Our Approach to Sustainability

Our priority hinges on good governance that permeates throughout the organisation, responsible stewardship in upholding core values, care for our people and a keen focus in protecting our environment. 

Sustainability > Sustainability Approach

Over the years, our organisation has established a sustainability policy, put governance structures in place and aligned our efforts with the UN SDGs making tremendous progress in our sustainable framework. SAMEE is well-positioned to continue contributing favourably to sustainability initiatives in the future by concentrating on EESG concerns and improving its sustainability content. Currently, we express our values explicitly through our inclusion of the sustainability journey within the EESG framework.

Sustainability Governance Structure

SAMEE believes in the importance of a proper and functional governance structure. Our governance structure ensures transparency, accountability, clearly defined roles and effective decision-making for sustainability strategies and implementation.

Board of Directors

• Guides on key economic, business, environmental and social issues
• Ensures practices in sustainability are incorporated into all critical decision-making processes and implementations
• Approving the sustainability and risk management framework
• Deliberates on sustainability and risk governance issues

Risk & Sustainability Committee

• Review and recommend sustainability strategies and performance targets for SAMEE on a Group basis.


Sustainability Committee Working Group

• Sustainability Committee Working Group (“SCWG”), comprising heads and members of our business units and divisions oversees the implementation, monitoring and delivery of the ESG initiatives and performance.


SAMEE’s proven governance structure adds value to stakeholders in all business and sustainability aspects. Sustainability is integrated into our daily strategy while we facilitate sustainability-related work with employees, partners, shareholders, government, customers, community and media. We are dedicated to upholding sound corporate governance, consistently upholding high moral standards in all facets of our operations and abiding by all applicable laws and regulations in the jurisdictions in which we conduct business.

Sustainability Approach

The EESG pillars of sustainability form the foundation of SAMEE’s Sustainability Policy (“Policy”) and we focus priority on governance considerations to reinforce our commitment to sustainability. The focus is on integrating economic, environmental, social and governance elements into daily operations while coordinating our actions with the SDGs of the United Nations.

In terms of approach and efforts, we ensure that all of our internal stakeholders are aware of our commitment to sustainability. For this reason, we continue to host pertinent sustainability-related workshops and talks for our internal stakeholders, particularly our heads of divisions and departments and we integrated our sustainability approach and initiatives into our orientation programme for our new employees to ensure we have a consistent and shared understanding of the sustainability initiatives and measures embraced by SAMEE.

We promote our sustainability principle and practices: Awareness, Comprehension, Commitment, Action, Evaluation and Monitoring among our leaders and internal and external stakeholders to achieve our sustainable goals.

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Stakeholder Engagement

SAMEE practices holistic and consistent stakeholder engagement with businesses, organisations and people with a stake or an influence in our daily business activities and long-term business planning. We believe open and transparent communication is key to maintaining stakeholder trust. This enables us to share our vision and commitment to a sustainable future and we treat this as one of the critical success factors for our business survival and growth plan.

In our effort to achieve maximum impact, SAMEE strives to achieve long-term partnerships with stakeholders in our employee and community programmes, government authorities, customers, suppliers and the media. For instance, business and trade associations such as the Federation of Malaysian Manufacturers (“FMM”) and the Malaysia Semiconductor Industry Association (“MSIA”).

We have assessed, prioritised and engaged with our stakeholders to ensure that we have identified and considered all the relevant stakeholders to further our sustainability approach and our business strategy, thereby realising a long-term business plan.

We also periodically conduct Employee Engagement Surveys to assess the views of our employees on several factors, including the work environment, compensation and benefits, job satisfaction and supervisory support. Although conducted anonymously, the results allow us to allocate resources and target relevant actions toward the  employee category or site that most require it.

Areas of Interest / Concerns:
• Update on the current and future directions of SAMEE
• Update on the current and projected performance of SAMEE
• Opportunities for healthy career growth, upskilling, and learning & development
• Update on the current and future plans for the working environment, especially on job security, health and safety
• Safeguarding human rights and a humane & respectful workplace environment

Engagement Channels:
• Periodic and ad-hoc meetings and interactions
• Workshop discussions
• Weekly coordinating meeting and Weekly operation meeting
• Quarterly employee communication session
• Quarterly management meeting
• Annual Management Retreat/Conference
• Board and Board Committee meetings
• Plant/Factory visits
• Learning and development programmes
• Value Creation Programme
• Corporate volunteering programmes
• Induction training
• Employee performance appraisal
• Employee Engagement Surveys
• SAMEE eHub App on Smartphones
• HR participates in Career Talks during SAMEE Career Day and career fairs organised by Perkeso and Learning Institutions

Sub-Group:
• Directors, Management, Permanent staff, and Contract staff

Frequency:
Annually, Quarterly, Monthly, Weekly, and Ongoing

Areas of Interest / Concerns:
• Current and projected growth opportunities and threats
• Funding needs
• Risk management
• Corporate governance
• ESG-compliant and initiatives
• Board representation and diversity

