IJM announces climate strategy using a two-pronged approach

• Commits to achieving net-zero carbon emissions by 2050
• Adopts three resilience pillars to enhance climate resilience

Malaysian conglomerate, IJM Corporation Bhd has outlined a two-pronged approach – transitioning to net-zero, and resilience to climate change – as part of the group's Climate Strategy. Based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, the strategy employs both mitigation and adaptation measures to address carbon emissions and climate adaptation.

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 revealed in its press statement that embodied carbon from purchased goods formed 84% of its FY2022 total emissions, thus requiring innovations in supply chains and active engagement with its partners. IJM will focus on four key mitigation pillars to achieve this, namely, energy optimisation, supply chain advocacy, industry engagement and product stewardship. The group aims to engage with at least 60% of its supply chain, by value, to achieve its emission reduction targets.

On the climate resilience front, IJM performed a physical and transition risk and opportunity assessment, covering its five main businesses of construction, property, industry, port and toll.

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.

IJM will adopt several 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 to inform its adaptation strategy.

The physical and transition risk and opportunity assessment was tested against a range of temperature scenarios between 1.5°C to 4°C as determined by the Intergovernmental Panel on Climate Change (IPCC), International Energy Agency, and the Network for Greening the Financial System.

IJM will set its baseline year to FY2023 to represent a more normalised year of operation, with more details on its Climate Strategy to be elaborated in its upcoming FY2023 Sustainability Report.