Top Glove caps its 30th anniversary in 2021 with an enhanced and even stronger commitment to its Environmental, Social and Governance (ESG) practices; with continued upkeep of its position for the third year running on the prestigious Dow Jones Sustainability Indices (DJSI) under the Emerging Markets category, while reiterating a strong sustainability focus in its newly released Integrated Annual Report for the fiscal year 2021.
Inclusion on the Dow Jones Sustainability Emerging Markets Index for the 3rd Year Running
Top Glove is among the top 10% in the Health Care Equipment & Supplies industry category globally in the S&P Global Corporate Sustainability Assessment as at the score date of 12 November 2021; a commendable increase from the previous year, when it stood among the top 19% of its peers.
The Company is one of three (3) Malaysian companies, aside from new additions PETRONAS Chemicals Group Berhad and MISC Berhad, to be included on the prestigious 2021 Index, marking its third year running on the Index. It is also the only Malaysian healthcare manufacturing company, and one of three (3) healthcare industry companies to be included on this year’s DJSI under the Emerging Markets category.
The assessment covers ESG dimensions that include corporate governance; supply chain management; operational eco-efficiency; climate strategy; occupational health and safety; labour practices; and human rights; among others.
Manjit Jus, Global Head of ESG Research, S&P Global, said: “We congratulate Top Glove for being included in the Dow Jones Sustainability Index (DJSI) for Emerging Markets. A DJSI distinction reflects being a sustainability leader in your industry. The record number of companies participating in the 2021 S&P Global Corporate Sustainability Assessment is testament to the growing movement for ESG disclosure and transparency.”
The DJSI, operated by S&P Global, headquartered in the United States, is the world’s foremost provider of ratings that evaluate the world’s leading companies in terms of ESG criteria.
Highlights of the FY2021 Integrated Annual Report
In its recently released FY2021 Integrated Annual Report, the world’s largest manufacturer of gloves outlined its efforts to step up its ESG initiatives, having declared Y2021 as Top Glove’s Year of ESG and establishing ambitious interim targets to be attained by FY2025 as it works towards a net-zero carbon roadmap and target setting.
Under the Company’s FY2021 environmental highlights within the Integrated Annual Report, Top Glove detailed progress in carbon emission reduction at its factories. Additionally, the Company aims to achieve zero carbon emissions at its water treatment plants by FY2022 and at its office premises and warehouses by FY2025. Further, the Company aims to reduce 25% of carbon emission intensity by FY2025, against a base year of FY2021.
Additionally, in FY2021, the Company made strides to cement its position as an employer of choice to 22,000 people by strictly enforcing its Zero Cost Recruitment Policy for foreign workers; investing RM220 million to improve accommodation for its 13,000 foreign workers; strengthening its employee independent grievance channels; and running robust health, safety, and security initiatives for all employees, including successfully inoculating its entire workforce against COVID19.
As a homegrown entity with a global outlook, in FY2021, the Company contributed RM2.2 billion in income tax towards nation-building and to promote sustainable economic growth; and provided RM191 million worth of financial aid, personal protective equipment, and medical devices to support communities and frontliners during the pandemic. It also reaffirmed its dedication towards supporting local livelihoods in challenging times through a yearlong recruitment drive which provided 9,720 job opportunities of which 85% were offered to Malaysians across all levels and divisions in FY2021.
Top Glove has strengthened its governance practices through various measures in the same financial year, which included having a diverse Board of Directors, of whom 42% are women; limiting the tenure of Independent Directors to nine (9) years without any further extension; having an independent external party conduct a Board evaluation; linking 40% of Key Performance Index (KPI) to ESG metrics, and facilitating quarterly engagements between its Independent Directors and worker representatives.