THE JOURNEY TO A LOW-CARBON WORLD

THE STAR, Friday 24 June 2022

THE JOURNEY TO A

LOW-CARBON
WORLD

Climate change is intensifying, with rising
temperatures continuing to seriously impact lives

and the environment. This begs the question –
are we doing enough to better the future of
our country and by extension, the planet?

2 News STARESG, FRIDAY 24 JUNE 2022

Taking

climate risk
seriously

Businesses need to tackle climate change issues to ensure continuity and sustainability

By CALYN YAP Climate risk concerns emission goals by 2050 grew tremendously, 966%), government and/or intergovernmen-
[email protected] these commitments “often lacked interim tal targets (63%) and investor demands
Reflecting the growing global concern over emission reduction targets or plans to curb (62%).
THE war against climate change has escalat- climate change, a fair number of companies indirect emissions that occur along the sup-
ed in recent years, with all eyes firmly set on are taking a long-term view on sustainability ply chain.” Emerging challenges
defusing its far-reaching impacts before we issues beyond financial concerns, with 18%
hit the point of no return – especially with of the top 20 public-listed companies com- That said, it also noted that rising pressure With investors and other stakeholders
the United Nations Inter­governmental Panel mitting to net zero and 38% of the figure from various stakeholders will encourage seriously considering ESG risks relating to
on Climate Change stating that greenhouse being science-aligned. the development of concrete, near-term climate, pressure will also grow on corporate
gas (GHG) emissions need to peak before plans to address emissions across the full boards and government leaders to enhance
2025 to limit global warming to around Bursa Malaysia’s ESG Programme Survey value chain. their ESG skills, as they will be required to
1.5°C, as per the Paris Agreement. 2021 also finds that although 55% of demonstrate that they can understand and
Malaysian companies claim to have a sus- “Beyond the established focus on emission oversee ESG issues.
According to a PwC report released in tainability plan and roadmap, 38% are seek- reductions, the spotlight will extend to how
April this year, titled Positioning Corporate ing assistance to create one. entities manage exposure to physical climate In 2021, there has been an increase in
Malaysia for a Sustainable Future, although risks, including the presence and/or adequa- shareholder activism in demanding better
Malaysia is already ahead in Asean and sec- Among the biggest challenges that corpo- cy of adaptation and resiliency planning,” accountability from leaders, including votes
ond only to Singapore in its environmental, rations – not just governments – would face the report stated. against directors for lacking credible climate
social and governance (ESG) journey, there is is turning net zero pledges into near-term action plans, according to the S&P Global
room for improvement when compared to action, according to a January 2022 S&P Climate risk, according to the PwC 25th report.
developed Asian nations. Global report on Key Trends that will Drive Annual Global CEO Survey, ranks fourth
the ESG Agenda in 2022. (59%) in the primary influential factors It further added that the trend is set to
That’s not to say that the country has not behind carbon-neutral and net-zero commit- pick up speed during the 2022 proxy season.
made positive strides in the right direction While it noted that the number of govern- ments, after meeting customer expectations
towards a sustainable future via climate poli- ments and large companies setting net zero
cies and net zero targets.

Malaysia has committed to keep global
warming below 1.5°C, delivering on the four
mandates from the Cabinet at the 2021
United Nations Climate Change Conference,
better known as COP26.

These include climate change negotiations
on rules governing international carbon
markets, transparency of emissions report-
ing, common timeframe for the Nationally
Determined Contributions, and climate
finance.

There is also the Ministry of Environ­ment
and Water’s Malaysia Climate Change Action
Council, which will implement the Low
Carbon Mobility Development Plan 2021-
2030, including targets to reduce 165 million
tonnes of carbon dioxide emissions, save
RM150bil fuel expenditure over a decade
and promote the use of electric vehicles and
other low carbon transportation.

Moreover, Malaysia has the National
Fourth Industrial Revolution Policy, which
includes initiatives that support financing for
IR4.0 climate technology, in order to achieve
sustainable growth for the nation.

But that’s the public sector. How, then, is
the private sector playing a role in helping
achieve a decarbonised world?

