SUSTAINABILITY FAQ

We recognise our accountability to our stakeholders and are obligated to engage effectively and regularly with them and to report the business’s performance. We frequently engage with our stakeholders to keep track of their concerns as their concerns could change and we wish to improve our relationships with the various stakeholders, hence we are committed to being well prepared to response to any changes.

Corporate Disclosure

The Board reviews and approves all quarterly and other important announcements. The Company announces its quarterly and full year results within the mandatory period. The financial statements and press releases including material and price-sensitive information are disseminated and publicly released via Bursa LINK on a timely basis to ensure effective dissemination of information relating to the Group. The Board has formalised a Corporate Disclosure Policy to ensure that communications to the public regarding the Group are timely, factual, accurate and complete. The said Policy outlines the central principles and practices in communicating with the investors, shareholders, medias and regulators.

Effective Dissemination of Information

An effective communication channel between the Board, stakeholders, institutional investors and the investing public at large is essential to provide a clear and complete picture of the Group’s performance and development, in a comprehensive, timely and continuing disclosure manner. Essentially, the Board is fully committed in maintaining a high standard in the dissemination of relevant and material information on the development of the Group.

The Company has always been providing as much information on a voluntary basis in addition to complying with Bursa Securities Main LR through media releases. The Board is mindful of the legal and regulations governing the release of material and sensitive information so as not to mislead shareholders. Therefore, information that is price-sensitive or any undisclosed material information about the Group is not disclosed to any party until it is ready for simultaneous distribution. The Company has been using the following formal channels to communicate with shareholders and stakeholders:

  • Annual Report
  • Announcements to Bursa Securities
  • Quarterly Results and Analyst and Media Briefings

Integrated Annual Report: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/anual_report/Integrated%20Annual%20Report%202020_Latest.pdf

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 was led by the Sustainability Steering Group and undertaken by an independent third party to ensure objectivity and complete confidentiality. A holistic approach was adopted in conducting the assessment, towards ensuring that issues identified were material to the Company's performance, thereby enabling us to effectively prioritise and allocate resources to address the issues.

Materiality Assessment: https://www.topglove.com/materiality-assessment/

In 2020, Top Glove garnered an award for Notable Achievement in Environmental Performance at the prestigious Prime Minister’s Hibiscus Award 2019/2020. Link: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/WebEvent/UploadItem/EventDocument/7413692e-5614-45fc-b035-4afe23e92ed8_en.pdf

For the 2nd year running, Top Glove has been listed on the Dow Jones Sustainability Indices (DJSI) under the Emerging Markets category. The world’s largest manufacturer of gloves is also the only Malaysian company to be listed on the 2020 DJSI. The DJSI Emerging Markets Index tracks the sustainability performance of the top 10% largest Emerging Markets companies on the S&P Global Broad Market Index and serves as a key reference point for investors and companies alike. Top Glove also earned another feather in its cap when its Factory 29 (F29) emerged as winner in the 2020 National Energy Awards (NEA), under Category 1 (Large Industries). Organised by the Malaysian Ministry of Energy and Natural Resources (KeTSA), the 2020 Awards recognises the efforts of companies in furthering the nation’s progress towards a more sustainable future. Link: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/WebEvent/UploadItem/EventDocument/dc5fc762-2fdf-4b19-9352-bfbd685d76ed_en.pdf

Yes, Guided by Top Glove’s Environmental Policy, we are committed to diminish adverse impact to the environment and the community by reducing the environmental footprint in our operations including distribution and logistics, business facilities and supply chain with the.

Environmental Policy: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/environment/Environmental%20Policy%202021%20(English)%20Website.pdf )

We know environmental transparency is vital for a sustainable future. In 2020, we disclosed our climate change and water security impacts through CDP, a global non-profit that runs the world’s leading environmental disclosure platform. Over 9,600 companies with over 50% of global market capitalization disclosed environmental data through CDP in 2020.
CDP: https://www.cdp.net/en

We are in the process of integrating the Task Force on Climate-related Financial Disclosure (TCFD) framework in 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. The TCFD Framework is used as a reference in our climate disclosure for the Sustainability Statement in our Integrated Annual Report. We continue to improve our climate strategy and risk management as well as provide in-depth and transparent reporting, with the aim of fully integrating the Framework.

In line with SDG 13: Climate Action and recognizing the effect of climate change as an impactful risk to the business, community and environment, we measure our CO2 emissions and target to reduce GHG emission intensity by 23% to 0.024 tonnes CO₂-eq/1,000 pcs gloves by FY2024 (base year: FY2019). We are committed to minimize our carbon footprint through the following initiatives:

  • Environmental Policy & Environmental Management System
  • Water Management
  • Fuel & Energy Management
  • Raw Materials
  • Transportation
  • Waste Management
  • Facilities Investment & Improvement
  • Product Innovation
  • Rubber waste recycling
  • Data Monitoring
  • Communications

Environmental: https://www.topglove.com/sustainability-environment/

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.

