NCB Holdings Sustainability Report 9.9 MB

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SUSTAINABILITY REPORT
2014/2015
For A Better Tomorrow
ACKNOWLEDGEMENTS
Special acknowledgements go to our Sustainability Council, comprising the Heads of
Departments from Northport (Malaysia) Bhd and Kontena Nasional Berhad, for providing
useful insights and guidance in the drafting of NCB Holdings Bhd.’s inaugural Sustainability
Report. We would also like to acknowledge to all the persons in our Group and Subsidiaries
who helped in gathering and providing the required information and data.
Figure 1: NCB Holdings' Sustainability Council & Committee members
Image cover: Courtesy of Nuttakit at FreeDigitalPhotos.net
Table of Contents
FOREWORD ............................................................................................................................................. 6
1
GROUP MANAGING DIRECTOR’S MESSAGE.................................................................................... 7
2
IN THIS REPORT ............................................................................................................................. 10
3
ABOUT NCB HOLDINGS BHD ......................................................................................................... 11
4
3.1
Organisation Profile .............................................................................................................. 12
3.2
Vision & Mission.................................................................................................................... 13
CORPORATE GOVERNANCE........................................................................................................... 14
4.1
Corporate Governance.......................................................................................................... 16
4.2
Diversity Policy & Practice .................................................................................................... 16
4.3
Board Effectiveness Assessment........................................................................................... 17
4.4
Corporate Integrity Pledge (CIP) ........................................................................................... 18
4.5
Whistle Blowing .................................................................................................................... 18
4.6
Review of Policies, Procedures and Guidelines .................................................................... 19
4.7
Risk Management ................................................................................................................. 19
4.8
Risk Governance Structure.................................................................................................... 20
4.9
Monitoring and Review ......................................................................................................... 20
5
MATERIAL ASPECTS ANALYSIS ...................................................................................................... 22
6
ECONOMY ..................................................................................................................................... 26
6.1
Our Economic Performance .................................................................................................. 26
6.1.1
Direct Economic Impacts .............................................................................................. 26
6.1.2
Indirect Economic Impacts ............................................................................................ 28
6.1.3
Five-year Business plan ................................................................................................. 32
6.2
Our Market Presence ............................................................................................................ 33
6.2.1
Products & Services....................................................................................................... 33
6.2.2
Customer Communication & Feedback ........................................................................ 35
7
8
6.2.3
Supply Chain & Procurement Practices ........................................................................ 36
6.2.4
Anti-competitive Behaviour & Compliance .................................................................. 36
PEOPLE .......................................................................................................................................... 38
7.1
Our Human Capital................................................................................................................ 39
7.2
Dynamics of Change in our Workforce ................................................................................. 41
7.3
Diversity is Key to Success..................................................................................................... 42
7.4
Remuneration ....................................................................................................................... 43
7.5
Benefits ................................................................................................................................. 45
7.6
Growing Together ................................................................................................................. 46
7.7
Capacity Building and Development ..................................................................................... 50
7.8
Health, Safety and Environment (HSE) ................................................................................. 54
7.8.1
HSE Management.......................................................................................................... 54
7.8.2
HIV/AIDD Policy Statement in NMB .............................................................................. 56
7.8.3
Drug, alcohol and illegal substances abuses policy ...................................................... 56
7.8.4
HSE Performance .......................................................................................................... 65
ENVIRONMENT ............................................................................................................................. 66
8.1
Our Environmental Commitment ......................................................................................... 66
8.1.1
Environmental Risk Management ................................................................................. 67
8.1.2
Environmental Grievance Mechanism .......................................................................... 68
8.2
Monitoring our Environmental Impacts ............................................................................... 68
8.2.1
Air Monitoring ............................................................................................................... 68
8.2.2
Marine Water Quality ................................................................................................... 69
8.2.3
Spillage .......................................................................................................................... 71
8.3
Managing our Energy Resources Wisely ............................................................................... 71
8.3.1
Monitoring our Electricity & Energy Consumption ....................................................... 72
8.3.2
Energy Saving Activities ................................................................................................ 73
8.4
Reducing our Carbon Footprint ............................................................................................ 74
8.4.1
8.5
9
Emission Reduction Actions .......................................................................................... 77
Effluents & Waste ................................................................................................................. 78
8.5.1
Non-Hazardous Waste .................................................................................................. 79
8.5.2
Scheduled Waste........................................................................................................... 79
8.5.3
Effluents ........................................................................................................................ 80
SOCIAL ........................................................................................................................................... 82
9.1
Stakeholders’ Engagement ................................................................................................... 82
9.2
Our Community Engagement: Corporate Social responsibility ............................................ 90
9.2.1
Human Capital............................................................................................................... 90
9.2.2
Social ............................................................................................................................. 93
9.2.3
Environment.................................................................................................................. 99
9.2.4
Economy...................................................................................................................... 100
THE WAY FORWARD ........................................................................................................................... 102
APPENDIX A: PERFORMANCE DATA .................................................................................................... 103
APPENDIX B: GLOSSARY ...................................................................................................................... 121
APPENDIX C: GRI CONTENT INDEX (In accordance with “Core” requirements) ................................. 124
FOREWORD
NCB Holdings Bhd. has, through our subsidiaries Northport (Malaysia) Bhd and Kontena
Nasional Berhad, pioneered amongst the earliest modern port and container operations and
logistics services in Malaysia. The many business and growth challenges along the way have
led us to where we are today. The Group believes that the sustainability path will ensure a
better tomorrow for the Group and its subsidiaries, and this is outlined in our corporate
policies. Our sustainability efforts will foster the Group’s continuous growth and
performance in tandem with changes in world, regional and local marketplaces, and
stakeholders’ needs, climate change, natural resources and technological advances. In
actuality, over the last decade the Group had already embarked on sustainability initiatives
simultaneously with initial Corporate Social Responsibility (CSR) activities involving our
various stakeholders. As a leader in port and logistics operations in Malaysia, NCB Holdings
Bhd. supports Bursa Malaysia’s call for more transparency, accountability and sustainable
performance in public-listed companies. NCB Holdings Bhd. has thus taken the initiative to
prepare this, our first, Sustainability Report following the principles of the Global Reporting
Initiative (GRI), a declaration of our sustainability journey for our better tomorrow.
NCB Holdings Bhd. Sustainability Report 2014-2015
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1
GROUP MANAGING DIRECTOR’S MESSAGE
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It gives me great pleasure in presenting our inaugural Sustainability Report for FY2014/2015,
which is a demonstration of our commitment towards Sustainability. We greatly believe that
Sustainability plays an essential role in our business operations and hence our Sustainability
approach has been holistic in nature.
Since its establishment in 2000 NCB Holdings Bhd. (NCB) has been successfully shaping the
future of its port and logistics operations into one of the prime movers of Malaysia’s
economic development. We have and are continuously re-engineering our operational
structures in line with market demands, while at the same time improving our overall
operational efficiency hence productivity.
We have made huge investments in infrastructure expansion and upgrading projects like the
new Wharf 8A in the Port which commenced operations in December 2013. This has been
done to allow improvement in handling capability towards enhancing shipping connectivity
and this capacity building will continue with the upgrading of Wharf 8 at NMB, which is
scheduled for completion in 2017. We have also revamped and realigned our logistics
operations at Kontena Nasional Berhad (KNB) to re-focus on its core activity of providing
superior haulage associated services towards improved profitability. All these efforts are
undertaken with the view to further strengthening our commitment to meet the challenges
of Malaysia becoming a developed nation by 2020.
In so doing we have ensured Sustainability elements will become top priority in our
day-to-day operations mindful of the overall objective of delivering value to our stake
holders.
All these efforts will not be possible without the total dedication and involvement of our
human capital. We have been and will continue to equip and train our people with the
necessary skills and productivity initiatives, like ‘Change Begins with Me’ (CBM) and
programmes under the ‘Northport International Centre of Excellence (NICE)’ initiatives to
drive towards higher productivity and efficiency. We initiated open communications
platforms for the staff to provide feedbacks.
We are also incorporating performance improvement initiatives in the operations through
innovation, using management tools such as Lean Six Sigma and CAP. We have established
working networks with institutions of higher learning, government agencies such as Ministry
of Housing and Ministry of Youth and Sports, enhancing productivity towards talent
development.
Our Sustainability practices are made visible through various Sustainability programmes and
initiatives, which ultimately will improve our performance and overall approach to
Sustainability. We aim for Sustainability outcomes by balancing the various quality,
environmental, safety and health systems that we currently have in place. We are also
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committed to a proactive approach towards maintaining the highest occupational, safety
and health standards as we strive to mitigate risks in our operations.
At the top of our Sustainability priority list are climate change and carbon emission issues,
where we have already embarked on various substantive measures to reduce our overall
environmental footprint, such as carbon emissions reduction and the wider implementation
of e-RTG and LED lighting, amongst others. Our continuous stakeholders’ engagement
enable us to enhance the quality of our services and adapt to a changing market in a timely
fashion manner.
While we have made initial progress in our Sustainability journey, we are aware that there is
still much to be done. We will continue to integrate Sustainability into our business strategy
and strengthen our contribution to the future as we play our part in nation building.
We are thus gearing towards becoming a Green Port by conscious efforts in gradually
reducing our carbon footprint intensity as we expand locally and regionally.
To steer these Sustainability efforts I have appointed a Sustainability Council, comprising
Heads of Departments from NMB and KNB. I appreciate that they have given their time and
efforts to spearhead and oversee the sustainable development initiatives as described in
this Sustainability Report, and subsequently playing a strong role in strategizing and
implementing future integrated Sustainability Programmes and Projects.
Finally, I would like to put on record my heartfelt thanks and appreciation to our extended
family of dedicated employees, customers, business partners and associates and vendors for
their invaluable contributions and support along our Sustainability journey.
Abi Sofian Bin Abdul Hamid
Group Managing Director
30th November 2015
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2
IN THIS REPORT
This is the inaugural Sustainability Report of NCB Holdings Bhd (NCB) and is supplementary
to our 2014 Annual Report. This Sustainability Report is prepared according to the Global
Reporting Initiative (GRI) G4 Guidelines and incorporates those material issues that are
currently thematically applicable. It is prepared “in accordance” with the “Core” option.
As we are still developing and enhancing our data and information collection system there
may be instances where the G4 Guidelines may not be fully applied in this report for the
reporting period.
Scope
In this inaugural Sustainability Report our sustainability performance, including
achievements and challenges, over the period 1 January 2014 to 30 June 2015, are reported,
together with highlights of related performances in the recent years that have brought us to
where we are currently in our sustainability journey and status.
Unless otherwise stated, the information within this report refers to NCB Holdings Bhd. and
its subsidiaries. Changes in our corporate organisation structure over the reporting period
are indicated where relevant in this report.
Feedback
We welcome your feedback on this report.
Kindly contact us at:
Strategic Communications
NCB Holdings Bhd.
Jalan Pelabuhan, North Port
42000 Port Klang
Tel : +603-31698888
Fax : +603-31698633
Email: [email protected]
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3
ABOUT NCB HOLDINGS BHD
NCB Holdings Bhd. (NCB) was formed in January 1999 and was formerly known as Northport
Corporation Berhad. Following a successful restructuring arrangement in August 2000
involving Klang Container Terminal Bhd (KCT), Klang Port Management Sdn Bhd (KPM) and
Kontena Nasional Berhad (KNB), the company changed its name from Northport
Corporation Berhad to NCB Holdings Bhd. in 2001 and became an investment holding
company.
Meanwhile KCT was renamed NMB and together with KNB became subsidiaries of NCB. KPM
became subsidiary of NMB. KPM later acquired PKDP (former name of Northport Distripark
Sdn Bhd), which was then renamed as NDSB and became 100% owned.
Figure 2: History of formation of NCB Holdings Bhd.
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3.1 Organisation Profile
NCB Holdings Bhd. is a public listed government-linked company (GLC) whose stocks are
quoted on the Bursa Saham Malaysia. The major shareholder is Permodalan Nasional
Berhad (PNB) and PNB-Managed Funds that own 53.43% of stocks followed by MMC
Ventures Sdn Berhad that owns 30.13% as of 30th June 2015. The rest are owned by
minority shareholders.
The primary subsidiaries under NCB Holdings Bhd. are Northport (Malaysia) Bhd (NMB)
which is involved in port operations business and Kontena Nasional Berhad which operates
as our haulage and logistics business entity. Our secondary subsidiaries in port operations
are Klang Port Management Sdn Bhd and Northport Distripark Sdn Bhd whilst the active
entities engaged in logistics operations are Kontena Nasional Global Logistics Sdn Bhd, KN
Global Transport Sdn Berhad. P.T. Ritra Konnas Freight Centre is an associate company
operating in Jakarta. The company was formed with equal equity with two other Indonesian
companies, namely P.T. Big Bird and P.T. Cargo Indonesia Ritra. The other logistics entities,
i.e. Konnas Prolink Sendirian Berhad, KN Maritime Services Sdn Bhd and KN Loginfra Sdn
Berhad are however dormant currently.
Figure 3: Current organisation profile
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3.2 Vision & Mission
VISION
To be the Global Investment Holding Company of choice for the Port
Management and Integrated Logistics.
MISSION
 Creating and maximizing shareholder value as an active investor
successful port and integrated logistics enterprise
 Shaping the strategic direction of companies under its portfolio
 Promoting Northport as a truly competitive port of choice
 Establishing mutual rewarding international alliances and
partnerships
 Delivering innovation, increasing efficiency and continually
improving the service level of its companies to exceed
customers’ expectations
 Creating a conducive working environment and continuously
develop it human capital
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4
CORPORATE GOVERNANCE
The Group’s Board of Directors, as of June 2015, was composed of:
1. Tun Ahmad Sarji bin Abdul Hamid,
Chairman
7. Dato’ Sri Che Khalib bin Mohamad Noh,
Non-Independent Non-Executive Director
2. Tuan Haji Abi Sofian bin Abdul Hamid,
8. Dato’ Zuraidah binti Atan,
3. En. Nik Mustapha bin Nik Mohamed,
Independent Non-Executive Director
9. Puan Yip Jian Lee,
4. Datuk Ramlan bin Abdul Rashid,
10. Dato’ Seri Dr. Haji Arshad bin Haji
Hashim,
5. Lt. Gen. (R) Datuk Abdul Aziz bin Hasan,
11. Dato' Idris bin Kechot,
6. Dato’ Halipah binti Esa,
Non-Independent
Non-Executive
Director
12. Encik John Selvaraj James,
Group Chief Financial Officer / Company
Secretary
Figure 4: NCB Holdings’ Board of Directors as of 30th June 2015
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Full details on the current Board of Directors for NCB, KNB and NMB are available in NCB’s
Annual Report 2014.
At the helm of NCB Holdings Bhd. to lead the Group in good corporate governance
practices are, as of 30th June 2015:
1. Tuan Haji Abi Sofian bin Abdul Hamid
6. Ravindran Raman Kutty
Head, Group Strategic Communications
2. John Selvaraj James
Group Chief Financial Officer
Company Secretary
7. Ahmad Mansor Sa bin Abu Hassan
Head, Project Management Office
3. Yazirruddin bin Md. Som
Head, Group Internal Audit
8. Noorsila Wati binti Raja Affendi
Head, Group Risk Management
4. Mohd Faiz Hakim bin Husain
Head, Corporate Planning and Strategy
9. Adnan bin Yacoob
Manager, Legal and Compliance
5. Syed Zulbakri bin Syed Jemal Shah
Head, Group Human Capital
Figure 5: NCB Holdings Management group
A Sustainability Council with representatives from both subsidiaries has been established to
lead and review the sustainability aspects of the Group and report to the Group’s Chairman.
Members of the Council are mentioned in the “Acknowledgement” section of this report,
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4.1 Corporate Governance
NCB subscribes to the principles and recommendations of the Securities Commission’s
Malaysian Code on Corporate Governance 2012 for competitiveness, growth and enhancing
shareholders value through sustainable business.
The Board considers it an on-going exercise to
enhance and improve the Group’s corporate
governance standards under applicable laws and
regulations.
Figure 6: Objectives of the yearly Board
assessment
The Board Charter spells out the role, function,
composition, operation and processes of the
Board. As the source of primary reference and
induction for prospective Board members and
management, it assists in the assessment of the
Board’s collective performance as well as that of
individual Directors. This Charter is regularly
reviewed for incorporation of updates to laws
and regulations. The latest Board review of the
Charter was held on 22 April 2014.
The
Group’s
strategies
promote
sustainability,
emphasizing
the
environmental, social and governance
(“ESG”) aspects of the Group’s business. The
Group is committed to Corporate Social
Responsibility (“CSR”) and this is reflected in
its values and belief that we are part of the
community and we share the same
environment work place, as well as the same
concern towards social integration and well-being, generally benefitting the market place.
4.2 Diversity Policy & Practice
We recognise that diversity in our Board composition is critical in ensuring its effectiveness
and good corporate governance. Our Board at Group level, the Boards at subsidiary level, as
well as among key management includes representation from both genders. We ensure that
all persons, regardless of age, gender, ethnicity, cultural background or other personal
factors, but with appropriate experience and qualifications, will be considered fairly during
recruitment, promotion, remuneration and training. We are also committed to workplace
diversity with value and respect for our differences, and ensuring fairness, accessibility,
flexibility and inclusivity, and freedom from discrimination.
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The Group implements its policies and practices via 5 principal Board Committees, namely:





