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. As of FY2025, the solar panels installed at IOIPG's owned and managed properties including IOI City Mall, IOI Mall Kulai, IOI Mall Puchong, Palm Garden Golf Club, IOI Mall Xiamen, Puteri Mart, Amigo Clubhouse @ 16 Sierra, IOI Galleria @ 16 Sierra, Sierra Fresco @ 16 Sierra, IOI Galleria @ Bandar Puteri Puchong, and IOI Galleria @ Bandar Putra Kulai generated approximately 9,902 MWh of clean energy, avoiding approximately 7,582 tCO2e of carbon emissions.
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 FY2025, we harvested 7,110 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:
- Rainwater harvesting systems for landscape irrigation and other non-potable uses.
- Installation of water-efficient taps, dual-flush toilets, and low-flow showerheads.
- Adoption of eco-friendly toilets with reduced flush volumes.
- Uses of sprinkler-type faucets, drip irrigation, and smart irrigation systems.
- Water-saving measures in sanitary ware and plumbing infrastructure.
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.
In FY2025, we successfully recycled 604.76 tonnes of waste within our Properties Investment and Hospitality & Leisure divisions, accounting for 3.82% of the total waste generated.
Our ongoing initiatives include:
- Putrajaya Marriott Hotel, Le Méridien Putrajaya and Palm Garden Hotel 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 eco-friendly cleaning enzymes.
- Composts garden waste at 16 Sierra.
- Recycle bins made available at Sales Galleries, Malls and Office Towers.
- Kloth Cares - Fabric recycling bin at IOI Galleria @ 16 Sierra, Sierra Fresco.
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.
In FY2025, we continued to expand the use of system formwork and incorporated prefabricated components in our high-rise developments, reflecting the Group’s focus on adopting construction techniques that lower carbon emissions and support responsible resource use. Prefabricated components also enhance material efficiency, as their production in controlled factory settings significantly reduces material wastage. These initiatives underscore our ongoing efforts to advance sustainable building practices across our projects.
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 are committed to developing sustainable townships that conserve urban biodiversity by integrating blue and green features into our developments and surrounding areas. This approach fosters a direct connection to nature and promotes healthier, more sustainable lifestyles for our communities.
In FY2025, we successfully planted 2,148 trees planted across our township, with 1,226 Native Species to the region. In addition to that, a total of 262 trees were carefully transplanted to conserve their ecological value, reflecting our on-going commitment to protecting and promoting local wildlife habitats.
Notably, a total of 880 trees representing 12 species planted in our development are recognised on the IUCN Red List of Threatened Species, categorised as Near Threatened, Vulnerable, Endangered and Critically Endangered. These species were intentionally selected and strategically incorporated into our landscaping projects and urban parks, creating green corridors that connect urban spaces with natural ecosystems.
Additionally, we conduct Environmental Impact Assessments (EIA) and ecological studies to evaluate biodiversity risks before starting projects that require them, as seen at IOI Industrial Park, Banting.
