Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Workplace
• Community
• Marketplace

Environmental Achievements

• Malayan Cement Berhad (MCB) further reduced its emissions intensity from 0.663 to 0.654 tCO2 per tonne cementitious product in FY2024.
• YTL PowerSeraya will invest more than SGD5 million to increase the solar power generated at its Pulau Seraya Power Station in Singapore to 5 Megawatt-peak (MWp), up from the existing 1 MWp.
• Wessex Water generated 17 GWh of renewable energy and exported nine million cubic metres of biomethane to the gas grid, double the volume of natural gas the company consumed themselves.
• MCB processed over three million tonnes of industrial, commercial, and agricultural waste for use as alternative materials in the last three years.
• 89% of waste was successfully diverted from disposal across YTL Group.

Social Achievements

• YTL Construction achieved 28 million safe man-hours for the Gemas-Johor Bahru Electrified Double Track Project, setting a national record for rail construction safety in Malaysia.
• Geneco SG, YTL PowerSeraya’s retail brand, won 12 awards at the Loyalty Engagement Awards 2024.
• YTL PowerSeraya received four Tripartite Standards recognitions for its practices in Recruitment, Flexible Work Arrangements, Employment of Term Contract Employees and Age-Friendly Workplace Practices.
• YTL Group invested more than MYR37 million in various community and education initiatives, positively impacting over 300,000 lives.

Governance Achievements

• YTL Corporation Berhad has been included for the eighth consecutive year as a constituent of the FTSE4Good Bursa Malaysia (“F4GBM”) Index, and YTLPI is now also a constituent of the same index.
• YTL PowerSeraya introduced a Supplier Code of Conduct to integrate ESG criteria into supplier management, and enhance transparency in their supply chains.
• Zero cases of bribery and corruption reported.

Climate Goals & Targets

Environmental Challenges

• Increased severity and frequency of extreme weather events may damage physical assets, disrupt business operations and increase capital, operational and supply chain costs.
• Stricter regulations might disrupt business operations.
• Increased costs, asset stranding, market volatility, credit risks, higher insurance costs and investor pressure.
• Shift in consumer behaviour and investor preference for more sustainable businesses.
• Resource scarcity and the potential for conflict exacerbated by extreme weather events and geopolitical tensions.
• Integrity and quality concerns, liquidity and dated vintages affecting the credibility of carbon markets.

Mitigation Strategies

• Improve operational resilience by ensuring spare capacity, regular maintenance and adopting new technologies.
• Develop and invest in low emission and/or renewable technologies.
• Explore viable new green business lines, including incorporation of potential climate-related financial risk management into investment decisions.
• Efficient resource management through conserving biodiversity, improving energy efficiency, prioritising sustainable water use and responsible waste management.
• Procuring high-quality eligible international carbon credits to complement investments in energy efficiency and low-carbon power technologies.
• Developing a decarbonisation strategy to meet long, medium and short-term greenhouse gas reduction targets.

Supply Chain Management

Supplier Audits: 95% of expenditure on local suppliers

Responsible Procurement

• Supplier Code of Conduct (YTL PowerSeraya)
• Sustainable Procurement Policy (MCB)

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events, including floods and heatwaves

Transition Risks

• Stricter regulations, compliance requirements, new legislation and disclosure mandates

Opportunities

• Development and expansion of green business lines through R&D and innovation
• Availability of attractive sustainability-linked financing options from banks or lenders

Reporting Standards

Frameworks Used: GRI, GHG Protocol, FTSE4Good Bursa Malaysia Index, UN SDGs

Certifications: ISO 14001 (YTL PowerSeraya, Wessex Water, MCB cement plants)

Third-party Assurance: No third-party assurance

UN Sustainable Development Goals

• Various UN SDGs (aligned with the four pillars)

The report details how initiatives contribute to various UN SDGs.

Sustainable Products & Innovation

• ECO product range (MCB)
• Hydrogen-ready combined cycle gas turbine unit (YTL PowerSeraya)

Awards & Recognition

• FTSE4Good Bursa Malaysia Index constituent (YTL Corp & YTLPI)
• Various awards for YTL Corp, YTL Foundation, YTL Construction, YTL Communications, YTL Developments UK, YTL PowerSeraya, and Wessex Water (detailed in the report)

Environmental Metrics

ESG Focus Areas

• Climate & energy
• Water efficiency
• Resource management
• Biodiversity
• Employee well-being
• Customer satisfaction
• Community development
• Ethical business & compliance
• Financial sustainability
• Cybersecurity & data protection
• Governance & transparency
• Anti-bribery & corruption
• Ethical supply chain

Environmental Achievements

• GHG intensity remained stable (Scope 1 & 2 emissions)
• Wessex Water generated 17 GWh of renewable energy and exported 9 million cubic metres of biomethane to the gas grid
• YTL PowerSeraya invested S$5m to increase solar power generation capacity to 5 MWp (from 1 MWp)
• YTL PowerSeraya achieved an absolute reduction in direct emissions of about 41% from 2010 levels.

