ANNUAL REPORT 2025 059 SUSTAINABILITY STATEMENT Our Approach Kimlun applies a multi-layered approach to waste reduction and site pollution control across its construction operations: • Waste segregation — construction and non-construction waste are separated at site for appropriate handling and recovery. Launching of 3R Campaign at project site starting December 2025. • Silt traps — installed to capture sediment and prevent discharge into drainage systems and public roads. • Wash troughs — deployed for vehicle tyre cleaning, trapping soil, sediment, and preventing chemical or hazardous material run-off. • High-pressure road cleaning — water jet systems remove hardened deposits, debris, dust, and contaminants from adjacent road surfaces. • Temporary earth drains — prevent pooling and contain loose materials such as gravel, sand, and silt from entering municipal drainage infrastructure. • Sustainable Urban Drainage Systems (“SUDS”) — implemented where relevant to manage stormwater and improve run-off water quality. IBS is also a key enabler of waste minimisation. Prefabrication in a controlled factory environment allows precise material measurement and cutting, significantly reducing offcuts and scrap. Standardised production processes lower the incidence of errors and rework, further reducing material waste. By completing a greater share of construction activity off-site, IBS also reduces on-site dust, noise, and debris generation, diminishing pollution impacts on surrounding communities. Progress FY2025 marks the first year the Company tracked and disclosed waste generation and management data, following the identification of waste management as a material sustainability topic for Kimlun. Indicator Waste Management Unit FY2023 FY2024 FY2025 Total amount of waste generated MT - - 30,119.14 Total waste diverted from disposal MT - - 401.89 Total waste directed to disposal MT - - 29,717.25 Greenhouse Gas (“GHG”) Emissions Why It Matters Climate change poses systemic risks to the construction and built environment sector from physical risks such as extreme weather events disrupting project delivery, to transition risks arising from tightening carbon regulations and evolving client and investor expectations. At the same time, the transition to a low-carbon economy presents strategic opportunities: demand for green-certified buildings, lower-carbon construction methodologies, and sustainable materials is growing rapidly. Proactive GHG measurement and management positions Kimlun to manage regulatory exposure, respond to client requirements, and contribute meaningfully to Malaysia’s national climate commitments.
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