Sime Darby Property : Sustainability Report 2023

SUSTAINABILITY REPORT

2023

About This Report

SCOPE

This report covers Sime Darby Property's sustainability performance for FY2023, which was approved by the Board Sustainability Committee on 27 March 2024. It details our ESG activities, performance and approach during the year, complementing the information published in Sime Darby Property's Integrated Report 2023.

REPORTING STANDARDS AND FRAMEWORKS

This report adheres to leading sustainability reporting standards and frameworks. Developed using best practices, it provides stakeholders with transparent and relevant information for informed decision-making.

The report has been prepared with reference to the following:

Bursa Malaysia's Main Market Listing Requirements on Sustainability Reporting

Bursa Malaysia's Sustainability Reporting Guide (3rd Edition)

Global Reporting Initiative ("GRI") Sustainability Reporting Standards

The United Nations Sustainable Development Goals ("UN SDGs")

Task Force on Climate-related Financial Disclosures ("TCFD") Recommendations

For details on the disclosures included in this report, please refer to the Appendix on pages 122-128.

STATEMENT OF ASSURANCE

In strengthening the credibility of the Sustainability Report, this Sustainability Report has been subjected to the following:

• An internal review by the Group Corporate Assurance Department; and
• Independent limited assurance in accordance with ISAE 3000 (Revised) "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information" for selected indicators.

The Group Corporate Assurance Department has reviewed the following subject matter information disclosed as part of the Sustainability Report:

• Percentage of employees by gender and age group, for each employee category;
• Percentage of directors by gender and age group;
• Total number of employee turnover by employee category; and
• Total number of new employees by gender, age group and employee category.

THIS DOCUMENT IS ISSUED BY Sime Darby Property Berhad Block G, 10th Floor

No.2, Jalan PJU 1A/7A, Ara Damansara, PJU 1A 47301 Petaling Jaya, Selangor, Malaysia

Phone:
TOLL-FREE LINE	1-800-88-1118
OUTSIDE MALAYSIA	[phone]

Website: www.simedarbyproperty.com

ENQUIRIES

All enquiries and correspondence regarding this report or sustainability disclosures should be directed to the team at [e-mail].

In addition, PricewaterhouseCoopers PLT was engaged to provide an independent limited assurance on the following subject matter information reported for FY2023, in accordance with ISAE 3000 (Revised) "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information":

• Percentage of operations assessed for corruption-related risks;
• Total energy consumption;
• Number of employees trained on health and safety standards;
• Proportion of spending on local suppliers;
• Total waste generated, and a breakdown of the following:
• • Total waste diverted from disposal
  • Total waste directed to disposal;
• Scope 1 emissions in tonnes of CO2e; and
• Scope 2 emissions in tonnes of CO2e

Please refer to the independent limited assurance report on page 129 to 132 for details on the subject matter information, scope of assurance and the assurance conclusion thereon.

REPORTING BOUNDARIES

The boundary for this report is defined around the level of ownership and management control through which Sime Darby Property is able to implement its Sustainability Framework or influence ESG outcomes.

The boundary covers:

1. Corporate Operations - Sime Darby Property's corporate policies, workforce, training, emissions and other impacts associated with managing business operations.
2. Direct Investment Portfolio - directly owned property assets are divided into two management groups - operational control and non-operational control. Control is determined by the level to which Sime Darby Property has the capacity to implement its Sustainability Strategy.
3. • Operational Control - where Sime Darby Property is responsible for setting operational standards for the property services and performance as well as for setting and delivering capital works and investment strategies to reduce energy and improve the asset.
   • Non-OperationalControl - across some property assets, the tenant-customer holds a lease with full management control over the entire premises that they occupy. In these assets, Sime Darby Property is unable to directly set policy or implement change. Non-operational control property assets are excluded from the reporting boundary of this report.

For more information, visit

www.simedarbyproperty.com

Please scan the QR code for the following documents of the Company which are available at

https://www.simedarbyproperty.com/ investor-relations/shareholders

3. Other Exclusions - Disclosure at the Group level does not include other operational businesses where Sime Darby Property does not have a majority ownership of more than 51% and/or does not have operational control. Data collected excludes our joint ventures and associates and those who are not under our operational control.

