MSM Malaysia Holdings Berhad Annual Report 2021

Natural Gas (mmBTU) 4,858,897 4,704,522 4,013,625 Diesel (litres) 360,800 604,551 1,225,054 Own Generated Electricity Consumption (kWh) 86,232,467 72,345,310 55,556,395 Total Purchased Electricity (kWh) 47,788,573 47,407,844 49,763,468 A 14.7% reduction in Natural Gas was recorded by MSM in FY2021, as compared to FY2020, as there was less consumption in MSM Johor due to its boiler breakdown issues. No data from MSM Perlis was also recorded during the year after its disposal in FY2021. Diesel consumption was higher in FY2021 due to the inclusion of diesel consumption by the logistics fleet under MSM Logistics. This was not tracked in the previous years. There was overall 23.21% reduction in Own Generated Electricity Consumption in FY2021 as a result of the breakdown of the boiler in MSM Johor in second quarter of 2021. The figure is also lower as there is no data from MSM Perlis in FY2021 after its disposal. Note: The diesel consumption is based on usage for the logistics fleet, forklifts, excavators and the generator sets. Since FY2021, diesel consumption at MSM Logistics has been tracked and induded in our FY2021 data. 2019 2019 2021 2021 2020 2020 The tables below provide an overview of our energy consumption via various energy sources: Seek ways to optimise energy reduction throughout operations Embarked on feasibility studies on energy reduction initiatives such as biomass and solar panel installations Key Activities in 2021 Target Activities Climate Change and GHG Emissions The impact of climate change presents a significant risk to MSM’s business as it introduces unpredictability in the supply of natural resources it depends on. We also see an opportunity in taking leadership of climate change initiatives as a global player in the sugar industry and therefore we have a strong determination to achieve carbon neutrality along with the ideals of Net Zero as we step up our sustainability journey. As part of our commitment to address climate change under our Group Sustainability Policy, we are actively making efforts and initiatives to minimise our climate change impact including reduction of Greenhouse Gas (GHG) emissions. With MSM’s GCEO as a main member of the CEO Action Network (CAN), MSM will explore CAN’s agenda towards climate change objectives and a commitment towards playing its part in the global community to achieve SDG 13 on Climate Action as well as supporting Malaysia’s Nationally Determined Contribution (NDC) to the Paris Agreement to reduce GHG emissions by 45% by 2030. Through our participation and learnings from this network, this network, we hope to help steer the MSM Group towards an effective climate transition strategy, taking into account the need for financial stability, increased resilience and sustainability. Further details on the boiler breakdown are discussed on page 82 Purchased Electricity consumption was higher by 4.9%. A high increase was recorded by MSM Johor in FY2021 as it was unable to generate its own electricity due to the boiler breakdown issues. There was also increase in demand and production in the other operating companies during the year. SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 139

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