Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Community Development
• Sustainable Development
• People Management
• Change Management and Communication Plan

Environmental Achievements

• 108,225 trees planted since 2011, of which 21,623 are IUCN Red List Trees
• 38,452 tCO2-e carbon emissions
• 8,959.88 tCO2-e carbon sequestered
• 612,830 m3 water used
• 3,980 tonnes of solid waste (non-hazardous) generated
• Restated carbon emissions baseline
• Restated waste intensity baseline
• Restated water intensity baseline
• 39.4 tonnes of community recyclables
• Completed construction of the Elmina Rainforest Knowledge Centre and Endangered, Rare and Threatened Native Tree Nursery in the City of Elmina

Social Achievements

• 43 CSR programmes undertaken in 2020 with the help of 264 volunteers from Sime Darby Property who clocked 700.5 volunteer hours
• RM2.5 million worth of charitable contributions
• Approximately RM1.0 million channelled to COVID-19 relief efforts by the Group
• 42 percent of our workforce and 22 percent of the Board are represented by women
• Enhanced talent management via 200 learning and development programmes for employees
• Launched Jalinan Nurani, a digital platform that allows employees and their families to care for their mental, physical and financial well-being
• Employee Solidarity Programme 2020, providing wellness assistance to employees via financial and other means
• Sime Darby Property and UNICEF sign an MoU to develop Malaysia’s first Inclusive Playground in the City of Elmina

Governance Achievements

• Re-included as a constituent in the Dow Jones Sustainability Index.
• Included as a constituent in the FTSE4Good Index Series (FTSE4Good BURSA, FTSE4Good Emerging Market and FTSE4Good Asean 5) by FTSE Russell for the third consecutive year
• Awarded the 2019 ASEAN Corporate Governance Scorecard Award under the ASEAN Asset Class category
• Recognised at the National Annual Corporate Report Awards (NACRA) and the Annual Reports Competition (ARC) International Awards
• Sime Darby Property becomes the only local property developer to be rated by the Carbon Disclosure Project (CDP)

Climate Goals & Targets

Environmental Challenges

• Challenging global and local market conditions mainly due to the COVID-19 outbreak, prolonged recessionary phase of property sector, dampened consumer and business sentiment
• Tightening financial requirements, rising operating costs as well as more rebates and discounts given to clear unsold inventories continue to compress our margins and yield thinner profit
• Intensified competition in the absence of a strong push factor to reduce high supply in property thus prolonging overhang issues
• The need to continuously identify the right products at the right locations and price points to bridge the gap between market demand and supply
• The need to expand recurring income business to diversify and rebalance the Group’s portfolio
• The continuous exploration for strategic partnerships or joint ventures to leverage on their expertise and resources to maximise returns

Mitigation Strategies

• Continuously assessed and realigned strategy to market conditions and requirements
• Closely monitored performance across core business units, including active cash management and maintaining the funding facilities
• Launched products such as landed properties within the affordable to medium price range in established townships where the underlying demand is still strong
• Market intelligence on product and service offerings for similar/ comparable developments to support product viability prior to launch
• Introduced sales campaigns with innovative packages for new products
• Leveraged on the Home Ownership Campaign to increase sales of new products and reduce unsold stocks
• Leveraged on technology to conduct online sales campaign during the MCO/CMCO/RMCO periods
• Continued to provide affordable housing design and packages
• Continued tactical price review for unsold stocks, where required.
• Expanding the Group’s portfolio, particularly by growing recurring income business, accelerating new growth areas, transforming complementary businesses to value-added core property development business, increasing efforts to monetise low-yielding investment assets and enhancing our cost and operational efficiencies
• Conducted thorough analysis to replan launches and revisit pricing of new product launches and completed unsold units, and reduced misalignment with market needs and preferences amid the challenging environment
• Tapped into the Government’s initiatives to accelerate sales performance
• Strategic review of joint ventures and rebalancing of the investment asset portfolio to enhance their value proposition and contribution to the Group
• Strategic review of landbank to unlock value

Supply Chain Management

Responsible Procurement

• Vendor Code of Business Conduct

Climate-Related Risks & Opportunities

Physical Risks

• water security issues like water scarcity, unpredictable rainfall and/or flood events
• Negative effects on the environment and ecosystems due to externalities from the Group’s operations and supply chain activities

Opportunities

• rainwater harvesting, adoption of wetland spaces and dense planting, which contribute to environmental education, community inclusion and opportunities for urban reforestation research and development

Reporting Standards

Frameworks Used: International Integrated Reporting Council

Certifications: ISO 14000, ISO 45001:2018, ISO 50001:2018

Sustainable Products & Innovation

• multi-generational homes
• assisted-living facilities
• age-in-place homes
• smart green homes

