UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 MANAGEMENT DISCUSSION & ANALYSIS 81 80 Our aim is to be a sustainable business that takes responsibility on managing our climate footprint towards the environment and climate change to minimise negative impacts. Given the evolving challenges brought by climate change – from extreme weather, tighter regulations and higher public and investor expectations, our approach enhances portfolio resilience. This approach will provide competitive advantage in the market place while also attracting and engaging younger generation of employees. Our environmental practices are fundamental to our whole business: • It is supported by our Quality, Health, Safety, Security and Environment (“QHSSE”) Policy and Sustainability Policy; • There is a commitment to managing and reducing the environmental impact across our value chain; and • Our businesses are constantly assessed to maintain their certifications in compliance with ISO 14001:2018 - Environmental Management System and ISO 9001:2015 - Quality Management System Solar Panels at Menara UEM Installed photovoltaic solar panels on the roof of Menara UEM which reduced our electricity consumption by approximately 4.5% from FY2020 to FY2021 Renewable Energy We continue to demonstrate that using clean energy to power operations is beneficial not only to the environment, but also to business. Our efforts in harnessing the benefits of renewable energy remain promising, showing results on an annual basis. Energy Efficiency A key area for us in terms of managing energy consumption is lowering the energy demands of our assets. We share the benefits of greater efficiency with our customers, helping them to reduce their energy bills. Over time, we have worked to reduce our energy requirements through active energy management at our sites. We focus not only on energy used within landlordcontrolled areas, but also on energy used by our customers when sub-metered from landlord suppliers. This allows us to examine every relevant aspect of an asset and then collaborate closely with our customers and partners to find and implement better ways to manage energy consumption. Energy Performance Contracts Through our EPC, we collaborate with customers to reduce their carbon emissions and overall energy expenditure. The EPC covers: • Lighting system retrofiting to replace existing lighting with LED lighting; • Chiller plant retrofiting by optimising Air-Conditioning and Mechanical Ventilation systems. This includes the replacement of inefficient chillers with high-efficiency chillers with Variable Speed Drives; • Air compressor plant retrofiting to improve energy efficiency, system reliability and decreasing operating cost. In 2021, we expected to achieve approximately 38 million kWh in annual energy savings from our 11 EPC projects, with potentially RM16 million of total annual electricity cost savings for our clients. This is a substantial increase in energy savings when compared with our performance between 2017 and 2020, where we only achieved a cumulative 81.4 million kWh in energy savings for our clients. 11 EPC Contracts 37,186.157 kWh Total Energy savings RM16,246,155 Total Annual Electricity Cost Saving for Clients SmartConnect Our SmartConnect platform enables real-time monitoring of energy consumption on all floors within a building and benchmarks the consumption against the Building Energy Index. Collection of data and monitoring of energy use is made possible through the connectivity of all critical building support systems. Developed by our Property & Facility Solutions division, SmartConnect leverages on AI which allows advanced Energy Management on the digital platform with machine learning for prescriptive analytics. BUNDLED FEATURE 1. Asset Management • Asset and Area Management • Inventory Management 2. Facilities Management • Scheduled Maintenance • Corrective Maintenance • Mobile Workforce 3. Client Management • Client Portal • Dashboard Reporting 4. Workforce Management • Auto Assign • Geotracking YEAR 1 ASSET-LOT INTERFACE 1. Chiller 2. Air Compressor Monitoring System 3. Energy Monitoring System 4. Production Monitoring System 5. Boiler Monitoring System 6. Effluent Treatment Monitoring System 7. File System Monitoring 8. Feedback Management System 9. Toilet Demand Inspection System 10. Indoor Air Quality Monitoring ADDITIONAL BUNDLED FEATURES 1. Smart Notification 2. Predictive Analytics YEAR 3 AUTONOMOUS BUILDING 1. Prescriptive Analytics 2. Artificial Intelligence 3. Machine Learning 4. Inventory 5. Mining Machine 6. Production Process Automation YEAR 5 SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT In FY2021, four clients’ buildings managed by us obtained GBI Certification. Certified green building have lower total annual energy demand as the mechanical system installed are optimised to provide high energy consumption efficiency. Property & Facility Solutions' client facilities' average environmental impact reduction in 2021 OUR CARBON EMISSIONS Since 2018, we have been monitoring our GHG emissions based on the following metrics: Scope 1: Emissions from petrol and diesel fuel consumption from UEM Edgenta’s fleet of vehicles. Scope 2: Emissions from our buildings’ electricity consumption Scope 3: Business travel and water consumption emissions For FY2021, our overall GHG emissions were lower compared to 2019. This was primarily due to the impact of the COVID-19 global pandemic, which resulted in a reduction in office-based work, as well as vehicle and air travel. Moving forward, our commitment to reducing our carbon footprint across our supply chain will continue through the provision of smart and sustainable solutions for our clients, improving GHG reduction initiatives and optimising energy consumption. Furthermore, we will enhance our GHG emissions measurement and monitoring to enable us to set defined targets for the future. 27% Reduction in Electricity Consumption 20% Increase in Chiller Coefficient of Performance 12 Tonnes of Recyclable Waste diverted from landfills annually 11% Reduction in Water Consumption 430 KG of Organic Waste diverted from landfills daily More than 10 GBI-certified Green Buildings CLIMATE CHANGE AND ENERGY (Year 1 refers to FY2020)
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