YTL CORPORATION BERHAD 92647-H

the journey continues…

www.ytlcommunity.com

YTL CORPORATION BERHAD 92647-H

11th Floor Yeoh Tiong Lay Plaza 55 Jalan Bukit Bintang 55100 Kuala Lumpur Malaysia Tel • 603 2117 0088 603 2142 6633 Fax • 603 2141 2703

This report is printed on environmentally friendly paper. sustainability report 2007

Contents Our Websites BE PART OFTHE SOLUTION ENVIRONMENTAL RESPONSIBILITY CORPORATE SOCIALRESPONSIBILITY Letter fromtheManagingDirector Climate Change Nature Conservation Energy Saving&SustainablePlanning The YTLGroup’s EnvironmentalVision Memberships For OurPeople For theNextGeneration Commitment toArts&Culture Responsibility totheCommunity Awards &Accolades Socially ResponsibleBusiness:TheRootsofYTL’s Growth Responsibility toShareholders Responsibility toEmployees Corporate &PersonalConduct uuePoet 35 34 33 31 28 31 30 28 Future Projects Express RailLink Cement &Construction Water &SewerageServices Hotel Development&Management Power Generation&Transmission Climate ChangeWeek, 6–9March 2007 Background oe eeain25 26 25 27 YTL’s CommitmenttoWWF-MalaysiaandRareConservation The NatureConservancy Hotel Development&Management Power Generation xrs alLn 24 23 20 22 23 Express RailLink The BirdIslandGreenHomesCompetition Property Development Power Generation&Transmission Water &SewerageServices u abn rwPoisBsns ofrne30 29 Carbon,GrowProfitsBusinessConference Cut – Global BookLaunchofCutCarbon,GrowProfits – 37 36 28 25 20 20 18 16 15 14 10 9 9 8 5 5 5 5 2 1 STARHILL REAL ESTATE INVESTMENT TRUST Letter from the Managing Director

Dear Stakeholder,

Corporate social responsibility and sustainable development are key activities that are very close to my heart, thus it has been a core issue at YTL for many years now. It is not a “cause” that we simply adopted, but instead a commitment that hinges on our responsibility as one of the leading infrastructure conglomerates in Asia.

As a responsible corporate citizen, we strongly believe that social inclusion and environmental protection is a moral issue, not a political one, a sentiment profoundly stated by former US vice- president Al Gore. Going further, we feel that the environment is an ethical responsibility, hence our long term commitment and passionate involvement in its conservation through the years.

We are pleased there are many major initiatives that YTL has been undertaking across the Group to cut carbon emissions, conserve energy, and protect natural resources. Maintaining good work ethics and culture within our organisation is equally important. TAN SRI DATO’ (DR) FRANCIS YEOH, CBE Managing Director, YTL Corporation Berhad Apart from our commitment to running socially responsible and environmentally sound operations across the YTL Group, there is another area that I feel is crucial to the promotion of environmental protection, that is, advocacy.

As business leaders, there are ethical obligations we have to face to be part of the solution. We understand we have a great opportunity to use our positions, influence, and connections to affect changes at a higher level, including policy decisions and enabling important conservation efforts within and beyond our borders.

I have always felt that we have a personal responsibility to get involved where possible, especially since we have received a bounty of God’s blessings over the years, and observing how we were fortunate to have prospered from a small construction company to an infrastructure conglomerate with reach across the globe. YTL CORPORATION BERHAD YTL CORPORATION

2 namely profit organisationsthatmakethispossible, inseveralnon- I amalsoproudtoserve a 35-acreparkintheheartofcity. artistic communitytogetherinSentulPark, realised throughbringingnatureandthe environment andfortheArtshasbeen passionforthe Here, myfervent ArtsCentre(KLPac). Lumpur Performing advisorofTheKuala to bethehonorary As akeensupporteroftheArts,Iamproud primarily Indonesia. inSouthEastAsia, reef conservation efforts onforestprotectionand oncoral USD500,000 tosupportconservation resources. Infact,YTLrecentlydonated and projects,aswellopendoorsto Secretary, tostrategise,buildpartnerships Paulson, Jr., thecurrentUSTreasury M. working alongsidepeoplelikeHenry precious ecosystems,Ihadtheprivilegeof committed toprotectingnature’s most groupsintheworld largest conservation As alongtimememberofTNC,onethe Malaysia (ICRM) and the International BusinessLeadersForum(IBLF) The Nature Conservancy (TNC), The NatureConservancy Institute ofCorporateResponsibility . the Rare Conservation USD100,000 eachto This year, wehavedonatedafurther together forasolutiontoglobal warming. achieved whenlike-mindedparties work opening, asIhaveseenwhat canbe organisations hasbeentremendously eye- My involvementwithallthesefine sense aswell. good commonsense,buteconomic saving theenvironmentnotonlymakes I trulyhopetoconvincethesenationsthat prevent furtherenvironmentaldegradation, economies. With financialincentivesto responsible businessindeveloping because thisroleallowsmetochampion such luminaries,Iamparticularlyexcited being immenselyhonouredtoworkwith President oftheWorld Bank.Apartfrom including JamesWolfensohn, former Board,alongsidetopleaders Advisory invited tositonIBLF’s International Personally, it isindeedanhonourtobe wildlife conservation. dedicated toenvironmentalprotectionand established non-governmentalorganisations , twointernationally WWF-Malaysia etlPr,KaaLmu Wessex Water, UK Sentul Park,KualaLumpur and as economicimplications. to imaginethelossofhuman lives, aswell will besubmergedinwater. Itisunthinkable Shanghai, NewYork, London,andTokyo, centimetres. see rise byamere one degreeCelsius,we’ll a frighteningimplication,iftemperatures and futuregenerations.To highlight of notactingwillbedevastatingforcurrent act nowbecause,letmeassureyou,thecost The consensuswassimple-theworldhasto world’s leadingexpertonglobalwarming. NASA’s GoddardInstitute,consideredthe Institute, andProfessorJamesHansenof Dean ofColumbiaUniversity’s Earth Sachs, panel ofexpertsincludingJeffery business ofclimatechange,alongsideatop Here, Idiscussedtheeffects,solutionsand feature onBusinessandClimateChange. participate intheirGlobalPlayersspecial I washonouredtobeinvitedbyCNBC the progressbeingmade.FollowingCGI, confidence andhopewasbolsteredinseeing as EnergyandClimateChange,my meeting oftopleaderstoworkonissuessuch Global Initiative(CGI)inNewYork, anannual In fact,whenIattendedthe2006Clinton rising sealevelsofafewmetres,not Simply put,coastalcitieslike 3 YTL CORPORATION BERHAD 4 YTL CORPORATION BERHAD no longeramere catchphrase,butareality. that refusetoaccept thatgreentechnologyis the onesleftbehind willbethecompanies cars itwillreplace.Thefactis,in the longrun, emissions savedasaresultofthe millionsof project, imaginethereduction ofcarbon If youlookatourExpressRail Link(ERL) but alsoduetothebigconsumer pushforit. technology, notjustbecausewedemandit, continuously worktoimprovetheir we insistthatourequipmentsuppliersmust preventive ones.Infact,asautilitiesplayer, develop technology becausewebelieveitisbetterto innovate onwayswecanuseclean For years,YTLhasbeenworkinghardto Malaysia (FRIM). Festival The Starnewspaperintheir IncreaseProfitsConference to Carbon Commission (Malaysia)intheir nation, havingsupportedtheBritishHigh further climatechangeawarenessinour participated inmanyconferencestoraise for bothconferences.We havethisyearalso and energysecurityweretopoftheagenda Conference 2007,whereclimatechange in SydneyandForbesGlobalCEO Economic Cooperation(APEC)conferences to beaparticipantatboththeAsiaPacific YTL Corporationwasalsoinvitedthisyear Letter fromtheManagingDirector held attheForestResearch Institute adaptive technologies Green Every Day Green Every rather than Cutting and our We havealsotakenthingsastepfurtherwith towards thecriticalissueofglobalwarming. raise publicawarenessandeducation Change Week organised ahugelysuccessful and SocialReportingAwards 2006.YTLalso Report the responsibility achievementsincludewinning In 2007,milestonesofourcorporatesocial energy sector. in cleantechnologyandtherenewable and encouragecompaniesthatinnovate (AREEF), avehiclethatallowsustoinvestin Renewable EnergyandEnvironmentFund Going further, weareinvestorsofTheAsian for futuregenerations. humanity andthe environment,forusand our ongoingcommitmentto safeguard accomplishments arecertainly testimony to development inSentul,KualaLumpur. These part ofYTLLand’s iconicurban renewal on BirdIslandatour35-acre Sentul Park, opportunity todesignsixeco-friendlyhomes engineering willcompeteforthe names inarchitecture andenvironmental Malaysia. Here,eightoftheworld’s leading development andenergyefficienthomesin project whichpromotessustainable Bird IslandGreen HomesCompetition Best SocialReportinginanAnnual at the ACCA MalaysiaEnvironmental in March 2007,designedto Climate , a PSM, CBE,SIMP, DPMS,DPMP, JMN,JP TAN SRIDATO’ (DR)FRANCISYEOH May God Bless each and everyone ofyou, May GodBlesseachandeveryone Our journeycontinues. that YTLiscertainlyproudtomake. change isalong-termcommitment,one environmental responsibilityandclimate Addressing corporatesocialresponsibility, fight againstglobalwarming. they startthinkingandactinginthe individuals andcompaniesalike,sothat awareness andinspiringaction,byboth over theyears.Itisaboutspreading just aboutYTLorwhatwe’vedone Looking atthebiggerpicture,thisisnot values andpurpose. believe theyaresymbiotictoourcore them intoonereport,because,ineffect,we and environmentalresponsibility, merging include bothcorporatesocialresponsibility We havestructuredourreportthisyearto Sentul Park,KualaLumpur whole inawiderangeofways. customers, theenvironmentand societyasa this withpassiontoouremployees, our aspectofour business.Weevery demonstrate out should befundamentaltohowwecarry seriously.we takevery Actingresponsibly the YTLGroup’s keyvaluesandsomething developments. Socialresponsibilityisoneof achievements, andtheforefrontofourfuture generations aremilestonesofour same time,anticipatingtheneedsoffuture needs ofthepresentgenerationwhilst,at sustainable environment.Consideringthe operate, aimingforahealthy, safeand We we strivetoimproveliveseverywhere work. and thecommunitieswherewelive customers andsuppliers,theenvironment have responsibilitiestoourcolleagues, have onthelivesofmillionspeople.We customer base,hencethebiginfluencewe the worldandhavedevelopedaglobal employ morethan6,200peoplearound industries inwhichwedobusiness.We of livesbecausethenature its subsidiaries(“YTLGroup”)touchmillions YTL CorporationBerhad(“YTLCorp”)and Corporate SocialResponsibility their owndevelopment. encouraged toplayafullpart inguiding employees intheworkplace.Allare health, safetyandwellbeingofour ensuring equalityofopportunity, andthe of theirwellbeing.We arecommittedto achievement andbylookingafterallaspects encouraging development,byrecognising intellectual capitalandshowthisby business great.We knowthevalueofour to unlockingourpotentialmakeagood We acknowledgeouremployeesarethekey RESPONSIBILITY TOEMPLOYEES requirements. with allapplicablelegalandregulatory as acompany, andundertaketocomply apply asimilarrequirementtoourconduct Intellectual integrityisencouraged.We conduct inalltheirbusinessrelationships. highest standardsofpropriety, integrityand We expectallour staff tomaintainthe CORPORATE ANDPERSONALCONDUCT Report. included inthissectionof the Annual governance andinternalcontrol arealso YTL Corp’s statementson corporate Reputation,business trustandintegrity • Informationandtransparency • • Sustainable development • Accountability • Social duty • Corporate leadership • Shareholder action • Investor protection Long-termshareholder value • Goodwilloflocalcommunities • Customerpreferenceandloyalty • Staffmotivationandattractionoftalent • Relationshipswithregulators • Riskmanagementperformance • Internalcontrolsystems • Goodmanagementpractices • by enhancing: businesses and,inturn,toourshareholders, responsibility candeliverbenefitstoour We believeeffective corporatesocial RESPONSIBILITY TOSHAREHOLDERS The MapleatSentulPark,KualaLumpur 5 YTL CORPORATION BERHAD SUPPORTING EDUCATION & COMMUNITY DEVELOPMENT “To us, it is not just about donations. It is about contributing through our actions to improving the state of mankind and the world around us. It is the least we can do for our nation and future generations”.

