Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Successfully conducted internal and external surveillance audits to ensure compliance with ISO 14001:2004 environmental guidelines.
• Formed Sinar Kamiri Sdn. Bhd. to develop a 49MW solar photovoltaic facility, recognized by RAM with a Tier-1 Environmental Benefit.
• Achieved 5 Stars CIDB Shassic Score in building and infrastructure developments (MRT V3, RAPID Warehouse and RAPID Workers’ Village).
• Implemented modular construction system in RAPID Worker’s Village to reduce material waste.
• Implemented green building features (rainwater harvesting, solar panels, sensor lights) in commercial buildings.

Social Achievements

• Organized technical and vocational workshops for 106 contractors and subcontractors.
• Implemented staggered and flexible worktime arrangements for employees who are primary caregivers.
• Introduced paternity leave of 2 days.
• Maintained staff absenteeism rate at less than 3%.
• Invested approximately quarter of a million on staff training and development initiatives (30% more than 2016).
• 10% of employees contributed an average of 7 volunteer hours to support old-age homes and orphanages.
• Contributed to rebuilding Orang Asli village infrastructure in Royal Belum in partnership with MBAM.
• Organized Hari Raya Celebration for children from Rumah Kesayangan orphanage.

Governance Achievements

• Adherence to principles of good governance, guided by internal policies and regulatory requirements.
• ISO 9001:2008, OHSAS 18001:2007, and ISO 14001:2004 certifications.
• Successful internal and external surveillance audits.
• Implementation of Mudajaya’s Whistle-blowing Policy.

Climate Goals & Targets

Environmental Challenges

• Early stages of sustainability reporting and streamlining internal processes for improved reporting.
• Need to better understand stakeholder expectations and mitigate EES concerns.

Mitigation Strategies

• Developing a 3-year sustainability roadmap (2018-2020) with policy interventions, focus areas, and program implementation recommendations.
• Institutionalizing a framework and processes to embed sustainable practices organization-wide.
• Defining KPIs for the Sustainability function with a clear tracking and reporting mechanism.

Supply Chain Management

Supplier Audits: 80% of supply chain vendors vetted for quality and lead time in 2017.

Responsible Procurement

• Supplier Code of Conduct
• Responsible procurement and supplier assessment considering quality and lead time.
• Prioritizing business opportunities for domestic suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia’s Listing Requirement Guidelines and Reporting Framework

Certifications: ISO 9001:2008, OHSAS 18001:2007, ISO 14001:2004

Awards & Recognition

• Anugerah Kecermelangan Industri Pembinaan Malaysia (MCIEA) IBS Award from CIDB for Pengerang Workers’ Village project.

Environmental Metrics

ESG Focus Areas

• Talent Retention & Attraction
• Service Quality
• Governance
• Ethical Supply Chain
• Community Welfare & Well-being
• Technology, Data Security & Privacy
• Customer Health & Safety
• Product Innovation

Environmental Achievements

• 49MW large scale solar PV facility in Perak projected to save approximately 50,000 metric tonnes of carbon dioxide (CO2) emission every year
• Menara Mudajaya outfitted with rooftop solar panels (reducing CO2 emissions by approximately 5 tonnes per year) and a rainwater harvesting system (potential annual waterbill saving of over RM9,000 a year)

Social Achievements

• 5 Million Manhours without any lost time injury (“LTI”) for work on the Pan Borneo Highway in Sibu, Sarawak
• MRT V207 project received a Gold Class 2 Award in Occupational Safety & Health by Malaysian Society for Occupational Safety & Health (“MSOSH”)
• Organised several different events for the local communities in areas where we operate
• Provided opportunities for our staff to volunteer their time in carrying out meaningful activities
• 149 training programmes conducted, clocking over 1,781 hours of training for employees

Governance Achievements

• Revamped Anti-Bribery Policy Statement with a zero-tolerance approach to all instances of bribery and corruption
• Established an independent Integrity Unit
• Attained ISO 37001: 2016 Anti-Bribery Management System (“ABMS”) certification

