As a specialised steel trading, processing, and manufacturing company, Leon Fuat Berhad ("Leon Fuat" or "the Group") recognises the importance of integrating Environmental, Social, and Governance ("ESG") considerations into our business operations. We are committed to delivering a positive impact on both society and the environment. As part of our ongoing sustainability journey, we continue to strengthen our operations with a focus on responsible resource management, proactive stakeholder engagement, and meaningful contributions to community development.

TOWARDS A BRIGHTER TOMORROW

Our sustainability reporting journey demonstrates meaningful progress in integrating sustainability considerations across our strategy and operations. Advances in responsible practices and enhanced reporting continue to drive us towards our goals and targets.

Leon Fuat's sustainability journey is outlined in the figure below:

FY2017 - FY2018

  • Published the inaugural sustainability statement in FY2017 in accordance with Bursa Malaysia Sustainability Reporting Guide (1st Edition)
  • Established a Sustainability Committee and a Sustainability Task Force Committee
  • Conducted materiality assessment and developed a materiality matrix based on thirteen (13) material matters
  • Fourteen (14) UN SDGs adopted in total

FY2019 - FY2020

  • Adopted Bursa Malaysia's Sustainability Reporting Guide (2nd Edition) and GRI Standards
  • Established a three-tier governance structure and Terms of Reference ("TOR")
  • Identified seven (7) key stakeholder groups and enhanced the stakeholder engagement table by adding each group's areas of interest and the engagement frequency for every channel
  • Conducted a materiality re-assessment in 2020 to identify new priorities

FY2021 - FY2022

  • Established a Sustainability Framework
  • Introduced Climate Change as a new material sustainability matter
  • Reviewed and updated the materiality matrix to reflect changes in priorities
  • Reported on the installation of solar panels at LF Metal factories, with total capacity of approximately 2,300 kWp

FY2023

  • Adopted Bursa Malaysia's Sustainability Reporting Guide (3rd Edition)
  • Commenced climate-related reporting guided by the Task Force on Climate-related Financial Disclosures ("TCFD") Recommendations
  • Established Group-wide Sustainability Policy
  • Conducted materiality re-assessment on thirteen (13) material matters to re-evaluate and update ESG priorities

FY2024

  • Enhanced climate-related disclosures by evaluating climate-related risks and opportunities over short - medium- and long-term time-horizons
  • Reported emissions avoidance through solar power generation

FY2025

  • Expanded Scope 1 GHG emissions reporting to include emissions from liquefied petroleum gas ("LPG")

Our Vision

"Steel is our business. Excellence is our commitment"

Leon Fuat's Shared Values

Drive a performance culture of integrity and accountability
Commitment to products and services quality
Strengthen business processes to provide better service to customers
Manage cash resources for operational effectiveness
Economic Prosperity
  • Operational Excellence
  • Responsible Procurement
Responsible Governance
  • Corporate Governance and Anti-Corruption
  • Data Privacy and Cybersecurity
Environmental Stewardship
  • Climate Change and Energy
  • Effluent and Waste Management
  • Water Efficiency
Social Responsibility
  • Occupational Safety and Health
  • Noise Management
  • Labour Practices and Standards
  • Diversity and Inclusiveness
  • Product Quality and Customer Satisfaction
  • Corporate Social Responsibility

Supporting the Global Sustainable Goals

The United Nations Sustainable Development Goals ("UN SDGs") urge all countries to foster a sustainable and inclusive global society by 2030. We continue to uphold eight (8) SDGs that align with our core initiatives and represent areas where our actions can have the most impact.

Our Contribution to the UN SDGs:

