corporate community investment report 2013

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1 community education e n v i e n r o n m t s p o s t r corporate community investment report 2013

2 Contents MALAKOFF S CSR JOURNEY 3 2 COMMITMENT TO COMMUNITY & EDUCATION i. Malakoff Adopted School Education Fund 7 ii. Melentur Buluh Programme 8 iii. Learning Beyond The Classroom Programme 10 iv. Annual Gotong-Royong Project 11 v. Malakoff Annual Charity Ride 13 vi. Sukan Rakyat Carnival 15 vii. Lighting Up Lives 16 viii. Malakoff-AIESEC LEAD Conferences 16 ix. Malakoff-UNITEN Talent Acceleration Programme 17 x. Corporate Philanthropy 18 COMMITMENT TO THE ENVIRONMENT i. Coral Rehabilitation Programme 20 ii. Mangrove Planting Programme 22 iii. Turtle Awareness Programme 23 COMMITMENT TO COMMUNITY SPORTS i. Malakoff Penang Run 25 ii. Malakoff University Duathlon Series 27 iii. Malakoff Powerman Asian Championships 29 LISTENING TO THE MEDIA 32

3 Malakoff s CSR Journey 3 As Malaysia s leading Multinational Power and Water Company with core focus on power generation, water desalination and operations & maintenance services, we are committed to take proactive measures to continue infusing Corporate Social Responsibility (CSR) in our culture and operations. We acknowledge that how a business entity engages its stakeholders and how it conducts its business is critical to the success of an organisation. In this regard, we have developed a strategic CSR framework to reinforce our mission to be an active and responsible participant of the local communities. Since Malakoff s inception in 1975, the Company has implemented various CSR initiatives. Throughout the years, we have remained focused on the development of young talent, the empowerment of local communities as well as inculcating a healthier and active lifestyle among the community. On the environmental front, we have taken proactive measures to contribute to conserving the rich biodiversity of Malaysia by working with the respective Government bodies. To strengthen our commitment towards CSR, we established the Malakoff Community Partnerships in 2009 as the Company s flagship CSR platform. The Malakoff Community Partnerships serves to streamline our approach in managing the growing dimensions of our CSR involvement, particularly in the following three areas : Community and Education The Environment Community Sports We have, therefore, continued to operate our business in an economically, environmentally and socially responsible manner. During the reporting period, we have continued to invest in our local communities and environment with the same vigour as we would in any other essential aspects of our business. Internally, our focus on our employees have seen our performance in the areas of health and safety, employee satisfaction and retention trending positively. This is also true for our environmental impact and carbon footprint.

4 Malakoff s CSR Journey sharing sessions on leadership and self-development. 4 SUCCESS IN 2013 We are proud to note that our CSR efforts in the reporting period have covered a wide range of issues and interests, all of which have impacted the lives of the communities in which we operate positively in many ways. In 2013, we expanded the scale of our existing programmes by launching two new initiatives; the Malakoff-UNITEN Talent Acceleration Programme, a leadership development programme for high potential Engineering and IT undergraduates from Universiti Tenaga Nasional, and the Malakoff-AIESEC LEAD Conferences, which aim to develop students to be global leaders through insights and inspiration from Further to this, we are particularly pleased to highlight that all of our sporting events, including the Malakoff Penang Run, the Malakoff University Duathlon Series and the Malakoff Powerman Asian Championships have achieved unprecedented record of participation in FOCUS IN 2014 For the year ahead, our commitment to CSR remains steadfast. With renewed enthusiasm and focus, we are excited to work together with our stakeholders to embark on community educational programmes to benefit our local communities. We will also continue to collaborate with relevant bodies on key environmental programmes. Our pledge to remain mindful of our responsibilities as a good corporate citizen is not only our commitment to our stakeholders, it is also an integral part of our business development.

