2024 UEM Edgenta Annual Report

With the growing urgency of climate change, we anticipate increased regulatory action around environmental issues in the coming years, both within Malaysia and around the world. With our proactive investments in reducing our operational impacts, we are well positioned to remain competitive during this transition. Moreover, by integrating sustainability and climate action as a core consideration within our products and solutions, we have aligned environmental impact and business growth – enabling sustainable growth and responsible practices to work in tandem. As part of our commitment to achieving Net Zero, we are actively measuring our Scope 1 and Scope 2 emissions, and are in the process of developing a comprehensive roadmap to address Scope 3 emissions. We are also taking necessary steps to align with the International Sustainability Standards Board’s (ISSB) S1 and S2 climate-related disclosures, ensuring we are prepared for the evolving regulatory landscape and contributing to global climate goals OUTLOOK THE TRANSITION TO A LOW-CARBON ECONOMY The momentum for decarbonisation continues to grow, driven by increased regulatory stringency and growing pressure from investors, customers and other stakeholders. In 2024, Malaysia introduced key environmental regulatory reforms aimed at promoting environmental action. The Environmental Quality (Amendment) Act 2024 significantly increased penalties for offences such as illegal waste disposal and open burning, while the Energy Efficiency and Conservation Act (EECA) 2024, effective from January 2025, mandates large energy consumers to appoint registered energy managers, implement energy management systems, and submit annual reports. The proposed climate change bill in Malaysia, expected to be tabled in 2025, will further accelerate the urgency for businesses to adopt climate adaptation and mitigation measures. For UEM Edgenta, this could result in new compliance requirements and greater demand for sustainable solutions in infrastructure and energy management. These developments heighten pressure on leading companies to step up their environmental and climate action agendas. Risk: Opportunities: Non-compliance with environmental regulations or standards could lead to loss of access to international markets, difficulties in securing renewals and diminished reputation amongst clients Failure to address climate-related risks could lead to significant physical impacts, such as stranded assets or damage to premises we occupy Additionally, transition risks related to the shift towards a low-carbon economy could result in increased costs, regulatory burdens, and market disruptions, impacting business operations and profitability Growth opportunities in providing solutions that reduce facility owners’ environmental impact Driving long-term growth by establishing ourselves as an industry leader in sustainability Response: • Continuing to reduce our environmental impact through long-term initiatives in emissions, energy, waste and material use reduction • Supporting our suppliers in transitioning to low-carbon and environmentally friendly practices • Supporting our clients’ low-carbon transitions through purpose-fit solutions such as the Zero Capex Programme, which funds companies seeking to undertake energy efficiency projects with zero upfront cost • Integrating circular economy solutions into our business, such as our Recycled Asphalt Plant (RAP) in Tapah, which repurposes road milling waste into eco-friendly materials to pave roads LINK TO Capitals Material Matters Risks Stakeholders M5 M6 S2 S5 S3 S6 S4 R7 Key Market Trends STRATEGIC REVIEW UEM EDGENTA BERHAD 64 Integrated Annual Report 2024

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