20 hours ago
Kossan ramps up ESG drive
PETALING JAYA: Analysts view Kossan Rubber Industries Bhd 's initiatives in addressing environmental impact as a key component of the group's long-term operational strategy, with recent year-on-year improvements underscoring its commitment to sustainable manufacturing.
According to Hong Leong Investment Bank (HLIB) Research, the group achieved measurable gains in emissions, water and waste management in 2024, despite broader challenges in the glove sector.
These gains are said to align with the group's Kossan Sustainability Strategy and Blueprint 2035, which replaces its previous L.I.V.E. 12 framework and introduces more actionable targets to meet global environmental, social and governance (ESG) expectations.
Kossan has set a target to reduce Scope 1 and 2 emissions intensity by 53.6% by 2035.
HLIB Research noted that Kossan's technical rubber products division had achieved a 3.7% year-on-year reduction in emissions intensity to 2.37 carbon dioxide equivalent per kilogramme (CO2e/kg), driven by ongoing energy-saving measures.
However, the group's overall emissions intensity remained flattish at 0.023 tonnes CO2e for every 1,000 pieces of gloves in 2024, due to the inclusion of fugitive emissions and the adoption of updated national emission factors for Scope 2 calculations.
In water management, Kossan aims to cut water consumption intensity by 35% by 2035.
HLIB Research kept its earnings forecasts for financial year 2025 (FY25) to FY27 and maintained its 'buy' call with an unchanged target price of RM2.30, citing the group's recovery remains on track.
