STAKEHOLDER

ENGAGEMENT

Sunway has a diverse range of stakeholders who are influenced or impacted by our activities and whose decisions and actions may impact the Group. We strive to foster positive relationships with all stakeholder groups by regularly engaging with them through formal and informal channels. This allows us to recognize and resolve pertinent material issues, gaining insights into emerging opportunities and risks, and effectively addressing their concerns.

We identify and manage risk through the Group’s risk management framework that aligns with the ISO31000:2018 Risk Management Guidelines. Our Enterprise Risk Management (ERM) is incorporated into all our key activities, initiatives, and processes of the Group for efficient risk management.

Stakeholder

Groups

Global

Outlook

Identifying and managing our risks is vital for sustainability of our business. As a conglomerate, our business operations, management and growth are influenced by a wide range of risks, ranging from local to regional and global risks.
We identified the risks and potential consequences of these trends, which guide us in better managing our Company’s material issues in the economic, environmental, social and governance areas.​

The current economic transition, following the COVID-19 pandemic and the war in Ukraine, poses risks of stagnation, divergence, and distress. Normalization of monetary policies and a shift towards a moderate growth and investment era characterize this current and ongoing period. Persistent inflationary pressures may continue due to ongoing geopolitical conflicts and economic warfare prompting supply chain decoupling. The potential for a miscalibration between monetary and fiscal policies raises concerns of liquidity shocks, potentially leading to a prolonged global economic downturn and widespread debt distress.

GLOBAL MEGATRENDS Shifting Economic Power Globalisation Industrial Revolution 4.0 Digitalisation
GLOBAL ISSUES Supply Chain Disruption Economic Crisis Financial Crisis Recession
MATERIAL ISSUES Macroeconomic Issues​ Company’s Financial Performance Responsible and Sustainable Financing Capital Allocation Strategy Brand and Reputation
RISK
  • Significant risks may arise from economic uncertainties or recessions, impacting employment, income levels, and business performance.​
  • Supply chain disruptions resulting from geopolitical events, natural disasters, or global crises can influence production and distribution.
  • The evolution of regulations or heightened regulatory scrutiny may give rise to compliance challenges, affecting operations and profitability.
  • Poor financial performance puts business continuity at risk and may result in missed investment opportunities.
  • Subpar financial performance jeopardises business continuity and investment opportunities.
  • Shifting investor preferences and market dynamics can steer away from companies with inadequate ESG performance and the overall financial standing of the organisation.
  • Misrepresenting sustainability efforts can lead to allegations of greenwashing, undermining the organization’s credibility and relationships with stakeholders.
  • Poor assessment of investment prospects results in projects that underperform and resources being squandered.
  • Financial performance is affected by market volatility, impacting returns on capital investments.
  • A rigid capital allocation strategy may impede the ability to adjust to changing market conditions, technological advancements, or unforeseen challenges.
  • Engaging in unethical business practices, legal disputes, or regulatory infractions can damage a company’s reputation.​
  • Adverse media coverage has the potential to erode customer trust and loyalty.
  • Problems with products and services, as well as inconsistencies, may result in a loss of confidence in the brand.
  • Ineffective crisis response and mishandled communications can further compound reputational damage.
OUR RESPONSES
  • Enhancing business and financial resilience through the implementation of innovative strategies and technology.​
  • Vigilantly monitoring and mitigating risks that could negatively impact business operations and financial performance.
  • Enforcing prudent cost management and proactive capital management initiatives.
  • Ensuring compliance with all relevant laws and regulations while upholding good corporate governance standards.
  • Fostering the development and upskilling of employees’ capabilities to enhance overall productivity.
  • Deploying innovative approaches and technology to fortify business and financial resilience​.
  • Integrating global megatrends into comprehensive business planning.​
  • Ensuring timely and transparent communication of financial performance.​
  • Engaging in proactive investor relations activities to connect with the investment community.
  • Utilising sustainability-linked bonds, sustainability sukuk, and partnering with financial institutions.​
  • Broadening the array of debt sources.
  • Enhancing the efficiency of debt costs.
  • Formulating approaches to enhance the robustness of the business model.
  • Engaging in proactive initiatives with investors to convey Sunway’s business model to the investment community.
  • Vigilantly overseeing and addressing risks that could undermine the resilience of the business model.​
  • Maintaining strong corporate governance and ethical business practices​
  • Ensuring adherence to all applicable laws and regulations​
  • Ensuring excellence in product and service quality​
  • Taking a leadership role in sustainability stewardship​
  • Ensuring that products are manufactured in compliance with safety standards​
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We apply Kate Raworth’s Doughnut economics model, which calls for balancing human needs with planetary boundaries, ensuring life’s necessities without overburdening Earth’s life-support systems. Its goal is to create an environmentally safe and socially just space between social and planetary boundaries for humanity to thrive. Additionally, the WEF Global Risks Report 2023 highlighted climate and environmental risks as dominant risks in global risk perceptions, particularly as the least prepared. Current global crises disproportionately impact the often overlooked natural ecosystems, setting off a chain reaction of nature loss and climate change. 

