101 SECTION 4 SUSTAINABILITY JOURNEY INTEGRATED ANNUAL REPORT 2025 Medium-Term Strategy and Actions (by 2035) its principles into our capital allocation, investment decisions, and financial planning to ensure that major business decisions support our long-term decarbonisation goals. • Implementing Internal Carbon Pricing: We plan to implement an internal carbon pricing mechanism to guide our investment decisions and prepare for potential carbon taxes in Malaysia. This will create a direct financial incentive for lower-carbon choices and investments in energy efficiency and renewables across the Group. • Leveraging Climate Scenario Analysis: Having completed our first climate scenario analysis in 2025, we will use the outputs of this exercise throughout the medium term to inform our business strategy. The insights gained will be used to stress-test our plans, identify and mitigate potential vulnerabilities, and ensure our strategy remains resilient and adaptive under various climate futures. Our medium-term strategy focuses on fundamentally shifting our energy mix and embedding climate considerations deep into our core business processes. Our key target for this period, as defined in our STFF, is to achieve 40% of our total energy consumption from renewable sources by 2035. Key elements of our medium-term strategy to achieve this and build long-term resilience include: • Achieving our Renewable Energy Target: Our primary strategy to meet our 40% goal is the continued, aggressive expansion of our on-site solar energy generation capacity across our global facilities. Where direct generation is not feasible, we will supplement our efforts through the procurement of high-quality Renewable Energy Certificates (“RECs”). • Deepening Sustainable Finance: We will increase the operationalisation of our STFF, further embedding Long-Term Vision and Actions (by 2050) Our ultimate ambition is to achieve Net Zero absolute GHG emissions across Scope 1, 2, and material Scope 3 by 2050. This long-term vision aligns with the goals of the Paris Agreement and Malaysia’s national ambition, as outlined in the National Climate Change Policy 2.0. Managing Long-Term Risks and Opportunities Our approach to managing long-term climate risks and opportunities is fully integrated into our corporate strategy and Enterprise Risk Management framework. The Board and Senior Management Team will continuously identify, assess, and monitor long-term physical and transition risks as part of our annual strategic planning, major investment decisions, and ongoing financial and operational performance reviews. This ensures that our long-term business strategy remains resilient and that we are positioned to capitalise on emerging opportunities, such as the development of new low-carbon technologies and services, to maintain our competitive edge in the evolving energy landscape. Key Strategic Levers for Our Long-Term Vision • Investing in Low-Carbon Technology: We will commit to ongoing investment in and deployment of emerging low-carbon technologies and solutions, such as CCS and hydrogen, as they become commercially viable. • Deepening Value Chain Collaboration: We will partner with suppliers, customers, and industry peers to address shared emissions and drive deep value chain decarbonisation. This will build on the foundation of our STEP programme, moving from capacity building to joint innovation and investment. • Setting Interim Milestones: We will set and publicly report on clear, science-informed interim milestones for the period after 2035 to ensure transparency and accountability on our path to 2050. SUSTAINABILITY JOURNEY
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