From our Shareholders
All companies are under pressure to make meaningful contributions to a more sustainable society, aiming for a more holistic economic impact; they are challenged to examine their impact on environmental and social resources.
We are ultimately responsible for the tone at the top which will cascade down to every level of the company and for overseeing the implementation of our company's long and short-term strategic plans; these play a crucial role in fostering an environment that will support the embedding of sustainability into the strategies of the company, for which we are the moral compass.
Our voice, attitude and decisions must signal a willingness to our company's management toward elevating social justice, creating business value and meeting regulatory & environmental responsibilities. We encourage and push our company to set sustainability objectives that are in line with what makes the most sense for our businesses.
The Denis family have embraced the journey toward sustainability as this was both a natural transition and adaptation of the Group's historical values to the world of today. In 2020, the Group will redefine its mission and core values; ESG should be a predominant part of this recasting.
For our 158-year family-owned enterprise, sustainability could ultimately be defined for the shareholders as the utmost desire to leave the most fitting family legacy:
- a flourishing Group our employees are proud to work for,
- reputable brands our customers are proud to shop for, and
- a sustainable company that we are proud to own and to pass on to future generations.
The 5th generation of the descendants of Etienne Denis are indeed, very proud to sign-off this third ESG report and second two year master plan. We take this opportunity to thank each and every employee and partner for their tremendous efforts and support; in working together with us to make this sustainable journey possible, they motivate us to go much further.
ESG Committee Chairman
Director of Denis Group Holding SA,
Board of Directors
Chairman of Denis Group Holding SA,
Board of Directors
From our CEOs
As we approach the end of our 2-year master plan, we are proud of the results achieved over the period. Most importantly, we remain extremely ambitious regarding the future ESG orientation of our company.
Our attitude towards ESG is intended to be compassionate and committed, albeit rational and applicable within our company.
Our very first commitment was to engage our shareholders and top management so as to position our ESG ambitions at the core of our company strategy. Over the period, our ESG Steering Committee could monitor our company's progress through frequent reviews and readjust our policies accordingly. Investment decisions, both industrial and operational, were systematically made and aligned to our ESG objectives.
Our second commitment was to achieve a number of ESG objectives set in our preliminary ESG report in 2016:
- Since then, we managed to reduce our overall carbon footprint from energy usage further than the 15% target set initially.
- We finalized the commissioning of our phase-1 solar energy roofing system in our Malaysian factories so that 26% of our overall electricity consumption is from renewable resources.
- Within our organization, there was much progress in implementing safety procedures internally and monitoring these processes. Our people's safety remains our priority.
- We designed and implemented an educational program internally to ensure that our ESG ambition is understood and valued within the company.
- As a result of these initiatives, all our manufacturing sites are ISO 14001 certified while our first three operational offices are "Green Building" certified.
That being said, we must bear in mind that ESG is all about the very long term. There is still a lot to be done.
As a company committed to protecting the environment, we wish to play our part in accelerating the transition from a linear to a circular economy in packaging, hence our approach towards Singapore Packaging Agreement and Australia Packaging Covenant.
As a company committed to providing food & health, it is critical to efficiently manage water usage & recycling. We shall also expand our efforts in overall waste management.
As a company committed to the highest governance and ethical standards, we wish to emphasize awareness and best practice internally to fight against corruption.
Our approach towards sustainability started in 2011 when we decide to rethink our fundamentals about manufacturing and marketing from our stakeholders' perspective.
It is our duty, towards our community, our employees and our shareholders, to continue this exciting journey at all company levels.
Let us take the opportunity in this message to express our appreciation to Denis Asia Pacific employees for their continuous support.
CEO of Denis Group Holding SA
Ting Seng Hee
CEO of Denis Group Holding SA
It is significant that in this, our third year of ESG reporting, our company won two awards. This is perceived as highly motivating by all our staff.
ACES Top Green Company in Asia
The Asia Corporate Excellence & Sustainability Awards (ACES) recognizes successful companies and individuals in Asia across two main domain: leadership and corporate social responsibility.
The award is bestowed upon companies that run their business operations yielding minimal negative impact on the environment, community, and society. The winning companies undertake environmentally friendly activities in all facets of the organization to ensure that its processes, products, and production activities adequately address current environmental concerns while maintaining a profit.
Earning the Award of Top Green Company in Asia was, for us, a great recognition of our efforts. All our employees are proud, having participated in this achievement, and to see their hard work rewarded as a consequence. This award is a tribute to the significant campaigns carried out to protect our environment and demonstrate compassion for our community.
SPA Merit Award
Introduced in 2007, the Singapore Packaging Agreement (SPA) is a joint initiative by the government, industry and non-government to manage packaging waste, which constitutes about one-third of domestic waste disposed of by weight. The SPA aims to encourage businesses to review their packaging designs and practices to see if they can reduce their use of packaging resources, and adopt more sustainable practices in packaging waste management.
This year has been designated as Singapore's Year Towards Zero Waste. This is done with the clear intent to raise awareness of how we can better conserve precious resources and build a strong culture of reducing, reusing and recycling waste.
In July 2019, we gained recognition by SPA (Singapore Packaging Agreement) for our efforts in reducing, reusing and recycling packaging waste. We won a Merit Award to mark our achievements in reducing the quantity of material used for transportation packaging.
We have reduced packaging materials for our cartons, including Ayam Brand™ canned sardines, mackerel and peas.
We seek also to drive many other initiatives in terms of packaging reduction. Some of them could be tiny but altogether they add up to significant volumes over time. For instance, we replaced the used of strapping bands made of polyethylene terephthalate (PET) with lighter biaxially-oriented polypropylene (BOPP) tape, used to secure carton boxes filled with goods for delivery. We also further reduced width of the tape from 48mm to 36mm.
Reducing packaging remains a permanent focus of our engineers.
United Nations Global Compact
Denis Asia Pacific Pte Ltd has been a member of U.N.G.C, Network Singapore since January 1st 2016 before which, the Denis Group already had a 153 year history of strong established values.
A reliable company's value system and a principled approach to doing business.
Corporate sustainability starts with a company's value system and a principled approach to doing business. This means operating in ways that, as a minimum, meet fundamental responsibilities in the areas of human rights, labour, the environment and anti-corruption. Responsible businesses enact the same values and principles wherever they have a presence, and know that good practices in one area do not offset harm in another. By incorporating the Ten Principles of the UN Global Compact into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term sustainable development and success.
Denis Asia Pacific Pte Ltd has therefore pledged to incorporate the 10 Principles of U.N.G.C. in its company governance and to live by these.
They are divided into four main topics:
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Principle 10 will benefit from a special focus in 2020 reinforced by the tone at the top.
Denis Asia Pacific has also pledged to publish a yearly ESG report to openly monitor the company's progress.
The scope of the U.N. Global Impact, Network Singapore membership: The scope is inclusive of (1) Denis Asia Pacific Pte Ltd, (20) all companies in which Denis Asia Pacific Ltd is in a position of control by having a majority of shares and (2) SFI Supply Management Pte Ltd (a sister holding company of Denis Asia Pacific Pte Ltd.) and its subsidiaries.
SFI works closely and uniquely for Denis Asia Pacific Pte Ltd, therefore the Denis Asia Pacific shareholders decided that SFI and the companies controlled by this holding should be itegrated into the sustainability journey and form part of the ESG report.
In this ESG report, "DAP" or "the company" should stand for both Denis Asia Pacific Pte Ltd and SFI Supply Management Ptd Ltd holding as defined on the above scope.
The list of companies is published on "Our Companies".
The group had a long history and strong, established values before joining United Nation Global Compact, Singapore Chapter. DAP is also a medium sized company albeit with international coverage, and limited capability in terms of management resources which could be devoted to sustainability.
It was therefore sensible and logical to adopt a problem-solving strategy, which consists of identifying the company's weaknesses with reference to the 10 Principles and to work on ad hoc solution in order to keep what is good, to correct what is found to be wrong and to amend what could be improved.
The company created an ESG committee. The committee defined projects or pledges. The pledges decided by the ESG committee come with key indicators that are monitored and presented in the ESG report.
The 8 Pledges
Our 8 pledges, unveiled in 2017 for our first 2 year ESG action plans, demonstrate how ESG performance is deeply embedded in our strategic and operating model. Our pragmatic approach, coupled with defined targets, collaborative work, clear responsibilities, regular reviews and deadlines has proven to be highly efficient. It is now tome to share our results in meeting these objectives, divided into 4 categories:
(1) Buildings and facilities belonging to DAP have to achieve Green Mark certification (or its equivalent according to the country) by 2030.
Outcomes: refer to chapter "Certification"
We are in line with this objective and our planning, with 3 additional buildings certified during this period.
