SUSTAINABILITY STATEMENT MATERIAL SUSTAINABILITY MATTERS (“MSM”) In identifying our MSM which reflect our significant economic, environmental and social impacts, we have considered the following: (i) the nature of our business and our corporate strategy; (ii) risks assessment and risks scoring based on matrix developed pursuant to our enterprise risk framework; and (iii) our understanding of our stakeholders’ needs. Based on our assessment, the most significant MSM identified were categorised into four broad categories as follows: MANAGEMENT OF SUSTAINABILITY MATTERS The construction industry is generally regarded as labour intensive, dangerous and polluting. Construction projects involve long periods of work and delivery, complicated processes and rely heavily on in-situ construction methods involving the use of formworks and a huge amount of wet trades. The main challenges faced by the industry players include shortage of skilled labour, supply chain disruption, cost escalation, quality of works, as well as compliances with the laws and regulations in relation to safety, health and environment. Occupational safety and health is always a challenge as the industry has a high level of work site accident injuries and fatalities. Construction activities are also inherently harmful to the environment, impacting the environment with noise, dust, muddy run-offs, and significant amounts of waste. In addition, the industry is very competitive and its vibrancy depends on property development projects and public sector projects planned and launched by the respective project owners. The ability to deal with these challenges will have direct impact on the performance of the Group and its sustainability. Generally, our key operation processes are governed by approved policies and procedures to ensure amongst others, that our operations are conducted in an orderly manner for delivery of quality products and services, and in compliance with applicable laws and regulations. Business / Economic Growth • Shortage of skilled workers and raw materials • Inconsistency of quality of products and services • Cost control • Business growth Social Contribution • Workplace practices • Contribution to local community • Equal opportunity Environmental Management • Compliance with applicable laws and regulations • Waste management • Consumption of natural resources • Climate change • Pollution Government and Regulatory Requirements • Compliance with applicable laws and regulations • Occupational safety and health • Approvals, permits or licences Kimlun Corporation Berhad | Registration No. 200901023978 (867077-X) 31
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