Table 1.1

Business Units included within the boundary of Sime Darby Property Berhad

Type of

Business

Business Units

Operating Unit

		BU1	City of Elmina (East & West), Denai Alam, Bukit Jelutong, Elmina Business Park
		BU2	Bandar Bukit Raja
		BU3	Serenia City, Malaysia Vision Valley (Hamilton City)
	Property	BU4	Bandar Ainsdale, Nilai Impian 1 & 2
	Development	BU5	Bandar Universiti Pagoh, Taman Pasir Putih
		BU6	KLGCC Resort, Ara Damansara
		BU7	KL East, Subang Jaya City Centre ("SJCC")
		BU8	Putra Heights, The Glades
	Leisure		Sime Darby Convention Centre ("SDCC"), Kuala Lumpur Golf & Country Club ("KLGCC"), Impian
		Golf & Country Club ("IGCC")
	Investment and Asset Management	Bayuemas Sports and Events Complex, Oasis Block G, KL East Mall

About Us

Sime Darby Property: A Force for Good

Sime Darby Property ("the Group") is evolving from a pure-play property developer into a comprehensive real estate group. We leverage market- leading expertise in investment management and asset creation, alongside our proven track record in shaping townships and cities. Over the past five decades, we have built a successful portfolio encompassing residential, commercial, industrial and logistics properties, evident through our 25 townships and developments nationwide. Additionally, the Group boasts a land bank of approximately 14,800 acres in strategic locations across the west coast of Peninsular Malaysia, poised for future development.

Partnership for Progress

In collaboration with our stakeholders, we strive to multiply value for societies, the environment and economies. We hold a proud legacy of creating award-winning townships and delivering positive community experiences through social infrastructure projects.

Corporate Responsibility

As a responsible corporate citizen, Sime Darby Property, alongside our philanthropic arm, Yayasan Sime Darby ("YSD"), actively implements initiatives to support marginalised communities within and surrounding our townships.

Our Purpose: Multiplying Value

Our vision for the future of the urban landscape aligns with our core purpose: to be a value multiplier for people, businesses, economies and the planet. Sime Darby Property's reach extends beyond property development. Our Investment & Asset Management (IAM) segment establishes a foothold in the industrial and logistics sector, managing approximately 7.7 million sq. ft. of total net lettable area, encompassing retail, commercial, hospitality, education and industrial spaces.

Leisure and International Presence

Within our Leisure segment, the Group proudly owns the prestigious Kuala Lumpur Golf & Country Club ("KLGCC"). Previously known as TPC Kuala Lumpur, holds the distinction of being the only Audubon Cooperative Sanctuary Certified Golf Course in Malaysia, demonstrating our dedication to environmental stewardship alongside its world-class golfing experience.

Furthermore, Sime Darby Property marked its international presence by participating in a Malaysian consortium that redeveloped the iconic Battersea Power Station in Central London.

Championing Urban Biodiversity

Our commitment to urban biodiversity continues through a strategic partnership with Tropical Rainforest Conservation and Research Centre ("TRCRC") on conservation and regeneration efforts. This collaboration led to the establishment of the Elmina Rainforest Knowledge Centre ("ERKC") in 2022 and has encouraged the participation of 1,783 people through various educational and volunteer-based activities.

Recognitions and Sustainability

2023 marked a year of celebration for the Group. We received recognition through various national and international awards, including being named a top property developer in 'The Edge Malaysia's Top Property Developers Awards' for the eleventh consecutive year. Sime Darby Property is a constituent of the MSCI ACWI Small Cap Index with an MSCI ESG Rating of BBB. We were also rated B by the Carbon Disclosure Project ("CDP").

Remaining a Force for Good

We remain resolute in our commitment to being a 'Force for Good'. We uphold the principles of ESG practices in all our business activities, aligning ourselves with the UN SDGs.

What's Inside

SEC 1

04-25

ABOUT US

OVERVIEW OF SIME DARBY PROPERTY

AWARDS AND RECOGNITION

A MESSAGE FROM OUR LEADERSHIP

OUR SUSTAINABILITY FRAMEWORK

11 Sustainability Framework

1. Our Contribution to the UN SDGs

1. Material Matters

1. Stakeholder Engagement

		SEC 2	26-33
SUSTAINABILITY GOVERNANCE
26	Governance Structure
30	Risk Management
31	Policies and Guidelines
32	Sustainability Thought Leadership
		SEC 3	34
PERFORMANCE SCORECARD
		SEC 4	35-40
DRIVING OUR VISION THROUGH INNOVATION

