PERFORMANCE REVI EW Sect ion 02 9 SUSTAINAB I L I TY Report 2022 MESSAGE FROM the Cha i rman and Chi ef Execut i ve The Conference of Parties (“COP”) 27 summit held last year in Sharm elSheikh, Egypt, continues from COP 26 in laying the necessary pathways for the world to expedite necessary change towards ensuring a liveable tomorrow. Even as the clock ticks closer to the point of irreversible changes, there remains plenty of hope and optimism as governments, corporations and other stakeholders, globally as well as domestically unite towards a common cause of pursuing economic, environmental and social sustainability. This is both an exciting and daunting period in the history of mankind. Yet, it is also a period that sparks hope, innovation, new possibilities and opportunities for both businesses and society alike. As governments continue to provide the necessary regulatory frameworks and enforcement action to drive change, the onus is on corporations to go beyond compliance and embrace the responsibility to lead and champion sustainability. At Ranhill, sustainability, as we have mentioned before has always been an intrinsic aspect of our business model. The application of circular economy approaches within our business operations, and also reflected in our solutions to clients has been a fundamental part of our approach. Operating in the environment sector, we are fully cognisant of the need to preserve finite natural resources and ensuring sustainable consumption. We continue to address the challenges of increasing consumption demand against a finite supply of river water that continues to come under pressure from climate change and other impacts. At the same time, the world remains energy-hungry, more so post pandemic as it pivots towards hydrocarbons once again to fuel economic recovery. Yet, while fossil-fuel sources such as crude oil gas remain relevant in the overall energy mix, the impetus has shifted towards Renewable Energy (“RE”) based alternatives. In this regard, I am happy to share our RE initiatives, which include the development of a 50 MW Large Scale Solar (“LSS”) farm which will be achieving its Scheduled Commercial Operational Data (“SCOD”) within FY2023. Ranhill is also participating in the Malaysian Government’s Corporate Green Power Programme (“CGPP”) in which solar power producers can construct a maximum 30 MW solar farm and energy generated sold directly to corporate clients via a Virtual Power Purchase Agreement (“VPPA”). In line with the CGPP, Ranhill has submitted a Request For Proposal (“RFP”) to the Energy Commission (“EC”) to construct two 29.9 MWac solar farms to supply clean energy to Ranhill SAJ. If the proposal is successful, the plants are expected to achieve Commercial Operation Date (“COD”) by the end of 2025. Another area worthy of mention is our involvement in carbon capture and storage related projects, namely for the oil and gas sector. Group subsidiary, Ranhill Worley, will be contributing its technical expertise in the design and build in carbon capture and storage facilities for the Malaysia Kasawari project, the world’s largest CCS project. Ranhill Worley will also be lending its expertise for carbon capture and storage for the Brazil P82 Floating Production Storage and Offloading (“FPSO”) facility and the SK410B field in Lang Lebah, off the Sarawak coast. We aim to capitalise increasingly on the opportunities emerging from more sustainable infrastructure development projects. Other notable projects include flood mitigation works in Kota Belud, Sabah. Within our operations, we continue to take stock of our environmental and social impacts. In FY2022, Ranhill inked a Memorandum of Understanding (“MoU”) with the Malaysia Green Technology and Climate Change Corporation (“MGTC”) towards developing a comprehensive Greenhouse Gas (“GHG”) baseline and roadmap for the Group’s operations. This effort is aligned with our Net Zero Carbon 2050 goal. Establishing a clear baseline of carbon emission across all Scopes One, Two and Three will enable the Group to then develop a clear pathway, comprising interim targets and comprehensive strategies to realise the 2050 goal. As in the previous year, we have continued to seek solutions towards addressing energy consumption, carbon emissions, waste, heat produced from operations, as well as looking to address the same impacts from clients. The specific highlights and achievements registered are provided in this report. Certainly, in FY2022, we have made significant strides in terms of sustainability – with improvements achieved across the triple bottom line of Environmental, Social and Governance (“ESG”) performance. We shall continue to press forward with initiatives to decarbonise our operations and to help other corporations do the same. At the same time, we are focused on restoring a downward trend for NRW in Johor and will continue to assist other states in Malaysia in doing the same. I thank you for your interest in Ranhill’s sustainability journey for FY2022. Our achievements serve as the stepping stone towards delivering greater, positive impacts for the country, corporations and society. TAN SRI HAMDAN MOHAMAD Chairman and Chief Executive
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