STARESG, FRIDAY 24 JUNE 2022 News 3

There are three pressure points that can help push those in leadership positions to prices, building renovation requirements, or
become more proactive when it comes to tackling climate risks, including growing potential competitive impacts on logistics
financial pressures from financial institutions, stronger government decarbonisation chains,” the report said.
commitments and improved non-financial reporting.
It goes on to say that climate risks “should
The PwC 25th Annual Global CEO Survey revealed: “Climate risks are not only worry- factor more heavily in a CEO’s thinking and
revealed that among those with net zero ing business challenges for CEOs and other start informing all of a company’s climate-re-
commitments, the most highly represented leaders, but deeply human challenges, too. lated decisions”, as stakeholders will be
sectors are energy, power and utilities. One case in point: the massive investments ready to refocus corporate attention to the
that B2B (business-to-business) companies issue.
A May article in the strategy+business have made in back-office service centres in
magazine, published by certain member countries such as India – parts of which face Even so, there are three pressure points
life threatening heat and humidity spikes in that can help push those in leadership posi-
firms of the PwC network, high- the coming years.” tions to become more proactive when it
lighted that “too few CEOs comes to tackling climate risks, including
(chief executive officers) But the issue lies in the fact that top man- growing financial pressures from financial
are looking closely agement have a general knowledge of the institutions to identify hidden climate risks
enough at the physical impacts of climate change, yet there is a dis- in their portfolios, stronger government
and transition risks connect in the understanding of how these decarbonisation commitments – 90% of the
that a changing cli- could specifically affect their businesses. global economy has net-zero pledges, com-
mate poses to pared to 16% in 2019 – and improved non-fi-
their compa- “We find that leaders have much less of an nancial reporting via frameworks and stand-
nies”, aside understanding of the specific impact that cli- ards such as the Taskforce for Climate-
from carbon-in- mate change could have on their business – Related Financial Disclosures.
tensive sectors. for example, the physical risks to operations,
The report infrastructure, or to a company’s supply The report in turn strongly recommends
Time to get chain, let alone to the business-related tran- that leaders look into serious climate risk
Serious about sition risks that a societal and economic shift assessment to help them “uncover and prior-
the Realities of to a decarbonised world would bring, such itise opportunities to thrive in a climate-chal-
Climate Risk as changes in demand, the impact on energy lenged world”, as companies that build faster
understanding will have more strategic free-
The trend is seeing stakeholders focus on Scope 3, dom to plan for climate risks, decarbonise
which means that the carbon footprint of a company and reimagine value creation for the years
can only be truly gauged if it takes into account GHG to come.
emissions along a company’s entire supply chain.
Furthermore, with the spotlight on the
need for increased effort to avert a future cli-
mate disaster, it is no longer enough for
companies to be carbon neutral. Now, specif-
ic, actionable net-zero targets are the way
forward for companies.

Going beyond the early days of how GHG
is determined, companies will have to go fur-
ther in-depth into how they report and
address their emissions, as stakeholders
become increasingly ESG savvy – be it con-
sumers, investors and policymakers, among
others.

Universally, GHG is split into three groups:
Scope 1 relates to sources directly owned or
controlled by a company such as factories or
production facilities; Scope 2 from energy
purchased by a company; and Scope 3 for
emissions arising from all other activities in
a company’s value chain.

The trend is seeing stakeholders focus on
Scope 3, which means that the carbon foot-
print of a company can only be truly gauged
if it takes into account GHG emissions along
a company’s entire supply chain.

Beyond the established
focus on emission

reductions, the spotlight will
extend to how entities
manage exposure to
physical climate risks,

including the presence and/
or adequacy of adaptation

and resiliency planning.

GHG emissions need to peak before 2025 to limit global warming to around 1.5°C, as per the Paris Agreement, before the impacts of
climate change become irreversible.

4 News STARESG, Friday 24 June 2022

The Arctic could Threat to
be ice-free in 18 humanity
years, according to
the Arctic Council. We must strive to reduce our carbon
footprint to protect the Earth from the
harmful effects of climate change

By SHEELA CHANDRAN decade. Over 30 years, the oldest and thick-
CLIMATE change is said est ice in the Arctic has declined by 95%.
to be the biggest threat to
humanity today. Activities like burning fossil fuels trap
heat in the atmosphere and have resulted in
We are already experi- the accumulation of greenhouse gases.
encing its devastating Global warming has increased tempera-
impacts such as sea-level tures, causing glaciers and ice sheets to
rise that leads to coastal melt.
erosion; drier weather lead-
ing to drought, and intense The effects:
rainfall.
The World Health Rising temperatures
Organisation’s (WHO) overview The polar ice caps aren’t the only ones
on climate change states that this
environmental dilemma is impact- melting. For example, the ice caps of
ing human lives and health in vari- Tanzania’s Mount Kilimanjaro have melt-
ous ways. ed over 80% since 1912.
It threatens the essential ingredients
of good health – clean air, safe drinking As the Earth gets warmer, scientists
water, nutritious food supply and safe have noticed signs of change across the
shelter – and has the potential to under- planet, including the distribution of
mine decades of progress in global health. ice, salinity and the oceans’ tempera-
“Between 2030 and 2050, climate change tures.
is expected to cause approximately 250,000 Extinction
additional deaths per year from malnutri-
tion, malaria, diarrhoea and heat stress The increased temperatures in
alone. the Arctic are pushing many ani-
The direct damage costs to health are esti- mals to extinction.
mated to be between RM8.8bil and
RM17.6bil per year by 2030,” it said. With lesser sea ice, animals like
During the United Nations Climate polar bears, walruses and rein-
Change Conference in Glasgow last deer that depend on it for their
November, leaders agreed that carbon diox- survival must quickly adapt or
ide emissions must be reduced by 45% by die.
2030.
Leaders also acknowledged the need to A 2022 report released by the
move away from fossil fuels and pledged to United Nation’s Intergovernmental
cut carbon dioxide emissions further. Panel on Climate Change expects
The theme of World Earth Day 2022 is more climate-related extinctions
‘Invest In Our Planet’, where businesses and with rising global temperatures in the
individuals are encouraged to shift towards next few decades.
sustainable practices. Rising sea levels
Malaysians and people all over the world
need to rethink their daily habits and The Arctic is heating up twice as
reduce their carbon footprint. fast as the rest of the world, contrib-
There is no Planet B. So let’s do our part uting to rising sea levels. In the long
to take care of Mother Earth. run, coastal communities will even-
tually have to move inland, and glob-
Impact of al weather patterns will shift drasti-
climate change cally.

1. Polar Do you know the Maldives, Kiribati
degradation and the Solomon Islands are among the
places at risk of disappearing due to cli-
According to the Arctic mate change?
Council, the Arctic could
be ice-free in 18 years. 2. Drought
Scientists predict the sum- Drought occurs when there are prolonged
mer of 2040 will see the water supply shortages, whether it’s atmos-
end of the frozen North pheric, surface water or groundwater. A
Pole after the rapid melt- drought can last for months or years.
ing of the ice coverage in
recent years. Global warming increases the risk of
The Arctic sea ice has drought, as warmer temperatures enhance
melted at almost 13% per evaporation, reduce surface water, and
dries out soils and vegetation.

The effects:

Environmental impact
During a drought, animals’ food sup-

ply shrinks. In addition, lower water
levels in reservoirs, lakes and ponds can
lead to increased diseases in wild ani-
mals.

Water is among the precious
resources that we often take
for granted in our daily lives.

STARESG, Friday 24 June 2022 News 5

Maldives could disappear under the sea if measures aren’t taken to control climate change. — Filepic

tion. This figure could increase to 20 mil- 4. Change in weather -5.9% to -30.9% by 2050 in various parts of
lion by September, according to humani- the country.
tarian portal, ReliefWeb. Some climate experts say climate change
results in severe weather patterns. The effects:
3. Soil pollution
According to the United Nations, 52% of It causes more prolonged droughts, high- Power outage
agricultural soil in the world is degraded, er temperatures in some regions, and more Storms, hurricanes and floods can lead to
and more than 90% could become contami- intense flooding in other countries.
nated by 2050. When soil loses its organic power outages. Power failures can cripple
content, it turns to sand. According to the Asean State of Climate transportation and emergency systems
Change Report 2021, a 2°C increase could when we need them most.
Healthy soils supply our food-producing cause a decline in rice yields by one tonne Mental health
plants with essential nutrients, water and per hectare.
root support. The impact of floods, droughts, and heat
As a result, rice yields in Malaysia could waves can lead to mental health concerns,
In March, Indian spiritual leader face a projected decline in the range of including anxiety, paranoia, depression,
Sadhguru (Jaggi Vasudev) started the ‘Save and suicide.
Our Soil’ movement to promote awareness
Economic impact of soil health. Rise in dengue cases
Farmers may lose their Hot weather with intermittent rain can
source of income if a drought The yoga guru is currently travelling on
destroys their crops. Ships may his motorbike from London to India across lead to an increase in the Aedes mosquito
face difficulty navigating 27 countries in 100 days to address land population.
streams and rivers because of degradation and climate change.
low water levels. The article ‘How To Live With It: Health
Tips for improving soil quality: Risks’ on www.nationalgeographic.com
On a more extensive scale states that mosquito-borne dengue fever
of things, consumers might Composting has increased 30-fold in the past 50 years.
have to fork out more money Compost is a disintegrated organic matter Three-quarters of those exposed so far live
for food. in the Asia-Pacific region.
where microbes and fungi assist in the
Social impact breaking-down process. > turn to page 8
We use water for many
things like cooking, wash- Compost is a safer alternative to chemical The Arctic is heating
ing dishes and planting fertilisers because it improves the overall up twice as fast as
crops. condition of the soil after being used for the rest of the world,
However, low rainfall several months. contributing to rising
can lead to low water flow sea levels.
and poor water quality, In addition, it has natural microbes
impacting sanitation, which keep plants healthier.
hygiene, and food and Planting a tree
nutrition.
Tree planting is vital in controlling
Over 18 million people the climate and acting as a natural
across Ethiopia, Kenya buffer to reduce damage caused by
and Somalia are already erosion.
facing high food insecu-
rity and rising malnutri- Plus, trees help increase aeration
while boosting nutrients in the soil.

