SAMPLE

BERHAD
IFRS Sustainability Reporting
Framework (Draft)

26 January 2025
IFRS
SUSTAINABILIT
Y FRAMEWORK

1
 Sustainability Framework

ABC Sdn
Bhd
1 Visio Vision
n To be an industry leading Engineering, Procurement, and Construction (“EPC”) solution provider.

Mission
2 Missio Be Safety & Environmentally responsible, provide excellent quality services, on time delivery of products and services, commitment to the
n shared success of
our employees, be the preferred partner to our suppliers and customers, and continuous development and growth of the company.

3 Key Environmental Social Governance

Pillars
 Occupational Health & Safety  Ethical Business Conduct
 Biodiversity
Material  Human Rights and Labour Practice  Product and Service Quality
4  Energy Management
Sustainabili  Human Capital Development
 Waste Management
ty
and Climat  Communities Investment
Ris e and
k
Opportuniti and Contribution
es

5 Stakeholde • Shareholders and • Customers • Government and • Local

rs investors • Contractors and Regulators communities
• Lenders/Financiers Suppliers • Employees

Reduce OHS Special attention to Protect labour Reduce

Minimise waste
issues, through waste management
6
Contribution training, via scheduled waste
generation rights and corruption and
through promote safe bribery in all
to workshops and collectors, ensuring
reduction, working their forms
drills waste is disposed
UNSDG according to recycling and environments
2
reuse
Agenda environmental laws
OUR EFFORTS
GOVERNANCE STRATEGY

We have established a robust sustainability Moving forward, the Group is gradually adapting
governance structure. Also outlining the roles and our strategic planning to address sustainability and
responsibility for managing sustainability and climate related matters.
climate related matters.

RISK MANAGEMENT METRICS AND TARGETS

Our existing ERM Framework has been The Group has started collating the industry
strengthened to include sustainability and climate specific metrics
related matters into considerations.

The Group will focus on matters that may be

financially material. We are building our internal
capabilities to use climate scenario analysis to
measure the potential impact.

3
SUSTAINABILIT
Y FRAMEWORK
COVERAGE

4
SCOPE AND COVERAGE
The framework shall cover the following areas/
subsidiaries:
a. All XXX products manufactured and sold by the
Group
b. Geographical area were the Group currently
present
c. XXXX
The scope shall not cover the following operation/ areas/ subsidiaries/ entities:
a. XXX
b. XXXX
c. XXXX

The parameters of subsidiaries are not material as compared to the Group manufacturing operations in
Malaysia.
If there are any changes to the Group structure due to acquisition of new subsidiaries and/or expansion plans
to other foreig n countries, this Framework will need to be updated.

5
SUSTAINABILIT
Y POLICY
STATEMENT

6
POLICY STATEMENT
This policy statement applies to all operations of the Group and its subsidiaries and companies which it
exercises management control.

Planet/Environment People/Social Profit/Governance

Commitment towards achieving Manage the impacts of the Group Upholding good corporate governance
the nationwide goal of Net Zero by on its stakeholders, particularly its with an emphasis on
2050 and reducing any adverse employees, contractors, consultants, transparency and accountability to
environmental impact arising from the suppliers, and local communities. implement ethical and efficient
Group’s operations.  Promotion of inclusivity in business practices of the utmost
 Incorporate environmental and the workplace and equal integrity.
climate change impacts and opportunities for hiring;  Emphasis on transparency to
concerns into our  Support local companies, maintain the trust and
decision-making and actions; adopt a confidence of our stakeholders.
 Comply with relevant statutory 100% local procurement; and  Fostering a culture of ethical
and regulatory  Compliance with Malaysian business
requirements in labour laws. conduct across our operations.
environmental-related matters;  Implementation of stringent
 Prevent and mitigate measures to ensure all
environmental applicable laws and regulations
impacts through management are complied with.
of natural resources and
implement initiatives to reduce
wastage;
 Reduce operational inefficacies in
our businesses to minimise 7

operational Greenhouse Gas

(“GHG”) emissions.
SUSTAINABILIT
Y GOVERNANCE
STRUCTURE &
RESPONSIBILIT
Y

8
 GROUP’S SUSTAINABILITY GOVERNANCE STRUCTURE
Key Role &
Responsibility
 Reviews and approves overall strategic plans whilst maximizing
Board of Directors stakeholders value through the management of environmental, social
and governance (“ESG”) and climate related risk and opportunities
arising from its operations
⚫ Oversee the management of material sustainability matters,
Board Sustainability and Risk including climate- related risks and opportunities
Management Committee Internal Audit ⚫ Provide independent assurance on the sustainability disclosures

⚫ Accountable for the development and implementation of sustainable

strategies
⚫ Evaluate overall sustainability risks and opportunities, including a
focus on climate-
Sustainability Working related issues
Group ⚫ Provides status updates on sustainability performance
Sustainabilit ⚫ Chaired by Executive Director/Deputy CEO and supported by
yCoordinato respective
⚫ Supports HODs
the to
Sustainability Working Committee and HODs
Consist of the following r achieve the sustainability objectives.
HODs
Head of Departments ⚫ Represented by HODs and representatives from various departments
across all
(“HODs”)
business divisions.
Legal & Corporate Project ⚫ Sets the scope of sustainability management measures and
drive the implementation and monitoring of sustainability
management, across all business division whilst promoting
Finance & Account Procurement
interdepartmental collaboration
Contract ⚫ Raises awareness of sustainability management, establishes and
Administration maintains communication with external stakeholders
Human Resources
& Sales & ⚫ Identifies, assess and reports on sustainability risk and opportunities
Marketing relevant to operations, providing progress updates on
Administration sustainability activities performance and oversees the
production of sustainability disclosures to ensure compliance with
regulatory requirements and recommends for approval.
ROLES AND
RESPONSIBILITIES
Party Roles and Responsibilities

Board of Directors • Accountable for oversight of sustainability matters of the Group, including but not limited to sustainability
strategy and targets, materiality assessment and climate-related risks and opportunities
• Ensures sustainability matters are considered within the Group’s and respective business segment and
progressively embed strong sustainability culture throughout the Group

Board Audit and Risk • Scrutinises the links between Company’s material sustainability matters and financial performance
Management • Oversees the conduct of assurance activities pertaining to the Company’s sustainability reporting processes
Committee • Approves the sustainability strategy and targets, policies, materiality assessment process & outcome and
sustainability
statement
• Oversee the management of material sustainability matters, including climate- related risks and
opportunities
• Monitor implementation of sustainability strategies and policies and performance against targets
Chief Sustainability • Chair the Sustainability Working Group
Officer • Oversee and facilitate the development and implementation of sustainability strategies and targets.
• Review the sustainability statement, materiality assessment process and outcome
• Recommends and develops the sustainability-linked KPIs as part of Board’s and Senior Management’s
performance
evaluation scorecards
• Assess the implementation and achievement of sustainability strategies and targets
• Align practices on the ground with the organisation-wide sustainability agenda and strategy
• Ensure the sustainability statement complied with the relevant reporting requirements
Sustainability Working • Represented by HOD and/or representatives from various departments across all business divisions.
Group • Develop and execute sustainability strategies.
• Evaluate overall sustainability risks and opportunities, including a focus on climate- related issues
• Colleting the necessary sustainability data and monitor the performance against targets
• Provide status update periodically on the sustainability performance
• Raises awareness of sustainability management and maintains communication with stakeholders. 10
ROLES AND
RESPONSIBILITIES
Party Roles and Responsibilities

Sustainability • Coordinates with and provides support to Sustainability Working Group on management of materials
Coordinator matters
• Consolidates sustainability report and data from the Working Group
• Undertake materiality assessment process
Internal Audit • Provide independent assurance on the sustainability disclosures

11
REPORTING
FREQUENCY Frequency
Reporting Party Reporting to Reports to be prepared and submitted
of
Reporting
Sustainability Board Sustainability and  Sustainability Disclosures for Board’s approval Yearly
Working Group Risk Management
/Sustainability Committee/Board of
Coordinator Directors
Sustainability Board Sustainability and  Summary of key stakeholders and their concerns. Half Yearly
Working Group Risk Management  Summary of material sustainability matters
/Sustainability Committee  Summarised action plans/initiatives for the Group and
Coordinator status on
the implementation of key action plans.
 Summary status of embedment of completed action plans.
HODs/Sustainability Sustainability Working Group  Perform key stakeholders engagement and Monthly
Coordinator materiality
assessment.
 Monitor the progress and update sustainability
initiatives, measurement results, goals and targets
achievements and arising sustainability matters
 Status update on progress of the implementation of key
action plans.
 Unresolved issues or challenges faced in the
achievement of the targets or implement the
sustainability initiatives shall be highlighted.
 Updated stakeholder and material matter register.
Internal Audit Board Sustainability and  Independent assurance statement on the Yearly
Risk Management sustainability disclosure
12
Committee/
SUSTAINABILITY
AND CLIMATE
RISK &
OPPORTUNITIES
ASSESSMENT
PROCESS

13
ALIGNING THE GROUP’S RISK MANAGEMENT WITH IFRS
Sustainability and climate risk management refers to pr ocesses that enable the identification, analysis and management of risks that could reasonably be
expected to affect an entity’s financial perfor mance, cash flows, or access to capital over the sho rt, medium, and long term. The Group’s sustainability and
climate risk management process is integrated into existing Enterprise Risk Management (“ERM”) framework, which is in line with international standards, ISO
31000: Risk Management, COSO ERM Framework.

The Group’s risk management system is extended to also include:

1. Sustainability and climate opportunity to be in line with IFRS S1 and S2 disclosure requirements and Task Force on Climate Related Financial
Disclosures (“TCFD”).

2. Comprehensive identification and assessment of sustainability and climate risk and opportunities pr ocess that takes into account IFRS requirements
including:
 Industry based material topics from sustainability guidelines, frameworks and standards (i.e SASB, GRI, SBTi, CDSB, ESRS, etc);
 Key stakeholders concerns identified through Stakeholder Engagement;
 Key dependencies and impact in the throughout the Group’s value chain by conducting a Value Chain analysis;
 Others.
Climate risks and opportunities shall include the consideration of both physical and transitional risk across the value chain;
 Comparative analysis and benchmark of industry best practices; Est ablishing context
3. Dedicated sustainability
 Analysis and climate megatrends
of current sustainability risk and opportunities rating and
based on operating parameters
environment; and (i.e Likelihood and
Risk Assessment
Impact) that encompasses a wider range of factors that assess the potential environmental, social
and economic impacts of sustainability and climate change within the context of the Group’s operations Risk

COM MUNICATION
and value chain. Identification

MONITORING &
SULTATION
4. Assessment of sustainability and climate risk and opportunities across different time horizons (Short,

& CON
medium and
Risk Analysis
long-term). The defined time horizons used by the Group is relevant to the strategic planning.