(2) The production facilities belonging to DAP have to implement a plan to:
- significantly reduce their energy consumption, especially from fossil fuels
- significantly increase the share of renewable sources of energy in their energy consumption
- significantly reduce waste.
Outcomes on Energy Saving.
We have successfully implemented our Energy Saving plan comprising several investments detailed in the Energy Savings chapter.
Outcomes on GHG Emissions reductions: refer to chapter "GHG Emissions". Calculated at constant activity (tCO2 emitted per ton of finished product), our GHG emissions from energy usage have dropped by 15% in Malaysia, 28% in Vietnam and 20% in our offices.
Outcomes on renewable energy.
We have transitioned to 26% of electricity from renewable resources with our new Solar System in Taiping.
Outcomes on waste reduction: refer to scorecard and the details of our waste management in the chapter "Resources".
We have reduced our total quantity of waste generated, down 11% compared to our first report.
(3) All DAP suppliers should, within a reasonable time-frame, sign and comply with our supplier code of conduct, in line with the Ten Principles of United Nation Global Compact.
Outcomes: refer to chapter "Supply Chain".
Most of our suppliers have signed our code of conduct. Two categories of companies are reluctant to sign it: banks and palm oil suppliers.
(4) The supply chain should propose and work towards solutions to the sustainability issues highlighted by the ESG committee. The two main challenges identified for the supply chain are palm oil supply and tuna supply.
Outcomes on Tuna Supply: refer to chapter "Supply Chain".
We can, today, guarantee that we are not working with endangered species and that 100% of our supply of skipjack and yellowfin was sourced from healthy biomass.
Outcomes on Palm Oil Supply: refer to chapter "Supply Chain".
Versus our two year plan, we achieved 99.75% of sustainability and we aim to reach 100% in 2020.
(5) DAP wishes to be in advance of food safety regulations and inspire consumer confidence by being pro-active in implementing the latest recommendations.
Outcomes on Mercury: refer to "Our Consumers".
By testing 100% of our production batches we are able to guarantee the absence of mercury contamination in Ayam Brand canned tuna.
Outcomes on Radioactivity: refer to chapter "Radioactivity".
With systemic control, we can guarantee the absence of any risk of radioactivity in fish from the Pacific.
Outcomes on BPA in Packaging: refer to chapter "Bisphenol A".
We have introduced BPA-FREE linings in the majority of canned products under our brands.
(6) DAP will start monitoring its companies' human resources as a whole across the two holdings with a set of various key indicators, such as gender equality per category, training and development, monitoring of medical leave and days lost due to injury.
Monitoring of these indicators is now taking place; refer to the section "Our People" for more details. Such monitoring allow us to implement action plans for the safety and well-being of our staff.
(7) DAP will increase the role of MyKenzen in supervising training within the company in employee well-being and safety at work. The two holding companies will encourage local initiatives relevant to this.
The initiatives through the MyKenzen program are addressed on "MyKenzen" section.
(8) DAP is implementing a zero-tolerance policy for any case of corruption, fraud, harassment, malpractice and unlawful discrimination. This policy is complemented with a whistle-blower procedure.
There have been no such reported cases in the period in question. Refer to chapter "Governance and Ethics" of this report for more details on our Governance policy.
The 10 New Pledges
We strive to continuously improve our processes and set ambitious new targets. The new report includes the continuation of existing long-term programs together with new objectives for the second 2 year action plan until June 2021. We now have 10 pledges:
(1) We will continue working towards our pledge to certify all our buildings and facilities under the Green Building scheme before 2030.
(2) We will calculate our greenhouse gas emissions in line with international standards.
(3) We will seek to implement new projects to cut our greenhouse gas emissions from energy usage by 300 tCO2e.
(4) We will make significant efforts in waste management, including implementing an inspection scheme of our waste collectors.
(5) We will continue our efforts in paper reduction and aim to reduce our current usage by 10%.
(6) We will keep improving the sustainability of our supply chain.
(7) We will increase the number of products with BPA-Free linings and we will publish the list of the few remaining products for which we have to technical solution in terms of the replacement of BPA coatings.
(8) We will continue to set and improve KPIs for our employees, with a specific focus on gender equity.
(9) We will enhance our actions to improve the safety and well-being of our employees, especially with the start of the retrofitting of Taiping factories.
(10) We will focus on awareness and best practice amongst all employees in the fight against corruption.
About this report
this is our third sustainability report. The report covers our governance, social and environmental performance for the yearly period July 2018 - June 2019.
This is also a biennial master report, which concludes our two year action plan, as defined in 2017. It serves also as an introduction to our new two year ESG action plan. Next year, we will publish an intermediary report to monitor our progress.
An ESG committee at the highest level of management
We have constituted an Environment, Social and Governance committee (ESG committee) at the highest level of management. The committee is chaired by M. Daniel Denis, a family shareholder and member of the Denis Group board of directors, demonstrating the high level of commitment to the durability and sustainability of the business model by the family owning the group companies since 1862. The two group CEOs, Mr Fabien Reyjal and Mr Ting Seng Hee, are the vice-chairmen of the committee.
The Group Marketing Director, Mr Hervé Simon, acts as the coordinator and the leader of the ESG committee.
The ESG committee also includes the Supply Chain Director, Mr Jean-Philippe Lamy, the Industrial Operations Director, Mr Jimmy Yeung, the Quality Assurance Director, Mr Stéphane Stanislas, the R&D Director, Mrs Natalie Yap, the Chief Financial Officer, Mr Chong Teck Pin, the Environment, Health and Safety Manager, Mr Pablo Merino and the Human Resources Manager, Mrs Chan Kum Lin.
The ESG committee, assisted when needed by external experts, review and determines the context, scope, boundary and prioritization of the ESG projects.
The ESG committee meets every two months. It decides on the ESG projects, it designates the senior director or manager in charge of each project, sets the key indicators and monitors progress.
ESG projects prioritization is not done with a matrix system or a ranking. Denis Asia Pacific Pte Ltd is a medium sized company with a collaborative work ethic and a flat, rather than hierarchical organizational structure. The management is therefore really down-to-earth with a deep understanding of key priorities.
These priorities are defined and listed in a tow year action plan. Each specific action is under the responsibility of the relevant director and member of the ESG committee, with responsibility for implementation within the timeframe.
This organization proved itself to be particularly efficient for the first ESG two year action plan.
Accuracy of data
We rely on our internal procedures to verify the accuracy of data and information provided in this report.
Although we are not a public listed company, we have engaged with the ESG initiative, based on selected, relevant and measurable standards. Any information in our ESG reports is shared with accurate, relevant data in full transparency and honesty.
If a project fails to reach its key indicator at the time of the ESG report, provisional data will be provided with an explanation of the difficulties encountered in the completion of the task.
Availability of the report
The ESG report is to be published within 6 months of the closing of data collection. The ESG report is available to anybody without limitation.
For sustainability reasons, the ESG report is available only in digital format. Its main source (consultation and download) is a pdf format or an epub on "https://issuu.com/denisbrands". The report is also available on "www.denisgroup.net" and on most of Ayam Brand websites.
For a wider reach, DAP is working on a future dedicated website "www.DenisGroupESG.com" using Google neural translation which will allow the report to be made available in 14 languages. As the automatic translation may come with errors, it is important to note that legally, the only valid version is the English text.
For inclusion purpose, the English version will also be available in the near future in audio format.
Feedback & contact
Denis Asia Pacific Pte Ltd
Denis Group Building
21 Tagore Lane
Key Indicators Scorecard
|Employee turnover rate||29%||24%||29%|
|Employee turnover rate(permanent staff)¹||15%||10%||10%|
|Average training hours per employee||14,5||12,2||14,3|
|Equivalent medical leave days||10274||11129||11878|
|Equivalent injury days(inside our premises)||537||697||687|
|Equivalent injury days(outside our premises)²||722||787||933|
|GHG total emissions(tCO2e)||11915||12514||13765|
|Recycled materials in packaging(mt)||1362||969||1432|
|Percentage of recycled materials in packaging||25%||19%||23%|
|Natural gas consumption(mmBtu)||67905||70355||68250|
|Normal Waste generation(mt)||3667||2862||3269|
|Hazardous Waste generation(kg)||1055||1720||1136|
|Recycled & Reused Waste(mt)||3340||2474||2800|
|Percentage of Recycled & Reused Waste||91%||86%||86%|
² transportation on the way to or from work
About Denis Asia Pacific
Denis Group has a fascinating 158 year history. The vision, mission, solid values and business principles provide the foundations for this exceptional longevity. The descendants of Etienne Denis are still at the helm of the group's businesses.
