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The Star, Friday 27 May 2022
The Star, Friday 27 May 2022
Shifting priorities
for property
What is certain is that sustainability and ESG practices will become part and parcel of the built environment.
Driving
value through
governance
property developers are incorporating ESG into their projects,
as investors increasingly place importance on the criteria
By EUGENE MAHALINGAM ErgoHomes is EcoWorld’s new concept that redefines terrace living through
eugenicz@thestar.com.my integrating efficient space planning and communal spaces.
WITH environmental, social and govern-
ance (ESG) practices becoming a vital topic
for many investors today, it’s not surprising
to see many real estate firms acknowledging
its importance and relevance.
UEM Sunrise CEO Sufian Abdullah says
corporate governance is crucial to investors
because it demonstrates a company’s direc-
tion and business integrity.
“Good corporate governance helps organi-
sations create trust with investors and socie-
ty, particularly foreign investors that place a
greater emphasis on ESG, as seen by various
challenges faced by Malaysian companies
for failing to comply with ESG requirements,
particularly on labour-related concerns.”
Sufian adds that ESG standards have
become a crucial concern for enterprises,, as
well as an important investment require-
ment for real estate capital sources.
“The increased intensity and frequency y of
severe weather-related occurrences are
prompting businesses to analyse property y
man-
sensitivity and resiliency to proactively m
age risk and minimise the effects of clima ate
change.
“Considerations are also given to choice e
materials, design efficiency and perfor-
mance of products to ensure that our prod-
ucts are responding appropriately to the ccli- Certainly there has been more attention given to it (ESG) this year
mate that they are built in,” says Sufian.
Eco World Development Group Bhd as compared to the past. At EcoWorld, we believe in taking a holistic
(EcoWorld) president and chief executive
officer Datuk Chang Khim Wah concurs th hat
approach towards ESG.
ESG or sustainability is a very hot topic cu
ur- — Datuk Chang Khim Wah
rently.
“Certainly there has been more attentio on President and CEO, Eco World Development Group Bhd
given to it this year as compared to the paast.
“At EcoWorld, we believe in taking a ho olis-
tic approach towards ESG. It has to be commmunities to embrace energy efficiency governance among corporations like Sime
embedded into the culture of the organisa a- and water conservation, along with Darby Property with crucial decisions relat-
tion and in the mindset of every individua al minimising waste and pollution. ed to business strategies, risk mitigation,
from top to bottom, before its positive effeects “Naturally, the global shift towards stakeholder management and employee
can be felt and benefits realised.” environmentally-friendly practices well-being.
have begun to influence responsible “Companies have been tasked to step up
investments and purchase decisions, their governance systems and commitments,
Increasing governance focus driving a growing demand for building as evidenced by the increase in reputable
With effective governance in place, Suffian and designing sustainable and indices to measure and rate organisations’
says a company’s management can imple- eco-fr
friendly homes and buildings.” corporate governance performance in recent
ment and assess its ESG policies, goals and d years.”
reporting efforts. Recognising that economies around the
“As a result of these complicating factorrs,
Long
g term goals world are still adjusting and recovering from
real estate companies now have an IOIIPG notes that green buildings, the impact of the pandemic, as well as the
increased responsibility to do climate-riskk equip pped with energy efficient systems and need to adopt responsible, sustainable and
due diligence, examine their corporate soccial mana aged based on sustainable practices, climate-conscious ESG practices, Sufian says
responsibility activities and establish, exe-- will enable
e building owners and building UEM Sunrise will continue to refine and
cute and regulate their ESG policies,” he sa ays. mana agement teams to mitigate and adapt to strengthen its corporate governance frame-
IOI Properties Group Bhd (IOIPG) believ ves clima ate change, as well as improve quality of work.
that good corporate governance ensures ccor- life and
a reduce operational costs. “This will be based on key statutory provi-
porate success and economic growth. “Foor instance, in its commitment to utilise sions, best practices, policies and guidance to
“Strong corporate governance maintain ns renew wable energy such as solar power to ensure that it remains relevant.”