Nomination Committee (NC)
Remuneration Committee (RC)
Finance and Investments Committee (FIC)
Audit Committee (AC)
Risk Management Committee (RMC)
4.3 Board Effectiveness Assessment
A yearly Board Effectiveness Assessment is held to assess and evaluate the Board of
Directors, Board Committees and individual Directors.
Figure 7: Board's self-assessment criteria
In 2014, the Board Committees were assessed based on their roles and scope, frequency
and length of meetings, supply of sufficient and timely information to the Board and also
their overall effectiveness and efficiency in discharging their function. During the year the
Board of Directors, in accordance with Para 15.20 of the MMLR, they also reviewed the term
of office and performance of the Audit Committee (“AC”) and each of the members and was
satisfied that the Audit Committee and members have carried out their duties in accordance
with their terms of reference. The individual Directors each undertook self-assessment of
their individual performance based on the criteria of character, experience, integrity,
competence and time in order to discharge their respective roles as Directors. They had also
undergone training during the financial year ended 31 December 2014 and up to June 2015
in various training programmes as considered useful for them to discharge their
responsibilities.
In place also are review and approval processes and procedures for Related Party
Transactions (RPT). This is to ensure that the transaction prices, terms and conditions of the
agreement and the quality of the products/services are comparable with those prevailing in
the market and meet industry standards.
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4.4 Corporate Integrity Pledge (CIP)
With the belief that high corporate integrity is more sustainable in the long term with higher
value created for our shareholders, NCB signed the Corporate Integrity Pledge (CIP) with
Malaysian Anti-Corruption Commission (MACC) on 22 December 2014 committing its
companies to work towards creating a business environment that is fair, transparent and
free from corruption.
As with any other business, potential risks of corruption have been identified. Over the
reporting period, one case was reported and is still under trial. No other corruption cases
were reported during the reporting period.
Figure 8: Corporate Integrity Pledge (CIP) Signing Ceremony - Northport
4.5 Whistle Blowing
We are committed to maintaining the highest standards of ethical conduct within the
Group. Thus the Board formalised a whistle-blowing policy, Code of Ethics and Code of
Conduct, adopted at Group level and at Subsidiary level, whereby the whistle-blower can
report to the Head of Group Internal Audit and/or Audit Committee Chairman.
The Code of Ethics and Code of Conduct were developed to improve employees’
commitment towards corporate integrity. Whistleblowing, as part of CIP, is aimed at
generating feedbacks on unethical behaviours and actions in the organisation. These are
rolled out through road shows, etc. Other policies include Anti-Bribery and Corruption Policy
(ABC Policy).
The Board and the Management maintain confidentiality of employees’ and third parties’
identities to remove the risk to any form of victimisation or retaliation from their superiors
or Management when such reporting is done in good faith. All concerns raised are
investigated.
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4.6 Review of Policies, Procedures and Guidelines
The Board conducts an annual review of its strategic business planning, budgeting and
forecasting of revenue and expenses in line with the policies and guidelines defined by the
Board at Group level. Each subsidiary prepares and submits an annual budget for the
approval at their respective Boards, which is ultimately referred to the Board at Group level
for its approval upon review and recommendations of the Finance and Infrastructure
Committee (FIC). The Board thus monitors the performance of the subsidiaries and their
business units by reviewing the results of the subsidiaries in comparison with their budget
as reported once every two months at Group Board Meetings, based on the approved Key
Performance Indicators (KPIs). Any material variances are analysed and appropriate
measures are taken in a timely manner. The Board is thus provided with timely information
for decision making with regard to continuity of the Group’s investments based on the
performance of the subsidiary companies.
4.7 Risk Management
Risk management is an integral part of the Group’s business operations. The Enterprise Risk
Management (“ERM”) Policy and Framework systematically identifies, analyses, measures,
monitors and reports on the risks that may affect the achievement of its business objectives.
Figure 9: NCB Holdings Bhd.'s objectives
The Group’s ERM Policy and Framework is based on the principles and concepts outlined in
ISO 31000.
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4.8 Risk Governance Structure
The Group’s governance structure in respect of ERM is set out below.
Figure 10: Risk governance structure as of time of publication
The Internal Audit department independently, objectively and regularly, on a timely basis,




Reviews key processes,
Checks compliance with policies/procedures,
Evaluates the adequacy and effectiveness of internal control, risk management and
governance processes established by Management and/or the Board within the
Group.
Highlights significant findings and corrective measures in respect of any noncompliance to Senior Management and the Audit Committee
4.9 Monitoring and Review
The effectiveness of the system of risk management and internal controls are monitored
and reviewed through the following processes:
1. Management Assurance to the Board at Group level from the Group Managing Director
and Group Chief Financial Officer, based on the representations received from the
respective Boards at subsidiary level that the Group’s risk management framework and
internal control system are operating adequately and effectively in all material respects
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2. Internal Audit in their quarterly report to the Audit Committee highlights significant issues
and exceptions identified during the course of their review on processes and controls
compliance, risk management and governance.
3. The Group Risk Management department reports to the Board through the Risk
Management Committee on the risk profile of the Group and the progress of action plans to
manage and mitigate the risks.
Figure 11: Evaluation of Risk Management and Control as of October 2015
Management has taken the necessary actions to address weaknesses identified for the
period under review. The Board and Management will continue to monitor the effectiveness
and take measures to strengthen the risk management and internal control environment of
the Group and Subsidiaries.
For the financial year 2014 the Board is satisfied with the adequacy and effectiveness of the
Group’s system of risk management and internal control to safeguard the interest of
shareholders.
Further details on Corporate Governance are available in NCB’s Annual Report 2014.
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5
MATERIAL ASPECTS ANALYSIS
The content of the report was defined through meetings and discussion with Corporate
Communications of NCB Holdings Bhd., considering the requirements from GRI G4
standards, the past and current sustainability actions led by the Group and future
sustainability objectives and priority. It was further refined after the results of the
materiality analysis to include all material aspects, where possible.
The materiality analysis was performed during three rounds, each of them involving internal
stakeholders for the Group.
The materiality analysis was performed during three rounds, each of them involving internal
stakeholders for the Group.
The first analysis was provided by NCB Holdings’ representatives, who screened the aspects
that were deemed material for the Group. Subsequently, two rounds of materiality analysis
were organised with the newly appointed NCB Sustainability Council, comprising Heads of
Departments of the two subsidiaries, Kontena Nasional Berhad (KNB) and Northport
(Malaysia) Bhd (NMB). At the beginning of each session, the consultants provided the
definition of materiality and explained the criteria that had to be considered for the
materiality analysis.
The materiality was assessed based on:

Whether the aspect impacted the organisation’s business and operations

Whether the organisation’s business and operations impacted on this aspect

Whether the aspect was inherent to the organisation’s practices

Whether the aspect was part of the organisation’s mission and values.
The results obtained from the sessions with the subsidiaries where then reviewed with the
Group to ensure it is consistent with the Group’s operations, procedures and sustainability
considerations.
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The results of the materiality analysis are described in the figure below. All aspects that
were identified were material for both subsidiaries.
Figure 12: NCB Holdings' Identified Material Aspects
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The material aspects which are important outside the organisation are listed below, and
related to the external stakeholders’ groups concerned are listed below.
Material aspect
External stakeholders for which they are material
Economic performance
General economy, clients, shareholders and investors
Environment
Local communities, NGOs, society at large
Market presence
Clients, supply chain, investors, shareholders
Economic indirect impacts
Society at large, supply chain, employees’ families
Emissions
Effluents and waste
Local communities, NGOs, society at large, waste
contractors
Compliance
Local government and authorities
Supplier environmental
assessement
Supply chain
Environmental grievance
mechanisms
Employment
Local/regional communities
Occupational health & safety
Tenants, port users, road users, contractors
Diversity & equal opportunities
Supplier assessment for labour
practices
Supply chain
Labour practices grievance
mechanisms
Local authorities, unions
Non-discrimination
Local communities, unions, NGOs
Freedom of associations &
collective bargaining
Unions, NGOs, shareholders and investors
Security practice
Contractors, ports tenants and users
Local communities
Local communities, NGOs
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Material aspect
External stakeholders for which they are material
Anti-corruption
Investors, shareholders, government and local authorities
Public policy
Anti-competitive behaviour
Investors, shareholders, government and local
authorities, market actors
Compliance
Supplier assessment for
impacts on society
Grievance mechanisms for
impact on society
Supply chain
Customer health & Safety
Customers
Product and services labelling
Customers
Marketing & communications
Customers
Customer privacy
Customers
Compliance
Customers, authorities
All external stakeholders
Table 1: Aspects which are material to external stakeholders
In the following chapters we share our Sustainability-related commitments and practices
under our 4 pillars of sustainability, namely economy, environment, people and social.
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6
ECONOMY
In this chapter we highlight our direct and indirect economic impacts
over the reporting period 1st Jan 2014 to 30 June 2015.Ultimately
we focus on our market place, which is where we engage with our
customers and supply chain to provide quality sustainable services
with long-term relationship building and mutual growth.
6.1 Our Economic Performance
6.1.1
Direct Economic Impacts
Notwithstanding the slowdown in the world economy that has negatively impacted
Malaysian economy, NCB continued to show positive results from our subsidiaries’
operations. For the year ended 31st December 2014 it recorded a revenue of RM 830.9
million and profit before tax of RM 18.6 million, down by 9.6% and 80.2% respectively
compared to same period in 2013. The decline was mainly due to lower container
throughput by 10.63% as well as lower transhipment volume at our port operations
subsidiary, NMB. Conventional cargo volume was also down by 15.8% comparative to
2013’s volume and again due to the global economic slowdown that affected the import
and export of commodities. The sharp decline in profits was also due to drastic measures
taken at our logistics operations subsidiary, KNB when it exited the warehousing contracts,
conventional and poultry trucking, as well as warehouse operation and management
businesses. These measures contributed positively towards substantial costs savings as well
as lower loss before-tax of 21.7% to the Group.
The direct financial impact of the economic slowdown also showed itself in a slight decline
in:
i. Return on assets ratio of 0.026 in 2013 to 0.012 in 2014
ii. Return on equity ratio of 0.037 in 2013 to 0.020 in 2014.
iii. Quick ratio is still strong at 1.39:1.0 as at 31 December 2014.
Nonetheless for the first half year ending 30th June 2015 profit before tax improved
strongly to RM 29.9 million or 93.4% compared to same period last year. This vast
improvement is achieved in spite of a drop of 5.2% in revenue. Expenditure also recorded a
respectable drop of 8% relative to same period last year mainly contributed by a 21.2% cost
savings in KNB through its continued exit from non-profitable business streams. Apart from
that, positive contribution came also from lower fuel and staff costs as well as lower
outsourced service provider costs.
Page 26 of 132
NMB benefited from development grants under facilitation fund and tax relief over the
reporting period. The investment Tax Allowance represented additional 60% of qualifying
Capital Expenditure incurred and RM85 million were received in 2015 under facilitation fund
for completed works associated with Wharf 8A project. KNB received from the government
RM 992,952 under the form of fuel subsidies. In terms of ties with political parties, the
Group does not provide political contributions.
As for the equity, the Malaysian Ministry of Finance has one golden share in NMB.
Figure 13: Group's revenue 2010-2015
Figure 14: Group's profit before tax 2010-2015
Page 27 of 132
Figure 15: Group's capitalisation 2010-2015
During the year under review, KNB had made major adjustments in its business model with
the view to return to profitability.
Through these measures, KNB is
expected to benefit from reduced
cost of operations in the medium
to the long term. KNB is still in the
process of redeployment of its
assets. It has initiated operational
improvements in critical areas
such as: reviewing of long term
contracts, business processes and
unprofitable projects; and strengthening its financial management and reporting functions.
With cost control measures, the cost of operations will be reduced significantly in 2015 and
beyond. For the year 2014, KNB was able to reduce the loss before tax from RM73.1 million
to RM57.2 million, roughly by 21.7%. Further reduction is expected in FY2015.
6.1.2
Indirect Economic Impacts
The indirect economic impacts are those economic impacts generated by our Group during
the course of our business, but which are not directly related to our internal operations.
Such impacts have been identified, we will to set in place the means to improve their
assessment in the future.
Page 28 of 132
Indirect job creation
Figure 16: Indirect jobs creation
Indirect jobs creation had been generated as a result of the purchase of goods and services
by our subsidiaries, such as:

local office supply and equipment;

maintenance and repair services;

parts and equipment;

communication and utilities;

transportation services and other professional services (including audit, insurance
and accounting and vehicle inspections).
Over the reporting period, the upgrading of Wharf 8A and Wharf 16 generated new
economic activities for the construction and construction material companies involved.
These activities generated by the port have spurred the development of the Port Klang area,
in terms of infrastructure and transport routes. Additionally, the toll and road taxes spent
through our haulage activities also contributed to the expansion of the road network
infrastructure.
Page 29 of 132
Indirect revenue generation
The Group contributes to the local and federal government tax revenue through the
payment of road tax, customs tax, state and local taxes collected from both personal and
business taxes.
In order to cater to potential
increase in demand NMB had
made a significant investment in
upgrading of its Wharf 8A and
Wharf 16 during the period
under review as well as an
intended upgrading of Wharf 8 in
2015.
In addition, our port and haulage activities facilitate domestic trade and the export and
import of goods. Our business therefore has important implications for the broader
economy.
Figure 17: EVG&D 2013-2015
Page 30 of 132
Figure 18: Percentage EVG&D 2013-2015 (KNB)
Induced impacts
Induced impacts are economic impacts that are created by the spending of wages, salaries,
and profits earned in the course of the direct and economic activities. Some examples in our
haulage sector are revenues generated through the payment of toll and the purchase of
subsistence goods by drivers along their transport route, GST and tax applied to personal
expenditure of our employees.
NMB, being a vibrant employment platform in the region, indirectly contributes to local job
creation (“induced jobs”) as a result of the spending of its employees and their families in
maintaining their livelihoods.
The direct economic value distributed represents our indirect contribution to external
economic players and is a good indicator of how the profit generated is redistributed.
In KNB, most of the revenue was redistributed under the form of payment to investors,
operating costs, employee wages and benefits. Altogether, KNB redistributed in average
82.4% of its revenue over the reporting period. Each KNB branch is sourcing its services and
equipment from suppliers located in its vicinity. KNB spends 100% of its procurement
budget on suppliers based in Malaysia, therefore contributing significantly to the local
economy.
In addition, KNB ensures the availability of its products and services to NGOs for support
during disasters, such as the floods that occurred earlier this year in the North east of
Peninsular Malaysia.
Page 31 of 132
6.1.3
Five-year Business plan
In an effort to enhance its operations across its value chain, the Group has put in place a
Five Year Business Plan. The first two years of the Plan focuses on rebuilding the Group as a
whole, and already commenced at the end of 2014.
NMB
NMB is currently upgrading its
infrastructure and facilities to cater for
more ultra-sized vessels as well as to
meet the growing market demand.
NMB’s new Wharf 8A, which
commenced operations in December
2013, is able to berth vessels with
deeper drafts of up to 17 meters. This
will allow the port to improve its
handling capability towards enhancing
Figure 19: Construction of Wharf 8
shipping connectivity. This capacity
building will continue with the proposed
upgrading of Wharf 8.
KNB
At the end of 2014, KNB had seen a comprehensive revamp of its operational structure and
realignment of its business streams. To date, the company possesses a more reliable and
sound financial and cost management system. Departments and reporting protocols have
also been enhanced in order to improve oversight and management. From a business
perspective, KNB has resolved to going back-to-basics, which is to focus on its core
competencies in haulage operations. As a result of the rebuilding efforts and barring any
unforeseen circumstances, we expect KNB to return to the black by the financial year ending
2016, if not earlier, creating a more competitive organisation. The next years of the Plan will
be focused on strategic initiatives that will propel the Group to become a leading port and
logistics company within the region, if not globally.
Figure 20: KNB's fleet trucks
Page 32 of 132
6.2 Our Market Presence
6.2.1
Products & Services
NCB is one of the key players of Malaysia’s main maritime gateway in Port Klang,
acknowledged as the 12th world's busiest Port, in marine cargo handling facilities and
logistics services at major locations in Malaysia.
Through our subsidiaries, NMB and KNB, the Group is actively engaged in the management
of ports and container transportation through our integrated logistics operations.
Specifically the Group is a service provider in the following services:
Container Terminals Services
Since 1986 the container terminal has and currently features 4 multipurpose container
terminals in Port Klang, namely CT1, CT2, CT3 and CT4 with 11.5 to 17 meters draft and an
annual capacity of more than 6 million TEUs. The CT4 is able to handle Ultra Large Container
Carriers - with capacity up to 20,000 TEUs.
Our terminal also offers a wide and extensive connectivity supported by leading global
shipping lines which have been instrumental for us to emerge as a major regional
transhipment hub.
Conventional Cargo Terminals
Our Conventional Cargo Terminals has since grown to be our dedicated conventional cargo
terminal handling dry and liquid agriculture-bulk such as grain and fertiliser as well as
bio-fuel products.
It supports Malaysia's steel industry by providing automotive storage and transit for the
region.
Logistics Services
Through KNB - our logistics services provider, we offer a range of vital Supply Chain and
Logistics services as follows:
a. Integrated Haulage and Trucking
b. Multimodal Transport Operator
c. International Freight Forwarding
d. Integrated and Certified Halal Logistics
e. Heavy lift logistics (project cargo)
f. Cold Solution Logistics
Our logistics services are supported by an efficient global connectivity and a hassle-free
import and export process for both air and sea, door-to-door services, provision of custom
documentation and internal transportation network which includes heavy lift, storage and
warehousing.
Page 33 of 132
As a major national transporter, KNB has the license to transport dangerous goods,
domestically and internationally by road. In terms of license, the amount of dangerous
goods that was allowed to be transported was estimated at 1,434.73 tons1 in 2014, against
1,523.40 tons for the first semester 2015.
Halal Logistics
As an accreditated Halal Terminal (MS2300) and Halal Transporter (MS1500), NCB Holdings
enjoys a unique position as the first port providing the most comprehensive synergy to Halal
Supply Chain.
Distriparks
In recognition of the International end-to-end supply chain development, the Group is also
equipped with downstream on-dock and off-dock supporting facilities, product and services.
On-Dock – Our Distriparks, both in NMB, Port Klang; and PTP, Johor, offer a value added
proposition, not only in being a Regional Distribution Centre (RDC) but also as an
International Procurement Center (IPC).
Separately on-dock, we have 3 Container Freight Stations (CFS) which offer a Consolidation
Center (CC), with services ranging from warehousing, distribution and freight forwarding, all
located within Free Commercial Zone. In total we have over 1 million sq. ft. of covered
warehouse space on-dock.
Our Distriparks in Port Klang are certified Halal MS2400 by JAKIM, complementing our Halal
Logistics Certification.
Off-Dock – Our Distribution Centres are located all over Peninsular Malaysia with over 3
million sq. ft. of warehouse space. These warehouses are strategically located near the
hinterland and major industrial estates, providing an excellent access.
Additionally, the group has open yards all over the country handling oil & gas, infrastructure
and utilities cargo storage.
Haulage & Trucking
As the pioneer in land container haulage industry since 1971 our haulage subsidiary, KNB,
offers an integrated haulage service that aims to meet customers’ needs aided through
warehouse and open yard facilities, state-of-art technology, equipment and professional
staff. Our fleet of prime movers are located across the country in the main business centres,
including Port Klang, Petaling Jaya, Penang, Johor Baru, Kuantan and Ipoh, ensuring our
outreach of the hinterland and our gateway port, NMB. Our presence in the hinterland
further strengthens our connectivity and enhances our engagement with stakeholders.
1
Calculated using pro-rata period covered by the licenses
Page 34 of 132
Marine Services
Our Marine services offer around the clock pilotage service that handles over 6,000 ship
moves annually. It ensures the expeditious flow of vessel traffic in port and a safe stay at
berth when moored or at anchor. Based in one of the world's busiest ports, we perform
more than 20,000 tug boat moves in Port Klang annually for a wide range of vessels,
including mega container ships, RORO vessels, aircraft carriers and cruise vessels too. Our
continuous fleet renewal programme aims to provide high standards of service to our
customers. Our Marine Services also strive to help maintain the safety and integrity of the
waterways by having minimal environmental impact on Port Klang's waters.
We did not receive any complaint for non-compliance with marketing communications
regulations and voluntary codes or the provision of our services, neither for non-compliance
with laws and regulations concerning the provision and use of products and services.
6.2.2
Customer Communication & Feedback
Traditional communication channels like market visits, telephone contacts and emails
continue to be practiced in reaching-out to customers and, with internet technology,
contacts through social media like WhatsApp, Twitter and Facebook are also utilised. The
main aim is to ensure customers are satisfied with the services that the Group provides.
Under KNB, customer satisfaction survey is undertaken once a year. Customers are given a
form with detailed questions to determine the level of service rendered by KNB. The survey
covers 8 areas among which are communication, request for information, Invoices &
accounts, Service comparison, Service performance. The survey is conducted in our four
areas of service (cargo container haulage, conventional trucking, warehousing & yard and
freight forwarding). The customer can give 5 grades to express his or her level of
satisfaction, ranging from very dissatisfied to very satisfied.
For Customer Feedback, KNB conducts periodical customer satisfaction surveys (CSS) to
gauge customers’ satisfaction with its services. For example, as cited per CSS Report No:
MR/01/15/WHS/Customer satisfaction survey dated 25th July 2015 for the PJ Branch and
CSS Report NO: Report No: OR1 / CSS – 001 / 2015 dated 10th January 2015 for the Penang
Branch.
NMB has a customer service centre that is also the focal point to gather customer’s
feedback. The results of our survey showed a decrease in customer satisfaction levels (51%
in 2014 against 57% in 2013), thus allowing us to identify areas of improvement and set in
place measures to improve customers’ satisfaction. In addition, NMB, organises annual
events for its customers such as “get together”, sports tournaments, overseas visits to
principals’ offices, and regular visits by customers to the port.
Page 35 of 132
Customer privacy and data protection is guaranteed by the Group, in accordance with the
Personal Data Protection Act (PDPA) 2010. So far, the Group did not face any complaint
related to customer privacy, or theft of customer data.
6.2.3
Supply Chain & Procurement Practices
In its effort to ensure transparency the Group has in place a policy for procurement of
products and services. NMB requires all intending suppliers or vendors to pre-register
wherein they would need to provide details of their company en route to a pre-qualification
before their appointment as suppliers.
KNB also adopts this same procedure of pre-qualifying its suppliers prior to appointment.
For example as cited per PJ Branch procedure document titled Purchasing Proc. No:
PR-CEN-008 Issue: 3 dated 1st February 2011. The main purpose of this procedure is to
conduct initial evaluation to qualify a supplier into an Approved Supplier List (ASL) and
thereafter to conduct its purchasing activity through evaluation of suppliers from the ASL.
NMB’s supply chain is mostly located in Peninsular and East Malaysia (local sourcing), and
primarily in the Klang Valley area. Over the reporting period, an average of 88.8% of NMB’s
procurement expenses were spent through local distributors and suppliers. The totality of
KNB’s procurement expenses were distributed to local suppliers. Local sourcing is a common
practice in all the Group’s subsidiaries and branches.
6.2.4
Anti-competitive Behaviour & Compliance
In the past, prior to privatisation, NMB and KNB enjoyed a monopolistic environment in its
business operations. Port Klang terminal was operated by a government entity, Port Klang
Authority, and hence enjoyed exclusive business opportunities in port-related businesses at
that time. With the advent of privatization and emergence of Westport in the early 1990s
NMB has been placed into a competitive mode and hence detached itself from its earlier
‘anti-competitive’ behavior.
KNB too was virtually a sole operator of container haulage service in Malaysia since 1971 for
more than 10 years before the Government opened up opportunities for more operators in
the early 1980s. Development of container haulage businesses also expanded greatly in the
1990s and 2000s with more than 50 players of various sizes providing such services to the
market place. This situation has also detached KNB from its monopolistic mode to one of
aggressive ‘anti-competitive’ behavior as well. Over the reporting period, the Group did not
receive any complaint related to anti-competitive behaviour or for non-compliance with law
and regulations.
KNB strictly follows all requirements regarding labelling for the transport of products
according to ISO9001:2008, Halal, OSHAS (Kuantan branch only) and Dangerous goods
requirements. Over the reporting period the Group did not receive any complaint or fine for
Page 36 of 132
non-compliance with regulations and voluntary codes concerning product and information
service labelling, or with the provision of products and services internationally.
Page 37 of 132
7
PEOPLE
This chapter focuses on our people - our most valuable assets and
the backbone of our activities. They are critical to our performance
and excellence, and we believe that having the right people with the
right skills and mindset will foster the growth of the Group. Rather
than offering them a job, we give them the opportunity to build a
career with us. Human Capital is the corner stone of our
sustainability, and also our biggest challenge. We are proud that
Northport (Malaysia) Bhd won the Employer of Choice Awards 2012 by MIHRM in October
2012.
Figure 21: Employer of Choice Award (Silver Category)
We instill in our people the values that are intrinsic to our business. We ensure that the
hiring process selects the right people. We nurture their development potential inside the
Group to retain them and set-up succession programmes to ensure that our human capital
grows sustainably. We are proud to count among our staff, people who have been with us
from one generation to the next, illustrating the pride and faithfulness we try to reach for
within our workforce.
Page 38 of 132
Figure 22: Group's business values
We are very proud to observe that in the past years, our productivity has increased and can
be measured, amongst other factors, through our Performance Management System.
We focus our efforts to achieve in the future our primary targets: becoming part of NOSS,
ASEAN Port Association Committee for Training, reducing the loss time on Injury and
achieving ultimate compliance of SOLAS 2012 Convention.
7.1 Our Human Capital
Under NCB, NMB gathers most of our workforce with 70% of the Group’s employees, while
KNB represents 30% of our workforce. All employees in both subsidiaries are full-time
employees. Our workforce is steady, with a slight decrease of our headcount 2.4 % over the
reporting period, from 3,858 employees at the end of 2014 to 3,767 as of end of June 2015.
Page 39 of 132
Figure 23: Group's total employees 2014-2015
NMB and NCB only have one location of operations. KNB has 8 branches apart from to their
headquarters.
Due to the nature of our activities (haulage, warehousing and trucking for KNB and
container, cargo, logistics and marine services for NMB), 88.8% of the Group’s employees
are male. Most of the staff working in our on-site operations are male as their type of work
requires physical strength and a schedule that goes around the clock, while most of our
female employees hold management and office positions. This breakdown is similar for both
KNB and NMB. NCB staff is equally divided between male and female as the positions
offered are mostly executive and office positions.
Figure 24: Group's employees by gender
Page 40 of 132
75% of our workforce had a permanent contract over the reporting period and the other
25% had temporary contract. NMB estimated that 10% of people involved in NMB’s
activities were not directly employed by NMB, while KNB directly employs all of its
workforce. These figures demonstrate that NCB is a source of stable, year-round
employment.
Figure 25: Group's employees by contract type
Altogether, the Group’s workforce was increased by 278 persons by the end of 2014 and
150 persons until June 2015.
7.2 Dynamics of Change in our Workforce
The Group has seen hire rates of respectively 7.2% and 4.0% in 2014 and first semester
2015. NMB’s hire rate did not significantly change between 2014 and first semester 2015.
However, the hire rate of KNB dropped from 14.2% in 2014 to 4.5% as of end of June 2015,
due to the exiting of some of their past business activities such as poultry and conventional
trucking, warehousing and warehousing contract management.
The Group hires mostly in the lower age groups, giving opportunities to fresh graduates to
start their career in NCB, while mostly also expanding its workforce with people having
between five to fifteen years of experience. This trend is also reflected in the hire rate by
age group.
The breakdown of new hires by gender reflects the current demography of the Group’s
employees, where more than 70% of the new employees are male.
Page 41 of 132
The average turnover of the Group was 0.1% over the reporting period, which is very low
compared to the national employee turnover rate in the general industry in Malaysia which
was 13.2% in 20132.
The highest turnover is, similarly to the highest hires, in the lower age groups. Employees of
those categories decide to leave the company when they feel they may get better career
opportunities elsewhere or when they feel they can still change in a professional sector.
The gender profile of employees leaving the company is different in both subsidiaries. The
majority of employees leaving the company in KNB are female, who may be seeking job in
less masculine environment. In NMB, the bulk of the employees leaving the company is
male, who may seek better career opportunities elsewhere.
All male personnel who took paternity leave returned back to work and were still with the
Group a year after their return3. Sixty percent of the women returned to work at the end of
their maternity leave, and some have left the company less than a year after their return,
most often to take care of their children. This trend reflects the situation in Malaysia, which
had the lowest female labour force participation level in the ASEAN region at 46%4. This
highlights the potential for the establishment of child-minding facilities by the organisation,
which is in line with the national aspirations.
7.3 Diversity is Key to Success
The Group recognizes that diversity is an important factor in human resources and allows a
good balance between employees, in consideration of culture, skills, experience,
background, gender and race. Diversity is also reflected in the Board’s composition and is
critical in ensuring its effectiveness and good corporate governance. 37.5% of the full Board
at Group level are women. In order to further demonstrate the Group’s commitment in
promoting diversity, key management at the Group level, the Board at subsidiary level, as
well as its key management, have women among its members.
2
3
4
From the General Industry Total Rewards Survey
The paternity leave statistics were only available for Northport
According to the World Bank’s “Malaysia Economic Monitor November 2012” report.
Page 42 of 132
Figure 26: Board’s gender composition
The Group’s human capital practices ensure that all persons, regardless of age, gender,
ethnicity, cultural background or other personal factors, with appropriate experience and
qualifications are considered equally during recruitment, promotion, remuneration and
training.
In a multi-cultural country such as Malaysia, it is also essential that the Group is committed
to workplace diversity, ensuring that we value and respect our differences and that our
workplace is fair, accessible, flexible, inclusive, and free from discrimination. Under KNB,
one person out of two in HQ’s higher management is recruited from the local community.
7.4 Remuneration
In accordance with the Malaysian Law, the Group’s remuneration policy makes no gender
discrimination when it comes to the basic entry wages for female and male.
KNB provides to its employees the minimum wage for non-executive category, and more
than the minimum wage to its drivers and executives, making the subsidiary an attractive
employer. There are no differences between genders for those minimum wages.
Page 43 of 132
Figure 27: NMB's remuneration statistics
In NMB, the actual basic salary varies between genders as it includes parameters such as
years in service, positions and grades, performance-based annual increment and
promotions, etc. The basic salary is on average much higher for male as they mostly work in
operations with different working conditions, while women mostly work in administrative
and office position. The average remuneration does not indicate much difference between
genders and is similar in the higher management levels.
Under KNB, the remuneration is quite similar between genders, but there is a difference in
the basic salary, especially for the non-executive employees. As for drivers, they are
exclusively male employees, thus the basic salary and remuneration ratios are not
applicable to them.
Figure 28: KNB's remuneration statistics
Page 44 of 132
The remuneration policy for the Directors and higher Management follows a specific
procedure and is subject to yearly review. The remuneration Committee is in charge of
making recommendations to the Board on the remuneration of the Executive Directors and
the salary structure and value bands for all executive positions. However, the ultimate
decision rests with the Board and is subject to the shareholders’ approval. The highest
governance bodies’ members’ remuneration package include a basic annual salary, benefits
in-kind such as club membership, travel and company vehicle and an annual performance
bonus at the discretion of the Board. The views of other stakeholders are not taken into
account for the elaboration of the remuneration policies.
7.5 Benefits
The Group goes beyond its legal obligations to provide further benefits to its employees,
whether under undetermined or fixed contract. For example, the Group provides 16%
instead of statutory requirement of 12% contribution to the EPF imposed by law and a
higher number of leave days than provided by law. 100% of the retirement plan funds are
under EPF (KWSP).
KNB
Types of benefits
•
•
Life Insurance
Disability and invalidity
coverage
•
Group Term Life
Group Hospitalisation &
Surgical
Group Personal Accident
Medical benefits
•
•
•
Dental
Outpatient
Maternity
•
Health care
Leave
•
•
•
•
•
•
Parental leave
Annual leave
Pilgrimage leave
Hospitalization leave
Compassionate leave
Medical leave
•
•
•
•
•
•
Parental leave
Annual leave
Pilgrimage leave
Hospitalization leave
Compassionate leave
Medical leave
•
Housing Loan Interest
Subsidy
Motor vehicle Loan
Interest Subsidy
Insurance Coverage
•
•
NMB
Financial benefits
•
Page 45 of 132
KNB
Types of benefits
Others
•
Retirement provision5
NMB
•
•
•
•
•
Retirement provision6
Retrenchment benefits
Uniform
Car allowance (executives)
Mobile phone allowance
(executives)
Table 2: Group's extra benefits offered
Such benefits were only provided to full-time employees under KNB, and to full-time and
temporary employees under NMB.
7.6 Growing Together
We take pride in our people, and great care in preserving the balance and harmony
between our employees, unions, and the management. To date, no issue that was raised to
the management has remained unresolved. We believe that embracing a problem when it
arises is the best way to manage risk.
Collective bargaining is a fundamental right for workers and is protected by the Malaysian
law. NCB is bound to the mutual agreement, and any disregard of it can lead to Court
dispute, protest and picketing. Our Disciplinary Procedure includes the employee’s right to
be heard. Collective bargaining agreements cover 75.7% of the total workforce: 32.8% of
employees in KNB, and 95.7% of employees in NMB.
Figure 29: Percentage of employees covered by collective bargaining agreements
5
6
Additional to the statutory rate of employer EPF contribution
Additional to the statutory rate of employer EPF contribution
Page 46 of 132
Communication is key to understand the expectations of all our people, and we have put in
place various effective and innovative communication tools to reach out to our people.
NMB’s CEO had set up Facebook, WhatsApp, and Tweet accounts, which can be directly
accessed by all employees throughout the Group, and which provide a platform for
dissemination of information. The newly established “Teh Tarik” sessions provide good
opportunities for informal open communication with all NMB’s employees, allowing to
reach out to all staff, inform them, and obtain their feedback about the business.
Northport has set in place numerous communication channels between management and
employees, as described in the table below:
Management-Employees communication channels in Northport
No Event
Target Group
1
CBM Day
Non- Executives
2
Hi Tea with CEO (Townhall Style)
3
Frequency/
Supervised
No. of events by
4
HCDD
Quarterly
CCD
Speaker's Corner
Executives + NonExecutives
All NMB Staffs
1
HCDD
4
"Perutusan CEO"
All NMB Staffs
1
CEO Office
5
All NMB Staffs
All NMB Staffs
1
AD Hoc Basis
CCD
CCD
7
E-Beacon
Anjung Northport
(27 Anjung all over NMB)
Social Media via Facebook/twitter
8
NP News
All NMB Staffs
All NMB Staffs
AD Hoc Basis
AD Hoc Basis
CCD
HCD
9
Media Clippings
All NMB Staffs
Daily Basis
CCD
10
Knowledge Management Portal
All NMB Staffs
PQM
11
Pancaran (bulletin)
All NMB Staffs
On going
process
Quarterly
12
LCD TV
All NMB Staffs
AD Hoc Basis
ISD
13
Notice Boards
Non- Executives
AD Hoc Basis
CCD
All NMB Staffs
AD Hoc Basis
14
Division/Department Meeting
All NMB Staffs
Every month
15
Northport "Apa Khabar" (Small
group of 15 people tea session with
CEO)
User
Division/D
epartment
HCDD
16
UCUX (You See You Act)
All NMB Staffs
AD Hoc Basis
HSE
6
CCD
Table 3: Communication channels between management and employees at Northport
Page 47 of 132
No
1
2
3
4
Management-Employees communication channels in Northport
Event
Target Group
Frequency/ No. of events
Social Media via Facebook/twitter
All KNB staff
CCD
Town Hall Meeting with CEO
All KNB staff
CCD
Perutusan CEO
All KNB staff
CCD
Anniversary Message
All KNB staff
CCD
5
6
7
8
CCD Blast Email
HCD Blast Email
HSE Blast Email
Quality & Safety Blast Email
All KNB staff
All KNB staff
All KNB staff
All KNB staff
CCD
HCD
HSE
Quality Dept.
Table 4: Communication channels between management and employees at KNB
The Group also typically provides a minimum notice between a week and a month to
employees and their elected representatives prior to the implementation of significant
operational changes that could substantially affect them. Such notice is specified in the
collective bargaining agreements that NMB has with the unions.
During the reporting period, a total of 15 grievances for labour practices were filed in NMB,
while KNB had two. Complaints under NMB mainly consisted in matters pertaining to safety
and career development, and were all addressed and resolved. Complaints under KNB were
related to unfair dismissal, and one out of the two has been resolved. No grievance in
relation to discrimination was recorded over the reporting period.
We take great care of the working environment of our people, whether considering the
facilities, equipment, and health and safety conditions. We provide them with a conducive
and healthy working environment. Our premises include several in-house canteens, sports
and recreational facilities and also an in-house sports club (Kelab Sukan dan Rekreasi
Northport - KSRN). Tournaments, sporting, exercising activities (including badminton, futsal,
lawn bowls and golfing) and educational trips are organised throughout the year. In
recognition of the unique multi-cultural environment in which we operate, we also take part
in celebrations of festivals together with our current and former employees and their family,
such as the “Majlis Berkhatam Al-Quran dan Berkhatan”, “Majlis Hari Raya Northport 2014”
and “Majlis lhya’ Ramadhan 2014” to celebrate the holy month of Ramadhan.
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Figure 30: Raya Gathering Celebration at KNB Headquarters
Figure 31: Bowling Games Organized by Northport Sports Club - Setia City Mall, Shah Alam
Figure 32: Majlis Ihya Ramadan – Northport
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7.7 Capacity Building and Development
NCB takes pride in providing a conducive environment that promotes physical and mental
well-being essential for creating a productive and loyal workforce. We strive to empower
our people so they can actively contribute to the development and performance of our
companies. Initiatives to step-up teamwork and cooperation in the business and
humanitarian realms, such as participation in our Disaster Relief Fund, have helped in
reinforcing cohesion and links among our people. Our working culture aims at instilling a
sense of professional responsibility and pride, develop autonomy and decision-making skills
so that our Group can thrive sustainably. Our people must be reactive to a constantly
changing business environment and market, and we train them to be versatile.
Figure 33: Train the trainer programme at KNB Headquarters
We provide other trainings on Gender Equality, Fair Remuneration, diversity and equal
opportunity, labour management relations, and continuous training (exporting talents) in
skills and self-development. We are also planning further programmes to address
Non-Discrimination, Freedom of Association, Child Labour, Forced or Compulsory Labour,
Human Rights Assessment and Human Rights Grievance Mechanism.
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Figure 34: ISO 9001:2008 Awareness Training
In NMB, managers and the highest level of management receive the most number of
training hours per person, while in KNB, it is the drivers and executives that undergo most
training hours per person. Higher levels of management usually receive more training as
they have more responsibilities and need to acquire more specific knowledge to fulfill their
duties. In KNB, drivers must go under specific training to ensure they are able to perform
their work in the safest conditions for them and others, especially with regard to safe
driving and safe handling of dangerous goods.
Figure 35: NMB's average training hours per employee category
The Directors also undergo regular training, as determined by the Nomination Committee
and the Board, to strengthen their contributions to the Board. Newly-appointed directors
are also invited to an orientation that include visit to the Group’s business operations and
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meeting with key management. All Directors have attended and completed the Mandatory
Accreditation Programme (“MAP”) prescribed by Bursa Malaysia.
Figure 37: KNB's average training hours per employee category
There is no specific trend as to which gender received most training, as trainings are
dispensed depending on specific needs.
In the pursuit of empowering our people, we have introduced three major human capital
initiatives to bring about the best in our people:
1. CBM - Change Begins with Me
Figure 38: Change Begins with Me - Port Dickson
This programme aims at increasing solidarity between employees. As an example, visits to
employees who are incapacitated by work-related injuries are organised. This contributes to
the motivation and feeling of belonging to the organization. Employees are also expected to
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take the initiative to be responsible for others’ actions that might affect operations or be of
HSE concern. Such initiatives have shown to have positive impacts and increase in
performance has been observed - hitting the target of 32 (compared with 26 to 28) - well
within a 6-months period. A CBM workshop was held in Port Dickson for some 2,000 staff to
launch this program.
2. NICE – Northport International Centre of Excellence
The Northport International Centre of Excellence (NICE) has been established for NMB
employees, as well as ASEAN participants, with the support and approval from the Ministry
of Human Resources. One of its objectives is to develop the right people to maintain the
equipment and facilities. Suppliers are invited to conduct research, for example, to test their
assumptions at the design stage on equipment and facilities applications, whereby the
design can be improved for specific facilities. In another example, research showed that
warped and dirty, greasy flooring caused the Straddle Carrier to not perform well, affecting
equipment and workers (causing spinal problems). Under NICE we link with institutions of
higher learning, such as Kolej WIT, IKM and develop training models to cater to the needs of
the industry. We are also setting-up a cooperation with the students on marine
environment from UiTM and UKM, which includes providing practical training sessions.
Figure 39: Launching of Northport International Centre of Excellence (NICE) - Concorde Hotel, Shah Alam
3. LSS - Lean Six Sigma
Northport has adopted this methodology that relies on a collaborative team effort to
improve performance, and we are proud to count today one black belts. Meaning of black
belts to be explained. Black belts are certified persons who have a thorough understanding
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of the five phases DMAIC (Define, Measure, Analyse, Improve, Control) project
methodology, and understand how to perform and interpret Six Sigma tools and how to use
standard principles of Lean.
The Group also offers programmes and events aimed at enhancing skills, self-development
and team-building, such as Speaker’s Corner, gotong-royong, talent retention programmes,
work life Balance programmes, ‘Change Begins with Me (CBM)’ Day in NMB, or “Day of
Healthy KNB”, Futsal Tournament in Kuantan branch, a bowling challenge for all its
employees and an “Appreciation Dinner” by KNGL in KNB.
7.8 Health, Safety and Environment (HSE)
7.8.1
HSE Management
Health, safety and environment management is key to safeguarding optimum conditions of
operations internally and externally. The HSE Policies promote the development and
progress of employees in a safe working environment, awareness creation through training
and stakeholder engagement, to nurture the knowledge and skills of employees through
continuous improvement and leveraging on technology, processes and people.
Figure 40: Subsidiaries' HSE policies
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Northport (Malaysia) Bhd has put in place a HSE Plan, which combines a set pf KPI with an
action plan to implement HSE initiatives across topics such as HSE Management Systems,
Safety culture, safety, health, environment and sustainability, contractor and tenant
management, training, emergency response and preparedness, dangerous goods and
auxiliary services
Figure 41: Extract of NMB's HSE Plan 2015
Other Health & Safety initiatives
Northport has issued policy statements regarding AIDS and also the abuse of drugs, alcohol
and illegal substances.
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Figure 42: Other HSE policy statements
7.8.2
HIV/AIDD Policy Statement in NMB
This policy has several objectives:
1. Creating awareness and contributing to the prevention of
infection by AIDS virus (awareness & education campaign)
2. Offering support to affected employees and their families by
providing sufficient time off for medical appointments and
counseling.
It contributes to the non-discriminatory treatment of the company’s employees. Amongst
other things, it ensures confidentiality, non-discrimination as per their work, provided they
meet sufficient work standards and do not constitute a threat for themselves and others in
the course of their duties. Their interests are safeguarded through the access to NMB’s
internal grievance procedure mechanisms.
7.8.3
Drug, alcohol and illegal substances abuses policy
As part of its Health & safety policy, NMB has put in place a “Drug,
alcohol and illegal substances abuses policy”, which aims at providing a
safe and healthy work environment, and preventing any accident or
incident for the port’s employees and users while on NMB’s premises.
The policy allows for tests and investigations to be conducted in case
that a misconduct is suspected. The actual violation of such policy may
result in disciplinary sanction, removed of the port pass and banning of
entering the port area.
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KNB also has implemented a Drug and Alcohol Programme to raise awareness and prevent
the consumption of drug and alcohol while its staff is on duty. The programme includes
random drug and alcohol tests of KNB employees and contractors working for KNB.
In both KNB and NMB the representativeness of HSE Committees have improved between
end 2014 and June 2015. It gained 2.8% in KNB and 0.2% in NMB.
Figure 43: Group's workforce representation in HSE committees
NMB’s procedures and policies are managed through its HSE Management System. It has
developed, amongst other documents, detailed HSE guidelines for its staff, as well as
contractors and tenant management procedures, to which contractors and tenants must
abide.
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Figure 44: Daily HSE inspection at NMB
As part of the global ports and Malaysia’s World Port, NMB complies with International Ship
and Port Facility Security (ISPFS), has a 24 hours emergency response team, and a 24 hours
surveillance at all NMB’s entrance and exits. All port users must also go through a safety
briefing before they can access the premises. NMB also regularly carries out programmes
for safety awareness, targeting to achieve the OSHAS 18001 standard and certification by
the end of 2016.
Figure 45: Port Pass briefing for all ports users at NMB
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The list of HSE events and activities organised by Northport over the reporting period is presented in
the following table:
HSE Events 2014 – Northport (Malaysia) Bhd
No
1
Event
Basic First Aid
Location
NICE, Northport
Date
January
2
NICE, Northport
January
3
Occupational Safety & Health
Awareness
Safety Awareness Course
NICE, Northport
February
4
Asia Green Port Conference
Public
April
5
Advanced First Aid
Public
April
6
National Fit Test
NICE, Northport
April
7
8
Safety Awareness Course (SL1M)
Building Fire Safety Equipment
NICE, Northport
Public
May
July
9
Jom Jimat Elektrik “Campaign Briefing
Session”
Corporate Safety for supervisor
NICE, Northport
July
Public
August
Public
August
Public
September
13
Environment Laboratory, Briefing &
Special Presentation On Water Analysis
Switchgear – Maintenance practical,
safety test
Fire Safety
Public
September
14
Port Crisis Management
Public
October
15
OSH For Supervisor
NICE, Northport
October
16
Environment Quality Act
NICE, Northport
November
17
Office safety Management
NICE, Northport
November
18
Safety Committee Training
NICE, Northport
November
19
Total Safety Culture Forum 2015
Majestic Hotel, KL
March
20
21
Safety Asia Summit 2015
International Fire Conference &
Exhibition Malaysia 2015
Certified Environmental Professional in
Scheduled Waste Management
Aspect Identification Impact Evaluation
Training
Park Royal, KL
PWTC, KL
March
May
Grand BlueWave, Shah
Alam
NICE, Northport
May
10
11
12
22
23
August
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HSE Events 2014 – Northport (Malaysia) Bhd
No
24
Event
Borneo Convention & Exhibition on
Occupational Safety & Health
Location
Kuching, Sarawak
Date
August
25
Clean Air Regulation Seminar by DOE
September
26
18th Conference & Exhibition on
Occupational Safety & Health COSH
2015
Leadership Behavior Base Safety
Training
Incident Command System
Concorde Hotel, Shah
Alam
PICC Putrajaya
Premier Hotel, Klang
November
Premier Hotel, Klang
November
27
28
October
Table 5: List of HSE activities performed in NMB January 2014- June 2015
Figure 46: Behavior Base Safety Training attended by Top Management, at Premier Hotel Bukit Tinggi Klang
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Figure 47: Contractors and tenants engagement session at NMB
Figure 48: Contractors and tenants engagement session at NMB
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Figure 49: Road safety Campaign at NMB
Figure 50: Road safety Campaign at NMB
KNB’s Safety, Health and Environment Policy applies to all in the organisation. KNB also has
a HSE Plan 2015. Kuantan Branch is the first branch which was certified to OHSAS
18001:2007, in April 2014. Nevertheless, the headquarters and non-certified branches fulfill
the requirements of the OSH Act, as mentioned in the Safety Council Meeting. In the
subsidiary, health, safety and environment matters are managed at two levels. Branch
managers review HSE matters on a monthly basis at the level of the Branch HSE Committee,
while the Safety Council, chaired by the acting KNB CEO and involving branch and HSE
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managers, acts at the company level. The Safety Council meets on a quarterly basis. All the
safety committees across KNB involved 10.5% during the first semester 2015 against 7.7% of
the workforce by the end of 2014, thus becoming more inclusive of KNB’s employees. As
Health & Safety matters to all, union members are invited to attend the HSE Committee
sessions in KNB as employees’ representatives.
KNB’s activities include transport of dangerous goods. In order to ensure the safety of road
users, drivers and other persons who may be on the transport route, KNB ensures that the
drivers are well trained through specific driver safety training to avoid accidents, leakage,
spillage, and improve our impact on traffic and roads.
A newsletter, relating HSE issues and information is being circulated internally on a regular
basis KNB.
KNB has set-up an indicator, the “Safe Kilometre Running (SKR)”, which counts the
accumulated kilometres between major incidents. Major incidents include fatalities, LTI
cases, property damage above RM 30k, and spillage above 200 L. The counter is restarted
after each major incident.
KNB has developed a range of training programmes to develop the skills of their employees
and raise their awareness on HSE issues, such as:
1. KNB Health Awareness Programmes (e.g.
introduction to CLASS regulation 2013)
2. HSE Trainings
3. Emergency drills
4. Defense driving
5. Incident investigation & reporting
6. Basic Occupational First Aid
7. Basic fire fighting training
8. ERT Management
9. HSE Campaigns
10. HSE Committee Meeting
11. HSE Inspections (workplace inspections)
12. Drivers have to follow specific procedures
detailed in the Drivers’ Manual.
Figure 51: Awareness training for drivers
KNB organized numerous HSE-related events over
the reporting period, which are presented in the
table below:
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HSE Events 2015 – Kontena Nasional Berhad
No Event
1 OHSAS 18001:2007 Awareness
program
2 HIRADC
3 Accident prevention, Investigation &
Reporting technique
Location
Kuantan
No. pax
25
Kuantan
HQ
25
25
4 Awareness course on the safe
handling, storage and transportation
of dangerous goods
Port Klang
23
5 Chemical Health Risk Assessor
HQ
1
6 Basic Occupational First Aid and CPR
Kuantan
3
7 RTOG Day 2015
PDB, Fleet Management Dept,
9 main contractor for Road
Tanker under the PDB
businesses (Peninsular
Malaysia/Sabah & Sarawak)
Host : KNGT/KNB HQ
300
Kuantan
PK & PJ
Kuantan
Johor
Port Klang
3
3
12
2
25
Kuantan
Penang & HQ
1
2
HQ
HQ
KNPK
KNB, HQ
100
10
30
120
KNB Kuantan
50
8 Awareness on Road Tanker
Operations Guideline - Within the
haulier/HSE requirement during daily
operations -Competitions – 4 games 9
NIOSH – Oil & Gas Safety Passport
10 Basic chemical spill control training
11 Transporting Dangerous Goods
12 NIOSH – Oil & Gas Safety Passport
13 Heavy Vehicle Defensive Driving
Course
14 Safe Handling of Forklift Truck
15 Hazard identification Risk Assessment
Risk Control Training
16 Training Fire Drill
17 Train the trainer program
18 Awareness Training for Driver
19 Evacuation Drill – internal (HQ
Building)
20 Emergency Drill – internal. With
collaboration of tenants and JAS
Kuantan
Figure 52: List of HSE activities performed in KNB, January 2014- June 2015
Page 64 of 132
Figure 53: Flag off “We follow each procedure, we are safe drivers”
7.8.4
HSE Performance
In NMB, The Loss Time Injury was 25 in 2014 and 15 as of June 2015. In NMB, accidents and
incidents decreased from 279 to 145. One fatality case was reported in 2014 and involved
one of the tenant. Most of accidents and incidents concerned port users. However the
yearly trend shows a reduction of such accidents through the enforcement of strict safety
briefings and regular engagements with for ports users, tenants and visitors. The strict
enforcement of HSE procedures is also observed at all times, and we have risen the level of
HSE throughout all stakeholders with our safety Awareness Program.
In KNB, The Loss Time Injury was 4 in 2014 and 3 as of June 2015. In KNB the number of
accidents and incidents has decreased from 156 to 52 between 2014 and the first semester
2015, and this decrease has been observed in all the categories. Nevertheless the severity of
incidents has been increasing over the reporting period. The LTIF and TRCF have been
increasing, partly due to the lesser man hours for the first semester 2015 compared to year
2014.
In both KNB and NMB, the accidents and injuries only concerned male employees, as only
men work in those on-site operations. It is also important to note that none of the Group’s
activities are sources for high incidence or high risk of specific diseases
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8
ENVIRONMENT
8.1
Our Environmental Commitment
Sustainability is an inherent part of the Group’s strategy and is
included in its policies, business strategy and operations.
As part of sustainability, the environmental pillar is important to
us, because it is essential for our operations and the lives of our
communities. NCB recognises the impact environmental
degradation may have on the Group as well as the impacts our
activities may cause to the environment and communities around
us. Therefore, we endeavour to monitor the impacts of our
operations for air, water and noise pollution and disturbances.
We have defined adequate processes to minimise and
mitigate our adverse environmental impacts, should such
impacts arise. Relating to our port activities, we also
endeavour to comply with the International Convention for
the Prevention of Pollution from Ships, 1973, as modified
by the Protocol of 1978 (MARPOL Convention), which aims
at minimising the pollution of the oceans and seas,
including dumping, oil and air pollution.
The efforts of the Group have been recognised in this
respect with NMB’s award of “Sustainable Port of the
Year”, at the Chartered Institute of Logistics and Transport
(CILT) International Convention in June 2014.
Figure 54: Sustainable port of the
year CILT award
With the view of safeguarding a healthy and safe environment for our employees,
customers, and the community in a wider sense, we have put in place several actions to
protect and preserve the environment, focusing in priority on the wise use of natural
resources as well as on the optimisation of energy consumption.
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8.1.1
Environmental Risk Management
NMB has developed and implemented a Green Master Plan (GMP). The progress is
monitored regularly and the status directly reported to the CEO’s office on a quarterly basis.
NMB plans to enhance its Health, Safety and Environment (HSE) strategy by implementing
Environmental Impact Assessments and Environmental audit and inspection for its critical
activities. In addition, the proposed future development and implementation of NMB’s
Environmental Management System in accordance with ISO 14001 standards will make the
management of environmental risks and issues more efficient and complement the existing
management systems.
Climate change and regional environmental conditions have been identified as a risk for our
KNB’s business. The more frequent occurrence of extreme climate events such as floods and
heavy rains impact our operations. The floods that occurred this year in East Malaysia, had
slowed down our operations in the area. Floods and other extreme climate events lead to
road closures, staff absenteeism, higher fleet downtime and inaccessibility of work
premises.
Identified impacts are economic losses and delays or disruption in service provision both to
us and our clients, higher operating & maintenance cost.
Moreover, climate change will spur the development of more stringent environmental
regulations, and raise costs due to complying with such regulations, for instance higher
insurance premium.
Regional climate events such as the haze, which has worsened in the past years, both in
period of occurrence and intensity, may support the need for stronger enforcement of
stricter green technology regulations, especially relating to air quality and air emissions.
Identified impacts for KNB business are higher CAPEX due to technology enhancement/ fleet
modification and other preparations to meet future green technology regulations.
In order to manage such risks, KNB intends to develop a Business Continuity Plan (BCP),
incorporating dedicated training to enhance staff skills in terms of environmental
regulations, compliance and technology, as well as increase investment allocation for green
technology.
No fines for non-compliance with environmental laws and regulations were recorded during
the reporting period.
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8.1.2
Environmental Grievance Mechanism
The Group put in place in its various subsidiaries environmental grievance mechanisms
which allow for the identification, reporting and mitigation of any environmental incident or
accident.
In NMB, environmental pollution is reported, filed and monitored through a specific form
(Form NMB51). The form contains information pertaining to date, time, pollution type,
pictures, suspected source, and any other data allowing a complete documentation of the
pollution. Environmental incidents and accidents are managed by the Health, Safety and
Environment Department of NMB. In order to promote and enhance incident reporting its
HSE Department has implemented the UCUX (You See You Act) programme in which
incident alerts can be immediately done through the use of the mobile phone via calls or
text messages and action will be taken immediately.
In KNB, the environmental grievances are managed through an incident notification form
that gathers all necessary information referring to the incident. The information is then
cascaded upwards to higher management, and reviewed regularly during management
meetings.
No environmental grievance on environmental impact was filed during the reporting period.
8.2 Monitoring our Environmental Impacts
8.2.1
Air Monitoring
As participation in our efforts to monitor the impacts of our activities on the environment,
NMB has been conducting regular ambient air quality monitoring since 2013.
Figure 55: Ambient air quality monitoring
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The use of heavy equipment for cargo handling generates carbon monoxide, nitrates,
sulphur dioxide and lead smoke, which may impair the health of exposed persons when
exceeding permissible levels. Therefore it is part of our responsibility to ensure that our
employees and Port users are not at risk while performing their duties. The samples were
taken at 9 selected locations chosen by the air quality monitoring experts. The locations
were identified under a pilot study with Universiti Kebangsaan Malaysia (UKM).
Seven parameters were tested for the monitoring assessment:
i. Total Suspended Particulate (TSP),
ii. Sulphur Dioxide (SO2),
iii. Nitrogen Dioxide (NO2),
iv. Carbon Monoxide (CO),
v. Mercury (Hg),
vi. Lead (Pb) and;
vii. Cadmium (Cd).
The results of the May and October 2013 campaigns showed that the levels of all the
particulate matters, greenhouse gases and heavy metals were within the Recommended
Malaysian Air Quality Guidelines (RMAQG) of the Department of Environment (DOE). This
analysis confirmed that the ambient air quality in NMB’s vicinity is generally in good
condition and not harmful to its employees, contractors and port users. The results from the
2013 study are presented in the performance indicators section at the end of the report.
8.2.2
Marine Water Quality
It is important for NMB to safeguard and protect its marine waters from the pollution that
may arise from its port related activities such as ship waste, oil spills, dredging activities and
water run-off from land. Aquatic pollution adversely affects marine life and ecosystems,
indirectly impairing the livelihoods and health of the coastal communities.
Figure 56: Marine water quality monitoring
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The Port’s activities depend on the marine environment, thus it is important for us that our
operations do not degrade it, in order to ensure the sustainability of our operations.
An initial Marine and Water Parameter Condition Study was conducted in NMB in 2012, in
collaboration with a group of researchers from University Kebangsaan Malaysia (UKM).
Subsequently a marine water quality study was launched in October 2014, and the
monitoring activities spanned over four weeks, aimed at identifying the types of
contamination and their sources as well as measuring the levels of pollutants.
Figure 57: Marine water quality monitoring
Marine water samplings from 7 sampling points were collected during high tides and low
tides. The analysis was conducted for 15 parameters according to the specifications for Class
III (Marine Water Quality Criteria and Standard for Malaysia) and standard methods for
examination of Water & Wastewater, 21st Edition; 2005 American Public Health Association
(APHA), American Water Works Association (AWWA) & Water Environment Federation
(WEF).
Physical and chemical parameters measured were temperature, pH, dissolved oxygen,
turbidity, chemical oxygen demand (COD), biochemical oxygen demand (BOD), suspended
solids, oil and grease, faecal coliform and ammoniacal nitrogen. The heavy metals tested
were copper, zinc, iron, aluminium and chromium.
All parameters recorded were within the limits of the Marine Water Quality Criteria and
Standards for Malaysia (MWQCS), with the exception of total suspended solids (TSS),
Copper and Zinc. The excessive TSS results were recorded during low tide, which may
explain the high figure. The excessive copper levels could have come from vessel paint
during the collision of the vessels with the wharf fenders. However, both readings have
since shown decreases in values compared to the 2012 analysis.
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Based on those results, and given the limited impacts of such parameters to marine
pollution, NMB’s marine quality water environment is deemed to be in acceptable
condition.
8.2.3
Spillage
As part of the Group’s environmental monitoring activities, the identification, recording and
remediation of spillage is a common occurrence. Identified spillages are recorded in
dedicated environmental incidents forms, along with all relevant information (date,
location, source, context, extent, mitigation actions). The information is then cascaded
upwards to the higher management for further investigation and action.
Over the reporting period, NMB recorded 5 onshore spills and 6 offshore spills, which have
all been cleaned-up. KNB reported only one minor spillage (approximately 20L) to the soil,
which was also contained and cleaned-up following the preventive maintenance
programme under JPJ/PUSPAKOM.
To date, none of those spillages in both subsidiaries resulted in fines or sanctions.
8.3 Managing our Energy Resources Wisely
NMB’s activities rely heavily on machineries, which are highly energy intensive, while KNB’s
operations mainly depend on vehicles. Therefore, fossil fuel and electricity are critical
energy resources to NCB’s business activities. These resources are non-renewable and
contribute to ozone depletion and global warming. We take it as our responsibility to
manage our energy resources wisely, to avoid resource depletion and improve the energy
efficiency of our operations. Towards such effect, the subsidiaries monitor their energy
consumption, and have planned and implemented several projects revolving around energy
conservation and energy efficiency measures. NMB is moving towards fossil fuel reduction
with the implementation of e-RTGs and high efficiency motors; and electricity reduction
with the implementation of LED lightings. NMB has started an emission inventory and
initiative to measure and mitigate its emissions. NMB has also initiated Green Projects to
achieve operational energy efficiency.
KNB, for example, undertakes regular JPJ inspection of its trucks to ensure they comply with
emission standards. Trucks that do not comply are removed from the road until they meet
the standard requirements. KNB has set in place a fuel efficiency benchmark to identify
vehicles which do not meet this benchmark. They then analyse the reasons behind the weak
energy efficiency and take the necessary steps to ensure this is corrected.
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8.3.1
Monitoring our Electricity & Energy Consumption
The electricity consumption is monitored in both subsidiaries on a monthly basis.
NMB is the highest contributor to the electricity consumption in the Group, representing in
average 93% of the Group’s electricity consumption over the reporting period.
Petrol, diesel and liquefied petroleum gas (LPG) constitute most of the Group’s sources of
non-renewable energy, with diesel representing 99.5% of such resources, both in volume
and calorific energy. KNB only uses diesel for its trucks and operations, while NMB uses a
mix of diesel, gas and petrol. Considering the actual consumption of such resources during
the first semester 2015, the total 2015 consumption is expected to be slightly higher than in
2014 if it follows the same trend until the end of 2015 due to increased throughput handled.
Figure 58: Total energy consumption (electricity & non-renewable energy)
NMB, with its transportation, cargo and container handling services, is the biggest consumer
of non-renewable energy resources, with an average of 69% of the Group’s consumption of
non-renewable energy resources.
NMB measures its energy intensity in Units per Twenty-Foot Equivalent (TEU). TEU is a good
estimate of the capacity of the container terminal and adequately reflects the activity of the
Port. The total energy intensity ratio (including electricity and non-renewable energy
resources) in NMB has increased from 213.22 MJ per TEU in 2014 to 224.64 MJ per TEU in
the first half of 2015, reflecting our challenge to improve the energy efficiency of the port’s
operations.
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8.3.2
Energy Saving Activities
As reported, energy is a critical resource for our activities, and we strive to minimise the use
of these resources by implementing energy saving initiatives and replacing old equipment
by more energy-efficient equipment. Our subsidiaries have implemented several initiatives
to curb their energy consumption and improve on energy efficiency.
In KNB, a fuel performance benchmark has been designed in order to evaluate the trucks’
fuel consumption efficiency. Thresholds of 2.20km/L and 1.75 km/L have been determined
for the vehicles less than 5 years old and over 5 years old respectively. This benchmark
allows us to measure the fleet strength with respect to their fuel efficiency. Vehicles that
are over the relevant thresholds can be identified, and the reasons for their poor efficiency
analysed on a case-by-case basis. Poor efficiency can be caused, for example, by their route
pattern (short trips with many stops), or could be a maintenance issue.
KNB also put in place an indicator to follow-up the rate of vehicles that are sent for technical
control (PUSPAKOM inspection) following the established schedule. Regular control and
inspection of vehicles is one way to ensure that they operate at their best efficiency, as well
as contributing to the safety of drivers and road users.
As part of its Green Master Plan, NMB has undertaken the following activities:
Actions
The euro 4 emission standards
were incorporated to the
requirements for the new prime
movers, a fleet of 92 vehicles.
Benefits
Respective savings of 27%
and 24% of fuel
consumption in 2010 and
2011, compared to 2008.
Power converter units were
installed in 22 Rubber Tyre
Gantry (RTG) cranes hybrid.
Potential fuel savings of
9.36%, (20,592L/month
over the 5 months test run
period)
•
•
The installation of inverted
air conditioners which
control motor speed to
regulate the conditioned
space temperature in the
operator’s cabin and
replacement of 40 old air
conditioners that use
cleaner refrigerant gas
made of natural, organic
compounds (HC-22a).
•
14.3% savings in
electricity costs and
improvement of the
environmental and
health impacts over 6
months
Reduction of the
Port’s carbon
footprint
Page 73 of 132
•
•
29 sets of LED light fittings
were installed on the tower
lights in the Cargo Terminal
2 (CT2) in 2012
And 1000W HID Lights were
replaced by 400W LED LIGHT
at TLA 26 & TLB 26.
The additional installation of
LED lightings in Northport’s
A
•
•
Actual Power
consumption
savings by 60%
yearly (yearly
electricity and
maintenance costs
savings of RM
83,389.20)
Reduction in
electricity
consumption by
2.87%.
Figure 59: NMB's Green Initiatives 2010-2015
As a part of the Renewable Energy Master Plan, a study was conducted to evaluate the
opportunity to use solar panels in NMB. However, due to the technological and
implementation challenges as well to the high costs, the project has been put on hold. This
solar project may be considered in the future, when conditions will be more favourable.
8.4 Reducing our Carbon Footprint
NMB’s major energy sources are fossil fuel. These resources release carbon dioxide, one of
Green House Gases (GHG) that contribute to global warming and eventually leads to
extreme climate change.
Figure 60: Carbon footprint and scopes
Page 74 of 132
As part of the national effort to reduce carbon emissions by 40% by 2020, NMB has
developed its own carbon credit inventory.
A monitoring exercise was carried
out using the fuel-based method
under the GHG Protocol as a
reference. The baseline was
measured in 2013 for scope 1
emissions and 2014 for scope 2
emissions. We intend to extend
the measurement to include
scope 3 emissions in the future. The initial carbon emission study allowed us to be aware of
our carbon footprint and analyse what were our most important sources of carbon
emissions. We were then able to identify potential areas of improvement, and set the
relevant carbon emissions benchmark to develop our CO2 reduction strategies.
Our current target is to reduce our emission by 20% by the end of 2015, compared to 2014.
The total carbon emissions were 40,782,822 kg CO2-eq in 2013, 66.691,003 kg CO2-eq. in
2014, and 29,557.860 kg CO2-eq. as of end of June 2015. The increase of total emissions
between 2013 and 2014 is due to the fact that only scope 1 emissions were inventoried in
2013 while both scope 1 and 2 emissions were inventoried in 2014 onwards. If the trend of
total carbon emissions observed in the first semester 2015 is confirmed for the second
semester, NMB should see a decrease in its total carbon emissions.
When considering scope 1 emissions only, there was a decrease of 8.8% of scope 1 carbon
emissions in 2014 compared to 2013. If the trend for the first 2015 semester continues for
the second semester, scope 1 emissions should also decrease in 2015 compared to 2014.
Scope 2 emissions were 29,499,561 kg CO2-eq. in 2014 and 8,166,372 kg CO2-eq. until June
2015. Such improvement in NMB’s carbon emissions are explained by the combination of
the past and present efforts in carbon emission initiatives as well as a decrease in activity
(measured in TEU) over the reporting period.
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Figure 61: NMB's total carbon emissions 2013-2015
The carbon emissions intensity, was 14.16 kgCO2.-eq/TEU in 2014, to 25.91 kgCO2.-eq/TEU
in 2014 and 21.86 kgCO2.-eq/TEU until June 2015.
Figure 62: NMB's carbon emissions by scope 2013-2015
Eleven business units and departments were included in the carbon emissions study as they
use various types of equipment and vehicles powered by burning of fossil fuels for their
operations. The major CO2 emission contributors in 2014 were the same as the ones
identified in 2013 with the Container Division being the main carbon contributor (75%),
followed by Marine Services & HSE (22%), Logistics (1%) and Conventional (1%) Divisions.
In terms of equipment, the Rubber-Tyred Gantry Cranes, Straddle Carriers, Forklifts, Prime
Movers including operation Vehicles and Lorries emit the most carbon emissions. The
Rubber-Tyred Gantries were the highest carbon contributor with 14.89 million Kg CO2-eq.
released in 2013. The amount represented 37% of NMB’s Carbon Footprint. In 2014,
Rubber-Tyred Gantry’s total emissions were reduced by 1% to 36% or equivalent to 13.21
Page 76 of 132
million Kg CO2-eq. However, it remains as the highest CO2 contributor in NMB. Prime
Movers were ranked second highest CO2 emission contributor in 2013 and 2014.
8.4.1
Emission Reduction Actions
NMB have already set in place several measures to
reduce its carbon footprint.
NMB integrated into the design of their 8A wharf
facilities for ship shore power supply for small
consumption marine boats, as an alternative to the
burning of fuel for their engines.
The infrastructure for the onshore power supply that
is ready for vessels in NMB's Container Terminal 4
Figure 63: Shore to ship power supply
(CT4) and should allow ships to run on electric supply
rather than on their generators when docking. Tug boats are already using the onshore
power supply. Should it become current practice for other vessels, it will significantly
contribute to reducing fossil fuel burning and carbon emissions.
Figure 64: Shore power supply for tugboat
In addition, the implementation and use of Hybrid Electric RTG’s (E-RTG’s) instead of
fuel-based RTG’s has also helped reducing our carbon footprint. All the forklifts in the
warehouse have also been converted from using diesel to LPG.
For future emission reductions, NMB has identified initiatives, both in operation practices
and technological changes that can help in further reducing the carbon emissions. Examples
of such initiatives are shown in the figure below.
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Figure 65: NMB's emission reductions initiatives
8.5 Effluents & Waste
NMB and KNB ensure that wastes & effluents are properly managed to comply with the
Malaysian Environmental Quality Act 1974. NMB uses a Waste Management System to
manage its non-hazardous waste, complemented by a schedule waste management plan. All
waste-related matters are handled by its Facilities Department. KNB outsources its waste
management to licensed contractors.
There is a waste management plan for safe disposal of waste. The waste identified as
scheduled wastes are stored and disposed of accordingly by an appointed licensed
contractor as required by Environmental Quality (Scheduled Wastes) Regulations 2005. The
amount of scheduled wastes disposed of are reported to Department of Environment
Malaysia through online reporting.
In KNB, waste is managed externally by licensed contractors.
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8.5.1
Non-Hazardous Waste
Figure 66: Systematic Solid Waste Management
The non-hazardous waste in NMB
represents more than 98% of its waste
and is managed by a licensed contractor,
who disposes of it in landfills. This is
overseen by its Facilities Department,
and the wastes mostly consist of wood
pallets, maintenance waste and goods
packaging containers. Procedures are
detailed in the General Waste
Management Document. There was a
general waste generation of 6,568 tons in
the first half 2015 against 7,281.6 tons for
the whole year 2014.
8.5.2
Scheduled Waste
In NMB, scheduled waste is stored and
disposed of by appointed licensed
contractor as required by the
Environmental Quality Act 1974. The
scheduled waste is also managed under
the Use and Standard of Chemicals
Hazardous to Health (USECHH).
Procedures are detailed in the
Scheduled
Waste
Management
Figure 67: Scheduled waste storage at CT1
Document.
Most of NMB’s scheduled waste originates from equipment used for maintenance works &
port development work, such as engine and hydraulic oil, grease, and their containers. The
amount of scheduled waste is reported online via “e-SWIS” (Scheduled Waste Information
System) to the Department of Environment (DOE) of Malaysia. NMB’s Scheduled Waste
Management (SW) was improved in 2015 according to DOE requirements as follows:
 Designing and implementing the inventory and labelling;
 Organising a Disposal Tender;
 Ensuring the timeliness of the disposal arrangement.
The appointment of a competent and dedicated person to manage NMB's Scheduled
Wastes & Effluent treatment plant helped to streamline the waste management process.
One NMB staff successfully followed a dedicated training for Scheduled Waste
Management, thus enhancing the organisation’s skills in terms of waste management.
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Scheduled wastes represented 150.13 tons the whole year 2014 against 41.52 tons in the
first semester 2015. On average over the reporting period, 74.7% of the scheduled wastes
was sent for recovery, while the rest was disposed of by the contractor.
8.5.3
Effluents
Figure 68: Waste water treatment plant
The
amount
of
effluents
discharged by NMB has not been
measured. However, a study of
the effluents characteristics is
performed on a monthly basis
using the APHA Standard
Methods for the Examination of
Water & Wastewater, 21st
edition (2005) published by
American
Public
Health
Association (APHA) to ensure
that they comply with applicable
discharge standards before they
are released in the environment.
NMB undertook the following initiatives to reduce its waste and effluents, as part of its
Green Master Plan:




