IOI Properties committed to decarbonisation
IOI Properties Group Bhd (IOIPG) (KL:IOIPG) won gold in the property sector for the second year running at The Edge Malaysia ESG Awards 2024.
Lee Yeow Seng, group CEO of IOIPG, says the company’s proudest ESG achievement in the past year is walking the talk on decarbonisation. It continued to invest in solar photovoltaic (PV) systems in managed assets, such as retail malls, office towers, sales galleries and golf clubs, which will be commissioned this year.
“We have expanded the solar PV capacity at IOI City Mall, the largest shopping mall in Malaysia, from 3.56MWp (megawatt peak) to 7.9MWp, making it the largest solar capacity at a retail mall. This sustainability initiative has increased the group’s avoided emissions from 3,422 tCO2 (total carbon dioxide) a year in FY2023, to 4,221 tCO2 a year in FY2024,” says Lee.
Obtaining quality data from the value chain that forms Scope 3 emissions is challenging. Therefore, IOIPG has been educating and working closely with its value chain, including through ESG awareness sessions.
It has also completed two embodied carbon assessments for Gems Residence, a high-rise building, and Marvela, which consists of 2-storey houses, to understand the carbon footprint of its products.
“This enables us to look into alternative lower-embodied carbon materials, of which we have started engaging our suppliers to source for the relevant materials. We remain committed to engaging with the value chain of the real estate sector to minimise the Scope 3 emissions,” says Lee.
He adds that the company is committed to environmental stewardship and delivering social impact, which is driven by a sense of purpose to create long-term value.
This strategic integration of economic, environmental, social and governance (EESG) factors into business strategies is integral to the company’s mission and business goals, Lee adds.
“In order to encourage sustainability ownership among our employees and drive ESG performance, the group’s annual performance appraisals for remuneration and bonus considerations take ESG performance into account.”
To have further adoption of ESG in Malaysia, deeper understanding of the complexity of integrating the pillars of EESG factors into business strategies and decision-making is necessary, Lee believes. This requires relevant expertise, the availability of low-carbon materials in the market and cost efficiency in business operations.
“With the launch of the National Sustainability Reporting Framework, National Climate Change Policy 2.0 and National Energy Transition Roadmap, we support the government’s commitment to net zero and nationally determined contributions,” says Lee.
“We look forward to new directions from the government on the implementation of decarbonisation initiatives that would help drive the net zero transition across the value chain of the real estate sector.”