Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd. (KPKKT), the Group’s timber management subsidiary, adopts the Selective Management System (SMS) to manage the timber concession area in its role as logs supplier for the Group. KPKKT is also responsible for developing and managing its concession in a sustainable manner in accordance with Sustainable Forest Management (SFM) standards to ensure that the environment of the concession is well preserved.

 

ENVIRONMENTAL POLICY

In this context, KPKKT as a Forest Management Unit (FMU) subscribes fully to the Malaysian Criteria and Indicators of which the above SMS was based on. KPKKT also cooperates with the State Forestry Department to ensure that best management practices in logging are being observed and maintained to meet the requirements of the Malaysian Timber Certification Scheme (MTCS).

KPKKT has been awarded the FSC® certification endorsement since 21 April 2008 by Scientific Certification Systems (SCS), a leader and pioneer in third party auditing and certification of forest management operations around the world, using the SCS-FSC Interim Standard for Forest Management Certification in Malaysia Version 5.0 2014 for well-managed forests.

This certification verifies that KPKKT’s tropical forest of 103,719 hectares in Dungun Timber Complex (DTC) are managed according to the rigorous international standards of the FSC® under a selective cutting approach that maintains continuous forest cover and species diversity.

In addition, another subsidiary, Pesama Timber Corporation Sdn Bhd (Pesama), has successfully obtained the FSC® endorsed certification for its 20,243 hectares at the Cherul Forest Concession (CFC) on 10 December 2012 as certified by SCS Global Services.

KPKKT’s DTC and Pesama’s CFC concession areas combined are the largest forests in Peninsular Malaysia to have the FSC® certification. KPKKT’s DTC concession area was the second natural forest in Malaysia to achieve this distinction.

The Group has decided to combine the FSC® certification and the management of the DTC and CFC forest concessions under one single management by KPKKT. This was made to ensure that the unique tropical forest resources and ecology in both areas are professionally managed in a sustainable manner and conserved in perpetuity in accordance with the prevailing prescribed local and international standards. In line with the decision, the FSC® certification of Pesama for CFC has been terminated and will be incorporated into the KPKKT FSC® Certificate upon successful completion of a surveillance audit for both of the concession areas.

The Group is committed to adopt the National and International Convention on Biological Diversity to sustain the richness of flora and fauna in the concession area. With the FSC® certification, the Group would be able to access to markets and customers, domestically and abroad, that demand environment-friendly certified wood products.

Golden Pharos Glass Sdn Bhd (GP Glass), a subsidiary of GPB, has been assessed and registered under the provision of ISO 9001: 2015 Quality Management System which is based on the plan-do-check-act methodology which provides a process-oriented approach to documenting and reviewing the structure, responsibilities, and procedures required to achieve effective quality management of its current product range of tempered, heat strengthened, double-glazed, laminated and ceramic printed safety glass. This certification is valid until 29 July 2023.