This funding approach makes sustainability more accessible while lowering carbon emissions and operational costs. I am extremely pleased to note that in less than 2 years of launch, OPUS Energy has grown into a market leader position serving clients in Peninsular Malaysia and East Malaysia, having disbursed more than 50% of the RM200 million capital we set aside to fund energy transition for our clients. Given our track record in delivering these energy solutions and the existence of a strong sustainability framework, we are proud to announce that OPUS Energy is in the process of securing a green financing facility of up to RM75 million from RHB Bank to finance capital expenditure and other expenses in relation to Green Projects for our clients. This green instrument reduces the capital cost for our Zero CAPEX programmes. 2024 also saw us supporting our supply chain partners in various ways. Through our Vendor Development programme, we profiled our key suppliers based on their ESG practices and awareness. The result was used immediately to identify suppliers who requires capacity building to enhance their knowledge in sustainable procurement practices. We ran a pilot programme where we identified more than 20 of these suppliers and provided training on GHG emission calculation methodology with the intent to conduct supplier screening and compute Scope 3 data in our value chain. We also saw an increased take-up rate in our HSBC Supplier Financing Programme, supporting vendors with more accessible financing options and promoting responsible business practices across our supply chain. I am pleased to note that we strengthened the Supplier Financing Programme with HSBC Amanah Malaysia Bhd, leading to a 30% increase in take-up rate in 2024 compared to 2023. This has benefited G1 contractors by accelerating payments and improving our suppliers’ cash flows. In alignment with one of the key pillars of EoTF 2025, we continued our digital transformation journey in 2024. A key highlight was the continued scaling of Asseto, UEM Edgenta’s cloud based platform offering predictive maintenance, asset lifecycle management and sustainability solutions. We increased the coverage of the platform. From 35,000 assets managed through the platform in 2023 at 15 sites, Asseto now manages more than 36,000 assets from 30 sites, allowing us to collect a larger pool of data providing more accurate asset statistics and real time visibility on assets we manage. As we navigate increasingly competitive markets, we continue to adapt by forming strategic partnerships with international and local players, enabling us to meet global and local demands and enhance our competitive edge. Supplier and SME empowerment remains a key focus, as we actively support local entrepreneurs and integrate social enterprises into our supply chain to drive inclusive growth. We expanded OPUS Energy’s footprint in asset management and energy efficiency solutions through a partnership with HSS Engineering, combining asset management expertise with engineering and project management capabilities. We are also expanding our order book, building resilience in our operations and workforce, and repositioning our healthcare business beyond the concession business. With an ongoing focus on energy efficiency and the rollout of our Asseto platform, we will continue to help our clients embrace technology to futureproof their business. Looking ahead, we will remain dedicated to our core pillars, creating long-term value while continuing to lead by example in sustainable business practices. OUR COMMITMENT TO CLIMATE ACTION AND ENVIRONMENTAL STEWARDSHIP We are cognisant of relevant climate and environmentalrelated risks that UEM Edgenta is exposed to, alongside their potential impacts. We remain deeply committed to addressing climate and environmental risks and their impact on our business. We undertook various activities during the year and achieved key milestones in addressing our climate change and energy as well as environmental management material matters. Our net zero targets that we announced in 2023 form the core part of our climate change and environmental management action plan. We announced our commitment to reduce operational greenhouse gas emissions by 26% by 2030 and achieve net-zero emissions by 2050 aligning with the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Global Pathway. In the short term, we aim to reduce our emission by 18.45% between 2023 and 2028. Our decarbonisation strategy focuses on energy efficiency, renewable energy adoption, and fleet electrification, reinforcing our role in advancing environmental stewardship, supporting clients in meeting their sustainability goals, and contributing to Malaysia’s broader sustainability agenda. In the second year of our Net Zero pathway, we made tangible progress in reducing our emissions footprint. Our Scope 1 emissions decreased to 9,220.88 tCO2e from a revised baseline of 10,509.03 tCO2e, driven by efforts to optimise fuel consumption within our fleet and refrigerant use at our plants. Scope 2 emissions stood at 7,910.55 tCO2e against a revised baseline of 7,471.09 tCO2e. Although this is a slight increment from our revised baseline it still reflects our efforts to optimise energy consumption. This includes initiatives such as targeted energy conservation measures, including adjusting air conditioning and lift operations on Fridays at our headquarters, along with the installation of energy-efficient LED lighting. Driven by these combined efforts, this year we surpassed our Net Zero targets once again, reducing emissions by 4.72% in Scope 1 and 2 emissions from the revised baseline exceeding the annual reduction target of 3.69% in both Scope 1 and Scope 2 emission. We also reduced our carbon intensity per revenue earned between 2023 and 2024 given our improved business performance. We took the step to revise our baseline to include emission from entities we acquired in the Middle East ensuring our calculation process aligned with our net zero monitoring methodology and GHG emission protocols. The net zero monitoring methodology is a process we established in 2024 in accordance with the IEA, GHG protocols and industry best practices. Moving forward, we will develop a roadmap to collect Scope 3 data, develop a supply chain engagement plan to facilitate measuring our emission in our value chain and continue to monitor the progress of our net zero targets. Sustainability at UEM Edgenta UEM EDGENTA BERHAD 110 Integrated Annual Report 2024
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