5 Malakoff s CSR Journey 5 ACCOLADES In recognition of Malakoff s on-going CSR efforts, the Company has been awarded with the following accolades : Prime Minister s CSR Award Environment Category; Asia Responsible Entrepreneurship Awards Social Empowerment Award; Anugerah Organisasi Penyayang Johor Private Organisation Category; Asia Responsible Entrepreneurship Awards Green Leadership Award; and Malaysian Institute of Management Global Excellence in Management Awards for Corporate Social Responsibility of the Year. ACKNOWLEDGEMENTS Since the inception of the Malakoff Community Partnerships in 2009, we have established a firm foundation on which the success of our efforts have been built and grown over the years. We would like to acknowledge our people within Malakoff for their collective efforts in creating social improvements and environmental stewardship. Their unwavering energy, strength and compassion which have been an instrumental part of the Malakoff Community Partnerships, have never ceased in reinforcing the Company s focus towards the betterment of our local communities.

6 community education COMMITMENT TO COMMUNITY & EDUCATION i. Malakoff Adopted School Education Fund ii. Melentur Buluh Programme iii. Learning Beyond The Classroom Programme iv. Annual Gotong-Royong Project v. Malakoff Annual Charity Ride vi. Sukan Rakyat Carnival vii. Lighting Up Lives viii. Malakoff-UNITEN Talent Acceleration Programme ix. Malakoff-AIESEC LEAD Conferences x. Corporate Philanthropy

7 Commitment To Community & Education Malakoff believes that corporate success goes beyond making positive financial returns for our shareholders. We also place great emphasis on bringing positive change and impactful initiatives for the benefit of the local communities in which we operate. 7 Pursuant to this, we proactively support our local communities in two key areas namely, community investment and education. We continuously engage with them in order to effectively respond to their needs and build long-term mutually enhancing partnerships. In addition, we invest substantially in the development of young talent through the provision of financial aid and educational opportunities to help empower young Malaysians to become responsible and capable leaders of tomorrow. i. MALAKOFF ADOPTED SCHOOL EDUCATION FUND Malakoff s adopt schools are located within our local communities to provide students with access to academic opportunities regardless of their socio-economic background. To ensure our adoption benefits those in need, we select deserving schools located near our power plants to be part of our Adopted School Programme. As at year-end, we have adopted eleven schools in the area of Lumut, Prai and Tanjung Bin, with Sekolah Kebangsaan (SK) Serkat being the latest addition. The other schools include: Lumut, Perak i. SK Segari ii. SK (C) Pei Min iii. SK (T) Ladang Huntly Prai, Penang iv. SK KhirJohari v. SRK (C) Chung Hwa vi. SK (T) Prai Tanjung Bin, Johor vii. SK Sg Boh viii. SK Sri Sinaran Chokoh ix. SK Andek Mori x. SK (C) Pei Chow xi. SK Serkat Malakoff channelled RM220,000 to the schools to maintain

8 Commitment To Community & Education ii. MELENTUR BULUH PROGRAMME 8 infrastructure as well as to fund extra revision classes and co-curricular activities. Part of the financial aid was alsoused to reward deserving top achievers in public examinations as motivation. Each year, Malakoff organises the Melentur Buluh Programme at different adopted schools to foster positive values in the children by actively involving them in communityrelated projects. On 12 June, Malakoff employees visited SK Segari for its third Melentur Buluh Programme. During the employee-initiated outreach effort, Malakoff volunteers rallied all 96 students to join the gotong-royong campaign to liven up their school. Since the inception of the Education Fund in 2006, we have invested approximately RM1 million in the programme benefitting more than 3,000 students.

9 Commitment To Community & Education 9 Our employees also worked together with the students to refurbish the library in an attempt to instil a reading habit in the students. In addition, Malakoff invited representatives from the Road Traffic Police along side the local Fire and Rescue Department to help educate the young participants on road as well as fire safety. The Melentur Buluh Programme 2013 proved to be as successful as its predecessors with positive feedback from the participants. The first programme was held in SK Andek Mori in 2011 and SK Seri Sinaran Chokoh the following year.

