We recognise our accountability to our stakeholders and our obligation to engage effectively and regularly with them regarding the business’ performance. We regularly engage with our stakeholders to keep track of their concerns, which could change from time to time, and are committed to being well prepared to respond to their changing concerns.
Our formal engagement with our stakeholders include:
In March 2021, Top Glove conducted a formal and comprehensive materiality assessment to identify critical ESG issues which drive our long term value creation and have a significant impact on the Company's business performance. The assessment, led by the Sustainability Steering Group, was undertaken by an independent third party to ensure objectivity and complete confidentiality. A holistic approach was adopted in conducting the assessment, towards ensuring that identified issues were material to the Company’s performance, enabling us to effectively prioritise and allocate resources to address the issues.
In July 2022, Top Glove conducted a high level refreshed materiality assessment after FY2021’s formal and comprehensive assessment in view of the transition phase which the glove industry is facing post pandemic.
At 2023, we took the important step of conducting a materiality validation, which has been thoroughly reviewed and received approval from our Board of Directors. This validation process considered a range of internal and external factors, including:
Materiality Assessment: https://www.topglove.com/materiality-assessment/
Yes, the Company addresses and mitigates water risks through a Water Management Plan, which consist of 5 initiatives, namely:
a. Water Treatment Plant (Reverse Osmosis, Ultrafiltration, Wastewater Reclamation)
b. Rainwater Harvesting
c. On Site Detention (OSD) Tanks
d. Installation of Filters at Pre Leaching Tank
e. In-house Water Recycling Facilities
The Company also sets water consumption intensity targets and monitor water consumption progress across all divisions.
Find out more about our water management strategy and progress on pages 28 to 30 of our Sustainability Report 2023.
To reduce carbon emissions, we have invested in solar power systems since 2020. Efforts to install solar power panels on our factories’ rooftops are ongoing. As of FY2023, we have 8 factories in Selangor are installed with solar power system, with capacity of 5.34MWp.
We have implemented a Smart Energy Monitoring System (SEMS) to closely monitor our energy usage and identify any wastage. The SEMS enables our engineers to monitor real time data of energy consumption and understand energy trends of our factories through the analysis of data from monthly reports generated by the system. It allows for any abnormalities to be identified and rectified quickly and efficiently. This ultimately enables Top Glove to identify the energy distribution in the factories and create awareness among the workforce in the factories to eliminate unwanted carbon emission due to wastage.
We target to reduce our carbon intensity by 10% by FY2025 against the base year FY2022.
We conduct an internal audit at least once a year, and we ensure that all internal auditors are competent to conduct the audits. External audits are also conducted once a year by independent certification bodies, such as SIRIM, to ensure environmental compliance.
For more information on this, please refer to our Environmental Governance.
While exploring and working towards setting a net zero carbon target, we have set FY2025 medium term targets on eco efficiency and responsible consumption against FY2021 Key Medium Term ESG Targets
We are committed to integrating the Task Force on Climate-related Financial Disclosure (TCFD) framework into our climate risk management and reporting. This involves incorporating additional climate change-related risks into the Company’s Risk Management Framework, besides risks identified earlier such as flood risk and water risk.
We know environmental transparency is vital for a sustainable future. We disclose our climate change and water security impacts through CDP, a global non-profit that runs the world’s leading environmental disclosure platform.
Our environmental data is also available on our corporate website and sustainability reporting in the Sustainability Report 2023 (page 17 to 38).
We are committed to ensure sustainable supply chain. Currently we are working to improve supply chain traceability and we will be sharing more when we have more progress in this initiative.
Our existing initiatives in ensuring a sustainable supply chain include:
Yes, guided by Top Glove’s Environmental Policy, we are committed to reducing adverse impact to the environment and the community by reducing the environmental footprint in our operations including distribution and logistics, business facilities, and the supply chain.
Top Glove has strengthened its processes to meet international best labour practices (guided by Business Social Compliance Initiative, BSCI, Sedex Members Ethical Trade Audit, SMETA & International Labour Organization ILO indicators).
Continuous Improvement in Workers’ Accommodation: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/sustainability/Continuous%20Improvement_v2.pdf
ESG issues, including labour rights, health and safety are oversight by the Board Risk Committee and Board Sustainability Committee, which are chaired by Independent Directors, and where Independent Directors consist a majority of committee members.
Focusing on the welfare and wellbeing of workers, Top Glove’s Independent Directors engage with workers quarterly back then and half yearly now to listen to the feedback and issues of workers so that they could offer assistance as and where needed.
The 1st Engagement Session between Top Glove’s Independent Directors and Foreign Workers’ Representatives, with the presence of the management, took place on 9 March 2021, with six worker representatives of two different nationalities, Nepalese and Bangladeshi.
Various worker related issues are discussed during these quarterly engagement sessions, which include accommodation; grievance procedures and complaints processes; awareness of workplace bullying and sexual harassment; as well as COVID19 vaccination, and the Company’s efforts towards vaccinating the entire workforce.
To read more about the role Independent Directors play in addressing labour issues, please click here.
We request our suppliers to adhere to the Business Partners’ Code of Conduct, which articulate our expectation of our suppliers in terms of ESG practices. Critical suppliers are required to be assessed on social and environmental criteria during suppliers audit.
We conduct Supplier Performance Assessment every 6 months to monitor suppliers' performance in terms of Quality. We also evaluate raw materials to ensure it meets our requirement & specification. All deliveries by suppliers will come with COA and SDS (Safety Data Sheet) attached together with the raw material/product supplied.
From FY2019 to FY2023, there were no incidents of non-compliance with regulations concerning product safety & quality (Disclosed in the Sustainability Report 2023, Page 82).
As a health care product manufacturer, we are committed to produce high quality gloves and non-glove products that protect the lives we touch. In FY2023, we retained our certification for ISO 9001 Quality Management System for all existing-glove and non glove. Sustainability Report 2023.
We conduct town hall session with our suppliers to emphasise our stand on our robust labour practices. Supplier audits are being conducted after the town hall sessions to assess and monitor human rights risks and there were no potential negative social impacts identified. Sustainability Report 2023(Disclosed in the Sustainability Report 2023, Page 84)
Top Glove enhanced its Product Streamlining to ensure proper management of products in categories such as industries, colors, weight etc.
Top Glove has diversified into different product range ie, Face mask, Hand Sanitiser, Household products. To add on we ventured into Rubber Reclaimed Products to increase our export.
With the engagement of independent consultant Impactt Limited to assess the Group’s social compliance practices, we have improved our labour practices. Impactt verified that we have eliminated all indicators of systemic forced labour in our direct operations in April 2021, a reflection of the effective engagement between the independent consultant and Top Glove.
Yes. The Freedom of Association Statement is articulated in our Human Rights & Ethical Conduct, under Section 4.4.