GLOBAL MEGATRENDS Rapid Urbanisation
GLOBAL ISSUES Planetary Health: The Planet Cannot Wait
MATERIAL ISSUES​ Climate action​ Protection of biodiversity and ecology​ Pollution management​
RISK
  • Carbon tax will raise operational expenses for assets, products, or services with high carbon emissions.​
  • Lack of preparedness in adhering to emerging climate-related regulations.
  • Potential harm to physical assets, financial losses, and business disruptions arising from inadequate climate adaptation and mitigation measures.​
  • Elevated operational costs and the risk of scarcity due to inefficient water management.​
  • Depletion of biodiversity and ecosystem collapse from natural resource destruction
  • Increased operational costs linked to landfill waste disposal​
  • Financial penalties or legal actions resulting from non-compliance with environmental regulations issued by local authorities/regulators.
OUR RESPONSES
  • Aligned our Climate Report with TCFD recommendations
  • Provided transparent disclosures of environmental impact in the Sustainability Report
  • Strengthened climate action through an Internal Carbon Pricing framework.​
  • Enhanced risk management via Value at Risk (VaR) assessment on climate change exposure.​
  • Implemented energy and water-saving initiatives for reduced consumption and environmental impacts.​
  • Invested in renewable energy to decrease GHG emissions and our carbon footprint.​
  • Deployed sustainable water supply systems, including a water treatment plant and rainwater harvesting, to lessen reliance on municipal water supply.​
  • Introduced a Biodiversity Policy to guide the Group in integrating biodiversity considerations into business activities and decision-making processes.​
  • Implemented a Green Township Policy that addresses community needs while minimizing environmental and societal impacts in areas surrounding built environments.​
  • Established a Green Building Policy to guide sustainable designs and resource management, reducing the impact of our operations on communities and the environment.​
  • Committed to constructing integrated developments that contribute to urban revitalisation and brownfield redevelopment.​
  • Utilized a waste management hierarchy to prevent, decrease, and minimize waste.​
  • Implemented a Sustainable Events Management Policy to aid event organizers in planning and executing successful events with minimal environmental impact and positive community relations.​
  • Monitored effluents, air emissions, and noise pollution at relevant sites.​
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Our commitment is to foster a secure, equitable, and dignified workplace to support livelihoods and contribute to the overall sustainability of our organisation. We aim to secure our pool of talents through enhancing the health, safety, and well-being of our people, thereby boosting our productivity, talent attraction, and retention. Our focus extends to nurturing leaders within Sunway, empowering talent capabilities, and ensuring a robust talent pipeline for the future. Additionally, we persist in uplifting communities in areas where we operate through various enrichment programs and relief efforts to support those around us.