Climate Goals & Targets

Environmental Challenges

• Financial Cyclical downturn, seamless project funding, diminishing margins and price volatility
• Market Lumpy order books due to large number of major local infrastructure jobs, fluctuating market & demand cycles, obsolete pricing models
• Development Strategy Long gestation/development periods, inability to solve problems with regards of rapid change in consumers’ behaviour
• Talent and Resource Management Weak performance of contractors, shortage of skilled labours and inability to attract talents with advanced skills
• Project Development & Execution Project delays, projects are not within the expected quality, cost overruns, inaccurate method of technology deployment, collection problems and contractual disputes
• Environmental, Safety & Health Accidents, transportation damages and faulty equipment
• Utilities & Supply Shortage of materials, inadequate resources, complex procurement procedures

Mitigation Strategies

• Diversify income source; Develop recurring income stream; Strengthen cordial business relationships with bankers
• Be selective on project bidding; Diversify portfolio to cater to different consumer segments and markets; Maintain effective credit control policy
• Anticipate extraneous factors such as the mid & long-term market & regulatory risks; Deliver positive impacts of projects in terms of social, economic & environmental equity created; Limit overreliance on a single project or client by diversifying risks and creating a more balanced portfolio of project
• Invest in the growth, learning and development of teams; Strengthen management and leadership capability; Organise internal & external upskilling and reskilling programmes in keeping with business priorities; Build on employee value propositions to emerge as an employer of choice
• Closely monitor projects and land holdings; Optimise performance; Carefully inspect work sites and project requirements; Conduct stringent quality control during production process; Keep a close tab on internal controls & compliance mechanisms
• Operate with a set of stringent guidelines and minimum requirements for occupational health & safety management
• Create a resource allocation strategy; Make a list of long-term quality suppliers

Supply Chain Management

Responsible Procurement

• Centralised procurement system; Approved SOPs that are in compliance with ISO standards; Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy sector opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council

Certifications: ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007, ISO 37001:2016

Sustainable Products & Innovation

• Rainwater harvesting features, rooftop solar panels, sensor lights and taps, and charging stations for electric vehicles in property projects

Awards & Recognition

• Focused Recognition Award for good performance from Petronas
• IFAWPCA Silver Medal for Civil Engineering Construction
• Anugerah Kecemerlangan Industri Pembinaan Malaysia (“MCIEA”)
• Anugerah IBS from Lembaga Pembangunan Industri Pembinaan Malaysia (“CIDB”)

Environmental Metrics

ESG Focus Areas

• Talent Retention & Attraction
• Service Quality
• Governance
• Ethical Supply Chain
• Community Welfare & Well-being
• Technology, Data Security & Privacy
• Customer Health & Safety
• Product Innovation

Environmental Achievements

• Produced approximately 100Gwh of clean and renewable energy and Eliminated over 55,000 metric ton of CO2 per annum
• Menara Mudajaya was outfitted with rooftop solar panels and a rainwater harvesting system, reducing CO2 emissions by approximately 5 tonnes per year and saving over RM9,000 a year on water bills.
• Achieved five (5) million manhours without any lost time injury (“LTI”) for work on the Pan Borneo Highway in Sibu, Sarawak.

Social Achievements

• Awarded a Gold Class 2 Award in Occupational Safety & Health by Malaysian Society for Occupational Safety & Health (“MSOSH”) and achieved five (5) million manhours without any lost time injury (“LTI”) for work on the Pan Borneo Highway in Sibu, Sarawak.
• Provided SAFE AND CLEAN-LIVING QUARTERS, POTABLE WATER, BASIC AMENITIES for more than 2,479 labourers of the LRT3 Project.
• No staff retrenchment or salary cuts during the pandemic.
• Introduced flexible work options, remote connectivity, online technology support, and safety equipment.
• Provided assistance to local communities, including donations to frontliners, schools, and flood victims.

Governance Achievements

• Awarded the UKAS Management System ISO37001:2016 Anti-Bribery Management Systems certification.
• Implemented a revamped Anti-Bribery Policy Statement with a zero-tolerance approach to bribery and corruption.
• Established an independent Integrity Unit to prevent, monitor, and minimize bribery and corruption risks.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing disruptions to global economies and business operations.
• Impacts or delays to corporate plans due to the pandemic.
• Shortage of workers and tightening of Act 446 for workers' accommodations.
• Limited tender opportunities.
• Sluggish property market and slower economic growth.
• Recapitalisation exercise derailed by the pandemic.
• Legacy issues related to asset disposal and litigation.

