###### INSTITUTIONALISING SUSTAINABILITY
THROUGH GOOD GOVERNANCE
We regard good governance as a critical
catalyst for generating positive impacts.
In this context, over the past year, we
have concentrated on reinforcing our
foundational practices, particularly
within the realm of sustainability
governance. A key development was the
establishment of the Board Sustainability
Committee ("BSC"), tasked with steering
our sustainability initiatives. This ensures
strong sustainability integration into our
operations, with the BSC collaborating
closely with the leadership team for more
effective decision-making and risk
management.
Our governance model, a collaborative
effort between the board and
management, is dedicated to setting and
attaining sustainability objectives. This
collaborative framework entails
incorporating sustainability into our
strategic planning, risk management and
communication with stakeholders. A
designated member of senior
management is tasked with ensuring the
seamless integration of sustainability
practices into our day-to-day operations.
Furthermore, with the introduction of our
new executive leadership, we have
streamlined our strategies and
operational practices to foster
sustainable growth and leverage
opportunities amidst market challenges.
Our initiatives focus on enhancing our
capacity to achieve Net Zero targets,
uncovering value in our development
projects and elevating construction
safety standards—all pivotal steps toward
future sustainability achievements. [...] ###### Governance Structure
SUSTAINABILITY GOVERNANCE
Governance Structure
The Board Sustainability Committee, established in 2023, was tasked to champion our sustainability strategy, ensuring alignment
with market trends and addressing the diverse needs of our sector. The BSC works closely with management across all business
areas, embedding sustainability into the heart of our decision-making processes, risk management and daily operations.
###### Sustainability Governance Structure
**01**
Board of
Management Board Sustainability
Directors
Committee Committee
**02**
Management
Business Functional
Sustainability
Units Units
Committee
**04** **04** **03**
Project-level Function ESG Sustainability
ESG Champions Champions Unit
**Figure 2.1:** Sime Darby Property Sustainability Governance Structure
###### Roles & Responsibilities
###### Oversight and Guidance
###### Implementation and Integration
**Board Sustainability Committee ("BSC"):**
- Provides strategic direction and oversees the Group's
overall ESG framework.
- Composed of diverse sustainability experts who assess
the effectiveness of sustainability programmes and
initiatives.
- Tasked with engaging in strategic discussions about
sustainability assurance indicators with a third-party
service provider.
**Management Sustainability Committee ("MSC"):**
- Senior leaders responsible for implementing ESG
initiatives across the Group.
- Ensures alignment of our initiatives with material
matters.
**Sustainability Department:**
- Develops and implements the Group's ESG strategy
across all organisational levels.
- Creates standardised practices through ESG guidelines,
frameworks and toolkits.
- Monitors progress and alignment of ESG initiatives
through a Project Management Office ("PMO") function.
**ESG Champions:**
- Embedded within specific business segments and
functions.
- Champion the practical application of the ESG strategy
in daily operations.
- Integrate ESG considerations into decision-making and
everyday activities.
- Oversee alignment with Group's ESG objectives and
facilitate project completion.