corporate social responsibility summary report 2010 1 · 2018-11-24 · 2 umw holdings berhad...

CORPORATE SOCIAL RESPONSIBILITY SUMMARY REPORT 2010 1

UMW HOLDINGS BERHAD2 CORPORATE SOCIAL RESPONSIBILITY SUMMARY REPORT 2010 3

CONTENT02 RATIONALE

04 - 05 PRESIDENT'S STATEMENT

06 - 07 UMW STRUCTURE

08 OUR ECONOMIC FOOTPRINT

09 - 11 AWARDS RECEIVED

12 - 14 WORKPLACE

15 - 18 MARKETPLACE

19 - 21 ENVIRONMENT

22 - 23 COMMUNITY

24 - 26 PERFORMANCE DATA

27 - 31 PROFILE DISCLOSURE

32 FEEDBACK AND COMMENTS

Cover photo is courtesy of Mr Adrian Lok, Treasurer of MERCY Malaysia Sabah Chapter 2010.

"Corporate Responsibility is something we undertake because

we want to and not because we have to!"

UMW’s Corporate Social Responsibility Report supplements our other publications, including the Group Annual Report, our internal staff magazine “U”, regular media releases and investor updates, as well as our Group and divisional websites. This report is also a follow-up to the Group’s maiden CSR report, launched in 2008.

The report brings together the Group’s economic, social and

environmental performance from 2007 to 2009. We have also

included some information for 2010 which was available before

the collection deadline.

The report covers the entire UMW Group, and those

subsidiaries that are included in Group consolidated financial

statements. In the Environment section of this report, we have

particularly concentrated on our Automotive Division, as it is

the Group’s largest profit contributor and accounts for around

60% of our physical assets and 70% of our workforce. We

have also included relevant environmental data from our other

divisions, to provide a more complete picture of the Group’s

environmental initiatives and performance.

In putting together this report, we have endeavoured

to provide information that is reliable, clear, accurate,

comparable, balanced and relevant. The report is structured

in reference to a number of reporting guardian/principle –

including ones set by Global Reporting Initiative (GRI), as well

as guidelines provided by the Putrajaya Committee on GLC

Transformation in the “Silver Book”, and Bursa Malaysia.

ABOUT THIS REPORT


President'sMessage

Dear Readers,

We are pleased to present UMW’s 2nd Corporate Social Responsibility Report, which brings together our economic, social and environmental performance from 2007 to 2009, covering a highly eventful period in the Group’s nearly century-old history.

Our successes over the years have been nothing short of spectacular, but in 2007, under the leadership of my predecessor, Dato’ Abdul Halim Harun, the UMW Group decided to raise the bar even higher through our rebranding exercise. We took on the rallying call of Beyond Boundaries and our corporate logo underwent a bold transformation; signifying the deeper and more meaningful changes that we need to embrace in order to become a truly, world class organisation. These are changes that not only affect the way we look and feel, walk and talk but how we think and act to enrich the lives of those around us, for years to come.

The rebranding exercise places an emphasis on creating a more vocal and prominent UMW, boosting our image internationally while creating more global business opportunities. It drives us to enhance our employee development and training as well as adopt a new, brand-aligned and comprehensive Corporate Social Responsibility Strategy. Our CSR strategy, is not just focused on funding charitable projects, but looks at best practices in CSR with a concentration on the marketplace, workplace, environment and the community.

Financially, the UMW Group reached new heights in 2008, achieving record revenue of RM12.8 billion. While our Automotive Division continued to be the main contributor to Group profits, our other divisions – Equipment, Manufacturing & Engineering and Oil & Gas also recorded strong growth in 2008, contributing to our record performance. Along with our increasingly large economic footprint, we wanted to find more ways in which we could share our good fortune with the community and so, we ended 2008 by formalising CSR partnership agreements with two established NGOs – MERCY Malaysia and Yayasan Anak Warisan Alam (YAWA). The partnerships enable the Group to move further beyond ad-hoc donations, as we jointly develop structured, long-term projects that will have a lasting, positive impact upon the community.

The year 2009 saw the world in the midst of an economic crisis. There were negative undertones everywhere and we witnessed its effect seeping into the markets that we operate in. By and large, the global downturn did have some impact on the Malaysian economy, and this generally resulted in lower demand for our products. As reported in our 2009 Annual Report, our economic performance in the 1st Quarter was reflective of these poor conditions. Fortunately, market sentiment began to turn around with each following quarter. Under the steerage of our experienced management team, together with a solid corporate governance framework, and over 10,000 committed staff, the Group was able to weather the economic storm and achieved an encouraging overall performance in the 2nd half of the year.

The tides of economic prosperity may rise and fall but we believe that through it all, there must be no compromise, no dwindling of commitment towards fulfilling our responsibilities towards our main stakeholders. Our main stakeholders are those with whom we spend most of our time – our customers and our employees - and those on whom our activities have a direct impact – our shareholders, our partners in joint ventures and the associated companies in which we operate. We make our customers’ enduring trust and support of us worthwhile, by continuing to provide them with good value products and excellent after-sales service. Under uncertain economic conditions, firm measures were taken to ensure that the Group remained highly competitive and profitable, in order to protect the livelihoods and welfare of our employees, as well as to deliver a positive Return on Investment to our shareholders and business partners. These measures included various cost-saving activities deferment of non-critical capital expenditure, enhancement of risk factor assessments for new investments and extraction of greater efficiency and productivity levels.

Of course, the economic crisis is not the only kind of crisis that we must deal with - Earth itself, is straining from the effects of rampant development and human activity. The consequences are far reaching – not only resulting in economic losses, but threatens our very existence on this planet. In light of the rising concerns regarding Climate Change, we understand the high level of focus and expectations that stakeholders have for businesses operating in environmentally “higher-risk” industries, a category in which UMW falls under. Climate Change is certainly not an issue to be taken lightly or ignored. Taking into account that Malaysia’s carbon emissions has grown faster than the global average in the last 2 decades; it is only fair to demand that we play our role in putting a stop to this worrying trend. In the environment section of this report, you will find the numerous steps and measures that we have taken to mitigate the environmental risks posed by our business. We have also made it a top priority for the next 3 years, to further streamline and standardise our environmental management systems. While our short-term environmental plans focus on doing “less harm”, in the long-run, we hope to shift the focus towards quite simply, acting for the greater good.

At UMW, we prize our contribution to the growth and development of Malaysia and the Rakyat, it’s people, as well as all the communities in which we operate – they are also stakeholders in our company. The report

will show that regardless of economic conditions, we continued to contribute to a range of community projects, particularly in the areas of education, healthcare and the environment. We did this by working side-by-side, shoulder-to-shoulder with our non-profit, non-political NGO partners, and where we are unable to provide more in terms of financial contributions, we offered our time and manpower support through the Group’s employee volunteer programme, The UMW Community Champions. Volunteerism is actually, a key component in our CSR strategy – where all employees, and not just a dedicated unit, are actively involved, within their own capacities and job functions, in furthering the CSR cause. We believe that the social awareness gained through volunteer work will in some way, help ensure that the task of addressing bottom line concerns and social responsibility are not merely balanced, but eventually, merged and fully integrated into all areas of our operations. This is our ultimate CSR dream – to have every company, division, unit and individual within the Group explore and develop the new thinking needed to respond to the enormous challenges, as well as the boundless opportunities, that confront our world.

This report is an invitation to you, the reader, to join us on the journey towards this dream. It is a journey that calls for a constant push against old mindsets that view CSR as a distraction from the fundamental economic role of business, towards one that sees a strong business case in CSR, where corporations can benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Your valuable feedback, together with our four core values of being Honourable, Vibrant, Unshakeable and Pioneering, will act as our guide through every twist and turn. We are confident of finding our way forward.

Datuk Syed Hisham b. Syed Wazir,President & Group CEO


AUTOMOTIVEUMW Toyota Motor Sdn. Bhd.

Assembly Services Sdn. Bhd.Automotive Industries Sendirian Berhad

Toyota Boshoku UMW Sdn. Bhd.

Otomobil Sejahtera Sdn. Bhd.

UMW Toyotsu Motors Sdn. Bhd.

Perusahaan Otomobil Kedua Sdn. Bhd.Perodua Sales Sdn. Bhd.

Perodua Auto Corporation Sdn. Bhd.Perodua Manufacturing Sdn. Bhd.

Perodua Engine Manufacturing Sdn. Bhd.

EQUIPMENTUMW Equipment Sdn. Bhd.

UMW (East Malaysia) Sdn. Bhd.

UMW Niugini Limited, Papua New Guinea

UMW Machinery Limited, Myanmar

UMW Engineering Services Limited, Myanmar

UMW Industries (1985) Sdn. Bhd.

UMW Industrial Power Sdn. Bhd.

UMW Equipment & Engineering Pte. Ltd., Singapore

UMW Equipment Systems Pte. Ltd., SingaporeUMW Equipment Systems (Vietnam) Company Limited, Vietnam

UMW Industrial Trading (Shanghai) Co., Ltd., China

UMW Industrial Equipment (Shanghai) Co., Ltd., China

Vision Fleet Equipment Leasing (Shanghai) Co., Ltd., China

SUPPORT OPERATIONSToyota Capital Malaysia Sdn. Bhd.

Seabanc Kredit Sdn. Bhd.Toyota Capital Acceptance Malaysia Sdn. Bhd.

Toyota Lease Malaysia Sdn. Bhd.

U-Insurance Sdn. Bhd.

U-TravelWide Sdn. Bhd.

U E-Technologies Sdn. Bhd.

Inobel Sdn. Bhd.

UMW-PNSB Development Sdn. Bhd.

