Governance & Sustainability

Sustainability Statement

As a diversified conglomerate, PPB Group Berhad (“PPB”) aspires to achieve excellence in sustainability by integrating sustainable practices into its business activities in line with the Group’s vision and core values.

The PPB Board (“the Board”) has oversight responsibility to deliver sustainable value to stakeholders through the principles, policies, objectives and strategies of PPB and its subsidiaries in Malaysia (“the Group”). To assist the Board in fulfilling its responsibilities, a Sustainability Steering Committee (“SSC”) was established in August 2017. The SSC is chaired by PPB’s Managing Director and comprises PPB’s Head of Corporate Affairs as Group Chief Sustainability Officer, PPB’s Department Heads and the Sustainability Officers of the various divisions. The SSC reports twice yearly to the Board and is responsible for:

Grid 01

Developing and driving the implementation of sustainability policies and strategies, plans and project budgets.

Grid 02

Reviewing and reporting on progress against sustainability strategies, targets, plans and budgets.

Grid 03

Developing an annual Sustainability Statement.

Grid 04

Identifying, communicating and promoting best sustainability practices in the Group.

About this statement

This is our fourth Sustainability Statement based on the Bursa Malaysia Securities Berhad Listing Requirements and sustainability parameters aligned to international reporting guidelines and frameworks, such as the Global Reporting Initiative (GRI).

During our first reporting process in 2016, a materiality matrix of issues was validated by our various divisions, combined into a consolidated matrix of issues relating to the activities of the Group and approved by the Board. To ensure that new developments within our businesses are taken into consideration, as well as to reflect wider changes to the sustainability agenda, we undertook a benchmark study and a review of the materiality assessment in 2019 which involved carrying out in-depth workshops for our key business divisions – flour and animal feed milling, cinemas, and bakery, to further improve disclosure and performance related to the relevant industries. Following the workshops and assessments, an updated materiality matrix with 22 prioritised issues was produced and targets were recommended. These were subsequently approved by the PPB Board and form the basis of an agreed set of key performance indicators (“KPIs”) which will be used for reporting on our sustainability performance.

Our Sustainability Statement describes our performance based on key non-financial metrics, highlights areas where our sustainability management and processes can be strengthened and provides a basis for us to continually improve our reporting to better meet our stakeholders’ expectations. We started by setting targets in 2016, and have worked towards the achievement of those targets, while enhancing our reporting along the way. The Group is committed to continual improvements in our sustainability reporting and going forward, will focus on the most material challenges identified and achieving set targets.

All our targets set for 2017 to 2019 have been met and an overview of our achievements and progress is presented below, along with our targets for 2020.

  • Reviewed Group materiality assessment and carried out benchmark study for key business divisions.
  • Flour and animal feed milling and cinemas divisions implemented applicable and practicable recommendations made in energy reduction plan.
  • Cinemas and property divisions implemented applicable and practicable recommendations made in water reduction plan.
  • Zero fatalities for all business divisions.
  • Adopted Group Sustainability Policy and Human Rights Policy.
  • Commissioned energy audit/ reduction plan for flour and animal feed milling and cinemas divisions.
  • Commissioned water footprint assessment/reduction plan for cinemas and property divisions.
  • Livestock farming division achieved 30.8% reduction in accidents.
  • GSC reduced its water consumption by 4.27%.
  • PPB Group Berhad included in the FTSE4Good Index Series.
  • Launched nutritional information for GSC’s hot foods.
  • Zero fatalities for all business divisions.
  • Established a Sustainability Steering Committee to drive policy implementation and strategy.
  • Established a CSR Task Force to develop a community development strategy.
  • Commissioned carbon footprint assessment for flour and animal feed milling and cinemas divisions.
  • GSC launched single-use plastic bottle recycling programme for its cinemas.
  • Livestock farming division achieved 31.6% reduction in accidents.
  • Zero fatalities for all business divisions.
2020 Targets Material Issues
Zero fatalities for all business divisions. Health & safety, Working environment, Employee welfare & satisfaction
Commence implementation of Group Human Rights Policy in our supply chain in stages. Health & safety, Working environment, Supply chain, Brand & reputation
Implement a Group Anti-Bribery and Corruption Policy and Framework including roll-out of anti-bribery and corruption awareness to employees throughout the Group and incorporation into staff induction process. Anti-Corruption, Brand & reputation, Legal/regulatory compliance
2020 Targets Material Issues
Flour & animal feed division  
  • Energy use intensity to not exceed the kWh/MT set for the respective flour and animal feed operations in the division.
Climate change, Energy
  • Obtain 100% FSSC22000 certification for all our flour mills.
Product quality & safety
Livestock farming division  
  • Energy use intensity to achieve at least 16.21 parent stock/kWh for breeder farm and at least 77.72 commercial layers/kWh for layer farm.
Climate change, Energy
  • Water use intensity to achieve at least 725 parent stock/m3 for breeder farm and at least 4,400 commercial layers/m3 for layer farm.
Climate change
  • Complete conversion of fluorescent to LED bulbs at all its chicken houses.
Climate change, Energy
2020 Targets Material Issues
Cinemas division  
  • Energy use intensity to not exceed 107,453 kWh/screen per year.
  • To progressively convert remaining cinemas to full LED lighting.
Climate change, Energy
  • Obtain HACCP certification for 7 cinema concessions.
Product quality & safety
  • Establish food product traceability list for items that are prepared in-house for cinema concessions.
Product quality & safety, Supply chain
  • Convert all existing packaging for cinema concessions from plastics to biodegradable.
Sustainable packaging, Waste, Legal/ regulatory compliance
2020 Targets Material Issues
  • Energy use and water use intensities to not exceed 7.28 kWh psf and 0.32 m3 psf respectively for all buildings under management and office spaces.
Climate change, Energy
  • Obtain Malaysian Sustainable Palm Oil (MSPO) certification for the Group’s oil palm entities.
Legal/regulatory compliance

