
79
Assurance Statement
(continued)
Recommendations:
In the context of future CSR Reporting at DRB-HICOM, we recommend that the Company:
29 June 2011
OWW Consulting Sdn. Bhd.
•Continues to improve the use of performance indicators
•Continues to improve the scope and quality of measurement and reporting of
environmental data
•Introduces clearer links between CSR issues and financial performance
•Extends the use of impact measures such as Social Return on Investment (SROI) and
Environmental Return on Investment (EROI)
•Implements GHG reduction programmes to identify and reduce overall GHG equivalent
emissions
•Introduces processes for the ongoing monitoring, measurement and reporting of
DRB-HICOM against material indicators and targets to demonstrate ongoing commitment
to the reporting process and stakeholder interests
Considerations and limitations
In relation to our assurance work and conclusions, the following considerations and
limitations should be noted:
•Certain information is excluded from the scope of our assurance work, as stated above
and in the Report itself
•Due to its nature and the methods used for determining, calculating or estimating
such data, environmental and social data are subject to inherent limitations. Therefore
this assurance statement should not be relied upon to detect all errors, omissions or
misstatements in the Report
•The assurance statement cannot guarantee the quality of social accounting and reporting
processes used by DRB-HICOM
DRB-Hicom Berhad
80
Statement by OWW Consulting Sdn. Bhd. on Independence,
Objectivity and Capability
OWW Consulting Sdn. Bhd. (OWW) is a specialist in Corporate Social Responsibility
(CSR) and Socially Responsible Investment (SRI) with established experience in providing
independent CSR advisory, reporting and assurance services.
OWW Consulting has implemented a Code of Conduct in Assurance and Assessment and a
Code of Ethics across our company. Our Code requires that all of our employees maintain
high ethical standards and makes explicit reference to the independence and objectivity
of our assurance and assessment engagements which we believe conform to emerging
international best practice.
Our assurance team conducting the work for this report has experience in conducting
engagements of this type for sustainability reports, systems and processes. They are familiar
with current guidelines and best practice and update their experience on a regular basis.

Report 2011 Sustainability

Transcription

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