The first wastewater treatment plant was built at Cargo Terminal 1 Workshop in
1996
A new Waste Management System was established in 2012 in NMB in order to allow
the proper segregation between disposable and recyclable waste. This initiative
allowed to reduce the number of trips for waste collection undertaken by the
relevant contractor, while the collection of recyclable wastes did not incur any
additional cost to the organisation. The relevant cost savings were estimated at
RM1,890.00 in 2013. Moreover, this initiative reduced the amount of waste that
went to landfill while increasing the amount of waste recycled.
A new Wastewater Treatment Plant System at Workshop CT2 was completed in
2012. The treatment plant conforms to the Environmental Quality (Industrial
Effluents) Regulation 2009 and allowed a more efficient treatment of NMB’s
effluents.
A Sludge Collection System from Ship and the new procedure of bunkering at NMB
were implemented in 2011, in compliance with Environmental Quality (Scheduled
Waste) Regulation 2005 and MARPOL Annex I & II respectively. These initiatives
supported the organisation’s efforts in preserving the quality of the marine
environment.
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
The installation of Micro Clean Filter on 22 RTG hydraulic system resulted in a
reduction in the amount of hydraulic oil that needed to be changed, realising costs
saving of 59.6% in 2012 compared to 2011.
Page 81 of 132
9
SOCIAL
Under our fourth sustainability pillar, i. e. Social, in this chapter we
elaborate on our engagement with our various community-related
stakeholders, via our many CSR programmes and activities, which have
positively impacted the various sectors of communities. This has
resulted in both tangible and intangible benefits to our business and
our communities, as we grow together.
9.1 Stakeholders’ Engagement
Our stakeholders are of diverse nature, and the Group has divided them into two categories.
Primary Stakeholders are the stakeholders that are part of our Group or who are directly
involved in our financial, business and operational activities. The secondary stakeholders are
more peripheral to our activities and our interactions with them can be less frequent or
regular.
The Group’s stakeholders’ values are:
 Enhance shareholders’ value
 Extract better value from key stakeholders
 Quality of engagement and decision-making process
The mode of engagement of the Group with the different stakeholder varies according to
the nature of our relations and business we have with them, as described in the table
below.
Primary stakeholders
Customers
Government & Local
authorities
Interactions
Engagement from NMB and KNB through Customer services
and CRM
KNB and NMB engage with government & local authorities for
compliance with local laws and guidelines.
KNB and NMB engage with regulatory bodies such as, Bomba,
Royal Malaysian Police and Royal Malaysian Customs for the
submission of customs documents for import and export
shipment.
Engagement with NMB through the “Prosper thy Neighbour”
program.
KNB engages regularly with the local authorities and agencies
such as Road Transport Department (RTD), Royal Malaysian
Customs, PUSPAKOM and SPAD for permit and road tax
renewal; MPPJ; Inspection of trailer and prime movers for
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Primary stakeholders
Board of Directors
Shareholders (incl.
PNB)
Bursa Malaysia
Strategic Partners
(Associations SFFLA,
FMM, AMH, LPK)
Analyst
Auditors
Subsidiaries (NMB;
KNB)
Employees
Unions (e.g. Transport
Workers’ Unions for
KNB)
Suppliers
Media
Interactions
permit renewals respectively. Besides that KNB is engages with
MTUC for the road transport workers.
General and annual meetings - at least 6 general meetings a
year
Other than through the issuance of its Annual Reports, the
Group has been actively conducting proactive engagements
and communications with its shareholders and stakeholders
through the following channels:
 Release of financial results on a quarterly basis;
 Press releases and announcements to Bursa Malaysia and
subsequently to the media; and
 An Investor Relations section on the Group’s website
 Annual general meeting
Annual reports
Meetings and negotiations, MoUs
Annual reports, quarterly briefings
Meetings and discussions with the Audit Committee
Management and Committees meeting, Reporting
CBM, Company (family, sports and festive) events; training;
HSE meetings & programmes, union activities
Regular meetings,
collectives agreement
Engagement with suppliers on a regular basis through KNB and
NMB’s procurement departments,
Press releases, interviews
Table 6: NCB Holdings Bhd.'s interactions with primary stakeholders
Secondary stakeholders
Interactions
Community
CSR activities
Universities
Industry visits; collaborative studies; internship programmes
NGOs
Partners and beneficiaries in CSR activities
Table 7: NCB Holdings Bhd.'s interactions with secondary stakeholders
Page 83 of 132
Figure 69: KNB's stakeholders
Page 84 of 132
Figure 70: NMB's stakeholders
Over the reporting period, NCB Group, NMB and KNB held many official events with
different stakeholders as shown below.
Corporate events & activities 2014-2015
Date
Event
20 January, 2014 Kontena Nasional Berhad and Volvo Malaysia Sdn Berhad
jointly organized an event, “Volvo Trucks Aftermarket
Roadshows” as a sign of continued support by Volvo to KNB.
24 February, 2014 YB Datuk Ab. Aziz Kaprawi, Deputy Minister of Transport
Malaysia officiated the launching of Wharf 8A, NMB’s latest
wharf infrastructure, which is part of Container Terminal 4
(CT4). This state-of-the-art infrastructure has the ability to
berth bigger vessels, provide higher container handling capacity
and improve productivity.
27 February, 2014 Kontena Nasional Berhad hosted a Hi Tea for its clients at
Premiere Hotel, Klang, as a show of appreciation for their
contributions and continuous support.
19 March, 2014 Delegates from The Thai Maize and Produce Traders
Association made a port study visit at NMB.
21 March, 2014 MV Proud Seas, a conventional cargo vessel managed by Envoy
Agencies (M) Sdn Bhd made a maiden voyage to NMB.
20-27 April 2014 NCB Holdings Bhd. participated in the Minggu Saham Amanah
Malaysia 2014, which was officiated by the Prime Minister, YAB
Dato’ Sri Mohd Najib bin Tun Abdul Razak in Kota Bharu,
Kelantan.
24 April, 2014 Kontena Nasional Global Logistics Sdn Bhd signed a logistics
contract agreement with Samsung Engineering Co. Ltd for
Petronas Carigali Terengganu Gas Terminal Project.
6 May, 2014 Kontena Nasional Berhad signed a Memorandum of
Understanding (“MOU”) with Majlis Amanah Rakyat (“MARA”),
to mark the beginning of a cooperation between these two
entities.
29 May, 2014 The Fifteenth Annual General Meeting of NCB Holdings Bhd.
was held at Hilton Petaling Jaya.
31 May, 2014 Northport (Malaysia) Bhd received the largest panamax sized
dry bulk vessel to berth in its waters, MV Areti, managed by
Bulkmann Sdn Berhad.
19 June, 2014 Emirates Shipping Line’s vessel MV Tamina made a maiden call
to NMB’s Wharf 8A.
20 June, 2014 Kontena Nasional Berhad drivers participated in “Road Tanker
Driving 2014” competition organized by Petronas Dagangan
Berhad.
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27 June, 2014 As a show of appreciation to its customers, Kontena Nasional
Berhad organized a “Get Together” at Sunway Hotel Seberang
Jaya, Penang.
11 July, 2014 Tuan Haji Abi Sofian bin Abdul Hamid, NMB’s Chief Executive
Officer showed NMB’s appreciation by hosting “Iftar Ramadan”
for its customers and stakeholders.
21 August, 2014 State Railway of Thailand made a working visit to Kontena
Nasional Berhad.
25 August, 2014 YABhg Tun Ahmad Sarji bin Abdul Hamid, Chairman of NCB
Holdings Bhd. witnessed the leadership transition of NCB and
NMB during NCB Corporate Update Session. This was also in
conjunction with Wharf 16 completion.
28 August, 2014 KN Global Transport Sdn Berhad and Petronas Dagangan
Berhad co-hosted ‘Road Tanker Operations Guideline 2014’
launch at KNB.
23-25 September, 2014 Tokyo Port Terminal Co. Ltd, NYK Lines (M) Sdn Bhd and Tasco
Berhad delegation made a port visit to NMB.
23 September, 2014 Kontena Nasional Global Logistics Sdn Bhd participated in The
Malaysian Oil and Gas Services Exhibition and Conference 2014
at the Kuala Lumpur Convention Centre.
10 October, 2014 KNB direction plan and implementation of policies.
21 October, 2014 Tuan Haji Rubani bin Dikon, NMB’s Chief Executive Officer
welcomed Heung-A (M) Sdn Berhad’s representatives on their
visit to the Port.
20 November, 2014 Northport Golf Invitation 2014 was organized at Glenmarie Golf
& Country Club to foster closer ties with NMB’s valued
customers and business partners.
3 December, 2014 Kontena Nasional Berhad, one of the main contractors for bulk
petroleum transportation services for Petronas Dagangan
Berhad, conducted a mock drill of a chemical accident at
Tanjung Dua Belas South Klang Valley Expressway (SKVE).
16 December, 2014 YB Dato’ Sri Richard Riot anak Jaem, Minister of Human
Resources Malaysia, officiated the launching of Northport
International Centre of Excellence (NICE) and Collaborative
Programmes with the Ministry of Human Resources, Malaysia
to enhance and cultivate learning and growth culture as well as
strengthening the company’s core competencies.
22 December, 2014 Tuan Haji Abi Sofian bin Abdul Hamid, NCB Holdings Bhd. Group
Managing Director, signed the Corporate Integrity Pledge
witnessed by Malaysian Anti-Corruption Commission’s Chief
Commissioner Tan Sri Abu Kassim Mohamed.
1 January, 2015 KNGT Flag Off.
13 February, 2015 Port industrial Visit by UiTM Segamat to KNB.
23 February, 2015 Port industrial Visit by UNIKOP to KNB.
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26 February, 2015 Port industrial Visit by UiTM Terengganu to KNB.
24 March, 2015 Port industrial Visit by UNISEL to KNB.
2 June, 2015 Kontena Nasional Global Logistics Sdn Bhd participated in The
Malaysian Oil and Gas Services Exhibition and Conference 2015 atthe
Kuala Lumpur Convention Centre.
Table 8: Events at NCB, NMB and KNB (January 2014 – June 2015)
Figure 71: NCB Annual General Meeting (AGM) - PJ Hilton Hotel
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Figure 72: Visit from Thai Maze and Produce Traders Association – Northport
Figure 73: NCB Corporate Update Session
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Figure 74: Maiden Call of MV Tamina
Figure 75: The Launching Ceremony of Wharf 8A - Wharf 8A Northport
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Figure 76: Visit by UiTM Students - Northport
9.2 Our Community Engagement: Corporate Social responsibility
Our NCB Group has always actively contributed to the social and economic development of
the communities in which we operate. We believe that through our business endeavours
value is created to enhance the quality of life directly and indirectly of the society around us.
Our Corporate Social Responsibility ("CSR") activities are thus guided by our values and
beliefs, which currently are channelled through our 4 pillars of CSR, namely




