Leadership Statement

Tan Sri Dr. Ngau Boon Keat

Dear Stakeholders,

We are pleased to present DIALOG’s Sustainability Report for the financial year ended 30 June 2023.

Despite the challenges thrown up after the pandemic – geopolitical instability and a sluggish global economy, DIALOG continued to display resilience. It underscores our commitment to managing the Group in a sustainable manner.

In the changing landscape of the industry today, we believe in positively impacting our business and the communities where we operate. Following the introduction of a refreshed Environmental, Social and Governance (“ESG”) framework in FY2022, we took steps in FY2023 to develop goals, targets and initiatives of key material topics.

We introduced a Sustainability Policy in August 2023, which serves to integrate sustainability with the long-term viability of our business. This will lead to value creation and, thus, positive effects on the environment, the economy and our stakeholders.

DIALOG’s ESG agenda is centered upon the following 3 pillars:

Environmental Stewardship

Environmental Stewardship

We carefully conserve and preserve the environment by first identifying our impacts, followed by responsible management practices and mitigation measures when appropriate.
Advancing People

Advancing People

We strive to make positive contributions to our employees, communities and societies in which we operate.
Robust Governance and Ethical Practices

Robust Governance and Ethical Practices

We aim to uphold the highest standards of governance, business ethics, integrity and transparency.
Tan Sri Dr. Ngau Boon Keat
Executive Chairman
Tan Sri Dr. Ngau Boon Keat

ESG at a Glance

Sustainability Policy
Water Consumed
MyKasih Community Engagement
Hazardous Waste
Women in Management
Seagrass Conservation & Monitoring Programme
Training
HSE Performance
Solar Power Generation
Gender Diversity on the Board
Energy Consumption
Established GCOE
Expansion Into Renewable Fuel Storage

Sustainability Governance

DIALOG’s sustainability governance is supported by key policies, systems, processes, standard operating procedures and best practices.

Governance Structure

Roles and Responsibilities
Board of Directors
Board of Directors
Risk Management Committee
Risk Management Committee
Executive Leadership Team, chaired by Executive Chairman
Executive Leadership Team, chaired by Executive Chairman
Sustainability Development Working Committee
Sustainability Development Working Committee

Material Topics

We conduct a comprehensive materiality assessment every 4 years, with a midpoint review every 2 years. Based on the outcome of the extensive materiality assessment conducted in FY2022, we have identified 16 material topics that represent DIALOG’s most significant ESG impacts.

Materiality Matrix

Environmental Stewardship
CCS
Climate Change Strategy
WEM
Waste & Effluent Management
WM
Water Management
AE
Air Emissions
BD
Biodiversity
Advancing People
OSH
Occupational Safety & Health
HCM
Human Capital Management
CE
Community Engagement
LS
Labour Standards
SCM
Supply Chain Management
Robust Governance and Ethical Practices
EP
Economic Performance
CG
Corporate Governance
ABC
Anti-Bribery & Corruption
BE
Business Ethics
RM
Risk Management
TT
Tax Transparency

DIALOG ESG Strategy Framework's Alignment to UNSDGs

DIALOG supports the aspirations of the United Nations 17 Sustainable Development Goals (“SDGs”). Building upon the Group’s current ESG initiatives, DIALOG is prioritising 8 SDGs as listed in the table below. Together, these cement our dedication towards building a sustainable future for the communities in which we operate.

ENVIRONMENTAL STEWARDSHIP
ADVANCING PEOPLE
ROBUST GOVERNANCE AND ETHICAL PRACTICES
We carefully conserve and preserve the environment by first identifying our impacts, followed by responsible management practices and mitigation measures where appropriate
We strive to make positive contributions to our employees, communities and societies in which we operate
We aim to uphold the highest standards of governance, business ethics, integrity and transparency

Prioritised SDGs

Sustainable Development Goals Logo
UNSDG

Our ESG Roadmap

To accelerate our ESG journey, DIALOG has developed an ESG Roadmap, outlining the initiatives the Group aims to achieve in the short to medium-term. This proactive approach enables our organisation to evolve and allocate the appropriate resources toward accomplishing our Roadmap goals.

Phase
Commitment towards ESG
Taking action in promoting sustainability
Timeframe
Short-term (2023-2025)
Medium-term (2026-2030)
Goal
  • All employees are aware and informed of our commitment towards ESG
  • Clear roles and responsibility established in governance structure for sustainability related topics
  • Baseline and Key Performance Index (“KPIs”) set for goals
  • Sustainability is integrated in each business functions group-wide
  • All relevant employees managing sustainability topics are equipped with fundamental knowledge and skills to take actions
  • Clear goals and KPIs for each material topics are well defined

Policies and Guidelines

In August 2023, DIALOG introduced its Sustainability Policy which reinforces the Group’s commitment to sustainability as part of our corporate mission. We believe that in addition to helping curb global climate challenges, sustainability will help drive business opportunities and success.

