Sustainability

Ethical Business

Ensure ethical business practices and compliance among all individuals working in and for the company.

Our Approach

Unwavering dedication to set a positive example in our industry with ethical business conduct and effective governance across our operations.

1. High standards of Corporate Governance
   • Adhere to principles and practices set out in Malaysian Code of Corporate Governance (“MCCG”), Main Market Listing Requirements of Bursa Malaysia Securities Berhad as well as all relevant laws and regulations.
     (Learn more of our Corporate Governance)
2. Robust framework of Codes & Policies
   • Adopted group-wide policies and code to protect against unethical business conduct, including anti-bribery and corruption, whistleblowing, code of ethics and conducts.
3. Corruption Risk Assessment
   • Conducted risk assessment to identify and assess potential bribery and corruption risks.
4. Ongoing Communication and Training
   • Awareness materials displayed across facilities.
   • Communication on the ethical policies and standards, including anti-bribery & corruption, whistle blowing during orientation.
   • Annual refresher training for employees.
5. Whistleblowing avenue
   • Encouraging and protecting employees and the general public who raise concern about malpractice or improper conduct.

Our Achievement

• Maintained record of Zero reported cases of bribery or corruption in FY2024.
• 100% of our new hires in FY2024 acknowledged KOSSAN ABC Policy.
• Recorded 2,382 man-training hours on Anti-Bribery and Corruption in FY2024.

Partnership & Collaboration

Advancing industry development through strategic partnerships and collaboration with suppliers, customers, educational institutions, reputable NGOs and other community-based organisations.

Our Approach

Actively foster internal and external collaborations to promote shared values, drive progress, and exchange best practices.

1. Supplier Screening
   • Screening process covers ESG criteria on all new and existing suppliers.
2. Supply Chain Assessment
   • Conduct pre-assessment audits, due diligence, evaluation and annual assessment to ensure rigorous compliance by suppliers.
3. Vendor Code of Conduct
   • Defines our clear expectations for ethical, social, and environmental responsibility, which all suppliers, contractors, and service providers are required to uphold when conducting business with KOSSAN.
4. Value Sharing
   • Delivered career talks to equip university students with insights on industry expectations, essential soft skills, and guidance for a smooth transition into the workforce, while inspiring exploration of career pathways in engineering and sustainability-driven industries.
5. Strategic Collaboration
   • Collaborated with our strategic partner on Greening Value Chain (“GVC”) Programme to aid KOSSAN’s suppliers decarbonising their operation.

Our Achievement

• First glove manufacturer in the country to establish a strategic partnership with Bank Negara Malaysia (BNM) for the Greening Value Chain (GVC) programme to help SMEs in decarbonisation.
• Maintained a high customer satisfaction rate of 95%, as measured by our customer satisfaction survey.
• Involved in Zero legal actions, and incurred no legal repercussions or penalties, regarding anti-competitive behavior or violations of anti-trust and monopoly legislation.
• 59% of our procurement spend in FY2024 went to local suppliers.

Cyber Security and Data Privacy

Safeguarding business operations and stakeholder data from evolving cyber threats.

Our Approach

Committed to enhancing our cyber security and data privacy protocols by adopting industry best practices and implementing cyber protection strategies, thus securing the confidential data of our stakeholders and our own intellectual property.

1. Established Strong Policy Framework
   • Enforced a comprehensive set of IT policies to ensure the safe and responsible use of digital resources.
2. Implemented Effective Controls
   • Servers, systems, and applications are protected with stringent user credentials, access permissions and Multi-Factor Authentication.
   • External threat protection through the deployment of various enterprise grade solutions.
   • Computers and servers are equipped with Antivirus endpoints protection.
   • Critical servers are actively backed up to prevent data loss.
   • Annual penetration testing conducted to assess and enhance system resilience.
   • Strictly adheres to the regulations set forth in the Personal Data Protection Act 2010 (“PDPA”).
3. Inculcate a Culture of Awareness on Cyber Risks and Data Protection
   • Regular email communications and newsletters are shared to raise awareness on cyber risks and data protection among employees.

Our Achievement

• Successfully maintained track record of Zero recorded incidents of identified leaks, theft or loss of customer and employee data.