REVIEW
5. Scenario analysis to assess potential impacts on business prospect under various future Risk
conditions.
6. Climate risks and opportunities shall include the consideration of both physical and transitional risk (also Evaluation
known as risk
RECORDING &
typology) across the value chain. REPORTING
Risk Treatment
By aligning the Group’s risk management with IFRS S1 and IFRS S2 disclosure requirements, the Group
can pr ovide decision-useful, transparent, and verifiable sustainability-related financial information to
investors, regulators, and other stakeholders, ultimately supporting informed capital allocation and long-term
value creation. 14
SUSTAINABILITY AND CLIMATE RISK & OPPORTUNITY ASSESSMENT
PROCESS Risk and Managing
Identificatio Monitoring and
Opportunity Sustainability &
n Review
Assessment Climate Matters
Define the scope, objective and criteria  Select sustainability and cl imate that  Identify existing policies, con trols and  The prel iminary results generated
for managing sustainability and climate could reasonably be expected to affect measures to manage the Group’s sus to be reviewed by
risk and opportunities. the Group’s prospects based on the tainability and cl imate ri sk and the Sustainability
time horizon. The assessment shall be opportunities and to capitalise the Working Group to align with
Identify relevant sustainability and cl supported with qualitative and quant opportunities (if any). the Group’s overall
imate itative data.  Develop suitable action plans (i.e ri sk  strategy
The finali sed results shall be
risk Sustainability
& opportunitiesguidelines,
topics/matt ers based
framework  The assessment shall be conducted endorsed
by the Board Sustainability and
mitigation strategies or plans to create
on: and standards (i.e SASB, GRI, annually, to determine if it remains Risk
Managemen
value from key opportunities) inc luding
SBTi, CDSB, ESRS, etc); relevant. Illustrate the outcomes of the the ident ification of the assoc iated t
 Key stakeholders concerns ident assessment through a materialit y matrix. strategic objectives, strategies, policies,
ified targets and key performan ce indicators.
through stakeholder engagement;  Use sc enario analysis to evaluate how Determi ne the antic ipated changes to
 Assess dependenc ies and impact in different sustainability sc enarios could the bus iness model and value chain based
the impact the Group’s prospect - its on the risk mitigation strategies.
throughout the Group’s value chain cashflow, access to finance or cost of  Monitoring the effectiveness of the
by capital over the short, medium or long Group’s
conducting a Value chain analysis; term . strategies regularly.
 Climate ri sks and opportunit ies  Evaluate the potent ial financial  Define matric es for each sustainability
shall include the consideration of (Qualitative and Quantitative) impact and cl imate ri sk and opportunity based
both physical and tran sitional risk of the ident ified sustainability and on SASB standards.
 across theof value
Analysis current sustainability cl imate ri sks
opportunities based and
on likelihood and
chain;
megatrend based operati ng severity
of each risks and the potent ial benefits of  Est ablish spec ific and measurables
 Comparative
s analysis and benc
environment; each opportunity over the time horizons targets
hmark
and of on  Collate relevant data and compare against
 ind ustry best prac tices;
Others. target.

Documentation:

 Preliminary List of  Sustainability Assessment  Managing Sustainability Matters

Sustainability Parameters Procedures
Topics for Consideration  Sustainability Matrix  SRO Summary
 Stakeholder Engagement  Scenario Analysis
 Value Chain Analysis
Abbreviation
SASB: Sustainability Accounting Standards Board GRI: Global Reporting Standards SBTi: Science Base Targets Initiatives CDSB: Climate Disclosure Standards Board ESRS: European 15
Sustainability Reporting Standards
 LIST OF
RELEVANT
SUSTAINABILITY RISK
&
OPPORTUNITIES

16
PRELIMARY LIST SUSTAINABILITY RISK & OPPORTUNITIES FOR
CONSIDERATION Global Reporting Initiatives
Sustainability Accounting Standards Board Science Based Targets initiative
(“GRI”) Aspects (Non-
(SASB) (Industry Specific) (SBTi) (Industry Specific)
Industry Specific)
1. Environment 3. Human Capital 1. Market Presence 1. Market Presence
a. GHG Emission a. Labour Practices 2. Indirect Economic Impacts 2. Indirect Economic Impacts
b. Air Quality b. Employee Health & Safety 3. Procurement Practices 3. Procurement Practices
c. Energy c. Employee Engagement, 4. Energy 4. Anti-Corruption and bribery
Management Diversity & Inclusion 5. Anti-Corruption and Bribery 5. Energy
d. Water & 4. Leadership & Governance 6. Biodiversity 6. Water and Effluents
Wastewater Materials a. Business Ethics
Management 7. Water and Effluents 7. Biodiversity
b. Competitive 8. Occupational Health and Safety 8. Environmental Compliance
e. Waste & Behavior
Hazardous 9. Employment 9. Employment
Management c. Management of the
Legal & 10. Environmental Compliance 10. Occupational Health and Safety
f. Ecological Impact Regulatory Environment 11. Tax Governance 11. Training and Education
2. Social Capital munity d. Critical Incident Risk 12. Marketing 12. Diversity and Equal Opportunity
a. Human Rights & Management 13. Training and Education 13. Local Communities
Com e. Systemic Risk
Relations 14. Diversity and Equal Opportunity 14. Customer Health and Safety
Management
b. Customer Privacy 15. Customer Health and Safety 15. Marketing
f 5. Business Model &
c. Data Security Innovation 16. Local Communities 16. Customer Privacy
17. Customer Privacy 17. Socio-economic Compliance
d. Access & a. Product Design &
Affordability Lifecycle 18. Socio-economic Compliance 18. Tax Governance
e. Product Quality & ety Management
Sa
b. Business Model
f. Customer Welfare Resilience
g. Selling Practices &
pro Labeling duct c. Supply Chain
Management
d. Materials Sourcing &
Efficiency
e. Physical Impacts of
Climate
Change
STAKEHOLDER ENGAGEMENT
PROCESS

18
STAKEHOLDER ENGAGEMENT PROCESS
Engagement with stakeholders helps the Group to gather insights on how its activities can be affected by the economy,
environment, and the relationship with its stakeholders and society that could reasonably be expected to affect the Group’s
prospects. The engagement provides opportunity to identify sustainability risks and opportunities which may not have been
considered or was overlooked by the Group. The relevant stakeholders are those with the highest level of influence or interest and
who may be the target audience of the Group’s sustainability performance and disclosures.

Understand their Key Concern and

Identify and Prioritise Key Define Engagement Objectives and Align to Sustainability and Climate Risk
Stakeholders Approach and Opportunities

a. Identify key stakeholders who is a. Define the engagement objectives

a. Understand key stakeholder’s
relevant to the Group’s activities, and approach for each Key
interest & concerns and identify
products and services and business Stakeholder groups to
strategic actions to manage key
strategy. disseminate toinformation
effectively its stakeholders
stakeholder concerns.
b. Prioritise key stakeholders and capture all relevant
b. Align the stakeholders’ concern
depending on the levels of feedback from them.
with the Group’s sustainability and
dependency and influence in the
climate risk and opportunity.
company.

Documentation:
 Stakeholders Prioritisation Matrix  Appendix A: Key Stakeholder  Appendix A: Key Stakeholder
 List of Key Stakeholders Engagement Register Engagement Register

19
STAKEHOLDER PRIORITISATION MATRIX
The level of engagement with stakeholders can be determined using
stakeholder prioritisation matrix with the following criteria to determine the Stakeholders Prioritisation Matrix
rating for influence and the Group’s dependency on the stakeholder.

Dependence
Based on the rating, a stakeholder's position on the quadrant determines the

High
level of
engagement and the appropriate engagement strategies.
Engagemen
Description
t Strategy

Stakeholder Dependency

Dependence
These are stakeholders to fully engage with, collaborate
to find solutions to issue and make the greatest effo rts to

Some
Collaborate
keep satisfied. It would be prudent to invest well into
engagement pr ocess to understand their key concerns

Ensure these stakeholders’ concerns are proactively address

Engage as they may have influence over other stakeholders who may

Dependence
have significant influence and may be involve in the pr ocesses
as needed

Low
Keep these stakeholders adequately informed when needed to
ensure
Consult no issues are arising.
Honour commitments made through company policy, industry

Dependence
best
practices and applicable regulations. Otherwise endeavour

No
to keep stakeholders satisfied insofar as the cost and benefit
allow.
These stakeholders need minimum amount of effo rt
compared to all the stakeholders in the other quadrants.
Keep Informed Keep them sufficiently informed. No Low Some High
Provide them with access to communication channels for Influenc Influenc Influenc Influenc
feedback purposes. e e e e 20

Stakeholders Influence
LIST OF KEY
STAKEHOLDERS
No. Stakeholder Group Engagement Strategy Dependency Influence

1. Employees Collaborate High High

2. Customers Collaborate High High

3. Contractors, Consultants and Suppliers Collaborate High Some

4. Government and Regulators Engage Low Some

5. Lenders/Financiers Consult Some Low

6. Shareholders and Investors Consult Some Low

7. Media Keep Informed Low Low

8. Local Communities Keep Informed Low Low

21
LIST OF KEY STAKEHOLDERS AND ENGAGEMENT
METHOD
No. Stakeholder Stakeholders Concern Engagement Method/Frequency
Groups
1. Employees (EXPLAIN THE DEPENDENCY AND IMPACT) To provide a conducive working environment where employees can perform
their tasks and
develop a fulfilling career ensuring loyalty and continuity
a. Training and career progression • Performance review • Annually
b. Fair employment practice • Department and Management meeting • Monthly
c. Safe and healthy working environments • One to one engagement • As needed
d. Employee benefits and welfare

2. Customers Understand concerns to cultivate positive long-term relationships with our customers and improve our services and
quality.
a. Timely and delivery • Project progress updates and meetings • As needed
b. Reliability and quality • Customer feedback • As needed

3. Suppliers Our contractors and suppliers enable us to continue delivering quality goods and services. Maintaining sustainable
and relationship with our
Contractors contractors and suppliers build ethical and trustworthy alliances.
a. Fair and transparent tender and procurement process • Project updates and meetings • Monthly
b. Prompt payment • Supplier/contractors evaluation • Annually
c. Continuous and future business opportunities

4. Government and Relationship with the Government and regulators enables the Group to keep abreast on relevant changes to
Regulators regulations, ensuring
continued compliance with local laws and requirements and obtain necessary approval for our development projects.
a. Ensuring company adherence to applicable • Site inspection and visit • As needed
regulations (Environmental and Occupational Safety and • Compliance and regulatory • As needed
Health Act etc) requirements
b. Upholding corporate governance and best business practices reporting
5. Lenders/ Lenders/Financiers support us through the provision of short- and long-term capitals enabling us to manage our
Financiers operation and achieve
our business objectives. (i.e working capital, etc).
a. Sustainable performance, where the Group can repay the • As needed 22
• Corporate website
loans • As needed
• Corporate and media announcement
b. Commitment towards ESG and sustainability practices • As needed
• Loan covenant and compliance
c. Adequacy of corporate governance, risk management and
reporting
internal
controls
LIST OF KEY STAKEHOLDERS AND ENGAGEMENT
METHOD
No. Stakeholder Stakeholders Concern Engagement Method/Frequency
Groups
6. Shareholder Shareholders/ investors provide us the necessary resources to execute our strategy and achieve growth. In return, we
s/ Investors need to operate
responsibly, thus delivering strong and sustainable financial returns.
a. Sustainable performance, where the Company can • Quarterly Report (Post Listing) • Quarterly
build/improve confidence level of shareholders and • Corporate and media announcement • As needed
investors, and can continue to pay dividends to their • Corporate Website • As needed
shareholders • AGM/EGM (Post Listing) • Annually
b. Corporate governance, risk management and internal controls • Annual report (Post Listing) • Annually

7. Local communities Local community engagement is important to ensure the social and economic benefits concerned are addressed.