10 Commitment To Community & Education 10 iii. LEARNING BEYOND THE CLASSROOM PROGRAMME In an effort to promote continuous learning life styles in Standard Six students after their national examinations, Malakoff organises annual excursion to Kuala Lumpur to expose them to learning opportunities beyond the confines of the classrooms. As part of our Learning Beyond the Classroom Annual School Trip, we rewarded 140 high-achieving students accompanied by their teachers with a three-day educational trip to Kuala Lumpur between 18 and 20 October. During the trip, students explored the wonders of science and technology at Petrosains as well as the National Science Centre in addition to other educational places such as the Kuala Lumpur Bird Park and Hi5 Bread Museum. Since the introduction of the Learning Beyond the Classroom programme in 1997, over 1,000 deserving Malaysian students have benefitted from the experiential learning excursion.

11 Commitment To Community & Education 11 iv. ANNUAL GOTONG-ROYONG PROJECT Malakoff has been actively assisting Maahad Tarbiyah Islamiyah Al- Ansar (Al-Ansar), as part of the Company s endeavour to ensure the under privileged are not deprived of the right to education. Al-Ansar is a welfare boarding school in Kuala Selangor which provides free or highly subsidised education to 270 students in 2013 alone. In keeping with the Company s annual tradition, 30 Malakoff employees visited Al-Ansar on 9 March and participated in a gotong-royong project together with the students for the seventh consecutive year. Volunteers

12 Commitment To Community & Education then constructed a study gazebo with ample shaded area to provide a more conducive environment for studies. 12 The effort also saw Malakoff donating RM36,950 to support the school s operating costs. The Company has provided financial support to Al-Ansar since 2005 to upgrade and maintain the school building, residential quarters and other common facilities.

13 Commitment To Community & Education v. MALAKOFF ANNUAL CHARITY RIDE 13 The Malakoff Annual Charity Ride is a unique platform focused on strengthening the esprit de corps spirit of its stakeholders through sports while reaching out to the local communities along the route. For the eighth Malakoff Annual Charity Ride, 80 Malakoff employees and business associates cycled 480km from Johor Bahru to Kuala Lumpur between 24 and 26 May to raise money for charity. The Ride successfully raised RM172,700 which benefitted 24 welfare organisations and schools along the cycling route. Over the past seven years, donations from business associates have increased steadily from RM47,900 in 2006 to RM170,000 in 2011, totalling close to RM750,000 during this time. The Annual Charity Ride in the previous year collected a record contribution of RM206,000, reflecting the growing support and generosity of our business partners.

14 Commitment To Community & Education 14

15 Commitment To Community & Education vi. SUKAN RAKYAT CARNIVAL 15 Throughout the year, the Company hosted regular engagement and recreational activities to strengthen the bond between its employees and the local communities. To further enhance community spirit in Mukim Serkat, Johor, Malakoff employees collaborated closely with the Village Chief and Jawatankuasa Kemajuan Kampung (JKK) of Mukim Serkat to organise a Sukan Rakyat Carnival at the village. The three-day Carnival which was held between 14 and 16 June received tremendous support, with close to 1,000 local residents of various age groups participating in a host of exciting family-oriented and telematch games at the event.

16 Commitment To Community & Education vii. LIGHTING UP LIVES viii. MALAKOFF-AIESEC LEAD CONFERENCE 16 Malakoff s commitmentas a responsible and active participant of the local communities was also shared by its subsidiaries including Malakoff Utilities Sendirian Berhad (MUSB). In conjunction with the Ramadhan festival, 43 employees from MUSB volunteered their time for the inaugural Lightning Up Lives programme. In the true spirit of giving and compassion, they distributed food packages and blankets to over 175 homeless people in Kuala Lumpur and ensured that the less fortunate had a blessed Ramadhan season. Malakoff has actively partnered with youth organisations to nurture young talent at the varsity level. Our commitment in education beyond the schooling years is evident in a variety of conferences sponsored by Malakoff. For the year under review, Malakoff collaborated with the AIESEC Malaysia Association, the local arm of an international student-run organisation, to run a series of national conferences,to improve leadership and personal development skills among its 1,000 strong members nationwide. The first conference of the Malakoff- AIESEC Lead Conference was held on 29 June at Sunway University. Prominent speakers and corporate figures were invited to share their leadership experience with over 220 eager participants in rapt attention to make the most of the opportunity.

