Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Industry Division recorded a 13% increase in total carbon reduction from the previous year, with the biggest reduction seen in Scope 1 (39%) and Scope 3 (56%).
• Rooftop solar PV systems installed at Industry Division factories avoided 5,758 tonnes of CO2 emissions since FY2017.
• Port Division purchased four hybrid RTG cranes, resulting in 60% fuel savings.
• Toll Division saw a total reduction of 6,643 tCO2e due to LED installation.
• Nine Property Division projects (each >50 hectares) performed EIAs and complied with requirements on water quality, silt trap discharge, and air, noise, and vibration levels.
• Industry Division implemented dust control measures (sprinkler system, road spraying, dust barriers) and hydroseeding.

Social Achievements

• Property Division organized Spring Cleaning and Recycling Day at Seremban 2.
• Plantation Division hosted Human-Elephant Conflict meetings.
• Property Division honored Seberang Perai City Council's elevation to city status through a tree planting program (5,555 saplings).

Governance Achievements

• IJM sits on the committee developing CIDB’s Sustainable Infrastructure Rating Tool.
• IJM sponsored the World Class Sustainable Cities Conference 2019.

Climate Goals & Targets

Environmental Challenges

• Increased carbon emissions in the Plantation Division (7% increase to 231,679 tCO2e) due to increased POME generation.
• Flash floods around highways due to heavy downpours and surrounding developments.
• Non-compliance with environmental laws and regulations relating to storage of scheduled wastes (Construction and Industry Divisions).

Mitigation Strategies

• Plantation Division implemented reduction strategies (detailed in IJM Plantations Berhad’s Annual Report 2020).
• Toll Division implemented measures to minimize flash flood impact (coordination with neighboring developments, cleaning, desilting, drainage upgrades, retention sumps).
• Toll Division implemented countermeasures to eliminate slope failure risk (hydroseeding, vibromat protection, gabion, sheet piles).
• Improved waste management practices and stricter adherence to regulations.

Supply Chain Management

Responsible Procurement

• Commitment to source raw materials responsibly from reliable vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Improving energy efficiency
• Using renewable energy

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, TCFD

Certifications: ISO 14001:2015

UN Sustainable Development Goals

• SDG 6
• SDG 9
• SDG 13

Awards & Recognition

• Silver Award at the Malaysia Green Highway Index (MyGHI) 2018

Environmental Metrics

ESG Focus Areas

• Marketplace
• Environment
• Workplace
• Community

Environmental Achievements

• Increased renewable energy generation capacity to 4,121 kWp and generated 3,107 MWh of electricity from solar panels.
• Avoided 2,561 tCO2e of carbon emissions from renewable energy generation and waste recycling.
• Recycled a total of 5,859 tonnes of waste.
• Utilized 5,108 m3 of rainwater.

Social Achievements

• Launched the Employee Wellness Resource Centre.
• Achieved zero fatality cases at all site operations.
• Spent RM702,624 on training programs with over 28,000 training hours.
• Provided RM380,000 in cash aid to employees.

Governance Achievements

• Became a participant of the UN Global Compact.
• Established dedicated task forces to support the development and implementation of IJM’s Climate Strategy and Sustainability Roadmap.
• Zero confirmed incidences of corruption and monetary losses arising from legal proceedings associated with charges of bribery or corruption.

Climate Goals & Targets

Environmental Challenges

• Unusual weather patterns impacting infrastructure and communities.
• Scope 3 emissions accounting for 84% of total emissions.
• Below-target customer satisfaction score (74%) due to pandemic-related restrictions.

Mitigation Strategies

• Formulating a Climate Strategy focusing on enhancing climate resilience and reducing carbon footprint.
• Identifying carbon reduction opportunities, particularly within the supply chain.
• Strengthening customer engagement through virtual tours and online sales presentations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Supply Chain Policy
• Code of Business Conduct for Third Parties
• Sustainability assessment of suppliers
• ACCESS program with UNGC

Climate-Related Risks & Opportunities

Physical Risks

• Flash floods affecting highways

Transition Risks

• Evolving regulations, diminishing resources

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, UNGC, TCFD, B4SI

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO/IEC 27001:2013, ISO/IEC 20000-1:2011

Third-party Assurance: Group’s Internal Audit Department (except carbon emissions data)

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 13
• Goal 16
• Goal 17

IJM's initiatives are aligned with the SDGs relevant to its business, focusing on health and safety, gender equality, clean energy, decent work, innovation, reduced inequalities, sustainable cities, climate action, peace, justice, and partnerships.

