RAM Sustainability assigns the first Platinum Sustainability Rating to Masteel

Published on 04 Nov 2024.

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RAM Sustainability has assigned its highest Sustainability Rating to Malaysia Steel Works (KL) Berhad (Masteel or the Group). The Platinum (P) rating awarded to Masteel indicates leadership in sustainability performance backed by extremely strong Environmental, Social and Governance fundamentals. 

Platinum is RAM Sustainability’s newest Sustainability Rating category introduced to reflect the advancement of the sustainability standards and performance of companies. We now have four rating levels: – Bronze, Silver, Gold and Platinum – to be assigned for an overall Sustainability Rating and each of its three components – Environmental, Social and Governance. The Bronze, Silver or Gold levels will carry the subscripts 1, 2 or 3. Subscript 1 indicates that the company ranks at the higher end of its generic rating category, subscript 2 indicates a mid-ranking, and subscript 3 indicates that the company ranks at the lower end of its generic rating category.

“The Platinum Sustainability Rating reflects Masteel’s leadership and unwavering commitment to sustainability in steel manufacturing, which is a carbon-intensive sector,” Group CEO and Executive Director of RAM Sustainability, Chris W.K. Lee, said. “This prestigious recognition highlights the Group’s exemplary corporate and sustainability governance, especially in carbon emissions management. We believe Masteel is well placed to manage the impact from the future imposition of carbon tax in Malaysia,” he added. 

Operating within a hard-to-abate sector, Masteel has developed a structured carbon emissions management strategy to achieve a net-zero target before 2050. In 2023, Masteel's overall carbon emission intensity was 0.396 tCO₂eq/mt (2022: 0.519 tCO₂eq/mt), lower than the 2022 global averages of 0.68 tCO₂eq/mt for scrap-based electric arc furnaces (EAF) and 2.33 tCO₂eq/mt for blast furnace-basic oxygen furnace (BF-BOF) crude steel cast, respectively. This achievement places Masteel, which operates scrap-based induction furnace (IF), superior to global emission intensity averages highlighting the effectiveness of its carbon reduction strategies. 

“At Masteel, we are determined to invest in advanced technologies and processes that reduce the Group’s carbon footprint while enhancing operational efficiency,” Masteel Executive Vice Chairman, Dato’ Sri Tai Hean Leng, said. “We firmly believe that sustainability is not merely a cost to be managed but a powerful catalyst for innovation and growth. By integrating sustainable practices into our operations, we aim to create long-term value for our stakeholders and lead the way toward a more sustainable future,” he added.  

Further underlining the Group’s sustainability performance is its excellent governance, having met key best practices under the Malaysia Code on Corporate Governance, which promotes effective oversight of management and balanced decision-making. These include having a majority of its board consisting of independent members and having female board representation of more than 30%. In respect of sustainability governance, Masteel has integrated the reduction of GHG emissions into key performance indicators for management. By adopting additional sustainability standards, the Group’s  sustainability reporting has surpassed that of its Malaysian peers.
 
On the social front, Masteel exhibits strong human rights and human resource organisational readiness. Its comprehensive Human Rights Policy defines the Group’s commitment to upholding and protecting the rights of its staff and the communities in which it operates. Masteel has achieved an 84% awareness rate of its Human Rights Policy through regular assessments of stakeholders. As a labour-intensive industry, the Group is dedicated to preventing child and forced labour, ensuring that these policies are accessible in multiple languages to be communicated effectively with its diverse workforce. The implementation of the Group’s Occupational Health and Safety Policy and establishment of a Safety and Health Committee further illustrates its commitment to workplace safety. The Group has set a five-year target to continually enhance safety measures, manage risks, and prevent workplace accidents, reinforcing its dedication to creating a safe work environment.

 

Analytical contact
Cynthia Lim Sin Lu
(603) 3385 2549
cynthia@ram.com.my

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my

 

About RAM Sustainability

RAM Sustainability Sdn Bhd (RAM Sustainability) is a provider of sustainability services and ESG analytics. Incorporated on 31 May 2000, RAM Sustainability is a wholly owned subsidiary of RAM Holdings Berhad (RAM Group). RAM Sustainability is the first ASEAN-based provider of ESG ratings and second opinions and has the distinction of being the first Registered Observer of ICMA’s Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Sustainability-Linked Bond Principles in ASEAN. It was a member of ICMA’s Advisory Council to the Green Bond Principle and Social Bond Principle Executive Committee for three consecutive terms. On 12 August 2020, RAM Sustainability became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard & Certification Scheme after having been awarded the status by the Climate Bonds Standards Board. For further details, please refer to https://www.ram.com.my/sustainability.

About Masteel

Malaysia Steel Works (KL) Bhd, commonly known as Masteel, stands out as one of the premier steel producers in Malaysia. The company focuses on crafting ultra-low GHG emissions high tensile steel bars, mild steel bars, and prime steel billets for construction and infrastructure sectors, which comply with the Malaysian Standard (MS 146:2014), Australasian Certification Authority for reinforcing and structural steels [(ACRS) (Australia)], the United Kingdom Accreditation Service (UKAS) accredited CARES Certificate standards for reinforcing and structural steels and ISO 9001 (Quality Management System). Masteel's manufacturing operations are strategically positioned in Petaling Jaya and Bukit Raja, Klang, within the state of Selangor Darul Ehsan, Malaysia, to optimise logistics and accessibility. The heart of Masteel's production, the Bukit Raja plant, stands as the cornerstone of our green steel manufacturing capabilities.

 

This sustainability rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for an investor, nor does it involve any audit by RAM Sustainability. It is also not a credit assessment of the rated entity.

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