This article first appeared in The Edge Malaysia Weekly on November 27, 2023 - December 3, 2023

Sustainability has always been an integral part of our business. We appreciate the support and dedication of our employees, who have been instrumental in achieving our sustainability goals. It is a truly collective effort from all HRC employees.” - Yin

Hengyuan Refining Co Bhd (HRC) took the gold award for the most consistent performer over five years at The Edge Malaysia ESG Awards 2023, a feat it achieved because of its consistent membership in the FTSE4Good Bursa Malaysia Index and transparency in reporting, says its CEO Luke Yin.

“We have consistently provided comprehensive and transparent reporting on environmental, social and governance metrics. As mentioned in our 2022 Sustainability Report, we have set the aspiration to achieve net-zero carbon emissions by 2050, and reducing emissions from our production will take centre stage,” he adds.

In 2022, the company updated its Energy Masterplan to support its commitment to reducing its carbon footprint comprehensively, incorporating a range of initiatives to reduce its energy usage by 2029. The plan comprises 17 energy efficiency strategies to be executed in phases throughout its Port Dickson refinery, which includes significant modifications to its equipment, incurring capital expenditure and temporary shutdowns during implementation.

Through these efforts, HRC aims to reduce carbon emissions by 62,000 tonnes, in line with Malaysia’s Nationally Determined Contribution under the Paris Agreement.

In addition, the group has invested heavily in the implementation of Euro 5 Gasoil (E5G), which has reduced sulphur content, and commenced planning for implementation of Euro 5 Mogas specifications. It is also exploring opportunities to further clean up its Euro 4M petrol products to the E5 specifications in support of the government’s initiative for cleaner fuel.

Amid the continuously changing sustainability landscape, the group conducts annual materiality assessments to assess the implications of economic, environmental, social and governance matters on its business and operations.

This involves re-evaluating the materiality of the previous year’s issues to ascertain their continued relevance, as well as identifying and acknowledging new significant matters that have arisen during the year, in line with the United Nations Sustainable Development Goals.

On the other hand, HRC recognises climate change as a long-term risk that could impact its business and has added it to its company-wide Risk and Opportunity Register, which is reviewed quarterly by the management and sighted by the risk management committee and board of directors.

These risks are categorised as transition and physical risks, as outlined by the Task Force on Climate-related Financial Disclosures.

“Sustainability has always been an integral part of our business. We appreciate the support and dedication of our employees, who have been instrumental in achieving our sustainability goals. It is a truly collective effort from all HRC employees,” says Yin.

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