Environmental Compliance

Adherence to applicable environmental laws and rules that are crucial to conduct our business responsibly.

Our Approach

Committed to remain in tune and responsive to all national and local environmental regulations that pertain to our industry, in addition to global standards and norms.

1. Adopted Stringent Approach to Environmental Compliances
   Guided by our Group-wide Environmental Management System (“EMS”) Framework, aligned with the ISO 14001 Environmental Management System standard to ensure environmental compliance across our operations.
2. Tracking the Environmental Impact of Our Operations
   • Leverage robust data system to monitor and manage our environmental performance.
   • Carry out regular environmental assessments and audits that enable us to identify areas of non-compliance and formulate strategies to address these shortfalls.

Our Achievement

• 96% of our plants are ISO 14001:2015 certified.
• Maintained record of Zero incidents of non-compliance with environmental laws and regulations.

Waste Management

Managing the disposal of both hazardous and non-hazardous waste generated from our business operations.

Our Approach

Determined to minimise waste from our manufacturing activities and enhancing circularity across our operations to help reduce land contamination and carbon emissions associated with landfills.

1. Enhance Regulatory Adherence and Environmental Stewardship:
   • Implementing extensive waste management measures that is aligned with ISO 14001:2015 standards.
   • Maintain detailed tracking of waste performance across our facilities.
   • Manage scheduled wastes in accordance with the Department of Environment’s (DOE) Scheduled Wastes Regulations 2005, ensuring disposal through licensed DOE-approved contractors.
   • Appointed licensed competent persons to supervise waste handling at all operational sites.
   • Carrying out internal and external audit to ensure compliance with environmental regulations.
2. Optimize Resource Utilization
   • Embrace waste circularity to reduce disposal and promote reuse.
   • Utilise sustainable packaging made from recycled or recyclable materials.
   • Close monitor the use of key input materials across all operations to improve efficiency.
3. Promote Innovation to Drive Resource Efficiencies
   • Leverage automation to optimise resource usage and minimise wastage.
   • Invest in R&D to explore sustainable raw materials and reduce reliance on non-recyclable inputs.

Our Achievement

• Achieved a reduction in waste generated intensity from the FY2022 baseline — 11% in the Gloves Division and 5% in the Technical Rubber Product Division as of FY2024.
• 58.2% of overall waste generated were recycled, reused or recovered in FY2024.
• 96% of product packaging made from recycled or recyclable materials.
• Maintained record of zero incidents of non-compliance related to waste management, with no waste imported or exported.

Climate Change

Addressing climate risk and opportunities across our value chain and minimise greenhouse gas emissions.

Our Approach

Steadfast dedication to take strategic approach focused on reducing emissions as climate change is a matter than must be considered and addressed.

1. Expanding in Renewable Energy Equipment:
   • Scale up solar panel installations and broaden the use of renewable energy across all facilities.
   • Fitting all factories and offices with LED lights and solar-powered perimeter spotlights.
2. Transitioning to Electric Vehicle:
   • Replacing diesel forklifts with electric forklifts and reach trucks.
3. Taking Steps to Improve Energy Efficiency:
   • Ongoing initiatives and programmes to drive energy efficiencies awareness.
   • Adopt new energy methodology to our operations and reengineering production processes.
   • Conducting research and development to support further reductions in energy consumption.
   • Investing in advanced, energy-efficient production equipment and technologies.
   • Customising manufacturing parameters to optimise energy efficiencies.
4. Robust Monitoring System:
   • Implemented a comprehensive carbon accounting system and database to track, monitor and calculate our emissions.

Our Achievement

• Total solar power capacity of 4.30 MWp has been installed across our operations.
• Achieved a 15% reduction in absolute Scope 1 and 2 GHG emissions from the FY2022 baseline as of FY2024.
• Achieved a reduction in Scope 1 and 2 GHG emissions intensity from the FY2022 baseline — 12% in the Gloves Division and 14% in the Technical Rubber Product Division as of FY2024.
• Planted trees (verified by B Lab) as part of our #StayLOW green agenda.

Water & Effluent Management

Sound water management and responsible effluent discharge across our operation.

Our Approach

Endeavor to improve water footprint and minimising environment impact of effluent discharged from our business activities to support broader goals of water security and sanitation accessibility.

