Page 62 - HRC_Annual_Report_2023

60 About HRC Value Creation Management Discussion Leadership
& Analysis

CORPORATE GOVERNANCE OVERVIEW STATEMENT

Hengyuan Refining Company Berhad (Company or HRC) is committed to upholding honesty,
integrity, and fairness in all aspects of its business and operations and ensuring that good corporate
governance is practised as part of building a sustainable and long-term business.

The Company continues to be recognised in the Minority and promoting good corporate governance as part of the
Shareholders Watch Group (MSWG) Corporate Governance fundamental principles of the Company.
Awards 2021 as one of the top 100 companies for corporate The Board of Directors (Board) is pleased to provide an overview
governance disclosure. In December 2023, HRC continued to of the Company’s corporate governance practices during
receive the maximum four (4) stars in Environmental, Social and the financial year ended 31 December 2023 (FY2023),
st
Governance (ESG) ratings, ranking the Company amongst the including key focus areas and future priorities, in accordance with
top 25% public companies listed in the FTSE Bursa Malaysia the Main Market Listing Requirements (MMLR) of Bursa
Emas Index which were assessed by FTSE Russell. Additionally, Malaysia Securities Berhad (Bursa Malaysia) and the Malaysian
HRC was also awarded The Edge Malaysia ESG Award for Most Code on Corporate Governance (MCCG). This statement is to
Consistent Performance Over 5 Years (Gold) in 2023, which be read together with the Company’s Corporate Governance
remarked the Company’s commitment to ESG principles and Report 2023, providing details on the application of the
sustainability, as well as its consistent performance over 5 years. Practices set out in the MCCG during FY2023 and explanations
These achievements were accorded to the Company based for any departures from the recommended Practices. These are
on public information and disclosures in the financial year published on the Company’s website at www.hrc.com.my.
ended 2023. HRC shall continue its efforts in practising

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS

I. Board Responsibilities
The primary role of the Board is to represent, promote and protect the interests of the Company, including its shareholders and
stakeholders. To effectively discharge the Board’s functions and responsibilities, certain powers are delegated to the Management
and the following Board Committees:

i. Board Audit Committee (BAC); iv. Board Projects Review Committee (BPRC);
ii. Board Nominating and Remuneration Committee (BNRC); v. Board Tender Committee (BTC); and
iii. Board Risk Management Committee (BRMC); vi. Board Whistleblowing Committee (BWC).

Amongst others, the Board assumes the following responsibilities:

No Principal Responsibilities Explanation and updates for FY2023
i. Together with senior The Company has a full set of governance controls, policies and procedures, including
management, promote good HRC’s General Business Principles, Code of Conduct, Anti-Bribery and Corruption
corporate governance culture Policy, Anti-Bribery & Corruption and Anti-Money Laundering Manual, Manual of
within the Company which Authorities, Directors’ Fit & Proper Policy, a control framework and approval checks
reinforces ethical, prudent at various levels to instil good corporate governance practices within the Company.
and professional behaviour
ii. Reviewing and adopting a On 28 November 2023, the Board reviewed and approved the 2024 Business Plan
th
strategic plan for the Company comprising (i) Purpose, Vision, Mission, and Values; (ii) Business Strategy (iii) Financial,
Headcount and 2024 scorecard presented by the Management, setting out the
Company’s strategy to achieve both short-term and long-term value creation.
Operational Excellence Framework was implemented in tandem with building
capabilities, leadership support and programme stewardship. The areas of focus
included People, Personal and Process Safety, Asset Reliability, Major Projects and ESG.