Impact of operations/development on surrounding • Charitable donations • As needed

communities and • Corporate social responsibility event
environment • Corporate Website

23
IDENTIFYING SUSTAINABILITY AND
CLIMATE RISK AND OPPORTUNITY
THROUGH VALUE CHAIN ANALYSIS

24
IDENTIFYING SUSTAINABILITY AND CLIMATE RISK AND OPPORTUNITY THROUGH VALUE CHAIN
ANALYSIS
Under IFRS sustainability disclosure requirement, the Group must assess and disclose the impact of sustainability and climate risk and opportunities
throughout our value chain. In the context of IFRS S1 and S2 sustainability reporting, "value chain" refers to the full range of interactions, resources
and relationships related to the Group’s business model and the external environment in which it operates. A value chain encompasses the
interactions, resources and relationships the Group uses and depends on to create its products or services from conception to delivery, consumption
and end-of-life, including interactions, resources and relationships in the entity’s operations, such as human resources; those along its supply,
marketing and distribution channels, such as materials and service sourcing, and product and service sale and delivery; and the financing,
geographical, geopolitical and regulatory environments in which the entity operates.

A comprehensive sustainability and climate risk and opportunity assessment requires examining the upstream and downstream value chain
dependencies and their impact on these interactions, resources and relationships. Understanding these factors allows the Group to manage risks
proactively while identifying opportunities for sustainable growth. Identifying the dependencies across the value chain also helps the Group identify,
assess these vulnerabilities and enhance resilience.

The following is a step-by-step guide to conducting a sustainability and climate risk and
opportunities
1. Understand assessment throughout
the Group’s theincluding:
value chain value chain (“value chain analysis”):
[Link] the full range of interactions, resources and relationships involved in delivery products
and services (Example: Primary activities directly involved in producing, marketing and delivery Step 1:
of product or services and support activities that facilitate the primary activities, such as Understand
infrastructure, human resources, technology and procurement). the
[Link] the breadth and composition of the value chain (including upstream and Group’s Value
downstream activities) Chain
relevant to sustainability risk
[Link] the value chain activities by including key elements such as inputs, business
activities, outputs and outcomes, as guided by the Integrated Reporting Framework. Step 2:
2. Identify sustainability and climate risk and opportunities by examining the business model and nature Identify
of the upstream sustainability
and downstream value chain for any key dependency on interactions, resources and relationships, such and climate
risk and
as:
opportunity
a. Natural resources and environment (i.e scarcity of materials, energy, water, land and climate
changes)
b. Economy and mega trends (i.e market shifts, consumer behavior changes, regulatory
changes, technology 25
disruptions)
c. Relationship with stakeholders (i.e suppliers, customers, employees/labour, bankers, etc)
and society
throughout the value chain.
IDENTIFYING SUSTAINABILITY AND CLIMATE RISK AND OPPORTUNITY THROUGH VALUE CHAIN
ANALYSIS
3. Collect reliable data or information required to evaluate risk and financial impact such as:
Internal Data Sources
 Operational data: Resource consumption (energy, water, raw materials), waste generation,
emissions.
 Financial reports: Cost structures, capital expenditures, supplier contracts, working capital Step 3:
needs. Collect
 Procurement and supply chain records: Supplier risk assessments, geographical Data
concentration of suppliers.
 Customer
External Datainsights
Sourcesand sales data: Shifts in demand for sustainable products and services.
 HR and and
Market workforce data:
industry Employee
reports: retention
Emerging rates, skills
sustainability gap analysis,
trends, training investments.
demand forecasts, competitive
benchmarks. Step 4:
 Regulatory and policy databases: Carbon pricing models, environmental compliance costs,
Evaluate the
ESG reporting risk and
standards. impact
 Climate risk databases: Projected temperature changes, extreme weather event probabilities,
water stress indices.
 Investor and financial institution reports: Green finance trends, ESG ratings, sustainability-
Step 5:
Thelinked
Groupfinancing
can also leverage scenario analysis tools and financial risk models to project future
conditions.
outcomes based on different assumptions. Develo
p
strateg
4. Evaluate the risk and impact on the current business model and value chain based on reliable ies and
data collected. action
5. Develop strategies and action plans to reduce the dependencies in the upstream and downstream Step 6: plan
value chain. Example: Plans to manage or decommission carbon, energy or water-intensive Identify
operations; resource allocations resulting from demand or supply-chain changes; resource anticipated
allocations arising from business development through capital expenditure or additional expenditure changes to the
on research and development; and acquisitions or divestments. Group’s
business
6. Finally, identify anticipated changes the Group’s business model (i.e operational processes, resources model and
allocation) and its value chain. value chain

26
IDENTIFYING SUSTAINABILITY AND CLIMATE RISK AND OPPORTUNITY THROUGH VALUE CHAIN
ANALYSIS
Mapping the value chain activities by including key elements such as inputs, business activities, outputs and outcomes, as guided by the
Integrated Reporting
Framework.

27
RESULTS OF
SUSTAINABILITY RISK
& OPPORTUNITIES

28
No
Category Sustainability Matters Impact On Business and Stakeholder
Relationship
Authorities Suppliers Customers

1. GHG Emissions
2. Air Quality
3. Environment Energy Management
4. Water & Wastewater Management
5. Waste & Hazardous Materials Management
6. Ecological Impact
1. Human Rights & Community Relations
2. Customer Privacy
3. Data Security
4. Social Capital Access & Affordability
5. Product Quality & Safety
6. Customer Welfare
7. Selling Practices & Product Labeling
1. Labour Practices
2. Human Capital Employee Health & Safety
3. Employee Engagement, Diversity & Inclusion
1. Product Design & Lifecycle Management
2. Business Model Resilience
Business
3. Model & Supply Chain Management
4. Innovation
Materials Sourcing & Efficiency
5. Physical Impacts of Climate Change
1. Business Ethics
2. Competitive Behavior
Leadership
3. & Management of Legal & Regulatory Environment
4. Governance
Critical Incident Risk Management
5. Systemic Risk Management
Direct Indirect
29
Impact Impact
 SUSTAINABILITY IMPACT MATERIALITY
MATRIX
Pillars Sustainability Risk &
Opportunity
Sustaining Business
Performance Profit
Very (Economic
High +
Governanc
Product Quality and… e)

Hig
Likelihood of Occurrence

h Procurement Practices
Ethi cal Business Conduct
Occu pational Health & People
Human Ca pital Safety (Social)
Mediu
Energy and W ater Developm entCybersecurity and D ata
m t Privacy
Manageme
n
Planet
Low (Environment)
Community Support a nd
Development

Ver
y

Insignifican Mino Moderat Majo Catastrophi

t r e r c
Impact to the Business

30
SUSTAINABILITY RISK & OPPORTUNITY

Risk Title Land Use & Ecological Impact

Description ABC face risks associated with the ecological impacts of development activities. Developments often take place on previously
undeveloped land, and the Group must manage the ecosystem disruption of construction activities as well as the regulations and
permitting processes that accompany 'greenfield' land development.

Possible root causes: Existing key controls:

 Industry development activities generally carry risks related to land and  Environmental quality control procedures, 'smart growth' strategies
water (including a
contamination and mismanagement of waste during the focus on redevelopment sites) and conservation strategies may
construction. help ensure compliance with environmental laws, and therefore
mitigate financial risks, while improving future growth opportunities.
Possible Impact on Business:  Discussion of process to integrate environmental
 Violation of environmental regulations can result in fines and delays
that decrease financial returns while potentially harming brand value. considerations into site selection, site design and site
 Difficulty in obtaining permits and approvals with repeated violations
or a history of negative ecological impacts for new developments,
development and construction
thereby decreasing future revenue and market share.
Recommended Action Plan:
Stakeholder Relationship:
- Authorities
- Local Communities

Dependency and Impact on Value Chain:

Likelihood Impact Risk rating

Existing risk rating Likely Moderate High

Risk owner Risk treatment Reduce

31
SUSTAINABILITY RISK & OPPORTUNITY

Risk Title Land Use & Ecological Impact

Targets and Performance: Financial:

Metric Category Effects on Current FY Short Medium Long

UOM Target Term Term Term

Income statement

Balance Sheet (Ass et & Liability)

Number of (1) Lots and (2 ) homes delivered on Quantitati ve Number XXXX
redevelopment sites
Cash flow (Cost of Capital)
Number of (1) lots and homes delivered in regions with Quantitative Number
XXXX High or Extremely High Baseline Water Stress

Total amount of monetary losses as a result of legal Quantitative Number

XXXX
proceedings ass ociated with environmental regulations

32
SUSTAINABILITY RISK & OPPORTUNITY

Risk Title Design for Resource Efficiency

Description Residential buildings, when occupied, consume significant amounts of energy and water. The Group can play a role in improving
home resource efficiency through sustainable design practices and choice of materials. Effectively applying resource efficiency
design principles in a cost-effective manner may be a competitive advantage, especially when entities are successful in
systematically educating customers on the long-term benefits of these homes.
.

Possible root causes: Existing key controls:

 Shift in purchaser’s behavior  New developments shall be certified by Green RE
 Incorporate energy and water saving features into our design
 Description of risks and opportunities related
Possible Impact on Business or Value Creation:
 Purchaser’s awareness of energy and water efficiency creates an to
opportunity for
entities to increase target market demand, thereby increasing revenue or
incorporating resource efficiency into home design, and
margins how benefits are communicated to customers
Recommended Action Plan :
Stakeholder Relationship:
- Customers/Purchasers

Dependency and Impact on Value Chain:

Likelihood Impact Risk rating

Existing risk rating Likely Moderate High

Risk owner Risk treatment Reduce

33
SUSTAINABILITY RISK & OPPORTUNITY

Risk Title Design for Resource Efficiency

Targets and Performance: Financial :

Metric Category Effects on Current FY Short Medium Long

UOM Target Term Term Term

Income statement

Balance Sheet (Ass et & Liability)

Number of homes that obtained a certified residential Quantitati ve Number XXXX
energy efficiency rating and average rating
Cash flow (Cost of Capital)
Perc entage of installed water fixtures certified to a Quantitative Number
XXXX water efficiency standard

Number of homes delivered certified to a third party Quantitative Number

XXXX
multi-attribute green building standard

34
 PRELIMINARY LIST
OF CLIMATE RELATED
RISK &
OPPORTUNITIES

35
PRELIMINARY LIST OF POTENTIAL CLIMATE
RISK
Physical
Risk
Potential Financial Transition Risk
Impact Category
Transition Risk Description Potential financial impact

