Sunway REIT
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:138,632 tCO2e (FP2021), 96,974 tCO2e (CY2021)
Renewable Energy Share:1.34% (FP2021), 1.38% (CY2021)
Total Energy Consumption:176,871 MWh (FP2021), 124,716 MWh (CY2021)
Water Consumption:2,448,981 m3 (FP2021), 1,606,078 m3 (CY2021)
Waste Generated:11,633 tons (FP2021), 7,429 tons (CY2021)
Carbon Intensity:0.15 tonnes CO2e/m2 (FP2021)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Achieved a 6% waste diversion from landfills in FP2021 and 5% in CY2021.
- Generated 3,094 MWh of electricity from renewable energy sources in FP2021 and 2,240 MWh in CY2021.
- Avoided 2,561 tonnes of CO2e emissions in FP2021 and 2,013 tonnes in CY2021.
- Three buildings certified green in 2021.
- Implemented Sunway Smart Parking System, eliminating 3.52 million parking tickets and avoiding 282 kg of paper.
Social Achievements
- Established a Sustainability Policy and a Donations, Sponsorships and Corporate Responsibility Policy.
- Formed an Occupational, Health, Safety and Environment (OHSE) Committee at the business segment level.
- Reached out to underprivileged communities through various programs, including providing rental-free spaces as vaccination centers.
- Sunway Malls won the Leadership Award from the Forest Stewardship Council Asia Pacific.
Governance Achievements
- Established a Sustainability Committee comprising Board Members for oversight of sustainability matters.
- Became an official supporter of the Task Force on Climate-Related Financial Disclosures (TCFD).
- First Malaysian REIT to venture into sustainability-linked bonds.
- Zero reported incidences of corruption.
Climate Goals & Targets
Long-term Goals:
- Net Zero Carbon Emissions by 2050.
Medium-term Goals:
- At least 25% of electricity from renewable energy sources by 2030.
- 40% waste diverted from landfill by 2030.
Short-term Goals:
- Average 4% annual reduction in Building Energy Intensity (BEI) from 2022 to 2030.
Environmental Challenges
- Climate change related physical risks (flooding, increased rainfall intensity) and transition risks (regulatory changes, carbon tax).
- Water disruptions impacting business operations.
- Waste management challenges.
- Cybersecurity threats.
Mitigation Strategies
- Appointed the Jeffrey Sachs Center on Sustainable Development (JSC) to conduct a Value at Risk (VaR) assessment of properties.
- Implemented water crisis SOPs in all REIT-managed properties.
- Implemented a six-level waste management hierarchy, including food composting.
- Established an Internal Carbon Pricing framework.
- Implemented a robust Group-wide governance infrastructure for cybersecurity and data governance, complying with ISO 27001:2013.
Supply Chain Management
Supplier Audits: 100% of suppliers completed environmental and social risk assessment (starting July 2021)
Responsible Procurement
- Sustainable Procurement Policy
- Supplier Code of Conduct
- Supplier Environmental and Social Risk Assessment
Climate-Related Risks & Opportunities
Physical Risks
- Sea level rise
- Increased rainfall intensity
- Flooding
Transition Risks
- Regulatory changes (carbon tax)
Opportunities
- Development of energy-efficient products and renewable energy sources.
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ISO 27001:2013
UN Sustainable Development Goals
- All 17 UN SDGs
Sustainability practices embedded in value creation journey and supported by sustainability framework in accordance with the 17 UN SDGs.
Awards & Recognition
- Gold Award for Environmental, Social and Governance at The Asset ESG Corporate Awards 2019
- First runner-up at Anugerah Inovasi Negeri Selangor (AINS) 2021 for Sunway Smart Parking System
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:124,574 tCO2e/year (Scope 1, 2, and 3)
Scope 1 Emissions:+63 tonnes
Scope 2 Emissions:+19,371 tonnes
Scope 3 Emissions:+105,395 tonnes
Renewable Energy Share:1.39% of total energy use
Total Energy Consumption:175,195 MWh/year
Water Consumption:2,266,304 m3/year
Waste Generated:10,966 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Diversity & Inclusion
- Governance
- Community Inclusivity
Environmental Achievements
- 3,008 MWh of renewable energy generated
- 2,154 tonnes of CO2e emissions avoided in 2022
- 4% of waste diverted from landfills
- Implemented Green Lease Partnership Programme
- Eliminated the use of single-use plastics by phases in hotels (680,000 pieces eliminated)
Social Achievements
- Rolled out Universal Accessibility Policy
- 43% female representation on the Board of Directors
- Maintained zero fatalities
- Various community enrichment projects undertaken
- Employee Engagement Survey conducted and initiatives implemented based on feedback (Staggered Work Hours, Work from Anywhere, No Meetings after 6pm)
Governance Achievements
- Integrated sustainability into Senior Management’s performance evaluation and KPIs linked to remuneration
- Established internal carbon pricing framework at RM15 per tonne of CO2e emitted
- Appointed Jeffery Sachs Center on Sustainable Development (JSC) to quantify climate Value at Risk (VaR)
- Disclosed climate report aligned with TCFD recommendations
- Updated the VaR to include transitional financial risks and opportunities
Climate Goals & Targets
Long-term Goals:
- Net Zero Carbon Emissions by 2050
Medium-term Goals:
- Reduce residual emissions by 45% by 2030
- Achieve 40% electricity from renewable energy sources by 2030
- Divert 40% waste from landfills by 2030
- 100% tenant participation in Sunway Green Lease Partnership Programme
Short-term Goals:
- Not disclosed
Environmental Challenges
- Increased rainfall intensity and landslides (physical climate risks)
- Transition risks from climate-related issues (policy, legal, technology, market, reputation)
- Scope 3 emissions from tenants
- Water disruptions from municipal supply
Mitigation Strategies
- Implemented Sunway Green Lease Partnership Programme to work with tenants to reduce Scope 1 and 2 GHG emissions
- Established internal carbon pricing framework
- Appointed JSC to quantify climate VaR and recommend mitigation steps
- Submitted climate change and water security report to CDP
- Implemented water crisis SOPs in all REIT-managed properties
- Water treatment plant investment
- Water-efficient fittings installation
- Alternative water sources utilization (lake water, rainwater)
Supply Chain Management
Supplier Audits: 80% of new suppliers completed the supplier environmental and social risk assessment in 2022
Responsible Procurement
- Supplier Code of Conduct
- Sustainable Procurement Policy
- Supplier Environmental and Social Risk Assessment
Climate-Related Risks & Opportunities
Physical Risks
- Increased rainfall intensity
- Flash floods
- Water seepage
- Landslides
- Sea level rise
Transition Risks
- Carbon tax
- Regulatory changes
- Market shifts
- Reputational risks
Opportunities
- Cost savings from operating efficient green buildings
- Market leadership in providing green property assets
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ISO 27001:2013 (Sunway Digital Hub)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 2: Zero Hunger
- SDG 4: Quality Education
- SDG 7: Affordable and Clean Energy
- SDG 10: Reduced Inequalities
- SDG 11: Sustainable Cities and Communities
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
Various initiatives described in the report contribute to these SDGs.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- FTSE4Good Bursa Malaysia Index constituent for 7 consecutive years
- Three awards at the 40th Malaysian Society for Occupational Safety and Health (MSOSH) Awards (Sunway Malls)
- Seven International Customer Experience (CX) Awards and Overall Winner (Sunway Malls)