6 Feature STARESG, Friday 24 June 2022

Uplifting

communities to fight
climate change

By CALYN YAP IOIPG leverages on meaningful collaborations and partnerships
[email protected] to create positive impact on a larger scale
WITH aspirations to build a sustainable
future, IOI Properties Group (IOIPG) remains a crucial role in addressing climate change.
cognisant of the impacts of climate change Therefore, IOIPG placed a strong emphasis
on communities and the environment.
on generating awareness, increasing public
As part of its corporate responsibility initi- participation and promoting a sustainable
atives, the group has continued to raise lifestyle to encourage Malaysians to be a part
awareness and encourage communities and of its journey in fighting climate change.
stakeholders to join the fight against climate
change to minimise its effects. This campaign is aimed at inspiring sus-
tainability ownership and encouraging sus-
In efforts to take ownership and lead the tainable lifestyles as every small step makes
charge, environmental, social and govern- a big difference.
ance (ESG) considerations have been built
into the business strategies of IOIPG, which IOI Connects to Earth also invests in com-
are aligned with the United Nations munity programmes that are aligned to its
Sustainable Development Goals (SDGs). campaign in schools and neighbourhoods
within its townships, in which many of its
Case in point is the group’s four sustaina- community investments are focused on
bility goals, which achieves the core purpose youths.
of creating a sustainable future as part of its
business strategy. Involving communities to join across the group to encourage conversations On top of that, the group collaborated with
to drive a collective effort towards climate a local university in the International Youth
To further support the realisation of these the fight change adaptation and mitigation. Development Virtual Conference (IYDVC).
goals, IOIPG has created four sustainability The virtual conference, which was fully
strategic themes to guide all of its following Realising that mentality and mindset are As part of these events, it has organised sponsored by IOIPG, centred around the
programmes and initiatives aimed at chang- key drivers for change, IOIPG took on its first webinars, workshops, park exploration and theme of sustainable urban development.
ing mindsets, inspiring women, grooming few efforts to combat climate change by social media competitions to educate and
young urbanites and promoting urban green learning the best practices within the indus- empower its communities to adopt a more The conference aimed to inspire and
to protect the environment. try via collaborations with like-minded part- sustainable lifestyle. empower young leaders to achieve SDGs by
ners to drive lasting, large-scale impact with- bringing together stakeholders to share and
Raising awareness on climate change in the communities they operate in. For 2022, its Earth Hour theme was Fight exchange ideas to move forward to a more
Climate Change with #TeamIOI, whereby it inclusive and sustainable development with-
In order to create awareness and generate Talks, as well as sharing and networking conducted a competition to encourage its in communities.
conversation on waste minimisation, biodi- sessions with local and international busi- social media followers to take photos of
versity appreciation, as well as climate ness partners, were organised to gain insight themselves fighting climate change, such as All in all, IYDVC drew the participation of
change mitigation and adaptation, IOIPG and to share experiences on the successful planting trees, recycling or reducing electric- undergraduates from nine Malaysian and
rolled out the IOI Connects to Earth cam- incorporation of sustainable practices in ity consumption. overseas universities.
paign. business strategies and day-to-day opera-
tions. Also held in conjunction with Earth Hour Reuse and recycle to minimise waste
The inspiration behind the campaign ema- 2022 was the Appreciating Urban Biodiversity
nated from the group’s belief that waste min- Annually, IOIPG celebrates Earth Hour webinar, which had over 240 participants IOIPG believes that waste minimisation, at
imisation and the loss of biodiversity played from both the public and team IOI from its its source, is key to reduce waste going to
offices in the Klang Valley, Johor, Bahau, landfills. Landfills release greenhouse gases
IOIPG kicked off Penang and Xiamen, China. that significantly contribute to climate
the Kulai tree change.
transplanting Taking it a step further, the group’s
Rainwater Harvesting Project created aware- An initiative that exemplifies this is
activity project ness about the importance of conserving nat- IOIPG’s 2021 launch of the KITACycle
in December ural resources and instilled a green mindset Recycling Centre at IOI Mall Puchong.
within its communities. The project was
2021, with the implemented in its integrated developments In line with the group’s mission to safe-
purpose of via collaborations with its business partners, guard the environment and build sustaina-
such as contractors and vendors. ble communities, KITACycle station set up in
salvaging trees IOI Mall Puchong provides a weigh-and-pay
over 10 years Rainwater harvesting systems were system that enables cashback to be earned
installed in SJK(T) Sungai Ara in Penang; for recyclables.
old, from a site Rumah Shalom, Bandar Puchong Jaya; Surah
that was going Al-Munawarrah in Bandar Putera Klang; In conjunction with Earth Hour 2022, 60
to be cleared, to Rumah Orang Tua Sungai Siput, Segamat, as employees of the group’s Johor division col-
well as Kampung Orang Asli Kuala Masai in laborated with the Mersing District Council
a new site. Johor. to collect 65kg worth of trash along the

In conjunction with Earth Hour 2022, 60 employees of the group’s Johor division collaborated with the Mersing District Council
to collect trash along the beach at Pulau Mawar, Mersing.

STARESG, Friday 24 June 2022 Feature 7

The KITACycle Recycling Centre was launched in 2021 at IOI Mall Puchong in Selangor in line with the group’s mission to safeguard the environment and build sustainable communities.