OIL & GASUMW China Ventures (L) Ltd.WSP Holdings Limited, Cayman IslandsFirst Space Holdings Limited, British Virgin IslandsWuxi Seamless Oil Pipe Co., Ltd., China

UMW Oilfield International (L) Ltd.UMW Oilfield Commerce (Beijing) Co., Ltd, ChinaTubulars International Pte. Ltd., Singapore

UMW ACE (BVI) Ltd., British Virgin IslandsZhongyou BSS (Qinhuangdao) Petropipe Co., Ltd., China

UMW Linepipe (L) Ltd.Shanghai BSW Petro-pipe Co., Ltd., China

Shanghai Tube-Cote Petroleum Pipe Coating Co., Ltd., ChinaJiangsu Tube-Cote Shuguang Coating Co., Ltd., China

UMW Naga Two (L) Ltd.UMW Standard 1 Pte. Ltd., SingaporeUMW Standard 3 Pte. Ltd., Singapore

UMW Naga Three (L) Ltd.

UMW Coating Technologies (Tianjin) Co., Ltd., China

Vina Offshore Holdings Pte. Ltd., SingaporeVietnam Offshore Fabrication & Engineering Co. Ltd., VietnamUMW Deepnautic Pte. Ltd., SingaporeHelmsion Engineering Pte. Ltd., Singapore

Multicoat Coating Technologies Private Limited, India

Multicoat Surfaces Private Limited, India

UMW India Ventures (L) Ltd.United Seamless Tubulaar Private Limited, IndiaOil Country Tubular Limited, IndiaUMW Sher (L) Ltd.Jaybee Drilling Private Limited, India

UMW Oilpipe Services (Turkmenistan) Ltd., Turkmenistan

UMW Singapore Ventures Pte. Ltd., SingaporeUMW Marine and Offshore Pte. Ltd., SingaporeOffshore Construction Services Pte. Ltd., SingaporeSichuan Haihua Petroleum Steelpipe Co. Ltd., China

UMW Offshore Investment (L) Ltd.

OIL & GASPFP Holdings Pty. Ltd., AustraliaPFP (Aust) Holdings Pty. Ltd., AustraliaPFP (Aust) Pty. Ltd., AustraliaPFP Singapore Pte. Ltd., SingaporePFP (Shenzhen) Piping Materials Co., Ltd., ChinaPFP Taiwan Co., Ltd., TaiwanPFP (Malaysia) Sdn. Bhd.

OIL & GASSynergistic Generation Sdn. Bhd.SG Power Systems Sdn. Bhd.SG Engineering & Services Sdn. Bhd.

UMW Deepnautic Sdn. Bhd.

OIL & GASUMW Petrodril (Malaysia) Sdn. Bhd.UMW Pressure Control Sdn. Bhd.

UMW Fabritech Sdn. Bhd.

UMW Oilfield International (M) Sdn. Bhd.

UMW Oilpipe Services Sdn. Bhd.UOT (Thailand) Limited, ThailandOil-Tex (Thailand) Company Limited, Thailand

UMW Oilfield Services (Tianjin) Co., Limited, China

UMW Drilling Co. Ltd.

UMW JDC Drilling Sdn. Bhd.

UMW Standard Drilling Sdn. Bhd.

MANUFACTURING & ENGINEERINGUMW Advantech Sdn. Bhd.

UMW Auto Parts Sdn. Bhd.Lubetech Sdn. Bhd.UMW Pennzoil Distributors Sdn. Bhd.

KYB-UMW Malaysia Sdn. Bhd.KYB-UMW Steering Malaysia Sdn. Bhd.

Coldfusion Engineering Sdn. Bhd.

Lubritech International Holdings Limited, Hong KongLubritech Limited, China

MK Autocomponents LimitedSathya Auto Private Limited, IndiaCastwel Autoparts Private Limited, India

MK Automotive Industries LimitedUMW Dongshin Motech Private Limited, India

OIL & GASUMW Australia Ventures Sdn. Bhd.

UMW Oil & Gas Corporation Sdn. Bhd.

UMW Middle East Ventures Holding W.L.L., BahrainArabian Drilling Services L.L.C, Oman

UMW HOLDINGS BERHAD 090278-P

UMW CORPORATION SDN. BHD.009825-V

UMW OIL & GAS BERHAD798108-A

UMW PETROPIPE (L) LTD.LL03753

UMW MALAYSIANVENTURES SDN.BHD.

834177-K

UMW AUSTRALIAVENTURES (L) LTD.

LL06487

UMW S TRUCTURE


OUR ECONOMIC FOOTPRINTEconomic Data - Group Level

2009 2008 2007

RMm RMm RMm

Direct Economic Value Generated

Revenue 10,720.9 12,769.6 9,976.2

Other income 146.6 180.1 147.8

Gross value generated 10,867.5 12,949.7 10,124.0

Economic Value Distributed to:

Our Suppliers: Operating costs 9,411.7 11,113.3 8,877.4

Our Employees: Salaries and benefits 645.1 711.3 562.3

Our Lenders: Payments to lenders 34.8 48.1 35.3

The Government: Payments to governments:

Malaysia 187.8 290.8 170.9

Outside Malaysia 12.4 27.0 27.0

200.2 317.8 197.9

The Rakyat: Community Investments 3.8 5.8 4.3

Our Shareholders: Payments to shareholders 466.0 513.2 413.2

CONTRIBUTING TO THE WEALTH OF THE NATION

The UMW Group was ranked Top 5 of Malaysia’s Most Admired Companies by the Wall Street Journal Asia, in their 2009 Asia 200 Survey. This confirmed the Group’s excellence as a publicly-traded company, and our standing as one of Malaysia’s top corporate entities. As such, we are well aware of our large indirect economic impact in Malaysia, and our duty to contribute to the development of the Nation and its people.

Each year, UMW invests a portion of its financial wealth in public infrastructure, services and community projects that will benefit the local communities where we operate.. We have also invested our time in various community projects, through UMW’s employee-volunteer programme, the UMW Community Champions, the value of which is not captured in the table above. Further details on our involvement with community groups and social causes are available in the Community section of this report.

The Group did not receive any significant assistance from any national, regional or local governments of any of the countries where it operates. Our status as a Government Linked Company (GLC) is due to the fact that a substantial portion of Group shares is held by Government-led investment agencies,

in particular Permodalan Nasional Berhad (PNB) and the Employees Provident Fund (EPF).

The UMW Group however, is a Public Listed Company (PLC), with substantial private investors, both inside and outside Malaysia, and is managed as a private sector entity.

Local Supplies

UMW has diverse and global interests in the Automotive, Equipment, Manufacturing & Engineering and Oil & Gas industries. With a number of industrial trading operations under its belt, a sizeable portion of the Group’s revenues is derived from the sale of finished goods imported from overseas. The Group’s spending on local suppliers is estimated to account for approximately 30 - 40% of our total spend in 2009. This figure is based on data submitted by a sample group of companies, from across different segments and that are fairly representative of the Group as a whole. We will endeavour to provide you with more definitive figures in future reports.

AWARDS RECEIVEDYEAR COMPANY’S NAME AWARD RECEIVED AWARD PROVIDER

2010 KYB-UMW Malaysia Sdn Bhd OHSAS 18001:2007 Certification

Moody International Certification (Malaysia) Sdn Bhd

2010 UMW Toyota Motor Sdn Bhd Silver (Automotive) Putra Brand Awards

2010 KYB-UMW Malaysia Sdn Bhd 2009 Best Vendor Multinational Category

MODENAS

2010 UMW Fabritech Sdn. Bhd. ISO 9001 MOODY INTERNATIONAL CORP.ISO 14001

OHSAS 18001

MS 1722

2010 Offshore Construction Services Pte. Ltd.

Top Internationalising SME Recognition 2010

SME Growth Excellence Recognition

2010 UMW Petrodril (M) Sdn Bhd Achieves 1 Million Manhours With Zero (LTI) – Hydraulic Workover units UP Gait II & UP Gait III

Petronas Carigali Sdn Bhd

HSE Special Award in Recognition of the 250 Days of Free Total Recordable case

UMW Petrodril (M) Sdn Bhd

Appreciation for Contributions of NPT (Non Production Time) Reduction for FY 2009/10

2010 UMW Toyota Motor Sdn Bhd Best Performance Luxury Executive Sedan – Lexus LS Sport

Asian Auto:VCA Auto Industry Awards

2010 UMW Holdings Berhad Best Corporate/FI of the Year in Southeast Asia

Alpha South East Asia

2010 UMW Oilpipe Services Sdn. Bhd. Merit Award in Safety for Major Contractor Category FY2009/2010

PETRONAS Group HSE & SD


The Fastest Growing Internationalising Companies 2010 Award

DP Information NetworkPte. Ltd.

2010 UMW Equipment & Engineering Pte. Ltd.,Singapore

WORK-LIFE EXCELLENCE AWARDS - Work-Life Achiever Award

Ministry Of Manpower

COMMUNITY ENGAGEMENT- Appreciation for support

South-West Community Development Council

COMMUNITY ENGAGEMENT- Appreciation for support

Animal Concerns Research & Education Society (acres)

TOTAL DEFENSE AWARDS- Member of MiDAs League for five years

Ministry Of Defence

TOTAL DEFENSE AWARDS- Minister for Defence Award for five years term (Employer)

For further information on UMW financial results please refer to our Annual Reports athttp://www.umw.com.my/investors/annualreports/Pages/default.aspx


YEAR COMPANY’S NAME AWARD RECEIVED AWARD PROVIDER2010 Automotive Industries Sdn Bhd PERODUA Best Problem Solving Vendor

Award

2010 Assembly Services Sdn Bhd ISO 14001 Recertification AJA Global Malaysia Sdn Bhd.

2009 Automotive Industries Sdn Bhd (AISB)

Quality/Cost Appreciation Award

Honda

2009 UMW Industries (1985) Sdn Bhd Undisputed Performance Award for Toyota and BT for both equipments and parts & service.

