As a prominent player in the steel industry, Leon Fuat Berhad ("Leon Fuat" or "the Group") seeks to achieve long-term value creation without compromising on environmental, social and governance ("ESG") standards.

Our Commitment to Sustainability

Leon Fuat's commitment to sustainability is embedded in the Group's Values by integrating its responsibility towards planet Earth with its operations and business strategies, ensuring the health and safety of people at workplaces while balancing economic prosperity and generating social benefits for the community. This approach balances the Group's aspiration to create value as a steel industry benchmark with its responsibility as a corporate citizen.

Our Values

"Steel is our business. Excellence is our commitment"

Leon Fuat strives to be the steel industry benchmark for value creation, corporate citizenship and business ethics. Together, with our stakeholders, we are building a sustainable enterprise that's capable of standing the test of time. The basis of our shared values is as follows:

Leon Fuat's Shared Values

Sustainability Journey

Ever since we started our Sustainability Journey in FY2017, Leon Fuat has strived to continuously improve its sustainability disclosures. We demonstrate how our business activities align with our sustainability agenda, and reflect Leon Fuat's sustainability performance and initiatives from 4 perspectives: Governance, Economic, Environmental and Social.

Leon Fuat's sustainability journey is outlined in the figure below:

FY 2017

  • Disclosure for three (3) main subsidiaries: LF Metal, LF Hardware and Supreme Steelmakers
  • Eleven (11) material sustainability matters identified
  • Seven (7) SDGs identified
  • Materiality assessment of key material matters
  • Six (6) stakeholder group identified

FY 2018

  • Establishment of sustainability governance structure
  • Ranking key material matters onto a Materiality Matrix
  • Thirteen (13) material sustainability matters identified
  • Fourteen (14) SDGs adopted in total
  • Improved stakeholder engagement disclosure

FY 2019

  • Addition of Term of Reference (TOR) for sustainability governance structure
  • Materiality Matrix maintained
  • Thirteen (13) material sustainability matters maintained
  • Seven (7) SDGs adopted
  • Inclusion of GRI indicator numbers
  • Improved stakeholder engagemnet disclosure

FY 2020

  • Fourteen (14) material sustainability matters identified
  • Seven (7) SDGs maintained
  • Reassessment of material sustainability matters and matrix
  • Expanded list of stakeholders to seven (7)

FY 2021

  • Introduced Climate Change as a new material sustainability matter
  • Renamed two (2) material matters, and consolidated two (2) material matters into one (1)
  • Maintained total fourteen (14) material matters,
  • Materiality matrix adjusted to accommodate changes to the material matters
  • Seven (7) SDGs maintained
  • Utilised the updated GRI 2021 indicators

Leon Fuat's
Stakeholder Engagement

At Leon Fuat, we consider our stakeholders as partners in long-term value creation. We have developed a robust stakeholder engagement process to foster and nurture relationships, which helps improve strategy development and decision-making.

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Sustainable Development Goals

As a member state of the United Nations ("UN"), Malaysia is committed to the UN's Sustainability Agenda 2030 and the Sustainable Development Goals ("SDGs"). We identified 7 SDGs that our business can effectively contribute towards. In the illustration below, we have mapped our initiatives to the relevant SDGs.

3
Good Health
and well-being
UN SDG 3
  • Noise risk assessment, noise awareness training, and audiometric checks
  • Covid-19 Safety Procedures
7
Affordable and
Clean Energy
UN SDG 7
  • Installation of solar panels at two (2) factories
8
Decent work and
Ecomomic Growth
UN SDG 8
  • Maintained Health and Safety Policy and Management System
  • Health and Safety induction training for all employees
9
Industry, Innovation
and Infrastructure
UN SDG 9
  • Continued commitment to invest in newer and more efficient factory machinery, and warehouse facilities to improve production capacity
12
Responsible
Consumption
and production
UN SDG 12
  • Scheduled waste management procedure
  • Supplier performance assessment
13
Climate
Action
UN SDG 13
  • Use of Green Diesel trucks for lower carbon emissions
  • Generation of renewable energy from solar at two (2) factories
16
Peace, Justice
and strong
Institutions
UN SDG 16
  • Comprehensive Anti-Bribery Management System
  • Anti-Bribery Policy 2020
  • Whistle-Blowing Policy 2020
  • Code of Ethics and Conducts
  • Personal Data Protection Notice

Sustainability Report

As global initiatives in promoting responsible business gathers momentum, Leon Fuat Berhad as one of Malaysia's leading companies in the steel industry, stands proud for its environmental, social and governance ("ESG") standards. Our sustainability agenda is based on four (4) themes:

  • Responsible Governance
  • Economic Prosperity
  • Environmental Stewardship
  • Social Responsibility

Leon Fuat strides forward in this direction with renewed commitment to our material sustainability matters by introducing climate change initiatives as a new material matter for the financial year ended on 31 December 2021. Leon Fuat's commitment to sustainable development and sustainable growth for the Group is amply reflected in this Fifth Annual Sustainability Statement.