beach at Pulau Mawar, Mersing. were organised. 1,250kg of recyclables com- under the IOI Kickstart programme, initiated 55 trees over 10 years old under its Kulai
Another initiative worth mentioning is prising paper, plastic, aluminium, cardboard by IOIPG in 2020, is Arus Oil, which converts Tree Transplanting project, among which
and steel, as well as e-waste were collected. collected used cooking oil into biodiesel. included the Millettia Pinnata and the
IOIPG’s 2020 Christmas display at South Samanea Saman, which are listed as “endan-
Beach in Singapore, where the group part- Puteri Mart, a wet market in Puchong, Through joint efforts with Arus Oil, a total gered” and “heritage” respectively on the
nered with EcoBank to collect close to 3,000 Selangor, managed by IOIPG, upcycled fruit 2,113kg of used cooking oil has been collect- Singapore Red List.
pre-loved clothes, accessories, toys and peels to be turned into cleaning enzymes, ed from the IOIPG townships.
books, which were creatively repurposed which are natural and chemical-free clean- In order to bring about change to the daily
and displayed across the development. ing agents. This is in addition to its collaboration with routines and lives of people towards living a
B’dari to create a one-of-a-kind colourful art sustainable lifestyle, it is necessary to first
The items were repurposed in an actual It has since upcycled around 700kg of fruit piece made from 1,800 used plastic mineral make people care about their carbon foot-
spinning ferris wheel, Christmas trees and peels into approximately 2,000 litres of bottles to represent the beauty of the under- print and understand the importance of
display boxes – earning it the title of the cleaning enzymes, which are then given out water world. their actions – and how they can make a dif-
Largest Christmas Decoration of a Building to its patrons. ference.
Using Recycled Materials by the Singapore As one of IOIPG’s key themes focused on
Book of Records. IOIPG also works closely with Yayasan Tan inspiring women, the group collaborated In line with the global biodiversity initia-
Sri Lee Shin Cheng’s social enterprise and with Universiti Kebangsaan Malaysia’s tive, City Nature Challenge (CNC), the group
Creating positive impact on a retail store called Bargain Basement, where Faculty of Pharmacy in a programme to held the IOIPG CNC 2022, which featured
larger scale preloved items are sold, with net proceeds empower B40 women to upcycle used cook- safe and family-friendly activities.
channelled to charity organisations. ing oil into eco-friendly multi-purpose deter-
IOIPG’s efforts go beyond just internal ini- gent. The programme aimed to raise awareness
tiatives and programmes, extending to exter- Bargain Basement has since donated in on making meaningful scientific contribu-
nal undertakings to better the communities excess of RM500,000 from the store’s pro- Preserving biodiversity tions through citizen science, the practice of
it serves. ceeds to beneficiaries such as the Alzhei­ public participation and collaboration in sci-
mer’s Disease Foundation Malaysia, the IOIPG recognises the importance of con- entific research to increase scientific knowl-
The Waste-to-Treasure initiative, which was Autism Cafe Project and Dignity for Children serving the habitat of flora and fauna to pre- edge.
launched in November 2018 under the IOI- Foundation, among many others. serve its ecological functions of regulating
Active Citizens Programme in collaboration temperature, improving quality of air and IOIPG organised a competition where par-
with the British Council, aimed to encourage Meanwhile, with the objective of nurtur- oxygen production, reducing surface run-off ticipants took part in a social media blitz to
people to take more active and participative ing promising start-ups in the fields of and promoting carbon sequestration. contribute towards citizen science, by mak-
roles in creating impact on society. PropTech, AgriTech and green solutions with ing and uploading their observations on the
initial financial support and business know- The group has been maintaining Bandar iNaturalist website or app.
This year, IOIPG ran a recycling campaign how, IOI Kickstart is a three-year accelerator Puteri Puchong Town Park, Oasis Park at
in which waste minimisation webinar ses- and collaboration programme that offers a Bandar Puteri Bangi, Central Park at 16 To date, the participants managed to
sions and collection drives for recyclables springboard for inspiring entrepreneurs. Sierra and a 100-acre Hutan Bandar Kulai in record 6,123 nature observations and identi-
Johor. fied 1,641 species across Malaysia, Singapore
Among the six entrepreneur mentees and Xiamen, China.
Looking ahead, IOIPG will also be reveal-
IOIPG received an A rating in the MSCI ESG Ratings ing its upcoming IOI Resort City Central Park, Reinforcing awareness and educating
assessments in 2022 and moving forward, it will be a 10-acre park anchored by a lake and vari- communities on the need to adopt more sus-
adopting the TCFD recommendations. ous features that enables communities to tainable lifestyles, IOIPG continues to lead
thrive harmoniously with nature. the way towards a greener future through
both internal and external actions, for the
In December 2021, the group transplanted benefit of the generations to come.

Preserving biodiversity is a priority for IOIPG. IOIPG installed rainwater harvesting systems at various homes and organisations
to create awareness about the importance of conserving natural resources.

8 News STARESG, Friday 24 June 2022

Progress is impossible WHO data shows that almost all of
without change and those the global population (99%) breathe
who cannot change their
air that exceeds WHO guideline
minds cannot change limits and contains high levels of
anything.
pollutants. — Freepik.com
- George Bernard Shaw
Planet
peinril

> from page 5

5. Air pollution
Air pollution contributes to global warm-
ing. Gases that retain heat in the atmosphere
are called greenhouse gases and include car-
bon dioxide, ozone and methane.

This leads to climate change, causing ris-
ing sea levels, hotter weather and increased
spreading of infectious diseases.

The effects:

Acid rain
Acid rain is made out of highly acidic

water droplets. When it falls onto the
ground, it damages the soil’s composition
and fertility.

As a result, the quality of water in rivers
deteriorates and biodiversity suffers.
Haze and smog

Did you know the first haze crisis was
reported in Malaysia 61 years ago? Malaysia
has seen four bouts of haze crisis – in 1997,
2006, 2013 and 2015.

Haze happens when the atmosphere is
choked with pollutants, and the burning of
crops for agricultural purposes.

6. Coral bleaching
Coral bleaching occurs when corals –
under stress from warmer waters – expel the
colourful algae that live inside their tissues,
turning them white.

Healthy coral reefs support thousands of Plastic waste
marine life. — Freepik.com/bedneyimages makes up 80%
of all marine
Did you know a spike of 1-2°C in ocean pollution, reports
temperatures over several weeks can lead to Unesco’s Ocean
bleaching? As a result, 14% of the world’s Literacy Portal.
corals died between 2009 and 2018.

A Global Coral Reef Monitoring Network
study shows that corals are under siege from
global warming.

The effects:

Flooding and storms
Coral reefs serve as a buffer and protect

our coasts from flooding and erosion.
They serve as a natural breakwater,

allowing waves to break offshore.
Without coral reefs, coastlines

become prone to flooding from
storms, hurricanes and tsunamis.
Loss of biodiversity

Healthy coral reefs support thou-
sands of fish and mammals.

These marine life seek shelter
and food, reproduce and raise their
offspring in the many nooks and
crannies formed by corals.

Biodiversity will greatly suffer if
our coral reefs disappeared.

Plastic pollution

But climate change is not the only
threat to our environment. Human

STARESG, Friday 24 June 2022 News 9

Haze is a common phenomenon in Kuala Marine pollution
Lumpur, and has occurred almost every year
within the last few decades. — SAMUEL ONG/ According to Unesco’s Ocean Literacy
The Star. portal, plastic waste makes up 80% of all
marine pollution. Marine pollution occurs
Stopping pollution By 2050, when too many chemicals and trash are
is the best solution. plastic will washed or blown into the ocean.
likely
outweigh all Between eight to 10 million metric
fish in the tonnes of plastic are in the ocean yearly.
sea. Furthermore, research states that by 2050,
plastic will likely outweigh all fish in the
sea.

