Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Governance
• Community Engagement
• Environmental Responsibility
• Employee Well-being

Environmental Achievements

• Reduced water consumption by almost 40%
• Reduced direct GHG emissions (from company-owned vehicles) by 18% compared to 2017
• Reduced other indirect GHG emissions (from air travel) by 20% compared to the previous year
• Aurora Melbourne Central has 784 bicycle spaces
• Aspira Gardens in Gerbang Nusajaya uses solar-powered street lighting and solar panel ready homes

Social Achievements

• Participated in Home Ownership Campaign (HOC) 2019, contributing to 43% of sales
• Launched 11 BukuHubs in sales galleries, retail spaces, schools, and affordable housing areas
• Invested RM8 million in CSR and community initiatives
• 9,917 training hours for employees
• Achieved 75% in annual Customer Satisfaction Survey
• Zero fatalities and one Lost Time Injury recorded at project sites in 2019
• Completed and handed over 1,109 units of affordable housing (Rumah Mampu Biaya Johor) and 108 affordable shops in Denai Nusantara

Governance Achievements

• Held inaugural UEM Sunrise Integrity Day
• Launched UEM Sunrise’s Integrity and Anti-Corruption Plan
• Launched revised Code of Conduct and a new Code of Conduct for Business Partners
• Established Integrity & Governance Unit
• Named winner of the Industry Excellence Award for Property at the Minority Shareholder Watch Group (MSWG) – ASEAN Corporate Governance 2018 Awards

Climate Goals & Targets

Environmental Challenges

• Challenging operating environment with moderate economic growth in Malaysia and globally
• Kuala Lumpur Property Index declined by 36% year-on-year
• Soft market sentiment caused by slower economic growth and uncertainty
• Supply overhangs in the property market
• Lacklustre domestic business environment and poor consumer sentiment
• Volatile global geopolitical and economic environment
• COVID-19 pandemic dampening economic growth

Mitigation Strategies

• Strong performance with revenue up 42% to RM2.9 billion in FY2019
• Successful inventory monetisation, reducing inventories by 21% in FY2019
• Divestment of non-strategic lands and assets
• Land portfolio rebalancing
• Expanding use of digital technology and establishing strategic partnerships
• Implementing the New Operating Model to transform UEM Sunrise
• Focusing on delivering projects through digital platforms and online channels
• Strategic divestments and inventory monetisation programmes
• Earmarking several assets for disposals

Supply Chain Management

Supplier Audits: 99.9% of suppliers are Malaysian (excluding international projects)

Responsible Procurement

• Stringent procurement policies and rigorous quality assurance and safety assessments
• Require all vendors to submit a Letter of Declaration pledging commitment to adhere to UEM Sunrise’s Code of Conduct for Business Partners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC)

Certifications: ISO 14001:2015, OHSAS 18001:2007 (to be upgraded to ISO 45001:2018), MS 1722:2011, ISO 9001:2015, ISO/IEC 20000-1:2011

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16

The report maps 11 of the 17 UN SDGs to its corporate strategy and business operations

Sustainable Products & Innovation

• Aspira Gardens with solar-powered street lighting and solar panel ready homes
• Aurora Melbourne Central with 784 bicycle spaces

Awards & Recognition

• Ranked 5th in The Edge Property Excellence Awards 2019
• Acknowledged for Highest Growth in Profit After Tax Over 3 Years at The Edge Billion Ringgit Club 2019 Awards
• Industry Excellence Award for Property at the Minority Shareholder Watch Group (MSWG) – ASEAN Corporate Governance 2018 Awards

Environmental Metrics

ESG Focus Areas

• Economic Value Creation
• Environment
• Community
• Human Rights and Labour Compliance Standards
• Valuing Our People
• Product Responsibility

Environmental Achievements

• Five projects achieved Green Building certifications in 2020 (one Green RE Gold, one Green RE Silver, and three Green RE Bronze).
• Installed a fabric bank recycling bin and an e-waste bin at Publika Shopping Gallery.
• Significant reduction in CO2 emissions due to movement restrictions and work-from-home initiatives.

Social Achievements

• Launched the Highly Immersive Programme in three PINTAR adopted schools, benefiting 180 students and 18 teachers.
• Launched the 11th BukuHub at Sekolah Menengah Kebangsaan Medini.
• Partnered with Foodbank Victoria to create Melbourne’s first International Student Pop-Up Grocery Store.
• Donated approximately RM270,000 to combat COVID-19.
• Held the #CaringIsMyHappy Unity Virtual Run.
• Distributed Bahagia Kits to underprivileged families during Ramadan.

