Sustainability Statement S P Setia Berhad 2019 Governance Sustainability Statement Financial Statements Shareholders’ Information SUSTAINABILITY STATEMENT ECONOMIC ENVIRONMENTAL SOCIAL This Sustainability Statement provides S P Setia Berhad’s stakeholders insights about our sustainability performance in a transparent and accountable manner. It covers our journey in sustainability management including stakeholder engagement initiatives and implementation of economy, environment, and social (“EES”) programmes which are crucial to our business sustainability. We live by our philosophy LiveLearnWorkPlay with everything that we do, we strive to strike a balance to ensure all of our stakeholders’ needs are being fulfilled. Reporting Period Since our first Sustainability Statement published in 2016, we have engaged external consultants to perform an This statement describes S P Setia Berhad’s sustainability annual gap analysis and identify any improvements required activities for the period from 1 January 2019 to 31 December based on the sustainability frameworks and standards. 2019. The sustainability objectives, strategies and action plans Reporting Scope established in the coming years would take into consideration S P Setia Berhad has considered key sustainability matters these global sustainability practices. This is further explained and standards in accordance with: in the “Moving Forward” section. Bursa Malaysia Sustainability Listing Requirements; and • Feedback Bursa Malaysia’s Sustainability Reporting Guide (2nd • Stakeholders’ feedback is important to us. We welcome edition). any feedback on this Statement and any aspect of our sustainability performance. Please address all feedback to We envisage to achieve the best in our sustainability our Management Risk Team at groupriskmanagement@ initiatives. As part of these efforts, we have initiated to spsetia.com. review our business processes and operations to consider the following key sustainability frameworks and standards that are globally adopted: • Global Reporting Initiative (“GRI”); • United Nations Sustainable Development Goals (“UNSDG”); and • Global Real Estate Sustainability Benchmark (“GRESB”). The information and figures in this statement refer to S P Setia Berhad and its active ongoing projects within Malaysia, Vietnam, Singapore and Australia, unless otherwise stated. The ‘RM’ sign used in this report refers to Ringgit Malaysia which is also the functional currency. INTEGRATED ANNUAL REPORT 121 Key Message Overview Key Highlights Management Discussion & Analysis Ensuring Integrity & Governance Governance Sustainability Statement Financial Statements Shareholders’ Information SUSTAINABILITY STATEMENT Our Sustainability Journey AT A GLANCE S P Setia Berhad manages sustainability matters through our established sustainability implementation roadmap as We initiated various programmes and initiatives to enable achievements of our sustainability objectives. Key highlights summarised below: of our achievements include: ECONOMY Establishment of Formalisation of Identification of sustainability objectives, governance structure stakeholders A total of policies and strategies RM 246.56million 26 awards Spent over a period of 3 years on providing various (2018 – 21 awards) received by S P Setia Group for its infrastructures in our projects including highway exemplary achievements in environmental and social connectivity, public transportations, health institutions sustainability Development of Conduct materiality Prioritisation of and schools sustainability indicators assessment sustainability matters and targets ENVIRONMENT We strive to allocate We recorded up to We planted more than 82 species 20,000 Formulation of 10% Green (2018 – n/a) of birds food and nectar plants and Monitor action plan sustainability action Track KPI and targets visiting the parks and propagated 1,000 plants for implementation status Areas plans in our projects lakes in some of our butterflies living in some of Eco-series projects our Eco-series projects In FY 2019, our emphasis was on strengthening the sustainability governance framework within S P Setia Berhad to We recorded up to We consumed a total of We used a total of ensure effective accountability, oversight and monitoring of the sustainability matters within the Company. The tasks involved include alignment of sustainability objectives with the business goals and strategy, establishment of sustainability 27 species 38.67 1.03 3 of fishes in million kW/h million m policies and procedures, formalisation of reporting structure, roles and responsibilities; and implementation of the (2018 – n/a) some of our Eco-series (2018 – 32.03 million (2018 – 0.89 million m3) sustainability programmes in a more structured approach. projects