SAMEE Group adopts a risk-informed, phased approach to managing climate change and broader environmental risks, aligning operational priorities with long-term resilience and regulatory expectations. Central to this approach is a focus on ensuring full compliance with environmental regulations, enhancing emissions monitoring and reduction, improving energy and water efficiency, and preparing for potential climate-related disruptions. These efforts are guided by a principle of scalability and are integrated into both site-level operations and capital investment planning to ensure pragmatic and financially responsible implementation.
Climate governance within SAMEE Group is overseen by the Risk and Sustainability Committee, with performance indicators and progress toward climate goals tracked at the Group level. Day-to-day environmental performance is driven by close coordination among Engineering, Facilities, Environment, Health and Safety (“EHS”), and the sustainability teams, reflecting a multi-functional accountability structure that enables cross-disciplinary alignment and execution.
SAMEE Group’s climate strategy is built on four core pillars. The first pillar is Emissions Measurement and Reduction, which focuses on strengthening Scope 1 and Scope 2 GHG accounting, with plans to progressively expand into Scope 3 categories where data is material and reliable. The second pillar, Environmental Monitoring and Performance Tracking, entails the monthly collection and analysis of key environmental indicators such as energy consumption, water usage, and waste generation, to support emissions reduction, ensure regulatory compliance, and inform long-term performance benchmarking. The third pillar, Energy Transition and Efficiency, involves the deployment of solar photovoltaic (“PV”) systems and site-level energy efficiency enhancements to drive down operational emissions. The fourth pillar, Stakeholder Engagement and Transparency, centres on strengthening disclosures in alignment with the Bursa Malaysia Climate Reporting Guide, while progressively preparing for conformance with IFRS S2 and the Global Reporting Initiative (“GRI”) standards.
Throughout FY2025, SAMEE Group executed several key climate-related initiatives. A 1,487 kWp rooftop solar system, commissioned in FY2024, served as a flagship project, with additional installations scheduled in the coming years. The Group completed comprehensive Scope 2 emissions accounting using audited utility data and emission factors and continued enhancing data accuracy and site-level coverage. Operationally, environmental awareness campaigns such as “Green Lifestyle at Work,” “Carpooling Encouragement,” and “Plant-a-Tree” were conducted to build internal ownership and awareness of climate objectives. In parallel, selected facilities implemented automated water flow sensors and leak detection systems to improve real-time monitoring and identify efficiency opportunities. The Group also introduced RO reject water reuse systems, allowing reclaimed water to be used for non-potable purposes such as toilet flushing and landscaping. In addition, rainwater harvesting systems were installed to reduce dependence on treated municipal water, further contributing to water resource conservation.
SAMEE Group’s climate strategy is executed with prudence, guided by clearly defined milestones and disciplined investment thresholds to ensure resilience, cost-efficiency, and readiness for a low-carbon future. The table below presents the Group’s total GHG emissions across Scope 1 and Scope 2, as well as Scope 3 emissions, which currently cover employee commuting and business travel only:
The increase in emissions, particularly under Scope 2, is primarily driven by higher electricity consumption due to expanded production capacity in Thailand, and the inclusion of Aviatron (M) Sdn. Bhd. into the reporting boundary. Moving beyond year-on-year monitoring, SAMEE Group has set measurable performance targets that reflect its long-term climate ambitions. The Group is actively pursuing a reduction in GHG emissions intensity while scaling up renewable energy generation capacity. Progress against these key environmental targets is detailed below:
Climate change poses a serious threat to ecosystems, economies and societies worldwide. We recognise its profound impact and are committed to being part of the solution through responsible business practices and collaboration.
We ensure that our climate-related commitments are consistent with the positions of the industry associations we belong to, including the Malaysian Semiconductor Industry Association (MSIA), Free Industrial Zone Penang Companies’ Association (FREPENCA), Penang Skills Development Centre (PSDC) and Malaysian Employers Federation (MEF). Through these platforms, we engage on issues such as ESG practices, regulatory compliance, talent development and climate-related disclosures.
As part of our ongoing review of these memberships, we have not identified any inconsistencies between our climate policies and the positions of these associations. Should any misalignment arise in the future, we will respond appropriately by taking reasonable measures to uphold our sustainability principles.
Public Policy – Penang 2030 Commitment
In FY2023, SAMEE set a target to reduce its GHG emission intensity by 10% annually over the next three years. To support this goal, we are establishing a comprehensive GHG emission data tracking and management system to monitor, analyse, and disclose our emissions performance. Our GHG emissions are consolidated using the financial control approach, ensuring consistency and alignment between our sustainability reporting and financial disclosures.
Looking ahead, we aim to enhance the coverage of our emissions data, expand our carbon inventory, and gain a more comprehensive understanding of our overall carbon footprint. We will also explore the collection and calculation of Scope 3 emissions where feasible, to assess value chain impacts and identify decarbonisation opportunities across our operations and supply chain.
SAMEE is clearly aware that climate change will have positive or negative impacts on the company’s production and operations. In the future, we will promote the identification of climate-related risks and opportunities, assess the potential and actual impacts of risks and opportunities on SAMEE and eliminate or reduce impacts through project planning and various risk management measures. We will take climate change into consideration in the company’s future strategic development process and seek more sustainable and green strategies to develop our business.
In light of the trend towards decarbonisation, SAMEE recognizes the importance of assessing the potential impacts of climate change on our business operations and long-term resilience. In alignment with the IFRS S2 requirements, which supersede the TCFD recommendations, we are conducting a climate risk and scenario analysis to assess the potential impacts of climate change on our business. This analysis considers a range of global warming scenarios and evaluates both physical and transition risks relevant to our operations and strategic planning.
The SAMEE Carpooling Programme encourages employees to reduce our carbon footprint and contributes towards environmental sustainability and GHG emissions reduction.
The programme was successfully launched in January 2023 with an initial three (3) groups of carpoolers who signed up. As continued efforts were being made to promote environmental sustainability, we increased to four (4) groups of carpoolers at the end of Mar 2023. In the reporting period of FY2023, we have achieved an overall reduction in GHG emissions of 0.39 tCO2e based on reduced employee commuting miles. A good first step towards environmental sustainability and emissions reduction involves employee commuting.