056 KIMLUN CORPORATION BERHAD • SUSTAINABILITY STATEMENT Our Approach Kimlun advances resource efficiency through three principal strategies: industrialised construction, sustainable materials sourcing, and rigorous quality management. Industrialised Building System (IBS) IBS is central to Kimlun’s resource efficiency model. By manufacturing structural components in a controlled factory environment before on-site assembly, IBS delivers measurable advantages over conventional construction: • Precision fabrication reduces material wastage relative to traditional site-based methods. • Standardised manufacturing processes lower resource intensity and pollution. • Shorter on-site construction durations reduce disruption to surrounding communities and lower site-related resource consumption. • Reduced dependence on manual labour mitigates workforce-related risks and social impacts. Sustainable Materials Kimlun incorporates sustainable concrete mixes across its projects where client specifications permit, for example, utilising Pulverised Fuel Ash (“PFA”) or Ground Granulated Blast Furnace Slag (GGBS) play important roles on green building certification. At SPC’s Precast Manufacturing Plant, PFA and Ground Granulated Blast-Furnace Slag (“GGBS”) are used as partial cement replacements for precast products supplied to Singapore clients. Both materials are repurposed industrial by-products, reducing embodied energy and carbon in our manufacturing processes. SPC holds certification from the Singapore Green Building Council for its Ready-Mix Concrete in precast production. Quality and Cost Management Kimlun maintains a rigorous quality management framework to minimise material rejection, rework, and waste. Preproduction planning and quality controls at SPC’s precast manufacturing operations target a product rejection rate of no more than 1%. Our FY2025 and FY2024 rejection rate was 0.19% and 0.66%, respectively, reflecting increased effectiveness in process discipline. We apply a structured supplier and subcontractor assessment process to ensure high-quality partnerships that uphold both our performance standards and resource efficiency objectives. Progress Energy Management Kimlun’s energy consumption spans vehicle fuel (diesel and petrol), diesel for construction equipment and site generators, and electricity procured from Tenaga Nasional Berhad (TNB) and Sarawak Energy Berhad (SEB). Systematic energy tracking commenced in FY2023 based on fuel purchases and electricity consumption data. To reduce the reliance of grid energy, solar panels were installed at SPC Industries Ulu Choh in October 2024, while solar powered lighting for external area at project sites and the Company is replacing old lighting system with LED lights in phases at Kimlun’s office.
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