Sustainability Statement 2018
SUSTAINABILITY AT MALAKOFF
At Malakoff, we are on a journey of balancing both the exploration of new ideas on sustainability and entrenching the steps that have already been taken. As a leading regional independent power and water producer, we strive to ensure our sustainability goals are relevant and contribute significantly to the advancement of the industry’s ecosystem. Historically, the power industry depended on fossil fuel energy sources such as oil, gas and coal which may have adverse impact on the environment. Global utilities particularly the Europeans are moving aggresively towards renewable energy.
CAPITALISING ON GLOBAL TRENDS
According to ExxonMobil’s Outlook for Energy: A view to 2040, the world population is expected to reach 9.2 billion by 2040, up from 7.7 billion today. Over that period, global Gross Domestic Product (“GDP”) will likely double. As a result, the per capita GDP is projected to rise signifi cantly particularly in the non-Organisation for Economic Co-operation and Development (“OECD”) countries. This growth will coincide with improved living standards, resulting in rising energy usage particularly in Asian countries like China and India. Global electricity demand is projected to rise by 60% between 2016 and 2040. Renewable Energy (“RE”), mainly solar and wind, is expected to triple between now and 2040 and will help lower CO2 intensity by around 30%.
ACCELERATING THE GOVERNMENT’S PUSH FOR RE
The Malaysian Ministry of Energy, Science, Technology, Environment & Climate Change (“MESTECC”) has set a goal of achieving 20% electricity generation through RE by 2025, a signifi cant increase from the 2% currently. In line with the Government’s aspiration, Malakoff is also aggressively pursuing an RE target of more than 1,000 MW (power generation capacity) by 2023.
The proposed acquisition of Alam Flora Sdn Bhd serves as a stepping stone for the Group to penetrate the Waste Management and Environmental Services sector. Besides the opportunity to participate in this high growth sector through Alam Flora’s exclusive concession, Malakoff will also be able to leverage on waste as a source of energy thus complementing its power generating activities. The Group will also be able to play a role in accelerating the Government’s zero-single use plastic roadmap by 2030, through Alam Flora’s non-concession business which deals with recycling initiatives and waste treatment technology. The concept of 3R – Reduce, Reuse and Recycle – will be crucial in reducing plastic pollution.
ENHANCING OPERATIONAL EXCELLENCE
The Group continues to maintain sustainable performance through continuous improvements in operational efficiency. Continuous business improvement undertaken include creating an innovative culture, implementing best practices across our operations and ensuring a safe working environment.
Having a robust and energised workforce ensures that business goals and aspirations are attainable particularly in a challenging business environment.
THE PATH AHEAD
Moving forward, our business strategy will focus on adapting to the new way of doing business taking into consideration the rapid transformation in the power generation industry. Whilst we will continue in our efforts to achieve operational excellence for our plants, the Group will aggressively pursue opportunities in high growth areas in both conventional and RE power generation as well as waste management and environment related services to achieve sustainable growth for Malakoff.
DATO’ AHMAD FUAAD KENALI
Chief Executive Officer
For the full Sustainability Statement as published in the Malakoff Annual Report 2018, kindly follow the link below:
Malakoff Annual Report 2018 - Sustainability Statement