UEM EDGENTA BERHAD Integrated Annual Report 2025 144 Carbon Management Enhancements The carbon budgeting process continued to guide emissions management in FY2025, supported by the launch of an internal carbon pricing pilot. An internal carbon price of RM15 per tonne of CO₂e was applied to emissions exceeding the Group’s annual carbon budget. This mechanism serves as an internal management and decision-support tool, designed to strengthen awareness of transition risks and reinforce accountability for emissions reduction. It is intended to complement, rather than replace, any future regulatory carbon pricing measures. Carbon Performance Monitoring In FY2025, the Group also introduced carbon intensity monitoring as an additional performance indicator. Carbon intensity is measured using revenue (tCO₂e / RM revenue) as a normalisation metric and is applied as an internal monitoring tool alongside absolute emissions tracking. This provides further insight into emissions efficiency as the business grows and supports closer linkage between carbon management and financial performance. Carbon budgeting continues to function as both a performance and risk management mechanism, supporting the tracking of emissions against Net Zero targets while assessing exposure to energy price volatility and transition risks. Ongoing efforts focus on strengthening the measurement and management of Scope 1, Scope 2 and relevant Scope 3 emissions, enhancing internal monitoring of carbon intensity and exploring carbon pricing mechanisms as a future decision-support tool. Together, these measures embed climate risk and opportunity management within enterprise risk management and operational planning, reinforcing resilience, informed capital allocation and long-term sustainability performance. Net Zero Commitment and Emissions Management Our commitment to managing emissions is guided by a decarbonisation approach anchored on six strategic levers that focus on reducing energy use, improving operational efficiency and supporting the transition to lower carbon operations. The Group is committed to achieving its Net Zero ambition, aligned with the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Global Pathway through systematic measurement and monitoring of Scope 1 and Scope 2 emissions against baseline year, 2022, across all business units, including international operations. Consistent data collection provides a clear baseline for performance tracking and informs decision-making on energy use, operational efficiency and investment priorities. Decarbonisation Strategy & Targets Strategy The Group’s decarbonisation strategy is integrated into annual carbon budgeting and financial planning, supported by ESG Key Performance Indicators. Key levers guiding implementation include: • Green materials to reduce embedded carbon in operations and projects • Energy efficiency measures to lower consumption across facilities and assets • Green transport initiatives, including the transition to low-emission and electric vehicles • Green building practices to improve energy and resource performance • Clean and renewable energy adoption, including solar and other low-carbon sources • Carbon removal and offset solutions to address residual emissions Short-Term Targets (2023–2027) In the near term, the Group targets an annual reduction of 3.69% in Scope 1 and Scope 2 emissions. This will be driven by practical actions such as: • Energy efficiency upgrades, including lighting modernisation and HVAC optimisation • Low-emission transport solutions and more efficient logistics • Energy-saving systems introduced in selected facilities These initiatives prioritise achievable reductions while building capability for more advanced decarbonisation measures. Medium- to Long-Term Targets (2028–2030) The Group aims for a cumulative 26% reduction in emissions by 2030. Progress toward this objective will be supported by wider deployment of renewable energy, greater use of lowcarbon materials and the development of solutions for carbon removal and offsetting. MINIMISING ENVIRONMENTAL IMPACT
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