ANNUAL REPORT 2025 055 SUSTAINABILITY STATEMENT Kimlun Group aspires to be the leading one-stop provider of sustainable construction design and build services. We recognise our responsibility in shaping the built environment and take deliberate steps to deliver outcomes that promote long-term ecological balance and enhance community well-being. Kimlun recognises that climate change, pollution, waste generation, water consumption and the use of natural resources are interrelated environmental considerations arising from its construction activities. The Group is committed to managing these environmental and climate-related risks responsibly, in compliance with applicable laws and regulations, while progressively improving environmental performance and resource efficiency across its operations. Sustainability is embedded at the core of our operations. Across our construction, engineering, and building materials businesses, we pursue eco-friendly solutions that minimise environmental impact through reducing pollution, managing raw materials, water, and energy responsibly, and integrating circular economy principles into our project delivery. A significant milestone in this journey was the accreditation of our Construction and Engineering Division (KLSB) with ISO 14001:2015 Environmental Management System certification in December 2024. This complements the ISO 14001 certification already held by our precast concrete and manufacturing arm, SPC, affirming Group-wide environmental management rigour across both construction and manufacturing operations. All project sites and factories for KLSB & SPC are covered by ISO 14001:2015 Environmental Management System. RESOURCE MANAGEMENT Why It Matters Construction and manufacturing are inherently resource intensive. The extraction, processing, and use of raw materials including cement, aggregates, steel, and water carry significant environmental cost in terms of energy consumption, carbon emissions, and ecosystem disruption. For Kimlun, responsible resource stewardship is not only an environmental imperative, but a strategic business priority as optimising resource use directly reduces project costs, improves quality, and strengthens our competitiveness. Risks Opportunities • Use of non-sustainable materials increasing our carbon footprint and resource depletion, undermining our long-term sustainability goals. • Vulnerability to supply chain disruptions such as material shortages, delays or price fluctuations, which may impact project viability and increase costs. • Affects cost structure, Supply chain resilience, green branding, and the quality of product due to low product rejection rate • Promoting efficient use of resources and materials that can be reused, repurposed or recycled to minimise waste, to explore the reuse of waste concrete. • Driving innovation using IBS to increase efficiency and reduce wastage • Ensure quality of resources used, benchmark against Quality Assessment System in Construction (“QLASSIC”) in Malaysia and Construction Quality Assessment System (“CONQUAS”) in Singapore. Management Policies Kimlun’s environmental management is governed by its ISO 14001:2015-certified Environmental Management System, which establishes the policies, objectives, and controls applicable to both KLSB and SPC. Resource consumption targets, supplier assessments, and procurement standards form an integral part of project planning and execution, overseen by dedicated quality control and procurement teams benchmarked against QLASSIC (Malaysia) and CONQUAS (Singapore) standards. ENVIRONMENTAL STEWARDSHIP
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