Ranhill Utilities Berhad - AR2022

70 Sustainabi l i ty 03 Sect ion Ranhi ll Ut i l i t i es Berhad SUSTA INAB I L I TY STATEMENT Ranhill’s approach to environmental awareness and preservation is based on adhering to good practices as stipulated by the relevant authorities and industry bodies. These include the Department of Environment (“DOE”), SPAN, Construction Industry Development Board (“CIDB”) and others. In addition, the Group’s operating subsidiaries are certified to various ISO standards which set best practices for operations and environmental operations. At the direction of the Board and Senior Management of Ranhill, all subsidiary companies are encouraged to undertake a thorough assessment of their operations to identify opportunities to reduce environmental footprint by considering overall management approaches to reducing energy, water and resource consumption, carbon emissions as well as waste production and where possible to adopt circular economy concepts for the recycling of waste. Ranhill’s operating companies comply with the respective regulatory standards for noise, effluent discharge, air and other requirements. ENVIRONMENTAL AWARENESS AND PRESERVATION SUPPORTING LOCAL PROCUREMENT Ranhill’s preference is for local procurement as much as possible unless such goods or services cannot be procured locally or cannot be procured locally at a competitive value proposition. Local is defined as the domestic area in which Ranhill and its subsidiary companies are operating. In FY2022, an overwhelming majority of contracted suppliers were local: PERCENTAGE OF LOCAL PROCUREMENT Operating Company FY2020 (%) FY2021 (%) FY2022 (%) Ranhill SAJ 99 100 100 RWS 100 100 100 RWT 98 96 97 RPI & RPII 94 98 94 RBSB 87 93 100 RW 81 71 100 Operating Company Environmental Standard Ranhill SAJ Complies with KPIs set by SPAN and Environmental Quality Regulation of DOE RPI & RPII DOE standard, Environmental Quality Act 2009 Environmental Quality Regulation, DOE RWT Environmental Quality Regulation of DOE Drinking Water Quality Standard, Ministry of Health (“MOH”) RBSB RBSB uses Environmental Aspects & Impacts Register (“EAIR”) as part of monitoring, eliminating and reducing environmental aspect of the organisation. Environmental Quality Act (“EQA”) 1974, Manual Saliran Mesra Alam (“MASMA”) and other standards which is recorded in the organisation legal requirement document RW Not applicable as RW only provides consultancy and project management services Ranhill continues to be an active proponent of the circular economy approach. Guided by the International Water Association’s (“IWA”) guideline, “Water Utility Pathways in a Circular Economy”, Ranhill’s adoption of the circular economy approach is exemplified in the Group’s reclaimed water treatment operations and its Combined Cycle Gas Turbine (“CCGT”) fired power plants.

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