Denis Group gets its strength and stability from three different sectors, in which the group is able to achieve and maintain a high level of professionalism, paired with a historically innovative spirit: food & beverages, health sciences, and consumer goods distribution.
This ESG report covers the food & beverages activity which started in 1956 when Denis Group took over the A. Clouet company in Malaya with its main food business: Ayam Brand. Ayam Brand, founded in 1892 in Singapore by Mr. Alfred Clouet, became an international brand distributed in more than 30 markets on three continents and is ranked today 320th consumer brand in Asia. (Asia's Top 1000 Brands 2019, Nielsen). In the food trademarks category, the survey ranked us 65th, with a noticeable predominance in Malaysia (3rd food brand) and Singapore (4th top food brand).
To cater for the expansion of its food business, Denis Group invested heavily in production and logistics. The main production & logistics site is in Taiping, Perak, in West Malaysia. It employs more than 1000 staff. The Mafipro site consists of three factories and produces mainly canned fish and baked beans. The Guinea Foods factory cans fish and sauces. Guinea Foods consists of two factories to meet the growing demand for sauces. Taiping is also an important logistics base for the group with a large ambient warehouse and several cold storage facilities.
Alce Nero and Denis Group formed a joint venture in 2004 to promote and distribute Alce Nero, a leading Italian organic food brand, all over Asia.
In 2016, Denis Group opened a new manufacturing site near to Ho Chi Minh in Vietnam, with the aim of distributing its food brands in the Greater Mekong region.
Our vision of the future
Denis Group is well positioned to benefit from the key trends that are expected to shape our future markets, namely:
- continued urbanization combined with greater connectivity that requires convenient, safe, healthy and cross-cultural food.
- pursuit of investment in the understanding of better health through good nutrition, clean food, and better hygiene.
- the pleasure of food discoveries and of creating moments of reunion and surprise for family and friends centred around food; we see this as a key preoccupation across the world.
We see many opportunities for the Group in the coming years:
- the opportunity to make our brands truly global by reaching more consumers worldwide.
- the opportunity to develop new & innovative segments such as ready-to-eat meals, frozen foods, foods on-the-go and foodservice solutions that better address the needs of new consumers.
- the opportunity to promote the cultivation, manufacturing and use of organic & natural foods in the region.
- the new opportunities that will be brought about by the next big wave of massive investment in infrastructure in ASEAN (Association of Southeast Asian Nations)in the next 10 years.
- and the opportunity to grow a sustainable food supply model with a concern for waste, nutrition and stability and with substantial social impact in society as we envisage it tomorrow.
About Denis Asia Pacific
ASIA PACIFIC HOLDING
DENIS ASIA PACIFIC PTE LTD
21 Tagore Lane, Singapore 787479
Green Building certified
Tel: +65 6459 8133
Fax: +65 6459 2867
Jl. Radin Inten II, No. 8,
Duren Sawit Jakarta 13440
Tel: +62 21 8690 0868
Fax: +62 21 8690 1336
Companies controlled by this holding:
A. Clouet (Australia) Pty. Ltd.
11 Melissa Place, Kings Park,
Tel: +61 2 8814 8086
Fax: +61 2 9678 9508
A. Clouet & Co (KL) Sdn. Bhd.
19, Periaran Sabak Bernam,
Section 26, 40400 Shah Alam,
Selangor Darul Ehsan
Green Building certified
Tel: +60 3 5191 1069
Fax: +60 3 5191 1988
Mafipro Sdn. Bhd.
Guinea Foods Sdn. Bhd.
Jalan Lintasan Perusahaan,
Kamunting 3, Kamunting Raya,
34600 Taiping, Perak.
Clouet Trading Pte. Ltd.
21 Tagore Lane, Singapore 787479
Tel: +65 6459 8133
Fax: +65 6459 2867
Denis G.M. Co Ltd
Lot 17-4, Road Number 2B,
Protrade International Tech Park,
An Tay, Ben Cat, Binh Duong,
Tel: +84 274 357 9798
Fax: +84 274 357 9799
The Commercial Company of Siam Ltd.
1168/3-4, 2nd Floor, Lumpini Tower,
Rama IV Road, Bangkok, 10120 Thailand.
Tel: +66 2 285 6858
Fax: +66 2 285 6830
SUPPLY CHAIN HOLDING
SFI SUPPLY MANAGEMENT PTD LTD
21 Tagore Lane,
Green Building certified
Tel: +65 6459 8133
Fax: +65 6459 2867
Companies controlled by this holding:
SFI Food Sdn. Bhd.
PT 32730, Jalan Logam 5,
Kawasan Perusahaan Kamunting Raya,
34600 Taiping, Perak.
Tel: +60 5891 8704
Fax: +60 5891 3919
SFI Alimentos de Mexico,
S.A. de C.V Tenochtitlan 570, 19 Puesta del Sol,
LA Paz, 23090 BCS
Governance and Ethics
DAP has an excellent reputation for governance and ethics, built with consistency and determination over its long business history. The company intends to remain committed to the highest ethical and professional standards and also to integrate new governance and ethics requirements as the world moves towards more transparency, complexity and globalization.
In 2020, DAP management will focus on the regional harmonization of best practice, better awareness of gender equity and the fight against corruption.
DAP, including its subsidiaries and related companies, it committed to the highest corporate governance practices.
The Board of Directors of Denis Asia Pacific Pte Ltd consists of ten members, including the Chairman, with overall responsibility for the approval of strategic plans, budgets, investments and financial results and for the support of the Group CEOs responsible for bottom-line operations. As part of its commitment to best practice, the Company pays specific attention to the composition of the Board and guidance thereof, the role and responsibility of the Directors, access to information and conduct of shareholders meetings.
Internally, an Audit Committee is in place, reporting to the Board of Directors, with responsibility to review audit plans with internal & external auditors, to consolidate audited accounts, to perform internal audits and to investigate any matters related to the Company's internal control system.
Three directors of Denis Asia Pacific Pte Ltd make up the Board of Directors of SFI Supply Management. This board adheres to the same principles of governance and audit protocols.
(1) Code of ethics
DAP has a company code of ethics, which is published in the employee handbook and/or on the intranet for the companies that have it.
(2) Zero tolerance policy for severe wrongdoings
DAP has a zero tolerance policy for severe wrongdoings, therefore employees and outside parties, such as suppliers, customers, contractors and other stakeholders, are requested to report any issue to the management. They may use a website, 'DG-report.net', where their anonymity will be protected. The zero tolerance text together with the whistle-blowers link are printed on the first page of text of the employee handbook. This may be used to report any concern or complaint regarding:
- (1) corruption
- (2) Failure to comply with laws and regulations
- (3) Harassment
- (4) Discrimination on the basis of gender, cultural background or origin, and disabilities
- (5) Theft
- (6) Forgery
- (7) Misappropriation of funds and classified documents
- (8) Abuse and misrepresentation of power and authority
This procedure is meant to protect genuine whistle-blowers from any unfair treatment as a result of their report. Denis Group encourages employees and outside parties to put their names to their allegations whenever possible.
To be fair to any employee designated by an anonymous report, such reports will be examined by the Ethics Committee with a view to discarding frivolous claims and allegations without evidence. For serious and documented reports, it is the Ethic Committee's duty to investigate and, even, to report to police if required by the gravity of the offence.
The Ethic Committee
The Ethics Committee has three main roles:
(1) to set ethics rules that apply to all companies under DAP, except if the local law regulates differently.
(2) to approve local company ethics & rules of behaviour.
(3) to deliberate on reports of severe wrongdoings and to suggest what steps should be taken by the CEOs, including disciplinary sanctions or dismissal, if needed. Should the CEOs choose not to follow the Ethics Committee's recommendations, they must inform the company shareholders with their reasoning.
The Ethics Committee should be made up of representative(s) of the shareholders, of the CEOs, and representative(s) of the senior management. It should include at least one external member, chosen for his/her knowledge of the company and his/her moral standing.
As of today, the Ethics Committee's external member is Mrs. Ai Ming Lee, Senior Partner at Dentons-Rodyk, Singapore Judge of Peace, Member of Singapore Copyright Tribunal, independent Director in the Boards of Agri-Veterinary Board of Singapore (AVA), Keppel Land Ltd, K-Reit Ltd and HTL Holdings Ltd.
The Ethics Committee met on December 10th, 2019 to review the previous ESG period.
- There were no reports through 'DG-report.net' This well-functioning website is regularly checked by IT. The Ethics Committee decided that staff should be better informed of its existence.
