We recognise that strong and good governance is fundamental to achieving long-term sustainability. At Tan Chong, we are committed to the highest standards of corporate governance and the achievement of long-term sustainable value for our shareholders. The Board of Directors is responsible for strategic direction of the Group and the implementation of policies to ensure good corporate governance.
Sustainability Governance
Structure And Responsibilities
Board Of Directors
- Ultimately responsible for overseeing the Group’s sustainability journey, including EESG integration and execution, ensuring accountability and transparency of the Group’s ethical and social responsibility footprints.
- Reviews updates on material issues, developments and progress reports on a quarterly basis to monitor the achievement of the Group’s sustainability targets.
Board Risk Management And Sustainability Committee ("BRMSC")
- Comprising six Board members, entrusted by the Board with specific terms of reference, to assist in overseeing the EESG agenda, including recommending action plans for the Board’s consideration.
Risk Management and Sustainability Committee ("RMSC")
- Provides strategic direction, support and oversight for sustainability strategies, targets and initiatives, ensuring alignment and effectiveness through regular reviews and monitoring.
- Coordinates and communicates sustainability initiatives to promote awareness of the Group’s efforts both internally and externally.
- Drives performance through target setting, Key Performance Indicators (“KPI”) measurement, stakeholder engagement and reports to the BRMSC on sustainability matters and trends
Sustainability Working Committee (“SWC”) & Group Risk Management And Sustainability Department (“GRMS”)
- The Chairman of RMSC empowers SWC and GRMS to perform materiality assessment for submission to RMSC and BRMSC for approval. They also review sustainability matters annually, proposing changes and reassessing materiality as needed.
- Implement sustainability strategies, coordinate and communicate initiatives to drive the Group’s sustainability efforts and promote awareness both internally and externally.
- Facilitate and guide BUs on sustainability directives from the Chairman of RMSC, and monitor sustainability KPIs and Bursa Malaysia’s common indicators reporting to RMSC and BRMSC.
Business Units And Functional Support Groups
- Owners of sustainability initiatives, data and implementations.
- Determine and track performance metrics and targets by identifying, assessing and implementing planned sustainability initiatives and programmes.
- Review the effectiveness of relevant policies based on their materiality, including the initiatives undertaken.
Good Corporate Governance
The Group’s Governance Framework is supported by the Group’s policies, in particularly the following, when we engage with our stakeholders. We also conduct awareness programmes on Anti-Bribery and Anti-Corruption Policy and put in place whistleblowing mechanism for employees, key suppliers and vendors. The Corruption Risk Assessment Framework was formalised to help business units evaluate and address potential corruption risks, guided by the Risk-Based Anti-Corruption Due Diligence Guidelines when conducting due diligence on both existing and newly onboarded business partners in our supply chain.
Charter And Policies
Policies
Information Security
We embrace a robust and effective information technology governance system and framework to minimise/mitigate cybersecurity threats, ensure better data protection and business continuity.
Our Approach
- Firewalls, endpoint threat detection systems, network monitoring, etc
- Mandatory cybersecurity awareness training and annual assessment for all employees
Supply Chain Management
We aspire to incorporate sustainability into our supply chain practices with the aim of reducing our environmental footprint and ensuing conformance with related regulatory requirements.
Our Approach
- Support local suppliers especially the small and midsize enterprises and local communities to stimulate local economy.
- Schedule regular supplier performance evaluations to assess and ensure the quality of products and services, while strengthening supplier relationships
- Optimise supply chain processes (planning, sourcing, manufacturing, delivery and returns) to reduce costs, improve efficiency, and ensure timely delivery
- To gain a competitive advantage by minimising waste, reducing costs, and improving customer satisfaction through effective supply chain management
Business Continuity And Long-Term
Value Creation
We are steadfast in our commitment to providing long-term value creation to our shareholders via strategic initiatives to stimulate financial stability and revenue growth.
Our Approach
- Continuously map out the long-term strategic directions to attract investors and drive long-term return growth for all stakeholders
- Optimise asset utilisation and capital allocation to achieve better ROA and maximize shareholders’ values