31 INTEGRATED ANNUAL REPORT 2024 Overview of Wasco Berhad Key Messages Value Creation Commitment to Governance Sustainability Journey Financial Statements Other Information VALUE CREATION MODEL Trade-Offs Investing in Research & Development (“R&D”) vs. immediate financial returns: Pursuing innovation in advanced coating technologies and energy-efficient solutions demands sustained investment and a longterm outlook. While not yielding returns in the immediate term, it is essential for maintaining technological leadership and future-proofing our offerings. Digitalisation vs. integration challenges: While AI, data analytics and automation significantly enhance operational efficiency and decision-making, their successful integration requires upskilling employees and investing in robust Information Technology (“IT”) infrastructure. I INTELLECTUAL CAPITAL Achievements • Digital Initiatives: Rolled out the AI-enabled CARE Card system, enhancing workplace safety, compliance tracking, and real-time incident reporting. 2024 Focus • Enhance AI-driven safety programmes through advanced CARE Card features. Our Approach Wasco’s decades-long expertise in pipeline coating, EPC, and bioenergy solutions forms the foundation of our competitive edge. As a global leader in pipeline coating and the holder of a 70% market share in steam turbines for the agriculture sector, we continue to set industry benchmarks across our core offerings. Complementing our technical capabilities, we embrace AI-driven innovations such as the CARE Card system to enhance HSE performance, ensure compliance, and drive operational efficiency. N NATURAL CAPITAL Trade-Offs Business growth vs. environmental impact: As our business expands, higher energy consumption and increased carbon emissions are inevitable, requiring the implementation of effective offset measures. Transitioning to cleaner energy vs. immediate cost savings: Shifting to renewable energy sources reduces long-term costs but demands short-term capital investment. Achievements • Wasco Forest Initiative: Launched in 2021, the Wasco Forest initiative represents a key milestone in our sustainability journey. To date, we have successfully planted 160,000 trees, focusing on conserving endangered rainforest species and restoring forests in Pahang, Malaysia. Ongoing tree monitoring and a comprehensive Soil Carbon Stock study in 2024 were conducted to assess the environmental impact of our reforestation efforts. • Renewable Energy Integration: Increased our renewable energy mix to 27% across our operations, demonstrating our commitment to sustainable practices and reducing our carbon footprint. • Water Management: Our rainwater harvesting system now accounts for 5% of our water consumption, reflecting our continuous effort to minimise reliance on freshwater sources and enhance water stewardship. 2024 Focus • Expand the use of renewable energy across all Wasco operations. • Strengthen partnerships with like-minded, sustainability driven organisations to enhance emissions reduction efforts. Our Approach Sustainability is central to Wasco’s growth strategy. While our total emissions have risen in line with business expansion, we are committed to mitigating our environmental impact through growing our renewable energy mix, reducing freshwater consumption, and continuously enhancing energy efficiency across our operations.
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