FTSE4Good Additional Sustainability Disclosure
on Labour Standards, Human Rights &
Community and Health and Safety

Sustainability is an important aspect of the operations at MR D.I.Y. We recognise that our stakeholders want to know how it is embedded in our vision, culture and operations, and want to be assured that we are responsible in our actions and responsive to the needs of the communities in which we operate.

As Malaysia's leading home improvement retailer, and one of the top companies on the Malaysian stock exchange, we see it as our responsibility to set benchmarks in sustainable principles and practices across all areas of our operations.

We recognise that this is a journey, one that our Board and Senior Leadership Team are committed to. We have set long-term goals, aligned to clear strategies, specific targets and decisive actions. With these goals and strategies in place, we are able to closely track our progress, and mark critical milestones as they are met.

As one of the leading employers in the country, we are dedicated to providing a fair, equitable and inclusive working environment for all employees. Our labour standards have been developed in accordance with the Employment Act 1955 (EA) and Industrial Relations Act 1967 (IRA), which are also aligned to internationally-recognized standards such as the International Labour Organization Core Conventions on Labour Standards.

MR D.I.Y or the Group is also an active member of the Malaysian Employers Federation, which keeps us informed on the latest industry developments and best practices on labour management.

The following section are set out as additional disclosures in relation to the FTSE4Good theme for Labour Standards.

1. EMPLOYEE TRAINING AND DEVELOPMENT

Our people are our most valuable asset. We are committed to creating a fair and inclusive environment, where everyone is given an equal opportunity to realise their full potential.

We believe that engaged employees translate into improved productivity and greater work satisfaction. We invest in a broad range of in-house and external training and development programmes to foster employee development. These cover a breadth of subjects including health & safety, anti-bribery & corruption, code of conduct, customer relationships, and other learning and development courses.

All of our Human Resources policies are communicated to all employees and are available via the Human Resource intranet system.

Examples of some of the personal development & training programmes conducted in 2020:

1. Communication at the Workplace
2. Decision Making for Supervisor
3. Ethics at the Workplace (inclusive of training on bullying & harassment)
4. Leadership at the Workplace
5. Managing Company Goals
6. Managing Other
7. Managing Performance & Discipline
8. Problem Solving for Supervisor

In 2020, we recorded an average of 1.3 training days per employee for training to enhance knowledge and individual skills.

The Group is also an active participant in programmes, forums and workshops pertaining to labour standards, youth unemployment initiatives, apprenticeships and graduate placement programs.

2. WAGES, WORKING HOURS AND BENEFITS

The Group complies with the EA in relation to wages, working hours and benefits.

In February 2020, the Group increased the minimum salary of employees to be in line with the Minimum Wages Order 2020. The Group not only complies with the statutory minimum wage but strives to ensure compensation is competitive and reflective of the employee's experience, function and performance in the organisation.

In addition to salaries and incentives, the Group also incurs ancillary staff costs, such as expenses for recruitment and training. Workers are eligible for overtime pay when working in excess of normal hours. Overtime work must be on a voluntary basis and shall not be in excess of the regulated number of hours as stipulated in the EA. Our aim is to ensure a fair wage for fair hours of work, and equal pay for equal work across the organization.

3. DIVERSITY AND INCLUSION

The Group is an equal opportunity employer committed to nurturing an inclusive, fair working environment. All employees are treated equally irrespective of race, gender, ethnicity, age, physical ability, nationality or religion. The Group also welcomes and promotes the employment of the less privileged including those from disadvantaged backgrounds or with no formal education or qualifications.

We have established a fair and transparent process for remuneration and we ensure that the evaluation of employee performance is merit-based.

In a multi-racial and multi-cultural country like Malaysia, we place importance on promoting respect for diverse values and perspectives amongst co-workers.

There were no incidents of discrimination reported in 2020.

We recognise that there is still work to be done to improve on the diversity of our workforce and will from time to time rectify and introduce enhanced policies to promote gender diversity within the organisation.

4. CHILD & FORCED LABOUR

The Group has a zero-tolerance policy towards child and forced labour across our entire value chain. This includes the conduct of our suppliers and vendors. Governed by the Children and Young Persons (Employment) Act 1966, the Group does not hire any underaged employee or engage underaged contingent workers through third-parties.

The Group complies with the laws and regulations of Malaysia and has not recorded any incidents of non-compliance to Labour Standards.

5. HARASSMENT AND BULLYING

In line with our commitment to protect our employees and prevent any untoward incidents, we have provided a platform for employees to express concerns pertaining to incidents of bullying or harassment throughout the Organisation.

Grievance mechanisms reflect localised current issues and are a prime tool for stakeholders to report any suspected violations, inappropriate or illegal behaviour. In the rare event such incidents do occur, investigations and corrective action are taken in a fair and timely manner. All reports are thoroughly and impartially investigated without fear of reprisal of any kind.

Our grievance procedure includes the following steps:

1. The employee will address the said grievance to his immediate superior via a Grievance Form. A copy of the grievance form is also lodged with the Human Resource Management Department (HRMD).
2. In the event the employee's grievance is not resolved by his immediate superior, the employee can request for a formal meeting to be held with his immediate superior together with a representative from the Human Resource Management Department HRMD.
3. If the grievance is still not resolved, either party involved in the above said formal meeting including the employee concerned may refer the matter to the Head of HRMD, who will by a written notice notify the Management for a meeting between the Head of HRMD and / or the Management with the employee concerned to resolve the grievance.
6. WHISTLEBLOWING

The Group has put in place a Whistleblowing Policy to uphold the highest standards of professionalism, integrity and ethical behaviour in the conduct of its business and operations.

