Sustainability

Protecting our Planet

The production of manganese alloy and ferrosilicon is an energy-intensive chemical process. It requires carbon sources as reductants in the carbothermic reduction of metal oxides. This smelting process generates various emissions, including particle dust and carbon dioxide. Due to the nature of the chemical reactions involved in ferroalloy smelting, significant emissions reductions rely on technological advancements. However, in light of the effects of global warming, pollution and biodiversity loss, it is our responsibility as a good corporate citizen to implement initiatives to improve our operational processes and minimise our impacts on the environment.

OMH is committed to implementing robust environmental management practices across all its operations. To achieve elevated environmental performance across its functions, we have instituted a comprehensive Environmental Policy.

Climate Action

Climate change poses a critical threat to humanity. The Intergovernmental Panel on Climate Change stipulated that limiting the Earth’s average temperature increase to 2°C is vital for controlling the impacts arising from climate change. Achieving this goal requires a 95% reduction in greenhouse gas (GHG) emissions by 2050.

We have implemented a climate change response strategy that expands renewable energy use, reduces operating gases, and improves energy efficiency throughout our manufacturing process. We are also exploring the development of a decarbonisation roadmap, which will outline a clear path towards a low-carbon future for OMH.

Greenhouse Gas Verification

We conducted independent verification of our GHG emissions to establish our base year inventory (2023). The verification was carried out by BSI Services Malaysia in accordance with ISO 14064-1:2018 and the principles of ISO 14065:2013. The verification was conducted at a reasonable level of assurance at a materiality of 10%. The GHG inventory report was also prepared in accordance with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3).

Energy Management

Our flagship smelting complex is located within the Samalaju Industrial Park, designed explicitly for energy-intensive industries. At the inception of our plant, we secured a 20-year power purchase agreement with the State’s power company. The electricity predominantly comes from renewable sources, mainly hydropower. Our operations demand a consistent electricity supply, especially for the high-temperature smelting processes crucial in transforming raw materials into ferroalloys. The electric arc furnace operates at temperatures over 1200°C, reducing metal oxides to create various ferroalloys. Powering our production processes with predominantly hydroelectricity significantly reduces our carbon footprint.

We have also implemented various measures to enhance the energy efficiency at our smelting complex. OM Sarawak is in the process of implementing the ISO 50001:2018 Energy Management Systems certification, to consolidate the ongoing energy management initiatives into a structured, process-based energy management framework.

Towards Zero Waste & Circularity

At OMH, we understand the need for businesses to shift from a linear process of take-make-waste to a circular economy approach, to tackle the environmental issues of pollution, ecosystem degradation and climate change. We recycle and reuse by-products as raw materials to reduce waste where possible.

Although we do not source water from areas experiencing water stress, we believe that it is our responsibility as a good corporate citizen to conserve water. We have implemented comprehensive measures throughout the smelting complex to reduce water consumption.

Nature & Biodiversity

We recognise the importance of environmental stewardship and biodiversity conservation. Similajau National Park lies within a 3km radius of our flagship smelting complex. We are dedicated to addressing biodiversity concerns, and this commitment involves actively working towards reducing and avoiding adverse impacts on biodiversity. OM Sarawak conducts Quarterly Environmental Monitoring, which includes monitoring of pollutants in foliar and fruits. Our quarterly readings have been well-below the baseline concentration limits identified during the Detailed Environmental Impact Assessment (DEIA) conducted before construction of the smelting complex.

Preventing Pollution

Air and water pollution can impact the health of local flora and fauna, as well as impact the living conditions of our workers and local villages. We recognise the importance of preventing pollution arising from our operations, and seek to minimise our environmental impacts through various monitoring, control and treatment measures.

Our approach towards air emissions management revolves around optimising production processes to minimise generation of non-greenhouse gas emissions. Additionally, we employ pollution control technologies such as bag filter systems to reduce atmospheric pollution from our smelting operations.

We are firmly committed to mitigating water pollution by ensuring effluent meets regulatory water quality standards before its release to the environment. Effluent is typically generated at the smelting complex from surface runoff, and a sedimentation pond effectively eliminates suspended solids, assisting to maintain the water quality. Our discharged effluent consistently adheres to permissible limits stipulated by the Environmental Quality (Industrial Effluent) Regulations, 2009.