Kossan Rubber Industries Bhd

Our Sustainability Agenda

We’re a business with a clear determination: “To Be A Respected Global Company By Protecting Lives Through Purposeful Rubber Products”. We stand guided by our values and committed to:

  • Enhance our efforts in eliminating the negative impact to the environment
  • Act responsibly towards the people and communities in which we operate
  • Manage our business by upholding the highest standards of governance and ethical conduct
  • Delivering top-notch product quality by striking a harmonious equilibrium between sustainable practices and optimizing profitability

We strive to foster lasting and mutually beneficial business relationships with colleagues, customers, suppliers, and partners, ensuring a win-win outcome for all involved.

United Nations Global Compact

As a participant of the United Nations Global Compact, KOSSAN is committed to upholding its 10 Principles on human rights, labour, environment, and anti-corruption.

SUPPORTING THE UNITED NATIONS

SUSTAINABLE
DEVELOPMENT

We are aligned to the overall
United Nation Sustainable Development Goals,
and our focus areas are SDG Goal 8, 12 and 13

Our Policy and Principles

KOSSAN Sustainability Policy emphasizes the alignment of sustainability goals with our business strategies with a clear objective "Creating Shared Value Through Sustainable Ecosystem". Our sustainable ecosystem comprises of 5 components:

Operations
Efficiency

Continuous improvement and adopt better practices to ensure better result and outcome with zero or minimal negative impact to the environment and social

Optimisation of Technology to Encourage Innnovation

Encourage innovative sustainable solutions

Strong Research & Development

Enhancing our operational methodologies and establish a learning organization

Responsible Corporate Citizen

Do the right thing, for what it is worth, with integrity and high standards

Trustworthy

Instill trust and mutual respect with internal and external stakeholders

Our Twelve (12) Principles form the foundation of the KOSSAN Sustainability Policy, guiding every decision we make and every action we take. They reflect who we are — a company committed to driving sustainable economic growth, environmental stewardship, social well-being, and good governance in every aspect of our business.

We call this – representing our belief that KOSSAN will continue to exist, prosper, and be remembered for the values we’ve created in everyone’s life throughout our journey.


Objective

"Creating shared values through sustainable ecosystem"



Guiding Principles



KOSSAN Sustainability Strategy and Blueprint

Shaping Transformation 2035 ("KSB 2035")

Future-proofing our business and "Creating Sustainable Shared Value" has never been more strategic. The KOSSAN Sustainability Strategy and Blueprint: Shaping Transformation 2035 ("KSB 2035") sets the course for our long-term journey toward responsible and sustainable growth.

Aligned with the United Nations Sustainable Development Goals (UN-SDGs) and built upon our L.I.V.E 12 Principles, KSB 2035 provides a robust strategic framework that:

  • Charts our transition towards sustainable manufacturing
  • Equips us to address EESG (Economic, Environmental, Social, Governance) risks and opportunities
  • Supports resilience, innovation, and long-term economic viability

It is designed to reflect the realities of our business model, geographical footprint, stakeholder concerns, and emerging EESG trends — integrating sustainability into every part of the organisation.

KSB 2035 is structured around four strategic goals supported by key targets that drive accountability, enable consistent progress tracking, and guide our actions toward long-term sustainable growth. Each goal focuses on a specific sustainability priority area, together forming a cohesive triple-bottom-line strategy that balances economic success with environmental stewardship and social responsibility.

Key Targets & Progress

Goal 1

Goal 2

Goal 3

Goal 4


How We Report

Our Sustainability Report aims to provide our stakeholders with targeted, transparent, and integrated communication about sustainable development. The Report is prepared in compliance with paragraph 29, part (a) of appendix 9C of the Main Market Listing Requirements and guided by the Sustainability Reporting Guide and toolkits issued by Bursa Malaysia.

We wish to reiterate that sustainability has always been and will be part and parcel of KOSSAN’s strategy as we strive to create sustainable shared valued for our stakeholders.

Click HERE to view our first independent Sustainability Report 2024

Our Sustainability Report has been prepared in accordance with:

  • Integrated Reporting Framework
  • Bursa Securities Sustainability Reporting Guide
  • Global Reporting Initiatives ("GRI") Standards

Preparation of the Report also in reference to the following:

  • Greenhouse Gas Protocol (GHG Protocol)
  • Carbon Disclosure Project (CDP)

Sustainability Journey

  1. 2025

    Deepening Impact, Elevating Accountability

    • Joined the United Nations Global Compact to reinforce our commitment to responsible business practices.
    • Adopting IFRS S1 (General Requirements) and IFRS S2 (Climate-Related Disclosures) to enhance reporting and align with global ESG regulations and Malaysia’s National Sustainability Reporting Framework (NSRF).
    • Exploring green energy alternatives and implementing energy efficiency measures to advance climate action.
    • Remaining focused on driving progress across the various targets and themes outlined in our Sustainability Blueprint.
    • Investing in internal capacity building and awareness programmes to embed sustainability across all levels of the organisation.
    • Strengthening supplier ESG engagement through the Greening the Value Chain (GVC) programme.
    • Accelerating Scope 3 emissions data collection and calculation to improve supply chain transparency and support decarbonisation efforts.
  2. 2023 - 2024

