19EMISSION MANAGEMENT Related UNSDGs Why Is It Important Climate change is a global challenge that can only be mitigated through collective efforts to reduce greenhouse gas (“GHG”) emissions. In Malaysia, this is reflected in the national aspiration to move towards net zero emissions by 2050, which will require coordinated action across industries. As a corporate entity, our ability to reduce emissions is influenced by financial feasibility. Nevertheless, as a responsible developer and operator, we recognise the importance of doing our part in managing emissions associated with our activities. Emissions also present financial and operational considerations. The introduction of carbon pricing or taxes, as well as increases in energy and fuel costs, may increase operating and development costs. This applies to emissions from our own energy use and fuel consumption, as well as construction materials such as cement and steel, where carbon-related costs may be passed through to us. Goal 13: Climate Action OUR APPROACH Scope 1 & Scope 2 GHG Emissions Scope 1 and Scope 2 emissions are managed through our energy management efforts, as discussed and outlined in the Energy Management section. Key measures include: • Optimising electricity use across our operational assets, including Tropicana Golf & Country Resort and our offices • Maintaining vehicles, generators, and equipment to support efficient fuel use • Adopting solar photovoltaic systems to increase the use of renewable energy • Improving energy efficiency through maintenance and operational monitoring across our assets Scope 3 Emissions Scope 3 emissions for the Group are primarily driven by construction-related activities across our value chain, particularly the use of building materials and contractor operations. These emissions are largely outside our direct operational control but are influenced through procurement practices, project planning and development design. In our business, these emissions are closely linked to development cost. A significant portion arises from embodied carbon in key materials such as cement and steel, as well as energy used by contractors across the construction process. These inputs are inherently energy-intensive and form a core component of our project cost structure. As the operating environment evolves, including changes in energy pricing, subsidy rationalisation and carbon-related policies, these cost drivers remain relevant to how we plan and deliver our developments. As a property developer, our primary responsibility is to deliver quality developments that meet customer expectations, regulatory requirements, and commercial objectives. As such, decisions relating to materials, construction methods and design are made within practical constraints, including cost, buildability, project timelines, and market positioning. Within these constraints, we focus on areas where we can reasonably influence outcomes, such as improving material efficiency, reducing rework and wastage, incorporating practical design enhancements, and working with contractors and suppliers to support more efficient project delivery. AR 2025 | SUSTAINABILITY 174
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