Business Partners’ Code of Conduct: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/Purchasing/Business%20Partners%27%20Code%20of%20Conduct%20Rev%201.pdf)

As a way to reinforce Top Glove’s business initiatives and extend best practices to suppliers, we had successfully held 7 Town Hall sessions on topics related to Social Compliance and Business Partners’ Code of Conduct throughout FY2020 & FY2021.

Moving forward in financial year 2022, the Supplier Town Hall will broaden its scope of coverage; this shall encompass other scope such as, Anti Bribery and Corruption, Risk Management, Quality Assurance, Safety & Security etc.

By creating outlets/programs like this, suppliers may comprehend better the needs and expectations of Top Glove Group of Companies in order to supply consistently high quality material and service, thus, demonstrating better compliance for a healthier business direction, culture and mind-set.

The Supplier Town Hall is targeted to all 100% active suppliers of Top Glove Group of Companies.

ESG Initiatives Business Partners: https://www.topglove.com/our-business-partners-/

Top Glove further solidified our commitment to sustainable initiatives, and our business ethics of Honesty, Integrity, and Transparency through the establishment of Sales & Marketing Code of Conduct, which includes the principles of sales, marketing and advertising. Encompassing the aspects of sales, marketing and promotional activities, ethical customer engagement, safeguarding of information, providing accurate and balanced information about our products and services, zero tolerance on corruption and bribery, and sustainable business practices, our employees are always fully committed to ensure that we exhibit a level of ethical behaviour that exceeds legal requirements.

Sales & Marketing Code of Conduct: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/pdf/Sales%20and%20Marketing%20Code%20of%20Conduct%20V20210801.pdf

We will conduct at least once a year internal audit and we ensure all the internal auditors are competent to conduct the training by sending or providing them training. For external audit, it will be conducted once a year by certification body, SIRIM to ensure environmental compliance.

Environmental Policy & Environmental Management System: https://www.topglove.com/sustainability-environment/

We will conduct at least once a year internal audit and we ensure all the internal auditors are competent to conduct the training by sending or providing them training. For external audit, it will be conducted once a year by certification body, SIRIM to ensure environmental compliance.

Environmental Policy & Environmental Management System: https://www.topglove.com/sustainability-environment/

In terms of our commitment to reduce carbon emissions, we have invested in solar power system since 2019. We are installing solar power panels on our factories rooftop which as of today, we have 8 factories with solar power panels and 12 factories are in the developing stage. https://www.topglove.com/ESG-initiatives

We target to reduce our carbon emission intensity by 23% by FY2024 against base year FY2019, and achieve zero carbon emissions at our water treatment plants and office premises & warehouses by 2022 and 2025 respectively. https://www.topglove.com/sustainability/

Yes, the Company address and mitigate water risks through Water Management Plan, which consist 3 initiatives as such;

    1. Reverse Osmosis Water Treatment Plant (ROTP)
    2. Water recycling at every factory
    3. Rainwater harvesting

Set water consumption intensity target and monitor water consumption progress (page 5)

Water Consumption Targets: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/sustainability/Environmental%20_2020.pdf

Water Management: https://www.topglove.com/sustainability-environment

One of the approach that we initiated are the Flood Mitigation Project where we improved the drainage system within the vicinity of our Klang factories as well as the nearby residential area.

Facilities Investment & Improvement: https://www.topglove.com/sustainability-environment

  1. We set target to reduce gas consumption intensity by 21% (MMBTU/ 1,000 pcs gloves) to 0.242MMBTU/ 1,000 gloves by FY2024 (base year: FY2019)
  2. We also target to reduce electricity consumption intensity by 12% (kWh/1,000 pcs gloves) to 6.29 kWh/1,000 pcs gloves by FY2024 (base year: FY2019)
  3. Currently our initiatives are in various areas such as:
    1. Heat recovery systems via combined and power plant (CHP) system, and also the 3Rs water system
    2. Improvements in equipment efficiency
      1. Converting biomass combustion facilities to greener ones with the use of cleaner fuel, namely natural gas, which in turn will generate lower carbon emissions
      2. Replacing low performance burners with advanced technology equipment
    3. Smart Energy Management System [SEMS]

