Water Security
Wang-Zheng Berhad (WZB) acknowledges the significance of water stewardship, particularly as all of its operations are located in Selangor, a region categorised as facing extremely high-water stress (Water Stress Index ≥0.8) according to the Development of Water Stress Index for Water Resources under Changing Climate in Klang Valley (Malaysia Water Research Journal, Vol. 10, 2020)...
Effective from Q3 2025, the Group’s production facility transitioned from processing raw cotton to utilising imported semi-finished dry cotton rolls. This strategic change has removed the requirement for water use within WZB’s direct operations, thereby eliminating operational withdrawals and wastewater discharges. Consequently, WZB’s manufacturing activities are categorised as non-water intensive under current conditions, with no material direct dependency on water resources.
The Group recognises, however, that water dependency remains material in the upstream value chain, particularly in relation to cotton cultivation and pre-processing stages undertaken by suppliers. While such impacts fall outside WZB’s operational boundary, the Group remains committed to maintaining awareness of supplier practices and monitoring broader water-related risks where feasible.
By differentiating between direct operational impacts and upstream supply chain dependencies, WZB ensures clarity of disclosure and avoids overstating its role in water-intensive processes. This positioning enables the Group to remain accountable for its sphere of influence while protecting against the risk of misinterpretation regarding its operational water footprint.
Water Risk Management and Stakeholder Engagement
Although all of Wang-Zheng Berhad’s (WZB) facilities are located in Selangor, a region classified as facing extremely high water stress, the Group’s manufacturing operations are no longer water dependent. Since Q3 2025, the cotton factory has ceased raw cotton processing and transitioned to imported semi-finished dry cotton rolls, thereby removing the need for operational water withdrawals and wastewater treatment.
In this context, WZB’s water risk management is directed towards monitoring and indirect exposure rather than direct operational consumption. The Group’s approach includes:
- Evaluating supply chain dependencies, with particular attention to vendors engaged in water-intensive stages such as cotton cultivation and pre-processing.
- Maintaining open dialogue with vendors and stakeholders to remain aligned with regional water stewardship and resilience initiatives.
- Promoting water awareness among employees and communities, reinforcing responsible use in daily activities even where operations are categorised as non-water intensive.
Through these measures, WZB ensures transparency in communicating its limited direct operational footprint while acknowledging potential indirect risks within its value chain and external environment. This balanced approach aligns with international sustainability standards and reflects accountability without overstating control over upstream impacts.
Water Reduction Targets and Performance
Recognising the urgent need to reduce water use, WZB has established a quantified water reduction target as part of its broader environmental commitment:
- Baseline Year: FY2022 (Total freshwater withdrawal: 29,628 m³)
- Target Year: FY2030
- Reduction Goal: 10% reduction in total freshwater withdrawal by 2030
- Target Volume: ≤ 26,665 m³ by FY2030
- Scope: Manufacturing facilities in Selangor
Progress is measured annually to ensure consistent improvements toward the target.
Operational Performance and Water Intensity Trends
WZB has demonstrated consistent reductions in water withdrawal intensity, normalised against revenue, over the past three financial years:
| Financial Years | Total Water Withdrawal (m³) | Water Intensity (m³ per RM million revenue) |
|---|---|---|
| FY2022 | 29,628 | 110.4 |
| FY2023 | 28,914 | 102.4 |
| FY2024 | 27,304 | 88.3 |
This represents a ~20% reduction in water intensity since FY2022, achieved through operational optimisation, employee engagement, and efficiency-focused initiatives.
Regulatory Compliance and Environmental Safeguards
In FY2024, WZB recorded zero incidents of non-compliance with all applicable water-related permits, standards, and regulations. This includes:
- Adherence to water withdrawal limits and permits issued by local water authorities.
- Compliance with wastewater discharge standards, including key effluent parameters (e.g. BOD, COD, pH) regulated by the Department of Environment (DOE).
- Fulfilment of other statutory requirements under Malaysian environmental law.
WZB’s environmental compliance framework encompasses:
- Regular monitoring and testing of wastewater prior to discharge.
- Periodic audits and inspections for alignment with permit conditions.
- Prompt implementation of corrective measures in the event of deviations.
Wang-Zheng Berhad remains committed to enhancing its water stewardship and achieving its reduction targets under indicator EWT25. Progress will continue to be disclosed annually in the Group’s Sustainability Statements to ensure accountability, transparency, and continuous improvement.
Three Years Summary of Total Chemical Oxygen Demand (COD) from Effluent
| Latest Year | 2025 |
|---|---|
| Ton | 0.0003499t/L |
| T-minus 1 year | 2024 |
| Ton | 0.0007596 t/L |
| T-minus 2 years | 2023 |
| Ton | 0.0007817 t/L |
Note:
Most of the data presented is as of July 2025 and may be updated upon the close of the fiscal year. For the latest ESG disclosures, please refer to our most recent Sustainability Statement and Corporate Governance (CG) Report.