Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Environment sustainability
• Societal sustainability

Environmental Achievements

• Encourages the use of energy-saving lightings, devices and practices in its hotels, retail stores, factory and offices
• Encourages water conservation practices
• Explores less polluting and greener alternatives for its operations
• Corus Hotel Kuala Lumpur is scaling up on its sustainable development practices to reduce the impact of the tourism sector on the environment. It includes recycling programmes and reducing reliance on single-use plastic. The hotel no longer makes available plastic straws.

Social Achievements

• Creates a workplace environment that values mutual respect, regular dialogues with staff, equal treatment and opportunities for all, training and advancement prospects based on meritocracy.
• Ensures that its Human Resources policies and guidelines fully comply with all relevant legislations and that its workplace embraces diversity, inclusion and equality.
• Subscribes to the Bookdoc programme, an online healthcare application that allows easy access to staff’s basic healthcare needs.
• Provides other benefits including medical, hospitalisation and insurance coverage.
• Gives long-service awards to honour employees’ commitment and dedication.
• Operates in accordance with the Standard Operating Procedures (SOPs) as established by the Ministry of Health and other relevant authorities in light of the current coronavirus outbreak.
• Actively enforces the Whistleblower Policy across all its business divisions.
• Participated in community projects for the benefit of various charitable organisations (though many were put on hold due to COVID-19).

Governance Achievements

• The Board is committed to the principles of corporate governance set out in the Malaysian Code on Corporate Governance and continuously observes corporate governance practices.
• Ensures compliance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
• Established a Board Charter which prescribes the roles of the Board and matters reserved for the Board’s collective decision.
• Adopted a Code of Conduct & Business Ethics.
• Implemented a Whistleblower Policy.
• Adopted and implemented an Anti-Bribery and Anti-Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Significant impact of COVID-19 on retailing and hotel segments, leading to a 24.2% drop in Group revenue.
• Laura Ashley (associate) went into administration, resulting in an RM111.8 million loss.
• Impact of COVID-19 on the businesses of the Group
• Domestic and/or global economic slowdown
• Continued cooling measures on the property market
• Calamities (e.g., outbreak of other transmissible diseases, air tragedies, terrorist attacks)
• Foreign exchange fluctuations
• Fluctuations in interest rates
• Fluctuation in prices of raw materials, building materials and crude palm oil
• Price wars among competitors
• Trade war between China and the United States of America

Mitigation Strategies

• Concerted efforts to unlock selected assets to lessen financial leverage and strengthen liquidity.
• Implementation of various business strategies to keep up with rapid changes and constant disruptions.
• Focus on building quality, competitively priced homes in Bandar Springhill township.
• Product innovation and marketing initiatives to meet consumer needs and maintain brand visibility.
• Consolidation of essential business operations to reduce costs and improve efficiencies.
• Digitalisation across businesses.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Energy efficiency improvements through energy-saving lightings, devices, and practices in hotels, retail stores, factory, and offices.
• Water conservation practices encouraged.

Social Achievements

• Created a workplace environment that values mutual respect, regular dialogues with staff, equal treatment and opportunities for all, training and advancement prospects based on meritocracy.
• Compliance with all relevant legislations, embracing diversity, inclusion, and equality.
• Employee benefits include medical, hospitalization, and insurance coverage. Long-service awards are given.
• Strict compliance with Standard Operating Procedures (SOPs) during the pandemic.
• Community care fund established, distributing cash donations and essential goods to those in need.
• Donation of water to police personnel supporting a vaccination drive.

Governance Achievements

• Adoption and implementation of a Whistleblower Policy.
• Adoption and implementation of an Anti-Bribery and Anti-Corruption Policy.
• Establishment of a Board Charter.
• Adoption of a Code of Conduct & Business Ethics.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic's impact on retailing, hotel, and food segments.
• Lower revenue in Metrojaya due to enforced closures.
• 60% revenue drop in UK hotels due to lockdowns.
• Plummeting revenue in Malaysian hotels due to border closures and travel restrictions.
• Disruptions in construction works due to Movement Control Orders (MCOs).
• Significant drop in Network Foods Group export sales due to lockdowns, social unrest, and political uprisings.
• Port congestion, closures, and global shortage of shipping containers.
• Increased production costs due to supply chain disruptions and higher raw material prices.

