Section 6 UEM Edgenta Berhad ENHANCING VALUE THROUGH SUSTAINABILITY 100 The ESG Steering Committee, led by the Managing Director/ CEO, deliberates and provides steer on sustainability matters across the Company. The Managing Director/CEO also ensures that policies and practices are disseminated throughout the organisation. During the year under review, an ESG Department was formalised to execute sustainability initiatives, providing strategic guidance and operational support in implementing and monitoring ESG-related activities across the organisation. The Board also takes continuous steps to enhance its knowledge on sustainability-related matters. In 2023, the Board underwent more than 130 hours of ESG-related training, covering important topics such as setting climate targets and ESG governance processes to facilitate deliberations and discussions of ESG matters. UEM Edgenta continuously ensures compliance with local and international laws through a structured approach, with oversight from the Responsibility, Integrity, Compliance, and Diversity ("RICD") department. UEM Edgenta’s risk management policies and practices are guided by its Risk Management Framework ("RMF") and aligned with ISO 31000 guidelines. Other policies and frameworks, such as the Sustainability Policy, Anti-Bribery Management System, and Whistleblowing Policy, reflect UEM Edgenta's commitment to governance and ethics. The company continuously engages with external stakeholders, NGOs, and authorities to enhance anti-corruption efforts. Throughout the reporting year, more than 15 engagement activities, such as Vendor Day and Integrity Awareness Sessions were held in 2023 to educate our stakeholders on key risk matters. Key milestones achieved in 2023 include obtaining the ISO 37001 Anti-Bribery Management Systems ("ABMS") certification, enhancing the e-declaration portal to include more integrity declarations, and developing the Organisational Anti-Corruption Plan ("OACP"). Moving forward, the Company will enhance its risk management framework to capture sustainability-related risks, such as the impact of climate change and other material matters to the business. In the interim, UEM Edgenta has already taken steps to identify and assess environmental, social, and governancerelated risks, which are reported to the BGRC quarterly. The Company has also begun preparations to address the recommendations of the Task Force for Climate-Related Disclosure ("TCFD") and International Sustainability Standards Board ("ISSB") by undergoing TCFD awareness training in 2023 and developing a roadmap for the compliance process. OUR COMMITMENT TO THE CLIMATE AND ENVIRONMENT During the year, UEM Edgenta completed several key sustainability initiatives, making further progress in two key material matters, namely Climate Change and Energy, and Environmental Management. In response to climate change concerns and expectations from our stakeholders to address this material matter, we initiated the work to establish our Scope 1 and Scope 2 emissions inventory, which amounted to 17,577 tonnes of CO2-equivalent (tCO2e), comprising 10,356 tCO2e of Scope 1 emissions and 7,221 tCO2e of Scope 2 emissions. The exercise to establish our emissions inventory provided many learnings to the company – including data verification for completeness as well as the accuracy of calculating emission figures based on global standards – all of which provided further understanding of the nature of our emissions footprint and the correlation of our business activities to GHG emissions. A notable achievement in 2023 was the launch of UEM Edgenta’s groupwide Net Zero Targets and our commitment to achieve net zero GHG emission by 2050. Additionally, we established an interim reduction target of 26% by 2030 for Scope 1 and Scope 2 emissions, towards achieving Net Zero by 2050. These commitments align with the International Energy Agency’s ("IEA") Net Zero Emissions by 2050 Global Pathway. Our commitment to reducing emissions is predicated on our decarbonisation strategy which anchors on optimising energy consumption through energy efficiency solutions, leveraging on clean and renewable energy sources and electrification of our fleet of vehicles. Immediate initiatives undertaken during the year included the capacity optimisation of our Kamunting incinerator plant to generate optimum levels of heat and to reduce the reliance on natural gas. In addition, we piloted the use of Green Energy Tariffs from TNB as a means to offset our hard-to-abate sources of emissions. These initiatives had provided the initial momentum required to kick-start our decarbonisation journey. In 2023, we recorded a reduction of 777 tCO2e in our Scope 1 and Scope 2 emissions, translating into a 4.04% emission reduction from our 2022 baseline. Moving forward, we are focused on establishing GHG reduction monitoring process to measure the performance of our net zero strategy and also to allow us to refine our climate targets as we progress. We are also embarking on an exercise to establish our Scope 3 emissions inventory and make a similar pledge to Net Zero by 2050. SUSTAINABILITY AT UEM EDGENTA
RkJQdWJsaXNoZXIy NDgzMzc=