Effects:

Loss of marine life
Wildlife conservation organisation Fauna

& Flora International states that marine
plastics contribute to the loss of over
100,000 marine mammals yearly.

Plastic can affect aquatic species in vari-
ous ways, from entanglement (due to ghost
nets), injury (remember the turtle with a
straw struck in its nostril?), ingestion and
toxic contamination.

A 2018 Scientific Reports study revealed
that ghost nets contribute at least 46% of
the Great Pacific Garbage Patch, an accu-
mulation of marine debris in the North
Pacific Ocean. As of 2022, GPGP covers an
estimated surface area of 1.6 million square
kilometers, triple the size of France.
Harmful to humans

Harmful chemicals like mercury, lead
and pesticides can make their way into the
ocean.

Humans are affected by these toxins by
consuming contaminated marine life.
These toxins can cause dementia, amnesia,
other neurological damage, and death.

A 2020 study entitled “Human Health
and Ocean Pollution” revealed that con-
suming contaminated seafood could
increase the risks for cardiovascular dis-
ease and cancer.

Climate change is making droughts more
frequent and severe. — jcomp/Freepik

activities and massive development have also Plastic waste makes up 80% of all marine Bring your own containers and bags to reduce plastic use.
contributed to the earth’s degradation. But pollution, reports Unesco’s Ocean Literacy
there are steps that we can take to protect the Portal.
environment and reduce the negative effects
on our planets. an excellent eco-friendly alternative. Also,
carry a grocery bag when out shopping and
Plastic pollution is the build-up of always reuse plastic bags as much as possi-
plastic objects and particles in ble.
the Earth’s environment
that affects humans, Plastics by the numbers
wildlife and their habi- 1. Half of all manufactured plastics were
tat.
On March 2, the made in the last 15 years.
United Nations 2. Plastic production has increased expo-
Environment Assembly
voted to formulate an nentially, from 2.3 million tonnes in 1950 to
international legally-bind- 448 million tonnes in 2015 and is expected to
ing instrument by 2024 to double by 2050.
end plastic pollution.
3. Every year, about 8 million tonnes of
Tips to reduce plastic: plastic waste escape into the oceans from
coastal nations. That’s the equivalent of set-
Reduce, reuse, recycle ting five garbage bags full of trash on every
Practise the 3Rs (reduce, foot of coastline worldwide.

reuse and recycle) in your 4. Plastics often contain additives that
daily life. Reducing means make them more robust, flexible and dura-
choosing to use things with ble.
care to minimise the amount
of waste generated. But they can extend the life of plastics if
they become litter, with some estimated to
Reusing involves the repeat- take at least 400 years to break down.
ed use of items or parts of Source: National Geographic
items which still have func-
tional aspects.

Recycling means the use of
garbage itself as a resource.
Instead of binning items, donate
them to charity.
Make better choices
Buy products with lesser packag-
ing. When buying cosmetic products,
choose those without microbeads.
These tiny plastic beads have a damaging
effect on marine life and the environment.
Instead, opt for metal straws as they are

10 Feature STARESG, Friday 24 June 2022

Leading the way
with sustainable developments

By ROYCE TAN As it continues to enhance its ESG offerings, SP Setia strives to play
a key role in Malaysia’s push towards becoming a carbon-neutral nation

AS the environmental, social and govern- Adventure Park in Setia EcoHill 2, Semenyih. Heritage Park in Setia Fontaines, Penang.
ance (ESG) agenda increasingly shapes and
influences investment decisions, companies Sustainability is our D'Network @ Setia Eco Park
across the globe are now placing ESG as collective responsibility. For is touted to be the world's
their top priority. SP Setia, it is embedded into first solar-powered hybrid
our culture and expressed food and beverage hub.
Businesses are integrating ESG practices through our developments.
into their overall strategies, as they seek to — Datuk Choong Kai Wai
keep up with the changing investment envi-
ronment and the growing pool of socially ous year, while the construction and others
conscious investors. segments also successfully lowered these
ratios by 52% and 42%.
While the spotlight is often on the non-ESG
sectors such as coal and oil – which have a The group marked a significant ESG mile-
significant negative impact on the environ- stone when it launched the world’s first
ment – sustainability has become increasing- solar-powered hybrid food and beverage
ly important to property investors as well. hub, the D’Network in Setia Eco Park, Setia
Alam in Sept 2020.
This is as property developers have the
ability to provide green facilities at their D’Network is a realisation of its vision to
housing projects and townships, as well as build a green and sustainable hub that effec-
develop more energy efficient buildings – all tively runs on solar power, which generates
of which can have a tremendous positive electricity to be used for lighting, ventilation,
impact on the environment, as well as pro- air conditioners, and irrigation systems.
mote a greener way of living among their
customers and surrounding communities. Most of its other projects have been
equipped with sanitary wares and fittings
SP Setia is among the local property play- that have 3-star ratings under the Water
ers that are taking the lead in the local ESG Efficient Product Labelling Scheme.
space, as Malaysia moves towards achieving
its goal of becoming a carbon-neutral nation It has also incorporated rainwater harvest-
by 2050. ing systems at some of its projects, which
enable the water to be reused for outdoor
The property giant’s leadership in the ESG purposes, such as watering plants – indirect-
space is particularly evident from its notable ly helping reduce water consumption.
achievements in the environmental and
social categories, as well as its conviction Another accomplishment worth noting is
that ESG initiatives are an investment for the the Setia EcoHill 2’s Adventure Park, which
future. was developed by utilising and navigating
through the existing vegetation and terrain,
“Sustainability is our collective responsi- with more than 90% of the original land-
bility. For SP Setia, it is embedded into our scape preserved.
culture and expressed through our develop-
ments,” said SP Setia group president and Cognisant on the importance of sustaining
chief executive officer Datuk Choong Kai forest systems, the existing forest at the
Wai. Adventure Park was regenerated by infusing
biodiversity elements to create a new
As part of its commitment towards the healthy ecosystem.
national carbon-neutral agenda, SP Setia
recently entered a memorandum of under- In order to swiftly move forward with its
standing (MOU) with utility giant Tenaga ESG agenda, SP Setia also recognises the
Nasional Bhd (TNB). importance of ensuring that its employees
are fully equipped with the knowledge and
The partnership will see SP Setia’s proper- ability to drive its sustainability goals.
ties and developments equipped with solar,
battery and electric vehicle infrastructure “Culture embedment is crucial to ensure
and support, marking a significant step for- effective implementation of our initiatives,”
ward in the sustainability imperative for the group noted in its latest annual report.
both industry giants.
In FY2021, SP Setia conducted 53 sustaina-
“We are thrilled to work with TNB in driv- bility workshops involving 225 participants
ing change to deliver value beyond housing. from the group, to ensure that its team is
We aim to encourage sustainable living and able to adapt and ultimately take the lead in
positively impact our communities,” he said. implementing its sustainability initiatives.