GLOBAL MEGATRENDS Demographic & Social Change ​
GLOBAL ISSUES Workforce Trends Health and well-being Future of work
MATERIAL ISSUES​ Value Chain Improvement​ Employee Well-Being​ Human Rights​ Community Investment​
RISK
  • Inability to meet stakeholders’ request to use sustainable materials could lead to a decline in market share.
  • Material scarcity may cause supply chain disruptions.
  • Non-compliance of suppliers and contractors with the company’s ethical principles and safety culture may lead to operational disruptions.
  • Falling short of customers’ expectations affects their confidence and loyalty, resulting in lower revenue.
  • Employees who are disengaged and underdeveloped contribute to reduced productivity and performance.
  • Inadequate benefits and remuneration negatively impact employee motivation
  • Workplace accidents and injuries result in productivity losses, legal consequences such as penalties, and reputational damage
  • Violations of human rights practices result in regulatory penalties, influence employee retention and culture, and lead to reputation damage
  • Discriminatory employment practices have a detrimental impact on the company’s reputation.
  • Business activities that have adverse impacts on communities affect the company’s social license to operate
OUR RESPONSES
  • Established a Sustainable Procurement Policy as a tool for communication and improvement in our procurement process.​
  • Implemented a Supplier Code of Conduct to ensure suppliers adhere to applicable laws, rules, codes, and regulations.
  • Developed an embodied carbon emissions roadmap to minimize environmental impacts of our products.
  • Adopted digitalisation and initiated decarbonisation throughout our supply chain.
  • Ensured that suppliers and vendors commit to respecting human rights based on the UN Guiding Principles on Business and Human Rights, UN Global Compact (UNGC) Principles, and acknowledging the International Labour Organization’s (ILO) eight fundamental conventions.​
  • Enforced proper product marketing and labelling, along with maintaining engagement for customer satisfaction
  • Implemented family-friendly policies, offering benefits beyond industry standards​
  • Advocated work-life balance through programmes and organised health and wellness activities​
  • Enhanced the learning and development of employees to ensure excellence in performance and delivery​
  • Conducted performance assessments to facilitate continuous development and enhancement of skills and capabilities​
  • Enforced an Occupational Health, Safety, and Environment (OHSE) Policy and formulated a five-year OHSE Strategy to establish a secure and healthy work environment​
  • Implemented a Human Rights Policy to protect, promote, and respect human rights across our operations​
  • Adopted a Diversity and Inclusion Policy, highlighting our commitment to fostering a culture that appreciates and respects diversity​
  • Maintained a zero-tolerance stance against discrimination based on race, religion, gender, age, disability, and nationality.​
  • Persisted in efforts to enrich and empower local communities through our #SunwayforGood corporate social responsibility (CSR) initiatives.
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Sunway emphasises the importance of good corporate governance, encompassing environmental awareness, ethical conduct, corporate strategy, compensation, and risk management. Rapid technology development without clear protocols poses risks, with potential attacks on critical infrastructure and misuse of personal information. We are cognisant of the need for vigilance, aligning interests with our stakeholders, and maintaining a commitment to ethical conduct in the face of evolving global challenges.

GLOBAL MEGATRENDS Emerging Environmental, Social and Governance (ESG) mandate in corporate governance ​ Technological Breakthroughs​
GLOBAL ISSUES Increased ESG regulations​ Connectivity blind spots ​
MATERIAL ISSUES​ Group Standards and Operating Procedures​ Innovation and Technology​
RISK
  • Inadequate corporate governance practices have the potential to damage a company’s reputation and image.
  • The occurrence of cyberattacks, such as the unauthorized access to customer data, can result in a loss of customer trust and harm to the company’s reputation.
OUR RESPONSES
  • Ensuring strong corporate governance through the implementation of rigorous policies.
  • Implementation and maintenance of resilient IT security systems to counteract cyber threats and safeguard data privacy
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