Mitigation Strategies

• Swift response to the health crisis, ensuring the health and safety of the workforce.
• Agile response to the crisis, maintaining productivity and performance.
• Implementation of various government economic stimulus packages.
• Introduction of the National COVID-19 Immunisation Programme.
• Diversification and refocusing of efforts and investments on self-financed projects.
• Securing a 30 MW renewable energy project.
• Successful completion of the Restructuring Programme for the Indian power asset.
• Shift to digital/online solutions in the property sector.
• Focus on clearing the stockpile of over RM60 million.
• Revival of recapitalisation plan.

Supply Chain Management

Supplier Audits: Performance Reviews (Half-yearly); Procurement Processes (Half-yearly); Pre-Q exercise for potential suppliers; reassessment every 6 months.

Responsible Procurement

• Centralised procurement system with approved SOPs compliant with ISO standards.
• Supplier Code of Conduct.
• Supplier selection considering price, experience, expertise, resources, and financial position.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Expansion in renewable energy sector

Reporting Standards

Frameworks Used: GRI Standards, IIRC, MCCG 2017, Bursa Malaysia Securities Berhad’s Main Market Listing Requirements and their Sustainability Guidelines

Certifications: ISO 37001:2016, ISO 45001:2018, ISO 14001:2015, ISO 9001:2015

Awards & Recognition

• Focused Recognition Award from Petronas
• IFAWPCA Silver Medal
• Anugerah Kecemerlangan Industri Pembinaan Malaysia (“MCIEA”)
• Anugerah IBS from Lembaga Pembangunan Industri Pembinaan Malaysia (“CIDB”)
• Gold Class 2 Award in Occupational Safety & Health by MSOSH

Environmental Metrics

ESG Focus Areas

• Ethical Supply Chain
• Governance
• Service Quality
• Product Innovation
• Labour Practices/Standards & Human Rights
• Technology, Data Security & Privacy
• Community Welfare & Well-being
• Customer Health & Safety
• Talent Retention & Attraction
• Energy Management
• Climate Change & GHG Emissions
• Anti-Fraud, Bribery & Corruption

Environmental Achievements

• Produced more than 90 GWh of clean and renewable energy and eliminated approximately 55,000 tons of CO2 per annum from solar PV plants.
• Rainwater harvesting in Menara Mudajaya collected approximately 11,000 liters of rainwater per day, saving over RM9,000 per year.
• Recycle bins placed at project sites and Menara Mudajaya for waste management.

Social Achievements

• Awarded 5-STAR in the safety and health assessment system in construction from CIDB Malaysia.
• Donated 11 computers to two schools in Perak.
• Conducted 167 training programmes with approximately 1,530 training hours for employees.
• Maintained LTIFR of less than 1 for each project and achieved a 5-Star rating for CIDB’s SHASSIC assessment.

Governance Achievements

• First construction company in Malaysia certified for the ISO 37001:2016 Anti-Bribery Management System (ABMS), with accreditation from UKAS.
• Successfully completed the acquisition of Real Jade Limited.

Climate Goals & Targets

Environmental Challenges

• Labour shortage and elevated material cost in the construction industry.
• Shortage of labour, rising cost of building materials and over-supply of commercial office space and residential units in the property industry.
• Lower irradiation resulting in lower energy generation in solar PV plants.
• Strict Covid lockdowns in China impacting cement plant operations.

Mitigation Strategies

• Strategic thrust towards renewable energy, tighter controls on overhead spending, initiatives to reduce debt and improve working capital.
• Acquisition of Real Jade Ltd. to mitigate pandemic impact and expand businesses in China.
• Diversifying business portfolio and securing more infrastructure development work.
• Adapting to market changes by changing target audience and offering innovative marketing packages (Rent-To-Buy, fully furnished units, etc.).
• Strengthened balance sheet to enable acquisition of more landbank.

