5 ENHANCING VALUE THROUGH SUSTAINABILITY 143 OUR APPROACH Guided by the FTSE4Good Environmental, Climate and Carbon (ECC) framework, UEM Edgenta adopts a structured and forward-looking approach to reduce its environmental footprint while supporting wider decarbonisation objectives across the markets in which it operates. The Group has reaffirmed its commitment to addressing climate change and reducing greenhouse gas (GHG) emissions across its operations. To support this, it has strengthened its climate governance and carbon management practices, as highlighted in the pull-out below. CLIMATE CHANGE WHY IT MATTERS Climate change presents material risks and strategic considerations for UEM Edgenta due to the breadth of assets, services and geographies in which the Group operates. Physical impacts such as extreme weather, rising temperatures and flooding have the potential to disrupt operations, affect asset performance and increase maintenance and insurance costs. Transition-related pressures, including evolving regulations, higher compliance standards and changing client expectations, also influence how the Group plans, invests and delivers services. If not managed effectively, these factors could weaken operational reliability, supply chain stability and long-term financial performance. At the same time, climate change is reshaping market needs and creating demand for more energy-efficient, resilient and sustainable infrastructure and services. This shift creates opportunities for UEM Edgenta to strengthen its value proposition by supporting clients in reducing emissions, improving resource efficiency and adapting assets to climate-related risks. By integrating climate considerations into business strategy and operations, the Group is able to limit its own environmental footprint while helping clients enhance the resilience and sustainability of their facilities. In support of this direction, the Group has enhanced policies and practices that reflect its commitment to address climate-related impacts, including impacts tied to greenhouse gas (GHG), and promoting responsible environmental management. These standards extend beyond internal operations to business partners and procurement activities, reinforcing a consistent approach across the value chain. Through disciplined climate management and solution-driven services, UEM Edgenta positions itself to manage emerging risks, respond to regulatory and market developments and contribute meaningfully to the transition towards a lowercarbon and more resilient economy. Enhanced Sustainability Policy The Group’s Sustainability Policy has been updated to reinforce environmental and climate-related provisions, including the treatment of climate change as a material business risk and opportunity, the commitment to net zero greenhouse gas emissions for Scope 1 and Scope 2 by 2050 and alignment with national and global climate frameworks such as the Paris Agreement, Malaysia’s climate goals and IFRS sustainability standards. As a Group 2 issuer, we will begin disclosing sustainability‑ and climate‑related risks and opportunities in accordance with IFRS S1 and S2 from FY2026, with a two‑year transition period before full reporting is required in FY2028.
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