Sustainability Statement Sustainability Statement MANAGING SUSTAINABILITY ENVIRONMENTAL RESPONSIBILITY In FY2021, we set a greenhouse gas (GHG) emission intensity reduction target of 20% by FY2026 from baseline year FY2020. As part of our ongoing endeavours to improve data integrity, we regularly assess our reporting methodology and procedures. In FY2024, we conducted a thorough review of past-year environmental data and identified discrepancies in our FY2020 GHG emission intensity. After rectifying and standardising the data to the same baseline criteria, the intensity was restated to 37.1 tCO2e/RM Mil Revenue, indicating an increase from the previously disclosed 32.3 tCO2e/RM Mil Revenue. In FY2024, our GHG emission intensity was recorded at 34.46 tCO2e/ RM Mil Revenue, marking an 7.0% reduction from the base year. While our historical data shows a downward trend in intensity over the years, we recognise the need for additional efforts over the next two years to achieve our set target. As a player in the agriculture industry, QL is vulnerable to the impacts of climate change due to our heavy reliance on climate-dependent operations. We are dedicated to growing our business responsibly, mindful of our environmental footprint, and promoting responsible practices within our organisation. This year, our efforts have centred on increasing our use of renewable energy, improving energy and water efficiencies, and advancing waste management. We are confident that these initiatives will strengthen QL’s dedication to combatting climate change and ensuring the resilience of our business. Reduce 20% GHG emissions intensity by FY2026 from FY2020 baseline (37.1 tCO2e/ RM Mil Revenue) Reduced 7.0% GHG intensity from base year FY2020 Zero regulatory violation (fines, court case) in respect to quality of air emissions per year Zero violation reported Zero regulatory violation (fines, court case) in respect to quality of effluent discharge per year Zero violation reported Zero regulatory violation (fines, court case) in respect to management of hazardous waste per year Zero violation reported FY24 Performance Target Material Matter Climate Change • Reduced 7.0% GHG emissions intensity from base year FY2020 (37.1 tCO2e/RM Mil Revenue) • Generated 977,506.75 GJ of renewable energy from solar, biogas and biomass • Avoided 25,795.97 tonnes of GHG emissions Climate change poses a substantial challenge to our business operations, impacting our entire supply chain from raw materials sourcing to products manufacturing, logistics, and products delivery to customers. QL acknowledges that our operations contribute to greenhouse gas emissions and is proactively addressing climate impacts. In addition, we are dedicated to utilise renewable energy from diverse sustainable sources. Performance Our Approach Identifying Risks and Seizing Opportunities QL acknowledges the significance of climate change as a crucial business concern and recognises the detrimental effects and associated risks climate change poses to our business operations. In FY2024, we have identified a list of climate-related risks and opportunities spanning short, medium, and long-term horizons. These risks and opportunities will be addressed in our strategies in the future. The below table presents climate change risks and opportunities related to QL’s operations: Risk Category Risk and Description Time Horizon Policy and Legal Increased regulatory requirement such as reporting obligation may lead to higher compliance cost and impairment of assets. Short-term to long-term Technology Cost of transitioning to lower emission technology includes arising from investment in technology to reduce reliance on fossil fuel, improve energy efficiency and mitigate emissions to improve air quality. Short-term to long-term Market and Reputation Changing stakeholders’ preference such as shift in consumer demand to climate-change friendly products, reduced financing availability in affected sectors etc. Short-term to long-term Acute Increased extreme weather patterns such as heatwave drought, cyclones, flood and turbulent sea condition could result in supply chain interruption such as disruption of fishing activities crop production and livestock productivity. In addition, this could lead to reduced production capacity and increased insurance premium as result of increased exposure to assets damage. Short-term to long-term Chronic Rising temperature may have affect human health which may lead to increased medical cost and reduced productivity. Rising temperature may also lead to the increase in energy cost for poultry farming and marine production operations which requires climate controlled environment. Long-term Energy Source Reduced operating cost can be achieved by utilising alternate source of fuel and energy including renewable energies such as biomass and solar. Short-term to long-term Products and Services Development of products through R&D and innovation to penetrate new market e.g. segment of customers who prefer ESG friendly products. BM Greentech Berhad, being a clean energy solution provider, stands to benefit from such climate-change transition. Short-term to long-term While the Group is embarking on a journey to TCFD disclosures, Management believes that the understanding will progressively deepen with regards to how climate change will affect the Group. Similarly, the necessary organisational skills and capabilities to assess climate-related risks and opportunities will be improved including the use of scenario analysis. Therefore, the climate change risk, opportunities and mitigations will be periodically reviewed and updated. Transition Risks Physical Risks Opportunities CC Our Targets PR CC QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2024 40 41 SUSTAINABILITY STATEMENT 5 SEC.
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