Acute Asset Policy and Legal  Increased pricing of GHG emissions Assets
 Write-offs and early  Enhanced emissions reporting  Write-offs, asset impairment, and early retirement of existing assets due to policy
Flood retirement of Policy actions around climate obligations changes
existing assets change  Mandates on and regulation of Revenue
(e.g., damage to continue to evolve existing  Change in revenue mix and sources, resulting in decreased revenues
property and assets products and services Opex
in "high-risk"  Exposure to litigation. such  Increased operating costs (e.g., higher compliance costs, increased insurance
Extreme Heat locations) litigation include the failure of premiums)
 Increased capital 
organizations to mitigate Increased costs and/or reduced demand for products and services resulting from
costs (e.g., impacts of climate change, fines or
damage to failure to adapt to climate judgements
Extreme Winds & facilities) change, and the insufficiency of
Storms Revenue disclosure around material
 Reduced revenue financial risks.
from
o decreased Reputation  Shifts in consumer preferences Assets
production  Stigmatization of sector  Reduction in capital availability
capacity (e.g., Climate change has been  Increased stakeholder concern or Revenue
Water Stress & transport identified as a potential source negative stakeholder feedback  Reduced revenue from decreased demand for goods/services
Drought difficulties, of reputational risk tied to  Reduced revenue from decreased production capacity (e.g., dela yed planning
supply chain changing customer or approvals,
interruptions) community perceptions of an supply chain interruptions)
o higher costs organization's contribution to or  Reduced revenue from negative impacts on workforce management and planning
Wildfires from negative detraction from the transition to (e.g.,
impacts on a lower-carbon economy employee attraction and retention)
workforce Opex
(e.g., health,
safety, Market  Changing customer behavior Assets
Chronic absenteeism)  Uncertainty in market signals  Re-pricing of assets (e.g., fossil fuel reserves, land valuations, securities valuations)
o lower Markets could be affected by  Increased cost of raw materials Revenue
Changes in sales/output climate change are varied and  Reduced demand for goods and services due to shift in consumer preferences
precipitation Opex complex, one of the major Opex
patterns and extre  Increased operating ways is through shifts in  Increased production costs due to changing input prices (e.g., energy, water) and
me variability in costs (e.g., supply and demand for certain output
weather patterns inadequate water commodities, products, and requirements (e.g., waste treatment)
supply for services as climate-related  Abrupt and unexpected shifts in energy costs
Rising mean hydroelectric plants risks and  Change in revenue mix and sources, resulting in decreased revenues
temperatures or to cool nuclear opportunities are increasingly
and fossil fuel considered
plants)
 Increased insurance Technology  Substitution of existing products Assets
premiums and and  Write-offs and early retirement of existing assets
potential for Technological improvements or services with lower emission options  Research and developme nt expenditures in new and alternative technologies
Rising mean reduced availability innovations that support the  Unsuccessful investment in  Capital investments in technology development 3
temperatures of insurance on transition to a lower-carbon, new Revenue 6
assets in "high- energy efficient economic technologies Reduced demand for products and services
risk" locations system can ha ve a significant  Costs to transition to lower Opex
impact on organizations emissions  Costs to adopt/deploy new practices and processes
technology
PRELIMINARY LIST OF POTENTIAL CLIMATE
OPPORTUNITY
Opportunity Potential Financial Impact

Resource Efficiency  Reduced operating costs by improving efficiency across their production and distribution processes, buildings,
machinery/appliances, and transport/mobility—in particular in relation to energy efficiency but also including broader
materials, water, and waste management.
 Innovation in technology is assisting this transition; such innovation includes developing efficient heating solutions and
circular economy solutions,
making advances in LED lighting technology and industrial motor technology, retrofitting buildings, employing geothermal
power, offering water usage and treatment solutions, and developing electric vehicles.
Energy Source  Investments in renewable energy capacity are exceeding investments in fossil fuel generation. The trend toward decentralized
clean energy sources, rapidly declining costs, improved storage capabilities, and subsequent global adoption of these
technologies are significant. Organizations that shift their energy usage toward low emission energy sources could potentially
save on annual energy costs.
Products and Services  Organizations that innovate and develop new low-emission products and services may improve their competitive position and
capitalize on shifting consumer and producer preferences. Some examples include consumer goods and services that place
greater emphasis on a product's carbon footprint in its marketing and labeling (e.g., travel, food, beverage and consumer
staples, mobility, printing, fashion, and recycling services) and producer goods that place emphasis on reducing emissions (e.g.,
adoption of energy-efficiency measures along the supply chain).
Markets  Pro-actively seek opportunities in new markets or types of assets may be able to diversify their activities and better position for
the transition to a lower-carbon economy.

 access new markets through collaboration with governments, development banks, small-scale local entrepreneurs, and
community groups in
developed and developing countries as they work to shift to a lower-carbon economy.

 New opportunities through underwriting or financing green bonds and infrastructure (e.g., low-emission energy production,
energy efficiency, grid
connectivity, or transport networks).

Resilience  Developing adaptive capacity to respond to climate change to better manage the associated risks and seize opportunities,
including the ability to
respond to transition risks and physical risks.
37
 Opportunities include improving efficiency, designing new production processes, and developing new products. Opportunities
related to resilience may be especially relevant for organizations with long-lived fixed assets or extensive supply or distribution
networks; those that depend critically on utility and infrastructure networks or natural resources in their value chain; and those
that may require longer-term financing and investment.
 CLIMATE RISK
& OPPORTUNITY
ASSESSMENT
(TRANSITION RISK)

38
39
RESULTS OF CLIMATE RISK
&
OPPORTUNITIE
S (PHYSICAL
RISK)

40
PHYSICAL RISK ASSESSMENT
RESULTS
Physical Risk R/O Potential Financial Impact on Our Business S M L Strategy, Measures and Action Plans

Acute

Flood

Extreme Heat

Extreme Winds &

Storms

Water Stress
& Drought

Landslide

Chronic
Changes in
precipitation
patterns and
extreme
variability in
weather
patterns
Rising
mean
temperatur
es 41
CLIMATE
PHYSICAL RIS
REGISTER K
S

42
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Flood Category Acute Type Risk

Description Flooding, caused by different factors (including rise Likelihood

in sea level, extreme precipitation and river
overflow). Increases in
the frequency and severity of extreme precipitation Short Medium Long
events can lead to localized flooding. Rising Sea
Time Horizon
levels can also have substantive impacts. XXX
High High Very High
located in XXXX is a flood prone area.

Business Impact: Potential Financial Impact

a. Impact on operations: There could be disruption to plant manning or 1. Property downtime and business disruption.
production 2. Costs to repair or replace damaged or destroyed assets, value impairment
planning during flood events or supply chain disruptions 3. Potential for increased insurance costs or reduced/no insurance availability.
b. Impact on physical damage: Flooding may affect structural 4. Road access to the affected assets may be cut off by floods.
integrity of buildings, road access, electric equipment and utilities
c. Impact on supply chain: Road access to the affected assets may be
cut off by
floods
d. Impact on health and safety: If chemical leakage happens during
flood events,
it may lead to environmental contamination and human contact with
hazardous
chemicals
Strategic Action Plans Time Horizon Short Medium Long
 Design and implement suitable mitigation measures, such as increasing the
capacity Revenue Low Moderate Moderate
of storm water drainage or pumping system, construction of flood barrier
 Consider flood hazards in the emergency response plan Opex Low Moderate Moderate
 Provide security equipment to mitigate impact of flooding Capex Moderate High High
 Strengthen business continuity and disaster resilience measure
 Adequate insurance coverage Moderate High High 43
 Ensure employees are adequately trained on proper disaster protocols
 Reinforce collaboration with business units on how to share Cashflow
resources and expertise during disasters
 Coordinate with relevant stakeholders to align disaster response
and recovery plans
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Extreme Heat Category Acute Type Risk

Description The risk of extreme heat is expected to increase Likelihood

over time, given the nature of climate change that is
driven by global
warming. Short Medium Long
Time Horizon
Medium Medium High

Business Impact: Potential Financial Impact

a. Impact on operations:
b. Impact on physical damage:
c. Impact on supply chain:
d. Impact on health and safety: Heat strokes and dehydration may occur
more
frequently, particularly during plant turnaround

Strategic Action Plans Time Horizon Short Medium Long

 Consider extreme heat conditions in the emergency response plan
 Provide training to employees to identify symptoms of heat stress and Revenue Low Moderate Moderate
provide first
Opex Low Moderate Moderate
aid
 Evaluate existing operational temperature ranges of tools and Capex Moderate High High
equipment against projected extreme temperatures
Cashflow Moderate High High

44
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Water Stress/Drought Category Acute Type Risk

Description Water stress, or drought, is defined as a deficiency of Likelihood

rainfall over an extended period – a season, a year or
several years –
relative to the statistical multi-year average for the Short Medium Long
region. Lack of rainfall leads to inadequate water
supply for the environments and human activities. A Time Horizon
drought may trigger other natural hazards such Very Low Very Low High
as wildfires, extreme temperatures,
desertification, famine and epidemics.
Business Impact: Potential Financial Impact

a. Impact on operations:
b. Impact on physical damage:
c. Impact on supply chain:
d. Impact on health and safety:

Strategic Action Plans Time Horizon Short Medium Long

 Explore opportunities for rainwater harvesting and catchment level
 Adopt water efficiency/saving technology to reduce water usage Revenue Low Moderate Moderate
 Explore opportunities to reuse or recycle wastewater within the plant or
Opex Low Moderate Moderate
from nearby communities
 Construction of water tanks and reservoirs within the plant facilities for Capex Moderate High High
dry seasons
 Preparing water reserves for emergencies Moderate High High
 Provide training to employees to identify symptoms of heat stress and provide first aid Cashflow
 Evaluate existing operational temperature ranges of tools and equipment against projected 45
extreme temperatures
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Extreme Winds & Storms Category Acute Type Risk

Description Likelihood

Short Medium Long

Time Horizon
Very Low Very Low High

Business Impact: Potential Financial Impact

a. Impact on operations:
b. Impact on physical damage:
c. Impact on supply chain:
d. Impact on health and safety:

Strategic Action Plans Time Horizon Short Medium Long

 Comply with national or international best practices for wind load for design and
construction of all structures Revenue Low Moderate Moderate
 Implement/follow monitoring mechanisms with the national or regional meteorological
agencies for the early warning system Opex Low Moderate Moderate

Capex Moderate High High

Cashflow Moderate High High

46
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Landslide Category Acute Type Risk

Description A landslide is the movement of natural soil and Likelihood

rocks controlled by gravity. Landslides can involve dry
mass or wet
mass. Dry mass movements can be triggered by Short Medium Long
violent geophysical hazards such as earthquakes
and volcanic eruptions, but they can also be a
consequence of water scarcity and soil erosion. Time Horizon
Diffeerently, wet mass movements (mudslides) are Very Low Very Low High
more often caused by heavy precipitation.
Landslides are associated with other hazards such as
floods, tropical cyclones, and severe local
storms.
Business Impact: Potential Financial Impact

a. Impact on operations: Increased cost for replacement or repair of damaged assets

b. Impact on physical damage: Damage to infrastructure, tools and equipment
c. Impact on supply chain: Temporary disruption of access along roads
d. Impact on health and safety: Safety of employees XXXXXXXXXXXXXXXXXXX

Strategic Action Plans Time Horizon Short Medium Long

 Identify areas prone to landslides
 Avoid deep/steep cuttings Revenue Low Moderate Moderate
 Implement landslide mitigation measures as appropriate
Opex Low Moderate Moderate

Capex Moderate High High

47
Cashflow Moderate High High
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Changes in precipitation patterns and
Category Chronic Type Risk
extreme variability in weather patterns

Description Likelihood

Short Medium Long

Time Horizon
Very Low Very Low High

Business Impact: Potential Financial Impact

a. Impact on operations:
b. Impact on physical damage:
c. Impact on supply chain:
d. Impact on health and safety:

Strategic Action Plans Time Horizon Short Medium Long

Revenue Low Moderate Moderate

Opex Low Moderate Moderate

Capex Moderate High High

Cashflow Moderate High High

48
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Rising mean temperatures Category Chronic Type Risk

Description Likelihood

Short Medium Long

Time Horizon
Very Low Very Low High

Business Impact: Potential Financial Impact

a. Impact on operations:
b. Impact on physical damage:
c. Impact on supply chain:
d. Impact on health and safety:

Strategic Action Plans Time Horizon Short Medium Long

Revenue Low Moderate Moderate

Opex Low Moderate Moderate

Capex Moderate High High

Cashflow Moderate High High

49
PHYSICAL
RISK
PHYSICAL RISK & OPPORTUNITY
Title Flood Category Acute/Regulatory Type Risk/Opportunity

Description Flooding, caused by different factors (including rise in sea level and high tides, extreme rainfall and river overflow).