Goals and Targets for 5 Key Material Topics

As we lay the groundwork for sustainability, we have identified 5 key topics for goal and target setting for the short to medium-term. We will ensure that our initiatives stay relevant and on track to achieving our goals through regular reviews and refinements. We also intend to continuously expand its scope by setting goals and targets for more topics.

Material Topics
Goals
Short / Mid-term Targets (by FY2030)
CCS

Climate Change

Reduce waste generation and ensure these are disposed/discharged properly
Enhance awareness and workshop trainings to ensure proper waste management
OSH

Occupational Safety & Health

Prevent workplace accidents or injuries, and mitigate safety and health risks
  1. Total Recordable Incident Rate (“TRIR”): Maintain better than industry benchmark
  2. Maintain positive OSH impact from leaders through HSE Walkabout for open sharing annually
HCM

Human Capital Management

Enhance labour standards and practices
Launch Sexual Harassment e-learning and set e-learning target
Fair wage and employee benefits
100% employees have access to Employee Assistance Program (“EAP”)
Improve workforce diversity
Continuously introduce initiatives to attract and retain more females in management
Enhance workforce competency continuously
More than 80% of employees attend minimum 8 hours of training annually
CE

Community Engagement

Promote a caring culture by positively impacting communities through meaningful CSR activities via MyKasih Foundation
More than 85% of employees participate in community volunteerism activities annually
BE

Business Ethics

Pursue the highest standards of corporate governance and business ethics
More than 80% of DIALOG employees to complete training courses on critical areas annually
Minimise supply chain sustainability risk
Launch ESG related audit of critical suppliers and contractors to ensure they are compliant and uphold the same ESG values as DIALOG

Environmental Stewardship

The Group is committed to operating responsibly to ensure we minimise our impact to the environment, taking into consideration our role in tackling the climate change crisis, energy consumption, greenhouse gas emissions, the protection of biodiversity, water consumption, waste management and prevention of pollution.

CCS

Climate Change

To address the climate change challenge, we have formulated a Climate Change Strategy focusing on four areas: Decarbonisation, Sustainable and Renewables, Circular Economy, and Climate Risk Management. Each area has been identified to align with our internal operations and leverage on our business strengths, while creating a positive impact on a broader environment.

Climate Aspiration
CLIMATE ASPIRATION:
Net Zero Carbon Emissions by 2050
Short-Term (2023-2025)
Mid-Term (2026-2030)
Risk Theme 1:
LOW CARBON ECONOMY TRANSITION
Risk Theme 2:
CLIMATE RISKS
Focus Area 1
Decarbonisation
Focus Area 2
Sustainable and Renewables
Focus Area 3
Circular Economy
Focus Area 4
Climate Risk Management
AE
WM
WEM

Air Emissions, Water Management, Waste & Effluent Management

DIALOG employees gathered to do their part at the launch of DIALOGTower’s Recycling Programme, where recycled waste is collected by DIALOG ESECO

DIALOG sets and maintains standards of environmental management via the Group’s Health, Safety & Environment Management System (“HSEMS”). The Group demonstrates our commitment to keep our environmental footprint to a minimum through our HSE Policy, where we have stated that we will strive to:

HSEMS ensures proper procedures and work systems are in place to manage DIALOG’s air emissions, water, waste and effluent.

BD

Biodiversity

DIALOG volunteers collecting data during the seagrass monitoring session inTanjung Kopok, Johor.

Detailed Environmental Impact Assessments (“DEIA”) are carried out and are mandatory for any new project, or expansion of existing projects. The scope of the DEIAs include impact assessments on biodiversity, water pollution, air quality, noise pollution and waste management. These assessments are then used to formulate site specific Environmental Management Plans (“EMP”) and ongoing Environment Monitoring Management Plans for the duration of the project. To ensure compliance with EMPs, we engage with registered DOE Consultants to conduct yearly environmental audits based on the DEIAs and EMPs.

DIALOG remains committed to minimising our impact on biodiversity through close engagement with local governments and regulators as well as working with local or international organisations and non-governmental organisations (“NGOs”).

Advancing People

DIALOG’s Engineer at project site

People are integral to the sustainability of any organisation. Employees, suppliers and the surrounding community have to work in tandem to create long-lasting value for all stakeholders. As such, DIALOG will be a positive impact on our employees, suppliers and the communities where we operate.

