058 KIMLUN CORPORATION BERHAD • SUSTAINABILITY STATEMENT Water Conservation and Alternative Sources Kimlun actively pursues alternative water sources and harvesting measures to reduce reliance on municipal supply across its construction sites and manufacturing operations. In FY2025, two rainwater collection pools with a combined capacity of approximately 42 m³ were constructed at the workers’ quarters of Project P796 (RMMJ Gelang Patah) for non-potable uses i.e toilet flushing and cleaning and reduce surface runoff. At Project P763, surface water was utilised as an alternative to treated municipal water (SAJ) for lorry tyre washing and road cleaning, with total consumption recorded at 939 m³ for the full year. Plans are also underway to extend surface water runoff utilisation at SPC’s Ulu Choh manufacturing facility, pending regulatory permit approval. To minimise the environmental impact of wastewater discharge, all sites implement on-site treatment measures including sediment basins and silt traps prior to any discharge. We continue to implement robust and effective control measures to ensure strict compliance with all water quality and quantity permits, regulatory standards and environmental requirements. There is zero non-compliance with water quality were recorded FY 2025. The Group is concurrently strengthening its data collection procedures for rainwater harvesting and alternative water source tracking to improve the completeness and accuracy of future reporting. Indicator Water Management Unit FY2023 FY2024 FY2025 Total Water Consumption Megalitres 264.96 477.74 597.26 Waste Management Why It Matters Construction activities generate significant volumes of waste from concrete, steel, and timber offcuts to silt, sediment, and chemical run-off. Poorly managed waste contributes to land and water pollution, imposes regulatory risk, and undermines the social licence of construction sites within surrounding communities. Effective waste management enables Kimlun to reduce environmental harm, lower disposal costs, and recover value from materials that would otherwise be discarded. Risks Opportunities • Potential non-compliance with waste management regulations. • Higher disposal costs and inability to execute effective waste initiatives • Collaborating across the supply chain to reduce waste and associated costs. • Potential of turning waste into value and creating new revenue streams. • Potential revenue from recycled materials • Reduced disposal cost Management Policies Waste management at Kimlun is governed by the Group’s ISO 14001:2015 Environmental Management System. Hazardous waste, which is minimal in volume, is managed exclusively through licensed contractors approved by Malaysia’s Department of Environment (DOE). Non-hazardous waste is segregated at source across construction sites for reuse, recycling, or sale to registered waste contractors. Kimlun collaborates closely with its contractors and subcontractors to ensure compliance with internal waste management standards and is actively developing formalised data collection procedures to strengthen waste reporting.
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