kW/h) of electricity in of water in our sales our sales galleries, site galleries, site offices and Our inclusivity extends beyond our clients and employees. Specific stakeholders relevant to different aspects of the offices and commercial commercial spaces Company’s business such as investors, regulators and the wider communities were engaged on a regular basis to ensure spaces business-as-usual without sacrificing their needs and requirements. SOCIAL We conducted a materiality assessment during the year and the Company’s top ten (10) material sustainability matters were identified enabling the sustainability management within S P Setia Berhad to be more focused and targeted. We achieved We provided S P Setia Berhad acknowledges that sustainability management is an on-going process and strive to continuously 43% enhance, review and update its sustainability practices within the Company. 0 74,937 female training hours major (2018 – 44%) employees (2018 – 73,770) to incidents are employed in develop and upskill our in our projects S P Setia Berhad people We held RM13.90 million disbursed in our S P Setia Foundation 127 community since 2014 for the #StandTogether programmes campaign and Setia Caring School (2018 – n/a) for buyers of our projects and Programme the general public 122 S P SETIA BERHAD 2019 INTEGRATED ANNUAL REPORT 123 Key Message Overview Key Highlights Management Discussion & Analysis Ensuring Integrity & Governance Governance Sustainability Statement Financial Statements Shareholders’ Information SUSTAINABILITY STATEMENT GOALS AND PROGRESS Sustainability Framework As part of our sustainability improvement programmes, we identified and aligned the following sustainability principles, S P SETIA BERHAD SUSTAINABILITY FRAMEWORK strategies, activities and key performance indicators to measure our achievement. Sustainability Agenda Economy Our Stakeholders Sustainability Key Business Processes Strategies/Activities Performance indicators Products and Services principle Governance Economic Growth and Benefits Anticipate and Integrate • Accessible developments – infrastructure • Customer satisfaction survey > 80/100 respond to the sustainability Startegic Planning Procurement change in accessibility such as roads and public • More than 10% of developments allocated goals into transportation access to green spaces and amenities Business Shareholders & RISKS AND OPPORTUNITIES Policies and Procedures Creating Environment Environment Investors business communities • Green leisure developments such as parks • No. of award recognitions and certifications Contractors & process Regulatory Compliance and gardens Climate Change Suppliers • Excellent features, amenities and facilities Biodiversity Reporting and Monitoring Media Employees Energy and Water Assurance and Verification Environmental- • Introduce pioneering green and sustainable • No. of award recognitions and certifications Customers Budget and Finanical Planning friendly projects • No. of birds, vegetation and other species Social RISKS AND OPPORTUNITIES Community and people consideration development • Ethics and Integrity Risk Management Human Capital Business Banks & Local Local Government Providing safe and • Zero major incidents • Zero major incident Partners Analyst Community Authorities & Regulators Brand Management conducive working • Conducive working environment • Low employee turnover Community Engagement & NGOs Talent Management environment Health and Safety RISKS AND OPPORTUNITIES Security Digital Transformation • Develop talents with high ethics and integrity • Employee survey on happiness rating Retaining talent • Employee performance and retention >80/100 • No. of training hours Strengthening sustainability practices through continuous learning and improvement • Close working relationship with suppliers, • Contractors’ quality excellence >75% Delivering quality vendors and business associates • Customer satisfaction survey >80/100 products • Customer satisfaction – low defects claim A sustainability framework was developed to govern sustainability management within the Company. The sustainability framework encompasses three (3) pillars i.e. Sustainability Agenda, Our Stakeholders and Key Business Processes. S P Setia Berhad recognises that sustainability management is a continuous process and strive to refine its goals and Relevant sustainability matters are identified and categorised under the broad categories of economic, environment and performance indicators as we go along this journey. The enhancements in the sustainability process are highlighted in social. The sustainability agenda for each of the broad categories are determined as follows: the “Moving Forward” section. Economy: We emphasise on economic performance in every value