1. Reducing Reliance on Municipal Water Sources:
   • Utilising reclaimed water in our operations.
   • Continuous exploration alternate sustainable water sources.
2. Driving Water Conservation Efforts & Efficiencies:
   • Optimising water consumption efficiencies through automation.
   • Reusing of tank water in manufacturing line and treated water from waste water treatment plant.
   • Undertaking process/operation analyses to reduce water consumption.
   • Refining operating and maintenance procedures for greater efficiency.
   • Promoting sustainable water practices through continuous awareness and engagement initiatives.
3. Robust Monitoring and Oversight:
   • Systematic monitoring of water withdrawal and consumption intensity.
   • Systematically assess water-related risks and implement strategic measures using scientific tools to mitigate impacts and ensure sustainable water management.
4. Maintaining Responsible Effluent Management Practices:
   • Regular monitoring to ensure wastewater are adequately treated through waste water treatment plant before discharge.
   • Wastewater discharge processes are in accordance with ISO 14001 and compliance with local Environmental Quality (Industrial Effluent) Regulations 2009 (Standard B) established by Malaysia’s Department of Environment (“DOE”) and all regulations pertaining to the jurisdictions of our operations.
   • Invested in wastewater treatment equipment upgrade to ensure continued compliance, reliability and efficiency.

Our Achievement

• 1st company partnered in state government reclaimed water project since year 2021.
• Achieved a reduction in water consumption intensity from the FY2022 baseline — 14% in the Gloves Division and 12% in the Technical Rubber Product Division as of FY2024.
• As of FY2024, 18.4% of water withdrawn were from reclaimed water sources.
• Maintained Standard B for water discharged quality.
• Zero reported incidents of non-compliance relating to effluents discharged in FY2024.

Human Rights & Labour Practices

Treating our people and those that work with us fairly and ensuring their fundamental rights are safeguarded and respected. Including but not limited to prohibition of modern slavery and forced labour, prohibition of child labour and protection of young people at work, prohibition of torture and inhuman or degrading treatment, right to life, freedom of opinion and expression, equality and non-discrimination and labour rights.

Our Approach

Staunch advocate for decent work in accordance with international standards through continuously advancing our effort in tackling human rights risks across our own operation and our supply chain, and upholding a fair, sustainable, and inclusive workplace for all.

1. Robust Governance to Social Compliances and Workers’ Rights
   • Social Compliance Task Force Team chaired by an executive director and comprises plant directors, HR business partners and the Social Compliance Department.
   • Established Social Accountability Management System & Policy Roadmap that aligned with international standards.
   • Zero-tolerance for forced labour and modern slavery, and child labour.
2. Upholding Responsible Recruitment Practices
   • Employer Pay Recruitment Policy.
   • Implemented Recruitment Agency Code of Conduct (RACC).
   • Due diligence audit jointly with independent consultant on potential recruitment agencies.
   • Established four checkpoints to ascertain that no recruitment fees have been paid to recruitment agents.
   • Fair and transparent employment contracts in the workers’ native languages.
   • Completed remediation of recruitment fees to migrant workers amounting to RM54 million in June 2021.
3. Supporting Decent Work and Living Environment
   • Enforced working hours and overtime limits with 60-hours work week.
   • Respecting employees’ right to form, assist in the formation of or join a trade union and association, and participate in its lawful activities.
   • Workers’ accommodation fully complies with the Workers’ Minimum Standards of Housing and Amenities (Amendment) Act 2019 (Act 446).
   • Competitive remuneration based on market benchmarks and mutual agreement.
   • Zero-tolerance for any form of harassment and abuse.
4. Human Rights Risk Management
   • Regular internal social compliance audit and assessments carried out by Social Compliance department.
   • Undertaking external social compliance audit and assessments in line with our customers’ Codes of Conduct and international standards such as WRAP and SMETA.
   • Cultivate a strong awareness of human rights and social compliance across our workforce.
5. Hearing the Voice of Our People
   • Elected workers representatives who act as a voice for migrant workers.
   • Implemented external operational grievances tool/channel – “Suara Kami”.
   • Robust grievance mechanisms and whistle blowing channel in place.
6. Supply Chain Management
   • Enforcing strict codes of conduct on vendors.
   • Pre-assessment audit on new potential suppliers and annual assessment on existing suppliers.
7. Industrial Collaboration and Initiatives
   • Working closely with industrial participants and stakeholders worldwide to minimize the risk of forced labour within the glove supply chain.

