Environmental Responsibility

Pollution and Resources

Why It Matters

QL’s operations generate waste, wastewater and by-products that require effective management. Inadequate controls may lead to environmental impacts, regulatory non-compliance and increased operating costs. Resource efficiency also influences production performance and competitiveness. Managing pollution and resources responsibly is therefore important for maintaining stable and compliant operations.

Our Approach

We apply circular economy principles by reducing waste generation, improving recycling and ensuring appropriate treatment of effluent. In alignment with our Environmental Policy, waste and wastewater are managed in accordance with regulatory requirements and internal standards, monitoring and assessment are carried out, while new technology to reduce pollution and waste are explored. Where feasible, by-products are repurposed or recovered to improve resource efficiency. These practices support environmental protection while enhancing operational efficiency.

FY2026 Highlights

  • 207,950.95 MT

    of waste was recycled/ recovered

  • 95.3% diversion

    of waste from landfills and incineration

  • 1,358,519.71 m3

    of water was discharged into surface water sources

Our Performance
Total Water Discharged by Destination
Indicator Unit of Measurement FY2024 FY2025 FY2026
Water Discharge to Surface Water Per Thousand Cubic Meter, 000 m3 1,138.53 1,345.24 1,358.52
Water Discharge Intensity m3/ RM Mil Revenue 255.38 274.32 277.45

During FY2026, one instance of non-compliance was recorded, resulting in a fine of RM 2,000 issued by the Department of Environment in relation to wastewater management infrastructure. Corrective actions were implemented promptly, and measures have been enhanced to prevent recurrence.

Waste Generated
Indicator Unit of Measurement FY2024 FY2025 FY2026
Total Waste Generated Per Thousand Metric Tonnes, 000 MT 212.40 209.44 218.28
Total Non-Hazardous Waste Generated 000 MT 212.37 209.41 218.25
Total Hazardous Waste Generated 000 MT 0.03 0.04 0.03
Waste Disposal
Indicator Unit of Measurement FY2024 FY2025 FY2026
Total Waste Diverted from Disposal (Reuse, Recycle, Recovery & Composting) Per Thousand Metric Tonnes, 000 MT 202.48 198.03 207.95
Total Waste Directed to Disposal (Landfill & Incineration) 000 MT 9.92 11.41 10.33
Percentage of Waste Diverted from Disposal (Reuse, Recycle, Recovery & Composting) % 95.3 94.6 95.3
View Our Pollution and Resources Section in the Integrated Annual Report

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Environmental Responsibility

Water Security

Why It Matters

Water is a critical resource for QL’s farming, processing and food preparation activities. Variability in water availability or quality may disrupt production processes, hygiene standards and operational schedules. Increasing pressure on water resources heightens the need for responsible and efficient water use across operations. Effective water stewardship underpins continuity of operations and prudent management of water-related risks.

Our Approach
In alignment with our Environmental Policy, we are committed to safeguarding water resources and optimising water consumption at all our operation sites. We manage water resources through a combination of efficiency measures, alternative water sourcing and rainwater harvesting initiatives. Water usage is closely monitored to identify inefficiencies and prevent losses. Where required, water treatment solutions are implemented to meet operational and regulatory requirements. This approach helps secure reliable water supply for operations while supporting responsible management of shared resources.

FY2026 Highlights

  • 13,478.25 m3

    of rainwater harvested

Responsible Water Resource Management

As part of our climate scenario analysis exercise and QL’s efforts to enhance sustainable and resource-efficient water management, we assessed water stress exposure across our operating sites using the Aqueduct Water Risk Atlas tool. Overall, 94.5% of the Group facilities are situated in areas expected to experience a low risk level of water stress. Nonetheless, 7,369.82 m3 of water was withdrawn from Northern Malaysia and Western Indonesia areas classified as high or extremely high-water stress in FY2026, representing 0.1% of the Group’s total water withdrawal. Recognising the importance of water as a shared resource, the Group communicates its water management commitments to employees and external stakeholders through the Environmental Policy and Code of Business Ethics.

Across QL’s operational sites, water flowmeters are installed to enhance water management practices and safeguard water resources. These devices help us monitor water consumption more closely and detect potential leakages early within our distribution systems, reducing water losses and supporting operational efficiency.