Potential Impact Baseline:

Short

Term

Long

Term

Potential Financial Impact

CAPEX
OPEX

REVENUE

50
MANAGING
SUSTAINABILITY
RISK
&
OPPORTUNITIES

54
MANAGING SUSTAINABILITY RISK & OPPORTUNITY
The procedure in managing the sustainability risk & DEVELOP AND IMPLEMENT POLICIES, ACTION PLANS
opportunity are summarised in the diaphragm below. AND
REPORTING INDICATORS

Once sustainability risk & opportunity topics are identified, the

1. Develop and
implement policies, Group shall respond to each of the sustainability risk &
action plans and opportunity. The response shall be as follows:
reporting indicators
• Develop policies and procedures
• Implement various initiatives, measures or action plans
• Implement new or changing existing systems to capture,
report, analyse and manage data requirements
associated with each material sustainability
matter.
4. 2. Data
Reporting collection
When developing the action plans, the Group can consider:
a. Develop timeframes
b. Set KPIs, goals and targets
c. Cost of implementations (if applicable)
d. Adopt relevant performance indicators (i.e. metrics
prescribed by international sustainability reporting
frameworks and standards (e.g. SASB, SBTi, GRI)). The
3. Monitor and
measure progress and performance metrics can be either financial or non-financial.
performance
Sustainability risk & opportunity topics relevant to the
Group are interpreted to have greatest significance to the
Group’s business prospect, and shall be prioritised for monitoring
and reporting. 55
MANAGING SUSTAINABILITY RISK &
OPPORTUNITY
DATA COLLECTION,
Information or data in MONITORING
relation to each&material
REPORTING PROCEDURE
sustainability matters need to be collected and tracked against a set target or goals.

1. The data and information are captured and documented in Sustainability Risk & Opportunity Register and Sustainability Data
Template (Excel file).
The details that stated in the Template shall as follow:
• Sustainability initiatives, targets and matrices identified
• Description of the initiatives/ action plans that have materialised during the period of review
• Measurements results or achievement of targets
• Cost involved (if applicable)
• Gap analysis
• Action plans – suggested enhancement, if applicable
• Designated person in charge of the sustainability initiatives/action plans

2. In collecting data and information, the followings are to be considered:

• Availability and completeness of data and information
• Entities/Projects covered for reporting
• Period of reporting (Financial year)
• Disclosure of sensitive data and information – subject to internal policy or confidentiality
• Units of measurement and conversion factors of performance indicators (e.g. GHG)

3. Respective HODs are accountable in implementing and managing the sustainability initiatives/action plans within the planned
timeframe. For the purpose of the tracking, respective HODs shall track the initiatives on a monthly basis.

4. All HODs need to furnish the Template with required information as listed above to Sustainability Officer by 15th of the first month in
the succeeding quarter.
5. All data collected needs to be supported with relevant source or documents. The relevant source or documents shall be 56
safekeeping accordingly.
SUSTAINABILITY
POLICIES,
STANDARDS
AND
GUIDELINES

57
LIST OF SUSTAINABILITY POLICIES, STANDARDS AND
GUIDELINES
Material Matters List of Policies, Standards and Guidelines
Climate Change 1. GHG Protocol Corporate Accounting and Reporting Standards
2. Taskforce on Climate-related Financial Disclosures
Environmental Stewardship Health, safety and environment Policy

Safety & Health HSE policy

Waste Management Waste Management Guideline

Water Management Water Management Guideline

IFRS S1
Local community Donation and Gift Policy
Human Rights and Labour Practices 1. Human Rights Policy
2. Code of Business Conduct
Business Ethics 1. Code of conducts and ethics
2. Anti-Bribery and Corruption Policy
3. Whistleblowing policy
4. Conflict of interest

Responsible supply chain 1. Procurement policy

management 2. Vendor code of business conduct

Data Privacy and Cybersecurity 1. IT Security Policy

2. Third Party Security Management Policy
Workplace Safety And Health Occupational Safety and Health (OSH)
5
8
LIST OF SUSTAINABILITY POLICIES, STANDARDS AND
GUIDELINES
Material Matters List of Policies, Standards and Guidelines
Air Management 1. APCS

Landslide Management

IFRS S1
5
9
CLIMATE
TRANSITION
RISK REGISTERS

64
TRANSITION RISK ASSESSMENT
RESULTS
Transition Risk R/O Potential Financial Impact on Our Business S M L Strategy, Measures and Action Plans

Carbon Tax Mechanism R  Current and emerging regulation has the potential impact on our  Calculating internal carbon price based on the
business cos ts associ ated with meeting regulatory requiremen ts current
Policy and Regulations

and impact on the market regulation in Indonesi a and other target market
 Increase in carbon pricin g and emission reporting obligations cou ntries.
 Finding opportunities to utili ze renewable electri city
generati on
Revision on electrici ty and water R
tariffs

Foreign trade restricti on R  Limiting internati onal market for XXXX  Est ablishing clear climate strategy to address this i
 Need put more effort to level up the sustainabili ty level of the ssue
product to  Mapping market expansi on and assessin g the
pass the import ban requirements

Shift in Technology/ Technology R  In the trans ition to a low carbon economy, techn ological

Technology & Market

Advan cement (Renewable advancements may reduce competi tiveness, produc tion, Finding investment for t he green technology that
Energ y & Carbon Capture) efficiency or demand and may lead to impaired or stranded will
assets be utilized
 Increasin g deman d to prod uce electricity with renewable energy,
as well as implement the methane capture tech nology
 Market will be more concerned related to the lowering cost of
green
tech nology

Sustainability-Linked & Green Loans O  There are various opportunit ies to pursue green
loans
Reputation

65
66
CROSS INDUSTRY CLIMATE
METRICS
Category UOM Metrics Targets
GHG Emissions MT of CO2E  Absolute Scope 1, 2 and 3 GHG Emission Reduce net Scope 1, Scop e 2 , and Scope 3 GH G
Absolut e Scope 1, Scop e 2 , and Scope emission s to zero by 2050, with an int erim target
3 to c ut emission s by 70% relative to a 2015
emission s intensi ty baseline by 2035
Transition Risk Amount or  Volume of real estate collateral s highly exposed to transition risk Reduce percentage of asset value exposed to transi
Amount and extent of assets or business Perc entage  Concentration of credit exposure to carbon assets tion
activities vulnerable to transition risks  Percent of revenue from xxxxx ri sks by 30% by 2030, relative to a 2019 baseline

Physical risk Amount or  Was tewat er treatment capacity located in 100-flood zones Reduce percentage of asset value exposed to acute
Amount and extent of assets or business Percentage  Revenue ass ociated with water withdrawn and cons umed in regions of high and
activities vulnerable to physical risks or chronic physical climate risks by 50% by 2050
extremely high baseline water stress Ens ure at least 60% of flood-exposed assets
 Proportion of propert y, infrastruc ture or other altern ative asset portfolios have risk mitigation in place in line with the
in an area subject to flooding, heat s tress or water stress 2060 projected 100- year floodplain
 Proportion of real assets exposed to 1: 100 or 1 :200 climate hazards

Climate Opportunities Amount or  Net premi ums writt en related to energy efficiency and low-carbon techn ology Increase net installed renewable capacity so that it
Proportion of revenue, assets , or other Percentage  Number of zero emissions vehicles comprises 85% of total capaci ty by 2035
bus iness activities aligned with climate-  Hybrid vehicles
related opportunities  Plugin hybri d vehicles sold
 Revenues from produ cts or services that support transit ion to a low carbon
economy
 Proportion of homes delivered certified to a third party, multi
attribute green building standard

Capital Deployment Reporting Perc entage of annual revenue invested in R& D of low carbon prod ucts/services Invest at least 25% of annual capital expenditure
Amount of capital expend iture, financ currenc y Invest ment in climate adaptation measures (i.e Soil heal th, irriation, techn ology) into
ing, electric vehicle manufac turin g
or i nvest ment deployed toward cl Lend at least 10% of portfoli o to projects foc used
imate- primarily on physic al climate-related risk mitigation
related risks and opportunities

Internal Carbon Prices Price in Internal Carbon price Increase int ernal carbon price to $150 by 2030 to
Price on each ton of GHG emissi ons reporting Shadow carbon price by geograph y reflect
used currenc y, per potent ial changes in policy
int ernally by an organization MT of CO2E

Remuneration Perc entage, Portion of employee’s annual discretionary bonus linked to investments in climate Increase amount of executive management
Proportion of execut ive management weight ing, products remunerat ion impacted by climate consid
67
remuneration linked to climate desc ription Weighting of climate goals on long term inc entive scorec ards for Executive erations to 10% by 2025
consideration s or amount Directors
in Weighting of performance against operational emissions targets for remuneration
reporting sc orecard
currency
REMUNERATION
METRICS

68
OUR
STRATEGY

69
CLIMATE RESILIANCE

70
CLIMATE SCENARIO ANALYSIS
PROCESS
The primary objective of scenario analysis is to determine how climate-related risks may affect the Group’s strategy over time. It is conducted to
consider the Group’s resilience of its strategy to climate-related risks, reasonable and supportable information available at the reporting date
without undue cost or effort.

Climate stress testing and scenario analysis

The Group has taken a robust scenario driven and factor push approach for stress testing exercise, combining quantitative and
qualitative methodologies to estimate forward-looking ECL impacts adjusted with stakeholder expectation on managing the ESG risk.
The purpose for the stress testing tool is to understand the potential impacts on selected portfolios, enhance the methodology, and
meet TCFD reporting and supervisor and central bank requirements going forward.
Due to modelling challenges with respect to relatively longer time horizons, limited historical observations and data availab ility,
the climate stress testing and scenario analysis however remains work in progress.
Following are the quantification steps to be followed to conduct stress testing exercise:
Step 1: Design and update scenario library
Scenario library is a living document containing potential external and internal ESG scenarios and their priority level, cove ring
both the climate-risk related scenarios and emerging risk scenarios for social and governance factors. The scenarios will be
shortlisted based on the alignment with regulatory recommended scenarios, priority level and the availability of longer horizon
estimates for macroeconomic variables to stress the parameters of Expected Credit Loss (ECL) modelling.
Note: Please refer to Annexure VIII for examples of stress scenarios.

Step 2: Quantitative assessment

The modelling of ESG related (including physical and transition risks for climate change) risks is in its infancy. For a start, the 71
Group has taken a
72
73
74
PRELIMINARY CLIMATE SCENARIO
Intergovernme
nt al Panel on
Climate
Change (IPCC)

Shared
Social
economic
Pathway
(SSP)

International
Energy
Agency (IEA)

Representativ
e
Concentration
Pathway
(RCPs)

Network for
Greening the
Financial
System

[Link]
75
SHARED SOCIALECONOMIC PATHWAY(SSP) & RCP
SCENARIOS
SSP Narratives
SSP1 Sustainability – Taking the Green Road (Low challenges to mitigation and adaptation)
The world shifts gradually, but pervasively, toward a more sustainable path, emphasizing more inclusive development that respects perceived
environmental boundaries. Management of the global commons slowly improves, educational and health investments accelerate the demographic
transition, and the emphasis on economic growth shifts toward a broader emphasis on human well-being. Driven by an increasing commitment to
achieving development goals, inequality is reduced both across and within countries. Consumption is oriented toward low material growth and lower
resource and energy intensity.
SSP2 Middle of the Road (Medium challenges to mitigation and adaptation)
The world follows a path in which social, economic, and technological trends do not shift markedly from historical patterns. Development and income
growth proceeds unevenly, with some countries making relatively good progress while others fall short of expectations. Global and national institutions
work toward but make slow progress in achieving sustainable development goals. Environmental systems experience degradation, although there are
some improvements and overall the intensity of resource and energy use declines. Global population growth is moderate and levels off in the second half
of the century. Income inequality persists o r improves only slowly and challenges to reducing vulnerability to societal and environmental changes remain.