Toyota Material Handling International (TMHI) award programme

Achieved Diamond Membership in the prestigious “TMHI Premier Club”


SME Growth Excellence for Most Promising and SME Growth Excellence for Internationalising

SME Growth Excellence Recognition

2009 UMW Corporation Sdn BhdUMW Equipment Sdn BhdUMW Industries (1985) Sdn BhdUMW Industrial Power Sdn BhdUMW Advantech Sdn BhdUMW Pennzoil Distributors Sdn Bhd/Lubetech Sdn Bhd

OHSAS 18001:2007 (Occupational Health & Safety Management System)

SIRIM QAS International Sdn Bhd

2009 UMW Toyota MotorSdn Bhd

Best Test Drive Experience for Lexus

Asian Auto:VCA Auto Industry Awards

2009 No 1 JD Power Asia Pacific Customer Service Index

JD Power Asia Pacific

2009 No 2 JD Power Asia Pacific Sales Satisfaction Index

2009 UMW JDC DrillingSdn Bhd

Naga 1 received the 9 years & 3 million Man-Hours With No Lost Time Incident (LTI) award

Petrolium Nasional Berhad (PETRONAS)

2009 Automotive IndustriesSdn Bhd (AISB)

Quality/Cost Appreciation Award

Honda (M) Sdn Bhd

Best of The Best Proton Kaizen Convention

Proton Holdings Berhad

2009 Toyota Motor Sdn Bhd Green Leadership Awards Asia Responsible Entrepreneurship Awards

2009 Synergistic Generation Sdn BhdEn Azhari Adnan

Most Promising Entrepreneurship Award 2009 for En. Azhari Adnan, the CEO and founder of SGSB.

Asia Pacific Entrepreneurship Awards

2009 UMW Holdings Berhad Top 5 Most Admired Companies Asia Wall Street Journal Asia

CIMA Enterprise Governance Awards 2009

Malaysian Business

Industry Excellence Award-Machinery Sector

Basis Publication Sdn Bhd & BERNAMA

2009 UMW Toyota MotorSdn Bhd

Camry (Large Sedan)Prius (Hybrid)

Autocar Asean Awards

YEAR COMPANY’S NAME AWARD RECEIVED AWARD PROVIDER2009 UMW Toyota Motor

Sdn Bhd1st - Vios J (Small Family Car)1st - Prius (Hybrid)3rd - Camry (Family Car)3rd – Lexus LS 460 (Super Saloon)

Asian Auto :Fuel Efficiency Awards

Car Of the YearPrius – Good Design

NST (CBT)

2009 UMW Equipment & Engineering Pte. Ltd., Singapore

TOTAL DEFENCE AWARDDistinguished Defence Partner Award (Employer)

Ministry of Defence

WORKPLACE SAFETY & HEALTH STANDARD- bizSAFE Level 3 Certificate

Workplace Safety & Health Council

PERFORMANCE AWARD- TMHI Parts Award

Toyota Material Handling Industrial

2009 UMW Equipment Sdn Bhd Distributor Excellent Award Massey Ferguson- Outstanding Performance 2009

Massey Ferguson

2009 Automotive Industries Sdn Bhd Quality Appreciation Award and Cost Appreciation Award

HONDA

Best Of The Best Kaizen Champion

PROTON

2009 Assembly Services Sdn Bhd JD Power IQS No. 1 for Innova JD Power Asia Pacific

2008 UMW Toyota Motor Sdn Bhd Best MPV of the year for INNOVA Model


No. 1 JD Power SSI Syndicated Study

Industry Excellence Award -Machinery Sector

Basis Publication Sdn Bhd & BERNAMA

No. 1 of JD Power Malaysia Customer Satisfaction Study


Best Value for MoneyExecutive Award- Altis Mode

Asian Auto – VCA Auto Industry Awards

2008 UMW Holdings Berhad Best Brand Conglomerate Awards 2007-2008

Asia Pacific Brands Foundation (APBF).

2008 Synergistic Generation Sdn Bhd Enterprise 50 award SMIDEC

2008 UMW Equipment & Engineering Pte. Ltd., Singapore

Distinguished Defence Partner Award (Employer)

Ministry of Defence

Singapore H.E.A.L.T.H. Awards- Gold Singapore HEALTH Awards

Health Promotion Board, Ministry Of Health

2008 Automotive Industries Sdn Bhd (AISB)

Quality Appreciation Award Honda

OHSAS 18001 (Occupational Health & Safety Management System)

Sirim QAS International Sdn Bhd

UMW HOLDINGS BERHAD12 CORPORATE SOCIAL RESPONSIBILITY SUMMARY REPORT 2010 13CORPORATE SOCIAL RESPONSIBILITY SUMMARY REPORT 2010

WORKPLACE

UMW HOLDINGS BERHAD

MANAGING THE CHALLENGESOF A LARGE WORKFORCE

THE UMW GROUP’S TREMENDOUS ECONOMIC GROWTH IN THE PAST DECADE HAS ALLOWED US TO SUCCESSFULLY RETAIN AND RECRUIT PEOPLE WHO HAVE THE SKILLS AND POTENTIAL TO DRIVE THE GROUP INTO THE NEXT PHASE OF ITS EVOLUTION – TOWARDS BECOMING A TRULY, WORLD-CLASS ORGANISATION. THE STRENGTH OF OUR GLOBAL WORKFORCE HAS CONTINUOUSLY INCREASED TO MEET OUR OPERATIONAL NEEDS – FROM 8,105 EMPLOYEES IN 2004 TO 10,328 EMPLOYEES IN 2009.

12 13

And then there is of course, our comprehensive Beyond Boundaries Training Programme for all UMW employees. As mentioned in our 2007 CSR Report, over 10,000 employees completed Phase 1 of the training programme, which acted as an introduction to The New UMW brand. Currently, Phase 2 of this training programme, which shows our employees how to live and breathe the UMW brand in their daily tasks, is 70% completed. We will continue to hone our Beyond Boundaries training sessions for many years to come as we understand that a brand should not live on a piece of paper, but in the hearts of our people.

WORKPLACE DIVERSITY

The UMW Group’s rallying call of Beyond Boundaries is about eliminating all barriers and achieving new heights. It is only expected then, that we take every measure to ensure that gender, ethnic origin, colour do not present itself as a barrier to our employees in reaching their full potential. Our recruitment practices focus on the things that truly make a difference – competencies, potential and most importantly, a strong desire to succeed together, as part of the UMW family.

Training and licensing of recruiters are ongoing and as a policy going forward, only licensed recruiters will be permitted to conduct selection of talents for UMW.

We are proud to maintain our record of zero-reported instances of discrimination in the workplace during the review period.

MULTICULTURAL COMMUNITY,MULTICULTURAL WORKPLACE

Malaysia, where our primary operations are located, is a richly diverse, multi-cultural nation. According to recent statistics, the ethnic composition of the general Malaysian population stands at 61.4% Bumiputera, 23.7% Chinese and 7.1% Indian. We are pleased to note that the diversity of the people of Malaysia

is reflected in the UMW workforce with 69.7% Bumiputera, 21.2% Chinese and 8.2% Indian. More important than numbers and figures however, is the spirit of mutual respect, understanding and unity that thrives in our workplace, and that we continue to foster amongst all our employees.

As UMW extends its reach further into the world, with a presence in 13 countries, we maintain our policy of providing employment opportunities to the local communities in which we operate and this includes our overseas operations. We allow citizens of these countries to head and manage these operations. Non-Malaysians account for 98.9% of our overseas workforce. This is our way of ensuring that the benefits of growth and development are fairly distributed, wherever we choose to carve a path forward.

GENDER EQUALITY

As an industrial trading group, we have traditionally been more attractive to men as a place of work and this is reflected in our records, which show on average, a 4:1 ratio of male to female employees. The Group itself however, places no restrictions in recruitment of women at any level in the organisation. Both men and women are also placed on a single pay scale and are entitled to the same pay and benefits appropriate to their respective job functions.

The percentage of women in management has risen from 28.6% in 2006 to 33.6% in 2009. The percentage of women in senior management has also increased from 4.9% in 2005 to 10.7% in 2009.

Going further, we believe that true gender equality in the workplace extends beyond equal pay policy and opportunities for career advancement. Gender Equality must not just be seen in terms of dollars and cents, but also in our day-to-day actions. We have a Sexual Harassment Prevention Policy in place and we have conducted talks and training sessions to raise our employees’ awareness of it. Our employees are

expected to honour the appropriate code of conduct at all times. It is our shared responsibility at UMW to ensure that our workplace remains a safe and comfortable place for all, where both male and female employees are treated with only the utmost professionalism, dignity and respect, as each plays an important role in helping the Group achieve greater heights of success.

MEASURING PERFORMANCE &PROMOTING EXCELLENCE

As UMW strives to deliver excellence in everything we do, a new KPI-driven approach in Performance Management was rolled out in 2009. The system and processes have been redesigned and training programmes were held to equip appraisers with the required skills for the new Performance Management approach. An average of 96% of all employees and 100% of all permanent employees received a formal performance appraisal, at least once a year, during the review period.

We are committed to creating a culture of life-long learning and continuous improvement amongst our people. To assist employees with meeting our standards of excellence, the UMW Group continues to offer numerous training and development programmes to our employees. One such example, as highlighted in our 2007 CSR Report, is the Executive Diploma in General Management (EDGM) Programme in collaboration with SEGi College and the University of Sunderland, UK. The programme is offered to talented UMW supervisors and executives who may not have had the chance to receive a tertiary education previously, or those who possess qualifications that are not in line with their current job scope. UMW fully sponsors the cost of our employees’ enrolment in the programme and we are pleased to report that 45 UMW employees have successfully completed the programme to date.