Governance Achievements

• Board approved a Corruption Risk Assessment covering all nine divisions of the company.
• No major disciplinary cases on corruption practices reported.
• Received zero fines and penalties related to corruption.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused uncertainty and challenges to the property market, including decline in home seekers, interrupted supply chains, and project delays.
• Movement Control Order (MCO) restrictions impacted project completion and sales.

Mitigation Strategies

• Centralized focus on efficiency and change to respond to COVID-19 and prepare for permanent industry changes.
• Increased digitization and virtual interaction with customers.
• Continued to support physical project launches with digital channels and online platforms.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritising local suppliers (more than 95% locally-based)
• Screening vendors according to social and environmental criteria
• Requiring suppliers to adhere to UEM Sunrise Supplier Principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Bursa Malaysia’s Sustainability Reporting Guidelines, Global Reporting Initiative Standards, FTSE4Good Bursa Malaysia Index, UN SDGs

Certifications: ISO 9001:2015, OHSAS 18001:2007, ISO 14001:2015, MS 1722:2011, ISO/IEC 20000-1:2011

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green buildings
• Rainwater harvesting systems
• Solar-powered street lanterns
• Water-saving wares and fittings

Awards & Recognition

• Gold award at the CX Asia Excellence Awards 2020 for the ‘Best Customer Experience Team’
• Malaysia’s CXP Best Customer Experience Awards 2020
• StarProperty Awards 2020
• ASEAN Property Developer Awards 2019/2020
• The Edge Malaysia Top Property Developers Awards 2020
• Putra Brand Awards 2020
• EdgeProp Malaysia’s Best Managed and Sustainable Property Awards

Environmental Metrics

ESG Focus Areas

• Liveability
• Affordability
• Sustainability
• Resilience
• Carbon Neutrality 2050

Environmental Achievements

• Reduced energy consumption across operations by incorporating energy-saving designs.
• Zero significant fines or non-monetary sanctions on non-environmental compliance.

Social Achievements

• Donated 100 PCs to 10 PINTAR-adopted schools in Iskandar Puteri, Johor.
• Distributed essential provisions to 1,000 individuals and families impacted by the pandemic.
• Extended outreach efforts to Melbourne, Australia, providing food to international students.

Governance Achievements

• Remained a constituent of the FTSE4 Good Bursa Malaysia Index.
• Received a gold assessment on the Sustainability Sukuk Framework from MARC.
• Won the Highly Commended Award at the Sustainable Business Awards, Malaysia 2020/21.
• Won the Minority Shareholders Watch Group (MSWG)-ASEAN Corporate Governance Award 2020.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions to markets, supply chains, and economic recovery.
• Resurgence of COVID-19 variants leading to lockdowns and restrictions.
• Subdued market environment affecting planned recovery and performance.
• Rising construction costs and materials.
• Possible interest rate hike by the central bank.

Mitigation Strategies

• Accelerated sales initiatives, capitalising on low interest rates and HOC incentives.
• Focused on building deeper connections with customers using digital capabilities.
• Re-evaluated and reshaped growth strategy based on changing consumer requirements.
• Implemented cost optimisation initiatives to strengthen financial performance.
• Divested non-strategic lands and underperforming assets.
• Established a new SUKUK programme for green and social projects.
• Introduced various targeted marketing campaigns.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Business Partners
• QHSE assessment of vendors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: IIRC, GRI Standards: Core Option, Bursa Malaysia’s Sustainability Reporting Guidelines, FTSE4Good Bursa Malaysia Index, UN SDGs, UNGC

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, ISO/IEC 20000-1:2011

Sustainable Products & Innovation

• Aspira Gardens (solar panels, solar-powered street lighting)
• KAIA Heights (GreenRE compliant)

Awards & Recognition

• Highly Commended Award (Sustainable Business Awards, Malaysia 2020/21)
• Industry Excellence Award (MSWG-ASEAN Corporate Governance Award 2020)
• Platinum accolade (Putra Brand Awards 2021)

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Prioritise local suppliers in our procurement process, where possible, who demonstrate genuine commitment to sustainability and transparency.

Climate-Related Risks & Opportunities