Sustainable Products & Innovation

• SMART IBS, energy-efficient buildings, hybrid RTG cranes

Awards & Recognition

• StarProperty Awards 2021 (three awards)
• High QLASSIC Achievement Award
• Silver Award at the Anugerah Integriti, Governans dan Anti Rasuah (“AIGA”) ceremony
• Malaysia’s Most Preferred Employer in the Construction and Property industry

Environmental Metrics

ESG Focus Areas

• Climate Change
• Good Governance
• Human Rights
• Community Development
• Employee Well-being

Environmental Achievements

• Established Group’s Climate Strategy addressing both adaptation and mitigation, with long-term targets to achieve net-zero carbon emissions by 2050
• Increased Renewable Energy generation Capacity to 5,665.6 kWp
• Purchase of Renewable Energy certificates covering 100% of Menara Prudential’s electricity consumption
• 21.5% of waste footprint reused and recycled
• IBS products obtained SIRIM ECO 033:021 certification

Social Achievements

• Enhanced existing human rights practices to ensure compliance to the amended Employment Act 1955
• Conducted IJM Sustainability Week 2022
• Rolled out sustainability e-learning modules from UNGC Academy Learning platform to employees
• Refreshed community investment framework, strategy and standard operating procedures
• Contributed RM2.4 million (1.5% of Group’s PATMI) to community initiatives

Governance Achievements

• Rolled out ABCS e-learning Module 3.0, mandated for all employees
• Port Division conducted an Anti-Bribery Management System (“ABMS”) Introduction and Awareness Training Programme
• Zero confirmed incidences of corruption across IJM’s business operations and zero monetary losses arising from legal proceedings associated with charges of bribery or corruption in FY2023

Climate Goals & Targets

Environmental Challenges

• Labour shortages
• Supply chain disruptions
• Escalated building material costs
• Elevated commodity prices and inflation levels
• Strained supply chains and geopolitical unease
• Weakening of most currencies against the US dollar, including the ringgit
• Higher unrealised foreign exchange losses on US dollar denominated borrowings for Indian operations and higher resurfacing cost incurred at the Vijayawada Tollway
• Shortage of skilled labour and increase in foreign labour cost
• Commodity price volatility
• Supply chain disruptions
• Manpower shortages
• Surge in the prices of cement, steel prices and transportation
• Delay in the renewal of blasting permits by the authorities, double-handling of stocks vis-a-vis breaking of oversized rocks and delays in a major project in the area
• High freight rates
• Volatility in iron ore exports
• Unfavourable cargo mix
• Less favourable cargo mix
• Climate change including adverse weather patterns and rising sea levels
• Heat stress
• Growing cybersecurity risks

Mitigation Strategies

• Prudent cost control
• Proactive reduction of property inventory
• Monetisation of low-performing assets
• Enhancing existing core businesses
• Exploring new geographical markets and adjacent business verticals
• Aggressive tightening of monetary policy in developed economies
• Executing bulk purchase strategy for high consuming construction materials
• Inclusion of Variation of Pricing (VOP) clauses in conditions of contracts
• Participation in industry-wide working groups
• Focus on cost optimisation and business process innovation
• Executing forward foreign exchange contracts or cross currency swap contracts
• Periodic review and maintain foreign currency denominated borrowings within the tolerable thresholds
• Constantly assessing the impact of new or changes to laws and regulations
• Active involvement in industry/ trade associations
• Conducting regular creditworthiness assessment on existing and potential customers
• Performing vendor assessment
• Ensuring compliance to Group’s debt repayment policies
• Persistent follow-up and close monitoring of overdue debts
• Conducting cash flow position assessment
• Reviewing and maintaining sufficient credit facilities
• Constant monitoring of financial ratios and debt covenants
• Constant efforts to monetise completed properties
• Executing a detailed manpower, project planning and supply chain strategy
• Ensuring strict and full compliance with regulatory requirements at project sites
• Frequent project meetings
• Conducting a full IT General Controls (“ITGC”) assessment
• Conducting phishing awareness trainings
• Extending the existing Privileged Access Management (PAM)
• Going-live with the first phase of Data Leak Protection (DLP)
• Conducting a Compromise Assessment
• Performing internal ITGC review
• Reviewing RTO/RPO targets and processes

Supply Chain Management

Responsible Procurement

• Responsible Supply Chain Policy
• Code of Business Conduct for Third Parties
• ACCESS programme

Climate-Related Risks & Opportunities

Physical Risks

• Acute (flooding, storminess, heat waves)
• Chronic (temperature rise, sea level rise, precipitation change)
• Heat stress

Transition Risks

• Regulatory
• Legal
• Market
• Technology
• Reputation

Opportunities

• Products and services
• Energy source
• Resource efficiency
• Markets

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, ISO/IEC 27001:2013, ISO/IEC 20000-1:2011, LEED Gold, GreenRE Bronze, SIRIM ECO 033:021

Third-party Assurance: BSI Malaysia

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 9
• 10
• 11
• 13
• 16
• 17

IJM’s initiatives contribute to these goals through various programs and strategies detailed in the report.