investor confidence (be it foreign or local)). reduce energy consumption from the grid by
As a result of which, a company can raise e 15% to 20% at its malls and IOI Rio offices,
capital efficiently and effectively. IOIPG G has installed rooftop photovoltaic pan-
Evolution in definition
“In turn, capital cost will be lower and els with
w a combined capacity of 4.2 mega- SP Setia Bhd, meanwhile, says that corpo-
there will be a positive impact on the sharre watt hour of renewable energy.” rate governance encompasses a wide range
price. Therefore, good corporate governan nce Sim
me Darby Property Bhd group managing of issues.
plays an important role in attracting foreiign direcctor Datuk Azmir Merican says ESG “It considers both social and institutional
investors, especially institutional sharehoold- princciples have always been important to factors. The mechanism through which busi-
ers,” says the company. many y organisations. nesses are directed and governed is known
IOIPG says sustainability awareness and “In
“ recent years, it has gained a greater as corporate governance.
good ESG practices have over the years mportance among investors, policymak-
im “It has an impact on how the company’s
grown tremendously as key areas of interrest errs and other key stakeholders with large goals are created and achieved, how risk is
amongst companies and public sentimentt ompanies learning and responding to
co monitored and assessed, and how perfor-
around the world. the ever-changing ESG landscape.” mance is maximised,” the company says.
“Conscientious choices are being zmir says the pandemic has undoubted-
Az
made every day by businesses and ly elevated
e the need for stronger corporate > TURN TO NExT pAGE
4 News STARESG, Friday 27 May 2022
Focus on impact
> fRom pREviouS pAGE He adds that the company’s sustainability
committee is supported by three separate
EcoWorld’s Chang says good governance is councils, namely economic and governance;
a must for listed companies. green and operations; and social.
“Coupled with strong and consistent per- “The committee is led by heads of depart-
formance, good results and execution, it will ments, senior and middle management per-
certainly help to attract more investors sonnel of the relevant business units and
including foreign investors. support functions.
“At a broader level, a clearly demonstrated “This has enabled the efficient and effec-
commitment to ESG standards and sustaina- tive execution and implementation of ESG-
ble values, which can be seen on the ground related plans and initiatives, as well as swift
in the products that we deliver, will certainly identification and resolution of any issues
help to build and grow property values and that may arise,” Chang says.
promote real estate investment.”
To provide shareholders with a level of
responsibility, Sufian says organisations
Check and balance
should clarify and make public the roles and SP Setia says social responsibility and
obligations of the board and management. accountability works as a platform for com-
“Transparency guarantees that stakehold- panies and consumers alike to make a posi-
ers have faith in a company’s decision-mak- tive impact on local and global communities.
ing and management procedures. “Businesses that implement a social
“At UEM Sunrise, we are committed to responsibility initiative that’s in line with
achieving high standards of corporate gov- their values can increase customer retention
ernance, which are critical to business integ- and loyalty.
rity and to maintaining investors and stake- The company adds that corporate govern-
holders’ trust in the company.” ance also emphasises shareholder interests.
“Shareholders can reach out to people of
the community who may not have a finan-
Adapting to the times cial interest in the firm but can benefit from
Azmir says Sime Darby Property strives to its goods or services.
maintain good governance, in which practic- “Reaching out to community members
es are reviewed periodically to align with promotes open channels of communication
changing or new industry standards. and corporate transparency. It means that all
“Since 2018, Sime Darby Property has dis- members of the community, including those
played accountability and transparency with who are directly or indirectly impacted by
its annual reports that include information the firm, as well as members of the press,
on our financial and non-financial perfor- have a thorough understanding of the com-
mances, with a clear articulation of various pany’s objectives, techniques, and overall
risks and opportunities, as well as our miti- performance.”
gation strategies and approach to value crea- Additionally, SP Setia says transparency
tion. indicates that anyone can choose to review
“Our annual reports are prepared in com- and verify the company’s actions, whether Sime Darby Property wants to be a ‘Force for
pliance with several regulations, namely the inside or outside the company. Good’ and continuously delivers on its
Bursa Malaysia Main Market listing require- “This builds trust and is likely to attract sustainability agenda, as per its 2030
ments, Bursa Malaysia’s Sustainability more people to use the service.” Sustainability Goals that align with the UN
Guidelines, Malaysian Code on Corporate SP Setia also points out that the more Sustainable Development Goals.
