Energy Megachem successfully installed solar panels at our Singapore and Malaysia’s operation which has resulted in energy savings as well as promotes cleaner and greener environment, thereby further solidifying our commitment to sustainability. Most of our office lighting systems uses energy saving features to reduce electricity consumption. Through regular preventive maintenance, we make our manufacturing facility run more efficiently which will in turn minimize energy consumption. Following a fire incident in July 2023, the solar panels in one of our warehouses in Singapore was destroyed. We have since started reinstalling the solar panels. Water, Effluent & Waste Megachem implemented LEAN methodology, a systematic approach to reduce or eliminate activities that don’t add value to the process. Arising from this exercise, we managed to reduce the quantity of waste water generation. By standardizing washing procedure for different types of products based on its chemical properties, developing training programs for operator on washing process and implementing water recycling program as well as effective production planning, we are able to reduce waste water. Waste water generation is one of our important KPIs to achieve for everyone in Megachem in order to minimize cost and play our role to help our environment. We continue to look for water reduction activities both in plant and office building through installed water saving device, cut down unnecessary water usage and recycle water wherever possible in plant activities. We ensure that chemical wastes are treated responsibly by engaging licensed industrial waste treatment companies. Product and sales information such as product and material safety data sheets as well as sales invoices are maintained in our system and transmitted to our customers electronically thus reducing usage of paper. CLIMATE-RELATED RISKS IMPACT MITIGATING RISKS AND OPPORTUNITIES Short-term Medium-term Long-term Extreme weather Scenario: Mild (<2 deg Celsius warming) Scenario: Severe (>2 deg Celsius warming) Increased severity of extreme weather events such as cyclones and floods Increased severity of extreme weather events such as cyclones and floods may cause damage to our facilities and disruption to supply chain, resulting in financial and business loss. Locating our facilities in areas which are less prone to flooding. Conducting regular inspection and evaluation of our facilities and 3rd party warehouses. Undertaking sufficient insurance to cover such risks. Legend Minor Moderate Major Note: We are unable to quantify the impact of each climate-related risk on the Group due to uncertainties in the inputs and assumptions about climate outcomes. MEGACHEM LIMITED ANNUAL REPORT 2025 89 SUSTAINABILITY REPORT
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