Climate–Related Risks and Opportunities

Gamuda recognises that environmental, social and governance (ESG) topics present both risks (if they are not properly managed) as well as opportunities. We have therefore incorporated our ESG risks into our corporate risk register, and continuously monitor the related risks while leveraging various opportunities to create greater value for our stakeholders. This is reflected in our ESG Framework – “Build Right. For Life.” – and the Gamuda Green Plan 2025.

CLIMATE-RELATED TRANSITION RISKS
As part of its commitment to Gamuda Green Plan 2025, the Group has prioritised decarbonisation as a key performance indicator, with active efforts to install solar panels and EV charging stations across our properties. The Group owns RM1,749 million in property and investment properties, of which RM1,342 million (77%) are equipped with renewable energy sources, such as solar panels, and green facilities, including EV charging stations. This leaves RM407 million (23%) of the Group’s buildings and investment properties that have yet to be fully equipped with renewable energy sources and green facilities.

Moving forward, the Group will continue to assess the feasibility of installing renewable energy sources in the remaining group-owned properties. In line with the Gamuda Green Plan, the Group aims to retrofit buildings with solar solutions, enhance overall energy efficiency, adopt green construction technologies, and explore carbon offset mechanisms. Through these ongoing efforts, the Group is strengthening its commitment to sustainability, enhancing asset value, and building resilience against climate-related risks.
CLIMATE-RELATED PHYSICAL RISKS
Gamuda has consistently conducted comprehensive risk assessments and integrated climate resilience measures into project designs to safeguard its operations. Among the climate-related physical risks assessed, the most relevant to current local operations is the risk of flooding, particularly for projects located in low-lying areas. Potential impacts include operational disruptions and elevated maintenance costs. Currently, approximately RM6.7 million of plant and equipment is situated at sites identified as prone to flooding.

To address these risks, the Group is committed to ongoing innovation and value engineering in design, aiming to reduce vulnerabilities and enhance adaptive capacity. The Group actively monitors climate-related risks, embedding resilience considerations into its long-term strategic planning and risk management processes to ensure alignment with both environmental and business sustainability goals.
CLIMATE-RELATED OPPORTUNITIES
The Group has been actively exploring climate-related opportunities to enhance its portfolio of sustainable assets. In 2021, the Group entered the solar infrastructure sector through acquiring a stake in ERS, with one of the partnership’s projects, the Neda Pekan Project, projected to generate an average yearly revenue of RM7.7 million over the next 20 years, beginning in FY2025. Additionally, Gamuda has entered into a joint venture to develop the 187.5 MW Ulu Padas Hydroelectric Project in Tenom, Sabah and to propose a floating solar solution to integrate with the project for Sabah Energy Corporation Sdn Bhd. This RM3.0 billion initiative is expected to contribute significantly to the national grid and support sustainable energy generation in Sabah.

In Australia, through its subsidiary DT Infrastructure, the Group secured a contract to construct the Boulder Creek Wind Farm project, valued at AUD243 million (approximately RM702 million). This project will bolster Queensland’s efforts to reach its electricity generation target of 50 percent overall supply from renewables by 2030. Through these strategic projects, Gamuda continues to position itself at the forefront of climate-resilient infrastructure, aligning with global efforts for a sustainable future.
CAPITAL DEPLOYMENT
Gamuda has invested a total of RM8 million in green infrastructure, including solar panels and EV charging facilities in Malaysia. This investment includes RM1.6 million for installations at Menara Gamuda and RM0.8 million for enhancements at the Next Generation IBS in Banting. Additionally, we have allocated RM5.6 million for similar installations across our property portfolio in various townships. To further support its sustainability goals, Gamuda has invested approximately RM0.7 million since 2021 in training and development related to sustainable construction practices. These efforts demonstrate Gamuda’s commitment to transitioning to greener energy solutions.
REMUNERATION
The Board of Directors oversees the setting and monitoring of climate-related targets. They ensure that executives are accountable for delivering on the company’s climate strategy and the Chief ESG Officer oversees the implementation of these targets.

In the current reporting period, 20 percent of executive management remuneration is linked to sustainability-related performance, including climate metrics such as carbon footprint reduction, project sustainability certifications, and successful implementation of climate-resilient infrastructure.