060 KIMLUN CORPORATION BERHAD • SUSTAINABILITY STATEMENT Risks Opportunities • High operational emissions arising from construction activities, heavy machinery, transportation, and logistics may increase the Group’s overall carbon footprint. • Potential carbon pricing mechanisms, such as carbon taxes or emissions trading schemes, could increase operational costs and impact the Group’s profitability. • Rising costs of compliance with climate-related regulations and standards. • Failure to meet Malaysia’s national climate commitments, including Malaysia’s emissions reduction targets, which may expose the Group to regulatory scrutiny, reputational risks, and stakeholder expectations. • Gaining operational savings from energy and carbon management solutions (e.g. smart metering, real time monitoring and energy efficiency audit). • Reducing carbon footprint through effective carbon avoidance strategies. • Preserving a reputation of compliance with energy and carbon regulations set by the government and relevant authorities. Management Policies The Board of Directors oversees climate-related matters, supported by Management, and recognises climate change as a material risk to the Group’s operations. Kimlun is committed in managing greenhouse gas emissions, improving energy efficiency and mitigating climate-related risks. We support strong national climate policies and regulations aimed at reducing greenhouse gas emissions and advancing Malaysia’s transition toward a low‑carbon, climate‑resilient economy. Our company aligns with the Paris Agreement, Malaysia’s Net Zero 2050 aspiration, and emerging requirements for green construction, energy efficiency, and climate‑related disclosures. Kimlun’s GHG inventory is prepared in accordance with the GHG Protocol Corporate Accounting and Reporting Standard and the GHG Protocol Corporate Value Chain (Scope 3) Standard. Emissions are currently estimated and reported for Scope 1 (direct emissions from fossil fuel combustion), Scope 2 (indirect emissions from purchased electricity) and Scope 3 (all other indirect emissions resulting from business activities across the value chain) for Category 6, Business travel and Category 7, Employee Commuting only. The Group is committed to expanding the completeness and accuracy of its inventory and intends to extend reporting to Scope 3 categories following a structured assessment of material upstream and downstream emission sources. Emissions data is reviewed internally and disclosed in this Sustainability Statement. Our Approach In the near term, Kimlun’s approach to GHG management focuses on building a robust measurement foundation, while pursuing emissions reduction through operational efficiency. Key levers include: • Energy efficiency improvements across construction sites, factories, and offices. • Continued adoption of IBS to reduce on-site energy and fuel consumption. • Substitution of carbon-intensive materials with lower-emission alternatives such as PFA and GGBS in concrete production. • Progressive expansion of GHG reporting boundaries to include Scope 3 as data quality and coverage improve. The increase in GHG emissions in FY2025 reflects higher operational activity during the year, including increased number of projects in operations, use of construction machinery, vehicles, and electricity across project sites.
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