As with any large organisation, we face challenges in keeping our sense of connection to each other, orienting new staff, and building a deep understanding of the Group’s mission, vision and brand. Recognising this, our Human Capital and Branding Team have dedicated themselves to ensuring the organisation effectively creates the kinds of programmes, events and experiences that emphasise our values and culture as a Group, and that keep the lines of communication open between all levels of staff.

One such initiative is the Management Dialogue sessions. The premise of these sessions is simple but makes a world

of difference in helping us enhance internal communication. Each week, a member of UMW’s top management (Executive Directors) will host an intimate luncheon and invite 10 randomly selected employees from across all levels and divisions in the organisation to join them. The invitees include unionised staff such as our technicians and mechanics that may not have the chance to directly interact with top Management in the course of their day-to-day work. The sessions provide them with the opportunity to exchange and discuss work issues with Management in an open, relaxed and casual setting and helps Management keep in closer touch with developments on the ground.


From 2007 to 2009, UMW has spent over RM40 million in training and development efforts for our employees. On average, a UMW employee receives over 8 hours of training per year. Employee participation in training has also increased from 18.3% in 2006 to 29.4% in 2009.

We also have an education assistance scheme in place for employees who wish to further their education on a part-time basis, in any institution recognised by the Government and in a field related to their respective jobs. Course fees for a Masters programme are fully reimbursable up to a limit of RM 15,000. Reimbursements for Degree/Diploma programmes as well as Professional Certificates are also available.

COLLECTIVE AGREEMENTS

In UMW’s 2007 CSR Report, we discussed the terms of our Collective Agreements which included higher salary levels, wider salary bands and several improved non-monetary benefits for union members. The agreements were initially signed to cover the period from 2006 to 2008 and were due for re-negotiations in 2009. However, considering the uncertain global economic conditions of 2009, Management and union representatives mutually agreed that it was in the best interest of all parties to extend the agreements until 2011. Even in challenging times, we remain Unshakeable in our efforts to move forward together, as a united UMW Group.

As previously reported, union members are typically given a minimum notice of 4 weeks on operational changes. UMW continues to respect employees’ rights to freedom of association and to collective bargaining as provided by the law within our operating countries.

REWARDS & BENEFITS FOR FULL-TIME EMPLOYEES

Salaries and wages at UMW are at a level that is at par, if not above the level of pay across the overall Malaysian industrial sector. We are also a leader at providing other benefits that are above industry average. We offer more than 20 additional benefits to our full-time employees and they include the following:

i. Medical Coverage for employees, their spouse and children with unlimited outpatient clinical treatment, regardless of job grade. ii. Reimbursement for dental treatment for employees, their spouse and children.iii. Above minimum mandatory employer contribution to the national pension scheme, the Employees Provident Fund (EPF) or another defined benefit schemeiv. Maternity, Compassionate/Congratulatory and Pilgrimage Leave on top of annual leave.

The UMW Group considers our employees’ families as a part of our own. Therefore, other than extending medical and dental treatment coverage to them, we also have an Education Subsidy Scheme for the children of eligible employees.

Other schemes that our employees can benefit from include the Personal Computer Loan Scheme, Home Ownership Scheme, Car Loan Interest Subsidy and Staff Car Purchase Discount Scheme. At UMW, we take every effort to be sensitive and in-tune with our employees’ changing needs. When the price of petrol in Malaysia sharply rose in 2008, financial contributions were made to employees with monthly salary of less than RM 3,500. The contribution is meant to help ease the burden of a higher cost of living.

Additionally, to encourage a healthy work-life balance amongst our employees, we regularly organise wholesome sporting and recreational activities for them to partake in. This includes subsidised white water rafting expeditions, snorkelling trips, yoga classes and sporting tournaments ranging from badminton to folk games.

OCCUPATIONAL SAFETY & HEALTH (OSH)

The UMW Group is fully committed to all health, safety and environmental (HSE) programmes and will take all necessary measures to ensure a safe and healthy working environment for its employees, as stipulated in the Group Safety & Health policy. As required by law, our OSH committees have a 50-50 composition of joint managerial-employee representatives.

In 2009, UMW conducted OHSAS 18001 Awareness Briefings for more than 1000 employees. We are proud to note that in May of that year, the following 6 companies in the Group were OHSAS 18001:2007 certified by SIRIM QAS International:

1. UMW Corporation Sdn Bhd2. UMW Equipment Sdn Bhd3. UMW Industries (1985) Sdn Bhd4. UMW Industrial Power Sdn Bhd5. UMW Pennzoil Distributors Sdn Bhd6. UMW Advantech Sdn Bhd

Naga 1, the semi-submersible drilling rig owned by UMW JDC Drilling Sdn Bhd, reached a remarkable milestone in 2009 by clocking in 9 years and 3 million man-hours with zero lost time incidents. This was a record achievement in the Malaysian oil & gas industry, as recognised by Petroliam Nasional Berhad.

Group-wide safety audits and re-audit activities are conducted on a regular basis to assist companies in identifying and reporting potential safety and health hazards, as well as to ensure that they comply with regulations and requirements.

As part of UMW’s larger Safety Awareness Programme, we continuously organise various talks and training sessions covering a range of safety and health-related issues and this includes basic fire safety, chemical spillage, handling gas and machine safety.

MARKETPLACEAT UMW, WE BELIEVE THAT OUR ENDURING COMMITMENT TO INTEGRITY AND TRUST, RESULTS IN QUALITY PRODUCTS AND SERVICES THAT STAND THE TEST OF TIME. IN ALL THE STAGES OF OUR PRODUCT LIFE CYCLE – WHICH INCLUDE MANUFACTURING & PRODUCTION, MARKETING & PROMOTION, STORAGE DISTRIBUTION & SUPPLY, USE & SERVICE AS WELL AS DISPOSAL, REUSE & RECYCLING - WE STRIVE TO LIVE UP TO THE HIGH STANDARDS THAT WE HAVE SET FOR OURSELVES, AS WELL AS OUR CUSTOMERS’ EQUALLY HIGH EXPECTATIONS.

MANUFACTURING & PRODUCTION

The Group’s manufacturing companies employ world class technologies, developed together with our partners, to produce products that are safe, effective and reliable.

Assembly Services Sdn. Bhd (ASSB) is the manufacturer of the Toyota Vios, Hilux, Innova, as well as selected models of Hino and Daihatsu vehicles for the local market. The company also manufactures the Toyota Hiace for both the local market, and export to Thailand. These vehicles, are manufactured with a range of built-in active and passive safety features, and product

information and specifications are provided in full for each model on our websites . In its continuous pursuit of quality, the company has seen in Quality Control Circle (QCC) activities, from only a few participating teams in the initial stages, to 421 teams in 2009. The company also set-up the ASSB Vendor Development Programme to improve the production processes, efficiency and productivity of its Toyota parts suppliers. ASSB’s commitment towards quality and improvement of production systems has also garnered them numerous awards along the way. This includes the Extremely Excellent Manufacturing Quality Award from Toyota Motor Corporation, Japan, which recognises the company’s high-level achievement in terms of

OFFERING QUALITY PRODUCTSAND SERVICES

CORPORATE SOSIAL RESPONSIBILITY SUMMARY REPORT 2010 15

UMW HOLDINGS BERHAD16 CORPORATE SOCIAL RESPONSIBILITY SUMMARY REPORT 2010 17UMW HOLDINGS BERHAD16

our existing automotive sales and service centres to provide 3S facilities. New service centres have also been opened during the review period, as part of our efforts to improve accessibility to customers and enhance service network around the country. In 2009, a new historical record of more than 1 million vehicles was serviced throughout the country.

In our Equipment Division, we encourage clients to take operating leases rather than to purchase heavy equipment, such as Komatsu tractors. This helps us ensure that the equipment is optimally maintained and limits the risk of injury to operators and others who work within the area. A team of our service experts is always at hand throughout the countries in which we distribute this equipment.

UMW JDC Drilling Sdn. Bhd, provides contract offshore oil& gas drilling services through our semi-submersible oil rig, NAGA 1, which is leased to oil exploration and production companies. The rig was successfully refurbished and upgraded in 2008. The upgrade further enhanced its competitiveness and extended its lifespan so as to maintain its excellent safety track record of zero loss time incidents. In 2009, NAGA 1 clocked 365 working days in Malaysia and Vietnam, and achieved 3 million man-hours or nine (9) years without lost time incidents. For its outstanding performance, the company received awards and recognition from the International Association of Drilling Contractors and Petronas.

DISPOSAL, REUSE OR RECYCLING

Operating leases allow us to maintain control on the disposal, reuse and recycling of our heavy equipment, in accordance with best practice and the

protocols of our major suppliers. UMW Toyota Motor is the only motorcar distributor in the country, to have a full-fledged, pre-owned vehicles operation, known as TopMark. To date, TopMark has a total of six (6) outlets in Peninsular Malaysia, with plans to expand the business further in the near future. TopMark operations provide customers with complete peace of mind when buying or trading-in used cars. In response to recent concerns about the “cut & joined” practice of certain unscrupulous car dealers, all pre-owned cars that come through our TopMark yards are given official clearance by Puspakom, Malaysia’s first computerised vehicle test centre and the authority for vehicle roadworthiness. Warranty and complimentary service vouchers are also given out for selected cars from Toyota, Perodua, Proton, Honda, Nissan, Mitsubishi, amongst others.

SPECIAL SERVICE CAMPAIGN FOR TOYOTA PRIUS, LEXUS LS460L AND LEXUS LS460 SPORT MODEL

In regard to the major recall of Toyota cars in the United States of America, we would like to reassure our customers that relevant components used in Toyota models sold in Malaysia are manufactured by different suppliers from those in the US market. An exception to this was the Toyota Prius, imported into Malaysia as Completely Built-Up Units (“CBUs”). Recognising this fact, UMW Toyota Motor conducted a special service campaign to carry out the necessary corrective measures on the 60+ affected Prius units sold in the country prior to the service campaign .

