Sustainability Reporting

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Sustainability Rating

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Sustainability Policies and Governance

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ESG Awards

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Target Setting

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NSRF

Sustainability Reporting	➜	Sustainability Rating
		➜
ESG Awards	➜	Sustainability Policies and Governance
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Target Setting	➜	NSRF

The Group made its initial disclosure through its 2018 Annual Report. In 2022, we established our ESG framework and working booklet. That same year, PLS received a significant boost when our principal plantations and trading segments achieved a Silver3 (S3) Sustainability Rating from RAM Sustainability Sdn. Bhd. The S3 rating recognises our corporate sustainability performance across all Environmental, Social, and Governance (ESG) themes, aligning with the international and domestic guidelines set by Bank Negara Malaysia's Climate Change and Principle-based Taxonomy.

In 2023, we updated our policies and implemented a robust sustainability governance system to ensure our practices align with evolving statutory, regulatory, and sustainability standards. Our commitment to environmental stewardship was recognized at the Star Media Group’s ESG Positive Impact Awards, where PLS won accolades for Water Management and Efficiency, as well as Innovative Partnerships.

In the year under review, our FTSE4Good Bursa Malaysia Index (FG4BM) rating improved by 8 points to 2.1 from 1.6 in 2022. We also initiated GHG emissions calculations and established Sustainability targets. For the upcoming financial year, we plan to expand our sustainability reporting by incorporating the National Sustainability Reporting Framework (NSRF) alongside existing frameworks and standards.

About This Statement

This Statement is a transparent account of our sustainability progress, highlighting initiatives, best practices, and strategies implemented across PLS and its subsidiaries to integrate sustainable business operations. Given the increasing demand for sustainable palm oil from diverse stakeholders, our disclosure focuses primarily on plantation operations.

Scope and Boundary

This sustainability statement covers the entire operations of PLS Plantations Berhad and the entities where the Group holds a controlling interest or management control. Unless otherwise stated, this statement details the sustainability strategies, business activities, performance, and initiatives of the Group’s Material Matters that affect the key stakeholders of Aramijaya Sdn Bhd., Dulai Fruits Enterprise Sdn. Bhd., Super Greenwood Sdn. Bhd and Ikhlasi Bina Sdn. Bhd. The statement does not cover the newly formed subsidiaries in FY2024, as their operations do not have sustainability impacts in the year under review. Also, we would like to note that the Group has international business – durian product export, which has no operational presence outside of Malaysia.

• Bursa Malaysia Sustainability Reporting Guide, 3rd Edition

• Malaysian Code on Corporate Governance (MCCG) 2021

• Task Force on Climate-Related Financial Disclosures (TCFD)

Reference Guidelines

• Global Reporting Initiative ("GRI") Standards

• United Nations Sustainable Development Goals (“SDGs")

• FTSE4Good BMS (“Ftse4Good Bursa Malaysia”) Index

In the year under review, we conducted a materiality reassessment to address evolving social, environmental, and emerging challenges. Climate Change, Health and Safety, and Human Rights were identified as key ESG issues requiring prioritisation in our business activities for sustainable value creation. Guided by these updated materiality results, we will continue to strengthen our sustainability efforts.

Materiality Process

During the reassessment, we evaluated the impact of each sustainability aspect on our corporate performance and stakeholders. This report highlights the matters deemed most significant for our activities and stakeholders.

Identify & Categorise We identified a comprehensive list of stakeholders and material themes which we deemed to directly impact the sustainability of our group. Thereafter, we categorised each material teme under EES topics and narrowed them down to avoid redundancy.

Prioritise Each material theme and stackholder group were assessed and scored according to its importance and impact.

Stakeholder Inclusiveness To ensure that stakeholders voice are incorporated, the identified stakeholder groups were sought and requested to score the themes according to importance.

Validate & Approve The matrix was reviewed by the Management and subsequently validated and approved by the Board of Directors.

Identify & Categorise We identified a comprehensive list of stakeholders and material themes which we deemed to directly impact the sustainability of our group. Thereafter, we categorised each material teme under EES topics and narrowed them down to avoid redundancy.		Prioritise Each material theme and stackholder group were assessed and scored according to its importance and impact.
Stakeholder Inclusiveness To ensure that stakeholders voice are incorporated, the identified stakeholder groups were sought and requested to score the themes according to importance.		Validate & Approve The matrix was reviewed by the Management and subsequently validated and approved by the Board of Directors.

Our sustainability framework focuses on developing and implementing effective action plans aligned with our business operations. These plans are also consistent with the Malaysian Sustainability Palm Oil (“MSPO”), National Agenda, and Sustainable Development Goals (“SDGs”).

Sustainability Approach
Sustainability Governance	➜	Sustainability Policies	➜	Risk Management	➜	Stakeholder Engagement	➜	Programmes & Initiatives	➜	Target & Performance	➜	Continuous Improvement

EESG Matters
Economy Product Diversification. Research and Development.		Environment Climate Change. Biodiversity. Waste Management. Water Management. Energy Management.		Society Health and Safety. Human Rights. Security Enforcement. Employee Wellbeing. Community Engagement.		Governance Governance Ethics and Integrity.

Outcomes

Sustainability Approach
Sustainability Governance	➜	Sustainability Policies
		➜
Stakeholder Engagement	➜	Risk Management
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Programmes & Initiatives	➜	Target & Performance
		➜
		Continuous Improvement

EESG Matters
Economy Product Diversification. Research and Development.		Environment Climate Change. Biodiversity. Waste Management. Water Management. Energy Management.
Society Health and Safety. Human Rights. Security Enforcement. Employee Wellbeing. Community Engagement.		Governance Governance Ethics and Integrity.

Outcomes

Our aim is to elevate the palm oil industry by integrating sustainability principles aligned with the MSPO Certification Scheme, MPOCC and Standards Malaysia. The Group is committed to supporting the Malaysian government's SDGs, identifying and addressing material sustainability issues, actively engaging with stakeholders, and implementing a robust sustainability governance system.