Energy use intensity is calculated by dividing absolute energy use over an organisation-specific metric.
Water use intensity is calculated by dividing absolute water use over an organisation-specific metric.

In the following sections, we report on our performance in greater detail based on the four pillars of our approach to sustainability – environmental impact, working environment, marketplace engagement and community investment.

Our sustainability reporting covers only our Malaysian operations from our main segments – Grains and agribusiness, Consumer products, Film exhibition and distribution, Environmental engineering and utilities, and Property.


  •  Environmental Impact
  • Environmental Impact

We recognise the importance of environmental protection for the long term sustainability of our businesses. Our materiality assessment in 2016 showed that the most immediate issues within our own operations relate to resource use and the impact of this use – particularly water and energy, and the waste generated from our operations. We mainly operate in industrialised zones and urban areas, primarily in the Klang Valley, Malaysia and our activities have relatively little direct impact on biodiversity. Our most significant action points therefore target the reduction of our climate impacts through minimising our carbon footprint and energy consumption, reducing our water impact and improving waste management.

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  • Working Environment
  • Working Environment

One of the major sustainability issues faced by all industry sectors in Malaysia today is the recruitment and retention of employees – from unskilled workers to highly skilled professionals. Our approach to this challenge includes focusing on creating and maintaining safe and enjoyable workplaces, and an engaging and supportive culture to empower talented individuals to succeed.

The Group employs slightly more than 6,000 people, of whom two thirds are permanent full-time employees. Our cinemas division accounts for the highest proportion of workers (38% of the Group’s total workforce), of which more than half are on a part-time basis.

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  • Marketplace Engagement
  • Marketplace Engagement

Marketplace impacts, including governance and ethics, are of high material importance to both the Group and its stakeholders.

Code of Conduct and Ethics
The Group is committed to conducting its businesses in compliance with local laws and regulations and with utmost integrity, transparency and accountability. A code of conduct and ethics, which is included in both our Group employee handbooks and on our website — — sets out the standards of conduct and personal behaviour our directors and employees are required to observe to ensure that the Group’s commitment is upheld.

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  • Community Investment
  • Community Investment

CSR Task Force
We see ourselves as a force for good in the communities where we operate. Local wealth creation is identified as an important material issue for the Group and we are committed to balancing our business needs with support for community growth and well-being. In this, we have taken a more strategic approach to planning and delivering community investment programmes that are closely linked to our businesses and areas of operation.

Our Sustainability Steering Committee (“SSC”) is responsible for overseeing the Group’s community investments. To assist the SSC in devising strategies and reviewing, managing, implementing and tracking our community investment programmes, a CSR Task Force comprising representatives from PPB’s Head Office and the subsidiaries was set up in 2017. Our Group community investment strategy which comprises three pillars – Social, Environmental, and Arts and Culture – supports youth education and development, living skills and standards enhancement, environmental awareness and health activities, amongst others. In 2019, the SSC and CSR Task Force each met twice. For the same period, the Group spent a total of RM1,006,272/- on community investment/CSR projects, of which RM541,770/- were contributions to registered NGOs. The various divisions under the Group also jointly contributed a total of RM20 million towards the establishment of the PPB50 Fund to alleviate poverty through education by carrying out education-related projects. During the same year, the PPB-KF Welfare Fund for Perlis and PPB50 Fund disbursed a combined total of RM1,030,029/-.

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Additional notes :

  1. The Group used a total of 21,019 MT of palm oil in 2019, of which 1.24% is certified palm oil. Our animal feed milling operations which uses crude palm oil (“CPO”) and palm kernel expeller, accounts for more than 91% of our total combined usage. The balance is used by our bakery, cinemas and contract manufacturing divisions. In 2020, we will explore the feasibility of converting some of our CPO to RSPO certified palm oil.
  2. Full-time staff voluntary turnover rate at Group level in 2019 is 19.7%.
  3. The Group recorded a combined total of 28,929 training hours on employee development to enhance knowledge and skills in 2019, averaging 6.15 hours per employee.
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