Kimlun Corporation Berhad Annual Report 2024

SUSTAINABILITY STATEMENT WASTE MANAGEMENT The company primarily produces non-hazardous waste such as wood, steel, and concrete, which is segregated at construction sites for reuse, recycling, or sale to waste contractors. Hazardous waste is minimal and managed by licensed contractors approved by Malaysia’s Department of Environment (“DOE”). Kimlun collaborates closely with contractors and subcontractors to ensure compliance with internal waste management standards. To enhance waste management, Kimlun Group is developing data collection procedures and has implemented key measures at construction sites, including: • Segregation of construction and non-construction waste. • Silt traps for sediment collection. • Wash troughs for vehicle tire cleaning by trapping soil and sediment at the construction sites including preventing chemical and hazardous material runoff. • Road cleaning with high-power water jets to break up hardened deposits and remove debris, dust, and contaminants from road surfaces. • Temporary earth drains to prevent pooling of water which can carry construction waste into public roads and storm drains. Earth drains collect loose materials like gravel, sand, and silt, preventing them from clogging municipal drainage systems. • Sustainable Urban Drainage Systems (“SUDS”) where relevant to manage stormwater and control water runoff quality. Kimlun believes that through our IBS, we are able to provide a promising solution to our customers to control offsite production and effective management of resource utilisation. By producing components in a controlled factory environment, IBS enables precise material measurement and cutting, which significantly minimizes waste. Furthermore, standardized production processes ensure consistent quality and reduce errors, thereby cutting down on rework and scrap material. Overall, these efficiencies lead to lower material waste and a more sustainable construction process. Additionally, completing a significant portion of construction off-site minimizes on-site activities that typically generate dust, noise, and debris, thereby reducing pollution levels around the construction area. GHG EMISSIONS At present, Kimlun estimates and reports greenhouse gas (“GHG”) emissions from fossil fuel consumption (“Scope 1”) and purchased electricity consumption (“Scope 2”). Kimlun is committed to improving the accuracy and completeness of emissions estimation and plans to expand reporting to include Scope 3 after we have performed a thorough assessment on our Scope 3 category emissions for the Group. The Group’s total emission is summarized in the table below: Emissions Management Energy source FY2024 (tCO2e) 1 FY2023 (tCO2e) 1 Scope 1 13,316 8,809 Scope 22 3,915 2,386 Scope 1 and Scope 2 17,231 11,195 Note: 1 Includes carbon dioxide, methane, and nitrous oxide 2 Grid Emission Factor (“GEF”) in Malaysia (2017-2022) of 0.774 Gg CO2e/ GWh (Peninsular Malaysia) MOVING FORWARD Kimlun Group remains steadfast in our commitment to sustainability as we continue to integrate ESG principles into our business operations. Moving forward, we will enhance our efforts to minimize our environmental footprint through responsible resource management, waste management and carbon emission management. Our focus on workplace operational health and safety, employee well-being and training will further strengthen our social impact, while strong corporate governance and ethical business practices and will guide our long-term success. 044

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