In July 2010, UMW Toyota Motor announced that it would conduct a Special Service Campaign for its Lexus

LS customers to address the temporary steering wheel off-centre condition that may develop under a specific driving manoeuvre. This condition will not occur during conventional driving, such as changing lanes or turning at intersections. There are less than 10 units of Lexus LS460L and LS460 Sport affected and we have taken proactive measures to contact all its owners.

We extend our sincere apology to our Toyota and Lexus customers for the inconvenience caused by this issue. For customers who have booked their Toyota Prius, Lexus LS460L or Lexus LS460 sport, or are interested in purchasing them, we give our assurance that all models will go through corrective measures before delivery.

Our partner, Toyota Motor Corporation in Japan has disclosed full details on the quality issue in their 2010 Sustainability Report, which can be downloaded at http//www.toyota.com. They view these issues an opportunity for renewal and improvement, and we support them in their efforts to proactively meet the challenge of redressing the problems. Together, we will continue to issue disclosing newly found facts and other relevant information over the next year and beyond. The safety and trust of our customers remain our highest priority.

HUMAN RIGHTS

UMW strives to conduct business in line with fundamental human rights norms, as outlined in the Universal Declaration of Human Rights. The Group’s Core Values, which all employees have received training on, call for us to treat everyone with respect and dignity, and covers policies and procedures that are related to the protection of human rights. All of our significant suppliers,

global shipping target and zero-defect flowout. The Toyota Innova has the distinction of being ranked No.1 in the JD Power Initial Quality Study (MPV Segment) for two (2) consecutive years.

Automotive Industries Sdn. Bhd. (AISB) manufactures and supply automotive components such as exhaust systems, instrument panel reinforcements, catalytic converters, and seat frames amongst others. During the review period, the company continued to achieve excellence and received awards for its quality work, and this includes the Quality Appreciation Award from Honda Malaysia. The company also continued to receive TS16949 Quality Management System certification, along with another one of the Group’s companies, KYB-UMW Malaysia Sdn. Bhd/ KYB-UMW Steering Malaysia Sdn. Bhd, the largest shock absorber and power steering pump manufacturers in Malaysia.

Over the years, the UMW Group has increased the number of business units which are managed to international quality and management standards and have successfully extended the coverage of formal certification across most of our main operations. Our youngest business division, the Oil & Gas Division, is no exception. During the review period, three of our OCTG and Line Pipes manufacturing companies - Zhongyou BSS (Qinhuangdao) Petropipe Co., Ltd., China; Shanghai BSW Petro-Pipe Co., Ltd., China and WSP Holdings Limited, China; - received ISO 9001:2000 certification.

MARKETING & PROMOTION

The Group has no specific code related specifically to marketing communications but all employees are expected to observe a voluntary code of conduct that lives up to the Group’s four core values of being Honourable, Vibrant, Unshakeable and Pioneering. The Group however, has a specific policy not to sponsor any political party. The Group does not promote or sell any products that is legally prohibited or under any sort of ban, in any of the markets in which it is engaged.

For our industrial trading operations, product labelling is largely conducted by our international partners and suppliers, who also provide further product information through sales brochures and technical manuals. To minimise any difficulties in using product information that are in a foreign language, UMW provides a Bahasa Malaysia translation for our local customers. Product information is also shared through regular trade and public information events.

The Group is highly aware of the obvious hazards associated with the misuse of industrial equipment and as such, our marketing and promotion practices include training for our customers and their staff, to familiarise them with different modes of operation of our products and encourage a “Safety First” attitude. Regular training sessions are also conducted as part of our after-sales service. For example, from 2007 to 2009, a total of 12,670 customers followed a forklift training programme conducted by UMW Industries (1985) Sdn Bhd. From that number, 24% of training sessions were provided free-of-charge to our customers, as part of our commitment towards the highest standards of customer care and safety. UMW Industries was awarded “Pembangunan Sumber Malaysia Berhad Award” in the Training Provider Category for the year 2008.

STORAGE, DISTRIBUTIONAND SUPPLY

As mentioned in our 2007 CSR Report, the Group maintains large yards and warehouse hangars especially set aside or built for the safekeeping and storage of our products. These facilities protect the product from damage that could impair safe operation after sale, prevent it from causing damage to other equipment or harm personnel and are managed to strictly comply with occupational health and safety standards.

UMW Toyota Motor Sdn. Bhd., the exclusive distributor of Toyota and Lexus cars in Malaysia, has also taken firm measures to reduce CO2 emissions in logistics activities, such as parts and

vehicle distribution. Details can be found in the Environment section of this report.

USE AND CUSTOMER SERVICE

UMW is firmly conscious of the fact that the sale of a product is only the beginning, and not the end of our relationship and responsibilities towards our customers. As such, we have in place, a professional team of customer service personnel in all Divisions, who aims to go further than standard sales and after-sales service. Furthermore, as a guarantee of our long-term commitment to our customers, the Group regularly provide substantial provisions in our financial accounts to cover warranties, although we rarely use more than 50% of each year’s provision. We believe that this is a testament to our honesty and commitment to our products’ quality and safety. In the case where items do somehow fail to perform satisfactorily, we swiftly undertake to repair or replace them.

In 2008, UMW Toyota Motor captured the pole position in both the independent JD Power Customer Satisfaction Index (CSI), as well as the JD Power Sales Satisfaction Index (SSI), as a result of its significant investments in its customer satisfaction systems. The achievement is a reflection of our commitment to the “Customer First” philosophy. We continuously upgrade


contractors and partners are also expected to conform to the Core Values of the Group.

UMW does not use child labour or forced labour of any form and we do not tolerate such abuses within the Group. Our operations also do not infringe on the rights of indigenous people and there have been no violations of this kind during the review period.

OPERATIONS IN MYANMAR

UMW operates mainly as a distributor of heavy equipment and machinery in Myanmar, which is recognised as a country of particular concern. Our principal suppliers’ products, which are used in the construction and agricultural sector, have been available in the country since 1978, long before UMW came into the picture. However, the previous distributor of these products was badly affected by the 1997 ASEAN financial crisis and their consequent plan to cease operation in the country put the livelihoods of approximately 50 local employees at stake. On 16th September 1998, our principal suppliers requested that UMW take over the role as exclusive distributor of their products in Myanmar and revive a failing business operation. As disclosed in our 2007 CSR Report as well as our Annual Reports, our operations in Myanmar are small and do not provide a material contribution to the overall economic value of the Group.

UMW continuously and closely monitors developments and risks in Myanmar. Nonetheless, we have decided to continue operations in Myanmar as we feel obligated to support our workforce in the country. Under our management, the number of employees has increased from approximately 50 to 83 people, reflecting our efforts to create more respectable job opportunities for the local community. Since October 2005, the UMW Myanmar operations have been run by 100% Myanmar nationals. When necessary, a General Manager from our Equipment Division in Malaysia flies in, to provide guidance

and support for the local management team. We recognise that labour unions are not allowed under local law, significantly risking our employees’ right to freedom of association and collective bargaining. We have always however, strived to listen and respond to the issues which our employees value in terms of their daily lives. We have taken steps to increase the standard of living of our Myanmar employees and provide them with protection and benefits that are comparable to that received by our employees worldwide.

Under the previous management, employees received an average salary of Kyat 20,000/-, equivalent to approximately USD 50.00. The average salary under UMW is equivalent toUSD 241.00. The added employment benefits we offer, which include medical treatments and insurance coverage, is also above the local industry average. Furthermore, we have regularly given opportunities to our employees in Myanmar to attend overseas training programmes which will assist in their professional growth, leading to greater career opportunities. We believe that our presence in Myanmar provide respectable employment opportunities for the people and guarantees them and their families, a livelihood that they otherwise might not have.

UMW is also always ready to assist the larger community in times of need. In 2008, the Group donated RM 75,000 to the MERCY Malaysia Humanitarian Fund, which was set up to provide medical aid and humanitarian relief for the survivors of Cyclone Nargis and includes safe, portable water as well as sanitation and hygiene programmes to contain the spread of disease. We also granted the humanitarian NGO, MERCY Malaysia, use of our warehouses in Myanmar as an operations base for on-the-ground relief efforts.

As a business entity, the UMW Group strives to remain apolitical in our dealings. We view our presence in Myanmar not as a reflection of our support for any regime or political party, but of our support for the everyday people of the country.

REALISING OUR GREEN AMBITION

ENVIRONMENTAT UMW, WE TAKE ENVIRONMENTAL RESPONSIBILITY SERIOUSLY AND WE VIEW CLIMATE CHANGE AS MORE THAN JUST THE CURRENT BUSINESS BUZZWORD. IN TACKLING ENVIRONMENTAL ISSUES, WE WANTED TO ADOPT AN APPROACH THAT WAS MORE THAN JUST A PUBLIC RELATIONS EXERCISE; WE UNDERSTAND THAT A GENUINE GREEN AGENDA REQUIRES MEANINGFUL CHANGES TO THE WAY WE ACTUALLY RUN AND MANAGE OUR BUSINESS OPERATIONS. IN THIS SECTION OF THE REPORT, WE ARE PLEASED TO BE ABLE TO SHARE WITH YOU THE PROGRESS THAT WE HAVE MADE SO FAR, ON OUR JOURNEY TOWARDS REALISING OUR GREEN AMBITION.

AWARENESS & TRAINING

We believe that awareness is the first step in pushing environmental sustainability to the top of organisational priorites. UMW’s Environmental Awareness & Training programmes cover three different target groups – our own employees; our suppliers, dealers & business partners; and the larger community.

To raise awareness of environmental issues amongst its staff members, ASSB organised a number of initiatives including a free screening of the film-documentary “An Inconvenient Truth” for employees, their families and friends; a “Fill and Win” environmental survey to help in policy development in which 348 staff responded; a Top 10 Best Green Suggestion programme and a “Cash for Trash Recycling Programme.”

