Dear Stakeholders,
Amidst a rapidly evolving global landscape marked by economic uncertainty, climate challenges, and societal expectations that continue to shape how businesses approach sustainability, it is evident that balancing business resilience with sustainable practices has become more critical than ever.
Since launching our updated Environmental, Social andGovernance (“ESG”) framework in FY2022, we continue to make progress in setting goals, targets and initiatives on key material topics. This year, following our FY2022 materiality assessment, we conducted a midpoint review with our stakeholders to gather their feedback and assess the relevance of these topics in today’s context.
Also building on our Sustainability Policy, we introduced the Environmental Policy in September 2024. Collectively, these policies help us mitigate risks, uphold our reputationand generate long-term value through responsible resource use and environmental stewardship.
DIALOG’s ESG Strategy Framework serves as our guide for integrating sustainability considerations throughout the Group. We manage and structure our material topics within three pillars: Environmental Stewardship, Advancing People as well as Robust Governance and Ethical Practices.
DIALOG supports the United Nations’ 17 Sustainable Development Goals (“SDGs”) and prioritises 8 SDGs to enhance our current ESG initiatives, underscoring our commitment to building a sustainable future for the locations which we operate in.
DIALOG’s sustainability governance is supported by key policies, systems, processes, standard operating procedures and best practices.
DIALOG’s material topics undergoes a comprehensive materiality assessment every four years, with a high-level midpoint review every two years.
The midpoint review that was conducted in FY2024 saw some movement with regards to the relative importance of DIALOG’s material topics.
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.
DIALOG recently introduced its Environmental Policy in September 2024, further building on the groundwork laid by our Sustainability Policy, which was introduced in August 2023. This progression underscores the Group’s commitment to minimising our environmental impact in our pursuit of sustainable growth. Together, these policies help us manage risks, safeguard our reputation and create long-term value through responsible resource utilisation and environmental stewardship.
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.
The Group is committed to operating responsibly to ensure we minimise our impact on the environment, taking into consideration our role in tackling the climate change crisis through better management of energy consumption, greenhouse gas emissions, biodiversity protection, water consumption, waste management and pollution prevention.
In FY2022, we formulated a Climate Change Strategy focusing on four areas: Decarbonisation, Sustainable and Renewables, Circular Economy, and Climate Risk Management. Each area aligns with our operations and leverages on our business strengths to positively impact the broader environment.
DIALOG sets and maintains standards of environmental management via its Health, Safety & Environment ManagementSystem (“HSEMS”). The Group demonstrates our commitment to reducing our environmental impact 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.
Detailed Environmental Impact Assessments (“DEIA”) are mandatory for new projects or expansions of existing ones. DEIAs assess impacts on biodiversity, water pollution, air quality, noise pollution and waste management. These assessments go into formulating site-specific Environmental Management Plans (“EMP”) and ongoing Environment Monitoring Management Plans for the project duration. To ensure compliance with EMPs, we engage with registered DOE consultants to perform annual environmental audits based on the DEIAs and EMPs.
DIALOG remains committed to minimising our impact on biodiversity through close engagement with local governments, regulators and non-governmental organisations (“NGOs”).
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 is committed to positively impacting our employees, suppliers and the communities where we operate.
Beyond protecting the Group against financial, operational and legal risks, a strong OSH record enhances our ability to attract and retain talent, build trust among our customers and stakeholders, and ensures our license to operate. As such, DIALOG is committed to protect the safety and health of our employees and the people we work with.
Ensuring workplace safety is key and a main priority at DIALOG. As a leading integrated service provider to the energy sector, we adopt the best Health, Safety and Environment (“HSE”) practices, ensuring compliance with local and international standards, as well as our clients’ requirements.
DIALOG’s HSE Policy drives our commitment to our stakeholders with respect to Health, Safety and Environment.
Our employees are our most valuable asset. Their well-being and performance are critical to the sustainability of the Group’s business, as they directly affect 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, particularly as competition for talent in the marketplace grows increasingly fierce.
Note:
* Figures reported in FY2022 and FY2023 have been adjusted to reflect the reclassification of employee categories that now includes daily wage employees.
** The category titles in “Women in Management” have been renamed in the 2024 Annual Report, and it was previously known as Senior, Upper and Middle Management respectively. The calculation method remains unchanged.
Community engagement provides an avenue for collaborative efforts to be made towards overall community welfare and well-being. We believe that this is a meaningful way of building trust as a critical element in long-term, sustainable engagement and effective governance.
DIALOG’s Corporate Social Responsibility (“CSR”) and community engagement activities are executed through MyKasih Foundation (“MyKasih”), a private non-profit which DIALOG supports. MyKasih’s mission of reaching out to families living in poverty and providing them with basic needs for food and educational assistance is aligned with DIALOG’s social obligation of caring for underprivileged communities and helping them to remain resilient. Working with strategic partners, MyKasih also implementsprogrammes to help beneficiaries achieve financial independence and food security in the long run.
At DIALOG, supply chain management remains paramount in achieving long-term success and resilience. With ethical and responsible business practices at the core of our supply chain management approach, the screening process begins with the evaluation of potential vendors and contractors through a qualification process and an invitation to bid.
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.
DIALOG adheres to the Malaysian Code on Corporate Governance (“the Code”) to ensure high standards of transparency, accountability and integrity in managing the Group’s business. Our commitment to upholding this culture of ethics, transparency and compliance is specifically expressed in DIALOG’s Code of Business Ethics, which all employees must adhere to without exception.
At DIALOG, ethical behaviour is our top priority, and we strictly enforce 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 on 1 June 2020, aligns with our goal of fostering a business environment free of bribery and corruption.
Risk management is integral to DIALOG’s operations, where processes are governed by the Risk Management policy and framework. Group Risk Management collaborates with business lines to continuously identify, evaluate and manage significant business risks.
Taxes help stimulate economic growth by enabling governments to address key needs such as healthcare, education and infrastructure, which contributes to a stable and thriving economy. As a responsible corporate citizen, DIALOG observes all applicable laws, rules and regulations to fulfil its tax compliance and reporting obligations in countries where it operates.
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:
