IJM outlines mitigation, adaptation measures under new climate strategy as it braces for global warming

• To realise its net zero ambitions by 2050, it will focus on four key mitigation pillars across its own operations and value chain, namely: energy optimisation, supply chain advocacy, industry engagement and product stewardship.

KUALA LUMPUR (April 11): IJM Corp Bhd has come up with a climate strategy outlining mitigation and adaptation measures it will take to face climate change, as the group said it is compelled to act now, with global warming expected to reach 1.5°C above pre-industrial levels by the early 2030s.

To realise its net zero ambitions by 2050, it will focus on four key mitigation pillars across its own operations and value chain, namely: energy optimisation, supply chain advocacy, industry engagement and product stewardship.

"IJM will set its emission reduction aspirations with reference to Science-Based Targets initiative (SBTi) criteria and recommendations for its Scope 1, Scope 2 and Operational Scope 3 emissions. To reduce embodied carbon from purchased goods, the group aims to engage with at least 60% of its supply chain, by value, envisioning their adoption of emission reduction targets,” IJM said in a statement Tuesday (April 11).

While the group’s ability to address embodied carbon from purchased goods is dependent on supply chain innovation and active partnerships, IJM said it recognises that this category formed 84% of its FY2022 total emissions and is critical to achieving its net zero target.

“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," said IJM chief executive officer and managing director Lee Chun Fai.

The group has set FY2023 as its baseline year that represents a more normalised year of operations, and will expand its assessment to include the emissions from its operations in India as well as three additional categories of Scope 3.

The group will also adapt itself to be more climate resilient, following an assessment of its five main businesses of construction, property, industry, port and toll that revealed increased frequency and severity of identified climate stressors could result in business disruptions and loss of revenue. At the same time, it identified that the global transition to a low-carbon economy entails risks and opportunities from changing regulation, market, technology and reputation drivers.

Hence, IJM will adopt a number of measures, housed under three resilience pillars — climate risk integration into the organisational matrix, asset and business adaptation that includes the value chain, and alignment to the Task Force for Climate-related Financial Disclosures or TFCD, to which the group is an official supporter.

Shares of IJM closed 0.61% or 1 sen lower to RM1.62 per piece, giving it a market capitalisation of RM5.91 billion.