SSP3 Regional Rivalry – A Rocky Road (High challenges to mitigation and adaptation)
A resurgent nationalism, concerns about competitiveness and security, and regional conflicts push countries to increasingly focus on domestic or, at most,
regional issues. Policies shift over time to become increasingly oriented toward national and regional security issues. Countries focus on achieving energy
and food security goals within their own regions at the expense of broader-based development. Investments in education and technological development
decline. Economic development is slow, consumption is material-intensive, and inequalities persist or worsen over time. Population growth is low in
industrialized and high in developing countries. A low international priority for addressing environmental concerns leads to strong environmental
degradation in some regions.
SSP4 Inequality – A Road Divided (Low challenges to mitigation, high challenges to adaptation)
Highly unequal investments in human capital, combined with increasing disparities in economic opportunity and political power , lead to increasing
inequalities and stratification both across and within countries. Over time, a gap widens between an internationally-connected society that contributes to
knowledge- and capital-intensive sectors of the global economy, and a fragmented collection of lower-income, poorly educated societies that work in a labor
intensive, low-tech economy. Social cohesion degrades and conflict and unrest become increasingly common. Technology development is high in the high-
tech economy and sectors. The globally connected energy sector diversifies, with investments in both carbon-intensive fuels like coal and unconventional
oil, but also low-carbon energy sources. Environmental policies focus on local issues around middle and high income areas.
SSP5 Fossil-fueled Development – Taking the Highway (High challenges to mitigation, low challenges to adaptation)
This world places increasing faith in competitive markets, innovation and participatory societies to produce rapid technological progress and development of
human capital as the path to sustainable development. Global markets are increasingly integrated. There are also strong investments in health, education,
and institutions to enhance human and social capital. At the same time, the push for economic and social development is coupled with the exploitation of
abundant fossil f uel resources and the adoption of resource and energy intensive lifestyles around the world. All these factors lead to rapid growth of the
[Link]
global economy, while global population peaks and declines in the 21st century. Local environmental problems like air pollution are successfully managed.
There is faith in the ability to effectively manage social and ecological systems, including by geo-engineering if necessary.
76
SHARED SOCIALECONOMIC PATHWAY(SSP)
NARRATIVES

77
REPRESENTATIVE CONCENTRATION PATHWAY
(RCP)
IN THE IPCC 5th ASSESSMENT
RCPs describe different greenhouse
REPORT
gas concentration trajectories and their impact on climate change. They are primarily used
to project future temperature changes based on different levels of radiative forcing by 2100, relative to pre-industrial levels
(measured in watts per square meter, W/m²).
Scenario Estimated CO2 Very likely range in
RCP
warming Concentration °C (2081–2100)
(2100) (Ppm by 2100)
RCP 1.9 is a pathway that limits global warming to below 1.5 °C, the
RCP 1.8 aspirational goal of the Paris Agreement 1.5%
RCP 2.6 is a "very stringent" pathway. According to the IPCC, RCP 2.6
requires that carbon dioxide (CO2) emissions start declining by 2020 and go

1.5°C - 2°C
to zero by 2100. It also requires that methane emissions (CH4) go to
approximately half the CH4 levels of 2020, and that sulphur dioxide (SO2)
RCP 2.6 emissions decline to approximately 10% of those of 1980–1990. Like all the 420ppm
other RCPs, RCP 2.6 requires negative CO 2 emissions (such as
CO2 absorption by trees). For RCP 2.6, those negative emissions would be on
average 2 Gigatons of CO2 per year (GtCO2/yr). RCP 2.6 is likely to keep global
temperature ri se below 2 °C by 2100
RCP 3.4 represents an intermediate pathway between the "very stringent"
RCP2.6 and less stringent mitigation effor ts associated with RCP4.5. As well
RCP 3.4 as just providing another option a variant of RCP3.4 includes
considerable removal of greenhouse gases from the atmosphere

RCP 4.5 is described by the IPCC as an intermediate scenario. Emissions in

RCP 4.5 peak around 2040, then decline. According to resource specialists
IPCC emission scenarios are biased towards exaggerated availability
of fossil fuels reserves; RCP 4.5 is the most probable baseline scenario (no
climate policies) taking into account the exhaustible character of non-
renewable fuels.[17][18]
According to the IPCC, RCP 4.5 requires that carbon dioxide (CO2) emissions
star t declining by approximately 2045 to reach roughly half of the levels of
2050 by 2100. It also requires that methane emissions (CH4) stop increasing by
2.4°C
RCP 4.5 2050 and decline somewhat to about 75% of the CH4 levels of 2040, and that -2.6°C
540ppm
sulphur dioxide (SO2) emissions decline to approximately 20% of those
of 1980–1990. Like all the other RCPs, RCP 4.5 requires negative 78
CO2 emissions (such as CO2 absorption by trees). For RCP 4.5, those
negative emissions would be 2 Gigatons of CO2 per year (GtCO2/yr). [16] RCP
SHARED SOCIALECONOMIC
PATHWAY(SSP)
IN THE
SSPs describeIPCC 6th ASSESSMENT
socioeconomic developments that couldREPORT
influence greenhouse gas emissions, climate adaptation, and
mitigation efforts. They outline different global development trends such as population growth, economic development,
technology, and policy decisions.
Scenario Estimated Estimated Very likely range in
SSP
warming warming °C (2081–2100)
(2041–2060) (2081–2100)

very low GHG emissions:

SSP1-1.9 1.6 °C 1.4 °C 1.0 – 1.8
CO2 emissions cut to net zero around 2050

low GHG emissions:

SSP1-2.6 1.7 °C 1.8 °C 1.3 – 2.4
CO2 emissions cut to net zero around 2075

intermediate GHG emissions:

SSP2-4.5
CO2 emissions around current levels until 2050, 2.0 °C 2.7 °C 2.1 – 3.5
(Likely)
then
falling but not reaching net zero by 2100

SSP3-7.0 high GHG emissions:

2.1 °C 3.6 °C 2.8 – 4.6
(Unlikely) CO2 emissions double by 2100

SSP5-8.5 very high GHG emissions:

2.4 °C 4.4 °C 3.3 – 5.7
(Highly CO2 emissions triple by 2075
Unlikely) 79
NETWORK FOR GREENING THE FINANCIAL SYSTEM
(NGFS)
SSPs describe socioeconomic developments that could influence greenhouse gas emissions, climate adaptation, and
mitigation efforts. They outline different global development trends such as population growth, economic development,
technology, and policy decisions.
Scenario
NGFS

scenarios assume climate policies are

Orderly introduced early and become gradually more
stringent. Both physical and transition risks are
relatively subdued.
scenarios explore higher transition risk due to
policies being delayed or divergent across
Disorderly
countries and sectors. For example, (shadow)
carbon prices are typically higher for a given
temperature outcome.

scenarios assume that some climate policies

are implemented in some jurisdictions, but
Hot house
global efforts are insufficient to halt significant
world
global warming. The scenarios result in severe
physical risk including irreversible impacts.

Too little, scenarios assume that a late and uncoordinated

too transition fails to limit physical risks.
late

80
DATABAS
E
Water Levels [Link]
el_above
_mhhw&basemap=roadmap&contiguous=true&elevation_model=best_available&refresh=true&water
_level=1.0&
water_unit=m
Water Risk [Link]
atlas/#/?advanced=false&basemap=hydro&indicator=w_awr_def_tot_cat&lat=-
World Resources Institute (WRI) Water Risk Atlas Tool, 14.445396942837744&lng=-
Aqueduct (Recommended by SASB) 142.85354599620152&mapMode=view&month=1&opacity=0.5&ponderation=DEF&predefined=false
&projection
Baseline water stress (To disclose water withdrawn & =absolute&scenario=optimistic&scope=baseline&timeScale=annual&year=baseline&zoom=2
consumed in locations with High or Extremely High)

[Link]
atlas/#/?
advanced=false&basemap=hydro&geoStore=0103742d088cc8b722ac444ed9163f79&indicator=bw
s_ca
t&lat=3.11711992446471&lng=101.9474843144417&mapMode=view&month=1&opacity=0.5&po
nderation=DE
F&predefined=false&projection=absolute&scenario=optimistic&scope=basins&threshold=40&time
Scale=annual &year=baseline&zoom=7

Malaysia Climate risk [Link]

Energy [Link]

GHG Calculator [Link]

GHG Conversion factor [Link]

SASB Industry Matters [Link]

Climate Scenario [Link]

81
[Link]

[Link]
TYPE OF
GHG
Type GWP Sources of Emissions
Electrical equipment: 𝑆𝐹6 is u sed as an insul ator in gas-ins ulated switc hgear (GIS), gas circuit breakers (GCB), and gas-ins ulated trans
formers (GIT). 𝑆𝐹6 can leak into the atmosphere durin g man ufacturing, inst al lation, maintenance, and de -commiss ioning.
Sulfur Hexafluoride (SF6) 23,900

producti on and use of 𝑆𝐹6 in Elec tric utilit ies can reduce 𝑆𝐹6 emissions by improving equipment, refurbishing ol der equipment, and using more efficient maintenance tec
emission s come from the

The Electric Power Syst ems Partnership, a volu ntary program run by the EPA, has helped elec tric utilit ies reduc e 𝑆𝐹6 emission s.
electrical equipment, hniques.
magnesium smelting, and

Semiconductor manufacturing : 𝑆𝐹6 is emitt ed during semiconductor manufacturing.

semiconductor Magnesium smelting:𝑆𝐹6 is emitt ed durin g mag nesium smelting.

𝑆𝐹6 production: 𝑆𝐹6 is produc ed by b urnin g sulfur in fluorine gas or by pyrolyzing 𝑆𝐹5𝐶𝑙
manufacturing.

SF6 is also used in several different indus tries including:

manufacture of electri cal trans mi ssion and distri bution
equipment manufacture of electron ics / semiconductors
producti on of mag nesium

Nitrogen trifluori de (NF3) 17,200 Manufacturing flat-panel displays, photovoltaics, LEDs, semiconductors, chemical lasers, DRAM computer memory

Hydrofluoroc arbons (HFCs) 4 to HFCs are used in air conditioners, refrigerat ors, fire extinguishers, aerosols,
12,400 and foams They are also used in some medical devices, such as asthma
inhalers
Perfl uorocarbons (PFCs) 6,6300 to Aluminum production : PFCs are a byproduc t of the electrolytic reduction of aluminum.
11,100 Semiconductor manufacturing : PFCs are used as plasma etc hing gases, but can be released into the atmosphere if not recovered or des troyed.
Rare earth metal production: PFCs are emitted during the elec trolytic reduct ion of rare earth metals.
Note GH G Sectorial Guide

Nitrous oxide (N2O) 265 Fossil fuel combustion: Burning oil, coal, and gas for energy
Fertilizers: Applying nitrogen fertilizers to farmland and pastures
Animal waste: Using animal waste on farmland and pastures
Rainforest fires: Fires that burn rainforests
Wastewater treatment: Incomplete denitrification in wastewater
treatment plants Natural processes: Bac teria breaking down nitrogen in
soil and oceans Production: Nitric Acid (GHG Sectorial Guide)

Methane (CH 4) 28 Agriculture: Livestock, manure, and rice paddies are all sources of methane emissions
Fossil fuels: Methane is emit ted duri ng the producti on, transport, and use of coal, oil, and natural gas
Landfills: Methane is released when organic waste in landfills dec ays
Wastewater treatment: Methane is emit ted duri ng wastewater treatment
Flaring: Methane is emit ted when flares are not designed, maintained, or operated correctly

[Link] heme/report-emissions-and-energy/nger-calculators 82

Carbon dioxide (CO2 ) 1 Burnin g fossil fuels like coal, oil, and natural gas for in dustry, tran sportation, and electri city prod uction
GHG
DATABASE
Refrigeration and Air-Conditioning (RAC) The RAC tool calculates the hydrofluorocarbon (HFC) and PFC
Equipment emissions from the manufacture, servicing, and/or disposal of RAC
equipment.
The tool offers three methods:
A sales based approach for manufacturers and users;
A life cycle stage approach for users; and
A basic screening approach that is intended to help companies
gauge whether or not their emissions merit the use of one of the
other, more advanced methods.