CORPORATE SOCIAL RESPONSIBILITY SUMMARY REPORT 2010 19UMW HOLDINGS BERHAD18

"NEW QUOTE : : Chia grew his company on the principle that good business is rooted deep in the solid ground of customer satisfaction."


• For Employees In 2009, the UMW Group began organising Dialogue Sessions to provide our employees with a general overview of the impact of Climate Change – the risks and opportunities that the issue presents not only to our organisation, but to our employees’ individual lives. Currently, attendance at environmental talks and briefings is compulsory for all Motor Group employees and we are planning to extend this rule to include the Non-Motor Group.

To complement the dialogue sessions, the Group frequently organises hands-on environmental activities such as tree planting and beach clean-ups for employees and their families to participate in.

Additionally, the Group has conducted a number of environmental specialist training programmes for selected staff – covering topics such as EMS auditing, Energy Efficiency and Scheduled Waste Regulations Management.

• For Suppliers, Dealers & Business PartnersTo reduce the Group’s environmental impact across the value chain, UMW has taken steps to promote environmental responsibility to the other organisations that we work with. The Group’s Automotive Division regularly conducts CO2 reduction training and Environmental Best Practices Sharing Forums for its suppliers, dealers and partners. These parties are also encouraged to adhere to the core requirements of the Dealers Environmental Risk Assessment Programme (DERAP). The requirement includes abidance to environmental laws and regulations, proper management of hazardous wastes, proper treatment of drainage water and proper HFC/CFC recovery. We are pleased to announce that DERAP compliance amongst dealers has risen from 66.7% in 2007 to 86.0% in 2009.

• For the CommunityUMW has continuously enhanced its efforts to share its knowledge with the wider community, particularly secondary school students, through a number of environmental education programmes. For further details on our environmental education programmes, please refer to the Community section of this report on page 22.

ACTION & MEASUREMENT

Going beyond awareness programmes, some of the key actions we have taken to reduce the environmental impact of our operations include:

• EnhancingenergyefficiencytoreduceCO2 emissions • Promotingtheeffectiveuseofresources& reducing waste• Reducingwaterconsumption& Groundwater Contamination Prevention• Eliminatingtheuseof4 SoCs • ReducingVOCemissions

• AdoptingInternationalEnvironmentalStandards

• Enhancing Energy Efficiency to Reduce CO2 Emissions

In light of the rising concerns regarding Climate Change, the Group has voluntarily taken measures to reduce our GHG emissions. We believe that enhancing fuel and energy efficiency – in our facilities, as well as logistics activities – presents us with a significant opportunity to reduce our CO2 emissions.

At Assembly Services Sdn Bhd (ASSB), which is our automotive manufacturing/ assembly plant, we regularly conduct energy audits to eliminate wastage from non-essential lighting. We have improved compressed air efficiency by modifying the system to suit supply on demand, and optimised start-up and shut-down of production processes and equipment. Over the course of four years, these measures have led to a 21.76% reduction in CO2 emissions from production activities at ASSB.

KYB-UMW Malaysia Sdn Bhd, which manufactures shock absorbers and steering pumps, has also taken steps to enhance energy efficiency in its plant and offices. These measures include the installation of energy-saving devices for lights, air-conditioning and plant equipment, as well as repairing and preventing air leaks. As a result, CO2 emission for KYB-UMW in 2009 was down 19% (98.5 tonnes-CO2) from 2007.

At UMW Advantech Sdn. Bhd’s (UASB) automotive components manufacturing plant, electricity consumption is monitored using the power factor index. A higher power factor indicates greater energy efficiency and UASB managed to achieve a power factor above 90%.

Our Carbon Footprint does not begin, nor does it end in our manufacturing plants. Fuel and energy consumed through our logistics activities, is also a significant contributor to our total CO2 emissions. Recognising this fact, UMW Toyota Motor took firm measures in 2009 to reduce CO2 emissions from the transportation of finished vehicles, service parts and export parts to its dealers. Shorter transport routes were identified, while the number of trips required to deliver these items were also successfully reduced. These efforts have

Transportation/ Distribution Of

2008 2009 % of CO2 reductionTon CO2 Ton CO2

Service Parts 497.6 415.6 16.5

Finished Vehicles

3289.5 3108.0 5.5

Export Parts 810.7 683.5 15.7

*CO2 emission factor for Diesel truck = 2.62kg CO2/liter

CO2 Emissions from Production Activitiesat ASSB PlantAudience engagement

Measured in millions1.21.3

2.0

8182

82

2008–092007–082006–07

Customer satisfaction Score from 0–100

2008–092007–082006–07

Audience engagementMeasured in millions

1.21.3

2.0

8182

82

2008–092007–082006–07


2008–092007–082006–07

2009

2010

2008

2007

400300200

kgCO2/unit

1000

Year

yielded encouraging results and is detailed in the table below:

• Promoting the Effective Use of Resources & Reducing Waste

We apply the 3R principle – Reduce, Reuse, Recycle – when it comes to managing waste generated by our operations. We have taken measures to optimise the use of resources and prevent unnecessary wastage in our production processes. Recycle initiatives have been introduced in various forms throughout the Group – in both production/manufacturing and non-manufacturing activities. Non-recyclables are sent to Kualiti Alam for final disposal, as per legal requirements. In 2007, UMW Toyota Motor made the decision to replace disposable cardboard boxes, previously used in the distribution of automotive service parts to local and overseas dealers, with returnable and reusable containers. The impact of this initiative is shown in the table below:

• Reducing Water Consumption & Groundwater Contamination Prevention

The chart below shows the water consumption rate at ASSB.

The increase in 2008 and 2009 was due to product quality improvement initiatives undertaken. However, we understand that water conservation is an important part of environmental management and we will continue to enhance

and implement measures to reduce our water consumption. Where feasible, we have promoted reuse/recycling of water in our plant. We also regularly conduct tests to check for leakages and subsequently, eliminate them. For 2010, ASSB’s water consumption target rate was initially set at 5.09 m3/unit but by the end of the financial year, we bettered that goal by reducing our water consumption to 4.73 m3/unit.

We also continuously enhanced our efforts to prevent soil/groundwater contamination by upgrading targeted chemical facilities. We installed 7 groundwater monitoring wells to monitor soil contamination regularly, and initial soil investigation data show zero cases of contamination since 2008.

• Eliminating the use of 4 SoCs ASSB has been declared free of 4 SOCs (Substances of Concern) – lead, mercury, cadmium and hexavalent chromium. This was achieved with the support and co-operation of suppliers, who were audited earlier in the year to confirm SOC-free management status.

• Reducing VOC emissions At our ASSB plant, we reduced our VOC (Volatile Organic Compounds) emissions by making changes and improvements to our painting process. Where possible, we have replaced the use of thinners with alternative materials and introduced medium-solids paint with reduced VOC content. Our painting process is facilitated by robotic equipment, resulting in improved paint transfer and less paint wastage. All these actions have lead to a 15.5% reduction in VOC emissions, over the course of the reporting period.

• Adopting International Environmental Standards As a matter of policy, the UMW Group strives to ensure that our environmental management systems conform to international standards and best practices. Our main operations, as well as most of our sales and distribution outlets, are ISO140001 certified and recertification is a routine and ongoing process.

Additionally, ASSB’s environmental performance is also managed according to standards and guidelines set by the Toyota EMS. The Toyota EMS is used by all Toyota Global Affiliates as a higher level environmental management system for manufacturing activities.

Packaging 2008 2009 % of CO2

reductionTon CO2 Ton CO2

Service Parts (local dealers)

32.07 22.8 28.91

Export Parts 379.54 353.71 6.8

ASSB VOC EmissionsAudience engagementMeasured in millions

1.21.3

2.0

8182

82

2008–092007–082006–07


2008–092007–082006–07


1.21.3

2.0

8182

82

2008–092007–082006–07


2008–092007–082006–07

2009

2010

2008

2007

706560 g/m25550

Year

ASSB Water ConsumtionAudience engagementMeasured in millions

1.21.3

2.0

8182

82

2008–092007–082006–07


2008–092007–082006–07


1.21.3

2.0

8182

82

2008–092007–082006–07


2008–092007–082006–07

2009

2010

2008

2007

64 m3/unit20

Year


UMW also supports other NGOs working in the area of healthcare. Our involvement in the Majlis Kanser National (MAKNA) payroll giving scheme entered its 10th year in 2009. UMW also made contributions to the Cancerlink Foundation, Yayasan Jantung Malaysia, and Badan Kebajikan Thalassemia Malaysia. Additionally, we conducted Blood Donation Drives to provide our employees with yet another opportunity to participate in community service.

EDUCATION & THE ENVIRONMENTIn the course of fulfilling our responsibilities towards society, UMW has not forgotten the need to care for the environment. In 2009, we pushed further with green initiatives at the workplace through recycling programmes, conserving water and energy use in our office buildings and most importantly, educating all our 10,000 employees on eco-friendly personal habits and practices.

We recognise that education plays a key role in addressing the issue of climate change and other ecological problems. The Group constantly strived to educate not only ourselves on the environment, but also our youth. In February 2009, we launched the UMW Green Challenge – an environmental education and conservation programme for secondary school students.

Over the course of a year, participating teams were given financial grants and guidance to rehabilitate the eco-system of a neglected green area or public park close to their schools. Joining UMW as a partner and co-organiser of the programme is the children’s environment heritage foundation, Yayasan Anak Warisan Alam (YAWA). The programme also has the support and cooperation of the Ministry of Education, Majlis Bandaraya Shah Alam, Majlis Perbandaran Klang, the Department of Environment, the Forestry Department and the local community.

At the same time, UMW Toyota Motor Sdn. Bhd continued to run its Toyota Eco Youth (TEY) programme, in collaboration with the Ministry of Education and also introduced the Toyota Eco Rangers (TER) programme in 2008.