17 Commitment To Community & Education 17 viii. MALAKOFF-UNITEN TALENT ACCELERATION PROGRAMME In line with Malaysia s vision to be a knowledge-intensive economy, Malakoff has collaborated with leading universities to build a sustainable pipeline of talent for the industry. This year, Malakoff offered 24 promising students from Universiti Tenaga Nasional (UNITEN) placements under the Malakoff-UNITEN Talent Acceleration Programme (MUTAP) to groom well-rounded graduates particularly in the engineering and IT fields. MUTAP is a six-month leadership training programme incorporating experiential training workshops, project executions, assessments and networking. It is initiated in collaboration with UNITEN and Leaderonomics, a training and leadership consultancy.

18 Commitment To Community & Education 18 x. CORPORATE PHILANTHROPY In time of need, Malakoff was quick to respond to its local communities and stakeholders to alleviate their pressing situation through monetary contributions. Some of the key donations include: a. On 25 March, Malakoff contributed RM300,000 to the Tabung Wira Lahad Datu Media Prima. The donation was to honour the brave sacrifice of Malaysia s police and armed forces personnel who fought on the front lines to protect the sovereignty of Malaysia in Lahad Datu, Sabah. b. Malakoff was one of the main sponsors of National Press Club s annual charity dinner which was held on 15 December. This fundraising event was organised to raise money for the Club s Journalist Welfare Fund, which was set up to assist Malaysian journalists and their dependants tide through difficulties. c. In response to the communities call for aid in Mukim Serkat, Johor, Malakoff donated RM91,700 in educational grant to benefit 409 school children and varsity students as well as to provide additional assistance to selected communitybased organisations in the village. d. Malakoff funded the construction of a RM2 million mosque in Kampung Sungai Dinar, Johor. The new mosque is scheduled to be completed in July 2014 and will serve as a community centre in the neighbourhood.

19 environment COMMITMENT TO THE ENVIRONMENT i. Coral Rehabilitation Programme ii. Mangrove Replanting Programme iii. Turtle Conservation Programme

20 Commitment To Environment 20 As a responsible corporate citizen, Malakoff takes the impact of its business operations on the environment seriously. We have, therefore, adopted greener and more energy-efficient practices to reduce our ecological footprint. We also partner with the local communities and Government bodies to implement long-term rehabilitation and conservation efforts to protect the rich biodiversity in Malaysia. Some of our initiatives include long-term plans that aim to restore the marine and mangrove ecosystem as close to their natural state as possible. In addition, we collaborate with our stakeholders to raise awareness on the protection of endangered species. i. CORAL REHABILITATION PROGRAMME Malakoff continued its commitment to preserve the marine ecosystem in Malaysia by championing its third Coral Rehabilitation Programme in Pulau Mentinggi, Johor between 21 and 23 June. The initiative was held in partnership with the Ministry of Natural Resources and Environment, the Department of Marine Parks and the Department of Environment.

21 Commitment To Environment 21 During the three-day campaign, 69 employees and business associates constructed and transplanted artificial coral reefs to serve as marine habitats. Malakoff also conducted awareness sessions in the tourist island to educate hospitality service providers and local communities on the importance of conserving the coral reefs. To date, Malakoff has organised two Coral Rehabilitation Programmes.The pilot programme was held in Pulau Tioman, Pahang in 2011 and Pulau Redang, Terengganu the following year.

22 Commitment To Environment ii. MANGROVE PLANTING PROGRAMME 22 In recognition of the key ecological and economic benefits of mangrove forests to the local communities, we expanded our Mangrove Planting Programme to revive the eroding eco system in Seberang Prai, Penang. The initiative was held in collaboration with the Penang Inshore Fishermen Welfare Association and the replanting effort took place on 3 July. Together with our project partner, we planted 8,000 mangrove saplings and monitored their growth over a period of six months. The overall project and replanting cost which totalled up to RM60,000 was fully borne by Malakoff. The initiative in the Northern Region was an extension of two previous successes in Johor. In 2011, Malakoff and the Johor National Parks Corporation planted 20,000 saplings in Mukim Serkat adjacent to the Company s Tanjung Bin Power Plant. We then took the initiative a step further the following year by planting an additional 17,000 mangrove saplings in Tanjung Piai and Pulau Kukup National Parks.

