SUSTAINABILITY FAQ

Establish Hostel Management Committee in Dec 2020 to manage workers’ accommodation issues.

Top Glove has spent RM200 million on new accommodations for 14,200 workers, fully complying with Act 446. https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/sustainability/Continuous%20Improvement_v2.pdf

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).

  1. Engagement of an independent third party international consultant, Impactt, in July 2020 to assess the Group's social compliance quarterly against ILO Forced Labour Indicators. https://impacttlimited.com/updated-impactt-statement-on-top-glove-status/
  2. Establishment of independent grievance helplines in various workers’ native languages, which are managed by Impactt https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/csr/Grievance_Mechanism-01022021.pptx.pdf
  3. Enhancement of policies (Prevention of Bullying Policy, Prevention of Sexual Harassment Policy, Foreign Workers Recruitment Policy) https://www.topglove.com/policies/
  4. Establishment of Hostel Management Committee in Dec 2020 to manage workers’ accommodation issues. https://www.topglove.com/social-compliance/
  5. Monthly meeting between HR management representative with worker representatives from each factory for workers to raise workplace & accommodation issues. https://www.topglove.com/continuous-improvement-report/
  6. Awareness to all employees on sexual harassment, workplace bullying and town hall session with workers on available grievance channels.
  7. Labour management performance as Group KPI and is linked to Executive Compensation. https://www.topglove.com/governance/

  1. We improved our Prevention of Bullying Policy, Prevention of Sexual Harassment Policy & Grievance Procedures to ensure adequate procedures are in place. https://www.topglove.com/policies/
  2. We enhanced the Recruitment Policy through the enhancement & revision of the Recruitment Agreement in which we have included job advertising policy in the Recruitment Agreement.
  3. We practice transparent and fair open tender process as part of our process of appointing recruitment agencies. https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/sustainability/27052021%20Tender%20Notice%20for%20Recruitment%20of%20Foreign%20Worker%20Services%20Final.pdf

  1. To enhance employee engagement, we have developed multiple grievance mechanisms and independently managed whistleblowing channels for our employees, especially for our workers. Every factory will have a worker representative from each nationality and gender, to carry out regular dialogues with HR representative to raise any concerns.
  2. We conduct quarterly meeting between worker representatives and the Independent Directors to discuss workplace/ wellbeing related issues. https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/anual_report/Integrated%20Annual%20Report%202020_Latest.pdf

  1. Top Glove has allocated USD 47 mil (MYR200 mil) CAPEX on new accommodations for capacity of 14,200 workers, which the accommodation will be ready in end 2021 to mid 2022.
    • We have made an investment of RM20 mil on purchasing 102 units of apartments for our employees and renting additional houses and apartments.
    • As for the mid-term plan, approximately RM105 mil to be spend for new workers hostels, which includes building mega hostels in Klang and Banting in Selangor, with a combined capacity of 11,600 pax. We purchased a Kenangan Meru apartment block in Klang, Selangor for RM95 mil with a capacity to house 2,600 workers which is expected to be completed by middle of 2022. The Group is also building and acquiring additional houses, apartments, and hostels in other states, amounting to approximately RM30 mil.
  2. We have also made USD 35 mil (MYR 150 mil) of remediation payment to 11,000 of our foreign workers, including former workers.

    Continuous Improvement in Workers’ Accommodation: https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/sustainability/Continuous%20Improvement_v2.pdf

  1. We have included Labour management performance as Group KPI and is linked to Executive Compensation.
  2. HR Compliance Team conduct monthly internal social compliance audit
  3. The management of the company is subject to merits and demerits for compliance and non-compliance respectively. Management staff will subject to severe disciplinary action such as termination of employment for critical non-compliance.
  4. We conduct monthly meeting between HR management representative with worker representatives from each factory for workers to raise workplace & accommodation issues.
  5. Town hall session with workers on available grievance channels is conducted
  6. We have conducted more than 1,100 training hours on human rights and social compliance trainings. Recent trainings that have been conducted:
    • Workplace bullying and sexual harassment training to all employees.
    • Training sessions with workers, supervisors, and management on workplace bullying policies and how to raise grievances

  1. The management of the company is subject to merits and demerits for compliance and non-compliance respectively. Management staff will subject to severe disciplinary action such as termination of employment for critical non-compliance. https://www.topglove.com/social-compliance/
  2. Labour management performance target is set as Group Key Performance Index (KPI) and is linked to Executive Compensation and all employees. In this KPI, we measure based on international standards (Business Social Compliance Initiative, BSCI & Sedex Members Ethical Trade Audit, SMETA standards) social compliance audit scoring. https://www.topglove.com/governance/
  3. From our due diligence process, we have terminated 2 recruitment agents in FY2020 as they do not meet the Company’s social compliance standards.

With the engagement of independent consultant, Impactt to assess the Group's social compliance practices, we have improved and being verified that we have eliminated all indicators of systemic forced labour in our direct operation. It has reflected the effective engagement between the independent consultant and Top Glove which Top Glove has improved from 1 “Green” of the ILO forced labour indicators in Aug 2020 to all “Green” in Apr 2021. https://impacttlimited.com/updated-impactt-statement-on-top-glove-status/

https://impacttlimited.com/wp-content/uploads/2021/09/Top-Glove-Verification-Report_Q3April2021_public_v2.1.pdf

Focusing on the welfare and well-being of workers, the Independent Directors engage with workers monthly to listen to the feedback and issues of workers so that they could offer assistance. The 1st Engagement Session between Top Glove’s Independent Directors and Foreign Workers’ Representatives with the presence of the management kick-started on 9 March 2021, with six workers representatives from two different nationalities i.e. Nepal & Bangladesh. Various workers related issues were discussed in every quarter engagement, which include accommodation, grievance procedures & complaints processes, awareness on workplace bullying & sexual harassment and COVID-19 vaccination.

https://www.topglove.com/board-committees/

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.

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

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 FY2017 to FY2020, there were no incidents of non-compliance with regulations concerning product safety & quality (Disclosed in the Integrated Annual Report 2020, Page 110). https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/anual_report/Integrated%20Annual%20Report%202020_Latest.pdf

Yes. We comply with ISO 9001. (Integrated Annual Report 2020, Page 11). As at FY2020, 11% of our factories are certified with ISO 9001. We are targeting to certify another 25% factories this year and to achieve 100% certification by Q3 2022.

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

  • 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 https://www.topglove.com/social-compliance/

  • 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.

Work hour policy is articulated in the Human Rights and Ethical Conduct (Section 4.3: Minimum wage & working hour). (https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/environment/HRM%20-%20HUMAN%20RIGHTS%20AND%20ETHICAL%20CONDUCT%20(Rev2%2024072020).pdf). It has been verified by our third party independent director that the Company comply with work hour laws & regulations.

Board Diversity Policy:

https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/pdf/TopGlove_BoardDiversityPolicy18062019.pdf

Gender diversity (Integrated Annual Report 2020, Page 105)

We recognise women’s contributions in the workplace and are committed to achieve a gender balanced workforce. In FY2020, we closed the gap between female and male employees, where the percentage of females in our workforce increased compared with the preceding year.

We improved our Prevention of Bullying Policy and Prevention of Sexual Harassment Policy to ensure adequate procedures are in place.

https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/sustainability/HRM%20Prevention%20of%20%20Bullying%20Policy%20(v21102020).pdf

https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/environment/HRM%20Prevention%20on%20Sexual%20Harassment%20Policy%20(v17102020).pdf