5 ENHANCING VALUE THROUGH SUSTAINABILITY 153 OUTLOOK Moving forward, climate change will continue to shape the environment in which UEM Edgenta manages assets and delivers essential services, presenting both risks and opportunities that have implications for operational resilience, regulatory compliance and long-term value creation. In response, the Group will further embed climate considerations into strategy, governance and business planning, while taking steps to strengthen the consistency, transparency and decision-usefulness of climate-related disclosures in alignment with ISSB IFRS S2 Climate-related Disclosures standard. In support of this, enhancements will be made to data systems and climate risk assessment processes to improve visibility over potential financial and operational impacts. Renewable energy adoption and other material climate initiatives will continue to be evaluated based on operational feasibility and strategic alignment. Sustainability Committees at the business unit level will support the implementation of Group-level priorities, ensuring climate considerations are reflected in day-to-day management and operational decision-making. Restatement of Baseline Emissions The Group measures greenhouse gas emissions twice yearly to identify data gaps and classification issues. A mid-year FY2025 review identified missing submissions, fuel misclassifications and site-level omissions across several business units. As a result, the Group restated its 2022 baseline from 17,980.11 tCO₂e to 18,012.03 tCO₂e, reinforcing data accuracy, methodological consistency and transparency in emissions reporting. Overall Emissions Performance Our Scope 1 and Scope 2 emissions in addition to Scope 3 totalled 64,114.49 tCO2e) Total Overall Emissions 2025 6,845.47 48,452.01 8,727.01 64,114.49 Scope 1 Scope 2 Scope 3 Our Performance against Net Zero Targets Year 2022 2023 2024 2025 Scope 1 10,508.43 10,031.63 9,220.88 8,727.01 Scope 2 7,503.61 6,835.08 7,914.48 6,845.47 Total Target Reduction 0 3.69% 3.69% 3.69% Actual Reduction 0 6.37% (4.89%) 13.54% * Restated Baseline 2022 figures have been restated and serve as the baseline year for the Group’s Net Zero targets. Emissions reduction performance is measured from 2023 onwards, with an annual target reduction of 3.69% until 2030. In 2023, the Group achieved a 6.37% reduction in combined Scope 1 and Scope 2 emissions, exceeding the annual target. In 2024, emissions increased, resulting in a 4.89% variance against the target due to operational factors. In 2025, the Group recorded a significant emissions reduction of 13.54%, substantially surpassing the annual target and demonstrating strong progress towards its Net Zero transition pathway.
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