- The Ethics Committee reviews the situation on gender equity as described in the gender equality chart. Despite a good overall ration, the committee commented on the low percentage of females in top management. This needs to be improved; the committee is, however, confident for the future given the recruitment of several potential young female managers ands because there is no discrimination for top level jobs. It is difficult to have exact gender equality in top management but what really matters is the equality of opportunity, the consideration necessary for females at certain times of their careers, such as specific time management during pregnancy or when children are young, coupled with equality in salary with males at the same job level.
- The Ethics Committee is aware that HR best practice is not at the same level in all DAP companies, therefore DAP is willing to invest in a skilled HR regional manager with the ambition to implement the highest equivalent HR standards throughout the whole Group.
- The Ethics Committee, on the requests of shareholders and CEOs, decided, for the next ESG action plan, to focus specifically on the fight against corruption. The plan will specify different obligations to be fulfilled according to the risk of various categories of employees being exposed to corruption:
- Factory and warehouse workers will have yearly training with public oral pledges.
- Office employees will have to validate yearly e-learning to get a mandatory e-certificate.
- Staff potentially at risk (sales, procurement, marketing,....) will have training sessions every two to three years with specialists (anti-corruption bureau, consultant or lawyers) and should sign a written pledge.
Corruption will mean suspension of work during the investigation and if proven, automatic dismissal and reporting to the relevant public authorities.
The zero tolerance tone at the top should be understood by all company employees.
DAP's HR strategy is to attract, motivate, train and retain quality employees in order to build together with them a profitable, sustainable business model.
Creating value for employees is an important part of our business vision. DAP believes that our employees play the prime role of driving the company and determining its success.
We are committed to building an organization with a respectful and honest environment for our employees, whilst creating value for customers and stakeholders.
Diversity and gender equality have always been core values of the Group. Our employees come from varied cultural and ethnic backgrounds. We have committed to creating a fair and inclusive workplace, where all employees are given equal opportunities for learning and development. Hiring and rewards are strictly based on merit, loyalty and confidence.
At the end of June 2019, DAP employed 1,626 people, a stable figure versus end June 2018 (1,645 people). 93% of employment contracts are full time. Les than 7% are temporary contracts. There are only 3 part time contracts for the whole holding.
Workers, located mostly on the site of Taiping, Malaysia and Bet Cat Town, Vietnam, account for 77% of our people, while executives and management represent 5% respectively.
Women and various age groups have a fair representation in the organization. Women account for 70% of all our employees. DAP is confident that their share in management (45%) will improve in the coming years with the increasing percentage of females graduating from universities in Asia-Pacific.
Employee development is strategic for DAP. Our commitment is to create an environment where employees can develop their full potential. Continuous upgrading of employee skills and knowledge is necessary to innovate, to work safely and to serve customers better. Providing regular training opportunities is also important for employee motivation. At end June 2019, DAP has provided 23,224 hours of training for the year. This represents an average of 14.3 hours per member of staff. The following chart shows an equal distribution of training hours within all categories of employees.
At end June 2018, the yearly number of MC leaves was 11,877.5 days: an average of 7.3 days per employee. The average number of days varies per category. Being food manufacturers, the production sites have strict rules to protect production from any contamination. Since 2019, the Taiping production and logistic site, the group's main employer, has its own in-house clinic to provide better medical protection of all its employees.
For the period from July 2018 until June 2019, we had 1,620 injury days, comprising 687 injury days inside our premises and 933 injury days caused by commuting road accidents.
While the figure is stable for the injuries inside our premises, there is a 19% increase in road accident cases. Our influence on road safety is limited but we try to keep our workers aware of the risks of driving. The number of road accidents in Malaysia is high and behavioural change among motorcyclists and youth is a challenge. Next year we will launch a safety program to raise awareness among our workers.
Numerous action have been launched this year to improve the safety conditions in our factories. The floor of our preparation rooms has been changes to prevent slipping. We managed to find a suitable floor coating ensuring both food hygiene and safety for our workers, which was a challenge as factory floors need to be cleaned continuously and therefore remain wet most of the time.
Our offices are now equipped with CO2 meters that warn us when the air quality is not optimal. We were surprised by the high values of CO2 measurements in meeting rooms. This was due to high numbers of people in confined places during hours of work. We took corrective actions and installed air ventilation in the problematic offices and rooms. The wellbeing of our staff has improved and with it their productivity.
Proximity and reactivity are important as far as first aid is concerned. This year we decided to build an in-house clinic for our three main manufacturing and logistics sites. This new service allows us to respond quickly to medical needs or injuries; professionals are able to make correct diagnoses and, when needed, direct any case to a medical specialist without delay.
A major improvement this year was the implementation of an Environment, Health and Safety Department (EHS) in our organization. Even if the resources already existed for these individual areas, grouping and organizing them into a new department allowed us to formalize our practice. The objective is also to reach higher levels of competency in this field and to improve our results. This new team has been reinforced with the recruitment of one additional Safety and Health Executive and one Safety Assistant in each of our two main factories.
Empower our workers to be our eyes in the field
iAuditor is an inspection app used to empower our workers in the field. Combined with the web platform, iAuditor provides visibility and insights to help raise safety and quality standards across our organization. Our team can collect consistent data, standardise operations, send reports, identify failed areas and get problems solved.
To fully monitor our health & safety actions, we are assisted by online inspection software, name iAuditor. This helps us build our audit checklist, conduct inspections using tablets live in the field, and to automatically generate reports and statistics. Team efficiency is thus significantly increased, allowing more time to be spent out in the field.
BizSafe 3 Singapore
In May 2019, both Denis Asia Pacific (DAP) and Clouet Trading (a wholly owned subsidiary of DAP) were awarded BizSafe Level 3 certification by the Singapore Workplace Safety and Health Council.
The BizSafe 3 Certificate is awarded to organisations that show top level management commitment and participation in creating a safe and healthy workspace for its employees. This involves setting a corporate policy on Workplace Safety and Health and implementing programmes to continually improve safety and health practices in its workplaces.
The BizSafe 3 certificate is widely recognised by businesses and government agencies as indicative a good organisation to conduct business with. In fact, we had already been asked by some potential customers to declare our BizSafe certification status as a consideration in doing business with them.
At both Denis Asia Pacific and Clouet Trading offices, we have formed a Workplace Safety and Health (WSH) team that comprises members from different departments. The team is headed by a senior management staff member and meets regularly to ensure all safety and health matters are closely monitor and adhered to.
- All the WSH team members have attended the required training and are fully certified to perform their roles competently.
- The WSH team conducted regular risk assessments of our worksites and operational processes and implemented safe-work procedures to eliminate or minimize the risks in our workplace.
- Regular updates and communication on safety and health matters were posted on notice boards to raise awareness amongst our staff and ensure good practices are adhered to.
- A series of 10 e-learning videos covering various safety and health issues & good practices were produced and circulated to our staff to ensure everyone practices and embraces a safe working environment.
- Fire drills and evacuation exercises have been conducted to prepare our staff in case of emergencies.
- In addition, we have an in-house team of certified first aiders to respond quickly to any injuries or illness in our workplaces before medical assistance arrives.
Employee safety and health is of utmost importance in Denis Group and this will always remain a key priority in our organisational culture and work practices.
MyKenzen is a nutrition service consulting company developed by Denis group in Singapore helping individuals, corporate entities, government boards, food service and manufacturing industries and the public to promote overall health & well-being. MyKenzen extends its effort into promoting good diet awareness and regular physical activities for the employees of the companies under DAP.
A few examples of these initiatives: In Singapore, employees receive a piece of fresh fruit weekly, together with an information e-note about the benefit of this specific fruit. Staff members are also encouraged to participate in walks in the parks around the office to get more physical exercise. In Thailand, employees have a monthly vegetarian lunch together sponsored by the company, under an initiative name "Green Monday".
We seek to offer our consumers tremendous benefits that go beyond tightening world regulations and consumers' normal expectations.
As a food manufacturer and marketer, we aim to produce and distribute products which are as close to 100% natural as possible. We use additives only when it is not possible to do without.
Our promise is that our flagship trademark Ayam Brand™ should be synonymous with "Clean labels", which means:
- With a short ingredient list
- Trans fat-Free
In 2018, we reinforced the above requirements with a new policy, name "Green Labels".
Around 400 additives are legally authorized to be used for food. We have reduced the number of additives down to around one hundred selecting only those additives with a pristine reputation.
With this initiative, we believe that we are paving the way for mass market food which is more natural, safer and healthier.
Canned tuna is one of the main lines of our product ranges. We enjoy significant market share in Malaysia, Singapore and Brunei.
The presence of mercury in pelagic fish is one of the main concerns of tuna consumers.