Our Achievement

• One of our glove manufacturing sites has become the first in Malaysia to receive Platinum WRAP certification, while the remaining facilities continue to uphold their Gold certification status.
• Maintains a Supplier (B) membership in Sedex.
• One of the seven founding members of the Responsible Glove Alliance (“RGA“).
• One selected glove manufacturing sites achieved an ‘A’ rating by amfori BSCI Social Audit.
• Maintained Zero substantiated complaints concerning human rights violations.
• Maintained our record of Zero reported cases of child labour.

Workplace Safety

Minimizing exposure to workplace hazards and preventing work-related injuries and illnesses.

Our Approach

Placing high priority on workplace safety with the commitment to provide an injury-free workplace and protect our people through eradicating potential occupational hazards.

1. Upholding OSH Good Practices
   • Guided at the utmost level by our Group-wide Occupational Safety and Health Management System Framework, aligned with ISO 45001 Occupational Health and Safety (OH&S) management systems.
     (Learn more of our Safety Policy)
   • Certified safety and health officers assigned at all operational sites.
   • Implemented appropriate safety and health controls with detailed standard operating procedures (“SOP”) and work instructions (“WI”).
2. Safety and Health Risk Management
   • Conduct routine Hazard Identification, Risk Assessment and Risk Control (“HIRARC”) assessments.
   • Annual safety and health audit by internal audit department.
   • Undertake external OSH audit in accordance with our customers’ Codes of Conduct, DOSH regulation and other third-party certification bodies.
3. Fostering and Promoting a Strong Culture of Safe and Secure Workplace
   • Safety and Health Policy communicated to all employees, vendors, and other stakeholders.
   • Awareness articles and procedures shared in intranet portal.
   • Regular safety and health training programs and workshops to continuously improve employees’ general safety knowledge, first aid and emergency response preparedness.
   • Organising annual safety campaign.
   • Successfully conducted a pilot Work Related Road Safety Program (”WRRS”) compliance with ISO 39001.

Our Achievement

• 96% of our manufacturing facilities have obtained ISO 45001 certification.
• Maintained Zero work-related fatalities across all employees and non-employees in FY2024.
• In FY2024, 3,134 employees participated in safety and health training, totaling 18,873 training hours.

Occupational Safety & Health Policy

At KOSSAN, we take great consideration in the safety and health of all employees. As such, we aim to continuously improve our OSH Policy and OSH Management System for the benefit of our employees and those who may be directly or indirectly impacted by our daily operations. Our ultimate goal is to achieve safe work standards that provide a better safe working environment that minimise potential risks and hazardous effects, as well as to achieve higher OSH Excellent standards.

We devote all the necessary measures and attention to creating healthy, safe and conducive working conditions for employees, contractors and any other people involved with the company along the value chain, including suppliers, customers and the public.

KOSSAN is committed to the following:

1. To be at the forefront of risk prevention in the industry, we commit to SHE excellence in all activities wherever we operate, comply with relevant laws and regulations, and adhere to applicable standards and procedures.
2. KOSSAN believes that accidents are preventable. We integrate safety and health in the management of our business so that all activities are considered from the perspective of prevention of all types of accidents and protection of the people at work. Our goal is to have no incidents, occupational illnesses, or injuries.
3. To establish strong local safety and health organisations that provide specialist advice to managers and employees with systematic identification of hazards, emergency and contingency plans to deal with residual risk, and to manage them with appropriate risk assessments and subsequent actions to minimise danger.
4. We shall endeavour to take every reasonable and practicable step to prevent and eliminate the risk of injuries, health hazards and damage to properties.
5. Our Occupational Safety and Health Management System is based on the concept of continuous improvement. We improve our performance by designing and adapting processes, monitoring systems, work practices and systems in the direction of greater safety.
6. KOSSAN recognises the critical role of senior management in ensuring a safe and healthy work environment. KOSSAN managers at all levels are accountable for managing workplace health and safety with strong leadership and credibility.
7. Employees are empowered to challenge any unsafe acts they see or perceive and put a task on hold if they judge that safety is not adequate until a competent person takes appropriate risk control measure.
8. We shall ensure that contingency plans are in place as preparation for emergency situations and shall notify all relevant stakeholders during emergencies, as per procedures.
9. KOSSAN builds a proactive safety culture by driving the implementation and continual improvement of the KOSSAN Occupational Safety and Health Management System through communication with employees, contractors and other stakeholders.
10. KOSSAN implements this policy through the Occupational Safety and Health Management System, which includes periodic self-assessments and specific audits.