The Whistleblowing Policy sets out the reporting channels, guidelines and procedures to enable anyone, including employees and members of the public, to lodge any genuine concerns pertaining to any actual or suspected unlawful, illegal, wrongful or improper conduct. MR. D.I.Y. will not retaliate nor condone any retaliation against employees who have made any such whistleblowing report in good faith.

7. RISK ASSESSMENT

Risk identification and management is a priority at MR D.I.Y. There are clear and comprehensive processes to ensure the continued integrity of the Group's risk management framework. This framework covers integrated policies, procedures, systems, controls and regular reporting mechanisms that seeks to identify, assess, mitigate and prevent any risks arising from MR D.I.Y.'s operations, including issues related to labour, misconduct and non-compliance as well as business relationships with our vendors and suppliers.

8. FREEDOM OF ASSOCIATION

We value our employees and recognise the significant role they play in our business. We encourage employees to have open communications with us. We respect their right to freedom of association subject to relevant laws and regulations.

9. EMPLOYEE TURNOVER AND OTHER INFORMATION

The Group's employee turnover rate in 2020 was as follows:

Headcount as at end of 2020 11,012
Employee turnover for 2020 6,134
Employee turnover rate (%) 59%

None of the Group's employees are on temporary employment or contract basis.

The Group does not practice nor tolerate any form of modern slavery, child labour or forced labour in our organisation. Such exploitation is against our commitment to respect human rights.

We take this responsibility seriously and will swiftly address any risk of modern slavery, child labour and forced labour that may arise anywhere in our operations. We are also committed to developing a working environment aligned with internationally-recognised human rights principles which include the International Bill of Human Rights, Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights.

The following sections are set out as additional disclosures in relation to the FTSE4Good theme for Human Rights & Community.

1. OUR COMMUNITY INVESTMENTS

Our community engagement programmes create an ecosystem of trust and growth. By providing an opportunity for our colleagues to be involved in community outreach projects, we reinforce our commitment to corporate responsibility and social development, whilst continuing to support the communities in which we operate.

The Group's policy on community investments is intended to address a wide range of societal issues and challenges. Emphasis is placed on issues such as education, assisting the hardcore poor, supporting the local economy by providing employment for Malaysians as well as supporting the national effort to mitigate the impact of the COVID-19 pandemic.

Since March 2020 to October 2021, we have contributed more than RM5 million towards various COVID-19 initiatives including providing personal protective equipment for frontliners and volunteers. We have also provided medical equipment, including oxygen tanks, vital sign monitors and Personal Protective Equipment (PPE) such as gloves, mask, face shields and protective suits to 374 institutions including medical centres, disaster relief centres, health offices and police stations across the country.

We support students of all stages (primary, secondary and tertiary) by providing them with the essentials they may not be able to afford. These include face masks, sanitisers and food to 300 Orang Asli children from Pos Balar, Gua Musang who travelled from their village to the Gua Musang Vaccination Centre to have their COVID-19 vaccination shot.

We are deeply concerned about the environment, and support the protection and conservation of wildlife. This is reflected in the various conservation projects we have been involved in over the years, including the replanting of trees, donations to the various wildlife conservation centres and Zoo Negara, to name a few.

Since March 2020 to October 2021, the Group had contributed a total of RM5.3 million towards NGOs and other charitable organisations.

As a responsible organization, we prioritize the health and safety of our people. We take Occupational Health and Safety (OHS) issues, training, practices, measures and events of non-compliances very seriously. This ensures that all employees have a safe and conducive work environment. It also mitigates the possibility of injury-causing incidents.

Our general OHS policy is communicated to all new employees at orientation. In addition, all employees are required to attend job-specific safety training prior to commencing work, in compliance with the Occupational, Safety and Health Act 1994. Our employees are also insured against accidents under the Group's personal accident assurance policy.

The following sections are set out as additional disclosures in relation to the FTSE4Good theme for Health & Safety.

1. OCCUPATIONAL HEALTH & SAFETY AND ENSURING WORKPLACE SAFETY

We have an OHS committee that oversees the implementation of health programmes and plans, particularly when addressing issues relating to public health such as pandemics and communicable diseases. We use a variety of communication channels such as emails to distribute timely advisories, to keep employees informed and to advise them on actions to prevent the spread of any disease. Our goal at MR D.I.Y is to promote a healthy lifestyle whilst ensuring the well-being of our employees as well as minimizing work-related diseases or injury.

The OHS Committee is overseen by the Group's Chief Executive Officer, with regular updates provided to the Board's Corporate Responsibility Committee.

At our stores and warehouses, OHS is led by the department head or regional manager. OHS training programmes are regularly conducted for store and warehouse personnel. Our OHS inspection team also carries out regular inspections to ensure compliance.

We have a schedule for routine inspections on heavy-duty equipment and machinery, to mitigate the risk of accidents and to improve the reliability of our equipment.

In 2020, there were 16 minor incidents relating to the mishandling of cartons at our distribution centre and across the workplace. To mitigate the above, inspections and OHS training sessions were intensified.