The Toyota Eco Youth programme, held annually since 2001, sees participating secondary school students apply scientific skills and knowledge to solve environmental problems that exist in their school compounds. Between the years 2007 – 2009, the programme covered a total of 528 students from 48 different schools around Malaysia.The Toyota Eco Rangers programme aims to foster closer ties between urban students and Mother Nature, by being create a “mini forest” in their own school compounds

NURTURING POTENTIAL & DELIVERING ExCELLENCEThe UMW Group remained involved with the PINTAR programme, a joint venture between Government-Linked Companies, the Ministry of Finance and the Ministry of Education, by “adopting” 4 primary schools – 2 in Penang, and 1 each in Perak and Kelantan. We support our adopted schools by organising motivational workshops, sponsoring tuition and educational materials, among other things. A total of 1529 students benefitted from our 2009 PINTAR activities. We are also proud to note that in 2009, our adopted school, Sek Keb Kampong Laut in Kelantan recorded a 300% increase from the previous year, in students achieving straight As for UPSR. These results are in line with the programme’s objective of improving student academic performance in rural areas. For 2010, the number of schools adopted by UMW under the PINTAR Programme has grown from 4 to 7 schools.

The UMW PMR Achievement Awards has been held on an annual basis since 1994. The programme rewards PMR high achievers, from underprivileged backgrounds, with unit trusts. The UMW PMR Achievement Award is our way of promoting academic excellence, as well as encouraging students to begin responsible saving for their future.

UMW also made a 5-year RM2 million pledge to Tun Ismail Mohamed Ali Foundation, an organisation which provides scholarships for exceptional students to enrol in world-renowned universities and which sponsors research programmes at local universities.

Additionally, UMW has had a long history of not only nurturing academic potential in our youth, but we have also always encouraged children to develop healthy, extra-curricular interests. As such, the school band of Sekolah Menengah Kebangsaan Sultan Salahuddin Abdul Aziz Shah (SSAAS), Shah continued to receive support from UMW, as it has in the last 27 years. In 2009, UMW provided the band with brand new uniforms worth RM 15,000, on top of the usual annual grant

of RM 5,000. The SMK SSAAS School Band won 2nd place in Category B of the Selangor School Band Competition 2009 and we are proud of their achievement.

OTHER SOCIAL & CHARITABLE ACTIVITIESOf course, UMW’s support of the school band was not the only thing that brought music to our ears – there is also the annual Toyota Classics Concert. In total, the Toyota Classics Concert Series organised in Malaysia have raised and donated RM 5.73 million to 43 different charitable organisations since 1990.

UMW is also pleased to support the Malaysian Crime Prevention Foundation (MCPF), through a 5-year RM 50,000 pledge.

Other than our anchor CSR programmes and long-term commitments, UMW also rewards small grants and special donations to the community on a case-by-case basis. These small donations assist many types of community groups including children, the elderly and disabled. We also support other forms of community activity such as sports clubs.

CONCLUSIONWe have always said that at UMW, Corporate Social Responsibility is not something we do because we have to; but because we want to. Our Corporate Social Responsibility initiatives include charity but also go further beyond it, in that it is comprehensive and covers the marketplace, workplace, environment and the community. In the marketplace, we strive to give our customers only the best products and services. In the workplace, we constantly work towards giving our employees a safe, healthy and supportive environment. And for the community at large, we aim to give what we can, be it financial donations or a helping hand, to those most in need. UMW recognises that plain profit can be measured by what we get, but at the end of the day, the real inner value of our business truly comes from what we can give.

CORPORATE SOCIAL RESPONSIBILITY SUMMARY REPORT 2009 23UMW HOLDINGS BERHAD18 UMW HOLDINGS BERHAD22

COMMUNITY

BRIDGING THE COMMUNITY DIVIDE

AT UMW, WE BELIEVE THAT FINANCIAL CONTRIBUTIONS CAN PROVIDE A SPARK OF HOPE FOR WORTHY CAUSES, BUT IT IS OUR PERSONAL INVOLVEMENT THAT KEEPS THE FIRE BURNING. THE UMW GROUP SHARES ITS GOOD FORTUNE WITH THE COMMUNITY IN MORE WAYS THAN JUST A BIG CHEQUE – UMW EMPLOYEES NOW HAVE THE OPPORTUNITY TO PLAY AN ACTIVE ROLE IN OUR CORPORATE SOCIAL RESPONSIBILITY EFFORTS THROUGH THE GROUP’S EMPLOYEE-VOLUNTEER PROGRAMME, THE UMW COMMUNITY CHAMPIONS.

SPIRIT OF VOLUNTEERISMLaunched on 26 May 2009, the UMW Community Champions have clocked in nearly 4000 hours of service since. The team, made up of employees from across all levels and divisions in the Group, engaged in various social and charitable activities for underprivileged youths and this includes facilitating educational field trips and festive season celebrations. To help prepare our Community Champions for more good work ahead, UMW also sponsored the team’s participation in volunteer training programmes with our CSR partner, MERCY Malaysia. Our Community Champions have to date, been deployed on MERCY missions in Kuala Lumpur, Perak, Sabah and Sarawak.

BRIDGING THE HEALTHCARE DIVIDEThe UMW-MERCY CSR partnership, formalised in December 2008, aims to bridge the health care divide with remote and vulnerable communities in Sabah and Sarawak. As part of the CSR partnership agreement, which is renewed on a yearly basis, UMW has provided MERCY with manpower support through the UMW Community Champions, and a Community Service Grant worth RM 1.4 million. The grant covers the operational costs for community health programmes in East Malaysia held in 2009 & 2010, as well as 2 brand-new units of Toyota Hilux & 1 unit of Toyota Hiace to be used in the transportation of volunteers and equipment.


Group Financial Indicators (RM million)

2009 2008 2007 2006 2005

Profit before tax 846.5 1276.7 856.3 754.3 657.5

Net profit 647.2 955.9 679.3 584.9 499.3

Shareholders' Funds 3773.9 3522.2 3130.1 2560.1 2342.0

Capital expenditure 600.9 629.6 500.3 490.0 570.3

Total assets 8825.7 7828.0 6491.1 5102.5 5721.0

Depreciation, amortisation & impairment loss 239.6 199.1 187.9 164.6 151.7

Operating cash flow 770.4 597.3 927.0 76.7 650.7

Comparative Global Financial Data

Malaysia Overseas Total

2009 2008 2009 2008 2009 2008

External Total Revenue 9880.1 11793.9 840.8 975.8 10720.9 12769.6

Profit from operations 723.7 994.2 54.2 79.4 777.9 1073.6

Segment assets 4664.4 4677.3 2259.0 1390.6 6923.4 6067.9

Capital expenditure 221.9 301.7 379.0 327.9 600.9 629.6

Product Warranty Provisions (RM million)

2009 2008 2007 2006 2005

Provided during the year 49.3 31.0 20.5 25.3 42.3

Used during the year 21.6 13.3 12.5 12.0 10.1

Provisions unused at year end 128.6 109.0 84.8 77.0 64.4

Human Resources

2009 2008 2007 2006 2005

Employees: Global

Total number 10,328 10,509 10,393 11,145 9,473

Executive 20.5% 20.2% 20.0% 23.5% 19.8%

Non Executive 79.5% 79.8% 80.0% 76.5% 80.2%

In Malaysia 92.3% 93.0% 93.8% 94.6% 95.4%

Outside Malaysia 7.7% 7.0% 6.2% 5.4% 4.6%

Marketplace

Workplace

2009 2008 2007 2006 2005

Employees: In Malaysia

Permanent staff 95.2% 94.5% 92.6% 93.7% 87.9%

Non-permanent staff 4.8% 5.5% 7.4% 6.3% 12.1%

Female 19.1% 19.0% 17.5% 19.2% 17.3%

Male 80.9% 81.0% 82.5% 80.8% 82.7%

Union members 55.1% 47.2% 49.4% 70.9% 74.8%

Non-union members 44.9% 52.8% 50.6% 29.1% 25.2%

Age group: < 30 47.8% 51.6% 56.3% 56.0% 59.2%

30 to 40 39.1% 36.1% 32.7% 25.5% 23.1%

40 to 50 6.4% 6.2% 6.1% 13.6% 13.0%

> 50 6.7% 6.1% 4.9% 4.9% 4.7%

Diversity: Bumiputera 64.2% 64.8% 65.6% 69.7% 72.9%

Chinese 19.5% 19.7% 19.2% 21.2% 18.8%

Indian 7.6% 7.5% 8.1% 8.0% 7.9%

Others 8.7% 8.0% 7.1% 1.1% 0.9%

Employees: Turnover Rates

Global 10.8% 13.5% 16.7% 17.3% 26.3%

In Malaysia 10.1% 13.0% 16.1% 16.8% 26.5%

Outside Malaysia 20.8% 20.1% 24.5% 26.4% 22.3%

Employee Turnover Rates in Malaysia:

Female 8.9% 9.7% 11.7% 11.1% 11.2%

Male 10.5% 12.9% 17.4% 18.2% 29.7%

Age group: < 30 67.6% 74.3% 77.3% 24.4% 38.0%

30 to 40 16.8% 13.4% 13.2% 7.2% 10.5%

40 to 50 5.5% 3.7% 2.8% 2.6% 3.1%

> 50 10.1% 8.6% 6.6% 19.9% 26.0%

Women in Management

% Women executives 33.6% 33.0% 32.5% 28.6% 28.8%

PERFORMANCE DATA


2009 2008 2007 2006 2005

Continuous Staff Development and Care

Employee participation in training 29.4% 25.4% 22.3% 18.3% 14.4%

Average participants per training program 19.1 18.7 19.2 13.8 7.6

Average training budget per employee RM786 RM908 RM652 RM436 RM294

Total hours of training per employee 8.40 8.45 9.52 9.83 6.20

Performance Review towards Career EnhancementEmployee % formally appraised at least once annually

