Section 4 UEM Edgenta Berhad HOW WE CREATE VALUE 50 OUR OPERATING ENVIRONMENT AND MARKET TRENDS Transition to LowCarbon Economy As we progress into 2024, the urgency to address climate change continues to intensify. The emphasis on sustainability and the environmental impact of businesses remains a pivotal concern for clients, governments, and investors. Following the announcement of the National Energy Transition Roadmap (“NETR”) by the government in 2023, Malaysian companies are now geared towards more ambitious projects to achieve the net zero emission target by 2050. IMPACTS Risks: Non-compliance with environmental regulations or failure to meet globallyaccepted environmental standards could lead to: • Loss of access to international markets • Difficulty in securing renewal of existing contracts and winning new projects • Diminished reputation amongst clients, investors and governments, leading to significant financial impact • Climate risk resulting in damages to assets we maintain or premises we occupy Opportunities: • Accelerating our growth by establishing ourselves as an industry leader in sustainability • Introducing technology and sustainabilitybased solutions that drive improvement in our clients’ sustainability performance RESPONSE • Implementation of various ESG initiatives as per our Sustainability Roadmap • Announced our Net Zero Targets for Scope 1 and Scope 2 emissions in September 2023, aligning with the International Energy Agency’s (“IEA”) Net Zero Emissions by 2050 Global Pathway (published in 2022) • Integrating sustainability in our businesses - repositioning Opus to be an end-to-end sustainability engineering consultancy company • Enhanced our sustainability policy to align seamlessly with our corporate values and business objectives • In Singapore, we have initiated a supplier evaluation process that prioritises environmentally conscious practices and includes criteria related to green products and services • Data automation for our carbon accounting exercise • Initiated the implementation of a carbon budgeting process as part of our effort to implement our decarbonisation strategy OUTLOOK LINK TO As part of our Sustainability Roadmap, we intend to solidify our sustainability pillars to future proof our business. By strategically integrating ESG principles into our operations, we aim to enhance our environmental stewardship and to foster positive social impact and uphold strong governance standards. As a response to climate-related risks, we have curated a workplan and will start the assessment of our physical and transition risks as per the Task Force on Climate-related Financial Disclosures (“TCFD”) requirements. To develop a more comprehensive map of our carbon footprint, we will also be calculating Scope 3 emissions to enable us to decarbonise our value chain. Capitals S2 S3 S4 S5 S6 Stakeholders M5 M6 Material Matters R7 Risks
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