AL-SALAM REIT ANNUAL REPORT 2021

A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 96 SUSTAINABILITY STATEMENT To manage its impact on climate change, the REIT has installed solar panels as a trial project in Pasaraya Komuniti @Mart Kempas. This project is ongoing and expected to be completed in February 2022. With the installation of these solar panels, the REIT will not only be reducing its GHG emissions, but will also benefit from a 20% discount on tariff rates. Waste and Effluent Management Waste most commonly associated with operational buildings is municipal waste consisting of domestic and food waste. From the environmental point of view, the major impacts include potential water contamination, and the release of greenhouse gases such as carbon dioxide, carbon monoxide and methane whereas socially, public health is a concern. Al-Salām REIT is aware of the impact of improper management of waste. Across its properties, the REIT has engaged licensed contractors to collect and dispose of waste in accordance to relevant legal requirements. While the REIT understands that a large part of managing waste efficiently is tracking and recording the amount of waste generated from properties, it has not implemented any measures to do so yet. Water intensity is the amount of water used in a given area Water Management As a REIT, an undisrupted supply of water is crucial for the business. While Malaysia is not a water-stressed region, the nation is no stranger to water shortages and supply disruptions as a result of pollution by industries. Within its properties, the REIT has identified the improper use of water to be a major impact associated with operations. To manage these risks, the REIT is committed to minimising water wastage by reducing total water consumption and water intensity. Efficient water management also translates to less energy which also reduces carbon footprint, and lowers overall operational cost. The REIT’s strategy to manage water within its property portfolio is to raise awareness among tenants, customers/shoppers, service providers and cleaners on responsible water usage. Awareness is created by posters displayed throughout food courts, common areas, and toilets. As a result of these initiatives, the REIT has noticed a year-on-year reduction in water consumption within its properties. Water Consumption, m3 FY2019 FY2020 FY2021 KOMTAR JBCC 153,192 87,426 70,644 Menara KOMTAR 25,780 21,703 19,013 Pasaraya Komuniti @Mart Kempas 19,461 24,815 32,326 * The drastic increase in water consumption from FY2019 to FY2020 for Pasaraya Komuniti @Mart Kempas was caused by a faulty water meter, resulting in lower readings in FY2019. In this reporting period, the REIT calculated its water use intensity to better understand consumption patterns within lettable areas of its properties. Akin to the water consumption data, the results show a steady decrease in water use intensity at KOMTAR JBCC and Menara KOMTAR, and an increase at Pasaraya Komuniti @Mart Kempas.

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