Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social

Environmental Achievements

• Achieved 0 major incidents in our projects
• Recorded up to 82 species of birds visiting the parks and lakes in some of our Eco-series projects
• Planted 20,000 food and nectar plants and propagated 1,000 plants for butterflies living in some of our Eco-series projects
• Recorded up to 27 species of fishes in some of our Eco-series projects
• Strive to allocate more than 10% Green Areas in our projects

Social Achievements

• Held 127 community programmes
• Provided 74,937 training hours to develop and upskill our people
• 43% female employees are employed in S P Setia Berhad
• Disbursed RM13.90 million in our S P Setia Foundation since 2014 for the #StandTogether campaign and Setia Caring School Programme

Governance Achievements

• Establishment of sustainability objectives, policies and strategies
• Conduct materiality assessment
• Formulation of sustainability action plans
• Formalisation of governance structure
• Prioritisation of sustainability matters
• Monitor action plan implementation status
• Identification of stakeholders
• Development of sustainability indicators and targets
• Track KPI and targets

Climate Goals & Targets

Environmental Challenges

• Changing customer requirement and increasing regulatory requirement has made the property industry a challenging one.
• Natural resources are finite, and the availability and rising costs of these resources (e.g. building materials) have significant impact on a developer’s bottom line and financial performance.
• The safety, health and wellness of employees and contractors’ workers may affect work performance and productivity. As most activities at construction sites and managed buildings are carried out by third parties, the appointed contractors are also exposed to workplace health and safety risk if the management of contractors is not sufficiently stringent.
• Delivery of quality products and services directly affects customer satisfaction, corporate reputation and sales.
• Failure to meet legal obligation and contractual responsibility to ensure the safety of the occupant at the residential, office and commercial developments could lead to reputational and financial losses.
• Continuous engagement with the local communities provides a platform for S P Setia Berhad to achieve high quality, efficient and collaborative care that extends beyond its customers.
• The building sector has strong environmental impact and is heavily reliant on natural resources for its operations. Climate-related litigation, new policies and more stringent regulations such as carbon pricing, water tariffs hike and stricter building standards are expected. Rising energy cost and carbon pricing will pose challenges to maintain profitability and sustained growth.
• Failure to comply environmental regulation on conserving forest and habitat can lead to consequence of reputation and ability to achieve business operation. A township that integrates green initiatives bodes well for the customers as there are increasing awareness on longer-term sustainability and environmental concerns.
• Talent development opportunities are provided to groom our employees to be the future leaders of S P Setia Berhad and part of our succession planning. The outflow of talent will impact on S P Setia Berhad’s human resources, operational efficiency and sustained growth.

Mitigation Strategies

• We strive to find a balance between creating value for our customers and achieving financial results to meet the benefits of our stakeholders especially shareholders and investors.
• We were the first property developer in Malaysia to obtain the Chain of Custody (“COC”) certification issued by the Malaysian Timber Certification Scheme (“MTCS”) since 2017. In addition, almost 100% of our purchases were sourced locally and a very minimal amount of purchases was sourced from overseas supplier. Nonetheless, purchases are made through local agents, wherever possible.
• The safety and wellbeing of our people is our priority and we place great emphasis on strong health and safety standards being maintained across the Group, both in our offices and at project sites. Various programmes are in place to ensure conducive and safe workplace such as establishment of Group Safety Committee, OSHAS 18001 compliant, implementation of Quality Excellence Award Programme (“QEAP”), continuous Health, Safety and Environment (“HSE”) awareness and trainings, and provision of adequate employee medical benefits and insurance. Through our continuous and relentless safety efforts, we achieved ZERO Lost Time Incident (“LTI”) major incidents.
• Our quality commitments are demonstrated through the maintaining of the ISO 9001 accreditation, our QEAP, In-process Construction Quality (“ICQ”) Assessment and Construction Performance Assessment (“CPA”). During the year, our overall property development projects have exceeded the targeted score of 75%, with ICQ score at 81% and CPA score at 79% respectively.
• Providing a safe and secure environment for our customers is our top-most priority. We have assigned auxiliary police force and security guards for our townships, sales gallery and convention centres. We had also constructed and installed integrated perimeter fencing security and tight security system within our projects to enhance the security monitoring.
• As a responsible corporate citizen, we have established S P Setia Foundation since 2000 with the aim of helping underprivileged individuals and charitable bodies. Since then, we have provided and disbursed more than RM74.3 million in its area of interest i.e. education, general welfare and medical assistance. This is achieved via its two core programmes i.e. #StandTogether Campaign and Setia Caring School Programme.
• Environmental concerns are centric in all our property development projects. Green design such as efficiency use of energy and water are considered throughout the project lifecycle from design, planning to construction. Our initiatives are guided by S P Setia Berhad’s Group Environmental Management System which has been certified ISO 14001:2004, resulting in S P Setia Berhad garnering various green building awards and certification for a number of our projects.
• Our eco-philosophy DNA safeguards environmental protection and advocates green initiatives to preserve the biodiversity and ecosystem. This is particularly evident in our Eco-Series projects such as Setia Eco Glades, Setia Eco Park and Setia Eco Templer. We collaborated with various environmental associations and interest groups such as the Forest Research Institute Malaysia (“FRIM”), Malaysian Nature Society (“MNS”), Zoo Negara and Penang Butterfly Farm, to conduct an analysis of the biodiversity landscape in the selected project locations.
• Diversity and inclusion form the essence of Team Setia. We also put emphasis on workplace and employee benefits, talent development and various engagement activities.

