Governance

Sustainability is guided at the highest levels of decision-making.

Sustainability is a cross-cutting across functions and business areas; hence our strategic direction is guided by the Board of Directors, with the Group Managing Director taking an executive role for effective and efficient implementation. This contributes towards positive sustainability performance year-on-year. Our strategic direction is driven via collaboration across Corporate Sustainability, Strategy, Risk, Procurement, Human Resources, Corporate Communications, Marketing & Sales, Development Services and Business Units across the company.

Board of directors

Ensures strategic alignment of economic, environmental, safety and health, social and governance with stakeholders’ expectations and business priorities towards long-term value creation. The Board Charter is available on the Company’s corporate website at www.simedarbyproperty.com/who-we-are/corporate-governance.

Policy instruments

The Sime Darby Property Group’s commitment to sustainability and safety start with policy, which guide and set boundaries for employees whilst outlining our position for our stakeholders. These policy instruments detail thematic and sub-thematic sustainability and quality, health, safety, security and the environment areas that anchor to our governance, strategies and targets informing our sustainability direction and have been updated as at 2021. These policies can be found below.

• Sustainability Policy
• Quality, Health, Safety, Security & the Environment (QHSSE) Policy
• Human Rights Policy

Materiality in our sustainability context

The very basis for devising and deploying sustainability strategies is materiality, which is all about focusing our efforts on areas that matter most to our stakeholders and where we can have a positive impact, in terms of prosperity, environmental well-being and social equity. These matters are then contextualised within the context of global relevant development frameworks such as the United Nations Sustainable Development Gaols (SDGs) 2030 and key risk to the company from Climate Change and other local, regional and global environmental issues (linked or not linked to Climate Change).

Click here for Materiality list.

Our sustainability tools

Over the years of embedding sustainability practices into the company, we have developed a range of engagement and tracking tools. Key amongst these tools are:

• Our Bespoke Township Sustainability Index called SUSDEX (based on a mix of elements from GRI and various green rating tools), which has been applied to all planning and active townships and developments annually since 2010. The key takeaway is that with SUSDEX we engage and regularly track the core parts of our businesses’ sustainability performance in line with how sustainability is defined across its three (3) key spheres - People, Planet and Prosperity.
• Carbon Footprint Program and Tracking, which has also been in practice since 2010 (the original component of our Integrated Eco-Efficiency Program). Specific this subject are further explained under our Carbon section in this website;
• Water and Waste tracking and optimisation engagement program (forming the second and third part of our Integrated Eco-Efficiency Program). This has been in place since 2016 with representative preliminary intensity baselines and reduction targets. In 2020, now with improved data quality and acculturation, we will be reviewing and likely restating the Water and Waste baselines. However, the long-term reduction target (as component of the Sime Darby Property 2030 Sustainability Goals) will remain at its revised 30% intensity reduction target (between 2020-2030); the same for carbon reduction and recycling increase. More elaboration is available at the Eco-Efficiency and Waste and Water pages.
• The Tree-2-Tree (T2T) Calculator that has been in place since 2011. This tool tracks our total trees planted, including IUCN Red List Trees. The T2T calculator came about as a tool to track the new Tree-2-Tree (or 1:1) Replacement Policy (adopted by senior leadership in 2011). However, we are moving past tree planting tracking and community tree planting engagement events to a broader holistic and integrated Biodiversity Program. Further explanation of this tool is contained under the Biodiversity section of our website’s Sustainability content.

SUSDEX overview

Version 1 was based on the Global Reporting Initiative (GRI) framework, developed to guide the best sustainable business practices. In late 2014, a fully revised framework was developed to include thematic elements from local and international green indexes and safety and crime management in addition to GRI material issues. This index is mapped to our value chain in the context of GRI 4.0 ISO, Green Building Index (GBI)Township Tool V1.01, LEED for Neighbourhood Development V4, Green Mark for Landed Houses V1.0 and Crime Prevention Through Environmental Design (CPTED) Guideline by Ministry of Housing, Malaysia. The Index has gone through further refinement, where we are now applying SUSDEX to 20+ townships and integrated developments. SUSDEX is not a replacement for Green Rating Tools; it is an internal annual assessment that measures and encourages incremental improvement in sustainability and carbon emission reduction practices. A dedicated version is also being piloted for Industrial and Logistics Development and will be applied from 2020 onwards. During the tool improvement process, two independent reviews were made by Forum for the Future and Universiti Sains Malaysia. These recommendations aided in improving the application of this tool, resulting in optimised township developments.

Rationale

• Align our business with SDG no. 11 - Sustainable cities and communities.
  
• A systematic engagement platform with Township teams, leading to a competitive environment where they aim to outperform each other in sustainability performance practices and the end products.
• Applying empirical, objective and evidence-based assessment based on 86 indicators in order to optimise resources. The focus is on ensuring a sensible balance by townships between delivering the pillars of People, Planet and Prosperity during the development process and within township developments.
• To aid in tracking the delivery of our 2030 Sustainability Goals.

Objective

To guide township teams to increase sustainability delivery and sustainable practices during the development process.

Reference to other source documents

• SUSDEX info deck - generic (pdf)

Key sustainability partners

SDG 17 promotes partnerships to deliver the SDG’s 2030. Sime Darby Property is a property developer, asset manager and hospitality and leisure operator. We pursue synergistic partnerships for the mutual benefits and delivery of the SDG’s. Below is a list of key sustainability-related partners who we are presently working with or have worked with.

• Yayasan Sime Darby (various)
• UNICEF Malaysia (inclusive playground project)
• Tropical Rainforest Conservation & Research Centre (TRCRC) (biodiversity)
• TNBX (residential PV)
• Islamic Relief Malaysia (B40 CSR)
• Kloth Malaysia Sdn Bhd & Lifeline Clothing Malaysia Sdn Bhd (fabric recycling)
• Biji Biji Malaysia (community recycling and upcycling)
• Kechara Soup Kitchen & The Lost Food Project (Edible Leftover Food to Charity Programme)
• Malaysian Mental Health Association (MMHA) and Mental Illness Awareness and Support Association (MIASA) (Great Minds Campaign)
• Volunteer hours by running with autistic children at Bandar Bukit Raja lake, with The National Autism Society of Malaysia (NASOM)
• Construction Research Institute of Malaysia, CIDB (CREAM) (Sime Darby Property D3 Sustainable Homes)
• Building Sector Energy Efficiency Project (BSEEP) (Incorporating energy-efficient design into residential products)
• KYS Education Group (KYS International School at the KL East integrated development)