    Driving Transformation and Business Integration

    • Launched the Kossan Sustainability Strategy & Blueprint to drive EESG efforts for greater impact.
    • Established the KOSSAN Sustainability Centre of Excellence (“KSCE”) to pool expertise across the Group to champion best practices, share strategic insights, address sustainability challenges and capitalise on emerging opportunities.
    • Enhanced our sustainability reporting mechanisms with improved tracking and monitoring processes.
    • Introduced sustainability-related KPIs to incentivise positive impact creation among management-level employees.
    • Reassessed our priorities and refined our approach to align with evolving regulations, stakeholder expectations and key improvement areas.
  3. 2022

    Putting Frameworks and Formal Processes in Place

    • Reviewed and upgraded the KOSSAN Sustainability Policy and Framework
    • Established the KOSSAN Sustainability Committee
    • Identified key focus areas and established sustainability initiatives based on key prioritised areas and periodic reporting
    • Took steps to empower our people and improve our processes on sustainability
    • Established a Group-wide carbon accounting mechanism while enhancing data collection and disclosure of Scope 1, 2 and 3 emissions
  4. 2021

    Building our Capacity

    • Took steps to enhance our data collection and reporting processes, aided by the identification of areas of improvement in our approach to sustainability
    • Started tracking carbon emissions data across select business units and products to enhance our sustainability reporting
  5. 2016 - 2020

    Adopting Compliance-based Reporting

    • Adopted annual sustainability reporting based on Bursa Malaysia’s Sustainability Reporting Guide
    • Engaged an external consultant to create the KOSSAN Sustainability Framework

Sustainability Governance


Awards and Recognition

EcoVadis Gold Medal

CDP Disclosure 2024

Worldwide Responsible Accredited Production (WRAP) Platinum Certification & Gold Certification


Morgan Stanley Capital International (MSCI) ESG Ratings 'A'

The Malaysia Book of Records

FTSE4Good Index Series


Morningstar Sustainalytics
ESG Risk Rating

Green Initiative Award

Amfori Business Social Compliance Initiative (BSCI) Audit


Forest Stewardship Council (FSC)


Events / Happenings

  1. September 25, 2025

    RBA-RGA Outreach Meeting 2025

    (Kuala Lumpur, Malaysia)

  2. October 23, 2023

    The 13th Annual ESG & Sustainability Leadership Series

    (NYSE, New York, U.S.A.)

  3. September 21, 2023

    Responsible Glove Alliance (RGA)

    (Kuala Lumpur, Malaysia)

  4. March 3, 2023

    Greening Value Chain Programme (GVC)

    (Auditorium Sasana Kijang, Bank Negara Malaysia)


Our Sustainability Priorities

We acknowledge that securing long-term sustainability and creating lasting value requires a focused and exceptional approach to managing our Economic, Environmental, Social, and Governance (EESG) priorities.

At KOSSAN, our sustainability efforts are structured around the following core areas:

Pillar 1:
Long Term Value Creation

Pillar 2:
Invest to Green DNA

Pillar 3:
Vibrant Human Capital

Pillar 4:
Excellence Innovation

Key SDG Alignment



Ambition 2035: Building Resilient and Responsible Value Chain

In an increasingly interconnected global economy, we recognise that our business activities carry far-reaching impacts across the entire value chain. At Kossan, we are committed to proactively reducing environmental and social risks while promoting ethical conduct and transparency throughout our operations and partnerships.

KOSSAN’s ambition to build a resilient and responsible value chain reflects our focus on enhancing adaptability, ensuring continuity, and strengthening collaboration. This is essential not only to withstand future disruptions but also to create long-term, sustainable value for our stakeholders.


Our Priorities

Key SDG Alignment



Ambition 2035: Transforming Towards Low Carbon Manufacturing

With the industry progressing and the increasing urgency surrounding environmental concerns, KOSSAN recognize the profound responsibility we have as a global manufacturer to minimize our environmental impact and contribute to the sustainability of our planet.

Our dedication to shifting towards low carbon manufacturing is driven by our distinct goal to produce products and processes that are not only efficient and financially sustainable but also environmentally responsible. The transformation necessitates a thorough re-examination of all elements of our operations, including the sourcing of materials, energy consumption, and waste management. Our goal is to meet the needs of today without compromising the ability of future generations to meet theirs.


Our Priorities

Key SDG Alignment



Ambition 2035: Creating Unified Workplace Culture With Safety, Equality, And Respect

Our people are our most valuable resource, as they are integral to our success and sustainability. Our initiatives shall provide concrete benefits for KOSSAN, positively influencing employee well-being, enhancing productivity, attracting and retaining talent, ensuring compliance with legal requirements, and bolstering our employer branding. To this end, fostering environments that are supportive, inclusive, fair, and, most importantly, secure are key to unified our workplace culture.


Our Priorities

Key SDG Alignment



Ambition 2035: Delivering Quality and Safe Products With Enhanced Circularity

Innovation is a core driver of KOSSAN’s strategy to remain competitive in a rapidly evolving business landscape. Through our commitment to research and development, as well as the integration of digitalisation and emerging technologies, we strive to deliver high-quality, safe products designed with circularity in mind. These efforts support our goal of meeting changing customer expectations, reducing environmental impact, and contributing to a more sustainable future.


Our Priorities