–Tan Sri Dato’ (Dr) Francis Yeoh Managing Director of YTL Corporation Berhad Corporate Social Responsibility

SOCIALLY RESPONSIBLE BUSINESS: THE ROOTS OF YTL’S GROWTH

The YTL Group has embraced corporate social responsibility, ever since our humble beginnings in 1955. Starting out as a small construction company, our core competencies have expanded since then to include utilities, cement manufacturing, construction contracting, property development, hotel development and management, IT, e-commerce and technology incubation.

Our group understands that today, the increasingly competitive and challenging business environment means that we will need to work harder to ensure our people and stakeholders are not only rewarded but protected by the risks these challenges bring. This shared wisdom fuels our intention to perform in this area of corporate responsibility even more as we realise giving back to society and the people helping us on our journey becomes an imperative.

Timeline of Socially Responsible Growth

1955 - 1990 1990 - 2000 2000 - Today

• First Turnkey Contractor in Malaysia • Power, first IPP in Malaysia, borne • Global expansion of the power crisis in the early 1990s • Construction roots • ElectraNet, transmission and • High Speed Rail, from KLIA to distribution in South Australia • Defence & Security – post-colonial KL city center era/Cold War • Wessex Water, water and wastewater • Cement, first ready-mixed concrete company in UK • New designs to make low-cost company in Malaysia housing more attractive/spacious • Jawa Power, Paiton II Indonesian IPP • Hotels and Resorts, award winning • Nucleus Hospitals luxury hotels, resorts and shopping • Jurong Cement, cement company centres with interests in Singapore and China • Schools & Universities

Humble Beginnings Contributing to Malaysia’s Growth Building a Global Presence YTL CORPORATION BERHAD YTL CORPORATION

8 The Reporting Awards (MESRA)2006 an AnnualReport’atthe In May2007,YTLCorpwontheawardfor‘BestSocialReportingin Report. CSR activitiesandinitiativesforthefirsttimeinits2006Annual responsible businessesandbegancomprehensivelyreportingonits YTL Corphasalong-standingcommitmenttooperatingsocially – attract qualityinvestors.” better accesstoagrowingpoolofcapitalandtheability initiatives astheybelieveinthevaluegoodCSRbrings,such are alreadyseeingmanycompaniesactivelypursuingCSR businesses notonlyinMalaysia,butalsoacrosstheworld.We “CSR isbeginningtohaveaprofoundeffectontheconductof ACCA MESRAAwards 2006 AWARDS &ACCOLADES can beaccessed at a broadrangeofstakeholders’ interests.Thereportofthejudges The distinguishedpanelofjudges for & investmentweeklyandTheSun. the MalaysianInstituteofIntegrity, supported byTheEdgebusiness ofNaturalResourcesDepartment ofEnvironment,the Ministry and The Awards areendorsedbyBursaMalaysiaBerhad,the and development. awards helptounderlinethebusinesscaseforsustainablepractices Ultimately,corporate socialresponsibility(CSR)performance. the identifying andrewardinginnovativeattemptstocommunicate environmental, socialandsustainabilityreporting,withtheaim of notes onYTLCorp’s CSRReport2006areasfollows: Sun, 7May2007 Dato’ Yusli MohamedYusoff, CEO,BursaMalaysiaBerhad,The ACCA-MESRA http://www.accaglobal.com recognises companiesforexcellencein ACCA MalaysiaEnvironmentalandSocial . CAMSA2006 ACCA-MESRA the awardsceremony Dato’ Yusli MohamedYusoff at Berhad’s ChiefExecutiveOfficer, the awardfromBursaMalaysia Investments, YTLCorp,accepting Ruth Yeoh, Directorof and thejudges’ represents report. Social Responsibilitystatementcanbefoundonpages40-51ofthe YTL’s winningreportcanbereadandaccessedat ytlcommunity.com/climatechange Disaster Victims AssistanceFunds endeavour tobuildabetterfutureforeverybody. helping childrenleadhealthyandenergeticlifestyles, we engage withprojectsacrossMalaysia.Fromtacklingpovertyto with schoolsandcharitableorganisationstoeducate,support are anactivepartnerofcitiesandcommunities,workingclosely The YTLGrouprecognisesourdutytobeagoodneighbour. We RESPONSIBILITY TOTHECOMMUNITY Makesreferencetootherwebsites– • • Indicates how socialresponsibilitypoliciesareintegratedinto • Revealstopmanagement’s commitmenttocorporatecitizenship. • Includessocialinvestmentsandclearlyarticulatesthepurposeof • ExplainsitsCSRinitiativesforeach sectorofbusiness,giving • Usesaninterestingdiagramtoillustrateissuesincorporatein • Identifiesitskeystakeholdersandexplainsplanstoenhance • Includesastatementonresponsibleandpersonalconduct. • HasaseparatesectiondedicatedtoitsCSRperformance. • The report information sharingandawarenesspurposes. concise texttoenhancereadability. Has excellentlayoutandrelevantphotosaccompaniedby employee developmentandengagement. these investments. datawhereapplicable. performance sustainable developmentforitswaterandsewerageservices. stakeholders’ value. : . Thecompany’s Corporate www.wessexwater.co.uk Datuk SyedFaisalAlbar. and ChiefExecutiveOfficer Datuk KalimullahHassan(left) Press (M)BhdDeputyChairman RM3 milliontoNewStraitsTimes presenting amockchequefor (Dr) FrancisYeoh (centre) YTL ManagingDirectorTan Sri www. for 9 YTL CORPORATION BERHAD Corporate Social Responsibility

The geographical diversity of our operations requires a heightened ‘Toys for Tots’ Campaign awareness of the social and economic conditions in the countries in which the Group operates. Our presence in Indonesia brought the Dato’ Yeoh Soo Min, Aceh tsunami that devastated swathes of the Asian region in YTL Corp Executive Director (second from left) and December 2004 much closer to home and the Group contributed JW Marriott management RM2.0 million to the Malaysian Government’s RM12.95 million with underpriviliged children fund to assist with the relief efforts of the Indonesian Government. at the Christmas tree in the JW Marriott Hotel lobby. The Group also contributed Rp3.75 billion to the Indonesian Red Cross to assist with its various humanitarian programmes for Indonesian migrant workers returning home under the amnesty granted by the Malaysian Government.

Together with Jawa Power, our associate company in Indonesia, The annual ‘Toys for Tots’ Christmas charity campaign held at JW YTL contributed to relief efforts in Indonesia following the Marriott Hotel which YTL supports also enables guests and visitors earthquake that hit Yogyakarta in May 2006, donating funds to at the Group’s hotels to donate toys and gifts to benefit purchase basic necessities, such as rice, baby food, milk, antibiotics, underprivileged children. first-aid packages, tents and candles. The ‘Toys for Tots’ programme is one of the hotel’s continuing In January 2007, YTL Corp subsequently donated RM3 million to efforts in reaching out to the society, in line with the “Spirit to the NST Flood Victims Assistance Fund, the single largest donation Serve” tradition practised by Marriott properties worldwide. JW by a corporate body, to lend a helping hand to the thousands of Marriott Hotel Kuala Lumpur appeals to the public to join in the victims devastated by the floods in Johor. spirit of sharing and caring for the underprivileged during Christmas by donating toys and gifts to children from selected The PRIDE Foundation homes.

Amongst the many charities that we support, the ones that are closest to YTL’s heart include Pink Ribbon Deeds (PRIDE) which YTL is proud to be an active supporter of all these associations and, increases awareness and raises funds to support breast cancer in addition to donations, we offer the use of our hotels, restaurants survivors and improves standards of diagnosis, treatment and care and shopping centres to serve as venues for fundraising events for of breast cancer patients in Malaysia. these charities.

YTL supported and sponsored the “Bond with PRIDE” programme held in June 2007, where breast cancer patients were treated to a COMMITMENT TO ARTS & CULTURE day of pampering at our hotel spas and an empowerment workshop organised by PRIDE on topics such as wellness, beauty YTL Corp is a passionate supporter of the arts and culture in and financial planning. “Bond with PRIDE” aspires to raise Malaysia. We are a founding partner of the Kuala Lumpur awareness and empathy on post-surgery issues through the Performing Arts Centre (KLPac), together with Yayasan Budi bonding and sharing of experiences during the programme. Penyayang Malaysia and The Actors Studio. KLPac is the home for the performing arts in Malaysia, which is located in The Park at our YTL Director of Investments, Ruth Yeoh, recently contributed to Sentul development. This is a USD7 million (RM25 million) effort PRIDE’s “BOND WITH PRIDE” book, sharing her family’s from our part. experiences with her mother, who was a breast cancer patient. The project is aimed to inform and inspire hope in all breast cancer We take every opportunity to support productions that tap the patients and families of loved ones affected by breast cancer. potential of local talent and to encourage the development of our own arts and cultural scene in Malaysia to showcase the uniqueness of our heritage and also providing the people of the city an alternative medium of expression and communication. YTL CORPORATION BERHAD YTL CORPORATION

10 Orchestra. Watson, accompaniedbytheacclaimedAdelaideSymphony development inKualaLumpur, featuringBritain’s top tenor, Russell bystagingafreeconcertatourSentulPark Anniversary In December2005,theYTLCorpGroupcelebratedits 50th the peopleofBritainwhowelcomedourinvestments. 50,000, inAugust2003.Thiswasdoneasagestureofthanks to Bath, inWessex CountyintheUnitedKingdom,toanaudienceof famed tenors–Pavarotti,DomingoandCarrerasforthecityof On theglobalfront,YTLCorporchestrated bythree aperformance 2001. understanding, afterthetumultuouseventsof11thSeptember invited tosingaglobalaudiencefosterpeaceand where worldrenownedtenor, thelateLucianoPavarotti,was momentous concertwasheldatourresortislandofPangkorLaut, were usuallygiventothepublicattend.InSeptember2002,a which havebeenheldatmanydifferentlocationsandfreetickets Perhaps ourmostuniqueeffortsare YTL ConcertsofCelebration Festival six years.YTLCorphasalsobeensponsoringthe orchestra comprisedoflocalyoungtalentedclassicalmusicians,for President ofthe Director, Tan SriDato’(Dr)FrancisYeoh SockPingwasthe talent tofosterappreciationofmusicaltalent.OurManaging YTL Corpisalsopassionateaboutmusicandbelievesinharvesting since 2000. Kuala LumpurSymphonyOrchestra Society Mel Gibson. Yeoh SockPingandspecialguest with Tan SriDato’(Dr)Francis The castof“ Concerts ofCelebration YTL-Penang Arts Tunku –TheMusical , an ” his educationinchosendiscipline. Kadir. ThewinnerreceivedaRM50,000scholarshipfundtofurther was awardedtofreelanceartistanddancechoreographerAris Endon MahmoodAward ArtsExcellence forPerforming In September2007,YTLCorpsponsoredthe artistic talentandwedothisinseveralways. YTL understandstheneedtoappreciate,encourageandreward Harnessing CreativitythroughWorkshops andtheArts National “MerdekaDay”Celebrations. and playedtofullhousesthroughoutitsrunduringMalaysia’s pays tributetoMalaysia’s foundingleader, Tunku AbdulRahman, and directedbyJoeHasham,KLPac’s ArtisticDirector, themusical Created free ticketsgivenouttothepublicforallperformances. ArtsCentre(KLPac)from12–15September2007with Performing YTL Corpsponsored“ three minutesofamasterpiecein themaking. of movementandpower, yougetnotonlythreeminutesofenergybut that “ Tan SriDato’(Dr)FrancisYeoh officiated theeventandexpressed a largecrowdandadmirers. Exposé showcasingartworksof“PeoplesMalaysia”,which drew held toshowcase“MalaysianMaestrosinMotion”,aLive Art spirit, progressandqualityofMalaysianArts,anexhibition was “Malaysia’s 50GoldenYears ofMerdeka”withatribute tothe celebratedthe commemoration of Celebrations. StarhillGallery conjunction withtheMalaysianNationalDay(“MerdekaDay”) works fromlocalMalaysianartistsanddesigners,timed in wasrefurbishedandconvertedtoshowcase the StarhillGallery Within thesamemonthofSeptember, theentire“Muse”floorof each artpieceisanindependentexperience.Intheawesomeness Tunku –TheMusical Performing ArtsExcellence. Performing Seri EndonMahmoodAward for with theinauguralDatinPaduka choreographer ArisKadir(left) freelance artistanddance Director ofYTLCorp,presents Sock Ping(centre),Managing Tan SriDato’(Dr)FrancisYeoh ” ” attheKualaLumpur Datin PadukaSeri , which 11 YTL CORPORATION BERHAD PROMOTION OF ARTS & CULTURE “At YTL, we are passionate about the arts as we believe in their universal appeal in transcending geographical, cultural and socio-economic boundaries. The arts offer us an alternative means of expression, enhancing our vocabulary in communication beyond words with each other. In this way, the arts wield their power to foster greater understanding amongst peoples, bringing us closer in sharing and understanding common human experiences and emotions such as joy, pride, hope, poignancy, empathy and all that make us uniquely human.”

– Speech by Tan Sri Dato’ (Dr) Francis Yeoh, Managing Director of YTL Corporation Berhad, at the Malaysian Maestros in Motion: “Peoples of Malaysia” Live Art Exposé on 8 September 2007 Corporate Social Responsibility

Malaysian Maestros in Motion: YTL Corp also remains committed to improving educational “Peoples of Malaysia” Live Art standards of Malaysia’s next generation of leaders. This Exposé commitment is carried throughout the organisation to reiterate the Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, Managing Director of message that educational development begins at home. YTL Corp, with artists Jack Ting, Yusri Sulaiman, Fauzul Yusri, Eric (From left to right) YTL Corp Quah and Yusof Ghani at The Executive Director Dato’ Yeoh Gallery @ Starhill Gallery which Sock Hong and his wife YTL Corp hosted the Live Art Expose Group Legal Adviser Datin entitled “Peoples of Malaysia” Kathleen Chew Wai Lin, their son performed by the six artists. Yeoh Keong Yuan; Yeoh Keong Junn, son of YTL Corp Managing Tan Sri (Dr) Francis Yeoh with Director Tan Sri Dato’ (Dr) Photographer Jeffry Lim and Francis Yeoh Sock Ping, Tan Sri artist Yusof Ghani Dato’ (Dr) Francis Yeoh; Tan Chien Yih, and parents YTL Corp Executive Director Dato’ Yeoh Soo Min and Dato’ Robert Tan. Yeoh Keong Junn, Yeoh Keong Yuan and Tan Chien Yih graduated from Harrow School UK with flying colours in 2007.

YTL also strives to encourage the creativity of children through a The YTL Scholarship Foundation rich variety of programmes which offer not only memorable experiences but which also broadens their learning capacities. We We believe education plays a strong role in growing and believe learning and creativity are imperative in incubating talent, safeguarding the potential of our future generation of leaders. The and the best means is to provide a platform which children and YTL Scholarship Foundation was established in 1995 with the young adults can interact. objective of promoting higher education in Malaysia by offering scholarships to deserving individuals who would otherwise be YTL has historically sponsored numerous musical performances of denied of higher education due to financial constraints. Given the which most are tailored to families and have also initiated several opportunity, we believe such individuals will be able to achieve activity workshops at KLPac at our Sentul Park development. Visit their full potential and assume leadership positions to contribute www.klpac.com to find out more. towards the nation’s economic development.

The YTL Power International Berhad Scholarship Fund

YTL POWER INTERNATIONAL BERHAD SCHOLARSHIP FUND FOR THE NEXT GENERATION The YTL Power International Berhad Scholarship Fund was At YTL, we believe that effective human resource utilisation and established to complement the YTL Scholarship Foundation with efficient teamwork are vital in achieving our aspirations. With the the objective of promoting higher education by offering various businesses we are in, we do offer a wide range of career scholarships to qualified students who are pursuing full-time paths for those with the ability and desire to excel. Visit foundation and degree courses at University Tenaga Nasional www.ytl.com.my/jobs.asp and www.ytlcommunity.com for more (UNITEN), a local university in Malaysia offering courses in details on recruitment. Engineering, IT & Accounting. Visit www.ytlcommunity.com/ scholarship for more details. The YTL Group continues to play a strong role in growing and safeguarding the potential of our future generation of leaders and

YTL CORPORATION BERHAD YTL CORPORATION supporting local communities by offering scholarships to deserving individuals and through participation in adopt-a-school programmes. 14 of Sabah. inception, andisagreatasset to thecommunityanddevelopment Malaysia, ithasexpandedrapidly sincetheearlydaysofits Beaufort, Sabah.Astheninth universitytobeestablishedin UMS wasthefirstlocaluniversity tobebuiltinthetownof thousand-strong Graduates. convocations atthisuniversityannually, awardingcertificatestoits Pro ChancellorofTheUniversitiMalaysiaSabah(UMS)andattends Our Chairman,Tan SriDato’Seri(Dr) Yeoh Tiong Lay, isthecurrent The UniversityMalaysiaSabah stores, amongstothers. and StudentAssociationbuilding,bookshop,caféconvenience environment. Facilitiesincludelaboratories,library, sportscomplex, of RM120Million,itoffersahighqualitylearningand living of aBritishuniversityoutsidetheUnitedKingdom.Builtatcost 30km southofKualaLumpur, andisthefirstpurpose-builtcampus opened earlyin2005)sitsona101-acresiteclosetoSemenyih, partnership withtwolocalpartners.Thenewcampus(which The UniversityofNottinghamMalaysiaCampushasajoint 1,300 studentsfrommorethan30countries. student populationhasnowgrowntoaninternationalof in KualaLumpurSeptember2000,withjustover90students,the campus insidethePeople’s RepublicofChina.Sinceopening itsdoors Malaysia, followedbytheofficialopeningoffirstforeignuniversity Asia, withtheestablishmentofamulti-millionpoundcampusin The UniversityofNottinghamhasopenedpioneeringcampusesin receiving the‘Times HigherAwards 2006’foreducation. rankings andwasdeclaredBritain’s ‘UniversityoftheYear’ 2006/7, Last year, TheUniversityofNottinghamagainroseinworld universities, itsacademicshavewontwoNobelPrizessince2003. the highestquality. RankedbyNewsweekintheworld’s Top 75 research, providesinnovative teachingandastudentexperienceof The UniversityofNottinghamalsoundertakesworld-changing education institutionsanywhereintheworld. in thetop1%ofmorethansevenandahalfthousandhigher Economics. In2006,theUniversityofNottinghamwasconfirmed Cambridge, ImperialCollegeLondonandtheSchoolof United Kingdom,alongsideinstitutionswhichincludeOxford, Nottingham isdeclaredoneofthetenbestuniversitiesin joint partnershipwithTheUniversityofNottinghaminMalaysia. In linewithourplansforeducationalexpansion,wehavefostereda The UniversityofNottinghaminMalaysia Malaysia Sabah(UMS)FoundationinJune2004. Excellence, YTLCorpdonatedRM2.5milliontotheUniversiti In linewiththedevelopmentofMalaysiaasaCentreEducational standards ofqualityinbothacademicandnon-academicactivities. The universityisnowfullycommittedtoachievingthehighest increasing numberofschools,centresandunitsattheuniversity. learning andresearch havewitnessedtheemergenceofan that followedtheacquisitionofbuildingfacilitiesforteaching, to setupabranchcampusintheFederalTerritory ofLabuan.Years 1999. TheMalaysianGovernmentthengrantedapprovaltoUMS university’s occupationofthepermanentcampusbeginningin began onAugust1995andwascompletedin2000,withthe development ofapermanentcampuson999-acrepieceland UMS hasbeenprogressingatatremendouspace.Thephysical 1994,thedevelopmentof Since itsinceptionon31stJanuary Options Scheme. to supplement highercostsofliving,andan Employees’Share Saving Schemesatpreferential rates,13-monthwagesupplements workforce. We also provideouremployeeswithaccesstoOptional and InsurancePlanwhichensures thehealthandsafetyofour importance atourorganisation. We haveaGroup Hospitalisation Providing ahealthyandsafe working environmentisofutmost Employee Welfare element ofourorganisation. annually. Technology alsoplaysacrucialroleinthesocialinclusion leadership skillsthroughourYTLLeadershipConferences, held Employee Welfare provisions,wealsoaimtoinspireemployeeand enhance andfosterunitywithinourpeople.Ontopof our workshops, gatheringsandteambuilding(“offsite”)events to people towardsourgrowthandsuccess,weorganise As aGroup,YTLunderstandstheimmensecontributionof our FOR OURPEOPLE Chairman ofYTLCorpand Tan SriDato’Seri(Dr) of UniversitiMalaysiaSabah Pro Chancellor Yeoh Tiong Lay, 15 YTL CORPORATION BERHAD Corporate Social Responsibility

YTL Leadership Conferences YTL e-Solutions’ stable of businesses currently comprises Extiva Communications Sdn Bhd (“Extiva”), Infoscreen Networks Plc The YTL Leadership Conference is an annual gathering of more (“INP”) and its wholly-owned subsidiary, YTL Info Screen Sdn Bhd than 500 senior managers and directors (“leaders”) from all the (“YTLIS”), Intellectual Learning Sdn Bhd, PropertyNetAsia (M) Sdn major subsidiaries of the Group, who attend a 2-day Forum for Bhd and Y-Max Networks Sdn Bhd. Extiva provides value-added discussion on leadership issues. Leaders are invited to present AVSP and telephony solutions and services and YTLIS is a leading progress of their management and share key wisdoms on plasma-based digital media networks in Malaysia with high quality leadership strategies, according to their responsibilities and the “in-house” digital content. theme of the conference, which is different for every year it is held. Last year’s YTL Leadership Conference 2006 was themed “Towards The Group was also recently awarded with one of three WiMax a Culture of Excellence: World Class Service Challenge” and licenses in West Malaysia and it is anticipated that the deployment of discussions are underway for this year’s theme to be on multiplying WiMax will significantly improve Malaysia’s broadband penetration turnover and profits as well as sustainability. rate and provide high speed broadband access to the masses.

Our Chairman, Tan Sri Dato’ (Dr) Yeoh Tiong Lay, our Managing Through leveraging on these technologies, the media and online Director, Tan Sri Dato’ (Dr) Francis Yeoh, and fellow members of communication tools, we enhance the community aspect through the Board normally chair and moderate these sessions, social inclusion, updating our stakeholders and customers on YTL’s contributing to the dialogue on leadership. The conferences are latest developments thereby encouraging transparency and very open and every colleague of ours is invited to share their views knowledge towards our operations, products and services. and ask questions, creating a forum for ideas exchange, inspiration, interaction, collaboration and communication. YTL e-Solutions also powers the YTL Community website, which provides the latest news and information not only on YTL but on Technology and Social Inclusion the world at large. It is also includes announcements of social events and connects to other related websites of the other YTL subsidiaries. There is also a channel available for customers who frequent our properties to interact with each other through the YTL Platinum Plus membership. The YTL Platinum Plus lounge and concierge service has been set up at Starhill Gallery purely to provide customer service and to inform customers of upcoming YTL social events. We invite you to visit www.ytlcommunity.com and www.ytlplatinumplus.com to sign up to our e-mailing list and to find out more about us. Come join us in our journey.