SEC 5

41-81

ENVIRONMENT

1. Energy and Carbon Management

1. Urban Biodiversity

1. Circularity

1. Water Management

1. Climate Adaptation

1. Climate Transparency: Our TCFD Journey

SEC 6

82-109

SOCIAL

1. Occupational Health and Safety

1. Community Experience

1. Diversity and Inclusion

1. Labour Standards and Practices

1. Responsible Supply Chain Management

SEC 7

110-121

GOVERNANCE

1. Anti-Briberyand Corruption

1. Data Privacy and Cybersecurity

SEC 8

122-134

APPENDICES

1. Performance Data Table

1. GRI Content Index

1. TCFD Index
2. Statement of Assurance Report

"

Sustainability is a key dimension towards excellence in business operations. At Sime Darby Property, we work collaboratively towards achieving net zero, creating urban biodiversity and fostering resilient communities.

"

Cover Rationale

Sime Darby Property goes beyond building - we cultivate ecosystems. Our commitment to urban biodiversity is proactive, weaving sustainability into our core values to reshape the real estate industry.

Our commitment extends beyond reducing our footprint - we actively enhance ecosystems within our developments which includes creating green spaces, preserving natural habitats, and promoting sustainable landscaping. This is our contributiontoagreenerfuture,whereeconomic growth and environmental responsibility go hand-in-hand.

Our focus extends beyond the environment. We are committed to building resilient communities. As we transition into a real estate development leader by 2025, our commitment as a true Value Multiplier remains unwavering.

51st

ANNUAL GENERAL

MEETING OF

SIME DARBY PROPERTY

Monday, 20 May 2024

10:00 a.m.

https:// investor.boardroomlimited.com

Overview of	A Message from	Our Approach	Sustainability	Performance	Driving Our	Environment	Social	Governance
Sime Darby	Our Leadership	to Sustainability	Governance	Scorecard	Vision Through
Property					Innovation

OVERVIEW OF SIME DARBY PROPERTY

OUR PURPOSE

To be a Value Multiplier for People, Businesses, Economies and the Planet.

Our Core Values

T

Together

We Do

What's Right

E

We Lead

with

Excellence

A

We Embrace

New

Approaches

M

We Make

It

Happen

At Sime Darby Property, our TEAM core values are underpinned by strong behavioral actions that are sustainability-centric. We believe that our employees lead the way to embed and instil a sustainable mindset through actionable habits.

4

Appendices

OUR VISION

Advancing real estate as a force for collective progress, in harmony with the planet's resources..

OUR MISSION

To develop, own and manage a thriving

asset portfolio, creating value for

all stakeholders.

OUR PRESENCE

UNITED KINGDOM

Battersea Power Station,

Central London

MALAYSIA

Figure 1.1: Our Presence

Who We Are

Sime Darby Property ("the Group") is Malaysia's leading property developer with more than 50 years of experience in building sustainable communities. With over 100,000 homes across 25 active townships and developments under its belt, the Group has a wide reach encompassing assets and operations across the country. We made our presence in the United Kingdom through our involvement as part of a Malaysian consortium that successfully redeveloped the iconic Battersea Power Station in Central London.

Beyond Property Development, Sime Darby Property has a strong footing in the industrial and logistics sector at Bandar Bukit Raja, Elmina Business Park and Serenia City in Selangor; Nilai Impian and Hamilton Nilai City in Negeri Sembilan; and Bandar Universiti Pagoh in Johor. Our strategic partnerships with various global players such as LOGOS SE Asia Pte Ltd, Mitsui & Co. Ltd. and Mitsubishi Estate Co. Ltd., have resulted in the establishment of a few noteworthy industrial and logistics facilities, including the E-Metro Logistics Park in Bandar Bukit Raja. Within our Leisure arm, Sime Darby Property is the proud owner of the Kuala Lumpur Golf & Country Club, one of the region's most prestigious golf clubs.

As a responsible corporate player, Sime Darby Property and our philanthropic arm, Yayasan Sime Darby ("YSD") actively implement various social welfare initiatives to assist underprivileged communities living within and nearby its townships.

As at December 2023, the Group has approximately 14,800 acres of land bank, most of which are located strategically on the west coast of Peninsular Malaysia. Within its Investment & Asset Management business, the Group operates approximately 7.7 million sq. ft. of net lettable area across commercial, retail, hospitality, education and industrial segments.

