Sustainability

Energy

Electricity is used for our office operations at the HP Division, powering basic office appliances such as air conditioning units, which are vital for maintaining comfortable working environments, as well as computers, lighting, and security systems that ensure the safety of personnel and assets.

By recognising the advantages of investing in renewable energy production capacity, we have installed a solar power generation system at our Klang and KL offices. Overall, the Group's current solar power generation systems have the capacity to generate 95.8 MWh of clean energy.

The Furniture Division began to report its electricity purchased this year.

Note:
* derived from electricity bills.
** derived from solar panels system power generation reports.
*** excludes electricity bills for approximate 2 periods of actual electricity utilisation for 2 premises during the end of the financial year, that had not been received by the HP Division during the finalisation of this Statement.
^ During the financial year under review, the HP operations streamlined its operational space and reduced its rented floor area, contributing to lesser electricity purchased.
^^ No solar power generation system in the Furniture Division.

GHG Emissions

The HP Division will continue to report on Scope 2 emissions and will begin reporting on Scope 1 and Scope 3 emissions, with a specific focus on Category 6 - Business Travel and Category 7 - Employee Commuting. For the Furniture Division, this year represents the first time emissions data are reported.

Starting from FY2025, the Group will expand the coverage of its emissions intensity by including Scope 1 emissions, in addition to Scope 2 emissions. Emission intensity for FY2023 and FY2024 will not be restated.

Note:
* FY2023 and FY2024 emissions from purchased electricity were restated, using the latest Grid Emission Factor, i.e. 0.774 Gg CO2e/GWh for year 2022, provided by the Energy Commission of Malaysia. Reference: Grid Emission Factor (GEF) in Malaysia, 2017-2022, https://meih.st.gov.my/home
** FY2025 emissions data includes both Scope 1 and Scope 2 emissions.
*** The Furniture Division began to collect this data for the period beginning August 2024 to March 2025.

Our Solar Project

We have initiated and completed the installation of solar panels system at our Klang office, which has the capacity to generate around 61,776 kWh of electricity annually subject to weather conditions, offsetting approximately 41 metric tonnes of CO²e annually. Continuing our efforts, we commenced the installation of a solar panels system at our Kuala Lumpur headquarters which was commissioned in December 2023. This installation is estimated to generate 33,961 kWh of electricity, offsetting 14 metric tonnes of CO²e annually. Overall, the Group's current solar power generation systems have the capacity to generate 95.8 MWh of clean energy.

Climate Change

Following Bursa's introduction of new disclosure requirements to align with the IFRS S1 Sustainability-related Disclosures and IFRS S2 Climate-related Disclosures, the Group will undertake measures to prepare for alignment and compliance with the IFRS S1 and IFRS S2 according to the timeline set by Bursa. The IFRS S2 disclosure requirements also incorporate elements of the TCFD Recommendations.

Recycling and Waste Management

In our operations, no hazardous or scheduled waste is generated. The primary non-hazardous waste produced by the HP Division is office paper waste. Where possible, the shredded materials are recycled.

Office paper waste in the Furniture Division is considered less sensitive compared to the HP Division because our operations do not involve the handling of significant volumes of confidential or personal data. Apart from office paper waste, the Furniture Division also generated paper scraps, carton boxes, and plastic waste in the designated recycling bin. All waste is collected by the waste contractor quarterly.

The implementation of various e-wallet payment channels/ providers, and our MyELK-Desa+ mobile application, has significantly decreased the reliance on paper documentation. Besides, measures such as enabling double-sided printing on all printers and photocopiers, as well as encouraging eco-friendly practices among our employees, have further helped reduce paper consumption.