Climate–Related Risks and Opportunities

Gamuda recognises that environmental, social and governance (ESG) topics present both risks (if they are not properly managed) as well as opportunities. We have therefore incorporated our ESG risks into our corporate risk register, and continuously monitor the related risks while leveraging various opportunities to create greater value for our stakeholders. This is reflected in our ESG Framework – “Build Right. For Life.” – and the Gamuda Green Plan 2025.

CLIMATE-RELATED TRANSITION RISKS
As Gamuda strengthens its climate analytics and advances alignment with the Gamuda Green Plan and our SBTi aspirations, we have identified and are actively managing key transition risks through three core strategic responses.
Enhancing operational efficiency
Gamuda continues to focus on enhancing operational efficiency across our existing assets. This includes long-standing efforts to reduce energy consumption and integrate renewable energy features across our assets and project portfolio. To date, the Group owns around RM1.3 billion in property and investment properties equipped with solar photovoltaic (PV) systems, solar-powered streetlights, and electric vehicles (EV) charging stations. Approximately 35 percent of our assets and project sites, including newly acquired or started are now powered by renewable energy sources, significantly lowering our operational emissions and mitigating exposure to future carbon pricing or energy-related regulatory shifts.
Embedding climate considerations in project delivery
Gamuda continues to embed climate transition considerations across every stage of project delivery. While the level of influence varies across projects, the Group strives to integrate core climateconscious design and principles wherever practicable, particularly within the property developments where design control is greater. These efforts are supported by substantial investments in achieving green building certifications such as GBI, LCCF, EDGE, BREEAM, HSS, and others, amounting to over RM10 million to date. In addition, Gamuda has prioritised flood resilience and earth control measures, such as sediment filtration and water discharge management, to mitigate increasing physical climate risks, with more than RM2.1 million invested across our project sites in 2024 and 2025 to strengthen these adaptive measures.

Gamuda has invested over RM20 million in nature-based solutions, including advanced tree planting (ATP), wetland restoration, bioswale infrastructure, and the establishment of Miyawaki forests - many of which go beyond the original masterplans to address evolving climate impacts. Since 2023, we have invested about RM3.4 million to the establishment of a WAC, focused on ecosystem restoration through education, collaborative research, and eco-tourism initiatives.
Turning transition risks into business opportunities
As part of our third approach, Gamuda is transforming transition risks into business opportunities by scaling up renewable energy as a long-term growth strategy, while also supporting national decarbonisation goals. Our expansion into large-scale solar, wind, hydro, and battery energy storage projects, particularly in Malaysia and Australia, reflects the Group’s commitment to move beyond internal sustainability and contribute meaningfully to the broader energy transition.

While these developments create new opportunities, transition also brings additional compliance requirements. In Australia, for instance, stricter climate-related regulations have led to increased spending on consultancy services, climate-conscious design fees, low-carbon construction materials, and licensing costs. For FY2025, these compliance-related costs are estimated at RM1.9 million, reflecting Gamuda’s proactive stance in managing regulatory risk while maintaining competitive project delivery standards in various markets.
CLIMATE-RELATED PHYSICAL RISKS
Gamuda incorporates climate resilience into its project planning and execution to mitigate the impact of physical climate risks. One of the most material risks identified across its operations is extreme weather, which can lead to operational disruptions and increased maintenance costs.

As at financial year end, approximately RM8.2 million worth of plant and equipment in Malaysia is located at construction sites assessed as flood-prone, while the remainder are situated in areas deemed low-risk. Nevertheless, all construction sites are comprehensively covered by insurance, ensuring no material risk to the assets in use or to project progress to date.

While the assessed risk remains minimal, Gamuda continues to uphold strong resilience practices by incorporating value-engineering and adaptive-design strategies across its project delivery. Flood resilience measures are embedded into both project design and execution, supported by active monitoring of climate-related hazards within our enterprise risk management and strategic planning processes. For example, at the Ulu Padas Hydroelectric Dam Project, Gamuda plans to implement an early flood warning system to enhance site safety and protect nearby communities, demonstrating our commitment to resilient infrastructure that supports both operational continuity and broader community well-being.
CLIMATE-RELATED OPPORTUNITIES
Gamuda is actively capitalising on the global transition to a low-carbon economy by expanding its presence across the renewable energy value chain. Our strategy centres on becoming an end-to-end developer, builder, and owner of large-scale renewable energy assets, with a particular focus on wind, solar, battery storage, hydroelectric power, and transmission infrastructure. These initiatives support both our decarbonisation agenda and our long-term ambition to establish a sustainable, recurring income base from climate-aligned investments.