The developer sees the collaboration as
the next step in its ever-evolving concept of
sustainability, translating into an increased
awareness of the green agenda among its
customers and ultimately, an easy transition
into environmentally conscious living.

Walking the talk, with tangible
results

SP Setia aims to prevent negative impacts
on the environment – or at least, manage or
reduce those impacts – by adopting best
practices in environmental standards and
implementing environmentally friendly
strategies and processes.

These include exploring renewable energy
for its property development projects, imple-
menting comprehensive planning and green
concepts at its townships and using sustaina-
ble materials and construction methods.

In recent years, SP Setia has displayed
measurable results from its efforts to pro-
mote sustainable practices in its operations,
as well as at its projects and developments.

In terms of energy consumption, the group
used 31.7mil kW/h of electricity in 2020, a
20% reduction as compared to 2019’s 39.6
million kW/h. The property development
segment recorded a 10% decline in its ener-
gy intensity ratio as compared to the previ-

STARESG, Friday 24 June 2022 Feature 11

Setia City Mall
in Setia Alam,
Shah Alam.

Setia SPICE
Convention Centre,

Penang is said to
be the first hybrid

solar-powered
convention centre

in the world.

SP Setia and
TNB recently

signed an
MOU to seal a
partnership on

delivering
smart energy
and renewable

energy
solutions
to SP Setia’s
future property
developments.

The PPV at
Setia City
Convention
Centre,
Setia Alam,
Shah Alam.

Giving back to the community Essex Gardens directors. al ESG assets are on track to exceed US$53tril
in Setia Eco In terms of fair access to information, SP by 2025, representing more than a third of
As a socially responsible organisation, SP Templer, the US$140.5tril projected total assets under
Setia continues to undertake numerous initia- Rawang. Setia’s investor relations team emphasises on management.
the need to always provide clear, comprehen-
tives to enrich and benefit tres (PPV) for the National Covid-19 sive and equal information to all its stake- In Malaysia, this is also evident from the
its employees, as well as its Immunisation Programme, with more than holders. Employees Provident Fund’s move to launch
1.3mil doses of vaccines administered at these new policies to integrate ESG considerations
customers, the sur- centres. Disclosures of material corporate develop- into its investment management processes –
rounding communi- ments are announced to Bursa Malaysia, as marking its evolution towards being a sus-
ties and the general It also spent a further RM2.72mil on Covid- required by the regulator, while the dissemi- tainable investor.
public. 19 assistance measures including for the pro- nation of presentation materials, press
vision of Covid-19 test kits, and employee releases and holding of press conferences While many companies in the country are
Providing afforda- health and hygiene supplies. are all done all in a timely manner. still struggling to adapt and keep up with the
ble housing for new demands of the growing pool of socially
In terms of ensuring the health and safety While the pandemic – and consequently, conscious investors, SP Setia is already mak-
Malaysians is of its employees, the group upholds its ‘live- the enforcement of various levels of the MCO ing great strides in its ESG journey.
among its many learnworkplay’ philosophy to promote a safe – meant mass gatherings and meetings were
social initiatives, and healthy workplace. not allowed or discouraged, the group accel- With its solid and strategic targets ahead,
as the group erated its use of digital platforms to ensure as well as the tangible results from its ESG
spent RM740mil Among the features of this programme are that the dissemination of information to its initiatives so far, it is clear that SP Setia will
last year on the health and safety monitoring, which is proac- stakeholders was not disrupted. continue to be at the forefront of ESG prac-
development of tively enforced via monthly health, safety and tices in the property space.
such projects, with environment audits conducted at its project Embracing changes to stay ahead of
5,943 completed sites by its group quality management team. the game Moving forward for those at SP Setia, ESG
units as at Dec 31, and sustainability will be embedded across
2021. The group also strives to refine the HSE SP Setia is constantly reinventing and the full value-chain via an end-to-end
It also spent RM678mil to capabilities of its employees and construction enhancing its sustainability initiatives to approach, with a holistic, cohesive ecosystem
provide various infrastructure workers through additional training conduct- maintain its leadership in the space, and of its business of placemaking – from the
at its projects, including for ed by appointed external providers and its aims to play a key role in Malaysia’s journey land sourcing, concept designing, planning,
road maintenance and landscap- internal HSE subject matter experts. towards becoming carbon-neutral by 2050. construction and procurement all the way to
ing to ensure the safety and well- the buildings being occupied throughout its
being of its customers. The group also has solid governance prac- It is evident from the accelerated invest- life cycle.
During the height of the pan- tices in place, which it continues to enhance ments into ESG-focused funds and ESG-
demic, SP Setia provided six ven- via workshops and training programmes. It strong companies globally, that the ESG According to the property developer, this
ues to be used as vaccination cen- conducted 17 corruption risk assessment agenda is here to stay. is because it not only seeks to build dream
workshops on anti-bribery and anti-corrup- homes for people, but also build inclusive
tion last year. Data from Refinitiv Lipper showed that a communities by co-creating the built envi-
record US$649bil was channelled into ESG- ronment with the people and communities.
At the board level, the group notes that focused funds worldwide as of Nov 30, 2021,
since Feb 28, 2018, the board has comprised up from US$542bil and US$285bil in 2020 At the same time, this also works towards
of a majority of independent non-executive and 2019, respectively. It also showed that SP Setia playing its part towards the global
ESG funds now account for about 10% of movement in alleviating the climate crisis.
worldwide fund assets.
“In short, ESG and sustainability will be a
Bloomberg Intelligence forecasts that glob- strategic advantage for us, no longer a nice-
to-have or a tick-the-box exercise,” he said.