The policy shall be reviewed and revised for its continued suitability and disseminated to all relevant parties.

Health & Wellness

Uplifting workforce fitness and well-being for sustainable economic growth.

Our Approach

Strive to made steps towards improving the overall health of our workers in all areas, including the physical, mental, and social aspects as we recognising human health.

1. Heightening Health & Wellness Awareness
   • Support employees’ physical and mental health need with our Workplace Health Programme (”WHP”) led by Corporate SHE.
   • Monthly wellness talks and educational programmes.
   • Annual Health and Safety Carnival offering free health screenings, BMI checks, and other community-focused wellness services.
2. Convenient Accessibility to Healthcare for Our People
   • Established well-equipped In-house clinic – KOSSAN Wellness Centre which managed in collaboration with healthcare provider.
   • On-site first-aid room with to address urgent medical situations.
   • Compulsory medical check-ups for workers in roles with potential health risks.
   • Digitalising healthcare management through mobile health app.
3. Encourage Employees to Fitness Participation
   • Weekly fitness classes and sports club activities subsidised by the company to promote physical well-being.
   • Organise a variety of wellness programmes.
   • Corporate office facilities include an in-house gym and swimming pool to promote regular fitness participation.

Our Achievement

• Maintained 100% return to work rates for employees who have taken parental leave.

People Development

Fostering a culture of continuous learning by providing work environments that support both professional and personal growth.

Our Approach

To continuously nurturing the potential of our people to support their career aspirations and strengthen our succession planning through training and development initiatives.

1. Conducive Environment for Learning
   • Established an in-house training centre – KOSSAN Training Centre (“KTC”).
   • Providing beyond role-specific training for growth and career advancement.
   • New Joiner Learning Plan (NJLP) — a buddy system offering hands-on coaching in both functional and technical areas for new employees.
   • Emphasis on practical, floor-based on-the-job training modules to equip employees with real-world experience from day on.
2. Enthusiastic Learning and Development Department
   • Dedicated in-house trainer and Learning and Development Department.
   • In-house programmes are designed and customised to meet role-specific competencies and skills development needs.
3. Digitalising Learning & Development
   • Comprehensive E-learning Platform that includes more than 350 modules in technical skills, on-the-job training, soft skills, management skills and leadership available for employees.
4. Supporting Career Growth and Progression
   • Sponsorship and subsidies provided for employees to pursue industry-recognised certifications aligned with their career paths.

Our Achievement

• 108,058 learning and development hours completed by our employees in FY2024 which translate to 18.2 training hours per employee.
• 111 employees were promoted across the Group.

Diversity & Inclusivity

Embracing diversity and inclusivity through creating a culture of acceptance and belonging and cultivating a harmonious and thriving working environment.

Our Approach

Deep devotion to maintain and promote diverse, equitable and inclusive workplace across the dimensions of race, gender, religion, age, socio-economic group and culture.

1. Cultivate a Culture of Mutual Respect
   • Established Prohibition of Workplace Harassment and Discrimination Policy and outlined within KOSSAN Code of Ethics and Conduct (“KCEC”).
   • Ongoing awareness initiatives through training programmes and workplace posters to reinforce understanding and zero tolerance for harassment and discrimination.
2. Championing Equal Opportunities
   • Equal employment opportunities based strictly on merit, qualifications and experiences.
   • Fair career advancement pathways, open to all high-performing employees regardless of background, gender, or nationality.
3. Promoting Diversity and Equality
   • Continuous efforts to support a gender-balanced and culturally inclusive workforce.
   • Data-driven monitoring of wage equity, representation, and policy effectiveness to guide ongoing improvement.