Supply Chain Management

Responsible Procurement

• Structured pre-qualification assessment for vendors and suppliers, service level agreements, annual performance evaluations.
• Almost 100% of purchases sourced locally.

Climate-Related Risks & Opportunities

Physical Risks

• Severe storms, extreme temperatures, rising sea levels and/or drought

Transition Risks

• Increasing cost of property insurance, energy, water, and business continuity risk.

Reporting Standards

Frameworks Used: GRI, UNSDG, GRESB

Certifications: ISO 14001:2004, OHSAS 18001:2017, ISO 9001

Awards & Recognition

• The Edge Top Property Developer Awards (top spot)
• FIABCI Malaysia Property Awards (12th time winner)
• FIABCI World Prix d’Excellence Award (11th time winner)
• Malaysia Landscape Architecture Awards
• StarProperty.my Property Award
• BCI Asia Awards 2019 Top 10 Developers (Malaysia) Awards

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption by 20% compared to 2019.
• Achieved zero major incidents related to environmental compliance.
• Launched D’Network, the world’s first solar-powered hybrid F&B hub.

Social Achievements

• Maintained single-digit employee turnover rate (6.66%).
• Achieved 81% employee engagement score.
• Contributed RM2.45 million to the community through the S P Setia Foundation.
• Launched the #StandTogether anti-bullying campaign.
• Implemented various COVID-19 response initiatives for employees and communities.

Governance Achievements

• Established and implemented various policies and procedures to promote integrity and good governance, in line with Section 17A of Malaysian Anti-Corruption Commission (Amendment) Act 2018.
• Established the Integrity & Governance Unit and appointed a Certified Integrity Officer.
• Conducted corruption risk assessments and awareness sessions.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and resulting Movement Control Orders (MCOs) affecting business operations.
• Softer property market due to the pandemic.
• Maintaining profitability and sustained growth amidst rising energy costs and potential carbon pricing.

Mitigation Strategies

• Implemented extensive pandemic response plan and established Setia Pandemic Taskforce.
• Implemented cost optimization initiatives and deferred non-critical capital investments.
• Provided donations and relief to employees, workers, and stakeholders.
• Embarked on digital transformation to improve productivity and flexibility.
• Implemented green design and energy-efficient measures in projects.

Supply Chain Management

Responsible Procurement

• Close working relationship with suppliers, vendors and business associates.

Climate-Related Risks & Opportunities

Transition Risks

• Climate-related litigation, new policies and more stringent regulations such as carbon pricing, water tariffs hike and stricter building standards are expected. Rising energy cost and carbon pricing will pose challenges to maintain profitability and sustained growth.

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UN SDGs, GRESB, Bursa Securities' Sustainability Reporting Guide

Certifications: ISO 14001:2004, ISO 9001

Third-party Assurance: Messrs. Ernst & Young PLT

Sustainable Products & Innovation

• D’Network solar-powered hybrid F&B hub
• Projects with green design and energy-efficient features

Awards & Recognition

• FIABCI World Prix d’Excellence 2020 Gold Award (KL Eco City)
• The EdgeProp Malaysia’s Best Managed Property Awards 2020 Gold Award (Setia EcoHill 2’s Adventure Park)