55 Performance Revi ew Sect ion 02 Annual Report 2022 One area that offers bright prospects is the focus on sustainable building and construction. With greater focus on ESG criteria, there emerges opportunities in niche projects as well as niche sectors. These include sustainable energy infrastructure and developments. Other potentials are district cooling systems, thermal energy storage solutions, solar and hydro energy generation, green building design and building opportunities and various others. In addition, infrastructure and advanced technology application projects to support the aforementioned and other projects are likely to be on an uptrend in FY2023 and onwards. RBSB aim to bring forth its engineering capability adopting software solutions driven by technology such as Building Information Modelling (“BIM”) towards providing more ESG compliant solutions for both public and private sector clients. For FY2023, the strategic priorities are the completion of the LSS4 Bidor PV plant and to achieve SCOD by 30 November 2023. Upon attainment of SCOD, the focus shifts to operational and maintenance (“O&M”) which should commence by December 2023. RBSB has already commenced hiring qualified personnel to ensure sufficient skilled manpower to facilitate smooth plant operations. With regard to the CGPP, RBSB will proceed with its plan to design, build, commission and operate two 29.9 MWh power plants that will supply Ranhill SAJ's clean energy to another corporate user. The project will further strengthen Ranhill’s reputation as a credible solar player while decarbonising the Group’s footprint. Both projects are consistent with Ranhill’s aspiration to be a leader in clean energy infrastructure and solutions. OUTLOOK AND PROSPECTS – RW FY2023 saw crude oil prices stabilise at a sustainable level, hovering above the USD80 mark. The current price range is at levels that would encourage continued upstream activity. As oil and gas companies face intense and increasing demand to decarbonise operations, the emphasis on more “green” solutions are becoming amainstay to ensure environmental sustainability. Therefore, Ranhill Worley is of the view that FY2023 will see a growing trend centred on decarbonisation and carbon capture storage projects. The company is ready to bid for similar projects given its proven capabilities in managing the Kasawari and Brazil P-82 projects. It will continue to automate work processes and adopt a data centric, digital based approach, tapping technology as an enabler to deliver cost-effective, innovative and future focused solutions. Upskilling current staff with new ways of working will be a challenging journey and one of the top priorities of this company. The next challenge is to retain company upskilled staff with competitive benefits and flexible work environments that are attractive to the younger generations. RW can leverage on its unique position as the global offshore oil and gas hub for the Worley Group -- bringing proven world class expertise and experience to the Malaysian market when bidding for contracts. The global repository of competence, experience and skills, coupled with local market knowledge and a sound understanding of domestic requirements will deliver a unique competitive edge when bidding for contracts. RISKS AND MATERIAL CONCERNS RESPONDING TO CLIMATE CHANGE AND OTHER CHALLENGES Climate change remains a material topic to Ranhill’s operations, especially to our water operations in Johor. In essence, climate change presents both risks and opportunities. Management is cognisant of the physical, transitional, legal and reputational risks associated with climate change, and at the same time, the emerging potentials for financial and non-financial value creation. Disrupted weather and rainfall patterns were evident throughout FY2022, which affected the water levels at many rivers and dams across Johor. This affected the total quantity and quality of water available for abstraction. It also exacerbates pollution issues as with less water volume in rivers, the concentration of pollutants is more potent. Besides drought, there is growing frequency of sudden deluges of rain, which causes flash floods and disrupted WTP operations. Inclement weather also affects pipe rehabilitation and replacement works, the pace of construction on existing projects, increases the risks of Occupational Health and Safety (“OHS”) incidents and poses various other complications. We continue to proactively implement measures to ensure sufficient water volume across Johor state and to manage the effects of climate change. These include interim as well as long term measures. Among these measures are developing more WTPs and expanding the capacity of existing WTPs, proposing raw water transfer projects such as the Sg Gembut project, and also by actively addressing NRW challenges and water theft. ENVIRONMENT SECTOR MANAGEMENT DI SCUSS ION & ANALYS I S
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