YTL CORPORATION BERHAD 92647-H
11th FloorYeoh Tiong Lay Plaza55 Jalan Bukit Bintang55100 Kuala LumpurMalaysiaTel 603 2117 0088 603 2142 6633Fax 603 2141 2703
the journey continues...
sustainability report 2012
Table of Contents
Managing Directors Review 02Our Approach to Reporting 06
About YTL Corporation Berhad 07Our Approach to Sustainability 14
Governance 17Stakeholder Engagement 18
Commitments to External Initiatives 20Embracing Responsible Business Practices 25
Protection of the Environment 32 Climate Change 37
Energy Efficiency and Conservation 40 Investment in Renewable Energy 43
Water Efficiency 46 Materials Used 49
Waste Management 51 Biodiversity 54
Conservation in Partnership 58Empowering Our People 64
Empowering Our Communities 76 Promotion of Arts and Culture 79
Supporting Education Initiatives 83 Supporting Community Initiatives 96
Find Out More 102Be Part of the Solution 104
Sustainability Report 2012 the journey continues...
At YTL, sustainable practices and taking a responsible approach to all facets of our business is at the heart of the Groups strategy. As a global infrastructure conglomerate, mitigating impacts on society and the environment continue to be a priority.
The challenges of the 21st century have been intensified by the contagion from the global financial crisis of 2008 manifesting itself in a severe and prolonged European debt crisis. Persistent competition for fuel, raw materials, food, and the control of supply chains across the world also marches on unabated. Furthermore, the income gap between the rich and poor continues to widen as a climate catastrophe looms on the horizon. Providing sustainable energy, shelter, health and sanitation, food and water to more than seven billion people living on the planet is putting extreme stress on the earths resources. This has resulted in global CO2 emissions increasing by 1.0 gigatonne in 2011 to a record high1, fast depleting natural resources, extreme weather conditions globally and the alarming rate of biodiversity loss, especially in the Asia-Pacific region.
However, whilst growth and development places a myriad of strains on the earths resources, industrial development continues to lift many people out of poverty with the advancement of digital technology changing lives across the globe. Awareness, education and communication have been enhanced by constantly improving connectivity and we have borne witness to events made possible partly by mobile communications and social media, particularly in North Africa and the Middle East, resulting in fundamental shifts in ideology, changing political landscapes and institutional change. With connectivity, the people empowered with the tools now have a strong voice. Stakeholders can easily rebel against a system where there is improper or unjust treatment.
TAN SRI DATO (DR) FRANCIS YEOH SOCk PINGPSM, FICE, CBE, SIMP, DPMS, DPMP, JMN, JP
1 International Energy Agency, press release dated 24 May 2012
YTL Corporation Berhadthe journey cont inues. . .
2 ~ Sustainability Report 2012
Managing Director's Review
In light of these fundamental changes across the globe, as the YTL Group diversifies its business interests and invests in new markets and regions, its responsibilities and obligations will continue to increase. Growing sustainably is one of the biggest challenges facing multinationals and utility companies around the world, and we have to address the balance between voluntary initiatives and those regulated by governments. The YTL Group continues to positively engage with stakeholders and work with them in a balanced manner in order to reach constructive and mutually acceptable outcomes. The values that underpin our approach to creating these outcomes are our philosophy and understanding which we feel will grow from the mastering of three key languages those of God, Man and Machine in that order. Nurturing and restoring human and natural capital is the key to unlocking the nascent value sometimes hidden from our view.
We believe sustainability is integral to the long-term success of the Group, and we can only achieve true profitability in economies which also sustainably provide for the communities and stakeholders that support the business interests of the Group. As such, in order that genuine sustainability is realised throughout the Group, it has to be truly integrated into the overall strategy. From my letter to stakeholders in the 2007 Sustainability Report, I spoke of the moral and ethical drivers in our approach to social inclusion and environmental protection. More importantly, I also wrote about the importance of advocacy. It is in these areas that we continue to focus and intensify our efforts to spread good practices and break down barriers through allowing access to clean technology and sustainable practices to our people, the community, supply chains, infrastructure and our peers so that these become industry standards. These are some of our measures of success. The currency of the future should be one centred on Trust as the trend towards sustainability has continued even in the wake of the global business and economic crisis. Trust is the most precious currency today and indeed a priceless commodity! There is now more than ever an unprecedented opportunity to start building on sustainable practices.
Internally, the YTL Group Sustainability Committee (YTL GSC), of which I am Chairman, has brought together some of our key people and stakeholders to identify key material issues, map the way forward and work towards a
common mission and to jointly agree on our sustainability strategy. The YTL GSC essentially formulates, guides and overseas policy adherence and sets respective targets throughout the Group with a focus on safety, asset integrity, the environment, social performance and ethical conduct. We have made inclusivity and accountability part of our core values. In terms of transparency and reporting, we continue to strengthen our approach to sustainability reporting since our first Corporate Social Responsibility Report in 2006, and have developed a Roadmap to comply with certain global reporting standards in the near future, including those governing sustainability reporting and carbon disclosure.
The key material issues are as diverse as our business interests. While our code of ethics, compliance, philosophy, stakeholder engagement and risk management overlay the entire Group, there are specific challenges and issues affecting the different business units.
The global stresses on limited resources have resulted in renewed efforts to optimise the use of fuels in our power generation business and to focus on the upgrading of our facilities with higher levels of thermal efficiency. We have continued to invest in technologies and in the retrofitting of our power plants in Singapore, Malaysia and Indonesia in order to achieve lower carbon intensity. Similarly, for our water utilities business in the UK, Wessex Water, the ongoing initiatives in treatment, supply, and renewable energy have resulted in breakthroughs and innovations in biogas production and utilisation (through Wessex Waters subsidiary, GENeco Limited), including increased support for conservation and environmental protection.
The cyclical nature of the construction and infrastructure industries and the volatile prices of raw materials such as coal provide challenges for the cement businesses in Malaysia, China and around the region. Nevertheless, we have continued to invest significant funds to optimise manufacturing efficiency, build storage and feeder systems for alternative fuels and waste aggregates, and for research and development into less carbon intensive blended cements. At the same time we also need to anticipate the changing needs of our customers, suppliers and staff in order to continue growing a sustainable cement business.
YTL Corporation Berhad
Over a decade ago, YTL began innovating ways to use clean technology as well as exploring renewable energy sources. We have seen first-hand how sustainability programmes and policies have reaped outstanding results. Our strategy is two-fold. Firstly, we have monitoring systems in place to measure and track energy usage, and secondly, we arepursuing and steadily increasing renewable energy usage. This strategy applies to all our businesses within our Group.
The uncertainty in the carbon credit space, specifically under the Clean Development Mechanism (CDM) which was formed as part of the Kyoto Protocol has not deterred us from expanding and investing in our in-house carbon consulting company, YTL-SV Carbon Sdn Bhd, where I am Chairman. Even as nations struggle to agree on mutually acceptable targets for emission cuts, we see the need for larger companies to measure, manage and report greenhouse gas (GHG) inventory as an activity that may soon be mandatory in many countries. We have maintained our pole position as the largest CDM consulting company in Malaysia and are now the fourth largest in ASEAN.
Our commitment to the carbon consulting business will continue due to the ability of this division to connect technology providers and buyers with developers and investors in carbon mitigation projects. Having made strong strides in the areas of energy efficiency and renewable energy, it was a logical step for us to get involved in the CDM business.
Advocacy takes on many forms. As we continu