Human Capital
Social
Environment
Economy
No grievance about impacts on society was filed during the reporting period.
9.2.1
Human Capital
Our human capital, being our most important asset, forms the backbone of our
organisation. It is therefore our priority to create a conducive and healthy workplace
environment that attracts, maintains and enhances our human capital.
Accordingly, a number of CSR programmes and activities were organised within the
subsidiaries for our staff over the period 2014 as outlined below.
Page 90 of 132
Activities for Employees at NMB
Category
SPORTS AND RECREATIONAL
Internal Sports Competitions
Event








Ministry of Transport Games




PNB Inter Subsidiaries Tournament





ASEAN Port Association (APA) Games




WELFARE
Festivals Home Visit (Widows and Family of
Deceased Employees)
Change Begins with Me Day
Pre Marriage Training



Fishing Competition
Indoor Games (Dart, Carrom)
Volleyball
Badminton
Table Tennis
Bowling
Mini Marathon
Mini Golf
Table Tennis
Volleyball
Badminton
Darts
Darts
Football
Badminton
Lawn Bowl
Bowling
Table Tennis
Mini Marathon
Futsal
Badminton
Chinese New Year
Deepavali





LHDN,
EPF,
SOCSO,
Tabung Haji, etc.
Weekly Religious Talks
Ihya' Ramadhaan
Aidil Fitri Gathering
Pre Marriage Training
Weekly Religious Talks
HCD Government Counters Service Day
Blood Donations
CSR - Helping Flood Victims in Kelantan
Gotong-Royong
Table 9: CSR Activities for employees at NMB, January 2014-June 2015
Page 91 of 132
Activities for Employees at KNB
Event
Date
SPORTS & RECREATION
28 February 2014
15 April 2014
23 May, 2015
30 Oct, 2015
Bowling Tournament with KNB and KNGL
Futsal Tournament hosted by Kuantan Branch
Annual General Meeting Kelab Sukan Rekreasi Konten Nasional
KN Penang Branch Bowling Challenge 2015



5 & 6 Dec, 2015
23 May, 2015
PNB Inter Subsidiaries Tournament
Badminton
Bowling
Volley Ball
Trill of the Hunt - KSRKN
Annual General Meeting Kelab Sukan Rekreasi Kontena Nasional
Table 10: CSR Activities for employees at KNB, January 2014-June 2015
Figure 77: Speakers Corner - Northport
Page 92 of 132
Figure 78: Indoor Games Organized by Northport Sports Club – Northport
9.2.2
Social
Under this pillar the focus over 2014 was on CSR activities that extended to the community
around us. Such activities included:
 Zakat,
 Sports,
 Community,
 Education, and
 Support for Natural Calamities.
Zakat - NCB Group presented a cheque amounting to RM2.2 million to Lembaga Zakat
Selangor during a special ceremony in the royal presence of HRH The Sultan of Selangor and
other zakat officials.
Figure 79: Cheque Presentation of Zakat Fund - Istana Alam Shah, Klang
Page 93 of 132
Education - Companies in the NCB Group believe that the well educated workforce of
tomorrow depends on their accessibility to education today. This also translates to
involvement in education-related activities and assistance for our employees and their
families, as well as for the general public. In this regard NCB also offers scholarships and
educational assistance for children of employees who excel in their Sijil Pelajaran Malaysia
(SPM) examination to pursue their tertiary studies. Northport (Malaysia) Bhd. sponsored
RM10,000.00 to subscribe and distribute 12,500 copies of The Star Newspaper-in-Education
(NiE) to 5 selected schools in the vicinity of Port Klang to promote students' English
language literacy through The Star NiE School Sponsorship Programme 2014.
Figure 80: The Star NiE Programme - SMK Dato' Hamzah Klang
Sports - NCB advocates the importance of developing talents and participation in sports
through then organising of its yearly sports activities. Thus, NCB has been working closely
with companies within the PNB Group, nurturing talent in badminton, football, cricket, lawn
bowls and golf.
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Figure 81: Northport Golf Invitation 2014 - Glenmarie Golf& Country Club
Figure 82: PNB Intersub Badminton Games - Petaling Jaya
The Community - The companies in the Group are passionate in carrying out community
related programmes, as a way to give back to the community. NMB is active in organizing
outreach programmes with the local communities during celebrations held in periods of
festivities. For instance