MARKE T
C APITALISATION	TOTAL ASSE T S
RM4.3billion	RM15.9	billion
as at 31 December 2023	as at 31 December 2023

TOTAL SALES

RM3.3billion

as at 31 December 2023

Sustainability Report 2023 5

Overview of	A Message from	Our Approach	Sustainability	Performance	Driving Our	Environment	Social	Governance
Sime Darby	Our Leadership	to Sustainability	Governance	Scorecard	Vision Through
Property					Innovation

Awards and Recognitions

Our commitment to sustainable development and eco-conscious initiatives continues to be acknowledged with prestigious awards that highlight our innovative approach to creating resilient communities:

2023 FIABCI Malaysia Property Award (Environmental Category):

Our Elmina Rainforest Knowledge Centre in the C i t y o f E l m i n a w a s honoured for its leadership in environmental education and its contribution to urban biodiversity and sustainability in Malaysia's real estate landscape.

Appollo Leong, Chief Operating Officer - Township Development receiving the 2023 FIABCI Malaysia Property Award (Environmental Category).

Talentbank

Graduates' Choice

Award 2023

(Second Place -

Property

Developer Sector):

Our position as a preferred employer for the nation's graduates showcases our strong appeal to emerging professionals and our ability to attract top talent.

HR team won 2nd place in the Property Developer Sector category for "Talentbank Graduates' Choice of Employer" award.

6

Appendices

FIABCI World Gold Award

(Master Plan):

Our Elmina Central Park was recognised for setting a high benchmark in sustainable urban planning, enhancing community wellness and fostering ecological connectivity in the City of Elmina.

The City of Elmina is certified the best- masterplanned township in the world by FIABCI in 2023.

Cantara Residences in Ara Damansara earned Green Building Index Gold Certification.

Level II Arboretum

Status:

Elmina Central Park's d e d i c a t i o n t o u r b a n biodiversity and education i n e n v i r o n m e n t a l stewardship has merited this esteemed status, underlining our efforts to integrate nature within our communities.

The 300-acre Elmina Central Park is a certified "Level II arboretum". after surpassing the minimum requirement of 100 species of woody plants and providing a valuable service to the public through various education and awareness initiatives.

Green Building Index Gold Certification:

The Group Cantara Residences has been awarded a Gold Rating in the Residential New Construction category by the Green Building Index ("GBI") Accreditation Panel. Located in the distinguished township of Ara Damansara, the family-oriented Cantara Residences was also bestowed with the World Silver award for the Residential Mid- Rise category at the 2023 FIABCI.

Chua Eng Imm, Chief People Officer, receiving "HR Asia's Best Companies to Work for in Asia 2023" award.

HR Asia's Best Companies to Work For in Asia Award 2023:

We were honoured for our continued commitment towards creating a thriving workplace culture and HR practices, affirming our dedication to employee excellence and well-being.

Sustainability Report 2023 7

Overview of	A Message from	Our Approach	Sustainability	Performance	Driving Our	Environment	Social	Governance
Sime Darby	Our Leadership	to Sustainability	Governance	Scorecard	Vision Through
Property					Innovation

A Message from Our

Leadership

DATO' RIZAL RICKMAN RAMLI	DATO' AZMIR MERICAN
Chairman	Group Managing Director

Dear Stakeholders,

We are proud to present the Sime Darby Property Sustainability Report for 2023. Sustainability has long been part of our work, underpinning every community and township we develop. In a world with escalating environmental and social issues-such as climate change, resource depletion and social inequality-our resolve has only grown stronger. As an industry leader responsible for over 100,000 homes in 25 active communities and townships across Malaysia, we recognise our significant impact and influence and we are determined to harness this responsibly to foster sustainable advancement in property development.

This commitment is encapsulated in our purpose statement: To be a value multiplier for the people, businesses, economies and the planet. Living this purpose means we help to create the best places for our customers and the communities we serve, inspire our people, preserve our culture and deliver sustainable growth for our securityholders.

In 2023, we advanced to the "Thrive Amidst Uncertainty" phase of our Group's SHIFT25 strategic roadmap, making significant strides in our transformation, evolving from a traditional property developer into an investment- led real estate enterprise. In this journey of transformation, sustainability remains a key driving force for our company-to stay relevant and competitive while delivering shared value to our stakeholders.

8