Technology incubation is a business that YTL dedicates time to MEMBERSHIPS developing because we understand that developing our intellectual capital and communications in turn helps to develop our The International Business Leaders Forum innovation potential of our Group. YTL e-Solutions becomes the bridge connecting our people and stakeholders, communicating YTL is a principal supporter of the International Business Leaders the most up-to-date business and company-related matters to our Forum (IBLF). Our Group Managing Director, Tan Sri Dato’ (Dr) people whom, in effect, make up our “YTL Community”. Francis Yeoh, sits on IBLF’s International Advisory Board which advises IBLF on its international growth and leadership strategy. It is an incubator and investor in high growth, knowledge intensive companies that leverage on new technologies which enhance and The IBLF is an independent, not-for-profit organisation which works integrate with the Group’s existing businesses. with business, governments and civil society to enhance the contribution that companies can make to sustainable development. YTL CORPORATION BERHAD YTL CORPORATION

16 – well astoshareholders.” It isdesignedtodeliversustainable valuetosocietyatlarge,as and respectforemployees,communitiestheenvironment. transparent businesspracticesthatarebasedonethicalvalues “CSR –orcorporatesocialresponsibilitymeansopen and The IBLFwebsitecanbeaccessedat occasionally, who assistusinourstrategiesforsustainability. organisation. We alsomeetwithkeyrepresentativesfromtheIBLF we realisethebenefitsandnecessityofbeingasociallyresponsible YTL addressesandrespondstothesethemesonanongoingbasis, as • Environment Humandisasterrelief • Educationandleadershipdevelopment • • Health promotion Businessstandardsandcorporategovernance • Enterpriseandeconomicdevelopment • Humanrights,labourandsecurity • such as: According toIBLF, corporatesocialresponsibilityincludesthemes human developmentissues. employment, andenablingcompaniestocontributehealth business standards,improvingprospectsforenterpriseand strengthen. Currentareasofworkincluderaisingsustainable the world,manyofwhichIBLFhashelpedtoestablishor benefits fromlong-termrelationshipswithregionalnetworksacross of Wales, theIBLFhasworkedinover90countries.Theirwork Since 1990,andwiththesupportofitsPresident,HRHThePrince benchmarking. spots, buildingmanagementcapacity, communicatingand working oncorporatestrategyandimplementation,managinghot innovation andinternationalleadershipincorporatecitizenship, IBLF workswithitscorporatepartnerstoencouragevision, organisations anddevelopsuccessfulcross-sectorpartnerships. impact onsociety, IBLFhelpsbusinessesconnectwithother provide businesseswithopportunitiestodirectlyenhancetheir economies. Aswellasmanaginganumberofprogrammesthat face, particularlywhenoperatingintransitionandemerging understand andrespondtothedevelopmentchallengesthatthey and providesstrategiccounseltocompaniesenablethem It iscurrentlysupportedby100oftheworld’s leadingbusinesses The InternationalBusinessLeaders Forum(IBLF) http://www.iblf.org . More informationonICRMcanbefounditswebsite: Attendingreviewmeetingsonaquarterlybasis • ConsideringandcommentingonanysignificantCSRor • ProvidingtheAcademicPanelideas forresearch onCSRissues • SharingexperiencesonCSRagendawithothermembers • Promoting,supportingandsponsoringcapacitybuilding • YTL’s responsibilities include: local andmultinationalcompanies.AsaBusinessPanelmember, ICRM’s BusinessPanelcomprisesgovernmentlinkedcompanies, the developmentofsociallyresponsiblebusinesspractices. environment andsociety. ThemainobjectiveofICRMistopromote philosophy andpracticesthatwillhavepositiveimpactsonpeople, academic institutionscommittedtoadvancingresponsiblebusiness Responsibility Malaysia(ICRM),auniquenetworkofcorporateand YTL CorpisanactivememberoftheInstituteCorporate The InstituteofCorporateResponsibilityMalaysia http://my-icrm.org – good racealongsideus,forwe willberunningtoo.” warm andpassionateheart. Iurgeyoutokeeprunningthe and willtocreatewhatyouwishcreate,Ipraywith a endeavour… Lookingahead,Iwishallofyoutheimagination world ofman.We mustbringitbacktosanityandproductive we mustalsobegintoharnessourheartsre-engineer the “We mustnot stopatjustharnessingourimaginativeminds; Speech byTan SriDato’(Dr)FrancisYeoh SockPing, at SentulParkon 17December2005 at YTL’s ConcertofCelebration 2005 50thAnniversary Managing DirectorofYTLCorporation Berhad, sustainability trendsandissues which areofrelevancetolocalbusinesses through talksandarticles conferences programmes suchasdevelopmentofguidelines,workshopsand . 17 YTL CORPORATION BERHAD PROTECTION OF THE ENVIRONMENT “We have only one planet – it is, therefore, imperative that our actions today and tomorrow are sustainable for our own economic welfare otherwise we are cursing future generations with our negligence as we are now cursed by previous generation of political and business leaders that did not pay attention to sustainability”.

– Tan Sri Dato’ (Dr) Francis Yeoh, Managing Director, YTL Corporation Berhad Environmental Responsibility

THE YTL GROUP’S ENVIRONMENTAL VISION Wessex Water, our subsidiary in the UK, operates under a stringent set of environmental directives and regulations with a key long We are fully committed to being a responsible corporate citizen. term goal of becoming a sustainable water company. Wessex Energy plays an essential role in ensuring quality of life for people Water’s comprehensive programme to achieve this goal has everywhere, for us and for future generations. Supplying energy ensured that all compliance rates for drinking water, sewage efficiently is critical to helping people maintain and improve their treatment and bathing water have not only been met but are standard of living. However, this brings with it significant amongst the best in the United Kingdom. challenges – for example, the very real threat of climate change means that we need to continue to provide and deliver energy in a It can be observed that water companies in the UK readily way that minimises the impact our emissions have on the incorporate corporate social responsibility (CSR), and environmental environment. We recognise the importance of sustainable and social reporting, through a mixture of legislation, regulation development, setting targets to reduce the carbon footprint of our and good practice. They are leading the way in the utilities industry operations on society and understanding the dire consequences of through their responsible action. Because water is such a necessary global warming. commodity, CSR was placed on the agenda to give fair returns to owners and stakeholders, on top of regulation.

ENERGY SAVING AND SUSTAINABLE PLANNING Wessex Water is currently recognised by the water industry regulator, Ofwat, as the most efficient operator in England and Water & Sewerage Services Wales. Advanced treatment techniques, automation, state-of-the-art control and monitoring systems ensure consistently high standards “We are commited to giving all our customers excellent at a low cost. The company has a high 99.93% compliance rate in standards of service by providing high quality water and accordance with EU standards and has adopted the ISO 9000 environment services that protect health, improve the quality assurance for its water production and control systems. environment and give customers good value for money.” In terms of sewage treatment standards, the company has – Wessex Water website, 2007 obtained greater than 99% compliance with discharge standards and almost 100% compliance with bathing water standards, as

Opinion formers well as maintaining some of the best rivers and bathing waters in

Recreational groups the country. ors t Customers Community groups (our owner) Inves Reports are made to subsidiary level boards and communicated up

YTL to the company’s Board. The Board of Wessex Water Services Ltd Contractors (WWSL) includes a Director of Compliance and Sustainability.

Other financialEuropean interests Union Suppli Wessex Water’s approach to CSR covers these four key areas: ers Defra

• Investing in the community National and local politicians Ofwat • Promoting health and safety Custom YTL comcompanypany er C oucil for Wat • Working towards sustainability er Local authorities Domest • Empowering employees Drinking Water Inspectorate ic customers Business customers The company has developed numerous CSR, environmental and Health and Safety Executive Environment Agency

ions sustainability initiatives as outlined in the diagram. Here, the

Natural England

Trade Unions programmes often overlap with each other and work together to incorporate wider issues:

fe organicat Employees dli

Wil

Source: Stakeholders, Wessex Water Stakeholder Report 2007 YTL CORPORATION BERHAD YTL CORPORATION

20 chairman ofthe Jonathon PorrittCBE,anon-executivedirectorwhoiscurrently Sustainability Panelthatmeetsthreetimesayear, chairedby importance intheprivatesector. Wessex Water alsohasa partners showshowsustainabledevelopmentisofcritical a sustainabledevelopmentcharitywhoseworkwithbusiness Its progresshasbeenhelpedbyitslinkswith investors whenthecompanywaslisted. demanded byallitsstakeholdersandtheprioritiesofethical business thattakessustainabilityissuesseriously, theaccountability taxation, theinterestthatemployeeshaveinbeingpartofa that makeupitsoperatinglicense,thegrowthofenvironmental tosocietyandtheenvironment practice. Theseincludetheservices of thebusinessreasonsforputtingsustainabilityprinciplesinto water company. Sincethen,ithasexperiencedatfirsthandsome In 1996,Wessex Water committeditselftobecomingasustainable Wessex Water’s CSREngagementProgrammes Water &Sewerage rather thanerodingthem. life. Asustainablesocietywould lookafterthesecapitalassets, itneedstoimprovequalityof society getsthegoodsandservices manufactured andfinancialcapital -theresources from which Capitals Model The Wessex Water Sustainability Vision interests groupsandindeedallstakeholders,haveaparttoplay. sustainable onitsown.Regulators,theGovernment,customers, For Wessex Water, itisclearthatawatercompanycannotbe Founder Directorof Campaign Water Conservation ‘Wise Up’ Website Information on Water and Sewerage Operations Community, Education&Recreation UK SustainableDevelopmentCommission . Thisincludesnatural,human, social, Forum fortheFuture. Community ContactService Volunteer SpeakerService Recreation &Fishing Watermark Award Education Service Education Service WaterAid Kidzone Recreation &Environmental Environmental Policy Reporting (EIR2004) Conservation, Access, Conservation, under Legislation Climate Change, Biodiversity is basedonthe Action Plan Forum fortheFuture Environment CSR Report “Striking theBalance” featured in Heart ofCSRPractice Five and , Further details andinformationareavailable on wessexwater.co.uk/sustainability Wessex Water’s “ effect adialogueonthegrowing importanceofsustainability. also publishesSustainabilityDiscussion Papersregularlywhichisin environmental indicatorsand sustainability issues.Thecompany Wessex Water publishesayearlySustainabilityReportreportingon Maintainingarobustbalancesheetandlongtermstable • Theeliminationofmaterialsfromallitsconstructionoperations • Havingrelationshipswithallitsstakeholdersthatareresponsible, • Positivelycontributingtothehealth,skills,knowledgeand • Helpingtoprotectorenhanceallnaturalresources and • would mean: For Wessex Water tooperate inagenuinelysustainableway, it wealth ofinformationonthese importantareas,canbeaccessedat 2 www.wessexwater.co.uk/strikingthebalance2006 1 sustainable watercompanywouldentail.TheVision hastwosections: Water hasgainedaclearerunderstandingofwhatbeing With thehelpofpeopleinsideand outsidethecompany, Wessex Source: Wessex Water, DiscussionPapers,November2006 The FiveCapitalsModel company’s commitmenttosustainability. relationships withshareholdersandcreditorswhoshare the can resultindamagetohumanhealthortheenvironment and assetmaintenanceprogrammesthatusedinappropriately that supportsustainabilityoutcomes clear andcooperative,withgovernancestructurespolicies motivation ofallitsemployees ecosystems usedoraffectedbyitsoperations Mechanisms Outcomes : a descriptionofwhatwouldconstitutea a : themeasuresthatwouldbeneeded tomovein : sustainable developmentprioritiesforeachcapital. the rightdirection,probablyover30years;i.e. sustainable position Striking theBalance

H um a n

c

a

M p a

F i N

n i t

n a

u a

a l

f t a n

u c c

r

i t a

a .

u

l

l

r

c

e c

a

d a

p

p S

i

c i

” report,whichprovidesa t

t

o a a a

l

c

p l

i i

ta a

l l

c

a

p

i t a l . www. 21 YTL CORPORATION BERHAD Environmental Responsibility

Power Generation & Transmission C&G scores % YTL Power 55 (Pictured) Power plant run by Lafarge MC 55 YTL Power. Energy experts claim IJM 50 cleaner technologies help power Resort World 45 plant owners save money on fuel, operations, maintenance Genting 45 and other related items. WCT 45 Tanjong 40 Plus Expressway 40 Kuala Lumpur Kepong 35 Zelan 35 Malaysia Airlines 30 Star Cruise 30 Environmental protection has been at the forefront of our planning Top Glove 30 from our first foray into utilities businesses. YTL Power has been IOI 25 instrumental in changing the Malaysian Government’s policy to use Bumiputra-Commerce 15 clean fuel like natural gas instead of sticking to their four fuel policy Gamuda 15 which includes abundant use of coal and crude oil. Naim Cendeara 10 Malayan Banking 5 YTL Power was the first Independent Power Producer in Malaysia SP Setia 5 and we were very careful from the outset that our gas fuelled Media Prima 5 combined cycle power plants would not cause environmental damage. The potential damage involves the emissions of nitrogen Source: CLSA Asia-Pacific Markets dioxide (NOx) into the atmosphere and the discharge of hot water back into the sea. The Paka Power Station is designed to minimise Our 35%-associate, P.T. Jawa Power in Indonesia, has received these emissions. ISO14001 certification for Environmental Management Systems for its 1,220 MW power station and we are currently pursuing this for The water cooling system uses submarine pipes laid out into the our Malaysian power stations as well. sea at different distances to carry cold sea water into the station and hot water out into the sea. This design has minimised hot Jawa Power remains the only Indonesian energy company to water recirculation and we further ensured that the elevated sea receive a Green Rating under the government’s Environmental water temperature would have a minimum impact on marine life Training Programme and has been awarded this rating for the 3rd by extending the length of the hot water discharge pipes by 10% consecutive year by the Indonesian Ministry of Environment under further than required in the engineering by-laws. its Environmental Rating Programme (PROPER) for 2006-2007. The Green Rating indicates that the company has implemented Our power stations in Paka and Pasir Gudang are designed to effective pollution control programs and has successfully exceeded comply with the Malaysian environmental quality regulations with the requirements of environmental laws and regulations. regard to emissions. These plants incorporate a range of measures to eliminate or reduce operational releases, including oil YTL Power’s ElectraNet operation in Australia operates in line with interceptors fitted to the site drainage systems and effluent a Code of Sustainable Practice. Its environmental policy provides a treatment facilities to treat waste water prior to discharge. Another framework to ensure that environmental considerations are specific design feature is the burners of the gas turbines. These gas included in the planning, design and construction and operational burners produce very low NOx levels during operation and thus phases of all business activities. help to mitigate the amount of emissions into the atmosphere. The NOx emission levels achieved are well within World Bank standards. The business is also pro-active in its general environmental responsibilities and conducts environmental audits on its In September 2007, YTL Power scored highly in CLSA’s Corporate substations and equipment on a regular basis. Amongst other Governance Watch 2007, an annual review of the corporate initiatives, the Australian Federal Government’s Greenhouse governance practices of Malaysian corporates. YTL Power was Challenge programme and Aboriginal Heritage issues are key

YTL CORPORATION BERHAD YTL CORPORATION ranked No.1 in terms of “Clean & Green” scoring in Malaysia, with considerations in ElectraNet’s drive to maintain sound an overall score of 55%. management practices and procedures. 22 information ontheseproperties. www.starhillgallery.com guide, accessibleontheirwebsite: potential environmentalimpactsareincorporatedinthecompany’s ElectraNet’s proceduresandsystemsforthemanagement of “ landscape, plantingtreesinurbanspacesandultimatelycreating In thepast,YTLhasalsobeenresponsiblefortransforming city sponsored bytheUSGreenBuildingCouncil. forourfuturebuildingprojects.LEEDprogrammesare surveillance currently activelypursuingLEEDcertificationandenvironmental Environmental Design property developmentteamhaveattended ofYTLCorp,and Lay SdnBhd(SPTYL),awholly-ownedsubsidiary Both ourSPYTLDesignteamforSyarikatPembenaanYeoh Tiong toreducetheneedforartificiallightandair-conditioners. airflow techniques thatmakethemostofnaturalsunlightandimprove and development,haveadoptedbuildingdesign number ofunitsinfavourmaintainingabalancebetweennature Besi andPantaiHillpark.We haveplacedthefocusonreducing developments, suchasLakeEdgeinPuchong,FieldsSungei philosophy throughoutallourcurrentresidentialproperty life ofthepeoplewhobuyourproperties.We haveadoptedthis residents becausewebelievethatthiswillenhancethequalityof green lungintheheartofKualaLumpurasaparkforuseour In ourSentulproject,wemadethedecisiontomaintaina35-acre Property Development minimising heatlossthusincreasingenergyefficiency. Visit efficiency throughmaximisingpenetrationofsunlight and wasfitted toincreaseenergy at theStarhillshoppinggallery the buildings.Mostnotably, thespecialglazingusedfordome shopping mallsreadilyincorporatesustainabledesignelements into Bintang, theheartofcity. Our Bintang Walk ”, apedestrianandshoppingstretchinBukit (LEED) workshopsinthepastandare and www.lot10.com.my www.electranet.com.au Starhill Gallery Leadership inEnergyand and for more . Lot 10 KLPac centre,pleasevisit system. To findoutmoreaboutourSentulParkdevelopmentand arts centre,koifarmandintegrationwiththeurbantransportation concept developmentincludingapark,greenhomes,performing abandoned golfcoursetransformedintoatotalgreenlifestyle Furthermore, our The BirdIslandGreenHomesCompetition of sustainablearchitecture andbuildingdesign. from therecognition thatenergy-efficientbuildings arethefuture ‘green’ architectural competitionofitskindintheworld,stemming launched theBirdIslandGreen HomesCompetition,thefirst materials, energyandspace.Which iswhyinJuly2007,theGroup environmental impactofbuildings, throughefficientuseof worldwide thankstoitsrole inminimisingthenegative The practiceofsustainablearchitecture hasgainedmomentum www.propertynetasia.com.my/newdevelopment/Centrio/home.html recognition for“BestResidentialDevelopment-HighRise”(see International RealEstateFederation(FIABCI)Award 2006in Our PantaiHillparkdevelopmenthascelebratedwinningthe ‘Organic’ architectural andLot10,KL design atStarhillGallery Sentul UrbanRevitalisation www.maple.com.my competition atSentulPark. Corp, atthelaunchof Deputy ManagingDirectorofYTL panel, andDato’Yeoh SeokKian, Corp andchairmanofthejudging Ping, ManagingDirectorofYTL Sri Dato’(Dr)FrancisYeoh Sock Green HomesCompetition,Tan judging panelfortheBirdIsland planner andthemoderatorof the project’s advisorandmaster Pimbley, PartneratSMCAlsop, (From lefttoright)Stephen and scheme alsosawan www.klpac.com . ). 23 YTL CORPORATION BERHAD Environmental Responsibility

“Seeking Zero” is the aim of the project, calling for designers and The ERL/CRS system is a modern electrical rail system, operating everyone to play their part for a more sustainable society through between Kuala Lumpur Sentral Station and Kuala Lumpur striving for zero energy emissions. While achieving zero energy International Airport. The trains’ operation and maintenance is emissions might seem impossible, the ambition is that society efficiently managed by ERLSB’s wholly owned subsidiary, ERL would make a conscious effort to consume less and be more Maintenance Support Sdn Bhd (E-MAS). E-MAS recognises the efficient with our environment’s limited resources. need to be as environmentally friendly as possible and as a company, is looking into a number of initiatives to improve the For the competition, the Group has partnered with Stephen environmental impact of their business activities. E-MAS is Pimbley, partner at SMC Alsop, one of the UK’s leading entrusted with the responsibility to provide environment-friendly international award-winning architectural practices, who will serve high speed rail services on a day-to-day basis to, and from, the as Master Planner & Project Advisor of the competition. The airport and city, besides ensuring that these services are safe, competition brings together eight of the world’s leading names in reliable and economical. architecture and environmental engineering, who are vying for the opportunity to design six eco-friendly homes on Bird Island, a The fleet therefore consists of twelve state of the art, high speed green haven located in the 35-acre Sentul Park, part of YTL Land’s trains which have no direct emissions of pollutants and have “built iconic urban renewal development in Sentul. The three-acre Bird in” energy savings by design. E-MAS acknowledges that Island site has been divided into six plots, each with a notional area environment friendliness does not end with the trains. There is an ranging from 385 to 516 sq.m., with each team submitting two Energy Saving Programme for trains that was implemented in designs for a three-bedroom villa, in accordance with designated 2003. Drivers were trained to operate the trains using energy requirements and criteria. saving techniques, which EMAS named the “MAKAN” principle:

Hailing from all over the globe, the participating architects, are • Make sure that trains are switched off during stabling Atelier Ten (UK), Grant Associates (UK), GRAFT (Germany), • As much driving as possible in coasting mode Innovarchi (Australia), KplusK Associates (Hong Kong), MAD • Know to brake early and with not more than 40% braking force (China), Plasma Studio (UK), and Zoka Zola (USA). • As much as possible using the electrical brake • No traction effort more than 80% Judging took place on September 2007 and the winning designs will be announced later on in the year. Visit www.birdisland.com.my With this programme, E-MAS was able to reduce the energy cost for more information on this unique sustainability project. per trip from RM65.59 in 2003 to RM62.11 in 2005, translating into a total saving of approximately RM300,000 for the year 2005. Express Rail Link In 2006, E-MAS’s target is to reach an energy cost per trip of RM67, despite the 12% increase of electricity cost in June 2006. E- MAS also launched a Building Facilities Energy Saving Programme, with targets to achieve savings of energy costs of RM100,000 per year by modifying the existing installations. The objective for this project was to reduce building facilities power supply consumption. The project had to be done at the most minimal modification cost without affecting daily operation standards. Results were therefore achieved by introducing the following steps:

• Reduce amount of lighting in an area with new lighting Source: www.railway-technology.com arrangements • Reduce time of operation – for lighting and air conditioning YTL Corp is a major shareholder of Express Rail Link Sdn Bhd system, controlled by timer. (ERLSB), a railway development company which was awarded a • Switching to energy saving lighting without affecting existing concession on 25 August 1997 to finance, design, construct, designed brightness. operate and maintain the KLIA Ekspres, KLIA Transit and other ancillary activities related to railway services. YTL CORPORATION BERHAD YTL CORPORATION

24 reported regularlytotheDepartmentofEnvironment. marine ecosystemsneartotheplants.Allofemissionlevels are ensure thatthedischargeswillcauseminimumdisturbanceto the discharged tothemarineenvironmentaremonitoredregularly to Similarly, thetemperatureandchemicalcompositionofliquids indication thattheplantisnotrunningatoptimumconditions. taken tocorrecttheproblems,sincethesechangesarealso an these contaminantsriseabovetheirnormallevels,thenstepsare monitored continuouslyusingautomatedequipment.Iflevelsof Emissions ofcarbondioxide(CO2)andnitrogenoxide(NOx)are sustainability ofmarinelifeintheseareas. the bodiesofwaterthatborderstations,therebyensuring tomaintaintheambienttemperatureof the technologynecessary At ourpowerstationsinPakaandPasirGudang,wehaveemployed Paka PowerPlantinTerengganu runbyYTLPower Power Generation NATURE CONSERVATION Visit importance. encourage andcontinuedialogueinthisgrowingareaof to efficiency issues,aswellideasonenergyconservation E-MAS alsodistributesane-newsletterhighlightingenergy www.kliaekspres.com for moreinformationanddetails. pied hornbills. crab-eating macaquemonkeys, tropicalmonitorlizardsandyellow the interestingwildlifethatcanbespottedonislandinclude rainforest thatisestimatedtobeover2millionyearsold.Some of guests andofferafascinatinginsightintothespectacular virgin trekking excursionsontheisland.Thewalksarefreeofcharge to Visit biodiversity, plantandwildlifefoundontheislandofPangkorLaut. Ecologist, Yip, haspublishedabookandseveralarticlesonthe wildlife andmarinelifewhichthrivesontheisland,ourSenior time toresearching thebiodiversityandecologyofrainforest, resident ecologistsonthese3resorts,passionatelydedicating their to experiencethismajesticenvironmentfirst-hand.Thereare Visitors to the islandareencouragedtoparticipateinguidedtours natural beauty, afactthathasneverbeenlosttoourplanners. ThedrawcardofPangkorLauthasalwaysbeenits preserved. natural habitatsandtheenvironmenthavebeenmeticulously millions ofyearsoldandisfaithfullyprotected.Onthisisland, The rainforestthatcoversmuchofPangkorLautResort’s islandis sustainabilityandwastedisposal. conservation, building materialsused,locationofthebuildings,forest environmental aspectsintothedesign,whichincludestypesof effortsandintegrates resorts contributetoconservation Serious effortshavebeenmadetoensurethedevelopmentof our PangkorLaut,Tanjong Jaraand CameronHighlandsresorts. been thekeytodesignofourhotelsandresorts,particularlyat thenaturalenvironmenthasalso The importanceofpreserving Malaysia Jungle trekkingandguidedrainforesttoursatPangkorLautResort, Hotel Development&Management www.pangkorlautresort.com/forest.htm for detailsofjungle 25 YTL CORPORATION BERHAD Environmental Responsibility

The Nature Conservancy The USD500,000 donation enables continuity of this work and identifies important forest habitats throughout the island of YTL has made a significant donation of USD500,000 to The Nature Borneo, including the four Indonesian provinces and Malaysian Conservancy (TNC), a leading conservation organisation working Sabah and Sarawak. to protect the most ecologically important lands and waters around the world for nature and people. Since its founding in Map of Indo-Malay region to be developed 1951, TNC has accomplished the following:

• Protected more than 117 million acres of land and 5,000 miles

of rivers worldwide - operating more than 100 marine INDO-MALAY WALLACEA conservation projects globally. • Has support of more than 1 million members. AUSTRAL-ASIA • Worked in all 50 US States and more than 30 countries - protecting habitats from grasslands to coral reefs from Australia to Alaska to Zambia. • Addressed threats to conservation involving climate change, fire, fresh water, forests, invasive species, and marine ecosystems. Source: The Nature Conservancy

TNC has also set an ambitious goal of ensuring the effective Allocation of Funding conservation of places that represent at least 10% of every Major Habitat Type on Earth by 2015. Project Activity Request (US$)

YTL Corp’s Managing Director, Tan Sri Dato’ (Dr) Francis Yeoh, is a 1. Establish and manage a Tropical long-time member and Trustee of this organisation, joining the Forest Center for Indo-Malaya likes of Henry M. Paulson, Jr. (the current US Treasury Secretary) and John P. Morgridge (the current Chairman of the Board at the Assessment of important forest habitat 150,000 Nature Conservancy and Chairman Emeritus at Cisco Systems, Inc.) (HCVF) island-wide throughout Borneo. to support work on forest protection and on coral reef conservation in South East Asia, primarily Indonesia. Conduct training programs that strengthen 150,000 partners, provide support to ongoing projects, TNC used these funds to combat illegal logging in Indonesia, in and create a supportive and enabling partnership with the government and industry, and local environment for on-site conservation in communities. This resulted in development of new tools for Indonesia and at sites throughout Indo-Malaya verification of legal and illegal timber based on bar-coding of logs, and tracking them from the forest through the production and Support for policy initiatives increasing acceptance 100,000 export processes. This pioneering effort, which had previously of Sustainable Forest Management in various never been tried anywhere else, became a success and is now countries throughout the Indo-Malaya region being adopted by companies across Indonesia. A series of major new projects are unfolding, using international foreign assistance Support for TNC site based initiatives in 100,000 and private funds to help the Indonesian government to roll the Borneo and Sulawesi system out nationally. Cooperation from Malaysia’s government was paramount in this effort to help stem the flow of illegal logs Total $500,000 moving from Indonesia to Sarawak and Sabah. Source: The Nature Conservancy YTL’s contribution is now being used to help establish a Tropical Forest Center to be developed in Borneo consisting of a small group of TNC staff expert in forestry, forest ecology, training and communications. YTL CORPORATION BERHAD YTL CORPORATION

26 More informationonTNCcanbeobtainedfromtheirwebsite: ecoregions oftheCoralTriangle areainSoutheastAsia. networks ofMarineProtectedAreas(MPA) withinpriority threats. TNC’s goalisthereforetoestablishandstrengthenresilient over-fishing anddestructivefishingbeingthemostpervasive 88% ofthesereefsareunderthreatfromhumanactivities,with area.TheWorldconservation Resources Instituteestimatedthat organisations (TNC,WWF, WRIandCI)asaglobalpriority identified bymajorinternationalbiodiversityconservation Triangle harborsthemostdiversereefsonEarthandhas been income, andusemoresustainablefishingtechniques.TheCoral fishing, withsupporttocommunitiesfindalternativesources of improved enforcement methodstocombatillegalanddestructive and testedtoolstomanysitesaroundtheregion,combining established inBaliandisnowthehubforexpansionofTNC’s tried projects atboth effortsandsustainability (USD100,000 each)tofundconservation In October2007,YTLdonated atotalsumofUSD200,000 www.nature.org www.coraltrianglecenter.org from strengthtostrength.TheCoralTriangle Center (CTC, TNC’s isalso continuingtogrow workoncoralreefconservation YTL’s CommitmenttoWWF-MalaysiaandRareConservation WWF-Malaysia . ) for marine conservation hasbeen ) formarineconservation and RareConservation. conference Nigel Sizeratthepress (Dr) FrancisYeoh SockPingand Sharma, RuthYeoh, Tan SriDato’ (From lefttoright)Dr. Dionysius Corp, atthegrantpresentation Min, ExecutiveDirectorofYTL Investments andDato’Yeoh Soo Yeoh, YTLCorpDirectorof CEO ofWWF-Malaysia,Ruth Sharma, ExecutiveDirector& Managing Director, Dr. Dionysius Yeoh SockPing,YTLCorp Pacific, Tan SriDato’(Dr)Francis Rare Vice PresidentforAsia- (From lefttoright)NigelSizer, Visit campaigns. other channels)integratedacrosstheproposedpartnerships and Malaysia usingbroadermassmediaapproaches(radio,localTV and shift broadperceptions in ofandenhancesupportforconservation forest clearingbylocalcommunities;and(3)inthelonger term, coastal habitatdegradation,destructivenearshorefishing, and three majorthreatstobiodiversityinMalaysia,i.e.mangroveand (2)achievemeasurablethreatreductionforatleast conservation; Rare Pride leadersinMalaysiausingsocialmarketingtoolsand conservation to Rarewillbeusedestablishacadreofeffectivelocal than onehundredlocalNGOsaroundtheworld.YTL’s contribution the Conservancy, World Wildlife Fund from toolkitisbeingusedbyeveryone conservation 2005, 2006and2007,Rare’s signature“Pride”program and Company outreach componenttotheirbroaderstrategy. Recognisedby groupsandcoalitionsthatneedastrong international conservation Indonesia/Malay), itspartnershipisoftensoughtbylarge a trainingprograminthreelanguages(includingBahasa natural resources. Because areas withthetoolsandmotivationtheyneedtocarefortheir globally toequippeopleintheworld’s mostthreatenednatural Rare Conservation highest incidencesofhuman-wildlifeconflict. poorest districtsinPeninsularMalaysiaandyetithasoneofthe Mitigation Model contribution willbeusedtodevelopa organisation.ItisanticipatedthatYTL’sthe globalconservation expertiseworldwideaspartofWWF,to leverageuponconservation protecting highlandforests,riversandseas.WWF-Malaysiaisable from savingendangeredspeciessuchastigersandturtles,to projects, WWF-Malaysia hasworkedonimportantconservation workinMalaysia.Since1972, protection andnatureconservation more than75projectscoveringadiverserangeofenvironmental WWF-Malaysia information ontheseorganisations. United NationsEnvironmentProgramme www.wwf.org.my magazine asoneofthe“Top 25SocialCapitalists”for to (1)measurablyenhancelocalsupportfor is a national conservation trustthatcurrentlyruns is anationalconservation in theJeliDistrictofKelantan.Thisisone , a US-based conservation organisation,works , aUS-basedconservation and Rare www.rareconservation.org , and offers asuiteofreplicabletoolsand Wildlife Society Conservation Human-Wildlife Conflict , Earthwatch , andmore The Nature for more Fast to 27 YTL CORPORATION BERHAD Environmental Responsibility

CLIMATE CHANGE YTL Corporation was also invited this year to be a participant at both the Asia Pacific Economic Cooperation (APEC) conferences in YTL, an advocate of environmental protection and promoting Sydney and Forbes Global CEO Conference 2007, where climate energy efficiency, have been consistently ‘Seeking Zero’ (carbon change and energy security were top of the agenda for both emissions) by working with partners who use clean technology, conferences. We have this year also participated in many educating employees, supporting R&D for clean technology, conferences to raise further climate change awareness in our investing in more efficient processes and systems while educating nation, having supported the British High Commission (Malaysia) the public through initiatives like Climate Change Week and the YTL in their Cutting Carbon to Increase Profits conference and The Star Bird Island Green Homes Competition. newspaper in their Green Every Day Festival held at the Forest Research Institute Malaysia (FRIM). For the latter event, YTL We recognise the impact of global warming and climate change on sponsored seed packets which were distributed to the thousands of our community, not just locally, but globally. We regard climate people who attended the event. change as a clear risk and have taken measures to reduce Green House Gas (GHG) and noxious emissions in all our activities, from We are also a main investor of The Asian Renewable Energy and our utilities and cement manufacturing plants to property and Environment Fund (AREEF), a vehicle that allows us to invest in and hotel operations. encourage companies that innovate in clean technology and the renewable energy sector. Furthermore, we understand that a company that adopts strategies to manage risks and opportunities associated with climate change The YTL Group is thus actively searching for innovative ways to in the face of uncertain regulations stands to realise significant encourage energy saving and to minimise the risk and glaringly gains. These gains come from a variety of factors including visible effects of climate change. We therefore anticipate our future regulatory compliance, risk mitigation, cost reduction, projects to integrate technology, policy and positive action to steer development of a competitive advantage, and the creation of new our company towards being not only clean and green, but also products and markets. The three governance practices the YTL secure, in trust for future generations. Group has adopted, and as outlined by Ceres1, include:

• Boards of directors and senior executives working together to Climate Change Week, 6 – 9 March 2007 address climate change and other sustainability issues • CEOs embracing climate change as a near-time priority • Management teams pursuing practical solutions to climate change

Our Managing Director, Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping attended the 2006 Clinton Global Initiative (CGI) in New York, an annual meeting where top leaders meet to focus on issues such as Energy and Climate Change. He was further invited by CNBC to discuss the effects, solutions and business of climate change, alongside a top panel of experts on their “Global Players” special, a follow up programme of the CGI. The panel included top academics and business personalities such as Jeffrey D. Sachs (Dean YTL Corp Managing Director Tan Sri Dato’ (Dr) Francis Yeoh; YTL Corp Group of the Earth Institute, Columbia University), Jim Hansen (Head of Executive Chairman Tan Sri Dato’ Seri (Dr) Yeoh Tiong Lay; and Ruth Yeoh, YTL Corp Director of Investments, at the official launch of Climate Change Week 2007 the Goddard Institute), Jeremy Leggett (CEO Solarcentury) and Fred Smith (President of the Competitive Enterprise Institute). Tan In March 2007, YTL Corp organised a Climate Change Week 2007 Sri Dato’ (Dr) Francis Yeoh was the only Asian businessman chosen aimed at bringing more focus to the critical issue of global warming. to represent Asian perspectives on climate change.

The Group sponsored free screenings of Al Gore’s Oscar-award 1Ceres (pronounced “series”) is a national network of investors, environmental organizations and other public interest groups working with companies and winning documentary An Inconvenient Truth, with over 5,000 free investors to address sustainability challenges such as global climate change. More tickets distributed to the public. Sign-up for the movies tickets information on http://www.ceres.org were so heavily oversubscribed that the Group decided to hold YTL CORPORATION BERHAD YTL CORPORATION four extra screenings to satisfy popular demand. 28 company’s effortsinsocialresponsibility andsustainability. also availabletodownload from thewebsite,recording and theenvironmentareupdated regularly. YTL’s CSR Reportsare information andupdatesonClimate ChangeWeek, climatechange The Movie of practices thatbenefitthebottomline,and educate onhowcompaniescanpursuesustainablebusiness Other eventsincludeda found on More informationonthisinauguralawareness-raisingeventcan be Yeoh, DirectorofInvestmentsatYTLCorp. Cut Carbon www.ytlcommunity.com/climatechange , Grow Profits The Conference one-day businessconference , co-editedbyDr. KennyTang andRuth The Book lblbo launch global book where news, designed to generation ofleaders(See“ role ingrowingandsafeguarding thepotentialofourfuture we havesetupaYTLScholarship Foundationwhichplaysastrong ultimately determinethefateof ourfuture.Itisforthisreasonthat establishments ininfluencingscholarsandstudentswhom will realises theimportanceofeducationandeducational importance ofclimatechangeanditsavailablesolutions. YTL educational sectortoopenupknowledgeofthegrowing worldwide, inaconsciousefforttocontributeresources tothe several nationalandinternationaluniversitiesinAsia and Post-Climate ChangeWeek, booksweredonatedtothelibrariesof level. business executivesatevery YTL, Siemens,BT, FordandErnst&Young, itisessentialreadingfor cutting-edge internationalcompaniesinavarietyofsectors,suchas brands intheprocess.Bringingtogether20casestudiestakenfrom engageemployees,andcreatepowerful products andservices, corporatereputations,developnewlow-carbon build powerful create sustainableshareholdervalue,cutcosts,increaserevenues, strategies ofcompanies,theircustomersandsuppliers,inorderto incorporating strategicaspectsofcarbonthinkingintothebusiness this report). international experts, contributed tothepostwordofbook.With contributionsfrom Corp’s ManagingDirector, Tan SriDato’(Dr)FrancisYeoh others.YTL among Cameron, andVirgin bossSirRichardBranson Leader, MargaretBeckett,UKConservative Foreign Secretary David Minister ofMalaysia,Dato’SeriAbdullahAhmadBadawi,UK The booknotablycontainsforewordsfromthehonourablePrime the MinisterofNaturalResources andtheEnvironment. sponsored byYTLCorpandofficiatedDato’SeriAzmiKhalid, Corp) washeldinconjunctionwith by Dr. KennyTang andRuthYeoh (DirectorofInvestmentsatYTL The globalbooklaunchofCutCarbon,GrowProfits,co-authored Global BookLaunchofCutCarbon,Grow Profits Cut Carbon,GrowProfits For TheNextGeneration Climate ChangeWeek 2007, Grow Profits’book the launchof‘CutCarbon, Tan SriDato’(Dr)FrancisYeoh at Tang, Dato’SeriAzmiKhalidand From left:RuthYeoh, DrKenny shows thebenefitsof ” onpage14of 29 YTL CORPORATION BERHAD Environmental Responsibility

Cut Carbon, Grow Profits Business Conference Power Generation & Transmission

In conjunction with Climate Change Week, a one-day Cut Carbon, YTL’s Paka Power Plant – a gas- fired power station - is one of Grow Profits business conference was held, designed for forward- three plants that generate some looking corporate leaders who want to seize the challenges and 2,500MW of electricity for the profit from the impending challenges of climate change and the state of Terengganu. transition to a Low-Carbon Economy.

Open to members of the public, the conference brought this subject alive through its presenters, comprising selected global experts who contributed to the book, including Tan Sri Dato’ (Dr) YTL Power obtained IS0 14001 Environmental Management Systems Francis Yeoh, Dr. Kenny Tang and Ruth Yeoh themselves. The (“EMS”) certification for its power stations in Paka and Pasir conference chairman in attendance was Sir Paul Judge of The Gudang in Malaysia in September 2007 and mechanisms are also Judge Business School, Cambridge University. Corporate speakers being implemented for the management of power plant gaseous included HBSC, EcoSecurities and Mitsubishi UFJ Securities Co. Ltd emissions, waste effluent, discharge cooling water and industrial among others, with support from leading conservation scheduled waste. organisations including The Nature Conservancy, the World Wide Fund for Nature (Malaysia) and Rare Conservation, to name a few. Recent modifications made to two of the Paka Power Station’s gas turbines have reduced the amount of nitric oxide and nitrogen dioxide (the combination of which is commonly referred to as The conference was oversubscribed but students of local NOx) in the gas turbines’ exhaust gases by around 50%. The same universities were charged a half-price admission fee and allocated modifications are also planned for the stations’ other gas turbines. seats despite the conference’s overwhelming popularity. Efforts have also been made to reduce the water consumption of the power stations by stopping blowdown on the heat-recovery Overall, the conference illustrated how businesses could create boilers and reducing and eliminating, where possible, leaking sustainable shareholder value, cut costs, increase revenues, build valves on water-stream systems. formidable corporate reputations, develop new low-carbon products and services, engage employees, and create powerful The Jawa Power station, which is operated by Jawa Timur, a wholly- brands, through incorporating strategic aspects of carbon thinking owned subsidiary of YTL Power, continues to seek ways to reduce into their business strategies and those of their customers and its carbon footprint. The station has a daily fuel consumption of suppliers as they begin their low carbon journey. approximately 12,000 tonnes of coal, which in turn generates about 400 tonnes of ash per day. The bulk of this is “fly ash” – YTL staff were also invited to a follow-up “Carbon 101” workshop smaller, lighter particles of ash that are separated from boiler in the same week conducted by Dr. Kenny Tang to offer practical exhaust gases in the electrostatic precipitators. With the solutions towards YTL’s vision of becoming a globally sustainable consistency of very fine power, fly ash has the potential to pollute company. the air and groundwater as it contains traces of salts and metals, and the conventional method used to dispose of fly ash is to Dr. Kenny Tang & Ruth Yeoh convert it into slurry and pump it into specially-built ash lagoons. with invited speakers at the Climate Change Week Cut In 2002, however, Jawa Power embarked on efforts to find a safer Carbon, Grow Profits Business and more environmentally-friendly use for the station’s fly ash, and Conference 2007. in 2003, the company began sending its fly ash to a nearby cement processing plant for testing. Fly ash reduces the cost of manufacturing concrete as it is only mixed with the cement in the final stages of production, making it an inexpensive replacement for cement used in concrete. In addition, fly ash actually improves the strength of the final product. After successful trials, the cement plant invested in additional facilities to enable it to use Jawa Power’s fly ash, resulting in the utilisation rate of Jawa increasing from only 26% in 2003 to 78% in 2006. YTL CORPORATION BERHAD YTL CORPORATION

30 Utilisemeetingby-productstobroaden localCommunity • Reducepollutionandwatergeneratedbygroup catering • waterandenergywhilestillprotectingthegroup Conserve • Orderingand Adjust hotelprocurementLocalServices • Reduceeventresource consumptionbyhotel andgroupclients • Minimisetheenvironmentalfootprintofeachhotel’s groupand • are to: layout, architecture orlocation.Theobjectivesofthesemeetings green meetingsinitiativethatisadoptableregardlessofhotelage, The Ritz-CarltonGreenMeeting’s visionistodevelopabrand-wide line withYTL’s seriouseffortsincreatingsustainableenvironments. managers toexchangeideason“greenoperations”whicharein- Lumpur, “GreenMeetings”areheldfrequentlywithsenior At bothourRitz-CarltonHotelandResidencesinKuala Hotel Development&Management Footprints outreach events experience luxury Provisioning Committees(LSOPs)toincludesustainabilitycriteria catered eventactivity Residences, KL The RitzCarlton& JW MarriottHotel average kWhofelectricityfromthenationalgridtobelower. technological advancementsenablingthecarboncontent of an dioxide emissionsarenowlowerthanin1990because of more. Wessex’sconsequently benefitedthewaterindustry carbon important tonotethattighterenvironmentalregulation has are closelymonitoredthroughenvironmentalregulation. Itis greenhouse gasemissions(mainlycarbondioxideandmethane) - environment, effluentreleasedintorivers,re-useofsludge and impacts -forexample,quantitiesofwatertakenfromthe the forefrontofWessex Water’s developments.Itsenvironmental Climate changeawarenessandcarbonmanagementhavebeenat • • Two broadissuesthatareconsideredare: Reducinggreenhousegasemissionsequivalenttoa60%cut • Steadilyincreasingtheproportiontakenfromrenewablesources • Anactiveprogrammetoensurethatenergyisusedefficiently • Mechanisms (actionformovingtowardssustainability) Beinginapositiontoadaptweathereventscausedbyclimate • Aimingforthecompany’s combinedactivitiestobecarbon • Outcomes (whatasustainableWessex Water wouldmean) is coveredby Climate changeisthebiggestlong-termissueforwaterutilitiesand Water &Sewerage Services extremely challenging. sizeable processemissionsmaketheaimofcarbonneutrality Reducing emissions standards expectedofwatercompanies. will makeithardertoachievethecustomerandenvironmental Adapting toclimatechange between 1997&2050. minimise consumption andstandards. change, withoutharminglevelsofservice neutral, andusingenergyasefficientlypossible. Wessex Water’s SustainabilityVision - watercompanies’heavyenergyuseand - moreturbulentweatherpatterns as follows: 31 YTL CORPORATION BERHAD Environmental Responsibility

Greenhouse Gas (GHG) Emissions This year, Wessex Water’s total level of greenhouse gas emissions National was the second lowest since detailed data collection began over 10 value 2005/06 years ago. This is as a result from the increased use of renewable energy.Emission calculations for this year were calculated using 143,959 updated conversion factors from Defra. 139,014 137,365 153,168 150,120 142,866 132,902 132,825 The water company is currently meeting its target path of reducing 142,310 140,662 emissions by 60% between 1990 and 2050. However, it will face

107,467 106,191 further challenges in the area of carbon management due to 98,279 increasing treatment standards requiring more energy intensive 88,828 85,867 methods.

Wessex Water’s energy consumption has climbed through increase of sewage treatment to meet environmental regulation. The 39,840 37,589 39,006 36,726 38,245 company’s carbon dioxide emissions, 95% of which came from consuming energy, has increased significantly in the last few years. The Royal Commission of Environmental Pollution published a 6,999 6,695 7,204 6,829 7,118 report in 2001 that lobbied for a 60% decrease in carbon dioxide emissions from energy use by 2050 to avoid escalating damage to the earth’s environment.

Emissions Forecast 0.0403 0.0395 0.0325 0.0311 Reduction of Emissions Carbon Dioxide Carbon & Methane 0.017 (tonnes) Dioxide Combined 0.00251 0.00268 0.00250 0.00258 tonnes per person 2002 2003 2004 2005 2006 What we emitted in 1997 101,108 168,224

What we would need to emit 40,423 67,312 in 2050 (60% less than 1997) Total GHG emissions (tonnes CO2 equivalent)

60% cut from 1990 – 2050 (as per Climate Change Bill) Annual reduction needed from 1,145 1,904 Energy (tonnes CO2) 1997 levels Methane (tonnes CO2 equivalent) Source: Wessex Water Website, ‘Climate Change and Carbon Management’ Transport (tonnes CO2)

Energy (tonnes/person CO2) Wessex Water’s energy use also increased by 35% - from 200m Transport (tonnes/person CO2) kWh to 270m kWh - between 1995 and 2005, mainly due the technologies required to meet tight water and effluent quality Source: Wessex Water Sustainability Indicators 2007 Report standards. YTL CORPORATION BERHAD YTL CORPORATION

32 .Transport 4. completely neutralisingtheseimpacts. activities. Inthelongterm,carbonoffsetsmightbeonlyway of practicable, giventhescaleofWessex Water’s sewageandsludge Reducing emissionsofmethaneandnitrousoxidetozero is not systems forestimatingnitrousoxideemissions. hasstartedtodevelop spreading sludgeonland.TheUKindustry drinking water),denitrificationwithinsewagetreatmentand These emissionsariseprincipallyfromozonation(usedtotreat Nitrous oxide emissions remainatleastdoublethatofthe1990level. virtually endingthelandfillingofsludge,butitisestimatedthatits Wessex Water hassignificantlyreduced methaneemissionsby (and thereforemoremethane)beingproduced.Inrecentyears, cleaner riversandcoastalwaters,butitalsomeantmoresludge Water regulationbrought aboutmoresewagetreatmentandthus Methane ProcessEmissions 3. Renewableenergy 2. Improvingefficiencyofwater&sewagetreatment 1. below: The currentoptionsforreducingthecompany’s impactaresetout vehicles andcarbonneutralfuels. fuels. Thisisdependentonboth theavailabilityofbothsuitable solution wouldbetohavethe entire fleetrunningonnon-fossil can bringaboutsomemileage reductions,theideallongterm energy use.Whilesmarterscheduling ofvehiclemovements produced isaboutonetwelfth ofthecarbondioxidefrom and tankers-mainlyrunsondiesel.Thecarbondioxide Wessex Water’s transportfleet– dominatedbyvans,pickups potent asgreenhousegasesthancarbondioxide. nitrous oxide.Theseare,respectively, 23and310timesmore The maingreenhousegasesprocessemissionsaremethaneand ultimately 100%. energy tocomefromrenewablesources by2020,and renewable sources by2005. Thenexttargetisfor50%of Wessex Water metitstargetfor20% ofenergytocomefrom become moreattractiveifenergypricescontinueupwards. is alreadyconsideredaleaderinthisactivity, furtherworkcould energy useishigherthanbenchmarklevels.Whilethecompany Wessex Water alreadymonitorssites toidentifythosewhose Hanjoong cement plantinNovember2006. certification wassubsequently officiallyawardedtoitsPerak- measures weresuccessfullyimplemented and quality, whilstensuringprotectionoftheenvironment. These culture withintheorganisation soastoreducecostsandimprove The Groupisstrivingtoinculcate acontinuousimprovement conducive workingenvironment. health andsafetythroughtheprovisionofacleaner more environmentally-friendly practicesandimprovingemployees’ corporate citizenbytakingaproactiveroleinadopting outtheGroup’sincluding carrying responsibilitiesasagood The • Environmental performance • Energy efficiency Safety&manpower productivity • London basedontheplant’s in: comparativeperformance by theIndependentCementProducersAssociation(ICPA) in Management System)Certificationsince2001andisrated Its PahangCementplanthasobtained sales anddistribution,logisticsready-mixedconcrete. operationstoclinkerandcementproduction, chain, fromquarry integrated operationsacrossthecompletemanufacturingvalue the largestready-mixconcretecompanyinMalaysia,withfully with acementproductioncapacityof6.1milliontonnesp.a.Itis YTL Cementisthesecond-largestcementcompanyinMalaysia A YTLCementPlant Cement &Construction calculator, apersonalcarbonbudgetandlifestylecoach. suchasacarbonfootprint FSFCoffersservices share foreveryone’. have signeduptotheprincipleof‘agloballyfairandsafecarbon supporters –individuals,businesses,organisationsandgroupswho Launched inMarch 2007,FSFChasalreadyattractedover400 are choosingtoliveandworkwithinafairshareofcarbon. Fair Shares,Choice To furtherencourageproactiveness,Wessex Water hassignedupto EMS programme (FSFC), agrowingmovementofpeoplewho is intendedtofulfillanumberofobjectives, ISO14001 MS ISO1400:2004 (Environment 4 Stars 33 YTL CORPORATION BERHAD Environmental Responsibility

At the Perak-Hanjoong plant, YTL Cement embarked on a number The 3R Project of Operations Improvement Projects with a view to increase production, improve product quality, and reduce costs. All of these Reduce – Minimise the usage resulting in a smaller amount of projects also improved the energy efficiency of the plant and waste, or using natural resources wisely through reduced CO2 emissions. The modernisation and improvement conservation projects completed at Perak-Hanjoong works include: Reuse – Use materials in their original form or pass them to others to use • Optimisation of the raw material sources and quality which Recycle – Reusable material can be remade into either the same improved the stability of kiln operation and increased annual product or new products rather than disposed. clinker production. • Modern high efficiency separators have been installed on the raw and coal mills, resulting in increased production, improved E-MAS has already initiated and embarked in some 3R projects as burnability and reduced electrical power consumption. highlighted below: • Static inlet grate installed on the PL2 clinker cooler improved the clinker quality and significantly reduced the fuel consumption of • Modification of station lighting control – Changing station the kiln. lighting control from a sensor-based to a timer-based one. • The clinker cooler and its ancillary equipment at PL1 line is being Timers are also set to turn off lights during non-operational replaced with a modern, efficient and low maintenance design. hours and plans have been made to switch to energy saving When the new cooler is commissioned before the end of 2007, lighting. the fuel consumption of the kiln will be significantly reduced, clinker quality optimized, maintenance costs reduced and the run • Optimising Building air-condition systems - Identified rooms factor increased resulting in higher annual clinker production. are fitted with fans and Air-Conditioning operations are limited.

The company has regional expansion plans and is currently • Train driving based on Energy Saving Profile (ESP) - Train evaluating investment opportunities in Singapore, China, Middle Drivers (OTDs) to drive train based on ESP driving profile. East & Indonesia. The acquisition of the Zhejiang Lin’an Jin Yuan Cement Co., Ltd. in China will further complement YTL Cement’s • Recycling of consumables - Train tickets, used papers, and existing core business activities and is in line with its expansion disposed items, are recycled. strategy. What is attractive in this investment is its potential to generate carbon credits and Certified Emissions Reductions From an environmental perspective, the emission of greenhouse (CERs). gases (GHGs) is a critical issue for all modes of transport. The following diagrams show a comparison of emissions between the REL/CRS system and a car over a distance of 60 kilometres, Express Rail Link approximately the distance between KL Sentral Station and the Kuala Lumpur International Airport (KLIA). It therefore makes sound This year, E-MAS has embarked on a “3R Project” jointly with common sense as well as environmental sense to take the trains to ERLSB to play a part in YTL Corp long-standing involvement and KLIA as they emit less carbon dioxide and are thus less polluting. commitment to environmental protection. It is designed to raise the level of environmental consciousness amongst the staff, as well as inspire everyone in joining the fight against global warming. YTL CORPORATION BERHAD YTL CORPORATION

34 Visit Source: IFFU1999,E-MAS Emissions ofCarbonDi-Oxidekg/person/trip The followingchartshowstheemissionsofcarbondi-oxide Source: IFFU1999,E-MAS g/person/trip Non-MethaneHydroCarbonOxides • • Sulphur Oxide • Nitrogen Oxide The followingchartshowstheemissionsfor: 0.04 www.kliaekspres.com ERL/CRS 1.4 1.7 19.8 Car 1.7 8.2 for moreinformation. 18.8 ERL/CRS Non-methane hydrocarbonoxide 20.0 Car Nitrogen oxide Suphur oxide they canbecomepotentialwatersources. riverinMalaysiatoGradeTwoto developevery level,whichmeans improve throughundertakingthischallenge.Theeventualgoalis can River), withthefaiththatriverandwatersuppliesservices therefore proposedarehabilitationoftheSungaiKlang(Klang bythecentralseweragesystem.YTLhas those areasnotserved programme wasdevelopedforupgradingtheexistingsystemin approved asfarback1974.Anenvironmentalsanitation sewage disposalinKualaLumpuranditsenvironswasdevised In recognisingthatproblem,amasterplanforsewerageand river stretch. equivalent toalmosthalfthetotalorganicloadmeasuredinthis weather conditions.Thisflowandtheassociatedcontaminationis up to50ML/dofcontaminatedeffluentsentertheriverindry the riverstretchJalanJelatektoMasjidJamekhasshownthat,daily, main problemfacedbytheCity. workcarriedoutbyYTLin Survey centralised sewagecollectionandtreatmentfacilitiesremainsthe Inadequate sanitationandsewagetreatmentbecauseofthelack waste generatedinthecountry. the Klangvalley. Itaccountsforabout26%ofthetotalorganic pollutants dischargedintheFederalTerritory ofKualaLumpurand erosion. Sewagecontinuestorepresentasignificantamountofthe industrial waste,aswellsolidrefuseandmaterialfromsoil sullage (waterfrombathsandsinks),septictankeffluent Federal Territory ofKLarisesfromdischargesdomesticwaste, comprehensive centralseweragesystem.Water pollutioninthe The FederalTerritory ofKualaLumpurcurrentlyhasno Proposed KlangRiverClean-up,KualaLumpur Future Projects 35 YTL CORPORATION BERHAD Be Part of The Solution

YTL believes everyone has a part to play in protecting our earth and the environment.

Want to do something to help stop global warming? Here are 10 simple things you can do and how much carbon dioxide you’ll save by doing them.

1. Change a light. Replacing six regular light bulbs with compact fluorescent light bulbs will save 400kg of carbon dioxide a year.

2. Drive less. Walk, bike, carpool or take public transport more often. You’ll save 1.5kg of carbon dioxide for every 5km you don’t drive!

3. Recycle more. You can save 1,000kg of carbon dioxide per year by recycling just half of your household waste.

4. Check your tyres. Keeping your tyres inflated properly can improve your car’s fuel efficiency. Every litre of petrol saved keeps 2.5kg of carbon dioxide out of the atmosphere!

5. Use less hot water. It takes a lot of energy to heat water - use less hot water by installing an energy efficient triple A rated showerhead (3 tonnes of carbon dioxide saved per year) and washing your clothes in cold or warm water (225kg saved per year).

6. Avoid products with a lot of packaging. You can save 545kg of carbon dioxide if you cut down your garbage by 10%.

7. Keep your car tuned up. Regular maintenance helps improve fuel efficiency and reduces emissions. When just 1% of car owners properly maintain their cars, nearly a billion pounds of carbon dioxide are kept out of the atmosphere.

8. Plant a tree. A single tree will absorb one tonne of carbon dioxide over its lifetime.

9. Turn off electronic devices. Simply turning off your television, DVD player, stereo, and computer when you’re not using them will save you thousands of kilograms of carbon dioxide a year.

10. Be a part of the solution. Learn more and get active at www.ytlcommunity.com/climatechange YTL CORPORATION BERHAD YTL CORPORATION

36 www.kliaekspres.com Express RailLink&OurBusiness www.propertynetasia.com.my/newdevelopment/Centrio/home.html www.lot10.com.my www.starhillgallery.com www.maple.com.my www.birdisland.com.my Sustainable Planning&Design www.electranet.com.au. Energy &OurBusiness www.wessexwater.co.uk/strikingthebalance2006 www.wessexwater.co.uk/sustainability Water &OurBusiness www.ytlcommunity.com/scholarship www.ytl.com.my/jobs.asp Education &theNextGeneration www.starhillgallery.com/muse.asp Supporting theArts www.ytlplatinumplus.com www.ytlcommunity.com Be PartofOurCommunity Find outMore Our Websites www.rareconservation.org www.wwf.org.my www.nature.org Our EnvironmentalistFriends www.ytlcommunity.com/climatechange Climate ChangeWeek www.pangkorlautresort.com/forest.html Jungle Trekking &OurResorts http://www.accaglobal.com ACCA MESRA2006Awards www.ytlcommunity.com/climatechange Our CSRReport2006 http://my-icrm.org http://www.iblf.org Our Memberships 37 YTL CORPORATION BERHAD Notes YTL CORPORATION BERHAD YTL CORPORATION

38 39 YTL CORPORATION BERHAD This page has been intentionally left blank.

YTL CORPORATION BERHAD 92647-H

the journey continues…

www.ytlcommunity.com

YTL CORPORATION BERHAD 92647-H

11th Floor Yeoh Tiong Lay Plaza 55 Jalan Bukit Bintang 55100 Kuala Lumpur Malaysia Tel • 603 2117 0088 603 2142 6633 Fax • 603 2141 2703

This report is printed on environmentally friendly paper. sustainability report 2007