We consider it our duty to inform consumers and to provide them with complete peace of mind when they consume tuna under our trademarks. Therefore, since July 2016, we have sent each and every batch of our tuna production for mercury analysis by an independent laboratory.
From July 2016 to September 2019, we had 2,782 batches of canned tuna tested:
- Mercury was not detected or was not quantifiable in 99.8% of the batches. (The limit of detection is 0.04 ppm and quantification 0.13 ppm).
- 0.2% of the batches had a mercury level ranging from 0.13 ppm to 0.17 ppm.
Stringent regulations worldwide fix a limit of 0.5 ppm of ethyl mercury. As can be expected, our consumers can keep enjoying our canned tuna without any worries about mercury.
We are aware that radioactivity of fish could be an issue for some of our consumers. We consider it our duty to reassure consumers when needed.
To address this concern, we test samples from every single batch of sardines and mackerel. 3,807 batches have been tested since we started in 2016. Up to now, all tests have shown non-quantifiable levels of radiation.
This therefore means that all analysis results have consistency been negative and that consumers can be sure that the fish produced under our trademarks is monitored and has not been exposed to radioactive pollution.
BPA stands for bisphenol A. BPA is an industrial chemical that has been used to make certain plastics and resins since the 1960s. BPA is found in polycarbonate plastics and epoxy resins. Polycarbonate plastics are often used in containers that store food and beverages.
From 2011, Bisphenol A was prohibited in the composition of plastic for babies' bottles due to concerns that the compound could act as a hormone disrupter.
In 2019, France went a step further and BPA is now fully prohibited in all packaging coming in contact with food, including cans.
As we seek to follow stringent global food regulations, DAP has, since 2017 (under pledge number 5), been working on the implementation of BPA-FREE lining in all its cans. It is long, tedious and demanding work with real time ageing tests, to make sure that the new lining is better and safer than the existing coating.
We have been able to introduce BPA-FREE linings in cans for all sardines and mackerel in tomato sauce as well as our range of coconut products. Most of our tuna cans are produced today with BPA-FREE linings and we plan to introduce this for other products during 2020.
In 2020, a very limited handful of products may remain with coating containing BPA as their real time ageing test was not conclusive. The R&D team will continue working on these products and their list will be published in the next report to achieve full transparency.
DAP companies have always been close to the community. Our companies have participated for many years in several social and charitable activities with local partners. There are multiple examples of this.
Community Care campaign
To eat is a basic human need. As a food manufacturer and marketer, our obvious duty is to provide vulnerable people in our direct proximity with healthy and quality food.
Now in its 11th year, the Ayam Brand Community Care Campaign has reached approximately 20,000 people from 482 charitable organizations, providing them with 1,404,000 healthy and convenient meals. The focus is to help people with handicaps, poor children or seniors.
Healthy Kids Food Festival 2018: In order to empower kids to make better food choices, the Healthy Kids Food Festival was held. The festival included engaging and interactive activities to help identify the main food groups, understand portion sizes and make informed food choices on how food can affect bodies in a positive manner.
The festival travelled across Malaysia to visit charity homes. A total of 4 charity homes per state as well as 6 charity homes in Kuala Lumpur & Selangor participated in this festival.
The festival's engaging workshop session included:
- A quiz game where kids could learn to identify and differentiate between healthy and unhealthy food choices.
- A crossword on the benefits of Omega 3 and DHA (docosahexaenoic acid).
- A "Healthy Plate" booth where kids worked together to determine their food choices from pictures of different food groups on a balanced diet plate called "Quater Quater Half" or in Bahasa "Suku Suku Separuh", a concept launched by the Ministry of Health in 2017.
- A DIY booth to make their own layered nasi lemak with Ayam Brand Chilli Tuna Light.
The final Healthy Kids Food Festival event was held in Sunway Putra Mall, Kuala Lumpur, on the 22nd November 2018 to close the Ayam Brand Community Care Campaign 2019.
At the event, Ayam Brand Chairman, Yang Mulia Tunku Dato' Mu'tamir Bin Tunku Tan Sri Mohamed and Ayam Brand Chief Executive Officer Mr Ting Seng Heng launched the Ayam Brand E-charity portal.
Ayam Brand E-charity portal
The Ayam Brand E-charity portal has been designed to facilitate food donation in Malaysia as the first market to embark on this initiative with clear benefits:
- price with 15% discount. Donations are in cartons.
- free delivery to charity homes within 10 working days.
- full utilisation of donations (no management, no financial and no handling/transportation fees).
- quantities calculated based on real needs as listed by the charity homes.
The portal is live and the public can choose how many products they wish to contribute to charity homes registered with the Department of Social Welfare Malaysia and the Registrar of Societies.
Only registered, valid charity homes can benefit from this program.
Our staff is highly motivated to participate frequently in the social and charitable life of its community. Rather than list all initiatives, we have selected a few examples, representative of this commitment:
- Our staff in Australia volunteered as lunch servers at the Exodus Foundation in May 2019. They helped to prepare and dish out 250 free meals for the disadvantaged and homeless within 2 hours. The Exodus Foundation provides hundreds of nutritious free meals for disadvantages and homeless Australian every day of the year.
- In many countries, our staff participate in charity runs and other sports activities to raise funds for charities and highlight the importance of a healthy lifestyle.
- Staff at our factories and offices frequently participate in blood donation sessions.
Some of these activities are shown in the pictures below.
DAP in Action
We aim to significantly reduce our reliance on fossil energy and we seek to develop solar energy as an efficient, cleaner and cheaper energy source to partly power our factories.
2018 was the year of solar power for our activities. We install a sizeable solar system on our main industrial & logistics site in Taiping, Malaysia. It is, in our opinion, one of the main achievements of our first ESG two year action plan.
Our business model for this project is a PPA (Power Purchase Agreement), signed in August 2017. This leasing contract was a great opportunity for us to have cheaper energy costs from the start without up-front investment. 20 years of fixed prices will allow us to improve our production cost control. At the end of the 20-year lease, we will own the system and enjoy free electricity for the Taiping site.
Thanks to the commitment and the will of all employees in all company, we powered the first solar systems installed on Taiping site roofs in July 2018, just one year after the signature of the PPA. Prior to the installation, we had to replace some of our oldest roofs by a new lightweight roofing equipment with a "Klip-Lok" system: no puncturing or screwing was needing during the installation. The solar rails were also install with the same clamping system. No screws on the roof means no leakage and rust problems in the future. The system is intended to last at least 30 years so this precise planning and engineering was necessary before starting the solar project. To maximise the benefits and the saving, the new roof were designed with skylights to use fewer electrical lights and to benefits all the more from the sun's power.
The installation took approximately 6 months. In total, it comprises 4,065 panels distributed on seven facilities' rooftops, with an overall system size of 1,341kWp.
In July 2019, the solar system celebrated its first birthday with a smooth operation record. In only one year, we have saved more than 1,200,000 kg of CO2e in emission, the equivalent of the carbon eliminated by 60,000 trees per year. This also represents a saving of 10% of our current carbon footprint from energy usage and accounted for two third of our direct carbon footprint reduction.
The outcomes are significant: 26% of our electricity usage on our main industrial and logistics site comes from a renewable resource. Even more astonishing, in the middle of the day, our facilities operate with 100% electricity from solar power, as shown in the record of electricity consumption from the grid.
For the second two year action plan, our teams are studying Phase 2, with new installation on some other sites or upgrade of the current system.
Watch out the video of our Solar System in this link
Solar System Taiping
Our company takes climate change seriously, therefore we are taking action to lower our carbon footprint. Our priority is to optimise our energy usage and solar panels are only one element of a bigger plan. By combining several technologies and exploring multi-angle strategies, we aim to reduce our electricity consumption and the quantity of fossil fuel used by our production.
Energy Monitoring Information System (EMIS)
To fulfil our ambitions, we need first to monitor, understand and analyse our energy consumption. Since 2017, our main production site in Malaysia has been equipped with electricity meters (all wireless, connected to the cloud), coupled to a specific EMIS software package identical to software used by Airbus and Roll Royce factories. This gives us live, detailed visualisation of our site's power consumption.
Identifying our main energy load users has allowed us to prioritize our projects and focus our efforts and investments on the equipment that matters. Below are some examples of the reporting we can extract from our EMIS software. The software generates alarm analyses, triggering notifications when a piece of equipment's consumption is out of an optimal defined range.
The software allows us to generate reports measuring KPI (Key Performance Indicator) of energy efficiency such as:
- Pie-chart views of our compressors' consumption, to ensure a good balance between our compressors' usage.
- Weekly visualisation of the consumption of our cold-room storage and its equipment.
- Surface heat map of our WWTP (Waste Water Treatment Plant) to identify higher consumption in a week.
New dewatering system for our WWTP
The Taiping site WWTP (Waste Water Treatment Plant) had been using centrifugal decanter for the sludge dewatering process since 2011 and this contributed up to 5% of the total electricity consumption. EMIS identified it as a high energy consumer. To reduce our carbon footprint, we replaced this equipment by a Multi-Disc Screw Press (MDS: This new dewatering technology utilizes a central screw and a slowly oscillating multi-disk filter to gradually increase pressure on flocculated sludge to produce dry sludge cake).
In term of energy consumption, slow-moving parts are much more efficient versus centrifuge technology. Therefore, the new process was implemented in August 2019. Reports generated by EMIS demonstrate that MDS is able to save 74% of polymer consumption and 99% of electricity consumption compared to the previous dewatering process. This is equivalent to 48/tCO2e saves per year. The quality of the sludge produced is consistent and it is also easier to control the quantity of sludge produced.
Our manufacturing process requires both heating and cooling. Fish must be kept at low temperatures to maintain its quality. Further in the process, steam is needed to cook the main ingredients and sterilise the cans.
A heat pump is a device that transfers heat energy from a source of heat to what is called a thermal reservoir. Heat pumps move thermal energy in the opposite direction of spontaneous heat transfer, by absorbing heat from a cold space and releasing it to a warmer one.
This duality is perfectly represented by one old but innovative thermodynamic concept: the refrigeration cycle. In our usual fish factory process, we were using energy to produce cooling and energy to produce steam. Our team conducted an energy audit of our manufacturing process and found a major opportunity: our largest fish preparation room is located just beside our boiler. Taking advantage of this situation, we installed a heat pump in between these 2 rooms, to supply cool air for the fish preparation area and hot water for our boiler feed water tank.
This innovative smart solution is expected to reduce the boiler's natural gas consumption by 4%. Today, this new equipment has been implemented in only one of our factories for evaluation before being deployed in other locations.
Since our first ESG Report, published in 2017, we have been monitoring the quantity of greenhouse gas emitted from our direct energy usage: electricity, natural gas and coal.
Current GHG emissions
We are continuously working on implementing new energy saving projects whilst increasing our production capacity. We were generating 11,915 tC02 in 2017. At first glance, comparing this figure with today's 13,765 tC02 could look like in increase in our emissions. However, this needs to be correlated with our production output.
The following chart depicts our GHG emissions intensity: the quantity of C02e emitted per ton of finished product manufactured.
This ratio drop demonstrates the improvements made in our factories to make our process more energy efficient.
In Malaysia Manufacturing (MM), we reduced, as planned, by 15%, the energy needed to product 1 ton of finished goods.
This drastic reduction is mostly attributable to the benefits of our new Solar System (refer chapter Solar Project) and also to improved monitoring of energy in our utilities.
In Vietnam (MV), the quantity of C02e emitted is higher than in Malaysia due to the usage of coal in the factory's boiler. Therefore more effort is needed. The ratio of C02 emitted per ton for finished goods has been improved by 28% over 2 years.
These results demonstrate that our process and energy consumption are under control.
For our offices, we cannot correlate the GHG emissions to any "output" factor. The size of our office and the staff count are stable over the period. But we still managed to reduce our electricity consumption. A far-reaching awareness campaign has been deployed to benefit all our employees. Indicators have been implemented and close monitoring takes place every month.
The implementation of the Green Buildings requirements (refer to Green Buildings) has also contributed to a drastic reduction in our emissions. We are proud to say that our offices have reduced their emissions by 20% over the 2 years of our first action plan.
Our pledge in our first ESG Master Report was to reduce our greenhouse gas emissions by 15% at constant activity within the two years of the action plan.
With a reduction of 15% in Malaysia Manufacturing, 28% in Vietnamese Manufacturing and 20% in our offices, we are proud to have reached and exceed our pledge on GHG reduction.
A wider scope tomorrow
Notwithstanding this achievement, we need to continue our efforts in this direction.
Our pledge for the next 2 year period (next Master Report publication) will be to cut our emissions from our energy usage by 300 tC02e.
We are aware that our current GHG emissions calculation involved only a portion of our total emissions. For our first 2 year action plan, we took the decision to monitor and improve only direct production of GHG as this was the most understandable indicator to implement and the one we could influence the most.
However, we now wish to improve our current emissions evaluation by widening the scope. Therefore, for our next ESG Master Report we will work on calculation our GHG emissions following international official standards. We hope that this new study will give us more opportunities to reduce our impact on GHG emissions and climate change.
The materiality of our ESG efforts is also measured via environmental certification.
ISO 14000 is a family of environmental management standards. They help organizations minimize their operations' negative impact on the environment, complying with applicable environmental laws, regulations and requirements and continually improving their performance with respect to environmental safeguards.
To ensure proper control of our environmental impact, and to avoid any pollution to the environment, all our production plants are now certified under ISO 14001. The Environmental Management System has been in place in our 2 main factories since 2013. Over the last 2 years, this system has been deployed in our Malaysian logistics centre (certified in 2018), and in 2019 in our manufacturing site in Vietnam.
Our teams have made a great effort to implement this system in a short period of time with a momentum of one new site certified a year. It provides assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved.
Buildings have extensive direct and indirect impacts on the environment. During their construction, occupancy, renovation, repurposing, and demoliion, buildings use energy, water, and raw materials, generate waste, and emit potentially harmful atmospheric emissions. These facts have prompted the creation of green building standards, certification, and rating systems aimed at mitigating the impact of buildings on the natural environment through sustainable design.
In 2016, DAP pledged to have all buildings and facilities under its ownership certified as Green Building by 2030. The 12-year time span will allow us to spread the investment and also adapt the renovation cycles of these facilities.
BCA Green Mark (Singapore) and GreenRE (Malaysia) are 2 similar benchmarking schemes, which incorporate internationally recognized best practices in environmental design and performance in order to:
- Facilitate a reduction in energy, water and material resource usage
- Reduce potential environmental impact
- Improve indoor environmental quality for better health and well-being
- Provide clearer direction for continual improvement.
Our facility in Selangor, Malaysia, was certified in 2018. This building, comprising 3 floors of offices and a warehouse, is our biggest facility in South-East Asia, apart from our production sites. The certification process took almost 1 year including retrofitting the air-conditioning with inverters and a COP (Coefficent of Performance) above 3.2. These new units use a refrigerant gas (R32) which is more protective of the environment, because a low GWP (Global Warming Potential) and no ODP (Ozone Depletion Potential). We also replaced some of our lighting with LED and ensured the illuminance levels were within the recommended range for better working conditions for the staff. Waste segregation, an awareness campaign, monitoring of consumption and a paper-reduction program were some additional actions implemented to achieve this certificcation.
In 2019, we undertook the challenge to certify a much bigger building: our logistics centre in Taiping. The total footprint is around 17,600 m2, comprising two warehouses, two cold-rooms, two office and one laboratory.
It was a difficult project due to certification being a new concept in Malaysia. The local frame of reference to certify industrial buildings was only released in 2018. One year after its publication, we are proud to say that our two buildings have attained Silver GreenRE certification
Our two buildings are the first in Malaysia to be certified under the Existing Industrial Facilities (EIND v1.0) referential.
The timeline below shows our progress towards our objective to certify all our buildings by 2030.
We are on schedule versus our timeline and we will continue this momentum with the aim of certifying one building per year.
Resources are limited, precious, fragile and need to be managed. We aim to use them with caution, to recycle, to reuse, to substitute ... all this in order to protect our environment and to conserve our natural resources.
In the yearly period 2018/2019, DAP consumed 405,560 cubic meters of water. The increasing figure follows a 3 year reduction. Water remains properly monitored, but the total consumption figure was a consequence of a sharp increase in production, especially in our Vietnamese facility.
Water consumption (m3)
We continue our efforts to save water, while improving water-use efficiency. All our factories are equipped with Waste Water Treatment Plants (WWTP) to ensure that the discharged water is fully treated before releasing it back to the environment. A team of 13 employees is employed every day in operating the WWTPs. Our effluent always complies with the national rejection standards. Our standards are often considered much better than the minima required by the official ones.
In the yearly period 2018/2019, our manufacturing sites generated 3,270 tons of waste. 99.97% of this waste is classified as non-hazardous, like packaging, rejected products, sludge and metal.
86% of this non-hazardous waste has a second life by being reused, recycled or valorised.
Normal Waste generation (mt)
Hazardous waste (0.3% of the 3,270 tons) comprises oil, batteries, solvents, paints, chemical ... Any waste that could be harmful to the environment. This requires special monitoring, storage and treatment. This waste is managed by competent and trained staff and treated by authorized contractors.