Our Performance

Total Water Withdrawal by Source
Indicator Unit of Measurement FY2024 FY2025 FY2026
Total Water Withdraw Per Thousand Cubic Meter, 000 m3 3,085.93 3,602.98 3,621.49
Municipal Potable Water 000 m3 2,169.35 2,518.24 2,629.74
Groundwater from wells 000 m3 549.87 701.03 613.03
Surface Water from Rivers, Lakes, Natural Ponds * 000 m3 366.71* 383.72* 378.72
Used Quarry Water Collected in the Quarry 000 m3 - - -
External Wastewater 000 m3 - - -
Sea Water, Water Extracted from the Sea or the Ocean 000 m3 - - -
Water Withdrawal Intensity m3/ RM Mil Revenue 692.18 734.71 739.62
Alternative Water Withdrawal Solutions
Harvested Rainwater 000 m3 5.07 3.75 13.48

* Comparative figures have been restated following the combination of river and lake water categories.

View Our Water Security Section in the Integrated Annual Report

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Environmental Responsibility

QL Group has incorporated environmental issues into its operations in order to reduce waste and emissions, maximize the efficiency and productivity of its resources and minimize practices that badly affect the country’s natural resources. 

Improving energy use efficiency and reducing carbon footprint to contribute towards the global climate agenda. 

Managing water use responsibly for our business and the communities. 

Improving waste recycling efforts to maximise use of resources. 

Conserving the environment for our future generations. 

Sustainability Reporting

Annually, QL will publish our Sustainability Statement which details progress of our material matters during the financial year. You may find information regarding our environmental, social and governance (ESG) performance, policies and initiatives within the report.

Reporting Framework and Alignment to Global Goals

This Sustainability Statement (the Statement) is intended to provide our stakeholders with a clear and informed understanding of QL’s sustainability commitments, strategies, performance, and progress. It presents how we integrate sustainability considerations into our business operations and decision-making, reflecting our balanced and responsible approach to creating sustainable, long-term value for our stakeholders.

This Statement is prepared in accordance with Bursa Malaysia Securities Berhad Main Market Listing Requirements and with reference to internationally recognised frameworks, standards and sustainability-related indices:

Reporting Standards and Framework

  • Global Reporting Initiative (GRI) Standards
  • Sustainability Accounting Standards Board (SASB)
  • Malaysian Code on Corporate Governance (MCCG) by the Securities Commission Malaysia

Sustainability-related Indices

  • FTSE4Good Bursa Malaysia (F4GBM) Index
  • S&P Dow Jones Indices

The Statement includes both financial material and impact material disclosures:

  • Climate-related risks and opportunities aligned with NSRF phased adoption
  • Management of material sustainability matters

QL is reporting under the IFRS Sustainability Disclosures Standards for the first time for the annual reporting period ended 31 March 2026. It has applied the following standards for its annual reporting period commencing 1 April 2025:

  • IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) 
  • IFRS S2 Climate-related Disclosures (IFRS S2)

The National Sustainability Reporting Framework (NSRF) and International Sustainability Standards Board (ISSB) transition reliefs are applied and proportionality mechanism are exercised in the preparation of the statement, taking into consideration data availability and measurement methodologies etc.

ISSB Transition Reliefs

  • Comparative Informative Relief
  • Climate first approach
  • Scope 3 GHG Emission

NSRF Transition Reliefs

  • ATR1 on climate-first approach and comparative informative relief
  • ATR2 on climate-related disclosures for principal business segments
  • ATR3 on Scope 3 GHG emissions
GRI

Framework and Governance

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.

Governance Structure
Materiality Matrix

Acknowledgement of Whistleblowing Report

Dear Whistleblower,

Thank you for lodging your whistleblowing report with us.

To enable us to proceed with a complete evaluation of the matter, we kindly request that you complete the Whistleblowing Report Form, if you have not already done so.

You may access the form here:
Download Form

Kindly provide all relevant details and supporting information to assist with our review.

We wish to assure you that your submission will be reviewed impartially, and all disclosures will be treated confidentially in accordance with our Whistleblower Policy.

Regards
QL Resources Berhad