Kuala Lumpur: Malaysia Steel Works (KL) Bhd, Masteel, received a prestigious Platinum rating by RAM Sustainability Sdn Bhd for outstanding sustainability performance and leadership in ESG practices. The Platinum rating is the highest sustainability rating developed by RAM Sustainability, building on the Bronze, Silver, and Gold categories currently available. This recognition represents the company’s commitment to sustainable practices in a carbon-intensive industry such as steel manufacturing.
Exemplary ESG Leadership
The news, as contained in a Bursa Malaysia filing, pointed out Masteel’s leadership in the sustainability of the Malaysian steel industry. According to RAM Sustainability’s group chief executive officer and executive director, Chris Lee Wai Kit, this Platinum rating shows Masteel’s exceptional efforts to integrate ESG principles in its operations, especially concerning carbon emissions management.
“This is an excellent recognition of the group’s excellent corporate and sustainability governance, especially in carbon emissions management. We believe Masteel is well positioned to navigate the impact of future carbon taxes in Malaysia,” said Lee.
As a large player in the hard-to-abate industry, Masteel has been proactive in developing a structured carbon emissions management strategy in order to achieve net-zero emissions before 2050. All of these moves are in line with global decarbonization trends and strengthen Masteel’s position as a leader in sustainable steel manufacturing.
Carbon Reduction Strategic Investments
The group is interested in achieving reductions in carbon footprint but through more efficient operations facilitated by more advanced technologies and environmentally friendly processes, said Datuk Sri Tai Hean Leng, executive vice chairman of Masteel.
“We believe that sustainability is not only a cost that needs to be managed, but also a source of power for innovation and growth. Our sustainable practices create value for our stakeholders over time and help lead the way toward a more sustainable future,” he said.
Masteel stated that “Tai’s statement is entirely true; it describes the level to which we have always believed, and one compliant with different regulations, sustainability has really got to be an integral part of the business group’s strategy”.
“Innovation will be our greatest ESG best practice in the taking of growth opportunities across the global steel market that continues increasingly to characterise more and more of demand as requiring low carbon solutions”.
Masteel’s excellence in corporate governance, keeping to the Malaysia Code on Corporate Governance, was supplemented with its carbon management plan. Its governance framework embraces a gender-diverse and independent board of directors-also having more than 30% female board representation.
Masteel has also aligned reduction targets for greenhouse gas emissions with its management performance indicators to ensure that top-level responsibility is not immunized. In this manner, Masteel has outpaced its peers in terms of reporting sustainability. It is a very proactive approach that allows for greater transparency and improvement.
Human Rights and Workplace Safety Initiatives
The company not only goes by environmental activities but also encompasses strong policies of social governance that try to protect the rights of employees and the local people. Masteel has followed a strong human rights policy regarding compliance with international rules, which prevents child and enforced labor, among others. It is available in different languages so that one can understand and know the details very clearly from it.
Masteel also focuses heavily on workplace safety. The company, through its Occupational Health and Safety Policy, has set a five-year target for improvement in safety measures and a reduction in workplace accidents. Such efforts have seen a great 84% awareness of stakeholders regarding Masteel’s human rights and safety initiatives.
Readied for Future Carbon Regulation
As Malaysia prepares to have a carbon tax, Masteel is well set and prepared to manage its emission under any future regulatory pressure. In fact, its quest for reducing its carbon footprint puts it in the run to achieve both national and global sustainability goals, which positions it as an industry leader in ESG performance.
According to Chris Lee Wai Kit from RAM Sustainability, in his statement said, “Masteel’s carbon management strategy demonstrated the company’s readiness against expected tightening of environmental regulations.
Masteel is ready for the imposition of future carbon tax in Malaysia
-Masteel is well set up to handle the knock-on effect of the imposed carbon tax in Malaysia according to Chris Lee Wai Kit from RAM Sustainability-
Platinum rating by RAM Sustainability reflects the efforts that Masteel has undertaken to integrate profitability with the environment and the society, and Masteel stands out to guide the steel industry toward a future of sustainability by setting aggressive targets on ESG and implanting it in the fabric of operations.
As Datuk Sri Tai Hean Leng said, sustainability is beyond compliance; it is a growth and innovation engine. With effective governance, commitment to human rights, and pro-actively managing carbon, Masteel is setting its course for the good of stakeholders, the community, and the environment.
The Platinum rating underscores Masteel’s sustainability commitment and reinforces the role of the company as a leader in driving ESG standards within Malaysia’s steel sector. This recognition reflects Masteel’s ongoing journey toward long-term value creation while reducing its environmental footprint and promoting an inclusive, safe, and responsible working environment.