OSH

Occupational Safety & Health ("OSH")

OSH impacts our operations, productivity and the long-term viability of operations. Aside from protecting the Group against financial, operational and legal ramifications, a good OSH track record will help attract and retain talent, instil trust in our customers and stakeholders, and guarantee our license to operate.

This ensures that we create value and meet our customers’ needs. As such, DIALOG is committed to protect the safety and health of our employees and the people we work with.

HSE Policy & Guidelines

DIALOG’s HSE Policy drives our commitment to ourstakeholders with respect to HSE.

Aim for Zero Non-Compliance & Harm to People
0.33
Total Recordable Incident Rate (TRIR)
0
Lost Time Injury Rate (LTIR)
0
Work Related Employee Fatalities
0
Work Related Contractor Fatalities
HCM

Human Capital Management

Our employees are our most valuable asset. They are critical to the sustainability of the Group’s business as their performance directly affects the outcome of our deliverables to our valued clients and stakeholders.

As such, it is inherently important for us to manage our people holistically and effectively, especially as the competition for talent in the marketplace continues to intensify.

Women in Management
Employees by Gender
Local Hiring
Employees by Category
Employees by Age Group
CE

Community Engagement

Community engagement is part of work culture of being caring and compassionate. It motivates people to be innovative in meeting ESG goals, as well as being aware of the communities that surround us. It positively impacts the communities and ultimately contributes to our sustainability.

DIALOG supports the MyKasih Foundation (“MyKasih”), a private non-profit organisation with a vision to create loving and caring neighbourhoods all over Malaysia.

Recipients of MyKasih ‘Love My School’ Student Bursary Programme
#1
Recipients of MyKasih ‘Love My School’ Student Bursary Programme
01
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Recipient of MyKasih ‘Love My Neighbourhood’ Food AidProgramme at the checkout counter
#2
Recipient of MyKasih ‘Love My Neighbourhood’ Food AidProgramme at the checkout counter
02
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Students of SK Batu 14 in Tapah, Perak (a DIALOG-supported school) harvesting the vegetables from the aquaponic edible garden
#3
Students of SK Batu 14 in Tapah, Perak (a DIALOG-supported school)harvesting the vegetables from the aquaponic edible garden
03
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DIALOG has been supporting SK Bukit Lanjan’s rugby teamThe Lanjan Tigers since its formation in 2015
#4
DIALOG has been supporting SK Bukit Lanjan’s rugby team The Lanjan Tigers since its formation in 2015
04
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Kelulut Honey being harvested in Kampung Manok, Jeli, Kelantan
#5
Kelulut Honey being harvested in Kampung Manok, Jeli, Kelantan
05
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DIALOG volunteers hard at work harvesting cucumbers in Kampung Pantos, Pahang
#6
DIALOG volunteers hard at work harvesting cucumbers in KampungPantos, Pahang
06
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SCM

Supply Chain Management

At DIALOG, supply chain management remains paramount in achieving long-term success and resilience. We emphasise ethical and responsible business practices in our supply chain management approach. The supplier and contractor screening process commences with the evaluation of potential suppliers and contractors through a qualification process and invitation to bid.

Robust Governance And Ethical Practices

We uphold the highest standards of governance, business ethics, integrity and transparency as robust governance and ethical behaviour are the bedrock of every responsibly managed organisation.

CG
BE

Corporate Governance & Business Ethics

DIALOG adheres to good governance as advocated by the Malaysian Code on Corporate Governance(“the Code”). The Principles and Practices of the Code, where necessary and appropriate, are carried out across the Group to ensure that high standards of transparency, accountability and integrity are attained in managing the Group’s business.

ABC

Anti-Bribery & Corruption

At DIALOG, ethical behaviour is of paramount importance to us, and we take compliance with our established Code of Business Ethics and related policies seriously. The implementation of Corporate Liability involving commercial organisations under the Malaysian Anti-Corruption Commission’s (“MACC”) Section 17A which took effect on 1 June 2020 resonates with our objective of fostering a business environment free of bribery and corruption.

RM

Risk Management

Risk Management is a prevalent feature of DIALOG’s ways of working. Risk Management processes are governed by the Risk Management policy and framework. Group Risk Management works closely with business lines to ensure that there is an ongoing process of identifying, evaluating and managing significant business risk exposures.

TT

Tax Transparency

Taxes help spur economic growth and enable governments to meet societal demands. As a responsible corporate citizen, DIALOG observes all applicable laws, rules and regulations in meeting the group’s tax compliance and reporting responsibilities in countries where it operates.

EP

Economic Performance

As an integrated technical services provider to the energy sector, DIALOG’s business model is well structured to address the volatility risk posed by oil prices and
currency movements to the sustainability of the Group. The Group has proactively adopted various strategies in our business, including: