Category: Sustainability

Governance

Innovation and Technology

Our Approach

Innovation and technology play a vital role in securing QL’s long-term success, enabling us to stay relevant and adaptable in an ever-evolving market landscape. We remain committed to advancing our digital capabilities and fostering innovation, while maintaining strong safeguards for cybersecurity and data privacy to ensure responsible and secure progress.

Automation for Scalable and Sustainable Operations

To support sustainable growth, QL continues to invest in automation across our operations. We have deployed an Enterprise Resource Planning system to replace our legacy system, marking a key step toward improving cross-functional integration, enhancing data visibility, and streamlining business processes.

In our ILF business pillar, the adoption of Easy Farm System (EFS) and Laboratory Information Management System (LIMS) has been implemented in stages. EFS has enhanced our farm management by enabling real-time tracking of livestock, feed, and environmental factors, which has resulted in more efficient planning and resources utilisation. Similarly, LIMS has improved the accuracy, traceability, and speed of laboratory processes, thereby reinforcing product quality assurance and regulatory compliance.

Advancing Operational Efficiency with Data and Technology

As data and technology increasingly shape the future of operations, QL is accelerating our focus on operational efficiency through initiatives like IoT integration, Big Data and AI, and advanced analytics with Power BI.

Our ILF business pillar is enhancing data-driven decision-making through IoT in our monitoring systems, which enable continuous and automated data collection. Using sensors, these systems track key conditions such as temperature, humidity, and air quality. The tracking assists in improving animal welfare, enabling early disease detection, and increasing operational efficiency through real-time insights.

Big Data and AI have transformed our retail operations by uncovering deeper insights into customer preferences and behaviours. These insights drive cross-functional improvements, particularly in product development and supply chain management. In product development, AI-powered analytics guide product development by identifying what core customers value, helping us innovate and refine SKUs to meet evolving consumer needs. In the supply chain, AI enables localised, demand-driven inventory decisions based on real-time sales data, thereby improving on-shelf availability, reducing waste, and enhancing customer experience.

Complementing this, QL utilises Power BI as a data analytics and visualisation platform to convert operational data into actionable insights. This empowers more strategic planning and responsive decision-making, while laying a robust digital foundation for future integration of advanced analytics across operations; and use AI to drive digital transformation journey.

Strengthening Cybersecurity to Safeguard Personal and Sensitive Data

Protecting personal and sensitive information is both a regulatory obligation and a core responsibility. In pursuit of this, QL has strengthened our cybersecurity posture through key measures that safeguard data, reduce risk, and promote a culture of security awareness.

To strengthen identity governance for high-risk accounts, QL has implemented privileged access management that enforces strict access controls and session monitoring for privileged accounts. This solution supports compliance with data protection regulations such as the Personal Data Protection Act.

QL has upgraded our email security for advanced protection against threats like phishing, malware, and data leaks. The upgrade ensures that emails are properly verified and come from trusted sources, while also helping prevent unauthorised changes. Additionally, our data loss prevention features help minimise the risk of accidental disclosures.

With the increasing use and reliance of digital technology, QL has taken proactive steps to mitigate risks from the start by continuously educating our employees on IT security awareness and incorporating cybersecurity training as part of our new employee onboarding programme. The objective of the training is for our employees to stay informed about new threats, foster a culture on how to secure and protect the company data from potential cyber threats.

FY2025 Highlights

Zero substantiated incidents

of data breach

View Our Innovation and Technology Section in the Integrated Annual Report

Explore Our Impact Stories

Rainwater Harvesting

As part of our ongoing commitment to water conservation, we continue to harvest rainwater for non-potable use, capturing runoff that

Renewable Energy

To further reduce our GHG emissions and reliance on fossil fuels, we continued to expand our renewable energy portfolio in

Supply Chain (Social)

Our Approach

Effectively managing ESG factors is critical to maintaining a sustainable and resilient supply chain. By integrating this principle, we not only support long-term business growth and value creation but also contribute positively to the environment and society. As such, QL is committed to implementing responsible supply chain practices that reduce environmental impact while promoting ethical and socially responsible supplier and procurement management.

Strengthening Social Accountability Across Our Supply Chain

In alignment with our Supply Chain Policy, we have reinforced our commitment to managing ESG risks across our supply chain by revising the Code of Business Ethics for Suppliers and Business Associates. The updated code provides clearer expectations for social accountability, including human rights standards, fair labour practices, and workplace safety and health. Suppliers are encouraged to identify, monitor, and
improve their social impact, prioritising the well-being and safety of their employees.

To ensure the code is effectively implemented, we introduced a self-assessment form designed to evaluate suppliers’ social practices. This initiative was first rolled out to a group of identified high-risk suppliers, of which 80.8% met the social requirements outlined in the code.

View Our Supply Chain (Social) Section in the Integrated Annual Report

Explore More Social Impact Stories

Rainwater Harvesting

As part of our ongoing commitment to water conservation, we continue to harvest rainwater for non-potable use, capturing runoff that would otherwise enter sewers and reducing our reliance on municipal water sources. In FY2025, QL Breeder Farms and QL Kitchen collected a total of 3,747.67 m3 of rainwater.

Tags Environmental Responsibility, Water Security

Renewable Energy

To further reduce our GHG emissions and reliance on fossil fuels, we continued to expand our renewable energy portfolio in FY2025. During the year, we installed an additional 1.6 MWp solar capacity at QL Foods Sdn. Bhd., 800 kWp solar capacity at QL Marine Products Sdn. Bhd. and 1 MWp solar capacity at QL Figo (Johor) Sdn. Bhd., increasing our total installed capacity to 16.13 MWp.

In FY2025, we consumed 891,801.53 GJ of energy from solar, biogas and biomass sources, which avoided 24,034.73 tonnes of CO2e emissions. Both our renewable energy consumption and GHG avoidance decreased compared to FY2024. The reduction was mainly due to lower biomass generated energy stemming from lower production volumes of fishmeal and palm oil.

Rainwater Harvesting

As part of our ongoing commitment to water conservation, we continue to harvest rainwater for non-potable use, capturing runoff that

Renewable Energy

To further reduce our GHG emissions and reliance on fossil fuels, we continued to expand our renewable energy portfolio in

Tags Climate Change, Environmental Responsibility

Cooking competition during the C Our Future Launching Event

Creating Positive Change and Building Stronger Communities and Environment

In FY2025, QL allocated RM1,515,780 to community initiatives, positively impacting around 16,839 beneficiaries.

During the year, the company dedicated resources to community engagement and charitable contributions, with a focus on addressing social and environmental challenges.

Recognising employees as key contributors to community initiatives, the Company encourages employees’ active engagement, emphasising their essential role in driving positive impact for both communities and the environment.

MPM

Empowering Local Fishermen: A Win-Win Partnership

For over two decades, the Fishermen Financial Assistance Scheme (FFAS) has stood as a cornerstone flagship programme under our MPM business pillar. This initiative embodies QL’s core value of “Win-Win,” forging a mutually beneficial arrangement between the company and local fishermen.

Under FFAS, fishermen receive essential financial support, enabling them to upgrade or acquire new fishing equipment. This support enhances fishermen’s catch efficiency, increases earnings, and fosters skill development. In return, QL benefits from a steady and dependable supply of raw materials, ensuring ongoing support for our MPM operations.

Through this enduring collaboration, both parties engage in a robust exchange of knowledge and expertise, ultimately contributing to the advancement of the fishing industry. This strong, symbiotic relationship not only improves the welfare and livelihood of the fishermen but also reinforces our dedication to sustainable practices and community development.

In FY2025, QL allocated RM16.37 million in financial aid through the FFAS initiative, directly benefiting 777 fishermen. The company incurred an estimated net financing cost of RM443,191 in support of this programme.

ILF

Combating Child Stunting Among Preschool-Aged Children

Established in 2023, the C Our Future programme has become a vital flagship initiative within our ILF business pillar. QL’s ongoing collaboration with Ceva Animal Health reaffirms our commitment to addressing stunting among preschool-aged children, while also promoting nutritional education and awareness among their caregivers.

In FY2025, the initiative achieved a significant milestone by distributing 98,000 eggs to 505 pre-schoolers from low-income families and indigenous communities, a substantial increase from the previous financial year’s distribution of 25,200 eggs to 207 preschoolers. It also successful contributed to reducing the number of underweight and severe underweight by 46% among the measured children.

Additionally in July 2024, a high-impact health talk was organised as part of the ongoing C Our Future programme. The event,
attended by over 150 parents and children, focused on raising awareness of child stunting and underscored the critical role
of egg consumption in daily nutrition, complemented by engaging activities such as egg crafting. Eggs are a cost-effective, easily accessible, and versatile source of high-quality nutrition, making them an ideal food to integrate into diets, especially for children in low-income communities at risk of malnutrition and stunting. By incorporating eggs into daily diets, children receive the essential nutrients needed for healthy growth and development, reducing the risk of stunting and ensuring a strong foundation for their future well-being.

Building on the programme’s success since its inception, it is now being scaled up to support approximately 700 children across 25 kindergartens (TABIKA) over the course of a year. As part of the initiative, children under the age of 5 years will receive 1 egg a day for 5 days a week for consumption during their schooling time in the TABIKA.

Promoting Quality Education for Lifelong Learning

Over the years, QL has consistently upheld our dedication to advancing educational excellence within the communities we serve. By fostering enriched learning environments and supporting impactful initiatives in educational institutions, we aim to elevate the quality of education and empower future generations.

In FY2025, we expanded our support for UPM’s Faculty of Agriculture by sponsoring 1,500 layer hens for the newly established layer house. This contribution is aligned with the university’s objectives to advance teaching and learning in the production of laying hens, strengthen research and innovation capabilities, and enhance the overall quality of student education and hands-on training.

Ongoing efforts to promote quality education include building, upgrading educational facilities and supporting initiatives that enhance students’ well-being and learning experiences. Many business units are actively involved in a range of activities, such as participating in fundraising efforts, providing scholarships for deserving students, sponsoring awards for top achievers, and facilitating educational visits to our business units.

CVS

Supporting Local Communities Through Meaningful Employment

As part of our broader commitment to social responsibility, QL continued to invest in the communities where it operates by promoting local employment. In FY2025, 82.0% of all new hires, totalling 5,015 individuals were locals, with the CVS business pillar driving most of these hires.

Expanding Impact Through Our Food Redistribution Programme

Building on our ongoing efforts to reduce food waste and support vulnerable communities, our CVS business pillar has entered the second year of partnership with Kechara Soup Kitchen. This collaboration is part of our broader food salvage initiative aimed at redirecting surplus edible food to those in need, in alignment with the food waste hierarchy.

On 9 November 2025, in conjunction with World Food Day, we organised a food donation drive where QL Kitchen and QL Maxincome volunteers distributed food to several charity homes. This hands-on effort helped raise awareness while delivering immediate support to underserved communities.

Throughout FY2025, a total of 51,620 meals were distributed to underserved communities. This programme addressed food insecurity, prevented edible food from ending up in landfills, and contributed to both community wellbeing and resource conservation.

Tags Corporate Philanthrophy, Social Responsibility

Sustainability

Sustainability transcends beyond simply reducing consumption as it involves creating and delivering enduring value for QL, communities, and future generations, reflecting the essence of our company name, QL, an abbreviation for Quan Li. In generating sustainable value, we focus not only on reductions but also on optimizing value creation.

QL is committed to creating value for all stakeholders, including investors, employees, suppliers, customers, consumers, and communities. Building on this ethos, we embrace an integrated approach to sustainability, encompassing Environmental, Social, and Governance (ESG) dimensions. ESG principles are integrated into QL’s business strategy planning and operational practices across the Group. Our sustainability governance structure ensures that our sustainability approach is rooted in strategic risk and opportunity management, guided by principles and industry best practices.

Our Three Pillars of Sustainability

2025 Sustainability Report

Explore our latest Sustainability Report to find out more about our sustainability approach, material matters and how we are managing our material matters.

Explore Our Impact Stories

Rainwater Harvesting

As part of our ongoing commitment to water conservation, we continue to harvest rainwater for non-potable use, capturing runoff that

Renewable Energy

To further reduce our GHG emissions and reliance on fossil fuels, we continued to expand our renewable energy portfolio in

Sustainability Priorities

QL is committed towards sustainable development with 15 key sustainability matters identified. These sustainability matters will support the Group’s objective achieving sustainable growth with positive impacts to the environment and the society.

Environmental Responsibility

Climate Change

Reducing GHG emissions to contribute towards the global climate agenda

LEARN MORE

Water Security

Safeguarding water is key to ensuring water security for all

LEARN MORE

Pollution and Resources

Increasing efforts in managing use of resources and adopting circular economy principles

LEARN MORE

Biodiversity

Restoring the balance of nature through rehabilitation and regeneration

LEARN MORE

Supply Chain (Environment)

Reducing carbon footprint of our supply chain operations and promoting a sustainable ecosystem

LEARN MORE

Social Responsibility

Customer Responsibility

Producing high quality, safe and nutritious food that meets consumer demands

LEARN MORE

Labour Standards

Promoting fair labour practices to ensure that our employees receive fair treatment and respect at workplace

LEARN MORE

Talent Management

Developing a skilled workforce led by progressive leadership team

LEARN MORE

Occupational Safety & Health

Building a safe and healthy work culture underpinned by leading health and safety practices

LEARN MORE

Community Contributions

Creating positive impacts for communities through corporate philanthropy programmes

LEARN MORE

Supply Chain (Social)

Ensuring the protection of workers’ rights, enhancing safety and supporting local vendors

LEARN MORE

Governance Responsibility

Anti-Corruption

Embedding good corporate governance to manage ESG risks and opportunities across the Group

LEARN MORE

Innovation and Technology

Equipping us to anticipate and adapt to changing market dynamics

LEARN MORE

Risk Management

Incorporating risk management into strategic planning and day-to-day operations

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Environmental Responsibility

Climate Change

Our Approach

We recognise our contribution to greenhouse gas emissions and are proactively minimising our carbon footprint through decarbonization initiatives. These include expanding the use of renewable energy from diverse sustainable sources, offering solar energy solutions to more clients. We also support environmental programmes that offer co-benefits to climate mitigation and climate adaptation i.e. mangrove reforestation and rehabilitation.

Identifying Risks and Seizing Opportunities

QL took an important step forward by commencing preparation for the IFRS S1 and S2 Standards disclosure. We initiated climate risk assessment on physical as well as transition risks and opportunities, referencing TCFD recommendations, and IFRS S2 Standard.

Commitment to Climate Change

To showcase our dedication to addressing climate change concerns, we introduced a Climate Change Policy in FY2024. The policy outlines QL’s strategy for tackling climate-related matters and integrating climate considerations into our decision-making procedures.

Our Target

Achieve 20% GHG emissions reduction by FY2026 from FY2020 baseline.

GHG reduction from FY2020 baseline

47%

FY2025 Highlights

891,801.53 GJ

renewable energy consumed

35,034.73 tCO₂e

of GHG emissions avoided

9%

GHG Intensity Reduction

Note: Performance since FY2020

Our Performance

Energy Consumption

Indicator	Unit of Measurement	FY2023	FY2024	FY2025
Total Non-Renewable Energy Consumption	Per Thousand Gigajoule, 000 GJ	1,054.67	1,184.20	1,277.67
Scope 1 (Diesel, Petrol, Natural Gas & Liquified Petroleum Gas)	000 GJ	441.78	503.13	547.63
Scope 2 (Purchased Electricity)	000 GJ	612.89	681.07	730.04
Renewable Source by Type
Solar, Biogas & Biomass	000 GJ	841.91	977.51	891.80
Energy Intensity
Total Energy Consumption	000 GJ	1,896.58	2,161.71	2,169.47
Energy Intensity	GJ/ RM Mil Revenue	439.76	484.88	442.39

GHG Emissions

Indicator	Unit of Measurement	FY2023	FY2024	FY2025
Total GHG Emissions	Per Thousand Tonnes, 000 tCO₂e	142.82	153.64	164.85
Direct GHG Emissions (Scope 1)	000 tCO₂e	35.51	36.10	38.63
Indirect GHG Emissions (Scope 2)	000 tCO₂e	107.31	117.54	126.22
GHG Emissions Intensity	tCO₂e/ RM Mil Revenue	31.89	34.46	33.62
Indirect GHG Emissions (Scope 3)	000 tCO₂e	-	-	22.30
GHG Emissions Avoidance
Total GHG Emissions Avoided	000 tCO₂e	25.15	25.79	24.03

View Our Climate Change Section in the Integrated Annual Report

Explore More Environmental Impact Stories

Rainwater Harvesting

As part of our ongoing commitment to water conservation, we continue to harvest rainwater for non-potable use, capturing runoff that

Renewable Energy

To further reduce our GHG emissions and reliance on fossil fuels, we continued to expand our renewable energy portfolio in

QL is committed towards sustainable development with 12 key sustainability matters identified. These sustainability matters will support the Group’s objective achieving sustainable growth with positive impacts to the environment and the society.

Sustainability Priorities

Environmental Responsibility

Climate Change & Emissions

Reducing GHG emissions to contribute towards the global climate agenda

LEARN MORE

Water Security

Safeguarding water is key to ensuring water security for all

LEARN MORE

Waste Management

Increasing efforts in managing use of resources and adopting circular economy principles

LEARN MORE

Biodiversity

Restoring the balance of nature through rehabilitation and regeneration

LEARN MORE

Social Responsibility

Growing Our Business

Pursuing sustainable growth through strategic investment decisions

LEARN MORE

Food Quality, Safety & Nutrition

Producing high quality, safe and nutritious food that meets consumer demands

LEARN MORE

Biosecurity

Practicing rigorous biosecurity management measures to ensure healthy and safe poultry

LEARN MORE

Fair Labour Practices

Promoting fair labour practices to ensure that our employees receive fair treatment and respect at workplace

LEARN MORE

Talent Management

Developing a skilled workforce led by progressive leadership team

LEARN MORE

Occupational Safety & Health

Building a safe and healthy work culture underpinned by leading health and safety practices

LEARN MORE

Commitment to Our Communities

Creating positive impacts for communities through corporate philanthropy programmes

LEARN MORE

Governance

Upholding Business Integrity

Embedding good corporate governance to manage ESG risks and opportunities across the Group

LEARN MORE

Our Value Creation Strategy

Sustainability has always been an integral part of QL’s business operations. In our efforts to create shared value for all, we are cognizant of our role, responsibility and duty to conduct business ethically and uphold good corporate governance, operate in a socially and environmentally responsible manner and adhere to sustainable practices.

Our Value Creation Model

Sustainability Governance

Sustainability at QL is overseen by the Board of Directors (“the Board”) and the Executive Committee (EXCO), who review the Group’s material sustainability and climate-related strategies, priorities, targets, and performance. The Board also oversees associated risks and opportunities, ensuring that key sustainability-related information is effectively communicated to both internal and external stakeholders.

