The Company is a licence-holder of Sustainable Forest Management Licence Agreement 06/97 ("SFMLA 06/97"), covering an area of 71,293 hectare of natural forest in the Lingkabau Forest Reserve, Forest District of Kota Marudu, Sabah. Subsequently, the Company has on 12 April 2018 entered into a Sustainable Forest Management Licence Agreement ("Supplemental") under the 100 years SFMLA 06/97 for conversion of 15,438.30 hectares into Protection Forest Reserve ("Class One") and excise 10,195.28 hectares for socio-economic purpose. Pursuant to the exercise, the remaining licensed area is 45,659.42 hectares.
Our activities and commitments to Corporate Responsibility are consistent with the concept, principles and practices of the sustainable forest management to ensure the sustainability of our forest resources.
Under the SFMLA, we are mandated to manage the licenced forest area based on the principles of sustainable forest management "to ensure forest remaining large, healthy, diverse and productive".
The principles of sustainable forest management entail the following:
In achieving the above principles, the Company has set the following Policy Statement:
The forest management practices adopted by the Company are basically in line with those a dvocated by Sabah Forestry Department and comprise the following:
The table below depicts the key performance indicators of the forest resource management:
|No.||Performance measure||Target (ha)||Achieved (ha)|
|1.||Set the objectives||To meet with the regulatory requirements.|
|2.||Identify the Topics||Covers a range of required sustainability topics.|
|3.||Collect the Information||Selective case studies and limited ad-hoc data.|
|4.||Communicate the Results||Minimal content made publically available on an inconsistent basis.|
The activities conducted during the workshop:
a) Summary of Stakeholder, Stakeholder Engagement Method, and Challenges Faced or Anticipated and How to Improve (Table A);
b) Stakeholder Prioritisation Process & Matrix (Table B);
c) Influence on Stakeholder Assessment and Decisions (Table C)
d) Materiality Matrix (Table D)
From the Stakeholder Prioritisation Process & Matrix, the Company has identified 2 stakeholders whom have high influence and high dependence to the Company. There are the Contractor and Employee. Based on the Materiality Matrix (Table D arising from the EES, the areas has significant impact and influence to the Company are illustrated in the table below:
|Stakeholder||Relevant EES Matters|
|1.||Contractor||Labour and Management Relations|
|2.||Employee||Training and Education|
Contractor have high influence and high dependence to the Company and their most significant impact and influences key matters are Labour and Management Relations and Weather Conditions.
In our Company, the engaged contractors for harvesting, silviculture, liberation treatment, planting and maintenance were all briefed prior to commencement of activities on requirements to observe environmental mitigations such as prohibition of any activities along the river/stream reserve. They also observed the open burning prohibitions.
Labour and Management Relations
During the year, with regard to labour and management relations, the Company have incorporated in the engagement contract agreement that the contractor shall ensure that all the employees involved in forestry activities in the assigned area are registered with Forestry Department by filling of the ‘Certificate of Identity' and ensure that the annual endorsement of the certificate is carried out. The contractors have also initiated effort to regularize its workers with all the relevant authorities. For the forthcoming year, the Company plans to inculcate more safety and environmental awareness to the contractors.
For the year 2018, all contractors have fulfilled the TLAS audit with respect to safety related and environmental mitigation principles. However, the Company intend to further educate the Contractors in order to make them aware that the actions taken is not only as part of their obligation but more on working etiquette.
The contractors are required to update a daily weather chart and submitted to the office on weekly basis commencing mid of 2018. The rainfall occurrences are counter checked by the Company field rangers and the record kept in the site office.
The Company having a diverse, multi-cultural workforce consisting of skilled and technical employee including team of professional in the senior management level.
Training and Education
The Company places much emphasis on its staff training and development programmes. As with its Board of Directors, staff are also encouraged to undertake continuing professional education to equip themselves with the latest technical and statutory updates to stay relevant and be prepared for their jobs.
In year 2018, a total of 7 trainings related to the Company’s operations were held for all levels of employees. The trainings are as listed below:
|No.||Continuing Education Programme Attended||Month Attended|
|1.||WWF High Conservation Value ("HCV") Intro and Refresher Training||July 2018|
|2.||Sustainability Engagement Series for CFO and CSO||July 2018|
|3.||Bursa Malaysia with MIA partnership "Evolutions of future CFO"||August 2018|
|4.||Sabah Timber Legality Assurance System stakeholders Consultation||October 2018|
|5.||Sabah Forestry Department "Sustainable Forest Management Implementation and other related issues"||November 2018|
|6.||MTIB "Strategy Workshop of National Timber Industry Census study"||November 2018|
|7.||Sabah Forestry Department "The Sixth Project Steering Committee (PSC) Meeting of the EU Funded Programme Tackling Climate Change Through Sustainable Forest Management And Community Development"||December 2018|
For the upcoming year, the Company have included in Annual Work Plan 2019 to conduct further training as indicated below:
|Table 1: Tentative schedule for staff training in 2019.|
|Type of Training||Personnel Involved||Implementation|
|RIL Operator Refresher||Tractor operators Timber Fellers Hookman||2nd Quarter|
|Wildlife awareness course In collaboration with World Wildlife Fund (“WWF”)||Supervisors Rangers Selected staff||3rd Quarter|
|First Aid training||Safety Committee||3rd Quarter|
Moving forward, the Company will continue the practice of measuring, disclosing and accounting for corporate performance towards the goal of sustainable development. Sustainability key matters are complex, inter-connected and continually evolving. Thus, this report essentially describes the Company’s performance in its forest resource management, and initiatives on environmental and social responsibility during 2018, and presents our commitments for the future years.