ANNUAL REPORT 2023 91 MATERIALITY MATTERS (cont’d) ENVIRONMENTAL CLIMATE CHANGE AND EMISSIONS Climate change is considered a significant and material concern for MYEG, given its potential impacts on the environment, community and other valued stakeholders. The Group remains committed to mitigate, manage and minimise its environmental footprint to reduce the actual impacts and potential threats of climate change, in particular when it comes to the Group’s consumption of electricity and production of emissions. MYEG’s Board and Senior Management are aware of the escalating risks posed by climate change, and the Group’s structure ensures that the Board has key oversight over policies and the management of climate change-related matters. While MYEG’s primary business model of delivering electronic government and commercial services is generally not directly affected by climate change issues, the business model is also not resource-intensive in terms of energy and other natural resource consumption and therefore does not significantly impact the environment. However, the Group understands that the expanding foreign worker hostel business can lead to more energy and resource consumption and, consequently, emissions. Nevertheless, the Group intends to incorporate green building standards that pay attention to the use of resources such as water, to air quality and to waste management for its hostel projects, contributing toward minimising environmental impacts. Furthermore, in line with its business expansion plans, MYEG may see a short-term increase in its impact on climate change via vehicle emissions, in relation to its delivery fleet of cars and motorcycles to meet the growth in service demand. In the medium to long-term, however, MYEG’s application of blockchain technology will enable more services to become 100% digital and thus reduce the requirements for physical delivery to complete the last mile loop. Improved processes in turn lead to increased efficiency and productivity, which will translate into reduced energy consumption, reduced waste produced and other ecological benefits. Additionally, on the topic of blockchain technology, given the immense potential of Web3 solutions in mitigating climate change impacts, Zetrix has the capacity to serve as a platform that helps facilitate the emergence of a vibrant and accessible carbon credit market, facilitating carbon credit trading by smaller companies to monetise / offset their emissions. Specifically, Zetrix can be leveraged to enable the tokenisation of carbon credits, which then promotes for a simpler trading mechanism which smaller companies can afford. This is in contrast to conventional carbon trading platforms, including voluntary carbon markets which are more structured to meet the requirements of larger companies.Moving forward, the realisation of this potential application is one of many areas that will be explored in greater detail as the Group continues to position Zetrix as a platform capable of driving the global sustainability agenda. Meanwhile, the Board may also consider linking remunerations to the achievement of climate change and other sustainability targets via additional incentive-based remunerations. This will be further discussed by the Board. MYEG acknowledges that environmental impacts can extend beyond its direct control, stemming from the activities of its suppliers and business partners throughout the value chain. The Group has made a commitment to formulate a policy that prioritizes vendors providing Green Technology (“Greentech”) solutions and certified sustainable products and services. In addition to existing rigorous policies guiding the behaviour of third parties, the Group is actively exploring strategies to enhance effective engagement with its value chain. These commitments and initiatives are fortified by the establishment of MYEG’s Statement of Commitment to Addressing Climate Change Risks and Impacts that fully outlines the Group’s climate change commitments, targets, plans, effects on the Group’s business model and initiatives pursued in relation to MYEG’s supply chain. Please refer to the full statement for more details, which can be read under the “Sustainability” subsection at https://www.myeg.com.my/investor-relations/governance. SUSTAINABILITY STATEMENT
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