Currently, we estimate and report the greenhouse gas emissions arising from the consumption of fossil fuel, i.e. Scope 1, and the consumption of purchased electricity, i.e. Scope 2, as follows. We will continue to undertake measures to enhance the accuracy and completeness of our emissions estimation and work towards estimating Scope 3 emissions at least for Category 6 – Business Travel and Category 7 – Employee Commuting, to comply with the future disclosure requirements of the Listing Requirements. Energy source FY2023 (tCO2e) 1 Scope 1 8,809 Scope 22 2,386 Scope 1 and Scope 2 11,195 Water Water is also an important input for some of our operations especially the pre-cast concrete manufacturing business which is based in Negeri Sembilan and Johor. Our in-scope premises (i.e. headquarters, factories, and offices) are not located in water-stressed areas. At some construction sites, we have rainwater harvesting tanks to collect rainwater for construction use. However, we currently do not measure the amount of water collected or consumed from rainwater harvesting tanks. Apart from domestic effluent from our headquarters and offices which is discharged into the municipal sewerage, our factory operations generate wastewater which is treated on-site, including silt traps, before the effluent is discharged. Across our operations, we do not waste water and aim to enhance water efficiency. The Group’s in-scope water consumption and discharge in FY2023 is estimated and summarised as follow: Water withdrawal (m3) FY2023 (m3) from municipal sources 264,961 Waste Management and Pollution The construction industry has always been material and waste intensive. As Kimlun strives to promote greater technological adoption in the industry in the region, we continue to promote and offer IBS solutions that generally consume less materials and generate less waste through precise manufacturing in a controlled environment. The quality control and standardisation in IBS manufacturing also helps to analyse the optimum material use, thereby enhancing material efficiency. For example, the manufacturing of prefabricated concrete components in the factory allows us to more accurately estimate the materials required and hence reduce waste generation. In addition, a better quality control environment in the manufacturing factory also helps to reduce defective products and hence less waste. Generally, our operations do not generate a significant amount of scheduled waste and all scheduled waste generated is handled and disposed of by licenced contractors approved by Department of Environment. The more significant non-hazardous waste types in our operations are construction waste such as wood, steel, and concrete waste. We carry out waste segregation at the construction sites. Some collected waste can be reused or recycled in our operations or we sell them to waste contractors. 1 Includes carbon dioxide, methane, and nitrous oxide 2 Estimated using (1) Grid Emission Factor of 0.758 Gg CO2e/ GWh (Peninsular Malaysia) and 0.198 Gg CO2e/ GWh (Sarawak) for FY2021 (latest available at the time of the preparation of this Statement) source: https://meih.st.gov. my/home. SUSTAINABILITY STATEMENT Kimlun Corporation Berhad 036
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