Social Achievements

• Inclusion in FTSE4Good Bursa Malaysia Index
• National Transition Leadership Award 2024
• Global Economic & Strategic Outlook Form Highest Returns to Shareholders over 3 Years
• 4 Tripartite Standards recognitions from Tripartite Alliance for Fair and Progressive Employment Practices
• YTL Developments UK Property Business South West Business Masters 2023 Regeneration Scheme of the Year
• Wessex Water received a four-star rating on environmental performance, the highest rating possible.

Governance Achievements

• YTL PowerSeraya Awarded Energy Market Authority’s inaugural request-for-proposal to build, own & operate 600 MW hydrogen-ready CCGT
• Zero tolerance for workplace accidents
• 2 million lost-time injury-free hours Hinkley Point C site, Turnbull Infrastructure & Utilities Ltd

Climate Goals & Targets

Environmental Challenges

• Ongoing efforts to improve processes to track and gather environmental data and standardize data collected over different countries and industries.
• Supply chain disruptions due to extreme weather events
• Regulatory and policy risks related to climate change
• Financial risks associated with compliance with new regulations and adoption of new technologies
• Reputational risks due to shifts in consumer behavior and investor preferences
• Inadequate focus on talent retention
• Unsafe workplaces
• Poor customer service
• Loss of relevant market share
• Regulatory fines and loss of investor confidence

Mitigation Strategies

• Significant investment (£150 million) to address storm overflows in Wessex Water’s operating region
• Investment in low-emission and renewable technologies (600 MW hydrogen-ready power plant in Singapore, solar power facility)
• Improved energy, water, and waste efficiency
• Exploration of viable new green business lines
• Improved operational resilience through spare capacity management and asset maintenance
• Investment in human resources, including upskilling and reskilling programs
• Improved safety-related reporting, training, and health and safety campaigns
• Prioritization of local community hiring
• Implementation of integrity pledge and dedicated ongoing employee training programs on anti-corruption and cybersecurity
• Prioritization of implementation of fair and responsible supply chains and procurement processes
• Robust financial performance and strong governance

Supply Chain Management

Supplier Audits: 98% of operations assessed for corruption-related risks

Responsible Procurement

• YTL PowerSeraya’s Supplier Code of Conduct
• Wessex Water’s Business Ethics Policy and Modern Slavery and Human Trafficking Statement

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity & frequency of extreme weather events
• Longer-term shifts in temperature & precipitation patterns

Transition Risks

• Regulatory & policy risks (higher carbon price, carbon taxes, new legislation)
• Financial risks (compliance with new regulations, R&D costs)
• Reputational risks (shift in consumer behavior and investor preference)

Opportunities

• Investment in innovative technologies and solutions
• Improved energy, water, and waste efficiency
• Leveraging new and cleaner technologies
• ESG-linked lending options
• Development of low-emission and renewable technologies
• Exploration of viable new green business lines

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, GHG Protocol, UN SDGs, FTSE4Good Bursa Malaysia Index assessment methodology, Bursa Securities’ Sustainability Reporting Guide and Corporate Governance Guide, Malaysian Code on Corporate Governance

Certifications: ISO9001, ISO14001, ISO27001, ISO45001, BizSafe Star, SS 651

Third-party Assurance: No third-party assurance

UN Sustainable Development Goals

• 6, 7, 12, 13, 14, 15, 3, 4, 5, 8, 9, 10, 11, 17

The YTL Power Group’s value creation is intrinsically linked to its ESG strategy, risks and opportunities, and its alignment with the relevant UN SDGs.

Sustainable Products & Innovation

• Hydrogen-ready power plant
• Solar power facility

Awards & Recognition

• FTSE4Good Bursa Malaysia Index Inclusion
• National Transition Leadership Award 2024
• The Edge Billion Ringgit Club Awards 2024
• Wessex Group President’s Award Royal Society for the Prevention of Accidents
• Customer Service Excellence Award & British Standard for Inclusive Service Provision
• South West Business Masters 2023 Regeneration Scheme of the Year
• British Home Awards 2023