IJM is one of Malaysia’s leading conglomerates with business interests in construction, property development, manufacturing and quarrying, infrastructure concessions and plantations. With a growing footprint spanning 10 countries, the standards for good corporate conduct are guided by the IJM Group Charter. It defines the standards in corporate citizenship for which sustainability and shared value creation is built into their operations.
Of particular significance to sustainability is the effort by its Industry Division to reduce carbon emissions in the production of piles in 10 of its factories spread across Peninsular Malaysia. What initially started as a cost reduction effort in FY2008 quickly turned into a sustainability effort when the company began to report its greenhouse gas (GHG) emissions in line with the recommendations of Intergovernmental Panel on Climate Change (IPCC).
Under the GHG Protocol, emissions are categorised into Scope 1 – direct CO2 emissions that are emitted from sources owned or controlled by IJM’s Industry Division; Scope 2 – indirect CO2 emissions that are consumed by the Industry Division such as purchased electricity; and Scope 3 – other CO2 emissions related activities not owned or controlled by the Industry Division such as cement or other raw materials. Cumulatively, the Industry Division saw a reduction of 224,000 tonnes of GHG emissions since FY2008 to date derived from Scope 1, 2 and 3 activities.
Significant reduction in GHG levels in three of their factories were realised in FY2009 immediately following the use of Polycarboxylic Ether (PCE) additives. PCE additives act as chemical agents that replaces the need for autoclaves which consume large amount of energy. On seeing the efficacy of PCE in contributing to the reduction in energy consumption, all other factories then adopted the use of PCE additives in 2012.
Since FY2009, GHG reduction has come largely from Scope 1 at 69% and Scope 3 at 30%. In an effort to further reduce GHG emission in Scope 2, rooftop solar PV systems were installed in two of the factories in 2016 yielding a reduction of 507 tonnes of CO2 savings. In FY2018, the Industry Division expanded this effort in three other factories which avoided the emission of about 1,575 tonnes of CO2.
Moving forward, IJM will continue its aspiration to deliver sustainable value and improvements to society by aligning itself to other efforts in meeting the Sustainable Development Goals 2030.
9 Industry, Innovation, and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
13 Climate Action
Take urgent action to combat climate change and its impacts