At IOIPG, we commit to uphold environmental ethics through green efforts such as energy management, reduce emission, water conservation, biodiversity protection, and waste reduction. We believe these efforts are able to drive sustainability for future generations. In FY2023, we are ISO14001 certified for our property development segment.
Strengthening Climate Resilience Together
Guided by one of our mission statements – Trusted… to safeguard our environment, the group initiated a Climate Action Plan in order to set the course for an integrated approach to streamline minimisation of Greenhouse Gas emissions from our business operations, products and services, as well as addressing climate-related risks and opportunities.
Optimising Use of Resources
Resource management is crucial towards environmental and climate change risks as it would impact the business's long-term sustainability. IOIPG is committed to reducing resource use by improving the efficiency of the available resources through various programmes and initiatives aimed at sustainable resource management across the Group.
Energy
The Group aspires to reduce the reliance on fossil fuel-generated electricity by adopting renewable energy sources, notably solar power. We have strategically invested in solar energy generation across selected properties within our portfolio. This investment has not only contributed significantly to overall energy conservation but has also propelled us toward the attainment of our low carbon objectives. The solar panels installed at IOI City Mall and IOI Galleria Kulai generated 15,794 GJ of solar power in FY2023, equivalent to a carbon emissions reduction of 3,422 tCO2/year.
As we collect energy data from Group-wide operations, we constantly monitor our energy consumption and performance of our business units against our set targets. Improved energy efficiency and choice of energy sources help reduce operational costs and minimise GHG emissions.
Our ongoing initiatives include:
- Maintaining optimal energy efficiency for all equipment
- Centralised cooling systems to adapt to demand fluctuations
- Data centre cooling mechanisms maintain low temperature to operate at low Power Usage Efficiency
- Chilled water temperature constantly maintained at optimal level
- Cooling tower regular maintenance and infill replacement
- Minimising mechanical ventilation in above-ground car parks and bathrooms
- Our new developments are installed with smart meters
Emissions
With the endorsement from the Board, we have progressively executed the strategic actions outlined in the adopted TCFD Roadmap. While we have consistently acknowledged the importance of addressing climate-related risks, the formal adoption of the globally recognised TCFD framework marks a significant step in our commitment to effectively manage these risks and capitalize on associated opportunities. This strategic alignment with the TCFD framework underscores our dedication to industry-leading practices and reinforces our approach to climate risk management.
We are committed to lowering the Group’s carbon emissions to mitigate the impact of our operations on climate change, which is a material risk to IOIPG’s business. In view of the Paris Agreement emissions reduction target of countries we operate in, we target to reduce the Group’s Scope 2 emissions across the property investment operations by 15% in 5 years, from FY2021 to FY2025, with FY2020 as the base year.
The long-term Scope 2 carbon emissions intensity reduction target is set at 18% between FY2021 and FY2028, with FY2020 as the base year across the property investment business.
Our ongoing initiatives include:
- Tree planting at our developments
- Adoption of electric vehicles such as motorbikes, buggies, and provide charging stations for electric vehicles
- Installation of solar panels
- Providing shared mobilities, creating pedestrian walkways and cycling paths
Water
Water consumption and management are pertinent sustainability matters in the real estate industry. As the demand for water increases due to population growth and urbanisation, managing water resources responsibly becomes increasingly important.
With the frequent occurrence of water scarcity and reduced water availability, the Group acknowledges the significant risks associated with water security. This concern holds particular weight in the water stressed regions where we operate, such as Malaysia, the People’s Republic of China, and Singapore. It has been projected that future climate may exacerbate the water stress condition.
In FY2023, we harvested 5,551 m³ rainwater for our Groupwide operations, a practice that aligns with our commitment to sustainability and responsible resource management. The harvested rainwater play a crucial role in reducing our dependence on conventional water sources for landscaping activities, thus contributing to the conservation of municipal water.
Our dedication lies in mitigating the reduction of water shortage risks by minimising wastage and actively conserving precious water resources. By adopting efficient technologies and sustainable practices, the Group can contribute to water conservation, reduce environmental impact and ensure a more sustainable future.
Our ongoing initiatives include:
- Water saving practices by our employees
- Modified water taps with low flow rates
- Rainwater harvesting for irrigation and cleaning
- Stay green at our hotels with option of not changing towels and linens daily
Waste and Effluent
Given the nature of the real estate industry, business and operational activities typically generate a substantial amount of waste and effluents that may have environmental impacts if not managed properly.
The Group initiated an internal target of 10% for Properties Investment and Hospitality & Leisure segments to increase its recycling rate for its managed properties by FY2023. In FY2023, we recycled 544 tonnes of waste, achieving a recycling rate of 4%.
Our ongoing initiatives include:
- Le Méridien Putrajaya participates in the Food Bank Malaysia (“FBM”) program under the Ministry of Domestic Trade and Consumer Affairs (“KPDNHEP”) to reduce food waste
- Puteri Mart upcycles fruit peels into cleaning enzymes
- Palm Garden Golf Club composts garden waste
- Launched KITACycle recycling centre at IOI Mall Puchong
- Recycle bins made available at Sales Galleria, malls and office towers
Materials
The Group acknowledges the environmental consequences stemming from the production of construction materials and its role in incurring embodied emissions. Since FY2019, we have diligently monitored the utilisation of key construction materials across our projects. Furthermore, we have initiated the assessment of the embodied carbon footprint associated with construction materials used in both our property development and property investment endeavours. This allows us to evaluate the broader carbon life cycle impact of our projects. In FY2023, the Group conducted a pilot project to assess the embodied carbon of Gems Residences project, applying the Life Cycle Analysis to calculate the associated Scope 3 emissions. The upfront embodied carbon is 553kg CO2e per m2 based on Gross Floor Area (GFA). Moving forward, the Group wish to assess the embodied carbon of its developed products, as we aspire to support the national government's aspiration (Malaysia, Singapore and PRC) to achieve Carbon Neutrality or Net Zero.
We embrace innovative techniques such as system formwork and the incorporation of prefabricated components in the construction of high-rise buildings. Prefabricated components play a pivotal role in advancing material efficiency due to their production in controlled factory settings, which significantly reduces material wastage.
In pursing low-carbon initiatives, we proactively promote the adoption of eco-friendly materials, which encompass those with a high proportion of recycled content, low levels of volatile organic compounds (VOC), and green-certified materials.
Biodiversity
At IOIPG, we aspire to develop townships with sustainable living. We remain committed to conserving urban biodiversity by incorporating blue and green features in our developments and the surrounding areas. Not only does this provide our communities with a direct connection to nature, but it also enables them to enjoy a healthier and more sustainable lifestyle in a thriving environment.
In support of flora and fauna species conservation, a total of 5,218 trees were planted in our township in FY2023. From this total, 924 species assessed were Near Threatened, Vulnerable or Endangered under the IUCN Red List of Threatened Species. The trees are populated as part of landscaping or within our urban parks.
We conduct Environmental Impact Assessments ("EIA") prior to the commencement of all projects which require them. We also undertake ecological studies to assess biodiversity risks for example at Central Park of IOI Resort City and IOI Industrial Park, Banting.
Biodiversity Action Plan (BAP) is also included into Environmental Management Plan for project sites and audits are conducted based on BAP, where applicable. From FY2022 onwards, we target to preserve 5% of trees of every valuable species (with reference to IUCN red list or native species) in our developments prior to project commencement; and to provide a conducive habitat within our development to sustain the biodiversity over time.