Waste management is a critical aspect of our environmental responsibilities. We are putting more efforts into the control of our waste, and we identified this area as one where we impact significantly on the environment. Waste management will therefore be one of the main topics for our second 2 year action plan.
To bring our contractors along with us on this journey, and to have better control of the whole life-cycle of our waste, we will implement a systematic audit of our waste treatment facilities in 2020. Only selected contractors, who can demonstrate effective control of their environmental impact, will be allowed to work with us.
We are also working on appointing a consultancy firm in this field, to study potential opportunities and determine the future strategy for waste valorisation.
In the yearly period 2018/2019, DAP consumed 8,993 kg of paper. This represents a reduction of 19% compared to the previous period. In our offices, where most of the paper is used, consumption has been reduced by 29%.
These outstanding cuts in our consumption are the result of several environmental awareness campaigns carried out in recent years. Automatic double-sided printing, lighter paper, monitoring of individual consumption, digitalisation of some work-flows... all these actions led us to achieve and exceed the objective pledged in our first 2 year action plan: a double-digit reduction in usage of office paper.
The Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) are organizations that certify forest products, like paper and wood, as being sourced in an environmentally friendly, socially responsible and economically viable manner.
Nevertheless, controlling our consumption is not enough. Paper is still necessary in our activities, sometimes due to outdated legal requirements. We therefore need to ensure that the paper we use comes from sustainable resources. We pledged 2 years ago to use 100% of paper from sustainable supplies (FSC or PEFC).
This milestone is now achieved: all facilities under DAP now comply with this policy.
Proud of these good achievements in terms of responsible paper management, we want to pursue our efforts, and we have set an ambitious objective to further reduce our paper consumption by 10% before our next ESG Master Report (2021).
Our primary packaging includes metal cans and lids, labels and glass jars. To protect our products, the secondary packaging used is carton, that is made from 90% recycled paper. Our tertiary packaging includes OPP tape (Oriented Poly Propylene), pallets, strapping band and stretch film. As an example, the pie-chart below shows the breakdown per type of packaging for the Singapore market:
Breakdown of Packaging materials for Singapore
DAP has been a signatory of the Singapore Packaging Agreement (SPA) since 2018 and won a Merit Award in 2019 for its efforts made in reducing the quality of packaging material used in its products (refer to SPA Merit Award).
Similarly, we are a signatory of the Australian Packaging Covenant (APC). Our biggest packaging improvement in Australia was to move from paper labelled to lithographed cans for two major products: coconut and satay sauce. The coconut represents more than 40% of our sales volume and this initiative will save around 11.06 tons of paper. Furthermore, we removed the nesting in all our curry paste products, eliminating a significant amount of unnecessary packaging.
We are also part of a focus group with NEA (National Energy Agency of Singapore) to share our experience and provide our expertise to formulate forthcoming regulations in Singapore on packaging monitoring and reduction.
Another internal study has brought to light our position compared to our competitors.
The purpose of this study was to benchmark the weight of our cans and lids. It was no surprise that our materials proved heavier than most of our competitors. Indeed, being a premium brand does not allow us to downgrade our product quality. Food safety is our utmost priority, and quality of packaging plays a significant role, especially in a challenging tropical climate. However, even considering that none of our competitor brands offer such quality, we are not the heaviest. Indeed, as shown in the table below, we are just slightly above the median.
|Competitors||AYAM BRAND||%Difference vs|
for Tall cans
for Jitney cans
The above study also reveals that we might have more margin for improvement with our lids, which are the heaviest of the samples compared.
Our objective is not to become the lightest, but to use only the quantity of material needed to continue delivery to our consumers, one of the best product offerings in term of quality and protection of the environment, coupled with the highest standards of food safety.
Green Procurement policy
We aim to make our use of resources more sustainable and this starts with our procurement practices. If we source good materials at the outset, the whole circle will be virtuous: from procurement to usage and disposal. In 2020, our CEOs therefore implemented our first Group Green Procurement Policy. All companies under DAP are requested to follow these requirements, broadly inspired by the Green Buildings standards. For example, we will now only purchase air-conditioners with a COP above 3.2; any new lighting equipment must be LED; we encourage purchases from local producers when possible etc.
All these new rules contribute to the foundation of a more sustainable business in the immediate future.
GREEN PROCUREMENT POLICY(version October 2019)
We are aware of our responsibilities to future generations and must strictly adhere to exemplary environmental practices. To support the sustainable growth of our group we are committed to adopting procurement policies that are environmentally responsible.
all companies under DAP will encouraged to purchase environmentally friendly products whenever practicable:
- New air-conditioning systems must have a Coefficient of Performance (COP) not lower than 3.2.
- Refrigerants for new air-conditioning systems must have an Ozone Depletion Potential (ODP) of 0 and a Global Warming Potential as low as possible.
- New lighting equipment must be LED or have an energy efficiency equivalent.
- Office paper for daily usage must be certified by FSC and/or PEFC and must have a grammage equal to or below 70 gsm.
- New indoor paints must have low VOC content (Volatile Organic Compounds).
- New water fittings should have a water efficiency label.
- Energy efficiency should be prioritised when purchasing new IT equipment.
- For any office supply purchased in significant quantity, the ammount of packaging material should be considered and evaluated before purchase.
- Fuel efficiency should be prioritised when purchasing new vehicles.
- Cleaning products for office should be certified as "green" by recognized authority.
- Utensils (plate, cutleries, glass ...) for exhibitions and office usage should be reusable or eco-friendly if disposable.
- New wooden office furniture should be FSC and/or PEFC certification.
- Products should be purchased from local area producers when possible.
- In the case of major building retrofit, the "EHS" department has to be consulted to ensure compliance with Green Building certification.
Ting Seng Hee
Chief Executive Officer
Chief Executive Officer
Conscious of the important role that we have to play in the conversation of our resources, we have decided to also focus on this subject for the next action plan, with significant improvements expected. To address this objective, we created a new position of Project Analyst earlier this year. This key person for the ESG will define our strategy and follow up with the packaging improvement projects. With many years of experience in procurement, she will help us develop a close technical partnership with our packaging suppliers and involve them on this journey.
Supply Chain Sustainability
We believe that, for a Fast-Moving Consumer Goods business like ours, the sustainability of the supply chain is key to the durability of the business model and to the company's ethics.
As an established centennial company, DAP benefits from a heritage of solid values. But, with an internationally renowned brand portfolio, DAP has also to check that its suppliers adhere in turn to its ethics and that they do not participate in unsuitable and/or illegal activities or ventures that could taint the reputation of the company and of its brands.
Since 2017, all DAP suppliers should be adhering to its "Code of Conduct" which can be downloaded from this link: "Code of Conduct".
As far as DAP's direct supply chain is concerned, our Ethics Committee identified two issues, sensitive to consumers, NGOs and public opinion: Sustainability of tuna supplies and palm oil. These two topics have therefore been put top of the list of our priorities.
Taiping Manufacturing Master Plan
A few years ago we initiated a study of our manufacturing facilities in Taiping. The wish, as per the values of the Group, is to continuously innovate and challenge our practices.
Discussions are ongoing to define the vision of the factories for the next 10 years. This reflection has led to the creation of a Working Group charged with establishing a Taiping Manufacturing Master Plan.
We are working with international consultants and architects to build this plan which will lead on to the retrofit of our factories. The objectives are multiple, with improvements in our manufacturing processes and more efficient usage of the utilities. Our first priority is the safety of our workers and their wellness.
This plan is currently in development and we will be able to give more details on the expected improvement in our next ESG Report.
Sustainability of our tuna supply
Even though DAP's tuna business represents less than 0.1% of the yearly world tuna catch, the company is committed to being a brand that stands for quality and acts with responsibility by taking a strong stand for sustainable fish sourcing and compliant fishing and manufacturing practices.
We do not have a direct relationship with tuna fishing vessels as we work with fish canning factories, which produce our recipes to our specifications, and under our quality control. Our area of influence is in the purchasing specifications we provide to the canned tuna manufacturers.
The use of stringent tuna purchasing specifications that require sustainable fish sourcing is our way of putting pressure on the tuna fishing industry to make progress not only on sustainable tuna fishing but also on fair and compliant labour practices.
Manufacturers who have been selected to produce for DAP must accept our sustainability specifications.
Our sustainability specifications cover three main categories:
(1) The biomass
DAP only uses tuna species which are not endangered and from biomass that is healthy (not overfished)
Data on the biomass situation is assessed by Regional Fisheries Management Organizations (RFMO), international intergovernmental organizations dedicated to the sustainable management of fishery resources in international waters. We follow the Indian Ocean Tuna Commission (IOTC/iotc.org) and the Western and Central Pacific Fisheries Commission (WCPFC/www.wcpfc.int) in particular. Most of their data is published by ISSF (International Seafood Sustainability Foundation HTTP://ISS-FOUNDATION.ORG/).
