Statement on Corporate Sustainability

Hock Seng Lee Berhad (HSL) is dedicated to a business model that balances growth and profitability with a positive, ongoing, meaningful contribution to our community. Fostering such sustainability is fundamental to delivering long-term value to stakeholders and to mitigating risks without forgoing an entrepreneurial spirit.

Responsible corporate conduct including commitment to disclosure and transparency of Economic, Social and Governance (ESG) issues is integral to HSL's business practices across all aspects of our operations. In keeping with the best practices of corporate responsibility and consistent with the principles set out in the Malaysian Code on Corporate Governance 2012, HSL has formulated its management strategy entrenching sustainability considerations within all four key areas where its impact on society is felt.

These are the Marketplace, the Workplace, the Community and the Environment.

The Marketplace

HSL seeks always to maintain the highest standards of corporate governance including building an open engagement with our stakeholders and ensuring frequent, timely disclosure of all material information. From procurement policies to project delivery, it adheres to the philosophy of business integrity and ethical conduct at every level of the organisation. It is HSL's sustainability initiatives that will continue to drive our investment merits, mitigate business risks and provide the underlying platform for maximizing new business opportunities.

The Workplace

HSL has always placed the utmost priority on our precious people and has cultivated a caring, family-like camaraderie while maintaining high expectations for total commitment, skill development and productivity. We are acutely aware that it is the staff of the organization that constitutes the key to our success and business sustainability and therefore strive to recruit, retain and reward loyalty and performance. HSL also actively enforces health and safety policies and offers conducive supportive working environments, fair and attractive remuneration and satisfying personal career pathways. We also encourage healthy work-life balances and sponsor regular sport sessions and participation in community sports events.

The Community

HSL feels strongly that its business must honourably serve the society in which we operate and leave a positive legacy for the future. Many of our projects have far-reaching positive impacts on the community, be they addressing the problems of urbanization (flyovers, flood mitigation, centralized sewerage) or providing rural communities with new socio-economic opportunities (water treatment, access roads, schools). For this reason, our engagement with our community is wide ranging. In charitable endeavours, we have also evolved beyond direct monetary donations to more proactive input in social welfare initiatives, the support of education and cultural activities and an investment in developing positive lifestyles for our youth through junior sports development. HSL also encourages participation of staff and supports various community events to enhance teamwork and to promote visibility of the company as a caring corporate citizen.

The Environment

HSL's commitment to sustainable development incorporates strict compliance with EIA studies and relevant environmental protection regulations. At the same time, it goes beyond mere compliance to proactively identify and promote projects which will mitigate the harmful impacts of population growth, rapid economic development and urbanization on the natural environment and the health and well-being of future generations. Many of HSL's projects seek to enhance the urban environment or protect residents from problems such as shore erosion, river pollution, water supply, flooding and etc. HSL is engaged with the public sector authorities in finding solutions to environmental degradation issues and in seeking out a responsible balance between the pressures of development (urbanization, industrialisation and population growth) and the need to preserve the environment. HSL also promotes the 3Rs of reuse, reduce and recycle among staff both at the workplace and home. At project sites, HSL is renowned for its innovations in environmentally responsible practices ranging from mature tree rescue from road projects and their subsequent replanting at housing estates to dust control measures, battery recycling, used oil collection and recycling and others

HSL has long recognized that strong, structured corporate governance practices positions the Company to minimize risk factors and meet the growing expectations of present stakeholders without compromising the growing needs of the next generation. This translates to business practices that are responsible, ethical and sensitive to the society and the environment; business practices that make profitability possible because of, rather than in spite of, respect for our fellow man and our shared planet.