Supply Chain Management

Supplier Audits: Supplier performance reviewed every 6 months (including ABMS Compliance)

Responsible Procurement

• Centralised procurement system with approved SOPs compliant with ISO standards.
• Supplier Code of Conduct.
• Anti-Corruption Obligation imposed on all suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Flood
• Rising temperatures/extreme weather

Transition Risks

• Policy and regulatory changes
• Legal liabilities
• Obsolescence of higher emission technologies
• Market shifts
• Reputational risks

Opportunities

• Resources efficiency
• Products and services
• Resilience
• Energy source
• Market valuation

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia’s Sustainability Reporting Guide 3rd Edition, TCFD

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 37001:2016

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 13
• Goal 15

Initiatives contribute to these goals through renewable energy projects, local economy promotion, sustainable urbanisation, climate action, and biodiversity conservation.

Awards & Recognition

• Sustainable Development Award for Affordable and Clean Energy from JCI Malaysia

Environmental Metrics

ESG Focus Areas

• Corporate Governance and Anti-Corruption
• Regulatory Compliance
• Technology, Data Security and Privacy
• Supply Chain Management
• Product Quality and Innovation
• Energy, Emissions and Climate Resilience
• Material Consumption
• Waste and Effluent Management
• Water Consumption
• Occupational Health and Safety
• Human Rights, Labour Practices and Standards
• Talent Attraction and Development
• Diversity and Inclusion
• Community Engagement

Environmental Achievements

• 8.2% reduction in Scope 1 GHG emissions
• 2.5% reduction in water consumption across all operations
• 99.22% of procurement expenditure allocated to local suppliers
• Installation of solar panels at Menara Mudajaya and solar-powered equipment at LRT3 project site

Social Achievements

• Zero fatal injuries recorded
• Zero cases of human rights violation, discrimination and harassment
• 1,074 total training hours (3.64 hours per employee)
• Various community engagement programs (cleanups, donations, etc.)

Governance Achievements

• Achieved ISO 37001:2016 Anti-Bribery Management System Certification
• Zero cases of bribery and corruption
• Zero breaches in data privacy and cybersecurity

Climate Goals & Targets

Environmental Challenges

• Transition risks (regulatory changes, market shifts)
• Physical risks (extreme weather, flooding, rising temperatures)
• Increased cost from internal temperature control
• Project cost challenges due to low-carbon compliance and rising material costs
• Stakeholder concerns related to carbon-intensive practices

Mitigation Strategies

• Implementing flood prevention measures and disaster recovery plans
• Investing in employee health and safety programs and training
• Implementing climate-resilient workplace practices and passive cooling building designs
• Tracking GHG emissions and setting emissions reduction targets and initiatives
• Utilizing low-emissions construction materials and precast manufacturing
• Increasing the use of renewable energy systems
• Implementing IBS systems in construction to reduce cost and waste
• Enhancing property value through carbon reduction features

Supply Chain Management

Supplier Audits: Bi-annual performance reviews

Responsible Procurement

• Supplier Code of Conduct
• Procurement and Supplier Assessment Policy

Climate-Related Risks & Opportunities

Physical Risks

• Property damage and loss due to flooding and landslides
• Rising temperatures and extreme weather increasing health risks
• Increased cost from internal temperature control

Transition Risks

• Policy and legal changes (GHG emission reduction policies, carbon taxation)
• Legal liabilities related to pollution and emissions
• Technology transition (obsolescence of high-emission technologies)
• Project cost challenges due to low-carbon compliance and rising material costs
• Stakeholder concerns related to carbon-intensive practices

Opportunities

• Implementing flood prevention measures
• Developing disaster recovery plans
• Investing in employee health and safety programmes
• Implementing climate-resilient workplace practices
• Passive cooling building designs
• Tracking GHG emissions and setting emissions reduction targets
• Utilizing low-emissions construction materials
• Increasing the use of renewable energy systems
• Implementing IBS systems
• Enhancing property value through carbon reduction features

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia’s Main Market Listing Requirements, Sustainability Reporting Guide (3rd edition), Illustrative Sustainability Reporting Guide, UN SDGs

Certifications: ISO 37001:2016 (Anti-Bribery Management System), ISO 45001:2018 (OHS Management System), ISO 14001:2015 (Environmental Management System), ISO 9001 (Quality Management System)

Third-party Assurance: Internal due diligence

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 16: Peace, Justice and Strong Institutions

Initiatives aligned with these SDGs are detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Sustainable Development Award for Affordable and Clean Energy (2022)
• CIDB Excellence Award on Safety and Health, Environment and Quality (2023)
• MBAM Platinum Service Award (2023)