Mitigation Strategies

• Lower operating expenses and gain from property disposal in Metrojaya.
• Launch of online shopping platform metrojaya.com.my.
• Major cost-cutting measures in UK and Malaysian hotels, including streamlining operations.
• Flexible staycation packages and expanded food catering options in hotels.
• Resilience in property business by achieving comparable revenue to FY2020.
• Strong buying interest in Bandar Springhill homes despite uncertainties.
• Sales to general trade and new distributor in Sabah and Sarawak for Network Foods Group.
• Addition of three new products to the market.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Metrojaya reduced the use of synthetics and manmade fabrics, replacing them with natural fibers.
• Network Foods implemented 3R initiatives (reduce, recycle, reuse) and moved towards a paperless concept.
• A&W used electricity from renewable energy sources and switched to energy-saving equipment.
• MUI Properties won a Malaysia Developer Award for Bandar Springhill's green features.
• West Synergy projects fully comply with the Environmental Quality Act 1974.
• Various initiatives implemented across divisions including car-pooling, reducing water flow, paperless communication, waste segregation, rainwater harvesting, and using oil palm waste as fertilizer.

Social Achievements

• Improved employee benefits (medical, hospitalization, insurance).
• Long-service awards.
• Comprehensive Code of Business Ethics and Conduct.
• Active enforcement of Whistleblower Policy.
• Compliance with OSHA standards and training for OSHA committees.
• Participation in community projects.
• Intensive leadership training program (One Rock International).
• ‘Make It Happen’ campaign featuring Anna Teo.

Governance Achievements

• Established five ESG committees with monthly combined meetings.
• Created an online ESG cloud portal.
• ESG updates are a fixed agenda item for monthly business reviews and quarterly Board meetings.
• Adoption and implementation of Anti-Bribery and Anti-Corruption Policy.
• Adoption and implementation of Whistleblower Policy.
• Appropriate checks and balances in all business units.

Climate Goals & Targets

Environmental Challenges

• Inadequate data input for accurate carbon emission measurement.
• Inflation and labor shortages at A&W.
• Global recession risks due to geopolitical conflicts, monetary tightening, supply chain disruptions, and high interest rates.
• Shrinkage in UK household spending power impacting leisure and business sectors.
• Increase in cost of borrowing in the UK.

Mitigation Strategies

• Three-year agreement with Terrascope for standardized carbon emission measurement.
• Operational measures at A&W: increased productivity and technology adoption, cost optimization, staggered price adjustments.
• Corporate restructuring initiatives to strengthen financial footing.
• Various initiatives to mitigate environmental and social challenges across divisions.

Supply Chain Management

Responsible Procurement

• Plans to introduce green vendors with sustainability backgrounds at Metrojaya.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Metrojaya's shift to natural fibers.

Awards & Recognition

• Malaysia Developer Award (MUI Properties)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (quantified data incomplete, but a baseline was established using Terrascope software)
• Installation of solar panels at A&W operations
• Initiatives like an employee-led eco-garden, rainwater harvesting, waste reduction, and repurposing of palm tree waste at Bandar Springhill
• Recycling and food waste reduction at Corus Hotel Kuala Lumpur
• Shifting toward natural fibers and collaborating with green vendors in the Retail division

Social Achievements

• Enhanced employee benefits (improved medical, hospitalization, and insurance coverage)
• Recognition of long-serving employees
• Implementation of a comprehensive Code of Business Ethics and Conduct
• Active enforcement of a Whistleblower Policy
• 100% employee participation in anti-corruption training
• Leadership development program in collaboration with One Rock International and Chick-fil-A

Governance Achievements

• Established five ESG committees
• Created an online ESG portal for employee education
• Regular ESG updates in monthly performance reviews and quarterly board meetings
• Implementation of Anti-Bribery and Anti-Corruption Policy
• Implementation of Directors’ Fit and Proper Policy

Climate Goals & Targets

Environmental Challenges

• Weak performance of property and retailing divisions
• Rising costs (labor, food, insurance, energy)
• Staffing shortages and skill gaps in the UK hotel market
• Global supply chain disruptions
• Weakening local currency and inflationary pressures in the QSR industry
• Reduced construction progress on ongoing property development phases

Mitigation Strategies

• Revamped Metrojaya flagship store with improved per square-foot sales
• Expansion of standalone boutiques for select brands (EIC, Indie Batik)
• Strategic partnerships with Singaporean brands (Kskin, Benjamin Barker)
• Yield-centric approach to maximize room revenue at Corus Hotel KLCC
• Refurbishment projects and staff training at Corus Hotel KLCC
• Financing agreement with ESR Europe to reposition Corus Hotel Hyde Park
• Re-branding exercise at Burnham Beeches Hotel
• Cost optimization by renegotiating contracts with suppliers
• Staggered approach to price adjustments at A&W
• Investment in employee training and development at A&W
• Joint venture agreement with Century Marque Sdn Bhd for industrial property development

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaborating with green vendors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN SDGs

Certifications: FSC®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The MUI Group’s commitment to sustainability is rooted in responsible corporate citizenship and aligns with the United Nations Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed