Environmental

Sunway is committed to halving our carbon emissions by 2030 and achieving net zero by 2050. To support this goal, we introduced an internal carbon pricing mechanism, making us one of the first corporations in Malaysia and Southeast Asia to implement such a framework. This mechanism integrates the cost of carbon into business decisions and promotes low-carbon practices across our operations.

The framework includes both accountability measures and positive incentives. Executive bonuses are tied to the Group’s decarbonisation targets to ensure leadership responsibility. At the same time, we offer incentives to encourage the adoption of renewable energy and the implementation of waste diversion initiatives, rewarding business units that contribute meaningfully to our sustainability objectives.

Our commitment extends to our supply chain through Sunway’s Sustainable Procurement Policy, which sets clear expectations for suppliers on environmental and social performance. Vendors that demonstrate strong sustainability practices are prioritised in our selection process.

These efforts are inspired by the vision of our founder and chairman, Tan Sri Sir Dr. Jeffrey Cheah KBE AO, who transformed an abandoned tin mine into Sunway City Kuala Lumpur — Malaysia’s first green integrated township and a model for sustainable urban development.

Leveraging technology and innovation, we aim to develop smart, sustainable cities that are digitalised and transit-oriented, creating a symbiotic relationship among the various amenities within the township.

Connectivity is key at Sunway City Kuala Lumpur. The township’s Sustainable Intelligent Transport Ecosystem (SITE) comprises electric buses running on specially-designed elevated lanes, as well as a 4.3-kilometre-long canopy walkway that allows easy access by foot to major amenities within 15 minutes.

Combining pedestrian-friendly and transit-focused infrastructure with a holistic mass transportation network, Sunway City Kuala Lumpur is an embodiment of urban mobility and sustainability. We aim to replicate the success of Sunway City Kuala Lumpur in our other townships across Malaysia including Sunway City Ipoh in Perak, and Sunway City Iskandar Puteri in Johor.

A sustainable way of life starts here at Sunway.

We are actively substituting our energy needs with renewable energy sources by implementing energy efficiency initiatives such as chiller optimisation, use of energy-efficient LEDs, motion sensors installation, and applying Building Energy Management Systems (BEMS) to regulate energy consumption.

For more energy-intensive operations, we have taken a proactive approach by using fuel with lower emission factor, such as Liquefied Petroleum Gas (LPG). We understand that energy efficiency is not a one-party goal. That is why we continuously engage our stakeholders to promote awareness of energy management.

Consistent water supply is a necessity for our business operations, especially for Sunway-managed properties and industrial sites that are water intensive. We have also put in place robust measures and guidelines to ensure water security and business continuity. These include a water management policy, water standard operating procedures, water-saving initiatives and harnessing alternative water resources. With the development of a water management policy and water standard operating procedures for all business divisions, Sunway was able to conduct a scenario analysis to further develop a more detailed and robust action plan that would ensure heightened water security and achieve water continuity for Sunway properties.

We conserve water through reducing, recycling and reusing water resources. Our buildings in Sunway City Kuala Lumpur also draw water from nearby lakes, which are treated by the township’s water treatment plant to produce potable drinking water. Our water treatment plant at Sunway South Quay Lake, which can supply up to 8.5 million litres water daily, is a critical component of the township’s water security measure. All Sunway’s managed properties at SCKL are currently piped to the water treatment plant to maintain undisrupted water supply. These water security measures have helped our commercial assets maintain continuous and clean water supply, becoming self-sustainable during municipal water cuts.

Climate change and plastic pollution are among the most pressing environmental issues threatening the planet. A solution to these global challenges is to apply the concept of the circular economy, which aims to minimise waste and encourage a sustainable use of resources through smarter product design, longer use and recycling.

Our pollution management goes beyond strict compliance with environmental laws and regulatory requirements. We always take effective measures to prevent excessive waste generation and divert our waste from landfills.

We adopt a six-tier waste management hierarchy which prioritises the prevention of waste, followed by reducing, reusing, recycling, recovering and finally, disposing.

Sustainable construction materials are used when we build green developments, structures and townships.

We use alternative materials that are friendly to the environment, such as recyclable raw materials, which also reduce the carbon footprint of material sourcing and ensure the durability of the final products. These replace mainstream materials that are not sustainable, such as aluminium and concrete, which require large amounts of energy to produce.

Sustainable construction materials we apply across our projects include Autoclaved Aerated Concrete – a lightweight, precast foam concrete building material suitable for producing bricks and panels. This material produces up to 30 percent less industrial waste and reduces the emission of Greenhouse Gases (GHG) as well as energy consumption during the production of bricks, which is better for the environment. In the production of bricks, this material emits 50 percent less GHG and uses 60 percent less energy compared with how they are usually made.

The Green Lease Partnership Programme is an initiative to engage with our business partners to promote the reduction of Scope 3 emissions. While Scope 1 and 2 emissions are generally within the control of an organisation, Scope 3 emissions are usually hardest to measure and tackle because they encompass those produced by customers using the company’s products or those produced by the suppliers.

Through this programme, we empower our work with our tenants and hotel lessees under Sunway REIT to improve energy efficiency, water saving measures, and diversion of waste from landfills. Our aim is to encourage best international practices in sustainability and drive sustainable solutions through change in behaviour.