23 Commitment To Environment iii. TURTLE AWARENESS PROGRAMME 23 To safeguard the sea turtles from the threat of extinction, Malakoff renewed its collaboration with the Department of Fisheries to raise a strong call-toaction among young Malaysians. On 12 September, we championed our third Kenali Penyu, Sayangi Penyu Turtle Conservation Project, which was held at the Segari Turtle Management Centre (TMC) in Perak. At the event, a Green Turtle outfitted with a satellite tracking device sponsored by Malakoff was released into the sea, making it the first of its kind in the state of Perak. Information gathered from the device would assist with the Department s extensive research on the turtle s migratory behaviour. In addition to this, we gathered 30 students from our adopted schools in Lumut to participate in a series of activities. Following the day-long awareness programme, they were equipped with better knowledge about the protection of the endangered speciesand pledged to educate their peers about it. At the end of the day, we contributed RM10,000 to the Department of Fisheries in support of TMC s operation to educate the general public about the pressing need to contribute towards this cause.

24 community sports COMMITMENT TO COMMUNITY SPORTS i. Malakoff Penang Run ii. Malakoff University Duathlon Series iii. Malakoff Powerman Asian Championships

25 Commitment To Community Sports 25 As ardent supporters of sports, we at Malakoff believe our sporting events epitomise the values we believe in and live by everyday - hard work, perseverance, teamwork, sportsmanship and determination. We inculcate these values because sports is an influential pathway in building stronger and healthier communities. It also breaks down social barriers as it brings Malaysians together for a shared passion and common goal. Above all, through sports, we provide ordinary Malaysians opportunities to perform extraordinary feats, be it crossing the finish line for the first time or surpassing their own expectations and personal records in the race. i. MALAKOFF PENANG RUN The Malakoff Penang Run, one of the iconic running events in the region, was held on 17 March at the island s Esplanade and drew a record turnout of 2,500 athletes from across the country. The event was organised for the sixth consecutive year with the strong support from the Penang State CATEGORIES Government, the Penang State Sports Council, the Penang Island Municipal Council and the Department of Environment Malaysia. Similar to previous years, the Run with Family and Friends themed event featured ten categories to encourage participation among all Malaysians of different age groups and fitness level, particularly recreational runners. The various categories and number of participation include : NUMBER OF PARTICIPANTS Men s Open 17km 1,101 Men s Veteran 17km 264 Men s Senior Veteran 17km 135 Women s Open 17km 329 Women s Veteran 17km 115 Women s Senior Veteran 17km 41 Men s 7km 247 Women s 7km 240 Men s Junior 7km 15 Women s Junior 7km 13 TOTAL 2,500

26 Commitment To Community Sports Since the inception of the Malakoff Penang Run, the number of runners has continued to soar due to the unwavering support from the sporting community. Since the inaugural race in 2008, over 7,000 people have participated in the Malakoff Penang Run. 26 YEAR YEAR YEAR YEAR Nil YEAR YEAR YEAR YEAR , , ,500 TOTAL 4,911 1,910 6,821

27 Commitment To Community Sports ii. MALAKOFF UNIVERSITY DUATHLON SERIES 27 Malakoff continued to sponsor the popular Malakoff University Duathlon Series or more fondly known as MUDS for the seventh consecutive year. This initiative was part of the Company s effort to induct young Malaysians to the unique multi-sports event in order to boost participation induathlon tournaments across the nation. MUDS is a three legged run-bikerun tournament with a manageable distance for non-professionals and aspiring duathletes. Hosted at three different local universities, the first leg of the race was kicked off at Universiti Pertahanan Nasional Malaysia on 11 May, followed by the second leg at Universiti Malaya on 18 May with the grand finale held at Universiti Putra Malaysia on 1 June. The Series recorded a participation of over 800 students from more than 30 universities and colleges nationwide. In addition to the host universities, participating institutions with sizable YEAR FIRST LEG SECOND LEG THIRD LEG TOTAL TOTAL 4,592

28 Commitment To Community Sports 28 contingents included Universiti Teknologi Mara, International Islamic University of Malaysia, Universiti Utara Malaysia, Universiti Malaysia Pahang, Monash University Malaysia and Sunway University College. Over the years, MUDS has attracted a steady pool of students to try out the event and has nurtured many young duathletes who have since ventured into international multi-sports competition. In addition to students, the Series has also gained popularity among the sporting and expatriate community as a training ground for longer endurance races.

