ENVIRONMENTAL STATEMENT

ENVIRONMENTAL STATEMENT

Environmental Management

Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn. Bhd. (“KPKKT”), the Group’s timber management subsidiary, adopts the Selective Management System (“SMS”) to manage the timber concession area in its role as logs supplier for the consumption of the Group. KPKKT is also responsible to develop and manage its concession in a sustainable manner in accordance with Sustainable Forest Management (“SFM”) to ensure that the environment of the concession is well preserved.

In this context, KPKKT as a Forest Management Unit (“FMU”) subscribes fully to the Malaysian Criteria and Indicators of which the above SMS was incorporated. KPKKT also cooperates with the State Forestry Department to ensure that best management practices in logging are being observed and maintained to meet the requirements of the Malaysian Timber Certification Scheme (“MTCS”).

KPKKT has been awarded the FSCTM certification endorsement since 21 April 2008, which was applicable for five years, by Scientific Certification Systems (“SCS”), a leader and pioneer in third-party auditing and certification of forest management operations around the world, using the SCS-FSC Interim Standard for Forest Management Certification in Malaysia Version 5.0 2014 for well-managed forests. This certification verifies that KPKKT’s tropical forest of 108,900 hectares in Dungun Timber Complex (“DTC”) are managed according to the rigorous international standards of the FSCTM under a selective cutting approach that maintains continuous forest cover and species diversity.

The certification has been recertified for another five years until 20 October 2018. KPKKT’s DTC concession area is the largest forest in Peninsular Malaysia to have received FSCTM certification, and only the second natural forest in Malaysia to achieve this distinction.

KPKKT is committed to adopt the National and International Convention on Biological Diversity in order to sustain the richness of flora and fauna in the concession area.

In addition another subsidiary, Pesama Timber Corporation Sdn Bhd (“Pesama”), has successfully obtained the FSCTM endorsed certification for its 20,243 hectares Cherul Forest Concession (“CFC”) on 10 December 2012 as certified by SCS Global Services. The certification is valid for five years until 9 December 2017.

With the FSCTM certification, the Group would be able to access to an increasing number of markets and customers that demand environmental friendly certified products domestically and abroad.

Whilst the environmental management system of a subsidiary, Golden Pharos Glass Sdn Bhd (“GP Glass”), for the manufacture of tempered, double glazed, laminated and ceramic printed safety glass’s has been assessed and registered against the provisions of ISO 14001: 2004 International Standard effective 23 February 2012, and valid until recertification on 10 July 2018.

 

In 2013, the Group via KPKKT has entered into a tripartite conservation Agreement with Tesco Stores (Malaysia) Sdn Bhd (“Tesco”) and Malaysian Timber Industry Board (“MTIB”) to conserve, protect and manage a plot of land owned by the subsidiary by planting approximately 25,000 Karas trees as part of Tesco’s Greener Earth programme.