Governance, GRI Standards, Task Force on information companies provide about how
Climate Related Financial Disclosures, they make money and utilise their resources, Gamuda Land CEO Ngan Chee Meng,
Malaysian Financial Reporting Standards, the more confidence investors can be in meanwhile, says that buyers, especially
and Malaysia’s Companies Act 2016.” their fundamentals. socially-conscious ones, are becoming more
Chang says EcoWorld has a three-tier sus- “Financial reports that provide a line-of- discerning in the choices they make.
tainability governance structure that has sight perspective into the company’s growth “Our approach to creating value for our
helped the company effectively set, imple- drivers are even better. Transparency facili- buyers is centred on how we reshape better
ment, execute and monitor progress of its tates analysis and consequently reduces risk environments and foster close-knit commu-
ESG strategies and goals group-wide. in stock investing. nities, while introducing novel concepts and
“At the apex of the structure is EcoWorld’s “As a result, the investor is less likely to be design ideas that can stand the test of time.
board of directors, who are the ultimate caught off guard.” “We do so through our Gamuda Green
authority over the group’s sustainability SP Setia notes that over the last few dec- Plan 2025 (GGP), which guides us to con-
strategy and governance, guided by our ades, private sector firms have become serve, design, implement, enhance and man-
vision, mission and core values. increasingly important engines of global eco- age a sustainable ecosystem even from the
“EcoWorld’s sustainability committee is nomic expansion and job creation. master planning stages.”
chaired by its president and CEO and com- “As the development of a competitive cor- According to Ngan, the GGP serves as a
prises key senior management personnel porate sector becomes increasingly impor- means towards continuously developing a
covering all disciplines and areas of opera- tant for economic progress, all governments more sustainable approach to infrastructure
tions. are concerned about establishing or improv- and property development.
“This ensures that sustainability initiatives ing corporate governance. “The GGP sets out bold targets with
are prioritised and that the needs and aspi- “This is especially true for countries in emphasis on design and planning, circular Sime Darby Property strives to maintain good
rations of every stakeholder group are taken transition, which must build their private construction, community building, digitalisa-
governance, in which practices are reviewed
into consideration in the decision-making corporate sector from the ground up amid a tion, as well as environmental and biodiver-
process,” says Chang. challenging economic shift.” sity stewardship.
periodically to align with changing or new
“Gamuda Land contributes towards these industry standards, says Azmir, adding that the
by focusing on mindful planning and execu- company reviews its practices periodically to
tion throughout our townships. Our efforts align with changing industry standards.
include prioritising sustainable modes of
transport and energy-efficient standards in “This would improve reporting as regula-
its master planning to reduce carbon emis- tors increase disclosure expectations.”
sions.” Deloitte says that companies should create
a road map that establishes and documents
ESG as part of the broader business strategy.
Making real impact “Effective governance and long-term value
Meanwhile, Deloitte in its paper Real creation requires a strong focus on priorities
Estate Predictions 2022: Building A More and clear, actionable and measurable goals.
Sustainable And Future-Proof Business says “Share this road map with stakeholders
real estate leaders can make a real impact as and key decision-makers to help assess risk
the world transitions into a lower-carbon and move initiatives forward.”
economy. Deloitte says firms should intentionally
“First, by collecting and assessing data on incorporate ESG into the business from the
the environmental impacts of building oper- start of a project to how it is managed daily,
ations, then by investigating and implement- post-construction.
ing resource efficiencies; and finally by part- “This involves everything from raw mate-
nering with developers who use sustainable rials to the use of data analytics to help exist-
practices and materials,” it says. ing tenants reduce their carbon footprint.”
To improve their ESG governance and Additionally, Deloitte says companies need
IOIPG notes that green buildings, equipped with energy efficient systems and managed based impact, Deloitte says corporate real estate to communicate their ESG vision and plans
on sustainable practices, will enable building owners and building management teams to first should design and implement processes to investors and employees alike.
mitigate and adapt to climate change, as well as improve quality of life and reduce operational to record progress and hold leaders account- “Sustainable investing is a growing area of
costs. able for achieving target metrics. capital formation. Companies can take
STARESG, Friday 27 May 2022 News 5
advantage of this new wave if they are trans- Transforming the industry As they are responsible for significant
parent about how they incorporate ESG into emissions, PwC says buildings have a strong
the mission of their company.” Due to high levels of energy consumption impact on the world’s climate.
