2022 UEM Edgenta Annual Report

MATERIAL UTILISATION Through our mindful approach to material utilisation, we place greater value on responsible and efficient consumption of materials and other resources relevant to our operations. This has led us to recycle and optimise our usage of other resources. With the asphalt industry having a significant environmental impact, we have set up a Pavement Research Centre which focuses on the research and development of innovative pavement materials and advanced maintenance techniques. Moreover, we have also constructed a Recycled Asphalt Premix Plant which serves as a recycling facility for asphalt. Furthermore, collaborations with business partners that share the same aspirations have been pivotal in helping us to implement breakthrough resource utilisation strategies, as illustrated below: The Pavement Research Centre and Recycled Asphalt Premix Plant Being the building block for infrastructure development, asphalt has long been a culprit of adverse environmental impact. In addressing this, we have embarked on a recycled asphalt programme with the Taiping Municipal Council in 2021. This programme was undertaken to better align our business operations with responsible material consumption practices by leveraging our PRC facility that focuses on research and development of various materials. Building upon the resounding success of the collaboration with Taiping Municipal Council, we have embarked on the construction of a Recycled Asphalt Premix Plant, which we expect to be operational by Q3 of 2023. The following performance disclosures reflect the progress we have made towards our material utilisation aims: Pavement Research Centre 13 variations of asphalt mixes tailored to the specific needs of our customers have been researched and produced. 8 out of 13 mixes laid on the PLUS Expressways are currently undergoing a 12-month test run and have shown promising performance thus far. 30% RAP and 100% RAP in hot and cold applications respectively have been developed for use by our companies, diverting a significant amount of asphalt away from landfills. Recycled Asphalt Premix Plant The plant, which is expected to be fully operational by Q3 of FY2023, is projected to drive up to 800 tonnes in CO₂ emissions reductions annually by decreasing the usage of virgin materials. We also aspire to commercialize the product and advocate for a greener road infrastructure in Malaysia.. MINIMISING ENVIRONMENT IMPACT Collaboration with PLUS Expressways and Cement Industries Malaysia Berhad (“CIMA”) for New Jersey Barriers T hrough an ongoing joint initiative with PLUS Expressways Berhad and CIMA, we are exploring the use of Fibre Reinforced Concrete in the construction of new jersey barriers to separate lanes. Within the year, the technical and commercial feasibility of the project was continuously explored. This includes efforts directed towards fine tuning and finalisation of product specifications along with discussions with the Malaysian road authorities (i.e., Jabatan Pengangkutan Jalan (“JPJ”)). Even though the project is still at an exploratory stage, we believe that this new material has the potential to optimise concrete quality and labour usage, reinforce other raw material components such as steel, and shorten construction periods for minimised heat, noise and air pollution. With that, we expect to implement the project progressively by phases from 2023 onwards. A s part of our unwavering dedication towards resource efficiency, we will continue to pioneer research and development undertakings towards utilising materials more sustainably, with a particular focus on the sustainable use of asphalt in the infrastructure industry. Ultimately, we are on the right track in minimising waste, thereby contributing to the road safety and security of the nation’s highways. WATER CONSUMPTION As part of our overall approach on water resource stewardship, we also monitor our water consumption as withdrawn from municipal water supply, which is mainly utilised by our office and other operations. To this effect, various water management initiatives are currently being implemented across our organisation, including: M onitoring mechanisms, and water management plans and procedures as the Group’s effort to reduce water consumption across all operations. • As a means to reduce the excessive usage of water, we have incorporated several water-saving measures such as the installation of water aerators in all faucets throughout the Group. • We have conducted briefings to raise awareness of the importance of water conservation and the implementation of practical water recycling solutions. Setting up a Natural Water Harvester project • The Natural Water Harvester is a collaborative water conservation effort between the Group and our customer, PLUS, that leverages facilities in the RSAs along the NorthSouth Expressway. Under this conservation plan, water management initiatives, rainwater harvesting systems and tube wells are employed to reduce costs. • During the reporting period, approximately 6,000 m3 of natural water was conserved from 11 rainwater harvester sites, 1 tube well and 1 river source. Looking forward, we plan to extend our rainwater harvesting system to all other RSAs in phases. Total water consumption across 49 sites in Malaysia, including Menara UEM 2019 2020 2021 2022 350,203.00 543,556.00 400,764.00 542,752.26 Note: 1 T he Scope 3 (water consumption) emissions data for FY2019 – 2021 is restated using standardised, published emission factors relevant to our business activities. To secure long-term water security, the Group will continue to implement organisation-wide monitoring mechanisms, water management plans and procedures, towards reducing water consumption across all operations MINIMISING ENVIRONMENT IMPACT We have recorded the following results with regard to water consumption during the year: p.146 p.147 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 SUSTAINABILITY STATEMENT

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