YTL | Climate Action Pledge Report
Our business is fundamentally rooted in environmental, social, and governance (ESG) principles, shaping the way we operate. Our approach to climate issues is seamlessly woven into our business strategy, aligning with our four core sustainability pillars: Environment, Workplace, Community, and Marketplace. We understand the need to not only drive profitable growth but also to stay relevant in our industries. Consequently, our journey involves actively advancing initiatives that address interconnected priorities, including the shift to a low-carbon economy, a circular economy and the creation of resilient communities.
In our ongoing journey toward achieving carbon neutrality for YTL Group by 2050, we remain acutely aware of the multifaceted climate-related risks that could potentially impact our operations. Theserisks span a wide spectrum, encompassing everything from extreme weather events to regulatory shifts and market dynamics. By strategically managing climate risks, YTL Group not only safeguards its operations, but also seizes opportunities to innovate, adapt and contribute to a sustainable future, underscoring our commitment to environmental stewardship and long-term success through just and orderly transition. Below is our transition roadmap to carbon neutral in operations by 2050. Our strategy focuses on three key areas detailed below: carbon reduction, carbon substitution as well as carbon removal and compensation with various short, medium and long-term plans.
The ultimate component that complements the assessment and control of emissions within our operations and supply chains is the YTL Group’s decarbonisation aspirations, objectives and strategies. We reiterate our dedication to attaining net-zero operational emissions for Wessex Water by 2030 and total net-zero by 2040. Similarly, YTL PowerSeraya has established a target of reducing emissions by 60% compared to 2010 levels by 2030, with an ultimate aim of achieving net-zero by 2050. Additionally, Malayan Cement Berhad (MCB) strives to attain carbon neutrality by 2050.
To align with our group goal of achieving carbon neutrality by 2050, YTL Group has executed various initiatives across our business divisions to reduce our carbon footprint. Our subsidiaries in Singapore and the UK have been incorporating solar photovoltaic (PV) panels at their respective locations and a hydrogen-ready CCGT power plant is currently in development at Singapore. Our Cement division is actively pursuing clean energy alternatives such as waste-heat recovery and initiated discussions with
the relevant authorities to secure approval for investing in solar PV farms. Exploration of decarbonisation technologies are also being done by YTL Cement and YTL Power International secured a green loan for the green data center development.
On 23 October 2023, YTL PowerSeraya announced that it would invest more than SGD5 million to expand the amount of solar power generated at its Pulau Seraya Power Station to 5 megawatt-peak (MWp), up from the existing 1 MWp. The increased capacity, which can produce a monthly average of 417 MWh under optimal conditions, will be able to support more than 1,000 four-room Housing and Development Board (HDB) flats.
In January 2024, YTL PowerSeraya won the first request-for-proposal under the Energy Market Authority (EMA)’s new Centralised Process framework to develop a 600 MW hydrogen-ready combined cycle gas turbine (CCGT) power plant at its Pulau Seraya Power Station site. The hydrogen ready CCGT will be at least 30% volume hydrogen-ready, with the ability to be retrofitted to become operationally 100% hydrogen-ready in the future, aiding in emissions reduction. YTL PowerSeraya is also actively exploring low-carbon hydrogen prototyping and conducting feasibility studies in collaboration with research institutions and key hydrogen partners. The project will complement and diversify Singapore’s power mix alongside solar, imported electricity and other potential low-carbon energy sources. The hydrogen-ready CCGT is also set to make a substantial impact to support Singapore’s generation capacity to meet the growing electricity demand.
Following assessments conducted in 2023, MCB will be investing in a second waste heat recovery (WHR) plant at one of their cement plants. The WHR plant is expected to be commissioned in the third quarter of 2025. This will further increase the company’s clean energy generation capacity and reduce Scope 2 emissions. MCB is actively pursuing clean energy alternatives. The company will continue their initiatives to engage the relevant authorities to secure approval for investing in solar photovoltaic (PV) farms, which will enable the company to generate renewable power for their cement plants.
YTL Power International has secured a MYR1.1 billion Islamic term financing facility for Phase 1 of the 500 MW YTL Green Data Center Park in Kulai, Johor, with a commitment to secure Gold Leadership in Energy and Environmental Design (LEED) certification in compliance with Green Loan Principles published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association. Co-powered by on-site solar photovoltaic power, the YTL Green Data Center Park aims to provide data storage colocation services to clients looking for more sustainable and lower carbon solutions within Southeast Asia and serves as the foundation for achieving YTLPI’s greater objective of carbon neutrality for its data centres across the region.
Following the launching of YTL Cement’s ECO product range that reduce the environmental footprint of construction activity while upholding rigorous standards for durability, function and safety last year, the company continues to explore and assess emerging decarbonisation technologies and new developments in existing production technology. One of the two technologies that YTL Cement is exploring is decarbonisation through concrete early-age carbonation. Early-age carbonation for concrete curing has gained increasing attention as a potential lever for climate mitigation. Exposure of fresh concrete to CO2 is found to have an effect on improving concrete compressive strength and therefore offers the opportunity to reduce Portland cement content whilst also sequestering CO2 in the concrete. During the year, YTL Cement assessed this lever in collaboration with experienced developers in this field. The company complements this with in-house research to study the effects on concrete performance and opportunities to increase the reported sequestration rate.
Another technology that YTL Cement is exploring is the use of microalgae cultivation as a potential CO2 capture. Microalgae cultivation shows strong potential for CO2 capture, long-term storage, and biofuel production, with faster growth and higher biomass yield than terrestrial plants. Certain strains also have high lipid content, making them suitable for biofuel. However, challenges remain in scaling the technology, reducing energy use, and lowering costs for commercial viability. In response, YTL Cement launched Project ReGen in 2022 to optimize energy-efficient cultivation, focusing on tank design, growth conditions, and media selection. The project’s next phase includes further research on growth media, contamination control, and low-power tank designs.
We have held the steadfast belief that sustainability is a continuous journey. This conviction motivated us to acquire our own carbon consulting company, YTL-SV Carbon, back in 2007. In this pivotal moment in history, we understand that intensified climate action is imperative in our pursuit of carbon neutrality and net zero. Consequently, our carbon advisory team is dedicated to generating value for both our organization and our clients. We do so by concentrating on high-quality internal and external carbon credit projects, renewable energy certificate (REC) projects, and offering expertise in greenhouse gas management at both regional and global levels. This constitutes a crucial element in our comprehensive, long-term strategy to meet our climate objectives and address the challenging
issue of hard-to-abate emissions.
As we progress on our path toward achieving carbon neutrality by 2050, we recognize the escalating and intensifying challenges posed by climate change. Consequently, we are actively exploring environmentally sustainable solutions and strategy and implementing greener initiatives across our business units. Our primary focus remains on safeguarding the continuity and robustness of our business operations, along with the well-being and security of our valued employees and other stakeholders. For further details, please visit the YTL Corporation Berhad’s Sustainability Microsite at www.ytl.com/sustainability.
