2020 UEM Edgenta Annual Report

We define our material matters as those that are important to our stakeholders, as well as to UEM Edgenta, and particularly to progressing our strategies in order to attain our business goals. These matters reflect challenges in our operating environment, hence by focusing on them we effectively manage ongoing risks while capitalising on opportunities. In 2019, we undertook a materiality assessment to identify our material matters using the following three steps: Defining We reviewed internal and external resources – including the feedback from stakeholders through our engagement with them to determine key challenges in our operating environment. The large number of matters that surfaced from the first step were evaluated by our senior management according to their relative relevance to our stakeholders, as well as our business. We then prioritised the material matters that are considered important to both our stakeholders and to UEM Edgenta. Evaluating Prioritising WHY IT IS IMPORTANT Technology is revolutionising the way work is done, enhancing efficiency and reducing costs. Customers, moreover, expect the most effective solutions which tend to be the most technologically advanced. VALUE CREATION MEASUREMENT • Greater productivity • Cost efficiencies • Reliability OPPORTUNITIES • Demonstrate leadership in digital technologies in the markets we are in by introducing better, more efficient systems and solutions • Digitise our own systems and processes for optimum efficiencies and for better collaboration across geographic locations • Create a more digital culture at UEM Edgenta via learning & development and other engagements OUR RESPONSE We are making headway towards becoming a Technology-Enabled Solutions Company with digitalised and automated solutions such as SmartConnect for smart building maintenance and management, UE Track TM for enhanced healthcare support services, and Road Asset Management System (“RAMS”) for efficient highway maintenance works, among others. TECHNOLOGY-BASED OPERATIONAL EXCELLENCE MATERIAL MATTERS Through this process, we initially identified eight broad material matters – Growth, Workplace, Collaborations, Climate Positive, Resource Efficient, Consumption, Health & Safety and Communities. This year, along with a reset in our strategy, the management reviewed our material matters and refined them for greater alignment with Edgenta of the Future. We have also renamed some of our material matters for greater clarity. As a result of the review, we now have the following 11 material matters: • Technology-based Operational Excellence • Carbon Emissions • Waste Management • People Development • Diversity & Inclusivity • Internal Stakeholder Management • Health & Safety • Community Engagement • Ethics & Integrity • Vendor Development • T hought Leadership & Advancing Industry A description of these material matters, and our approach to each, is provided in the following pages. However, for more detailed information on our sustainability initiatives, refer to our Sustainability Statement on pages 150 to 173. Capitals Impacted: UNSDGs: UEM EDGENTA BERHAD 64 Management Discussion & Analysis OUR MATERIAL MATTERS A. STRATEGIC REVIEW