“We have dedicated a section to explaining our role in climate change stemming from the carbon intensive nature of our business and the importance of climate change.”

The Sustainability Reporting Team (SRT) took into account the following factors in determining the report content:

Materiality
The SRT felt that it was important to include the economic data reflected in our Annual Report as potential investors, customers and suppliers would be interested to know how well the company is performing in executing its growth plan through its integrated energy strategy.

The company is in the power generation business and thus depends on fuels which are linked to carbon emissions. As such, we have dedicated a section to explaining our role in climate change stemming from the carbon-intensive nature of our business and the importance of climate change at the national and global levels.

Power generation involves a complex chain of chemical processes which impact on the environment. We have included environmental information that is related to the local laws and regulations that control air emissions, trade effluent discharge, waste disposal and the handling of hazardous wastes, most of which is driven by the environmental management processes covered under ISO 14001.

We went further to disclose non-compliance environmental aspects that may pose health risks to the public or are related to climate change. Examples include reporting the company’s sulphur dioxide emissions and carbon dioxide emissions, as well as other greenhouse gas emissions.

On the social aspects of our business, we have included the important role that the company has taken in the career development of its staff through its emphasis on training. We have highlighted the important role that the union, UPAGE, has in terms of promoting employee welfare as well as its collaborative relationship with management in delivering company goals. For this reason, we have chosen to feature UPAGE’s role in collective bargaining under the Human Rights performance indicator category as this is more pertinent in our context compared to other human rights issues such as child labour, indigenious rights and forced labour, etc.   

We have also included an overview of our risk-management framework, in particular how fraud risk is managed to protect the company and its stakeholders. We have chosen to report on our fraud risk management practices in relation to the topic on corruption under the Society performance indicator category for its relevance compared to other societal indicators such as anti-competitive behaviour, public policy, etc. 

After determining what content goes into the report, the SRT agreed that climate change and the company’s environmental performance were the top priority topics and performance indicators.

Stakeholder Inclusiveness
This sustainability report is meant for all our stakeholders, which includes parties with whom the company has interaction or over whom it has an influence. As such, our employees, customers, major shareholders, board of directors, potential investors and suppliers, as well as the community in which we operate, are all stakeholders. In this report, we have included our engagement activities and processes with these stakeholders, which are covered in Section 5: ‘Corporate Governance and Stakeholder Engagement’.

Sustainability Context
The company sees itself playing a role in climate change action, and this report aims to link the sustainable development approach we have taken in balancing economic and environmental imperatives to deliver long-term outcomes. The company also believes in nurturing its employees and the community through social contributions, which centre on supporting talented youths.

Completeness
The report has taken into account materiality, sustainability context and its stakeholders. All entities of PowerSeraya, including its subsidiaries, have been included. For further affirmation, reference is also made to the Global Reporting Initiative G3 Sustainability Reporting Guidelines and Electric Utility Sector Supplement (RG Version 3.0/EUSS Version Pilot) to ensure that the content is consistent with the sustainability indicators of the industry with which we are associated.

Quality
The report seeks to provide an unbiased picture by including performance indicators that cover all GRI indicator categories. We feel that a company’s performance is governed not only by its economic achievements, but also its environmental and social performance which give readers a balanced view. Both positive and negative results are presented and for easy trend analysis, charts and graphs are used where appropriate.

Comparability
We have included two years-worth of content in the report (and in some areas 3 years data) so that there can be some basis of comparison of the company’s economic, environmental and social performance. Where appropriate, we have compared our performance against industry or equivalent standards.

Accuracy
All content is backed by supporting documentary evidence provided by members of the Sustainability Report Team (SRT) which comprises employees representing every major business unit in PowerSeraya. Where possible, we included methodologies and assumptions explaining how the performance was calculated.

Timeliness
We aligned the environmental and social performance indicators with the economic indicators. The latter are in the company’s Annual Report on a financial year basis, as the financial year ends in March and the report is released in August.

Clarity
The report is meant for all stakeholders, so conscious efforts have been made to present it in a clear, concise manner so that it caters to all readers. Information that is deemed too technical have been avoided, so that the report would be accessible to readers without technical knowledge.