Sustainable Products & Innovation

• BubbleDeck Slab System
• Precast concrete products

Awards & Recognition

• Partnership for the Goals Recognition at UNGCMYB Sustainability Performance Award 2022
• Meritorious Winner in the Best Green Initiative category at SOBA 2022
• All-Stars Award at StarProperty Awards 2022
• Top 10 Developers at BCI Asia Awards Malaysia 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Corporate Governance
• Health and Safety
• Community Initiatives
• Supply Chain Management
• Human Rights
• Diversity & Inclusion

Environmental Achievements

• Industry Division replaced 13% of cement content with non-cementitious material
• Kuantan Port's electric shore power reduced diesel usage by over 34,106 liters, reducing emissions by 92.0 tCO2e
• Rainwater harvesting of 2,904.0 m³ for non-potable uses
• Renewable energy generation capacity expanded to 8,050 kWp, contributing to 9,032.6 MWh from renewable sources

Social Achievements

• Launched employee well-being program (MyVoice survey showed a 7-point improvement in employee engagement)
• Invested RM1,275,104 (0.8% of PATMI) in community initiatives
• Granted scholarships worth RM442,000 to 11 undergraduate students
• Extended MyHome program to rehabilitate homes of four families

Governance Achievements

• Formalised Risk Management and Sustainability Committee (RMSC) to oversee climate change
• Implemented Group-wide Supply Chain Framework (planned roll-out in FY2025)
• Launched ABCS E-learning Module 4.0 for all employees
• Zero confirmed incidences of corruption

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Climate change impacts (extreme weather, resource scarcity, regulatory changes)
• Traffic congestion in Kuala Lumpur

Mitigation Strategies

• Developed alternative sourcing strategies
• Formalized climate risk assessment into enterprise risk management framework
• Implemented tidal flow management scheme at BESRAYA
• Upgraded highway infrastructure to improve safety and reduce accidents

Supply Chain Management

Supplier Audits: Not explicitly stated, but a Group-wide Supply Chain Framework is being implemented

Responsible Procurement

• Code of Business Conduct for Third Parties
• Responsible Supply Chain Policy
• Supplier screening and evaluation

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Sea level rise
• Heat stress

Transition Risks

• Regulatory changes
• Market shifts
• Increased operational costs

Opportunities

• Improved asset and operational efficiencies
• Adoption of innovative technology
• Use of low-carbon materials
• Government incentives

Reporting Standards

Frameworks Used: Bursa Malaysia’s Sustainability Reporting Guide, GRI, SASB, TCFD, B4SI, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: BSI (for GHG emissions data)

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 13
• Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• BubbleDeck solution
• Low-carbon concrete products
• SMART IBS solution

Awards & Recognition

• Recognition for Sustainable Development award at UNGCMYB Forward Faster Sustainability Awards 2023
• Various awards for Property Division projects

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Biodiversity
• Waste Management
• Water Management

Environmental Achievements

• Replaced 12.8% of cement content with non-cementitious material in the Industry Division, reducing Scope 3 Category 1 emissions by 53,436.7 tCO2e.
• Increased renewable energy generation capacity to 8,050 kWp, contributing to 9,032.6 MWh of renewable energy consumption.
• Reduced water withdrawal by 16.9% to 1,011,476.0 m3.
• Diverted 12,379.1 tonnes of waste from landfill.

Social Achievements

• Not disclosed

Governance Achievements

• Formed a Board Risk Management and Sustainability Committee (RMSC) to oversee climate change matters.
• Integrated climate risk assessment into the enterprise risk management framework.
• Established near-term and long-term carbon reduction targets.

Climate Goals & Targets

Environmental Challenges

• Supply chain emissions (90% of baseline FY2023 emissions are Scope 3).
• Climate change impacts, including extreme weather, diminishing resources, and evolving regulations.
• Transition risks (increased operational costs, carbon taxes, emissions trading schemes, policy restrictions, market shifts, and changing customer preferences).
• Physical risks (acute and chronic climate events, infrastructure damage, work stoppages, reduced productivity).

Mitigation Strategies

• Implemented Climate Strategy R2O, focusing on mitigation and adaptation.
• Formalized climate risk assessment into enterprise risk management.
• Developed a sustainability dashboard for comprehensive performance management.
• Engaging with the supply chain to reduce embodied Scope 3 emissions.
• Adopting TCFD recommendations to manage climate risks and opportunities.
• Implementing initiatives to optimize energy usage, improve efficiency, and reduce fossil fuel dependency.
• Expanding renewable energy generation and exploring efficient processes and materials.
• Implementing a Green Building Design Framework for residential projects.
• Using BIM and IBS to optimize energy and embodied carbon emissions.
• Exploring alternative fuels with higher biofuel content and greener equipment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Engaging supply chain by 2027 for low carbon plans and targets; providing complimentary training to major suppliers on climate change; enhancing procurement strategies to include sustainability and climate considerations.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, storminess, heat waves, temperature rise, sea level rise, precipitation change.

Transition Risks

• Regulatory changes, legal changes, market shifts, increased operational costs due to higher raw material and fossil fuel prices, carbon taxes, emissions trading schemes.

Opportunities

• Development of energy-efficient products, asset and operational efficiencies through improved design and planning, adoption of innovative technology, use of low carbon materials, leveraging government incentives.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001:2015

Third-party Assurance: Independent verification according to ISO 14064:2018; data verification by the Group’s Internal Audit Department

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low carbon concrete production using cement alternatives and admixtures; use of current and emerging technologies such as BIM and IBS to optimise energy and embodied carbon emissions in projects.

Awards & Recognition

• Not disclosed