   (Click HERE for our workforce data 2024)

Our Achievement

• Record 1:1.09 ratio in basic salary and remuneration for male and female employees, with female employees earning slightly higher on average across all job grades.
• 100% of our Top Management and Senior Management team members are Malaysian.
• Maintained a consistent ratio of standard entry wage by gender in relation to the local minimum wage was maintained at a balanced 1:1.
• Recorded a 19% increase in training hours in FY2024, with a total of 3,468 hours dedicated to topics such as abuse prevention, inappropriate language, the Harassment and Discrimination Policy, and our stance against sexual harassment across all operational sites.

Community Welfare

Making positive impact through voluntary community engagement and support.

Our Approach

Established Yayasan Kossan with the objective of funding and supporting philanthropic activities for education and social welfare, embracing our duty to uplift underprivileged communities, conscious of the long-lasting impact we can create through our resources and reach.

Initiated Project Smile to develop, sustain, and perceive a good relationship between our internal and external community.

Our Achievement

• Accumulated 163,439 beneficiaries served as of Dec 2024.
• 3,831 volunteers took part in contributing to the communities as of Dec 2024.
• 104 orphanage, retirement home and other association served as of Dec 2024.
• Providing education support to 162 schools as of Dec 2024.
• 1,787 trees planted as of Dec 2024.

(Click HERE to view Yayasan Kossan Annual Report FY2023)

Product Quality & Safety

Provide high quality, safe products and solutions that firmly align with market demand and the ever-evolving expectations of our customers around the world.

Our Approach

Striving for continuous enhancement of product quality and safety performances to live up to the trust of our customers and contribute to our value chain.

1. Robust Quality Management System
   • Governed by a comprehensive Quality Management System (QMS) and other internationally recognised quality certifications schemas:-
     • ISO 9001:2015
     • ISO 13485:2016 and European (“EN”) ISO 13485:2016
     • Medical Device Single Audit Programme (“MDSAP”), covering the United States (“US”), Canada, Australia and Brazil
     • ISO 9001:2015
     • CE 2797
     • UKCA 0086
     • MS 2636:2019
     • Malaysia MPPHM 2020 and MHMS 2020
     • Indonesia Halal Product Assurance System (“HPAS”)
     • UAE Halal National Mark (UAE.S 2055-4:2014)
     • BRCGS CP Issue 4
     • MS 2200-2:2013
     • MDR (European Union/“EU”) 2017/745
     • PPER (EU) 2016/425 Module D
     • Forest Stewardship Council™ (“FSC”) Chain of Custody
     • BS EN 681: Pt. 1
     • EN 15129, EN 1337-3 and EN 1337-7
     • IATF 16949:2016
     • Brazil RDC ANVISA n. 67/2009, RDC ANVISA n. 665/2022 –Good Manufacturing Practices, RDC ANVISA n. 551/202
2. Stringent Product Quality Control
   • Dedicated Quality Assurance team enforcing comprehensive inspection protocols.
   • Detailed sampling plan, inspection and testing procedures, and strict acceptance and rejection criteria.
   • In-house accredited laboratory for testing.
   • Compliance with international product standards, including:-
     • US ASTM Standards
     • Europe EN Standards
     • Japan JIS Standards
     • Australia and New Zealand AS/NZ Standard
     • International ISO Standards
     • China GB Standards
     • Brazil INMETRO Certification
3. Commitment to Excellence
   • Added new testing for disinfectant chemicals based on the U.S Environment Protection Agency (“EPA”) List N: Disinfectants for Coronavirus (COVID-19).
   • Improved protection by increasing list of chemotherapy drugs tested on our Low Derma™ gloves.
   • New products tailored to evolving medical and industrial needs.

Our Achievement

• Produced the first patented glove with Low Dermatitis Potential – Low Derma™ gloves.
• ZERO incidents of non-compliance with regulations and/or voluntary codes concerning the health and safety impacts of products and services.
• Recorded ZERO incidents of non-compliance with regulations and/or voluntary codes concerning product and service information and labelling.
• Recorded ZERO incidents of non-compliance with regulations and/or voluntary codes concerning product and service information and labelling, and marketing communications, including advertising, promotion and sponsorship.