Health & Safety

96.6% 98.0% 92.5% 94.1% 87.9%

Accidents per million work hoursat non-automotive division

3.59 2.77 2.39 2.62 3.52

Accidents per million work hoursat automotive division**

1.40 1.45 2.39 1.91 1.57

Total accidents per million work hours* 2.06 1.79 2.38 2.20 2.26

* excludes AISB, UMW Toyota and Oil & Gas Division; ** excludes AISB and UMW Toyota 2.06

2009 2008 2007 2006

Environmental Data: Assembly Services Sdn Bhd (ASSB)

Energy Usage kg-CO2/unit 316 342 363 345

VOC Trend g/m² 58.98 64.88 67.41 76.68

Scheduled Waste kg/unit 9.02 7.04 8.93 7.7

General Waste kg/unit 5.82 5.2 6.55 8.6

Total Waste kg/unit 14.84 12.24 15.49 16.3

Water Usage m³/unit 5.11 4.91 4.21 5.19

PROFILE DISCLOSURE

Profile Disclosures Section Status

Strategy and Analysis

1.1 CEO or Chairman’s statement P4 - 5 •

1.2 Description of key impacts, risks and opportunities P4 - 5 •

Organizational Profile

2.1 Name of the organization. Front Cover •

2.2 Primary brands, products, and/or services P8 •

2.3 Operational structure of the organization P6 - 7 •

2.4 Location of organization’s headquarters Back Cover •

2.5 Number of countries where the organization operates P6 - 7 •

2.6 Nature of ownership and legal form P8 •

2.7 Markets served P8 •

2.8 Scale of the reporting organization P24 •

2.9 Significant changes during the reporting period P8 •

2.10 Awards received in the reporting period P9 - 11 •

Report Profile

3.1 Reporting period for information provided P3 •

3.2 Date of most recent previous report P3 •

3.3 Reporting cycle P3 •

3.4 Contact point for questions regarding the report or its contents Back Cover •

Report Scope and Boundary

3.5 Process for defining report content P3, P27 •

3.6 Boundary of the report P3 •

3.7 Specific limitations on the scope or boundary of the report P27 •

3.8 Basis for reporting on joint ventures, subsidiaries etc P3 •

3.9 Data measurement techniques and the basis of calculations P27 •

3.10 Explanation of the effect of any re-statement of information P3 •

3.11 Significant changes from previous reporting periods P3 •

GRI Content Index

3.12 Table identifying the location of the Standard Disclosures P27 - 31 •

Assurance

3.13 Policy and current practice on external assurance •

Governance

4.1 Governance structure of the organization Annual Report •

4.2 Status of the Chair of the Board Annual Report •

4.3 Number of independent and/or non-executive Board members Annual Report •

4.4 Mechanisms to provide advice to the Board Annual Report •

Application: C – Core; A – Additional; SS – Sector Supplement; AR - Annual Report 2009Status: •FullyReported; Partially Reported; ◊ Not Material; × Not reported


4.5 Link between compensation of the Board and their performance Annual Report •

4.6 Avoiding conflicts of interest Annual Report •

4.7 Qualifications and expertise of the Board Annual Report •

4.8 Mission or values, codes of conduct and principles Annual Report •

4.9 Management of CSR performance P3, Annual Report •

4.10 Evaluating the performance of the Board Annual Report •

Commitments to External Initiatives

4.11 Addressing the precautionary approach or principle Annual Report •

4.12 External CSR principles P16 •

4.13 Memberships of associations No Membership •

Stakeholder Engagement

4.14 List of stakeholder groups engaged by the organization. Annual Report •

4.15 Basis for identification and selection of stakeholders Annual Report •

4.16 Approaches to stakeholder engagement Annual Report •

4.17 Key topics and concerns by raised by stakeholders P14, Annual Report •

Economic Section Status

Disclosure on management approach •

Economic Performance

EC1 Economic value generated and distributed C P8 •

EC2 Risks and opportunities due to climate change C P20 •

EC3 Coverage of the defined benefit plan obligations C P8 •

EC4 Significant financial assistance from government C P8 •

Market Presence

EC5 Standard entry level wage vs. local minimum wage A P14 •

EC6 Spending on locally-based suppliers C P8 •

EC7 Local hiring policies C P14 •

Indirect Economic Impacts

EC8 Investments and services primarily for public benefit C P8 •

EC9 Indirect economic impacts A P8 •

Social Performance: Labour Practices & Decent Work

Disclosure on management approach •

Employment

LA1 Employment type, employment contract, and region C P12 •

LA2 Employee turnover by age group, gender, and region C P25 •

LA3 Benefits provided to full-time employees A P14 •

Labour/Management Relations

LA4 Collective bargaining agreements C P14 •

LA5 Notice period for operational change C P14 •

Occupational Safety & Health (OSH)

LA6 % workforce represented in OSH committees A P14 •

LA7 OSH injury and accident statistics C P26 •

LA8 Awareness training for serious diseases C P14 •

LA9 OSH topics covered in collective agreements A P14 •

Training and Education

LA10 Average hours of training per year per employee C P26 •

LA11 Skills management and lifelong learning A P26 •

LA12 % of employees with regular reviews A P12 •

Diversity and Equal Opportunity

LA13 Indicators of employee and Board diversity C P25 •

LA14 Basic salary men vs. women C P13 •

Social Performance: Human Rights

Disclosure on management approach P15, P17 •

Investment and Procurement Practices

HR1 Agreements with human rights clauses or screening C P17 •

HR2 Human rights screening of suppliers and contractors C P17 •

HR3 Human rights training A P17 •

Non-Discrimination

HR4 Incidents of discrimination and actions taken C P13 •

Freedom of Association and Collective Bargaining

HR5 Risks to freedom of association and collective bargaining C P13 •

Child Labour

HR6 Risk of incidents of child labour C P13 •

Forced and Compulsory Labour

HR7 Risk of incidents of forced or compulsory labour C P13 •

Security Practices

HR8 Security personnel trained human rights issues C P17 •

Indigenous Rights

HR9 Violations involving rights of indigenous people A P17 ◊

Social Performance: Society

Disclosure on management approach Annual Report, P22

Community

SO1 Impacts of operations on communities C P22 •

Corruption

SO2 Risks related to corruption. C Annual Report •

SO3 Training in anti-corruption policies and procedures C Annual Report •

SO4 Actions taken in response to incidents of corruption C Annual Report •

Public Policy

SO5 Public policy development and lobbying C Annual Report •

SO6 Contributions to political organisations A Annual Report •

Anti-Competitive Behaviour

SO7 Anti-competitive, anti-trust, and monopoly penalties A Annual Report •


Compliance

SO8 Penalties for non-compliance with laws and regulations C Annual Report •

Social Performance: Product Responsibility

Disclosure on management approach P15 •

Customer Health and Safety

PR1 Life cycle stages – health and safety impacts C P16 •

PR2 Incidents of non-compliance A P16 •

Products and Service Labelling

PR3 Type of product and service information C P16 - 17 •


PR5 Customer satisfaction systems A P16 •

Marketing Communications

PR6 Compliance in marketing, communications etc. C P16 •


Customer Privacy

PR8 Substantiated complaints breaches of customer privacy A P16 •

Compliance

PR9 Penalties for non-compliance of products and services C P16 •

Environmental

Disclosure on management approach P19 •

Materials

EN1 Materials used by weight or volume C P20, P26

EN2 % of input materials that are recycled C P20, P26

Energy

EN3 Direct energy consumption by primary source C P20, P26 •

EN4 Indirect energy consumption by primary source C P20, P26 •

EN5 Energy conservation and efficiency improvements A P20, P26 •

EN6 Energy-efficient or renewable energy A ◊

EN7 Reducing indirect energy consumption A P20, P26 •

Water

EN8 Total water withdrawal by source. C P21 •

EN9 Significant impact of withdrawal of water. A P21

EN10 % and total volume of water recycled and reused. A P21 ◊

Biodiversity

EN11 Protected areas and areas of high biodiversity value C -

EN12 Impact on biodiversity C -

EN13 Habitats protected or restored. A -

EN14 Managing impacts on biodiversity. A -

EN15 Protected species with habitats in areas of operations A -

Emissions, Effluents, and Waste

EN16 Direct and indirect greenhouse gas emissions C P20, P26

EN17 Other relevant indirect greenhouse gas emissions C P20, P26 •

EN18 Greenhouse gas emissions and reductions achieved A P20, P26

EN19 Emissions of ozone-depleting substances C P20, P26

EN20 NOx, SOx, and other significant air emissions C P20, P26

EN21 Total water discharge by quality and destination C P21, P26 •

EN22 Total weight of waste by type and disposal method C P26 •

EN23 Total number and volume of significant spills C - •

EN24 Transported hazardous waste A - ◊

EN25 Water bodies affected discharge and runoff. A - ◊

Products and Services

EN26 Environmental impacts of products and services C P20 •

EN27 % of products and packaging reclaimed C P20

Compliance

EN28 Penalties for environmental non-compliance C - •

Transport

EN29 Environmental impacts of transporting products A -

Overall

EN30 Total environmental expenditures by type A - ◊

UMW HOLDINGS BERHAD32

FEEDBACK ANDCOMMENTSWe encourage readers to tell us your views on our approach to CSR and to make suggestions for the development of our CSR programme.

Comments and suggestions can be directed to:

Akhbar PutehUMW Corporation Sdn BhdGroup Public Affairs DivisionJalan Utas 15/740915 Shah AlamSelangor Darul EhsanMalaysia

Tel: (603) 5163 5050Fax: (603) 5512 8208 Email: [email protected]

corporate social responsibility summary report 2010 1 · 2018-11-24 · 2 umw holdings berhad...

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