Key highlights:

• Climate Strategy is based on the recommendations of the TCFD framework, and focuses on reducing Groupwide carbon emissions as well as enhancing climate resilience
• Reflecting the level of control over each emission Scope, IJM’s commitment to net zero by 2050 covers Scope 1, Scope 2 and Operational Scope 3 categories while the reduction of Embodied Scope 3 emissions is achieved through supplier engagements
• The Group’s climate risks and opportunities were tested against a range of scenarios - including IPCC, IEA and NGFS

Petaling Jaya, 11 April 2023 – IJM Corporation Berhad (“IJM” or “the Group”) today outlined its Climate Strategy that will employ a two-pronged approach, namely its transition to net zero and adaptation to climate resilience.

IJM’s Climate Strategy is informed by the underlying risks and opportunities brought on by anthropogenic climate change. Under all major IPCC pathways, global warming of 1.5°C above pre-industrial levels is likely to occur in the 2030s, thus compelling the Group’s climate action to include both mitigation and adaptation measures.

Groupwide commitment to net zero emissions by 2050

To realise its net zero ambitions by 2050, IJM’s carbon reduction strategy will focus on four key mitigation pillars across its own operations and its value chain, namely, energy optimisation, supply chain advocacy, industry engagement and product stewardship.

IJM will set its emissions reduction aspirations with reference to the Science Based Targets initiative (SBTi) criteria and recommendations for its Scope 1, Scope 2 and Operational Scope 3 emissions. To reduce the Embodied carbon from purchased goods, the Group aims to engage with at least 60% of its supply chain, by value, envisioning their adoption of emission reduction targets. While the Group’s ability to address the Embodied carbon from purchased goods is dependent on supply chain innovation and active partnerships, IJM recognises that this Category formed 84% of its FY2022 total emissions and is critical to achieving its net zero target.

Mr Lee Chun Fai, CEO and Managing Director of IJM, said, “We have carried out an extensive review of our carbon emissions over the last year and a half. IJM shares the global commitment to reducing our carbon footprint and supports Malaysia’s ambition to become a carbon neutral nation by 2050.”

IJM will set its baseline year to FY2023, which represents a more normalised year of operations, and will expand its assessment to include the emissions from its operations in India as well as three additional categories of Scope 3.

Enhancing climate resilience

As an official supporter of the Task Force for Climate-related Financial Disclosures (TCFD), IJM performed a physical and transition risk and opportunity assessment, covering its five main businesses of construction, property, industry, port and toll. The assessment was tested against a few global temperature scenarios between 1.5°C to 4°C by the IPCC, IEA and NGFS. The assessment revealed that increased frequency and severity of identified climate stressors could result in business disruptions and loss of revenue, while the global transition to a low carbon economy entails risks and opportunities from changing regulation, market, technology and reputational drivers.

As part of its adaptation strategy, IJM will adopt a number of measures, housed under three resilience pillars - climate risk integration into the organisational matrix, asset and business adaptation that includes the value chain, and TCFD alignment.   

Further details of the Group’s Climate Strategy will be elaborated in the upcoming FY2023 Sustainability Statement.

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About IJM Corporation Berhad

IJM Corporation Berhad (“IJM”), formed in 1983, today ranks as one of Malaysia’s leading conglomerates with an international footprint forged by its four core businesses: construction, property development, industry (quarrying and the manufacture of building materials) and infrastructure concessions. IJM holds leading positions across all its business divisions. Its growth is the direct result of strong leadership, dedicated employees, financial prudence and commitment to good governance and quality.

The Group presently has a market capitalisation of around RM6.0 billion and as of December 2022, the Group employed around 3,000 employees and had total assets of RM20.5 billion.

For more information, visit www.ijm.com

For media enquiries, please contact:

Ms. Mandy Chen, Corporate Communications, at mandychen@ijm.com or + 60 12 607 6121

Mr. Shane Guha Thakurta, Investor Relations, at shane@ijm.com or + 60 3 7985 8041