73 Sustainabi l i ty Sect ion 03 Annual Report 2022 SUSTA INAB I L I TY STATEMENT CLIMATE CHANGE Climate change directly impacts the water supply system in Johor. Adverse weather conditions caused or exacerbated by climate change can lead to droughts, reduced rainfall or even flash floods, all of which can seriously impact the water supply system. Measures to address such conditions comprise sourcing for alternative water sources such as groundwater, cloud seeding to encourage rain, undertaking raw water transfer and Off River Storage (“ORS”) facilities and other measures. In extreme situations, water rationing may be necessary. Climate change can also affect non-water related operations such as infrastructure and construction related development. The full details on the impacts of climate change on Ranhill’s operations are provided in the TCFD Index Disclosure in Ranhill Sustainability Report 2022. Together with energy consumption, climate change comes under the purview of the Board of Directors and specifically, under the oversight of Independent, Non-Executive Director, Mr. Lim Hun Soon @ David Lim who is the designated Board champion for all ESG related matters. FY2022 has seen Ranhill commence reporting based on the TCFD framework. ESTABLISHING CARBON REDUCTION TARGETS In FY2022, Ranhill commenced collaboration with the MGTC towards undertaking preliminary assessments of Ranhill GHG emissions. The Group has inked a commercial agreement which MGTC will be undertaking comprehensive GHG assessment and the development of a complete GHG baseline as well as roadmap for all Ranhill and its subsidiaries’ operations. The Memorandum of Understanding signing between Ranhill and Malaysia Green Technology and Climate Change Corporation (MGTC) to drive Ranhill towards Net Zero Carbon 2050 PRESERVING WATER RESOURCES In FY2022, with the exception of Non-Revenue Water (“NRW”) loss, Ranhill SAJ has continued to comply with all KPIs set by the industry regulator, SPAN for water quality. Similarly, RWT has also achieved compliance with the industry regulator’s KPIs for all relevant water operations. In FY2022, non-domestic water consumption has increased due to increased of non-domestic consumption demand. Domestic consumption had decreased as the population, from being largely confined to their homes during the pandemic, transitioned back to their regular work and lifestyle routines. Ranhill SAJ WATER CONSUMPTION AND SLUDGE FY2020 FY2021 FY2022 Raw Water Abstraction River (m³) 424,640,758 417,035,411 412,930,624 Raw Water Abstraction Dam (m³) 273,730,369 265,956,548 273,960,621 Total Raw Water Abstraction (m³) 698,371,127 682,991,959 686,891,245 Average (m³ / month) 58,197,594 56,915,997 57,240,937 Raw Water (m³) 698,371,127 682,991,959 686,891,245 Treated Water (m³) 668,147,604 653,207,737 671,311,627 In Plant Usage (m³) 30,223,523 29,784,222 22,967,479 Total Sludge (kg) 93,857,414 91,935,416 93,788,980
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