At DCH, sustainable business practices are built into the core of our daily business because we believe stewardship of our communities and environment is fundamental to long term success. As a responsible and caring company, we protect future performance by guarding against risk, preparing for tomorrow’s markets and building positive relationships with business partners, communities and the public.
Acting responsibly is central to our strategic and operational decision-making, and we are proud to align the interest of all our stakeholders to achieve our dream of a better living for all.
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As a leading trading and distribution company with over 70 years history, Dah Chong Hong is deeply committed to the highest standards of corporate governance as well as environmental and social responsibility. The Company’s sustainability policy is driven by our core values to deliver quality products and professional service to our stakeholders. For more information on DCH corporate responsibility initiatives, including environmental and social performance indicators, please review our Environmental, Social and Governance report.
To enhance the efficiency and effectiveness of ESG supervision, management and decision-making, the Group has established an integrated sustainability governance framework. Through this framework, the Board regularly reviews ESG performance and relates measures and policies to ensure their effectiveness and alignment with the Group’s strategic goals. A monitoring and continuous improvement mechanism is also in place to enhance the overall ESG management across the Group.
The setting of ESG objectives, initiatives and targets is based on the Group’s business operations, legal and regulatory requirements, relevant social context and public expectations. Progress is reviewed regularly by both the Board and the ESG Working Group to ensure implementation remains on track.
The Group’s climate-related matters are overseen within its existing ESG governance framework. The Board holds ultimate responsibility for climate strategy formulation and oversight, supported by the ESG Working Group, which regularly assesses climate-related risks and coordinates with business units and departments. BUs are tasked with implementation of climate-related measures under the guidance of the Board and the ESG Working Group.
A vibrant natural environment has a long-term impact on sustainability of our business operations. We have established the Code of Practice on Workplace and Environmental Protection and Energy Conservation to provide guidance on recycling, waste minimisation and encouraging energy conservation in our offices.
The Group strictly complies with all applicable environmental laws and regulations and takes appropriate measures to meet local legal requirements. An Environmental Policy was formulated during the reporting period and has been incorporated into the Environmental Management System (EMS) at the Group’s headquarters.
To ensure ongoing compliance and performance, we conduct regular environmental inspections across our facilities, including Motor Service Centres, Food Processing Factories, Logistics Centres, Warehouses, Repair Services Centres, and Showrooms. In 2024, inspections assessed chemical waste storage procedures, on-site noise levels, resource consumption (electricity, water, paper, and more), and other operational environmental impacts. We also completed an energy audit in 2023 to identify opportunities for improving energy performance.
The Group aligns with the Task Force on Climate Related Financial Disclosures (TCFD) framework to disclose climate-related governance, strategy, risk management, and metrics and targets. For further details, please refer to our latest ESG report.
The Group is committed to fair, safe, and respectful labor practices across all operations. Our labor practices program establishes clear policies, processes, and monitoring to ensure compliance with applicable laws and alignment with international best practices. We maintain structured frameworks to ensure employees receive adequate wages that meet or exceed statutory requirements and recognized living cost benchmarks in our operating locations. Working hours are actively monitored, including overtime management, to protect employee wellbeing and comply with legal requirements and internal standards; overtime worked is recorded and compensated in accordance with local regulations and company policies.
We regularly engage with workers’ representatives and employee forums on topics such as working conditions, compensation, safety and health, and work–life balance, and we use the outcomes of these engagements to inform continuous improvement actions. We also track and encourage the utilization of paid annual leave entitlements to support rest and recovery, with line managers responsible for proactive scheduling and HR oversight to prevent leave accumulation.
We are committed to protecting labour rights of our employees and have zero tolerance for use of child labour and forced labour. When we come across an instance of employment of a child or of forced labour, we promptly suspend the individual involved and strictly comply with laws and regulations in handling and investigating the matter to ensure that such violations are effectively curbed and not repeated.
The Group has implemented a comprehensive safety management system that aligns with regulatory standards for factories and industrial operations. Each business unit has a safety management system designed to address its specific operational risks. This system includes safety policies, procedures and a safety committee for regular review and improvements.
To assess and enhance safety and occupational health performance, the Group closely monitors key safety indicators, including the Lost Time Injury Frequency Rate (LTIFR). Between 2021 and 2024, the LTIFR remained at a low and stable level, reflecting the effectiveness of the Group’s proactive safety management and preventive measures.
The Group continues to promote a strong safety culture through regular safety inspections, training, competition and emergency drills to ensure employees’ well-being and to prevent workplace accidents. Moving forward, the Group will strengthen data monitoring and analysis to identify potential risks, implement corrective actions, and strive for continuous improvement in safety performance.
DCH is committed to safeguarding the confidentiality, integrity and availability of information assets across the Group. We adopt internationally recognised frameworks and standards for information security governance, including the ISO 27001 Information Security Management System (“ISMS”), to align with international standards and best practices.
DCH implements the ISO 27001 ISMS control sets, including organisation, people, physical and technology controls, established policies, under which we are committed to protecting information and enhancing our information security postures.
DCH maintains a comprehensive product quality management framework to ensure our products consistently meet regulatory requirements, customer expectations, and internal standards across all business units. Our approach is anchored in a documented Quality Management System (QMS) that defines clear processes, roles, and performance metrics throughout the product lifecycle—from supplier qualification and inbound inspection to storage, handling, distribution, and customer feedback management. We conduct regular internal audits of the QMS to assess effectiveness, identify improvement opportunities, and verify adherence to procedures.
To provide independent assurance of our quality practices, relevant operations undergo external verification and certification against internationally recognized standards, including ISO 9001, conducted by accredited third-party auditors. DCH Auriga and DCH Logistics have obtained ISO 9001:2015 Quality Management System certification. Certification scopes are aligned to the specific activities and locations of our business units, and surveillance audits are performed at defined intervals to confirm ongoing compliance. Our people are central to product quality, and we deliver structured training to employees and contractors on their QMS-related roles and responsibilities, including onboarding, periodic refreshers, and role-specific instruction for functions such as procurement, warehousing, operations, and customer service.
We also maintain documented procedures for change control, non-conformance management, supplier quality management, and customer complaint handling, ensuring issues are captured, investigated, and resolved in a traceable and timely manner. Performance is reviewed by management at regular intervals, using audit results, key quality indicators, customer feedback, and certification outcomes to inform decisions and drive continuous improvement.