12 News STARESG, Friday 24 June 2022

CarBOn footprint is one term that you carbon emissions are released, there were 272.61mil tonnes. are part of the operational ethics by “greener” lifestyle by chipping away bad
have probably heard of a lot, but may are many studies that show the average Compared to 2019, according to a huge conglomerates and well-known habits that contribute to a greater
not always understand. So, what exactly levels of carbon emissions focusing on companies to even small and medium carbon footprint.
does carbon footprint mean? territorial emissions, which means sustainability report published by the enterprises, but what about us the
greenhouse gases produced within a Multidisciplinary digital Publishing individual? it’s not just about the environment
Carbon footprint is a way to measure nation, but this does not account for institute, CO2 emissions for the world either. reducing your carbon footprint
greenhouse gas emissions. Gas traded goods. and Malaysia decreased significantly by not many are aware that the small can help you live a healthier lifestyle, as
emissions are any gas released into the 4.02% and 9.7% in 2020, due to Covid- steps taken by each individual to reduce well as save you money.
atmosphere by human actions that trap in Malaysia, for instance, data from 19 lockdowns. However, this is his carbon footprint can become a big
heat, such as carbon dioxide and Our World in data shows CO2 insufficient to cause long-term impacts leap towards sustainable environment Whether it is a healthier diet, cleaner
methane, therefore contributing greatly emissions per capita in Malaysia are on global CO2 levels and climate and nation building. air, or reduced energy bills, these
to global warming and climate change. equivalent to 8.42 tonnes per person in change. benefits of reducing your carbon
2020, while CO2 emissions in Malaysia awareness among Malaysians is footprint also mean that making small
if you want to know how much efforts in reducing carbon footprints lacking, but it is not too late to adopt a adjustments can lead to big results.

HERE ARE SomE of THE mANy SimplE wAyS To GET you STARTEd, oNE STEp AT A TimE.

uSE ENERGy TwEAk youR diET SAy No To SiNGlE-uSE plASTic cHooSE GREENER REducE, REuSE ANd REcyclE
EfficiENT AppliANcES For example, meat requires a lot of Start by using a reusable water TRANSpoRTATioN opTioNS Whether it is paper, plastic,
From energy-saving light bulbs to land, water and energy to produce, bottle when you are out, or bring if your work place is near, try cycling packaging, food or electronic
appliances with a high energy star thus creating methane. imported your own container when taking or walking to work, which can also devices, they all have a carbon
rating, these are definitely going to food uses more resources than local away food. Bringing your own bag help you improve your health. Opt for footprint. By reducing the amount
make your home eco-friendlier. produce. By supporting locally for grocery shopping is a good public transport where possible, or of waste you generate, reusing
also, make sure to turn off and sourced food and consuming fewer choice as well. go for carpooling. as of the current stuff and recycling waste, it
unplug anything not in use. animal products, it can make a huge norm, work from home if possible. matters a lot to the environment.
difference to reduce your carbon
footprint from current farming
methods and perhaps improve your
health too.

mAkE SmART iNvEST iN RENEwAblE ENERGy HolidAy cloSER To HomE Go foR diGiTAl pRomoTE AwARENESS
fASHioN cHoicES Power your home with solar energy Cuti-cuti Malaysia is the way to go. encourage digital communication educate children and the people
Consider buying second-hand and reduce your household your emissions will be far lower and using video conferencing or voice around you about the importance
clothes, joining swap groups or emissions and save money on your you will contribute to uplifting the call, instead of travelling. of protecting the environment and
purchasing from eco-friendly energy bills. Consider electric livelihood of local communities. you the simple steps they could do to
companies. vehicles, if your budget allows. might even discover something new make a difference.
on the trip!
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Stay tuned for our next issue for more tips and tricks on how you can do your part to protect the earth and the community.