A major enabler of this growth has been our strategic investment in ERS Energy in 2022, a leading solar engineering, procurement, construction, and commissioning (EPCC) company. By integrating ERS into our operations, Gamuda has combined its large-scale construction expertise with ERS’s specialist renewable capabilities, enabling a significant push into solar infrastructure - particularly in Australia, where ERS works closely with Gamuda Engineering Australia (GEA) and DT Infrastructure (DTI) on a growing pipeline of projects.

In Malaysia, we are advancing landmark collaborations with strategic partners such as Gentari and SD Guthrie to jointly develop multigigawatt solar capacity integrated with battery energy storage systems (BESS). These projects are aimed at meeting the rising clean energy demand from hyperscale clients and large industrial users. In East Malaysia, our RM3.0 billion Ulu Padas Hydroelectric Dam Project in Sabah will support long-term energy and water security while contributing significantly to the national grid.

In Australia, where climate legislation is aggressively accelerating the clean energy transition, we are executing a targeted strategy to become a developer-builder-owner of renewable assets. In July 2025, Gamuda Holdings Pty Ltd signed a landmark agreement with local landowners in Central Tasmania to co-develop the Weasel Solar Farm and Cellars Hill Wind Farm, totalling 600 megawatt (MW) of generation and 600 MW of battery storage. Construction is expected to commence in 2027–2028. This portfolio complements our strategic position in Tasmania, which benefits from the upcoming Marinus Link interconnector - a project for which DTI has also been selected as the preferred contractor for onshore works — unlocking energy security and commercial offtake opportunities across Tasmania and Victoria.

DTI, continues to secure major clean energy projects, reinforcing Gamuda’s positioning as a builder of choice. In December 2024, DTI was awarded a AUD625 million contract (about RM1.8 billion) from Lightsource bp to deliver the 585-megawatt-peak (MWp) Goulburn River Solar Farm in New South Wales. In September 2024, DTI was appointed by Aula Energy and CS Energy to deliver the Boulder Creek Wind Farm in Queensland under a AUD243 million (RM702 million) contract.

In just three years, our renewable energy pipeline has grown to exceed 3 gigawatt (GW), with continued momentum driven by codevelopment deals in both Australia and Malaysia. Many of our projects originate from early contractor involvement (ECI) or singlesource procurement arrangements, where Gamuda has been named the preferred partner, reflecting strong market confidence in our capabilities. We are strategically deploying capital and resources to scale this vertical, aligning our growth with global climate goals while delivering long-term value to shareholders.
CAPITAL DEPLOYMENT
Gamuda has invested more than RM8 million in green infrastructure to advance its sustainability objectives and support the transition to lowcarbon operations to-date. This includes the installation of solar PV systems and EV charging stations across key assets. Approximately RM6 million has been allocated for the deployment of solar and EV infrastructure across the Group, enabling cleaner energy consumption and supporting the growth of green communities. These installations not only contribute to reducing operational emissions but also future-proof Gamuda’s assets in line with evolving environmental standards and market expectations. Through these targeted investments, Gamuda is laying the groundwork for long-term climate resilience and aligning its capital allocation with the goals of the Gamuda Green Plan.

To build on this momentum and expand our presence in the renewable energy sector, the Group is strategically deploying capital and resources to scale up investments in renewable energy projects.
REMUNERATION
The Board of Directors provides oversight of the establishment and progress of climate-related targets, ensuring executive accountability for the delivery of the Group’s climate strategy. The implementation of these targets is led by the Chief ESG Officer. Executive management’s remuneration is determined through a comprehensive performance review that considers a range of criteria, including financial, operational, and leadership factors. Sustainability-related performance contributes an estimated 20 percent of the overall evaluation.