29 Commitment To Community Sports 29 iii. MALAKOFF POWERMAN ASIAN CHAMPIONSHIPS The Malakoff Powerman Asian Championships, regarded as the Largest Duathlon Challenge in Asia, was held for the 12th consecutive year in Malaysia on 25 October at Putrajaya. The acclaimed event saw the participation of 2,160 international and local duathletes competing for cash prizes worth RM122,400 across 18 categories. The Championships is the only Asian qualifier among the eleven Powerman sanctioned tournaments held worldwide which lead up to the Powerman Zofingen World Championships in Switzerland. As such, the event has been a catalyst in boosting the development of duathlon in Malaysia and Asia while providing opportunities for local duathletes to gain experience and regional exposure. Given the event s international stature, the number of participation grew rapidly over the years : YEAR NUMBER OF PARTICIPANTS , , ,160 TOTAL 9,856

30 Commitment To Community Sports 30 While the initial events were dominated by the elite and international duathletes, in recent years response among Malaysians has grown substantially. In 2013, nearly 80 per cent of the racers were Malaysians. The breakdown according to the participants country of origin and continents are as follow : NO. COUNTRY / CONTINENTS LONG DISTANCE NUMBER OF PARTICIPANTS SPRINT DISTANCE RELAY TOTAL 1. Malaysia , Asia Africa 3 2 Nil 5 4. North America South America 1 Nil Nil 1 6. Europe Australia & New Zealand 8 2 Nil 10 TOTAL 1, ,160 This year s Malakoff Powerman Asian Championships 2013 also featured as the finale of the Malaysian Environment Week organised by the Department of Environment, which aims to support the Government s objective of fostering the adoption of carbon neutral activities including running and cycling.

31 listening to the media

32 Listening To The Media 32 Given the media s understanding and coverage on current issues in the local communities, greater awareness and interest can be generated among the public by involving them in our CSR efforts. Therefore, across all our efforts, we encourage members of the media to join our employees and business partners to be actively involved in our initiatives. Altogether, over 100 journalists have participated in our events in 2013, producing 229 media reports on topics concerning our community development, environment conservation and sporting programmes. In our effort to further strengthen our CSR initiatives, we embarked on our fifth round of guided interviews with key media personnel to evaluate past initiatives and obtain valuable feedback for the planning of our future activities. Towards this end, 20 key editors, bureau chiefs and senior journalists in Kuala Lumpur, Putrajaya and Perak were interviewed. RESEARCH METHODOLOGY The interviews were conducted by means of a guided questionnaire between 13 January and 5 February 2014 through telephone and .

33 Listening To The Media KEY OBSERVATIONS 33 All respondents were aware and supportive of the Malakoff Community Partnerships key component and initiatives. Overall, they scored the success of the Company s CSR efforts positively. Respondents were appreciative of Malakoff s CSR activities to contribute to the local communities and the environment. They also lauded the Company s engagement efforts in ensuring active involvement of its various stakeholders, including members of the media. Given Malakoff s proactive and holistic approach towards CSR, most respondents rated Malakoff s reputation as the leading Independent Power and Water Company based in Malaysia positively, with 16 out of 20 scoring it above 7. The average rating added up to MOVING FORWARD As we seek to continuously improve our CSR initiatives, we will draw on our stakeholders knowledge and strengthen our partnerships to ensure we deliver on our commitment as an active and responsible participant of the local communities.

34 MALAKOFF CORPORATION BERHAD ( V) Level 10, Block 4, Plaza Sentral, Jalan Stesen Sentral 5, Kuala Lumpur tel : fax : malakoff@malakoff.com.my web :

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