The Board is supported by the Sustainability Steering Committee (SSC), chaired by QL’s Group Chief Executive Officer (CEO) and comprising Heads of Business Units and Business Functions (HOBU). The SSC is assisted by the Sustainability Reporting Working Group (SRW), which guides and monitors QL’s sustainability and climate-related performance across all business units. Business units are responsible for implementing sustainability and climate-related initiatives within their operations in alignment with the Group’s overarching policies and frameworks.

The roles and responsibilities of each committee are summarised below:

Materiality Assessment

QL conducts full materiality assessment once every three years and review our material matters annually to ensure that our sustainability matters remain relevant and up to date with local and global trends.

In FY2024, QL conducted a double materiality assessment to update our previous materiality matrix that was established in FY2021 to better reflect the latest prioritisation of our material topics. The assessment evaluated the significance of ESG factors in QL’s value creation and the impacts of QL’s business operations throughout its entire value chain on both people and the environment.

The materiality matrix presented below is a restatement of QL’s matrix from FY2021.

QL Materiality Matrix

We have streamlined our previous 17 material matters into 15. To align with emerging ESG issues and evolving stakeholder expectations, we have consolidated and renamed several material matters. Major updates are as follows:

Climate Change – Merged “Climate Change & Emissions” and “Energy Management”.
Pollution and Resources – Expanded “Waste & Effluents Management” to include resources management.
Supply Chain (Environment) – Split out from “Supply Chain Management” to provide focus on environmental impacts including sustainable agriculture practices.
Supply Chain (Social) – Split out from “Supply Chain Management” to provide focus on social impacts.
Customer Responsibility – New material matter introduced to provide wider coverage for responsible marketing and advertising.
Risk Management – New material matter introduced to emphasis on robust risk management.
Innovation and Technology – New material matter introduced to reflect its trend as an emerging risk and increasing significance to our stakeholders.
Anti-Corruption – Renamed from “Upholding Business Integrity” to expand coverage on anti-corruption.

Our materiality matrix reveals that 13 material matters are rated as high importance to value creation and high impact materiality to environment and social. Three material matters, namely Anti-Corruption, Customer Responsibility, and Occupational Safety and Health (OSH) are the top three most important and most impactful. While Community Contributions and Biodiversity may have shifted to a lower quadrant, we acknowledge our impacts on local communities and biological resources. Hence, we remain committed to incorporating disclosures pertaining to these matters wherever applicable, considering the relevancy to our stakeholders.

The in-depth assessment concluded a series of material matters that will be the focus of our sustainability efforts and disclosures. It served as the foundation for crafting our ESG plans and establishing a set of targets for our key material topics commencing from 2024.

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Our Sustainability Priorities

Sustainability Impacts

Our Sustainability Reports

Governance

Innovation and Technology

Zero substantiated incidents

Social Responsibility

Supply Chain (Social)

Rainwater Harvesting

Renewable Energy

Creating Positive Change and Building Stronger Communities and Environment

MPM

ILF

CVS

Sustainability

Our Three Pillars of Sustainability

2025 Sustainability Report

Explore Our Impact Stories

Sustainability Priorities

Environmental Responsibility

Climate Change

Water Security

Pollution and Resources

Biodiversity

Supply Chain (Environment)

Social Responsibility

Customer Responsibility

Labour Standards

Talent Management

Occupational Safety & Health

Community Contributions

Supply Chain (Social)

Governance Responsibility

Anti-Corruption

Innovation and Technology

Risk Management

Environmental Responsibility

Climate Change

891,801.53 GJ

35,034.73 tCO2e

9%

Sustainability Priorities

Environmental Responsibility

Climate Change & Emissions

Water Security

Waste Management

Biodiversity

Social Responsibility

Growing Our Business

Food Quality, Safety & Nutrition

Biosecurity

Fair Labour Practices

Talent Management

Occupational Safety & Health

Commitment to Our Communities

Governance

Upholding Business Integrity

Our Value Creation Strategy

Our Value Creation Model

Sustainability Governance

Materiality Assessment

Acknowledgement of Whistleblowing Report

35,034.73 tCO₂e