Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business Development & Strategic Partnerships/Collaborations
• Quality Management
• Customer Satisfaction
• Corporate Governance, Ethics and Integrity
• Occupational Health & Safety
• Development of Human Capital
• Supply Chain Management
• Community Development
• Waste Management
• Energy Management
• Water Management
• Fair and Inclusive Workplace

Environmental Achievements

• 29% reduction in electricity consumption in the Property Segment compared to the previous year
• 10% reduction in electricity consumption in the Aviation Segment

Social Achievements

• Reduced employee attrition rate from 26% in FY2020 to 13.6% in FY2021
• Provided 53 internship positions, with 3 interns absorbed into the workforce

Governance Achievements

• Introduced two new policies: Enterprise Risk Management (ERM) Policy and Guidelines on Entertainment and Gift Expenses
• Established a Subsidiaries Governance Framework (SGF)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted business operations, particularly in the aviation and MRO segments
• Supply chain disruptions due to the COVID-19 pandemic
• Increased vacancy rates in the property market
• Decreased aircraft movement affecting aviation and MRO revenue
• Cash flow pressure and weak macroeconomic environment

Mitigation Strategies

• Implemented cost optimization measures and scaled down operations in less profitable segments
• Developed new strategies for hangarage, ground handling, and ancillaries
• Re-engaged a former client and collaborated with firms with extensive international networks
• Initiated an invitation to a major ground support equipment (GSE) supplier to set up a base at SZB
• Introduced sanitisation services, thermal scanner systems, and online document systems in the property segment
• Introduced disinfectant services and provided full PPE to employees in the aviation segment
• Negotiated with joint venture partner and financial institutions for more favorable terms on Master Lease Agreement (MLA) and borrowings

Supply Chain Management

Supplier Audits: 44 suppliers evaluated in Aviation Segment, 25 in MRO Segment (FY2021)

Responsible Procurement

• Procurement Policies and Procedures
• Supplementary SOPs for Aviation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia’s Sustainability Reporting Guide (2nd Edition), UN Sustainable Development Goals (SDGs)

Certifications: IS-BAH Stage 2 accreditation

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 4
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 17

The report maps sustainability initiatives to these SDGs.

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Community
• Anti-Corruption and Governance
• Supply Chain Management
• Health and Safety
• Diversity
• Human Capital Development
• Data Privacy
• Energy Management
• Emission Management
• Water Management
• Waste Management

Environmental Achievements

• Reduced water consumption (increase attributed to lifting of Movement Control Order)
• Diverted 3.4 tonnes of waste from disposal

Social Achievements

• No work-related fatalities
• LTIR of 0.6
• 3287 total training hours (increase from previous years)
• No substantiated complaints concerning human rights violations or breaches of customer privacy

Governance Achievements

• Established a formal Anti-Bribery and Corruption Policy
• Enhanced the position and independence of the Integrity and Governance Unit
• Established Guidelines on Corporate Social Responsibilities, Donations and Sponsorship
• Established a Register of Gifts, Hospitality and Entertainment
• Adopted a Whistleblowing Policy
• Adopted a Workplace Sexual Harassment Policy
• Established a Directors’ Fit and Proper Policy
• Appointed Dr. Yap Lang Ling as a female board member

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment impacting economic performance
• Overall rental revenue declined due to reduction of space rented by an anchor tenant
• Highly competitive private aviation market
• Surging fuel prices impacting private aviation demand
• Behavioral shift towards teleconferencing reducing demand for private aviation
• Growing environmental concerns of private jet flights
• Property supply glut risk exacerbated by preference for green buildings
• Group’s financial and legal exposure to obligations arising from Permata Sapura’s MLA

Mitigation Strategies

• Pivot in tapping the SME market through innovative product offerings
• Continued engagement with joint venture partner for Permata Sapura
• Enhanced marketing efforts in attracting tenants to Permata Sapura
• Continuous review of investment portfolio to ensure long-term viability
• Improving financial position and performance
• Implementing various strategies to uphold effective risk management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritising local suppliers (67% of supplies sourced locally)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Anti-Corruption
• Health, Safety and Security
• Supply Chain Management
• Data Privacy
• Waste Management
• Energy Management
• Emission Management
• Water Management
• Diversity
• Community/Society
• Human Capital Development

Environmental Achievements

• Reduced waste directed to disposal by 0.2 tonnes through recycling initiatives.

Social Achievements

• Provided 26 internship positions.
• Conducted 2,954 training hours for employees.

Governance Achievements

• Established a Conflict of Interest Policy and Procedures.
• Revised and updated the Board Charter.
• Amended and updated the Code of Conduct and Ethics for Directors.
• Implemented a Whistleblowing Policy.
• Adopted a Workplace Sexual Harassment Policy.

Climate Goals & Targets

Environmental Challenges

• Challenging financial position due to losses and high debt levels.
• Soft Klang Valley office market with oversupply and competition.
• Cautious market sentiments and downward pressure on demand for office spaces.
• Highly competitive private aviation market with aggressive expansion and competitive pricing.
• Risk of non-renewal of agreements by existing customers in private aviation.
• Increase in energy costs and tenant demand for energy efficiency and redundancy features.

Mitigation Strategies

• Increased sub-tenancy rate at Permata Sapura to approximately 91%.
• Issued a letter of offer to a related party for potential vacancy at Permata Sapura.
• Continuous review of business practices and investments.
• Improved engagement with business partners and stakeholders.
• Continuous review of position as a private aviation service provider.
• Active engagement with joint venture partner on MPS’s business plans.
• Increased marketing activity and engagement with prospective tenants.
• Proposed fundraising of RM33.5 million through renounceable rights issue.
• Proposed settlement of debt via issuance of RCSLS to JSB.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritising local suppliers meeting price, quality, performance, and ethical standards.

Climate-Related Risks & Opportunities

Physical Risks

• Water disruption due to climate change-induced events.

Transition Risks

• Increased energy costs and tenant demand for energy efficiency.

Opportunities

• Increased appeal of green buildings and properties near MRT/LRT corridors.

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad Main Market Listing Requirements, Sustainability Reporting Guide 3rd Edition

Certifications: GreenRE (Gold) for Permata Sapura

Third-party Assurance: No assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GreenRE (Gold) Certification for Permata Sapura