and Lighting systems etc. Energy savings (computed based on Investment Grade Audit guidelines) driven by such efficiency measures can, in turn, generate capital expenditure to finance more extensive renewable energy technologies. This is demonstrated by the implementation of Energy Conservation Measures (“ECMs”) identified through energy audits, gap analyses and building assessments, which provides tangible benefits such as electrical energy and cost savings which can be used to retrofit or optimise the system with more efficient energy technologies with data intelligence. • The repayment on the EPC projects is via shared saving model or fixed payment which can be offered through zero capex models with performance guarantee over the contract period. The shared savings on spend and duration of the contract are simulated over a financial modelling taking into account the asset’s life cycle costing. • In order to measure the efficiency of our EPC projects, measurable results are monitored real time via Energy Monitoring System with customised dashboard and verified annually via the International Performance Measurement and Verification Protocol (“IPMVP”) methodology, with the verification conducted by qualified experts. The Projects that the Group manages are also monitored via our Command and Contract Centre (“CnC”), which is the Central hub for the creation and implementation of IoT applications into the realm of facilities management through digital workforce. • To this end, we have undertaken 11 EPCs between 2016 to 2022, with a total contract value of RM110 million. During that same period, we have achieved 38,178,319 kWh energy savings per year, which translates into approximately RM16.2 million of total electricity cost savings for our clients per year. We manage nineteen (19) GBI and LEED-certified buildings at various certification levels. To complement these business offerings, value-added services such as calculations on ESG baseline and GHG inventory, development of net zero carbon building strategies and other green initiatives are provided to our clients. A s part of our GBI initiatives, more than 14 GBI buildings (e.g., the Petronas Twin Towers, Tune Hotel KLIA2 and the Prime Minister’s Office and etc.), continue to remain under our care. GPC solutions are guided by industry standards (i.e. Malaysian Standard 1525:2019) and focus on the six (6) pillars within GBI-Energy Efficiency, Water Efficiency, Indoor Air Quality and Innovation Sustainable Site Planning and Management (“SM”) and Materials and Resources, with priority/primary focus on the first four. These are integrated into our Facilities Management and Comprehensive Maintenance Programme to upkeep capital investments. Green Building Certification that we maintain for our clients is the LEED Certification. In the reporting year, a hospital that we maintain, Slim River Hospital, was accorded with a Platinum LEED rating. Sustainability projects are backed by robust risk and mitigation plans, Business Impact Analysis and comprehensive Standard Operating Procedures (“SOP”) before and after project implementation. MINIMISING ENVIRONMENT IMPACT With that, we have undertaken the following energy efficiency and green building initiatives during the year under review: O ur efforts and capabilities surrounding renewable energy solutions • The Group is a Registered Solar Photovoltaic (“PV”) Investor (“RSPV”)1 with the Malaysian Sustainable Energy Development Authority (“SEDA”), enabling us to implement renewable energy solutions through comprehensive energy audit evaluations, feasibility studies and viable funding models. • In order to keep abreast of evolving industry requirements, we remain in proactive contact with regulatory bodies (i.e., SEDA and Construction Industry Development Board (“CIDB”)), ensuring compliance with prevailing standards at all times. • Renewable energy solutions form an underpinning component of the services offered within our Property and Facility Solutions (“PFS”) and Healthcare Support business segments. Through these business divisions, we maintain commercial buildings and public healthcare assets across a broad client base including the Prime Minister’s Office in Putrajaya, Mercu UEM Petronas Twin Towers and Menara 3 and 47 of CIMB Group Holdings Berhad’s sites. U sage and maintenance of solar panels and solar thermal technology to generate renewable energy at Menara UEM and our Clients’ sites • The usage and maintenance of photovoltaic solar panels on the roof of Menara UEM, contributing to 4% of total electricity usage, wherein the Group’s electricity source is derived from the grid and solar panels installed. • Deploying photovoltaic solar panels at Hospital Sultanah Maliha as detailed further in our featured success story below. • The installation and maintenance of Solar Thermal that collect and concentrate sunlight to produce the high temperature heat needed to generate hot water, at Hospital Sultanah Bahiyah, Kedah. Provision of Energy Performance Contract services • EPC2 is an invaluable driver of our success in the energy solutions business, allowing well-founded, data-driven energy management programmes to be executed. These programmes are tailored to the specific needs of the client through a series of ESG-based assessments taking electrical consumption levels and other factors into consideration. • T hrough the evaluation, areas that could benefit from energy reduction strategies are highlighted, especially for Significant Energy Use (“SEU”) equipment such as Chiller, Air Compressor, 1 A Registered Solar PV Investor is allowed to operate as an investor under the Net Energy Metering (“NEM”) scheme by SEDA, offering Power Purchase Agreements (“PPA”) and services on solar leasing. 2 EPC is based on a profit-sharing agreement between the building owner and the Energy Service Company (“ESCO”) (in which case would be the Group), whereby upfront capital for energy efficiency projects is borne by the ESCO while asset owners make future repayments from cost savings. An additional EPC contract was secured during FY2022 which is expected to further contribute another 1.8 million kWh energy saving per year, translating to approximately RM0.7 million of total electricity cost savings per year for our client. ` Implementation of real-time monitoring of energy consumption • The Energy Monitoring System and the SmartConnect platform developed by our Property & Facility Solutions business segment uses real-time data on critical parameters to revolutionise energy management by employing machine learning for prescriptive analytics. The platform seamlessly integrates critical building support systems, enabling energy consumption across all areas within a building to be monitored in real-time and benchmarked against the Building Energy Index. Active energy management of third-party assets • We take a highly participative approach towards asset management, whereby all pertinent aspects are systematically evaluated and corroborated with on-site stakeholders (i.e., building owners, facilities manager or the operations team that manage the site), for continuous energy efficiency measures to be implemented. This includes providing qualified Energy Manager services for our existing Integrated Facilities Management contracts. MINIMISING ENVIRONMENT IMPACT Delivering integrated facilities management services Sustainable multi-faceted facilities management programmes are deployed throughout project lifecycles from design, supply, delivery, installation and testing to commissioning – working towards the goal of equipping buildings with Green Building certifications The average yearly environmental impact contributed to our clients includes between 10% to 52% reduction in energy consumption levels, 12 tonnes of recyclable waste diverted from landfills annually and approximately 430 kg of organic waste diverted from landfills daily Furthermore, with an annual pipeline of potential sustainability-focused projects valued at around RM300 million, an Energy Management System (“EMS”) has been integrated within our operations to support contracting agreements, energy monitoring, performance optimisation, energy baseline and Investment Grade Audits, aided by Internet-of-Things (“IoT”) and big data analytics capabilities Providing Green Performance Contracting (“GPC”) and Green Building Certifications Sungai Siput Hospital maintained by the Healthcare business became the first hospital in the world to receive the Malaysian Carbon Reduction and Environmental Sustainability Tool (“MyCrest”) certification with a 4-star rating. We also have the Energy Management Gold Standard whereby 32 healthcare facilities was accorded with a 3-star rating. p.134 p.135 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 SUSTAINABILITY STATEMENT
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