Kimlun Corporation Berhad Annual Report 2023

Material Efficiency: • IBS typically involves the use of prefabricated components, which can lead to better material efficiency compared to traditional construction. Precise manufacturing in controlled environments often reduces material wastage. • Quality control in IBS can result in standardised and optimised use of materials, minimising the need for excess resources. Energy Efficiency: • IBS can potentially lead to energy savings during the construction phase because of the streamlined manufacturing process and reduced on-site construction time. • Transportation of prefabricated components to the construction site may impact energy efficiency, depending on the distance and mode of transport. Waste Reduction: • IBS has the potential to generate less construction waste at the site due to the controlled manufacturing process. On-site construction activities are reduced, leading to lower levels of waste generation. • The modular nature of IBS components can contribute to the reuse and recycling of materials, reducing overall waste. Lifecycle Assessment: • Assessing the sustainability of construction methods involves considering the entire lifecycle of a building. This includes material extraction, manufacturing, transportation, construction, use, and end-of-life considerations. • IBS may have a positive impact on the overall lifecycle if it contributes to a more efficient and sustainable construction process. ENVIRONMENT Kimlun Group is committed to minimising the environmental impact caused by its business and operations, enhancing energy efficiency, reducing pollution, and reducing waste disposed of in landfills. In line with global and national efforts to tackle climate change, Kimlun will also endeavour to reduce its net emissions and minimise its emissions-related impact. Our pre-cast concrete components manufacturing arm, SPC has been accredited with the ISO 14001:2015 Environment Management System Certification and it adheres to the requirements under this standard to minimise the environmental impact of its operations. ENVIRONMENTAL BENEFITS OF THE IBS SYSTEM Energy and Emissions Kimlun Group’s in-scope business and operations consume a considerable amount of energy in the forms of: • vehicle fuel, including diesel and petrol, used in vehicles used in operations such as passenger cars, lorries etc. • diesel used in construction equipment and site generators. • electricity consumed at the headquarters, factories, project sites and offices of the in-scope companies. This year, we began to estimate our energy consumption based on the fuel purchased and electricity purchased from Tenaga Nasional Berhad and Sarawak Energy Berhad. Energy source FY2023 Consumption Energy amount (MWh) Purchased electricity 3,175 MWh 3,175 Diesel (used in Group-owned/ controlled vehicles/ equipment) 3,103 kilolitre 33,004 Gasoline (Petrol) (used in Group-owned/ controlled vehicles/ equipment) 222 kilolitre 2,069 Total 38,248 SUSTAINABILITY STATEMENT 035 Annual Report 2023

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