With the implementation of SEMS onto the factories, the real time data of the energy consumption is monitor closely by the engineers whereby any abnormality on the energy consumption can be identify and rectify in the shortest time. Aside from that, SEMS allows the engineers to understand on the energy trend of the factories through the analysis of data from the monthly report generated from SEMS, hence enable the engineers to identify the wastage in the factories. As a conclusion, with the implementation of SEMS, Top Glove is able to identify the energy distribution in the factories and creating awareness among the factories to eliminate unwanted carbon emission due to wastage.

https://www.topglove.com/ESG-initiatives

  1. We manage scheduled waste in compliance with the Malaysian Department of Environment’s (DOE) regulations, where disposal methods include incineration, sanitary landfill, on-site storage, recovery and recycle by DOE certified scheduled waste collectors.
  2. Discharge is treated using chemical treatment and carbon filter, which the quality meets the DOE’s Standard B parameter and is discharged to the drain that flows to Pintu Air Klang.

(Integrated Annual Report 2020, Page 96)

https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/anual_report/Integrated%20Annual%20Report%202020_Latest.pdf

The rubber reclaim project commenced in September 2020, which aims to reclaim nitrile torn gloves into other value added rubber gloves. We developed in-house gaskets for which projected sales revenue generated will be more than RM16,000.00 in October 2020. Other developments include safety shoe outsoles, rubber mats and nitrile reclaim rubber bales.

Rubber Reclaim Project: https://www.topglove.com/ESG-initiatives

Yes, in 2019, we launched the BioGreen Biodegradable Nitrile Gloves (Powder-Free). The biodegradability of the gloves has been measured using the internationally-recognised ASTM D5511 Standard Test, in which these biodegradable nitrile gloves have been proven to biodegrade at least 10 times faster compared to conventional nitrile examination gloves. Top Glove’s BioGreen Biodegradable Nitrile Gloves was also the only such product to be shortlisted under the category of "New Environmentally Friendly Products”, at the Private Label Manufacturers’ Association trade show in Amsterdam in 2019.

https://www.topglove.com/glove-product/biogreentm-biodegradable-nitrile-powder-free-glove

Enhanced Grievance Procedure Policy & developed multiple grievance mechanisms for our employees, especially for our workers which include independent multi-lingual grievance helplines which are managed by third party consultant.

https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/environment/HRM%20GRIEVANCE%20PROCEDURE%20v24102020.pdf

https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/csr/Grievance_Mechanism-01022021.pptx.pdf

Every factory will have a worker representative from each nationality and gender, to carry out regular dialogues with HR representative to raise any concerns. We conduct quarterly meeting between worker representatives and the Independent Directors to discuss workplace/ wellbeing related issues.

  1. Top Glove is a member of Business Social Compliance Initiative, BSCI, Sedex Members Ethical Trade Audit, SMETA.
  2. We have strengthened our business practices in order to meet international best labour practices (guided by BSCI, SMETA &UNGC standards as well as ILO indicators).
  3. We adopt the Human Rights and Ethical Conduct, referring to the Business Social Compliance Initiative (BSCI) Code of Conduct.

  1. US Customs and Border Protection (CBP) issued a detention order on disposable gloves made by some of Top Glove’s entities (Top Glove Sdn Bhd, TG Medical Sdn Bhd & GMP Medicare Sdn Bhd) in July 2020.
  2. We are cognizant there is room for improvement and engaged Impactt, an independent international consultant in July 2020 to assess the Group's social compliance based on the International Labour Organization's (ILO) 11 Forced Labor Indicators, as well as to recommend and monitor our corrective action plans.
  3. Following the analysis, we have made a total of over RM150 million in remediation payments from August 2020 to April 2021, ahead of our planned timeline by July 2021. This covers more than 11,000 foreign workers.
  4. Other initiatives implemented include:
    1. establishment of independent grievance helplines in various workers’ native languages, which are managed by Impactt,
    2. implementation of the Prevention of Sexual Harrassment Policy and Prevention of Workplace Bullying Policy,
    3. improved the recruitment process agreement with the agents by adapting to transparent agent recruitment in conjunction with the Zero Cost Recruitment Policy,
    4. human rights trainings and tests as well as strengthened the advertising policy in relation to recruitment agencies to prevent incidences of deception.
    5. We continue to engage with an independent third party auditor to conduct quarterly assessments across our facilities to ensure ethical labour practices continue to be upheld.
  5. On 22 April 2021, Impactt verified Top Glove had eliminated all 11 ILO Indicators, whereby Top Glove has achieved “all Green” in terms of resolving the International Labour Organization (ILO) 11 Forced Labour Indicators. Currently, the verification report is under review by the CBP.

https://impacttlimited.com/updated-impactt-statement-on-top-glove-status/

https://impacttlimited.com/wp-content/uploads/2021/04/Top-Glove-Verification-Report_Q3April2021_public_v2.pdf