Engagement Channels:
• Timeliness and periodic Bursa announcements
• Analysts/fund managers presentations and briefing
• Analyst reports on SAMEE
• Media write-ups on SAMEE
• Annual General Meeting
• SAMEE Annual Report

Sub-Group:
• Shareholders, Investors, Financial, and Institutions

Frequency:
Annually, Quarterly, and Ongoing

Areas of Interest / Concerns:
• Product & technology development and collaboration
• Quality & reliability of products & services with assurances
• Projected orders and commitments
• Timeline and timeliness in delivery
• Warranties and claims
• Customer service
• Pricing issues and trends
• International & specific standards and ESG compliant
• Human/labour rights and safety
• Business Continuity Planning on delivery Collection aging/schedule

Engagement Channels:
• Periodic and ad-hoc meetings and interactions
• Periodic and surprise quality control and audit by customers
• Monthly Operation Review
• Quarterly Business Review
• Conduct a Customer Satisfaction Survey

Sub-Group:
• Customers representatives

Frequency:
Annually, Quarterly, Monthly, Weekly, and Ongoing

Areas of Interest / Concerns:
• Product & technology development and collaboration
• Quality & reliability of products & services with assurances
• Projected orders and commitments
• Timeline and timeliness in delivery
• Warranties and claims
• Customer service
• Pricing issues and trends
• International & specific standards and ESG compliant
• Human/labour rights and safety
• Business Continuity Planning on supply
• Payment aging/schedule

Engagement Channels:
• Periodic and ad-hoc meetings and interactions
• Periodic and surprise quality control and audit on suppliers
• Monthly Operation Review
• Quarterly Business Review
• Participation in suppliers’ Customer Satisfaction Survey

Sub-Group:
• Trade associations, and Roundtables

Frequency:
Annually, Quarterly, and Ongoing

Areas of Interest / Concerns:
• Volunteering projects
• Donations in kind and monetary
• Health, safety and environmental initiatives

Engagement Channels:
• Initiatives & partnerships with NGOs
• Institution/University internship programme
• Corporate volunteering programmes (Blood Donation, Orphanage Visit, Cleaning & Painting event)

Sub-Group:
• Local surrounding community, Local government, and Local charities

Frequency:
Ongoing

Areas of Interest / Concerns:
• Meeting of all required operating licenses and regulations
• Compliance of all requirements from local councils and authorities (e.g., DOSH & DOE)
• Anti-Bribery & Corruption
• Human rights
• Ensuring all employees are protected by all relevant labour laws and requirements
• Hiring of only legitimate foreign workers
• Fair treatment of all employees
• Availability of whistleblowing channels and protection for whistleblower

Engagement Channels:
• On-site inspection
• Safekeeping and availability of records for audit
• Correspondences with regulators
• Dialogues with regulators
• Participation of dialogues and forums

Sub-Group:
• Health and Safety Department, Department of Environment, and Labour Relations Department

Frequency:
Ongoing

Areas of Interest / Concerns:
• Financial reporting
• Transparency
• Business continuity

Engagement Channels:
• Media Release
• Media Interview
• Press Conference

Sub-Group:
• Social media, and Newspapers

Frequency:
Ongoing

Materiality Assessment

SAMEE performed a materiality assessment during the financial year ended 31 March 2022. The materiality assessment ensures that material matters are relevant and will remain relevant until the next materiality assessment. This will definitely enhance our approach in managing the sustainability risks and opportunities posed to our business and helps us in ensuring that we prioritise the issues that have the greatest impact on the economy, society and the environment.

In FY2022, we identified 16 material matters through a comprehensive materiality assessment, reflecting their utmost relevance to our business. To ensure ongoing relevance to our business, stakeholders and industry, we conducted a validation process involving a thorough internal review and discussion. The 14 material topics were presented to the Board of Directors, where each item underwent detailed consideration and sought the board’s approval for inclusion. The management has streamlined the material topics from 16 to 14 for FY2023. This strategic adjustment underscores the company’s commitment to aligning its reporting efforts with the most relevant and impactful issues for the reporting period.

The material topics are further categorised into sustainability themes as follows:
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Our Business Performance

1. Customer Satisfaction & Relationship
4. Product & Service Quality
7. Economic Performance
8. Supply Chain Management
9. Cybersecurity & IT Resource Management
10. Technology, Innovation & Development

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Our Environmental Management

6. Waste & Hazardous Materials Management
13. Climate Change & Environmental Issues
14. Energy Management

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Our People

2. Employee Well-Being Health & Safety
3. Ethics & Compliance
5. Labour Practices & Rights
11. Attracting, Developing, & Retaining Employees
12. Employee Learning & Development

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Our Top 14 Materials Topics

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