Awards & Recognition

• Platinum in Property Development Category at Putra Brand Awards 2020
• 9th Top 10 Developers Awards at the BCI Asia 2020
• The Edge Top Property Developers Awards
• FIABCI World Prix d'Excellence Awards
• The StarProperty Awards
• Malaysia Landscape Architecture Awards
• Construction Quality Excellence Awards
• International Annual Report Competition (ARC) Awards
• National Annual Corporate Reports Awards (NACRA)
• ASEAN Corporate Governance Scorecard Award
• The Legal 500 GC Powerlist Southeast Asia In-house Legal Team 2020
• Community CSR Award of the year at the iProperty Development Excellence Awards 2020
• Gold Winner in Retail Category at the 29th FIABCI World Prix d’Excellence Awards for Melawati Mall
• Top 100 Platinum Golf and Country Club 2020-2021
• Global Golf Awards 2020/2021 for Best Golf Course in Asia Pacific – Second Runner Up
• SIRIM QAS International for International Standard Organisation (ISO) 45001:2018, on Occupational Health and Safety Management Systems (OHS)
• SIRIM QAS International for ISO 50001:2018 on Energy Management System Compliance
• ParGolf People’s Choice Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Urban Biodiversity
• Community Experience
• Energy Transition
• Corporate Governance
• Data Privacy & Cybersecurity
• Occupational Health and Safety
• Diversity and Inclusion
• Responsible Supply Chain Management
• Circularity
• Water Management
• Anti-Bribery and Corruption

Environmental Achievements

• 3.81% reduction in operational carbon emissions compared to 2022
• 18.23% reduction in potable water usage compared to 2022
• 24.86% waste diverted from landfill in 2023
• 26,085 Red List species trees planted (52.17% of target)
• 143,679 trees planted (89.7% of target)
• Established the Elmina Rainforest Knowledge Centre (ERKC)
• Elmina Central Park certified as a Level II arboretum
• Developed 180 acres of recreational wetlands in Bandar Bukit Raja
• Secured 53 acres of forest for KL East Park

Social Achievements

• 25 community programmes implemented
• 2,941 volunteer hours clocked in
• 3,437 safety training hours achieved
• 54 TVET graduates sponsored
• RM9.5 million in donations to more than 50 organisations, impacting 68,377 beneficiaries
• 36% of women hold senior management positions

Governance Achievements

• Established the Board Sustainability Committee (BSC)
• Implemented mandatory anti-corruption training for 84.5% of employees
• Zero substantiated reports of corruption
• 31 security training and awareness sessions implemented
• 36% of Board members are women
• Executive Compensation Linked To ESG: Yes

Climate Goals & Targets

Environmental Challenges

• High construction costs
• Lack of competent contractors
• Lack of technical knowledge coupled with implementation challenges on sustainability practices
• Securing early appointment of contractors as well as retaining them with SDP.
• Labour supply
• Heightened demand for suppliers/contractors in the market
• Potential impact and the need to mitigate flood risk exposure to our asset
• Achievability of our carbon roadmap
• Risk of shortage of water on our operations

Mitigation Strategies

• Implementing new contracting model – buy forward option and cost-led procurement
• Strategic sourcing initiatives - focus on local procurement
• Conduct dialogues, workshops with industry experts, knowledge sharing sessions and on-site learning activities.
• Enforce Vendor Code of Business Conduct to align with Sime Darby Property’s supply chain aspirations.
• Adopt best practices in managing sustainable development within the supply chain.
• Engage vendors on eco-efficiency programme and facilitate improved data collection.
• Implementing adaptation and/or mitigation measures to reduce the risk exposure arising from climate risk assessment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Business Conduct
• Vendor Integrity Pledge
• Strategic sourcing initiatives focusing on local procurement
• Early appointment of contractors
• Training programmes and workshops on OSHCIM awareness, sustainability awareness, carbon management and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Landslide
• Drought
• Extreme weather events

Transition Risks

• Changing regulations
• Market dynamics related to green building standards and carbon pricing
• Technological advancements

Opportunities

• Development of energy-efficient products and services
• Green financing
• Investment in eco-friendly technologies

Reporting Standards

Frameworks Used: Bursa Malaysia’s Main Market Listing Requirements on Sustainability Reporting, Bursa Malaysia’s Sustainability Reporting Guide (3rd Edition), Global Reporting Initiative (“GRI”) Sustainability Reporting Standards, The United Nations Sustainable Development Goals (“UN SDGs”), Task Force on Climate-related Financial Disclosures (“TCFD”) Recommendations

Certifications: Audubon Cooperative Sanctuary Certified Golf Course, Green Building Index Gold Certification

Third-party Assurance: PricewaterhouseCoopers PLT; Group Corporate Assurance Department

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15

The report details how Sime Darby Property's initiatives contribute to these goals.

Sustainable Products & Innovation

• Energy-efficient homes
• Manufactured homes
• Rooftop solar PV panels
• Automated Waste Collection System

Awards & Recognition

• FIABCI Malaysia Property Award (Environmental Category)
• Talentbank Graduates’ Choice Award 2023
• FIABCI World Gold Award (Master Plan)
• HR Asia's Best Companies to Work For in Asia Award 2023
• Green Building Index Gold Certification
• ArbNet Arboretum Level II Certification