Environmental

Climate and the net-zero roadmap, recycled road materials, clean energy and conservation.

Aerial view of the LSS2 Masjid Tanah solar farm, its panel arrays laid across cleared ground and ringed by palm plantation
Solar Farm 1, Masjid Tanah. 9 MWp operating and exporting to the grid.

Climate Action & Net Zero Commitment

We are committed to achieving net-zero GHG emissions by 2050, with interim targets of a 50% reduction by 2030 and 75% by 2040. Our roadmap rests on four strategies: energy efficiency, reduced fuel consumption, increased renewable energy use, and forest conservation and reforestation. In FY2025, our Scope 1 emissions totalled 3,538.62 tCO2e and Scope 2 emissions 3,617.70 tCO2e, a slight decrease from the year before, as we continue building out our GHG inventory in line with IFRS S2.

Energy Management & Clean Energy

Our Clean Energy division sits at the forefront of the Group's transition to a low-carbon economy, having completed Solar Farm 2 (Pulau Pinang) and Solar Farm 3 (Johor) in FY2025, together expected to generate over 746,000 kWh annually and avoid more than 9,100 tonnes of CO2 over their operating lifespans. Across the Group, we track energy consumption by source, achieving a CO2 emission avoidance of 306 tonnes in FY2025 through our solar energy use.

Water Stewardship

Although our operations are not water-intensive, we remain committed to responsible water use across the Group. In FY2025, total water consumption was 85,614 m3, at a cost of RM226,200. We continue to monitor usage patterns across all business units to identify efficiency opportunities and build on the baseline established in FY2024.

Waste Management & 3R

We manage waste responsibly across our construction, property, and maintenance activities, focusing on efficient material planning, reuse of surplus materials, and recycling of paper, plastics, and metals. In FY2025, 15.9 tonnes of waste were diverted from disposal through reuse and recycling, and we continue strengthening our data monitoring as more business units are brought into our reporting boundary.

Sustainable Materials & Circular Economy

We integrate recycled and recycle-based materials into our road projects, including Crumb Rubber Modified Gap Graded Asphalt (CRMA), 34,528 tonnes used in FY2025, alongside plastic-modified binders and rice husk ash-based cementitious binders. These divert end-of-life tyres, plastic waste, and agricultural by-products from landfill while improving pavement durability. Alongside this, our Black Soldier Fly farming collaboration with FELDA converts organic waste into alternative protein feed and organic fertilisers. The economic and employment impact of this initiative is covered under our economic footprint.

Certifications & Environmental Compliance

Our operating companies hold current certifications across Quality (ISO 9001:2015), Anti-Bribery Management (ISO 37001:2016), Environmental Management (ISO 14001:2015), and Occupational Health & Safety (ISO 45001:2018) systems, alongside CIDB gradings and Board of Engineers Malaysia (BEM) registrations held by our Engineering & Consultancy Services companies.

CIDB gradings and BEM registrations are listed on printed page 31 of the same report.

Read page 43, Management systems and policies Opens the FY2025 Sustainability Report PDF in a new tab