Globally, guided by the UN’s Sustainable Development Goals, governments and organisations are working towards reducing energy intensity, mainly contributed by improved efficiencies, especially in industrial and transportation sectors. Some of the efforts to reduce energy emissions include adoption of clean technologies, the imminent shift to renewables and introduction of innovative product and policy solutions. The coordinated and consolidated efforts across the world are expected to limit the rise in global temperature at 2 degrees Celsius. Malaysia has also pledged for a voluntary reduction of up to 40% of emissions intensity per unit of GDP by the year 2020 compared to her emission levels in 2005.
In trying to meet this target, Malaysia continuously review the National Energy Policy to ensure secure, reliable, cost-effective and sustainable energy. Most recently, the government has moved from its four-fuel to five-fuel policy, to include RE along with oil, gas, coal, and hydro. The Eleventh Malaysia Plan (11MP) has also set an ambitious target to build the RE capacity to 2,080 MW by 2020. Globally, scalability and affordability of renewable energy are improving due to advancement in technology. The European utilities are moving away from coal even during the time when coal prices are going down. Of late, banks and long term investors such as pension funds are becoming more selective towards environmental friendly products and services. Due to rapid advancements in technology, Solar PV, wind (onshore) and biomass project tariffs are getting as competitive as conventional plants.
Against this backdrop, we believe that our role as a credible power and water producer is even more critical to not only support the aspirations of the government, but to also accelerate our efforts towards improving our energy-mix and energy efficiencies, while closely reviewing at our operations in all our key markets to effectively manage our ESG impacts. Towards this end, our commitment will go beyond embracing sustainable business practices. We will work with our stakeholders including authorities, investors, partners, service providers, employees and communities to adequately meet the present needs of power and water. We will also take greater responsibility to ensure that our current actions will positively contribute towards improving access to affordable, reliable, sustainable and modern energy for the future generations.
Moving forward, we will continuously identify and capitalise on common synergies, strengths and resources to integrate sustainability into our day-to-day business operations and behaviour. Our end objective is to improve our operational efficiencies and deliver long-term growth and value for all our stakeholders.
Our second Sustainability Statement (“the Statement”) documents various policies, programmes and commitments in relation to our ESG impacts. The Statement also outlines our approach to improving and growing our business operations in a responsible and sustainable manner, with unwavering commitment to our stakeholders and other interested parties.