The Chinese New Year CSR Programme 2014 was celebrated with the old folks of
Klang Coast Chik Sin Thong Old Folks Home Selangor,
Programme Raya Ria Bersama Northport 2014 was celebrated with underprivileged
families, and
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
Deepavali CSR Programme 2014 reached out to unfortunate students and their
families in Carey Island, Selangor.
Figure 83: Deepavali CSR Programme - SJK (T) Pulau Ketam
Figure 84: Chinese New Year CSR Programme - Pusat
Cahaya Kesayangan, Klang
Figure 85: Raya Ria Bersama Northport - Mydin
Hypermarket USJ
Page 96 of 132
Support in Period of Calamities - NMB and KNB have also participated in giving assistance
during the recent severe floods that hit the East Coast states of Peninsular Malaysia in 2014.
Figure 86: Handover of goods for Flood Victims, Kuantan Pahang
Figure 87: Humanitarian Aid Mission to East Coast Flood Victim - Kelantan
Both subsidiaries organised various CSR events over the reporting period, as mentioned in
tables 11 and 12 below.
Page 97 of 132
CSR Activities at NMB
Date
Event
11 February 2014 Chinese New Year CSR Programme 2014 at Klang Coast Chik Sin Thong
Old Folks Home Selangor
Celebration and sharing of the CNY festive season by presenting
hampers and money packets to senior citizens living in the home.
18 April 2014
The Star NiE School Sponsorship Programme 2014 at SMK Dato'
Hamzah, Port Klang
Northport sponsored RM10,000 to subscribe and distribute 12,500
copies of The Star Newspaper-in-Education (NiE) to 5 selected schools in
the Port Klang vicinity to propel the students' English language literacy
to greater heights.
25-26 April 2014 Tree Planting Programme at Taman Rakyat at Taman Rakyat, Klang
Jjoint collaboration between Majlis Perbandaran Klang and Landskap
Malaysia to plant 1,000 tree seedlings in Taman Rakyat to promote
green lung for a healthier living and to create awareness among the
locals. Northport participated in this CSR programme together with
other private companies and schools.
17 July 2014
Hari Raya Aidilfitri CSR Programme 2014 at Mydin USJ, Subang
Celebration and sharing of the festive season with children of six
underprivileged families residing near Northport by helping them shop
for new clothes and essential daily provisions.
21 July 2014
Majlis Ihya Ramadhan at Surau Al-Hidayah, Northport
Celebration of the holy month of Ramadhan together with the
orphanages and widows of Northport.
17 October 2014 Deepavali CSR Programme 2014 at SJK (T) Pulau Carey Timur
Aims at reaching out to the 17 identified underprivileged families in
Pulau Carey Timur by distributing essential provisions and money
packets to them so that they can prepare for a proper celebration.
22 December
Programme Pantai Angkat Negeri Selangor 2014 at Tanjung Harapan,
2014
Port Klang.
Lembaga Urus Air Selangor (LUAS) organised a competition among 5
coastal areas to beautify the identified area, create awareness on our
ecosystem by using recycled products and to instill a sense of belonging
and ownership among the locals. The identified Northport team cleaned
and beautified the identified stretch in Tanjung Harapan over a period
of 3 months. Northport obtained Runners-Up position in this
competition.
1-4 January 2015 Northport's Humanitarian Mission for East Coast Flood Victims at
Kuala Krai, Kelantan
Northport organized a humanitarian aid mission to help flood victims in
Kuala Krai, Kelantan that was hit by severe floods.
8-9 January 2015 Northport's Humanitarian Mission for East Coast Flood Victims at
Temerloh, Pahang
Northport organized a humanitarian aid mission to help flood victims in
Temerloh, Pahang that was hit by severe floods
Page 98 of 132
CSR Activities at NMB
Date
Event
16 February 2015 Chinese New Year CSR Programme 2015 at Pusat Cahaya Kesayangan,
Klang
Celebration of the CNY festive season by presenting essential goods and
money packets to the less fortunate community around Northport. The
home housed intellectually different girls and women who suffered
from mental illness and abuse.
29 June 2015
Hari Raya Aidilfitri CSR Programme 2015 at Balai Islam, Pulau
Ketam Port Klang
Celebration and sharing of the festive season with newly reverted
Muslims in Pulau Ketam, mostly indigenous minority residents of Pulau
Ketam in Port Klang by donating essential goods and money packets.
Table 11: CSR Activities at Northport, January 2014-June 2015
CSR Activities at KNB
Date
Event
18 Jun, 2014
KNB & Petronas Dagangan staff visited Madrasah Tahfiz Al-Quran Bahrul
Ilhum, Kota Kinabalu
Blood Donation to Hospital Ampuan Rahimah
43rd KN Anniversary Celebration with Orphans from Madrasah Tahfiz Al Quran
Al Ukhuwwah
Iftar with Tahfiz Students
20 Aug, 2014
25 Aug, 2015
Sept 2014
10 January, 2015
04 February, 2015
Flood victim assistance mission by KNB - Misi Bantuan Mangsa Banjir Pantai
Timur.
Contribution Flood victim to KNB employees in East Coast
Table 12: CSR Activities at KNB, January 2014-June 2015
9.2.3
Environment
The companies in our Group are aware of the vital connection between the natural
environment and the nature of our business. We thus watch over and ensure that we
monitor the impacts of our operations on the environment. This way we are able to ensure
that there are no negative impacts to the environment around us in the form of noise, water
or air pollution.
In caring for our environment, NMB has taken part in programmes such as Tree Planting
Programme at Taman Rakyat, which was a joint collaboration between Majlis Perbandaran
Klang (MPK) and Landskap Malaysia. In this programme 1,000 tree seedlings were planted in
Taman Rakyat, Klang, Selangor.
NMB also participated in Programme Pantai Angkat Negeri Selangor 2014,. This was a
competition organized to beautify the coastal area of Tanjung Harapan using recycled
products. For its efforts NMB became overall runner-up in the competition. 'Gotong-royong'
programmes have also been held by NMB's staff as part of its effort to maintain cleanliness
in its environs.
Page 99 of 132
Additionally we organised the following:
 A Visit by Officials from the Ministry of Natural Resources and Environment to
discuss mangrove plantation project
 Programme 'Hutan Kita' with MPK that aims at forest conservation
Figure 88: Gotong-royong Programme Pantai Angkat -Tanjung Harapan, Pelabuhan Klang
9.2.4
Economy
As part of our on-going
efforts
of
enhancing
relationship between the
companies,
suppliers,
customers and other
stakeholders,
programmes
for
interaction
and
networking are organized
on a regular basis. NMB
through the 'Prosper Thy
Neighbor' programme had
arranged and engaged
itself in facilitating dialogues among investors, the business community, MIDA, LPK and local
authority MPK to enhance and improve the overall condition in Bandar Sultan Suleiman.
This initiative has indeed been fruitful as Bandar Sultan Suleiman has now seen major
changes in infrastructure and overall cleanliness of the industrial area. Safety of the workers
working in Bandar Sultan Suleiman area had also been addressed through the construction
of an overhead bridge.
Page 100 of 132
In practising good corporate citizenship, the Group has improved its competitive edge in
respect of attracting and retaining investors, clients and employees and also improve its
social relationship with the surrounding community and other stakeholders.
Figure 89: The "Prosper thy Neighbour" programme in the media
Page 101 of 132
THE WAY FORWARD
We are proud to be among the early leaders in the port operations and logistics business in
Malaysia to prepare a sustainability report. We view the sustainability road ahead as work in
progress, requiring regular materiality review and continuous performance improvement.
Our emphasis on raising awareness and capacity of our human capital will be a strong
enabler in our planning and implementation progress along our sustainability journey
towards better economic, social and environmental performance, in the light of increasing
regional and global climate change, technology advancement and regulatory requirements.
While the first phase of sustainability reporting process established the parameters of the
report, it is the objective of NCB Holdings to consolidate the outcomes of the management
of these parameters and obtain the desired results.
Page 102 of 132
APPENDIX A: PERFORMANCE DATA
All the performance data for year 2015 only covers the period January to end of June 2015.
Economic Indicators
Figure 90: KNB's revenue 2010-2015
Figure 91: KNB's profit before tax 2010-2015
Page 103 of 132
Figure 92: NMB's revenue 2010-2015
Figure 93: NMB's profit before tax 2010-2015
Page 104 of 132
Figure 94: Direct EVG&D for KNB – Jan 2013- June 2015
Figure 95: % Direct EVG&D for KNB – Jan 2013- June 2015
Page 105 of 132
Figure 96: KNB's percentage direct EVG&D value by branch
Figure 97: Direct EVG&D for NMB – Jan 2013- June 2015
Page 106 of 132
Figure 98: % Direct EVG&D for NMB – Jan 2013- June 2015
Page 107 of 132
Human Capital indicators: demographics
Figure 99: Group's employees by gender 2014-2015
Figure 100: Group's employees by contract type 2014-2015
Figure 101: KNB's employees by branch
Page 108 of 132
Human Capital indicators: Dynamics of change
Figure 102:
Group’s new hires by age group
Figure 103: Group's new hires rates by age group
Page 109 of 132
Figure 104: Group’s new Hires by Gender
Figure 105: Group's new hires rates by gender
Figure 106: KNB's new hires by branch
Page 110 of 132
Figure 107: KNB new hire rates by branch
Figure 108: Group's turnover by age group
Figure 109: Group's turnover rates by age group
Page 111 of 132
Figure 110: Group's turnover by gender
Figure 111: Group's turnover rates by gender
Figure 112: Group's return to work and retention rates after parental leave
Page 112 of 132
Human Capital indicators: Remuneration & Capacity building
Figure 113: KNB salary statistics
Figure 114: NMB's performance review statistics by gender
Page 113 of 132
Figure 115:
NMB's performance review statistics by employee category
Figure 116: Group's average training hours by gender
Page 114 of 132
HSE Indicators
Figure 117: No-injury incidents and accidents at KNB
Figure 118: LTIF at KNB 2014-2015
Figure 119: TRCF at KNB 2014-2015
Page 115 of 132
Figure 120: no-injury type of accidents and incidents at NMB
Figure 121: LTIF at NMB 2014-2015
Figure 122: TRCF at NMB 2014-2015
Page 116 of 132
Electricity & Energy indicators
The electricity consumption is derived from electricity bills.
The non-renewable energy consumption (fuel, gas, petrol) is measured by actual liter
consumption, and the calorific energy factors used are from the world nuclear
association for diesel and petrol and from
http://www.elgas.com.au/blog/389-lpg-conversions-kg-litres-mj-kwh-and-m3 for the
gas.
Figure 123: Group's electricity consumption 2014-2015
Figure 124: Group's non-renewable energy consumption 2014-2015 (MJ)
Page 117 of 132
Figure 125: Group's non-renewable energy consumption 2014-2015 (L)
Figure 126: Non-renewable energy consumption by fuel type 2014-2015
Page 118 of 132
Environmental indicators: Carbon footprint & waste
Figure 128: Scheduled waste by method of disposal at NMB
Figure 127: NMB's carbon emissions by department 2013-2014
Figure 129: NMB's carbon emissions by equipment
Page 119 of 132
Figure 130: NMB's Environmental protection expenditure
Page 120 of 132
APPENDIX B: GLOSSARY
AC
AMH
APHA
ASEAN
ASL
AWWA
BCP
BOD
BRMC
CAP
CAPEX
CBM
CC
Cd
CFS
CILT
CIP
CNG
CO
CO2
COD
CPR
CSR
CSS
CT
DOE
EPF
ERM
ESG
EVG&D
FIC
FMM
GLC
GMP
GRI
GRMD
GST
HCFC
Hg
HIRADC
HSE
Audit Committee
Association of Malaysian Hauliers
American Public Health Association
Association of South East Asian Nations
Approved Supplier List
American Water Works Association
Business Continuity Plan
Biochemical Oxygen Demand
Board Risk Management Committee
Capital per GDP or investment rate (cf. Malaysia Productivity Corporation)
Capital Expenditure
“Change Begins With Me”
Consolidation Center
Cadmium
Container Freight Stations
Chartered Institute of Logistics and Transport
Corporate Integrity Pledge
Compressed Natural Gas
Carbon Monoxide
Carbon Dioxide
Chemical Oxygen Demand
Cardiopulmonary resuscitation
Corporate Social Responsibility
Customer Satisfaction Survey
Container Terminal
Department of Environment
Employee Provident Fund
Enterprise Risk Management
Environmental, Social and Governance
Economic Value Generated and Distributed
Finance and Investments Committee
Federation of Malaysian Manufacturers
Government Linked Company
Green Master Plan
Global Reporting Initiative
Group Risk Management Department
Goods and Service Tax
Hydrochlorofluorocarbon
Mercury
Hazard Identification, Risk Assessment and Determining Control
Health, Safety and Environment
Page 121 of 132
IKM
IPC
ISPFS
KCT
Km/L
KN
KNB
KNGT
KPIs
KPM
KSRN
LED
LPG
LPK
LPK
LTI
MACC
MAP
MARA
MARPOL
MIDA
MIHRM
MJ
MMLR
MMWQS
MPPJ
MRMC
MTUC
NC
NCB
NGO
NICE
NIOSH
NMB
NO2
NOSS
OHSAS
Pb
PDRM
PNB
PUSPAKOM
RC
RDC
RMAQG
Institute Kemahiran Malaysia
International Procurement Centre
International Ship and Port Facility Security
Klang Container Terminal Berhad
Kilometre per Liter
Kontena Nasional
Kontena Nasional Berhad
Kontena Nasional Global Transport
Key Performance Indicators
Klang Port Management Sdn Bhd
Kelab Sukan dan Rekreasi Northport
Light-Emitting Diode
Liquefied Petroleum Gas
Lembaga Pelabuhan Kelang
Lembaga Pelabuhan Klang
Loss Time Injury
Malaysian Anti-Corruption Commission
Mandatory Accreditation Program
Majlis Amanah Rakyat
International Convention for the Prevention of Pollution from Ships
Malaysian Industrial Development Authority
Malaysian Institute for Human Resource Management
Mega Joules
Main Market Listing Requirement
Malaysian Marine Water Quality Standards
Majlis Perbandaran Petaling Jaya
Management Risk Management Committee
Malaysian Trade Union Congress
Nomination Committee
Northport Corporation Berhad
Non-Governmental Organisation
Northport International Centre of Excellence
National Institute of Occupational Safety and Health
Northport Malaysia Berhad
Nitrogen Dioxide
National Occupational Skills Standard
Occupational Health and Safety Auditing Scheme
Lead
Polis Di Raja Malaysia
Permodalan Nasional Berhad
Pusat Pemeriksaan Kenderaan Berkomputer
Remuneration Committee
Regional Distribution Centre
Recommended Malaysian Air Quality Guidelines
Page 122 of 132
RMC
RORO
RTD/JPJ
RTG
RTOG
RTP
SKR
SKVE
SO2
SOLAS
SPAD
SSFLA
SW
SWIS
TEU
TSP
TSS
UCUX
UiTM
UKM
UNIKOP
UNISEL
USECHH
WEF
WIT
YABhg
Risk Management Committee
Roll on roll off
Road Transport Department
Rubber Tyre Gantry
Gas Road Transportation Operation Guideline
Related Party Transactions
Safe Kilometre Running
South Klang Valley Expressway
Sulphur Dioxide
Safety of Life at Sea
Suruhanjaya Pengangkutan Awam Darat
Selangor Freight Forwarders & Logistics Association
Scheduled Waste
Scheduled Waste Information System
Twenty-Foot Equivalent Units
Total Suspended Particulates
Total Suspended Solids
You See You Act
Universiti Teknologi MARA
Universiti Kebangsaan Malaysia
Kolej Bersekutu UiTM
Universiti Selangor
Use and Standard of Chemicals Hazardous to Health
Water Environment Federation
Workers Institute of Technology
Yang Amat Berbahagia
Page 123 of 132
APPENDIX C: GRI CONTENT INDEX (In accordance with “Core” requirements)
Indicators in bold are the ones necessary to complete sustainability reporting in accordance with “Core” option.
GENERAL STANDARD DISCLOSURES
General
Standard
Disclosure
s
Page Number (or Link)
Explanation for Omission(s)
STRATEGY AND ANALYSIS
G4-1
Pages 7, 8, 9
G4-2
Specific information not available
ORGANIZATIONAL PROFILE
G4-3
Page 10
G4-4
Pages 12, 33, 34, 35
G4-5
Page 10
G4-6
Page 12
G4-7
Pages 11-12
G4-8
Pages 12, 33, 34, 35
G4-9
Pages 26, 27, 28, 38
G4-10
a.
b.
c.
d.
e.
f.
Quantity of services provided not available for KNB.
Total number of operations not available.
Pages 39, 40, 105
Page 40
Page 40
Page 105
Page 40
Page 62
Page 124 of 132
General
Standard
Disclosure
s
G4-11
Page 45
G4-12
Page 36
G4-13
Pages 11, 12, 26, 27
G4-14
Information not available
G4-15
G4-16
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17
Annual report page 179 to 329
G4-18
Page 22
G4-19
Page 23
G4-20
Page 23
G4-21
Page 24, 25
G4-22
Not applicable
This is the 1st sustainability report
G4-23
Not applicable
This is the 1st sustainability report
STAKEHOLDER ENGAGEMENT
G4-24
Pages 81, 82, 83
G4-25
Page 81
G4-26
Page 81, 82
G4-27
REPORT PROFILE
G4-28
Page 10
G4-29
Page 10
G4-30
Page 10
Page 125 of 132
General
Standard
Disclosure
s
G4-31
Page 10
G4-32
Page 10
G4-33
Not applicable.
No external assurance for this report.
GOVERNANCE
G4-34
Pages 14, 15, 16, 17
G4-35
G4-36
Pages 16, 19
Pages 15, 2,
Annual report p 84
G4-37
G4-38
G4-39
G4-40
G4-41
G4-42
Page 15
Annual Report 2014 p52 to p58, and p73 to 82
Annual report p72
Pages 14, 15, 65
Annual Report 2014 p7 and p91,
Annual report 2014 p 72 to 81 and p145
G4-46
Pages 19, 20, 21
Annual report p83 to 86
Pages 16, 17, 50, 51
Annual report p92
Page 16, 17
Annual Report p128, p86, 87,
a. Annual report p83 to 86, p115 to 120,
p94
b. missing
Annual report p115 to 120
G4-47
Annual report p85, 89,90
G4-43
G4-44
G4-45
Partial information only
No info available for G4-45b
Page 126 of 132
General
Standard
Disclosure
s
G4-48
G4-49
G4-50
G4-51
Annual report 2014 p91, p131, 132
G4-52
Annual report 2014 p91, p131, 132
G4-53
G4-54
G4-55
Annual report p8
Partial information only
ETHICS AND INTEGRITY
G4-56
Page 18
Annual report 2014 pages 94, 119.
G4-57
G4-58
Page 127 of 132
SPECIFIC STANDARD DISCLOSURES (Material aspects)
DMA and Indicators
Identified Omission(s)
Reason(s) for Omission(s)
ECONOMIC
G4-EC1
G4-EC2
G4-EC3
G4-EC4
Page 30, 31 and 105, 106,
107
Page 66
a.
b.
c.
d.
e.
Page 27
not applicable
not applicable
not applicable
Page 45
Page 45
G4-EC5
Not available
G4-EC6
Page 42
G4-EC7
Not applicable
G4-EC8
Pages 28 to 31
G4-EC9
Page 36
No information for NMB
Partial information
No quantification of such impacts
ENVIRONMENTAL
G4-EN3
a.
b.
c.
d.
e.
f.
g.
page 71, 117, 118
not available
p 114
not available
Page 71
Page 117,
Page 117
G4-EN4
b.
d.
Fuel Renewable energy
resources used
Energy sold
G4-EN5
Page 71
Energy consumption outside the
organisation
Energy intensity for NMB missing
G4-EN6
Pages 72, 73
Reduction in Energy consumption
G4-EN7
Reduction in energy requirements
from P&S reduction
b.
d.
Such resources are not used
not available
Information not monitored/
measured
No mileage information available
Information partially monitored/
measured
measured
Page 128 of 132
DMA and Indicators
G4-EN15
G4-EN16
a.
b.
c.
d.
e.
f.
g.
a.
b.
c.
d.
e.
f.
Pages 74, 75, 119
Page 74
Not available
Page 74
Page 74
Not available
Not available
Pages 74, 75, 119
Page 74
Page 74
Page 74
Not available
Not available
G4-EN17
a.
b.
c.
d.
e.
f.
g.
a.
b.
c.
d.
e.
f.
Biogenic emissions
Source of emission factor
Consolidation method
Source of emission factor
Consolidation method
a.
b.
c.
d.
e.
f.
g.
a.
b.
c.
d.
e.
f.
Not measured by KNB. Not
monitored
not monitored
Info not available
Info not available
Info not available
Info not available
Scope 3 emissions
Scope 3 emissions are not moniroted
G4-EN20
Carbon emission reductions resulting
from emission saving activities
ODP emissions
G4-EN21
Nox, Sox and other emissions
G4-EN22
Water discharged
measured
measured
measured
measured
Information not available for KNB
G4-EN18
Page 75
G4-EN19
Pages 76, 77
G4-EN23
Pages 78, 79, 119
G4-EN24
Page 70
G4-EN25
Not applicable
G4-EN26
G4-EN29
Partial info for Total weight of waste
Water bodies of water and habitats
affected by the organisation’s
discharges water and runoff
Environmental impacts
No EIA performed- info not available
Page 66
G4-EN30
Page 129 of 132
DMA and Indicators
G4-EN31
Page 120
Partial info on environmental
expenditure
% suppliers screened with
environmental criteria
Negative environmental impacts on
supply chain
ODR, LDR, AR
Different indicators are used
HSE topics covered in formal
agreements
Programmes for continued
employability and career ending
Partial information regarding
performance review
Partial information regarding
composition of governance bodies
No such programme available
% suppliers screened with labour
practices criteria
No labour practices criteria for
supplier screening
G4-EN32
G4-EN33
G4-EN34
No environmental criteria for supplier
screening
measured
Page 67
SOCIAL
LABOR PRACTICES AND DECENT WORK
G4-LA1
a.
G4-LA2
Pages 40 and 109
to 111
b. Pages 41, 111,
112
Pages 44, 45
G4-LA3
Pages 41, 112
G4-LA4
Page 47
G4-LA5
Page 56
G4-LA6
Pages 64, 115, 116
G4-LA7
Page 64
G4-LA8
G4-LA9
Pages, 50, 51, 114
G4-LA10
G4-LA11
Page 114, 115
G4-LA12
Page 41
G4-LA13
Pages 42 to 44 and 113
G4-LA14
Data not available from KNB
Page 130 of 132
DMA and Indicators
G4-LA15
G4-LA16
Negative labour practices impacts on
supply chain
measured
Operations/ suppliers with high risk of
violation of human rights
% of security personnel trained in
organisation’s policies on human rights
measured
% operations with local community
engagement
Operations with significant negative
impacts on local communities
% operations with high risk of
corruption
Communication & training on
anti-corruption
% suppliers screened with impacts on
society criteria
Negative impacts on society in the
supply chain
No impacts on society criteria for
supplier screening
This is not evaluated
Page 47
HUMAN RIGHTS
G4-HR3
Page 47
G4-HR4
G4-HR7
SOCIETY
G4-SO1
G4-SO2
G4-SO3
Page 18
G4-SO4
G4-SO5
Page 18
G4-SO6
Page 27
G4-SO7
Page 36
G4-SO8
Page 36
G4-SO9
G4-SO10
G4-SO11
Not monitored/measured
Page 89
PRODUCT RESPONSIBILITY
G4-PR1
Not applicable
G4-PR2
Not applicable
Page 131 of 132
DMA and Indicators
G4-PR3
Not applicable
G4-PR4
Not applicable
G4-PR5
Pages 35
G4-PR6
Not applicable
G4-PR7
Page 35
G4-PR8
Page 35
G4-PR9
Page 35
Page 132 of 132

NCB Holdings Sustainability Report 9.9 MB

Transcription

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