Allocation of Emissions from a Combined Heat

and Power (CHP) Plant

83
SUBSTANCE CONTROLLED BY MONTREAL
PROTOCOL
Type
Trichlorofluoromethane (CFC-
GWP Sources of Emissions

11)
4660
Foams: CFC-11 was used as a blowing agent in foams for buildings and refrigerators. These
foams are called the "CFC-11 bank".
Cooling systems: CFC-11 was used in cooling systems.

CFC-11 emissions occur when CFC-11 is lost during the foam production process.

Chlorofluorocarb 10,200
Refrigerant in air conditioners, cars, and other
widely used in air conditioners and other appliances until the mid-1990s.
on (CFC-12) The only remaining use for CFC-12 is as a fire retardant in aircraft and submarines

84
SUBSTANCE CONTROLLED BY MONTREAL
PROTOCOL
Type GWP Sources of Emissions

85
86
PHYSICAL RISK & OPPORTUNITY Timeframe: Medium and Long Term
Title Changes in Extreme Climate and Weather Category Acute/Regulatory Type Risk/Opportunity
Events
Description Changes in extreme climate and weather events such as rainfall, droughts and heatwaves affecting our operations and neighbouring
communities

Impacts Management approach:

1. Lack of structured compliance monitoring. a. Company secretary to advise on the compliance matters related
2. Lack of training/ awareness of the changes in rules and to Bursa
regulatory Securities, Securities Commission rules and requirements. (1)
requirements. b. Investigate non-compliance issue and take appropriate action. (1)
3. Delay in submission of reports to the relevant authorities. c. Operations team to ensure compliance with the relevant rules and
regulations (1)
d. Attend training / seminars on new requirements. (2)
e. Timely submission of regulatory information/ report. (3)

Likelihood Impact Risk rating

Existing risk rating Almost Certain Moderate High

Risk owner Insert Risk treatment Reduce

Risk Action Plan Due Date Responsibility

1. XXX
2. XXXXX
3. XXXXXX
Risk Type Risk Assessment Time Horizon Financial Impact Our Analysis

Emerging
Regulations Carbon
Pricing Mechanisms

Chronic Physical –
Water Scarcity

88
89
90
91
A Roadmap Navigating Climate
Risk Management Based on the wwFw
”GUidanee on Climate D i s c l o s e TCFD Recommendations(Task Force onClimate-RelatedFinancial Disclosures)
TECHNICAL SUPPORT
on s November 2o21. the stock Mhange of Hong rong Llmlted published tha “Guidance on
•ae alsz s7so I
Issuers In preparingTCFD-aligned climate change reposing. TCFD-atignad Approach to Climate Risk& Opporturdty ianaerinj
8danagemant
Key Steps Key elements for disclosure

01 GovamancaStrumure
Scenario Analwis
Given the |nsightfulness of' scenario enetysls recommended by TCFD and used in evaluating
potential Implicatlons of climate-related risks on business parformanca 1'rom a renge of plausible FormulataCllmateScenadoa
futurm climate states, st least two scenarios are suggested to be developed for comparlson, which
can be split Into Turquoise Scenario and Brown Scenerio. The principle of “Nigh contrast”.
“Balence” and “Science-based” shoMld be adhered to In developing the company's climate
scenarios.

02
Bualneca Mapping withMaterlat
C R B I (climate-related business impacts) Hotspots

Formulate Climate Action Plan

03
Climate-relatedFinancial Impacts
Climate-related Iln8nofel impacts refer to the impacts of climate-related risks end opportupidason
a company's Jinanciet performance or tinenclal position ecross different time horizons. The
financial Itams them will be impacted by tha identified cRB1 hotspots and indicators can Include
93
CLIMATE RELATED RISK AND
OPPORTUNITIES

94
95
96
97
98
CLIMATE SCENARIO ANALYSIS
The purpose of climate scenario analysis is to enable the Group to better understand, anticipate and respond to the
dynamic and complex challenges posed by climate change. Climate-related risks such as physical risks (e.g., extreme
weather events) and transition risks (e.g.,policy and legal actions) can affect organisations in many ways. By assessing
the potential impacts to its financial statement under different climate scenarios, the Group can identify vulnerabilities
and develop strategies to enhance resilience and mitigate business disruptions.

Conduct scenario analysis to comply with TCFD recommendations

 Step 1: Identifying and defining a range of scenarios which is relevant the Group that could have potential financial
impact, including a 2°C scenario, that provide a reasonable diversity of potential future climate states.

 Step 2: Assess the impact of those scenarios to the Group’s risk tolerance

 Step 3: Evaluating the potential resiliency of their strategic plans to the range of scenarios.

 Step 4: Using this assessment, identify options for increasing the organization’s strategic and business resiliency to
plausible climate- related risks and opportunities through adjustments to strategic and financial plans.

 Step 5: Report to the Management and/or Board trends and emerging climate-related issues as part of the risk
reporting

Scenario analysis using the Representative Concentration Pathway (“RCP”) adopted by the
Intergovernmental Panel on Climate Change (“IPCC”) and Network of Central Banks and Supervisors for Greening the
Financial System (“NGFS”) scenarios. 99
CLIMATE SCENARIO ANALYSIS
Climate risk can affect business operations, impacting the Group’s ability to continue generate revenue and maintain
sustainable growth.
Dependenc
y
Climate Risk Economy

Impac
Physical Risk t Business Risk
 Loss of ecosystem  Supply chain disruption
 Interactions with other ecological  Raw material prices volatility
issues  Limited substitutability of
essential ecosystem
Transition Risk service
 Change in customer sentiment  Productivity changes (e.g
with preference for greener agriculture)
alternatives  Changing demand and cost
 Technological changes, shift  Stranded assets
towards green energy transition  Relocation of activities
measures  Legal liabilities
 Policy and regulation
 Decrease asset value
changes i.e carbon pricing
and

Reputational and Liability Risk

 Lawsuits from harmed communities
 Fines from regulators

100
SUSTAINABILIT
Y REPORTING
PRINCIPLES

101
SUSTAINABILITY REPORTING PRINCIPLES
The Sustainability Working Group is accountable to prepare Sustainability Report (embedded in the Annual Report) that in
complied with the sustainability disclosure obligations as prescribed in the Bursa Listing Requirements. The disclosure requirement are
as follow:

 Sustainability Report scope and basis

 GHG emission based on financial control approach
 Materiality assessment results and management of material sustainability matters
 Sustainability governance
 Common sustainability matters and indicators
 3 financial years’ data for each reported indicator and corresponding performance targets (if any)
 Summary of data & targets in a prescribed format
 Statement of assurance
 TCFD-aligned disclosure (Deadline: FYE 31 December 2025)

The preparation of the reports shall be commence at least three (3) months in advance, before the release date of the Annual
Report. Sustainability Report shall be review and approved by Board Sustainability and Risk Management Committee
(“BSRMC”) and Board of Directors before release to the stakeholders.

Statement of Assurance
Sustainability Report is subject to an assurance process whereby:
a. Internal review by internal auditor; and/or
b. Independent assurance performed in accordance with recognized assurance standards.

Regardless the Sustainability Report is or is not subjected to an assurance process, the Group needs to provide a statement.

102
 SUSTAINABILIT
Y RISK & OPPORTUNITY
PARAMETERS

103
 IMPACT RATING
Criteria Negligible Minor Moderate Major Severe
Revenue Decreased by Decreased by Decreased by Decreased by Decreased by
<5% 5%-10% 10%-15% 15%-20% > 20%

Cost Increased by Increased Increased Increased Increased by

< than 7% by 7%- by 15%- by 20%- >25%
15% 25% 25%

Profit After Tax Decreased by Decreased by Decreased by Decreased by Decreased by

> Than 20% 20%-40% 40%-60% 60%-80% >80%
Non-Financial/ Qualitative Financial/ Quantitative

Net Assets Decreased by Decreased Decreased Decreased Decreased by

<5% by 5%- by 10%- by 15%- > 20%
10% 15% 20%

Cashflow Increased by Increased by Increased by Increased by Increased by

< than 7% 7%-15% 15%-25% 20%-25% >25%

Environment • No environmental damage • Minor environmental damage • Environmental • Extensive • Severe environmental
• Rectification occurs from damage environmental damage damage
within requiring the allocation of requiring major leading to fines and
existing budget some resources to rectify require
• Minor impact on resources to rectify • Continuous & serious significant resources to
aquatic • Significant changes in damage due rectify
ecosystem including flora to erosion to flora /fauna • Long-term and
flora, fauna /fauna populations & habitat population & habitat significant
& habitat • Damage to land, • Widespread damage to change in population or
• No significant impact on temporary land / habitat with
natural damage to ecosystem protected wild life negative impact on
resources • Creation of noise, odour, ecosystem functions
dust • Widespread destruction of
other controlled / land,
uncontrolled flora/fauna and or ground
air emissions water resources

Waste • Non-hazardous waste that • Non-hazardous waste going • Notable amount of • Significant amount • Large amount of
is to hazardous of hazardous
recycled landfill waste produced hazardous waste produced waste produced

Noise level • Minimal noise level • Acceptable noise level • Acceptable noise level, • Noise level bearable, but • Noise level higher than
and but close tolerated limits and frequent
intermittent frequent to the tolerated limits

Air Pollution • Air quality considered • Air quality is • General public is not likely • Public may begin to • Health alert/ warning.
satisfactory acceptable, to be experience health Everyone may
however some affected; Members of effects; Members of experience more serious
pollutants sensitive sensitive groups health effects
maybe cause health groups may experience may
concern for a very health experience more serious
small number of people effects health
who are unusually effects
sensitive to air
pollution

Water Pollution • Discharge of water in the • Discharge of • Discharge of slightly • Discharge of • Discharge of
pollute d wastewater
same state wastewater (sanitary polluted polluted 1 04
as at the origin (watering or wastewater (oil, solvent, wastewater (oil, solvent, (oil, solvent, etc.)
domestic) etc.) etc.)
 LIKELIHOOD RATING
Rating Description

90% chance of occurrence

Almost Almost certain to occur within the next 3 months
Certain
Will probably occur, could occur several times per year

75% chance of occurrence.