and a strong dependence on fossil fuels such “Different investments perform very dif-
as oil and gas, PwC says real estate repre- ferently. One key challenge is that the data
Proactive stance to ESG sents a key element in implementing a more on emissions by buildings is often not suffi-
Companies also need to conduct robust cli- Our approach to sustainable energy supply. cient or available.
mate risk assessments to mitigate overall “There is significant pressure to reduce “That’s why real estate companies usually
risk and inform strategies, says Deloitte.
creating value for our carbon emissions from buildings by over have to make assumptions to appropriately
“As ESG has become a key factor to meet buyers is centred on 80%, compared to 1990 levels. quantify emissions so that they are able to
growing investor, tenant and employee “Actively managing the energy transition correctly adapt the unique features of the
expectations and are driving new business how we reshape better away from fossil fuels to renewable buildings.”
opportunities, it is time to act. energy sources significantly reduces Additionally, PwC says retail and institu-
“Firms that take a proactive role in the environments and foster the climate-related risks for invest- tional investors are placing greater store in
field of ESG and value the planet and people close-knit communities, ments.” investments satisfying certain non-financial
as much as profits, will definitely create a PwC notes that a relevant portion standards.
competitive edge.” while introducing novel of carbon dioxide emissions emit- “Real estate investments, which for
Meanwhile, PwC in its paper Sustainability ted by buildings relates to instance are suitable for green bonds, can
in the Real Estate Industry says ESG will leave concepts and design the construction materi- combine improved terms and conditions
a lasting mark on the real estate sector. ideas that can stand the als used. with a positive impact. Strategic screening
“Sustainable construction and buildings “Concrete and steel are and identification of suitable assets are cru-
are not new issues contemplated by the real test of time. highly energy-intensive, robust cial in order to enable sustainable financial
estate sector
ctor. building materials that can out- products to be offered.”
“Whatt is new is the momentum that has — Ngan Chee Meng, last a building’s normal useful Deloitte also says that the ESG criteria
picked up p around the topic of sus-
tainabilitty in the past two
CEO, Gamuda Land life.
“A building’s carbon diox-
needs to be taken into consideration in the
acquisition process.
years.” ide emissions can be signifi- “Those who address these issues as part of
One thhing that has become cantly reduced if building their ESG due diligence are able on the one
clear durring the Covid-19 materials no longer required hand to identify interesting investments;
pandemiic, says PwC, is that are recycled, thus taking a fur- while on the other, collect relevant data
companiies that have a high ther step towards a circular economy.” when a property is acquired.”
level of sstrategic resilience
have an a advantage over com-
panies thhat have not given Gamuda Gardens’ picturesque central park is a prime example of what ‘listening to the land’ can achieve.
any thou ught to such crisis sce-
narios be efore.
“This iissue will remain at the
forefrontt for the sector,
because tthe challeng-
es arising g from a
changing g climate
can lead to new cri-
ses for th
he real
estate ind dustry.
“Comp panies
that conssider
the poten ntial
impacts a and
the fittingg
solutionss to
them tod day
will be att a clear
advantag ge tomor-
row.”
6 THE STAR, Friday 27 May 2022 7
8 News STARESG, Friday 27 May 2022
1
The International School
Kuala Lumpur (ISKL) by Twinkle Villa, Kampung
HOK/Veritas Design Group Janda Baik, Bentong,
PAM Awards 2019: Gold Award, Pahang by CY Chan
Education category Green Architect
Building Index (GBI) PAM Awards 2017: Building
platinum-rated of the Year and Gold Award,
Single Residential category
The 10.5ha campus is the first
international school in the country to In order to preserve the original 2
receive a platinum rating. The project surroundings as much as possible,
adhered to green sustainable only two trees were cut to make
construction processes as well as the way for the building’s construc-
the United Nations Sustainable tion. The result is a villa that
Development Goals (SDG). blends in with the surrounding
Construction waste materials were idyllic forest.
segregated into landfill and Fair-faced concrete was cast on
recyclable categories. site and used for main building
During the design and components while clay brick
construction, the use of walls were used to divide internal
environmentally-friendly products spaces. Both were utilised without
that were locally sourced and plastering and paint, which is one
produced was practised to reduce of the ways to minimise environ-
carbon dioxide (CO2) emissions from mental damage. This method also
transportation involved. means minimum maintenance is
Materials with recyclable content required in the long run.