3
Good Health
and well-being
UN SDG 3
  • Provided healthcare and insurance coverage as part of our employee benefits package
  • LF Metal enhanced employee medical benefits to cover dental, preventive care and optical needs, in addition to general outpatient treatment
7
Affordable and
Clean Energy
UN SDG 7
  • 34% of electricity consumption at LF Metal is generated from solar panels
  • Exported 915,000 kWh of surplus electricity to the grid under the Net Energy Metering Scheme
  • The ongoing replacement of ageing translucent roofing sheets at one (1) factory is expected to reduce electricity consumption for lighting by approximately 53,553 kWh annually
8
Decent work and
Economic Growth
UN SDG 8
  • Reviewed and updated LF Metal's Health and Safety Policy to emphasise regulatory compliance, non-discrimination, risk management, stakeholder participation and continuous improvement
  • Conducted Hazard Identification, Risk Assessment and Risk Control ("HIRARC") assessments at Supreme Steelmakers to systematically identify, mitigate and eliminate operational risks in CNC laser cutting and plasma cutting processes
  • Annual audiometric testing was conducted for 86 employees to monitor occupational noise exposure
  • Noise risk assessments are scheduled for LF Metal in FY2026 and Supreme Steelmakers in FY2027, in line with legal requirements for assessments to be conducted at least once every five (5) years
  • Delivered ongoing health and safety training to employees, conducted weekly toolbox talks and unannounced Sunday safety walkabouts at production sites
9
Industry, Innovation
and Infrastructure
UN SDG 9
  • Production efficiency was enhanced through investments in a new CNC oxy-gas cutting machine for plate cutting at LF Hardware and a new fibre laser cutting machine at LF Metal, upgrading the Group's metal-cutting capacity
  • Achieved 100% conversion of delivery trucks to green diesel-powered vehicles, reducing sulphur content and lowering carbon monoxide emissions
12
Responsible
Consumption
and production
UN SDG 12
  • Implemented waste management procedures at Supreme Steelmakers to ensure the proper handling of scheduled and non-scheduled waste
  • Reviewed and updated LF Metal's Safety and Health Policy to include procedures for scheduled waste management
  • Conducted biannual effluent sampling at LF Metal and consistently monitored results to ensure that discharges remain within required environmental standards
  • Established procurement procedures involving a structured registration process and periodic evaluations to uphold fair business practices and ethical supplier compliance
  • Conducted supplier evaluations and regular performance assessments to ensure adherence to corporate values
13
Climate
Action
UN SDG 13
  • Reduced emissions of air pollutants by adopting green diesel for delivery vehicles and increasing solar power usage to enhance energy efficiency
  • Enhanced climate-related disclosures by evaluating climate-related risks and opportunities over the short-, medium- and long-term
16
Peace, Justice
and strong
Institutions
UN SDG 16
  • Updated the ABMS system in line with the latest ISO 37001:2025 standard
  • Incorporated an ABMS declaration form into supplier selection and due diligence processes under Supreme Steelmakers
  • Achieved zero confirmed incidents of bribery, corruption or whistleblowing cases for three (3) consecutive years
17
Partnerships
For the Goals
UN SDG 17
  • Collaborated with various community organisations, associations and educational institutions through Corporate Social Responsibility ("CSR") initiatives, providing a total financial contribution of RM44,600.

Implementing Our Sustainability Policy

Our Sustainability Policy guides the integration of responsible business practices throughout our steel trading and processing operations. It supports decision-making, strengthens regulatory compliance and promotes transparency and accountability in managing our sustainability priorities.

Economic Prosperity

  • Adopt a business model that emphasises quality products, value-added services and ethical practices
  • Aim to provide returns to shareholders while considering the long-term impacts of our actions
  • Conduct regular assessments to identify and address potential risks in the supply chain, supporting compliance with responsible sourcing practices
  • Promote continuous improvements of sustainable products and services
Read More

Responsible Governance

  • Adhere to laws, regulations and industry standards by periodically assessing our compliance mechanisms and updating policies as needed to meet evolving legal requirements
  • Maintain transparent and open communication with our stakeholders
  • Support ethical behaviour and integrity within business operations, encouraging a culture of honesty, fairness and accountability
  • Implement risk management strategies, identifying potential environmental, social and governance risks and taking measures to address them
Read More

Environmental Stewardship

  • Continuously improve energy efficiency while monitoring and reducing our carbon footprint
  • Maintain compliance with applicable environmental regulations and legal requirements
  • Reduce environmental pollution and enhance environmental management practices
  • Support circular economy principles, with a focus on recycling, reusing and reducing waste
  • Explore initiatives to extend the lifecycle of products, promoting responsible consumption and production
  • Monitor water consumption and implement water conservation practices across our facilities
Read More

Social Responsibility

  • Emphasise the health, safety and well-being of our employees by implementing safety guidelines and protocols
  • Conduct regular health and safety training to foster a safe and healthy work environment
  • Encourage employee growth and development through training programmes, career advancement opportunities and performance recognition
  • Promote diversity and inclusion by adopting policies and practices aimed at providing equal opportunities and eliminate discrimination
  • Engage in community development initiatives
Read More

Strengthening Stakeholder Relationships

Making Progress with Our Partners

The Group engages stakeholders in order to understand their concerns and align with their expectations. We utilise various platforms to gain valuable insights into their priorities, ensuring that their feedback informs our decision-making and contributes to our shared values and mutual progress.

Read More

Sustaining Growth and Responsibility

Sustainability Report 2025

As a specialised steel trading, processing and manufacturing company, our Group acknowledges the importance of integrating Environmental, Social and Governance ("ESG") considerations into our business, aiming to leave a positive impact on society and the environment.

We are pleased to present our Sustainability Report for the financial year 2025, offering a detailed account of our ongoing journey and the progress we have made thus far. We continue to refine our processes and operations to align with modern best practices, viewing it as our responsibility to shape a better future for generations to come.

Read More

© Copyright LEON FUAT BERHAD [200601036648 (756407-D)]. All Rights Reserved.