DAP therefore only sources three species of tuna:
- Skipjact tuna (KATSUWONUS PELAMIS)
Most of our canned tuna is produced using skipjact tuna (49% of our tuna volumes). The skipjack tuna used by our brands is caught in the Pacific Ocean, in areas assessed by WCPFC as not overfished, but they could come from any other fishing area where skipjact tuna resources are healthy (not overfished) as assessed by RFMOs.
In the yearly period 2018/2019, 100% of the skipjack tuna was sourced in line with this sustainability specification. This achievement is in line with the previous period 2017/2018.
- Yellowfin tuna (THUNNUS ALBACARES)
DAP uses yellowfin tuna (35% of our tuna volumes) for canned tuna in oil or in water. In some parts of the world, yellowfin tuna is overfished. Our requirement is that yellowfin tuna for our brands is fished from the Western Pacific, which is assessed as not overfished by the WCPFC. In the yearly period 2018/2019, 100% of the yellowifn tuna was sourced in line with tihs sustainability specification. This represents an improvement of 25% versus the previous period. Still, we have to face the fact that we may in the near future, experience several months without any supply from the Western Pacific. The only solution to further improve this sustainability ration on yellowfin was to reduce the importance of this species in our production.
- Tonggol (THUNNUS TONGGOL)
We managed in about 16% of our supplies, to replace yellowfin by a lesser known species, Tonggol. In terms of sustainability balance, such as species presents both a benefit and a drawback. On the plus side, Tonggol is a coastal fish caught by local small-scale fishermen. It contributes to the local economy and it is not listed as an endangered species of tuna. On the down side, these local species of tuna are not used by the major industries as they are less straightforward to collect and to process, therefore there is no official monitoring for their biomass.
(2) The code of conduct
As explained above, DAP works with suppliers who share the same code of conduct for their factories and who, in turn, make it mandatory for their own suppliers.
- Full compliance of labour and social conditions with national laws and international treaties (preventing, amongst other issues, illegal labour and human rights abuses like slavery or child labour).
- No corruption.
- No tuna supply from illegal, unregulated, and unreported (IUU) fishing.
- No tuna supply from fishing vessels not certified as Dolphin Friendly or those practising shark finning or fishing endangered species.
(3) The recommendations
We play our role in encouraging our suppliers to improve catching methods for skipjack and yellowfin tuna in order to limit catch (accidental catch of other species).
Most of our tuna is caught by purse seine fishing vessels and small percentage from pole and line. We do not accept other methods of catching (like long lines) because of an excessive bycatch rate.
As of today, our suppliers are unable to distinguish between the percentage of catch on "FAD" or not as they are mixed in the fishing vessels. We are, however, in constant dialogue with our suppliers who are committed to collecting data and sharing technical information. This should allow us a better understanding of the situation within a short time frame in order to improve our purchasing specifications.
As a company involved in canned fish, we have, on numerous occasions taken the opportunity to express our opinion that marine reserves should be enlarged and that well-managed quotas for fish caught based on scientific data is an effective tool to manage and to protect fish resources for future generations.
Sustainable Palm Oil
(1) DAP palm oil policy
DAP has, since 2011, implemented a policy of 'responsible use' of palm oil, by replacing it whenever technically possible, by an alternative vegetable oil with a healthier nutrient profile, like olive oil or soya bean oil.
Today, palm oil is presented in a very limited number of DAP products and our volume of sustainable refined palm oil purchasing is low as 95 MT per year for Ayam Brand™, and 152 MT for sustainable crude palm oil for the other brands. Other products derived from palm fruits (like palm fruit puree) account for an additional 545 tons. There is no scheme planned for palm fruit puree as it is a marginal food item so we achieve its sustainability by claiming green credits.
Despite our extremely low use of palm oil (247 MT total), DAP has nevertheless established and adhered to two stringent standards:
- The palm oil used in any DAP products should be sustainable.
Our factories are RSPO certified and they only source sustainable certified palm oil of West Malaysian origin.
- DAP product labels should be clear and explicit
When a DAP product contain palm oil, it has to be clearly stated on the ingredient list.
(2) South-East Asia Alliance for Sustainable Palm Oil
DAP is proud to be among the founding members of the South-East Asia Alliance for Sustainable Palm oil (SASPO), an initiative of WWF Singapore.
The vision of the Alliance is to make CSPO the norm to stop the "Haze" as well as deforestation and animal habitat loss in the region. It aims to provide a platform for companies to come on a sustainable journey towards producing, trading and using certified sustainable palm oil.
DAP palm oil policy proves that it is possible for medium sized companies to develop and implement sustainable and responsible policies. Recent years' events have demonstrated that it is our duty to participate in all possible efforts to reduce and eventually eliminate "Haze" from our lives. Whatever their size, all companies should adopt this necessary environmental goal.
Thanks to its palm oil policy, implemented since 2011, DAP is 99.75% certified as sustainable for its palm oil ingredient and palm fruit products. We will reach 100% in 2020.
- In its 2017 palm oil scorecard report for Malaysia/Singapore local companies, WWF gave DAP the best score of 10 out of 12 with this comment:
"Leading the way"
DENIS ASIA PACIFIC (AYAM BRAND)
WWF commends Denis Asia Pacific for showing strong leadership in regard to the procurement of sustainable palm oil within the Southeast Asia region. Denis Asia Pacific has demonstrated transparency and commitment to purchase 100 per cent CSPO, is an active member in RSPO, a founding member of SASPO and publicly discloses the total volume of palm oil volumes used for each of their brands.
While it has yet to achieve 100% physical CSPO, Denis Asia Pacific is leading the way for other Singapore-based companies to follow."
- Since 2018, Mr Hervé Simon, coordinator of DAP's ESG committee, has been the elected Chairman of SASPO.
- In June 2018, Mr Daniel Denis, DAP's ESG committee Chairman, represented SASPO at the Paris Roundtable summit on Sustainable Palm Oil.
- End 2019, DAP received the score of 15.5 out of 22 in the international WWF Palm Oil Buyers Scorecard. It is the highest scoring company out of the 16 Asian companies assessed and sits in the top quater out of 173 companies assessed globally.
ESG is a matter that should be shared and endorsed by all employees in a company whatever their occupation or position. Since the implementation of our United Nations Global Compact membership and our ESG policy, we have been organising events to raise the environmental awareness of all our employees.
We started by organising several Environmental Weeks on various topics, such as oil pollution, water saving, waste management, air-conditioning system and water treatment systems. Once the foundations were established on common objectives and a shared and understood vocabulary, we then organised more festive events like hikes during Earth Day, with activities linked with the topic for 2019: to protect the future of humanity. Over 150 people participate in this event held in Taiping.
Similarly, to gain a better understanding of environmental issues, we arranged a vegetarian lunch for our workers in Taiping. Following the Green Monday movement, we will provide them with information on nutrition and the benefits of including more plants into their diet.
We also created a "Green Office" competition to be held between our office staff. Sharing good practice was the main objective and the participation and commitment of the staff was above our expectations. Our office in Thailand took the lead in this campaign with numerous actions undertaken. They were the first to implement Green Monday activities (refer to above) before the idea spread to the other companies of the Group. They used eco-cutlery and a stainless steel straw was given to each member of staff. They reduced their paper consumption by 22% by arranging a competition amongst the staff. They changed their faucet spray heads to more efficient units. They collected plastic for donation to organisations for recycling. They reviewed their aircon settings for temperature and operating time. They also used eco-friendly packaging for food fairs.
Other offices played their part in the competition, for example in Malaysia where we implemented a Waste Management system, replaced the aircon with more efficient units, made our own eco-enzyme from food waste, and used less paper with the e-leave system.
The following pictures show the effort put in by our office teams to raise awareness in a friendly, responsible and collaborative way.
DAP in Action Environmental Initiatives
Completing the work detailed in this report required determination and commitment. Aside from the numerous achievements, our utmost pride is accompanied by an element of surprise; each and every member of staff has enthusiastically embraced the ESG objectives and extra work that has resulted from them, understanding their importance over and above company work and duties.
In 2020, our Group seeks to redefine its mission and its core values. ESG will serve as the foundation on which this mission and values will be built.
This new report and its fair share of new pledges are the embodiment of our commitment to a more sustainable business.
We will share our progress in December 2020 through an intermediate ESG Report, follow by, December 2021, the outcomes of our 2 year ESG master plan with our third ESG Master Report.