Climate Change
Decarbonising our future through responsible action
We are advancing climate change through ESG-linked remuneration, renewable energy investments and efforts to embed decarbonisation criteria into future capital expenditure decisions.
01
ESG-linked
Remuneration Framework
Our ESG-Linked Remuneration Framework acts as a strategic driver in advancing sustainable development. By aligning incentive components with sustainability targets, it reinforces our steadfast commitment to stakeholders and drives catalytic change across the Group. The ESG Remuneration Framework supplements our existing remuneration policies by aligning the current remuneration of selected senior management personnel with the sustainability targets. These targets are assessed through a balanced scorecard and modifier approach, providing a structured and measurable basis for evaluation.
The ESG Remuneration Framework applies to selected members of Key Senior Management — including the Group CEO — as well as Key Operating Management and the Head of Group Sustainability. We intend to extend this remuneration structure to include our employees, considering the variability in their compensation and the level of accountability associated with their roles.
The ESG Remuneration Framework covers the following 4 ESG performance metrics as indicated below:
GHG Emissions
Performance
Zero Workplace
Fatalities
Zero Workplace
LTIR
Average Training
Hours per Employee
02
Investing in cleaner
and more resilient operations
Renewable Energy Investment
The Group has demonstrated its commitment to decarbonisation through significant capital allocation towards renewable energy solutions.
More than
RM 6 million
Invested in solar implementation projects at our manufacturing facilities.
Impact &
Alignment
These investments aim to reduce Scope 2 emissions, lower energy costs, and enhance energy security, and are aligned with Malaysia’s National Energy Transition Roadmap (NETR) objectives to accelerate the country’s shift towards a low-carbon economy.
03
Working to
decarbonise its
future capital
expenditures
At present, Wang-Zheng Berhad (WZB) has not publicly disclosed a formal policy or methodology to align all future capital expenditures with its long-term GHG targets or the Paris Agreement’s 1.5°C objective.
However, WZB is currently reviewing its capital expenditure governance framework to embed science-based GHG reduction criteria into future investment decisions. The objective is to ensure that all major projects undertaken from FY2025 onwards are consistent with the Group’s decarbonisation roadmap, including the planned establishment of a Scope 1 & 2 baseline and emissions intensity reduction targets.
1.5°C
Aligning with
the Paris Agreement
Scope 1 & 2
Establishing
a baseline
FY2025+
Applying science-based
criteria to major projects
Low-Carbon Economy
Supporting Malaysia's
energy transition roadmap (NETR)