Likely The risk is likely to occur within the next 6 months

50% chance of occurrence

Possible Reasonable likelihood that it may arise at least once in the next 1 year

25% chance of occurrence

Unlikely Plausible, could occur at least once in the next 1 to 3 years

10% chance of occurrence

Rare Very unlikely to occur in the next 3 years or more, but not impossible

16
106
RISK
PARAMETERS
Potential Financial Time Horizon Risk & Opportunity
Impact
Current Financial Year Risk
Critical
Short Term < 5 year Opportunity
High
Medium Term 5 to 10 years
Medium
Long Term > 10 years
Low

Physical Risk Categories

Acute Acute physical risks refer to those that are event-driven, including increased severity of
extreme weather events, such as cyclones, hurricanes, heat or cold waves, or floods.
Chronic Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher
temperatures, sea level rise, changing precipitation patterns) that may cause sea level rise or
chronic heat waves.

107
108
RISK RATING
MATRIX
Magnitude of Impact/Consequences on Business Prospect

Negligible Minor Moderate Major Severe

Almos Medium High High Critical Critical

t
Certai
Likelihood of Occurrence

Likely Medium Medium High High Critical

Possible Low Medium Medium High High

Unlikely Low Low Medium Medium High

Rare Low Low Low Medium Medium

18
APPENDICE
S

110
 APPENDIX
A: KEY
STAKEHOLDER
ENGAGEMENT
REGISTER

111
Stakeholder Group Employees
Engagement objectives We promote a culture of excellence and accountability, as well as educating and providing fulfilling career opportunities
and livelihoods. To execute our strategy and achieve our business goals, we must attract, retain and develop top talents
and build a highly engaged and future-ready workforce.

Engagement channel Annually As needed

Key Concerns Response/ Actions Materials Matters

• Job security • Human Capital Management

• Professional growth and Development
and development • Diversity, Equity and Inclusion
• Succession • Health and Safety
• Work-life balance
• Overall well-being
• Safety and security
• Company culture
• Workplace environment
and conditions

Action Plan Due Date Responsibility 11

2
Stakeholder Group Investors and shareholders
Engagement objectives

Engagement channel Annually As needed

Key Concerns Response/ Actions Materials Matters

• Governance • Outlook and Strategy

• Growth and balance • Risks and Opportunities
sheet management • Climate Action
• Portfolio construction • Business Practices and Corporate Governance
• Sustainable Financing and Investment
• Innovation
• Business Review

Action Plan Due Date Responsibility

113
Stakeholder Group Banks and creditors
Engagement objectives

Engagement channel Annually As needed

Key Concerns Response/ Actions Materials Matters

• Financial and • Outlook and Strategy

operational performance • Risks and Opportunities
• ESG strategy • Climate Action
• Credit management • Business Practices and Corporate Governance
• Sustainable finance • Sustainable Financing and Investment
Action Plan Due Date Responsibility

114
Stakeholder Group Business partners and affiliates
Engagement objectives

Engagement channel Annually As needed

Key Concerns Response/ Actions Materials Matters

• Financial and • Outlook and Strategy

operational performance • Risks and Opportunities
• ESG strategy • Climate Action
• Credit management • Business Practices and Corporate Governance
• Sustainable finance • Sustainable Financing and Investment
Action Plan Due Date Responsibility

115
 Sustainability Material Matters

Material Matters Objective

Relevance
to
Business
Sustainability Metric Target Achievement
Sustainabili Indicator
FY2021 FY2022 FY2023
ty Indicator

Root cause for non-achievement of targets:

Existing Measures

Action Plan Due Date Responsibility

116
MATERIAL MATTERS
SUMMARY
No Material Matter Existing Measures Targets and Performance

1. Occupational 1. Established internal Safety and Health Committee responsible for monitoring, discussing, and
Metric Target FY2024
Safety and Health implementing solutions to safety and health issues. These Committee hold
quarterly meeting to discuss on the enforcement of Health, Safety, Environment
Lost time Incident Rate (“LTIR”) (*) (rate) Zero Zero
and Security Policy, review incidents and corrective actions to be taken, implementation of pre
The Group is vention measures and monitor the effectiveness of the measures implemented, among
ethically responsible
others. Work-related fatalities (*) (Number of Zero Zero
to prevent cases)
accidents,
injuries, 2. The Group has obtained OHSAS 45001 certification to manage and continuously improve the Number of employe es trained on Health - 96
occupational employees’ safety and and
illnesses, working environments.
damage to properties
Safety Standards (*)
and any adverse
effect on the 3. HSE Department is set-up and competent safety officers are appointed and stationed at each workshop
environment, and to to manage the
protect our ove rall Group’s HSE matters, including fabrication plant and project site.
employees, customers
and the general public
4. Internal HSE inspections are performed monthly for Pasir Gudang, Kuantan and Bintulu workshops to
from exposure to
health or safety risks. ensure the practices
comply with Group HSE policies and procedures and relevant HSE rules and regulations.
Relevant Sustainability Policies, Standards and Guidelines
5. These are the steps implemented to reduce safety and health risks in the Group:
a. Yearly HSE Management Programme developed to spell out the HSE actions or programmes to XXXXXXXXX
undertake n for the X
year. XXXXXXXXX
b. Provision of personal protective equipment (“PPE”) for staff personal safety XXXXXXXX
c. Close supervision and guidance by line managers and supervisors XXXXXXX
d. Employment of competent staff to handle selected machinery and equipment
e. Checking of work sites for compliance with Safety and Health Policy and Procedures
f. Periodic safety briefings
g. Audiometric test assessment on employees conduct yearly.
h. Chemical Health Risk Assessments (“CHRA”) and Hazard Identification, Risk Assessment and
Control Measures
(“HIRAC”) are performed at Pasir Gudang and Kuantan workshops.
i. Incident response and reporting procedures are developed.
j. Safety and Health trainings for employees identified by Heads of Department:
I. Emergency Response Plan (ERP)
II. Working at height
III. Chemical handling
IV. Electrical safety
V. Health, Safety and Environment (HSE) awareness
VI. Training on handling of chemical and PPE include safety helmets, safety shoes, reflective vests,
gloves and eye
protection goggles
VII. Organise fire safety drill sessions once a year
Action Plans:
<To be identified post-listing> 117
APPENDIX C: COMMON SUSTAINABILITY
MATTERS
Common Sustainability Matters Common Indicators

Anti-Corruption • Percentage of employees who have received training on anti-corruption by employee category
• Percentage of operations assessed for corruption related risks
• Confirmed incidents of corruption and action taken

Community / Society • Total amount invested in the community where the target beneficiaries are external to the listed issuer
• Total number of beneficiaries of the investment in communities

Diversity • Percentage of employees by gender and age group, for each employee category
• Percentage of directors by gender and age group

Energy Management • Total energy consumption

Health and Safety • Number of work-related fatalities

• Lost time incident rate
• Number of employees trained on health and safety standards

Labour practices and standards • Total hours of training by employee category

• Percentage of employees that are contractors or temporary staff
• Total number of employee turnover by employee category
• Number of substantiated complaints concerning human rights violations

Supply Chain Management • Proportion of spending on local suppliers

Data privacy and security • Number of substantiated complaints concerning breaches of customer privacy and losses of customer data

Water • Total volume of water used

Waste Management Total waste generated, and a breakdown of the following:

(To be disclosed in FY2024) i. Total waste diverted from disposal
ii. Total waste directed to disposal

Emissions management • Scope 1 emissions in tonnes of CO2e

(To be disclosed in FY2024) • Scope 2 emissions in tonnes of CO2e
• Scope 3 emissions in tonnes of CO2e (at least for the categories of business travel and employee commuting)

118
 For more information, please contact
us at:
Choo Seng
ChoonPhone: 016-211 6799
Email:
sengchoon@[Link]
Melissa Koay
Phone: 012-233 3197
Contact Email:
melissa@[Link]
Website:

Us [Link]

Our Corproate Office

29-2, Level 29, Oval
Damansara,
685, Jalan Damansara, TTDI,
60000, Kuala Lumpur

Our Operations & Admin

Office Lot 26, Level 2, Eco
Sky,
No. 972, Batu 6½, Jalan
Ipoh,
68100, Kuala Lumpur
11 111
9
199
120
GREENHOUSE GAS
EMISSIONS
Topic Metric Category Unit of
Measureme
Code

nt

Greenh ouse Gross global Scope 1 emission s, percentage covered u nder emission s limiting Regulations Quantitati ve Metric tonnes RT-CH-110 a.1
Gas Emissions (t)
CO₂-e,
Percentag
e (%)

Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions Discussio n/a RT-CH-110 a.2
reduction targets, and an analysis of performance against those targets n and
Analysis

Fuel consumed by (1) road transport, Quantit Gigajou

percentage (a) natural gas and (b) renewable, ative les (GJ),
and (2) air transport, percentage (a) alternative Percent
and (b) sustainable age (%)

121
AIR
QUALITY
Topic Metric Category Unit of
Measureme
Code

nt

Air Quality Air emissi ons of the following pollutants: Quantitati ve Metric tonnes RT-CH-120 a.1
(1) NOX (excluding N2O), (t)
(2) SOX,
(3) volatile organic compounds (VOCs), and
(4) hazardous air pollutants (HAPs)

122
ENERGY
MANAGEMENT
Topic Metric Category Unit of
Measureme
Code

nt

Energy Management (1) Total energy cons umed, Quantitati ve Gigajoules RT-CH-130 a.1
(2) percentage gri d electri city, (GJ),
(3)percentage renewable and Perce
(4) total self-generated energy 1

123
WATER
MANAGEMENT
Topic Metric Category Unit of
Measureme
Code

nt

Water Managemen t (1) Total water with drawn, (2 ) total Quantitati ve Thousand RT-CH-140 a.1
water consumed; perc entage of each cubic metres
in regions with High or Extremely (m³),
High Baseline Percentage
Water Stress (%)

Number of inciden ts of non- Quantitative Number RT-CH-140 a.2

compliance assoc iated with water
quality permits, standards and
regulations
Desc ript ion of water managemen t Di scuss RT-CH-140 a.3
risks and discussion of strat egies and ion and
prac tices to mitigate those risks Analysis

124
HAZARDOUS WASTE
MANAGEMENT
Topic Metric Category Unit of
Measureme
Code

nt

Hazardous Was te Management (1) Amount of hazardous waste Quantitati ve Metric tonnes RT-CH-150 a.1
generated, (2) percentage recycled (t),
Percentag
e (%)

125
COMMUNITY
RELATIONS
Topic Metric Category Unit of
Measureme
Code

nt

Community Relations (Disc ussion of engagement processes to Di scuss Metric tonnes RT-CH-210 a.1
manage risks and opportunities ion and (t),
assoc iated with community interests Analysis Percentag
e (%)

126
WORKFORCE HEALTH &
SAFETY
Topic Metric Category Unit of
Measureme
Code

nt

Community Relations (1) Total recordable incident rate (TRIR)

( Di scuss
ion and
Metric tonnes
(t),
RT-CH-210 a.1

and (2) fatality rate for (a) direct Analysis Percentag

employees and (b) contract employees e (%)

127
128
 EXTERNAL ENVIRONMENT

PURPOSE, MISSION, VISSION

Financi
“ Risks and Strategy and al
“ Opportuniti Resource
- - - es Allocation Manufactur
• BUSINESS ed
MODEL
- - . Intellectu
- . al
Outcomes
(Positive and
• Negative
Over the
. Short, Medium Huma
and Long n
Term)
• - - Social
- -• • and
• Relationshi
p
Performanc Outloo Natur
e k al

VALUE CREATION, PRESERVATION OR EROSION OVER TIME

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