Sustainability is core to our business decision-making and activities, as we seek to create long-term positive impacts on people and the planet. As such, we strive to embed EES considerations in our business management and daily operations. We also review our sustainability approach from time to time to ensure that our strategy remains relevant to current trends in order to mitigate risks and identify opportunities.

In 2022, we bolstered our sustainability approach with a new Sustainability Framework and enhanced our Sustainability Governance to include sustainability oversight at the Board level. The Board Sustainability Committee was established to guide S P Setia’s strategic direction, and oversees sustainability strategy, direction, performance and risks. The new sustainability approach will pave the way for S P Setia to prepare and respond to changes in the market and stakeholder expectations. This includes enabling the organisation to implement a circular economy as part of the Group’s overall sustainability plan and ensuring compliance with regulatory requirements.

The new Sustainability Framework aims for the Group to better drive sustainability to create sustainable communities. Approved and validated by S P Setia’s Senior Management and the Board, the new Sustainability Framework is anchored on three robust pillars, with each pillar aligned with identified key material matters. Furthermore, the Sustainability Framework also integrates Setia’s Vision and Mission, ensuring our business operates with sustainability at its heart.

We have also selected 15 United Nations Sustainable Development Goals (“UN SDGs”) that are aligned with the key material matters and the pillars. Going forward, we will keep reviewing and updating our sustainability approach to align with the rapid development of the sustainability landscape, and to mitigate risks and identify opportunities to ensure the sustainability of the business.

We pride ourselves on conducting our business in an open and transparent manner. Our well-established culture ensures that our governance framework remains flexible, allowing for fast decision making and effective oversight.

As illustrated in our sustainability governance structure, the Board of Directors sits at the helm of our sustainability governance and provides deliberation as well as oversight on sustainability strategy, implementation and performance. Our Board Sustainability Committee then prioritizes and ensures that the Group is advancing towards our designated sustainability agenda.

The Management Sustainability Committee, chaired by the CEO, ensures that implementation as well as monitoring occurs in line with Setia’s vision and mission. The Sustainability Working Committee, comprised of Group Corporate Sustainability and appointed ESG Leaders and Champions, thereby carries out the necessary actions and implementation exercises to achieve Setia’s sustainability-related objectives.

Setia’s Sustainability Financing Framework has been established to provide transparency and disclosure to the Company’s investors and stakeholders, on Setia’s undertakings to issue or raise instruments in a Use of Proceeds, i.e. Green, Social, and/or Sustainability format.

Under the Sustainability Financing Framework, Setia will be able to raise instruments and financings which may include but are not limited to respective Green or Social Sukuk, Bonds, Loans, and/or Financing (collectively referred to as “Sustainability Financing Transactions or SFT(s)”) to finance Green, Social and/or Sustainability Projects that align with its sustainability priorities, and in alignment with industry best practices.

Sustainable Fitch has been appointed as the independent external reviewer to provide a second-party opinion in relation to Setia’s Sustainability Financing Framework. Sustainable Fitch considered Setia’s Sustainability Financing Framework to be fully aligned with the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines issued by the International Capital Market Association (ICMA); the Green Loan Principles and Social Loan Principles jointly issued by the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA); and the ASEAN Green Bond Standards, ASEAN Social Bond Standards and ASEAN Sustainability Bond Standards issued by the ASEAN Capital Markets Forum (ACMF).

Sustainable Fitch is of the opinion that Setia’s Sustainability Financing Framework’s alignment is ‘Good’ and obtained the top score of ‘Excellent’ for its pillars of “Project Evaluation and Selection” and “Management of Proceeds”