Corporate Responsibility Strategy: Aquaculture Operations with a Focus on Sustainability

MAG Holdings Berhad (“MAG”) aims to create a shared value that focuses on sustainability to all its stakeholders through strategic initiatives.

As one of the leading aquaculture players in Malaysia, we are committed to demonstrating responsible corporate conduct across all aspects of our operations.

Environment

We are committed to our responsibility on environmental issues in the conduct of our operations. In line with the Group’s focus on sustainable development in the long term, we have outlined our commitment towards the environment in our Safety, Health and Environment (“SHE”) policy.

A Shift towards Renewable Energy

One of the key areas that MAG prioritised is the initiative to shift towards renewable energy. As part of the Group’s initiative to shift towards renewable energy, the management is in the midst of installing floating solar panels on its cultivation ponds.

A solar-powered cultivation pond management system will help reduce carbon dioxide (CO2) emissions as solar power does not depend on burning fossil fuels or other products. Instead, it uses electrons captured from the Sun’s energy for energy creation.

Waste Management

In line with the Group’s commitment to “green” practices, MAG has taken proactive measures to reduce aquaculture facilities’ waste. The increased usage of feeds applied to water for improved production has led to waste from aquaculture facilities.

Among some of the measures implemented by the Group includes:

  1. Choosing the appropriate feeds during the production cycle and paying close attention to the feeding methods and the resulting solids production will reduce the wastes.
  2. Selection of extruded, high-energy feeds is another management tool deployed to reduce waste.
  3. Rapid removal of solids in the settleable form before discharge to water will help to reduce downstream pollution.
  4. Round tanks are used as it is more efficient at waste removal in comparison to rectangular or square tanks.
  5. Circular flow principle is applied to retrofit existing raceways by modifying the flow in the quiescent zone.

Social

As the world continues to contemplate ways to feed the additional 2.2 billion mouths between now and 2050, aquaculture is increasingly seen as a viable solution. This has become even more important as citizens from the emerging Asian economies shift from vegetable-based to protein-rich diets.

Engagement with Community

Knowing the importance of farmed seafood as a source of nutrition globally, MAG commits to play an active role to engage with the community where the well-being, health and nutrition of families and children are concerned.

Among some of the initiatives launched under the initiatives to engage with the community includes the launching of an entrepreneurship programme targeted for the B40 households. The initiative is set up together with a government agency in order to improve the livelihood of those in the low-income category. MAG will set up a training centre, which will provide the technical expertise and knowledge on shrimp breeding.

Once the participants are qualified to take on the business on their own, the Group will recommend them to the government agency, which offers fundings to help set up their own ponds. In order to help these small fish farmers kickstart their entrepreneurship journey, MAG will offtake the production from these small fish farmers. These will help generate a sustainable income for the B40 households and promote the aquaculture industry in Malaysia.

Best Workplace in Aquaculture

The working environment of MAG is known to be fair, respectful, integrity and professional. We are highly committed to providing equal and competitive opportunities at all levels of our business, guided by our principles of diversity and excellence.

Over the last three years, we have taken measures to ensure our employee portfolio reflects Malaysia's diversity of culture and ethnicity.

Safe and secure management of COVID-19

MAG aims to ensure a flexible working arrangement for its employees, especially during the COVID-19 pandemic.

Among some of the arrangements include:

  1. Working from Home arrangements for employees that are not required to be present at the site
  2. Flexible working time to avoid overcrowding at the workplace
  3. Counselling for employees who are struggling from the impact of the lockdown

 

The COVID-19 pandemic has impacted the production of the plant as we have to shift towards Work From Home arrangement for some of our employees. As for employees that need to be present at the pond or in the office, MAG will ensure sufficient measures are taken to keep its employees safe, connected, motivated and maintain our positive culture of appreciation and recognition.

Among some of the Standard of Procedures (SoP) that we have implemented to keep our employees safe:

  1. COVID-19 Testing for employees that are entering into production site or office
  2. Distribution of Self-Testing Kits to all employees
  3. Updates employees of COVID-19 status (SOPs, developments)
  4. Technical support for employees working from home to keep connected
  5. Deploy talks to support employees (mental wellbeing) Employees Engagement

 

Aside from that, the Group also put a lot of emphasis on employees engagement. This is to ensure open and two-way communications for all employees. MAG actively listen to its employees via the numerous Surveys conducted by the Group. Here, our employees’ feedbacks and suggestions are taken into consideration by the management team in designing its overall initiatives to improve the workplace for every employee.

Governance

Governance is a key area to ensure a transparent, accountable, and responsible way of managing our investors’ money and the decision-making of the management. In line with our focus to drive a sustainable growth of the Group, we also put sustainability as part of the key aspects under the responsibility of the Board Commitment & Reporting Framework.

Board Commitment & Reporting Framework

Board of Directors

  • Oversee and approve sustainability initiatives, budget and performance

Management Team

  • Monitor and execute sustainability initiatives
  • Responsible for sustainability business policies and practices across the operations within the Group
  • Formulate sustainability strategies, policies, goals and execution
  • Facilitate the operations to meet sustainability goals
  • Provide training and awareness within the Group on the sustainability initiatives
  • Quarterly sustainability performance reporting

Operations

  • Ensure day-to-day operations are in line with sustainability goals
  • Ensure compliance with sustainability policies, initiatives and practices
  • Record all incidence of non-compliance
  • Record all sustainability related data

Other areas that the Group highlight includes the following:

  • Board of Directors and its makeup
  • Compensation of Executives
  • Partners Compensation
  • Hiring and onboarding best practices for Directors and Executives