Sustainability > Environment > Climate Change > Air Emission Management

Air Emission Management

Managing Emissions, Protecting Tomorrow

Air Emission Management

We recognise the challenges associated with air emissions from our mill operations, particularly emissions of dust, smoke from chimneys, and particulate matter from various operational activities.

To manage these emissions, our palm oil mills and plywood mill in Malaysia have strengthened compliance with the Environmental Quality (Clean Air) Regulations 2014. This includes the installation of additional air pollution control systems, such as electrostatic precipitators and cyclones, to reduce the release of harmful pollutants into the atmosphere.

We follow the emission limits set under the Second Schedule (Regulation 13) of the Clean Air Regulations 2014, which govern solid fuel combustion from fuel-burning equipment and incinerators not covered under the First Schedule.

Electrostatic Precipitator

To verify compliance, we engage accredited third-party laboratories to conduct regular stack emission monitoring. These tests measure key air pollutants to ensure they remain within the permitted limits.

The Group reports annual emissions of nitrogen oxides (NOₓ), sulphur oxides (SOₓ) and non-methane volatile organic compounds (NMVOC) measured in tonnes. These emissions are primarily attributed to fuel consumption from petrol and diesel usage across our operations.

Air Emission Unit of Measurement FY2023 FY2024 FY2025 Sources
NOx tonnes 294.8 405.5 455.0 Fuel Combustion
SOx tonnes 59.2 83.2 95.8 Fuel Combustion
NMVOC tonnes 20.2 26.2 14.1 Fuel Combustion

In addition to NOₓ, SOₓ and NMVOC, the Group also monitors volatile organic compounds (VOC) emissions.

Key insights
  • VOC emissions plummeted by 99.6%, falling from 435.00 tonnes in FY2023 to just 1.80 tonnes in FY2025.
  • The continuous decline permanently removed 433.20 tonnes of pollutants, representing a near-complete elimination of emissions.
  • Emissions dropped to 159.00 tonnes in FY2024, marking a 63.4% reduction from the FY2023 baseline.
What drove the reduction?
  • In FY2025, VOC emissions decreased significantly due to the cessation of operations at Cairnfield Sdn. Bhd. and the suspension of manufacturing activities at Loytape Industries Sdn. Bhd. following a fire incident. With only converting processes remaining at Loytape, the Group's industrial VOC emissions were substantially reduced.

These efforts aim to minimise fire hazards and mitigate haze risks, supporting the Group’s commitment to environmental protection and public health.

1

Prohibiting Open Burning

The Group enforces a strict zero-burning policy across all business segments, in line with the Environmental Quality Act 1974. Open burning, including for waste disposal and replanting activities, is strictly prohibited.

2

Awareness and Emergency Preparedness

Signage and routine reminders are used to raise awareness among workers and surrounding communities. Fire drills are conducted regularly to strengthen employee preparedness.

3

Forest Fire Prevention Measures

Ground patrols, watchtower monitoring, aerial surveillance, fire risk assessments, and the mapping of permanent water sources for emergency use.

 

Our FMU have conducted risk assessments to identify fire-prone forest types, with forest fire risks classified as follows:

Rating of Forest Fire Risk (within FMU)
Forest Fire Type Risk Level Remarks
Prescribed Fire Zero No prescribed burning is being implemented in our FMUs.
Structural Fire Low Firefighting measures – fire extinguishers and emergency response plan. Structure’s area usually located away from the forest on cleared area.
Wildfire Medium # Potential spread by shifting cultivation activities carried out by local people in crop land area.
Rating of Forest Fire Risk (outside FMU)
Forest Fire Type Risk Level Remarks
Prescribed Fire Zero No prescribed burning.
Structural Fire Low Isolated development and presence of firefighting measures.
Wildfire Medium # Potential spread from farming activities in Shifting Agriculture area.
NOTE: # Rating of risk as MEDIUM due to no record of any forest fire so far in Kapit Division.

In FY2025, zero (0) open burning incidents were reported across all four main business segments.

Compliance Status

All measured emissions are within the regulatory limits set under the Clean Air Regulations 2014 (Second Schedule, Regulation 13).

Emissions are monitored by accredited third-party labs through periodic stack testing.

Results reflect effective pollution control measures across our mill operations.

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