GSS Energy conducts operations in the precision engineering and the electric vehicle (EV) business with a non-operational interest in the oil & gas services business. Since 1980, its precision engineering division under its wholly-owned subsidiary Giken Sakata (S) has established itself as an integrated contract manufacturer provider supplying the consumer electronics, healthcare/medical, gaming, safety equipment, industrial equipment and automotive industries. In the EV business, the group has invested in a Thailand subsidiary, Edison Motors Co and in partnership with ISO, an established Italian brand, has developed its first model of electric motorcycle, UNO-X.
1. Can you share about the group’s sustainability approach and how has it been integrated into the business operations?
We have anchored our sustainability approach to the United Nations’ Sustainable Development Goals (SDGs). At the core, the approach is segmented into five distinct yet interconnected pillars: social, customer experience, environmental, governance and economic.
The social pillar directly influences the group’s day-to-day operations by providing a nurturing environment for employees. This includes health and safety measures, employee development programmes, and a strong stance on non-discrimination and diversity, to ensure a productive and harmonious workplace.
The environmental facet sees GSS Energy 41F embed water and waste management initiatives into daily operations, coupled with energy conservation strategies and measures to combat climate change.
The governance and economic pillars shape operational decision-making. A stringent governance framework ensures that operations are transparent and ethical, while a focus on sustainable business performance balances both growth and sustainability.
See also: OEL Holdings enters the medtech sector
2. How has the EV segment changed the industry and operations for GSS Energy?
In recent years, we have expanded into the EV segment with electric motorcycles manufactured by subsidiary Giken Mobility. This has reshaped the industry dynamics for GSS Energy, aligning with the global transition towards environmentally friendlier modes of transportation and positioning the group at the forefront of sustainable solutions.
See also: Japfa focuses on feeding emerging Asia
Operationally, the EV foray has introduced significant changes for GSS Energy, including the shift towards sourcing materials such as tyres, motors, batteries and other specialised spare parts, aside from primarily sourced materials including rubber, steel and carbon. This has led to new strategic partnerships and the potential adaptation of existing ones with partners.
Furthermore, GSS Energy’s customer demographics have expanded. Beyond the traditional precision engineering clientele, we now cater to individual and corporate customers keen on sustainable transportation options, allowing the business to diversify and expand revenue streams.
Lastly, the expansion into the EV sector has allowed GSS Energy to venture into a new segment — battery packing. With the establishment of a battery-packing line in Batam specifically for electric motorcycles, we have further diversified our product offerings, enabling the group to play a crucial role in the electrification of transportation.
3. How is the board committee involved in ensuring sustainability goals are met?
The board serves as the strategic anchor, advising and overseeing the development of the group’s sustainability strategy, which is spearheaded by the sustainability committee that includes senior management from various support units led by the chief financial officer. Three main focuses for the group are:
Strategic formulation — The board is at the helm of the group’s long-term strategic direction, integrating sustainability issues directly into the strategic formulation, and ensuring that the group remains aligned with the evolving sustainability landscape.
Determining and overseeing sustainability factors — The board has a decisive role in identifying the “sustainability factors” which are critical areas where the group needs to focus its sustainability efforts. Once these factors are determined, the board continues to actively oversee the management and monitoring of these factors to ensure that the set objectives are being met.
For more stories about where money flows, click here for Capital Section
Institutionalising sustainability through policy — To ensure a systematic approach towards sustainability, the board has established a sustainability policy (SR policy). This policy provides a roadmap for the group, detailing sustainability strategies, reporting structures, materiality assessment, and the processes for identifying and monitoring the sustainability factors.
4. GSS Energy has recorded a product reject rate of 0.1% in FY2022, what are its goals for FY2023 and how does the company plan on achieving these goals?
For FY2023, GSS Energy has outlined clear goals and plans emphasizing quality, environmental conservation and waste management. In terms of quality and product reject rate, we reported a 0.1% rate in FY2022 and are determined to either maintain or improve this metric. We plan to achieve this by bolstering our quality management system, ensuring employee familiarity with quality benchmarks through regular training, obtaining certifications such as ISO 9001:2015, ISO 13485:2016, and IATF 16949:2016, and actively using customer feedback for continual enhancements.
Environmentally, our focus spans water and energy conservation, as well as waste management. In FY2022, GSS Energy decreased water consumption to 58,160 cubic metres from 65,195 cubic metres in the previous year and would like to continue to do so. We also concentrate on energy conservation and climate change by utilising cleaner energy. Our major energy source is electricity, and to offset this, we have initiated the use of solar panels at our China subsidiary, CGP. In FY2022, we purchased about 18.9 million kWh of electricity but also produced 333,917 kWh from our solar installations, leading to indirect GHG emissions of 14,290 tonnes CO2e.
5. What internationally recognised accreditations did GSS Energy attain in the previous year and can you elaborate?
GSS Energy attained the following internationally recognised accreditations in the previous year:
ISO 9001:2015 — This certification specifies requirements for a quality management system. It emphasises the need for organisations to consistently provide products and services that meet customer expectations and adhere to applicable statutory and regulatory requirements.
ISO 13485:2016 — This certification focuses on quality management systems specifically for the medical devices sector. It signifies that an organisation can provide medical devices and related services that consistently comply with customer and regulatory requirements.
IATF 16949:2016 — This is the International Standard for Automotive Quality Management Systems. This accreditation underscores the emphasis on a process-oriented quality management system that aims for continual improvement. It focuses on defect prevention, reduction of variation and waste in the supply chain, ensuring that customer requirements from the automotive sector are met efficiently and effectively.
Emelia Tan is director, research at the the Singapore Exchange S68