were also used, such as green cement Several passive design strate-
with fly-ash content and recycled gies were also implemented, for
content steel bars, to reduce CO2 instance, by having an open-plan
emission from raw material concept from the entrance to the
harvesting and production. living area to take advantage of
Energy-efficient air-conditioning the lower temperatures of Janda
systems as well as active and passive Baik while maximising cross ven-
initiatives are in place to reduce the tilation.
school’s energy consumption. The The fair-faced concrete wall
building is also designed to reduce also acts as a thermal mass to
heat gain by avoiding direct east and absorb, store and later release the
west sun-facing directions and heat. Double-shading is also in
incorporating glazed windows. place, via the concrete roof and
The school is also landscaped in also natural tree shade, which
ways that promote the native reduces sunlight into the internal
biodiversity of the surrounding areas. spaces.
STARESG, Friday 27 May 2022 News 9
5
Kondominium Kapas, Kuala Lumpur
by Masyerin M.N. Architect/Domaine
Architects
PAM Awards 2021: Gold Award,
Multiple Residential (high rise) category
The unique cladding components of the
facade give the building its distinctive look.
Adopting a porous exterior and extended
overhang using a combination of aluminium
cladding and ventilated concrete blocks, the
design allows a free flow of natural ventila-
tion and makes the building cooler.
Best of green
architecture
> fRom pREviouS pAGE
6
Conservation of Fort Alice,
Sri Aman, Sarawak by
Arkitek JFN
PAM Awards 2017: Gold
Award, Conservation category
The jury commented that the
attention to detail reflected in the
restoration of this old fort was
truly commendable, as well as the
effort made to engage the local
community in helping to preserve
history for future generations.
8
Villa Santubong, Belum
Rainforest, Pulau
Banding, Perak by Yelill
Architect
PAM Awards 2016: Silver
Award, Single Residential
category
With a design that is sensitive
to its environment, Villa
Santubong follows the natural
contours of the land.
Featuring three pavilions, the
split-level residence is
surrounded by tall trees and
thick vegetation. It has an
airy set-up, featuring louvred
window panes and full-length
glass walls, to encourage
natural sunlight as well as
natural ventilation.
9
338 U Thant, Kuala Lumpur by Ken Wong Architect
PAM Awards 2016: Silver Award, Multiple Residential (low-rise)
category
The low-density project is arranged in a pattern that allows each unit –
which comes with its own garden area – to overlook a central common
green belt. A layer of aluminium cladding wraps around the masonry to
keep the house cool and ensure privacy. Public areas can also be opened
up to promote cross ventilation.
10
12 News STARESG, Friday 27 May 2022
10 ways to make
your home
more
eco-friendly
WE know that climate change
is happening. We also know
month’s average rainfall all in
just one day, which led to mas-
global leaders to drive forward
the best collective action, it’s
ate going green with incon-
venient and expensive life-
that this crisis is caused by sive floods. up to every one of us to do our style changes, there are actu-
human activities resulting in Global temperatures are ris- part. and there actually is ally simple and cheap adjust-
increased carbon emissions. ing faster than expected, as something that you can do ments that you can make
But are we changing our indicated in the United Nations from the comfort of your own around the house to signifi-
behaviour to stop climate intergovernmental Panel on home. cantly shrink your carbon foot-
change? Climate Change report, where- afterall, we have only one print as well as save you a
Natural systems around the by greenhouse gas emissions liveable planet that we call whole chunk of money in the
globe are affected more than generated by human activities home. it’s up to us to act long run.
ever – extreme weather, sea have increased since 2010 before losing Earth for good. a wallet-friendly, sustainable
level rise, floods and droughts. across all major sectors glob- The idea of making your lifestyle is attainable. you just
Extreme weather events ally. home eco-friendly can often have to find the best compro-
have become increasingly reg- according to the report, feel overwhelming, but spend- mise between sustainability
ular across the globe. urgent climate action needs to ing your entire savings on and affordability that you are
in Malaysia, one such rare be taken to limit global warm- organic foods and hybrid comfortable with.
phenomenon was in last ing to 1.5°C above pre-industri- vehicles is not the only way to Start small and you’ll be sur-
december, whenb some parts al temperatures. make your life eco-friendlier. prised by how easy it is to
of the country received one While we sit and wait for While many people associ- make a change.
Stay tuned for our next issue for more tips and tricks on how you can do your part to protect the earth and
d the community.