Environmental, Social, and Governance (ESG) considerations have significantly influenced the construction and development landscape as these criteria address critical issues like climate change, social justice, and ethical business practices. ESG is now being considered at every stage of the development process, including due diligence, site acquisition, design, and construction.
LBS Bina Group Berhad executive chairman Tan Sri Ir. (Dr) Lim Hock San recently told BusinessToday exclusively: “At LBS, we abide by our Sustainability Financing Framework which has been externally reviewed by a Second Party Opinion Provider and awarded as “Gold”, to enables us to develop projects that are committed to responsible and sustainable practices.
“This initiative is a testament to our dedication to sustainable development and responsible investment. It aligns with our Group’s ESG ambitions, whilst diversifying our funding sources, ensures transparent fund usage, positioning us as pioneers in integrating sustainability within Malaysia’s property sector.”
Building Sustainable Communities
LBS has taken on a two-pronged approach to ensure meaningful development based on two main criteria, which are:
1. Pioneering Green Projects – Green Buildings: Homes are more than just walls and roofs; they are testaments to environmental responsibility. LBS integrates state-of-the-art technologies like solar panels, rainwater harvesting systems, and energy-efficient lighting to minimise carbon footprint. This translates to cost savings, potentially lower living costs, and healthier, more comfortable living spaces for purchasers. These aren’t just trends; LBS offers property which align with consumer values on eco-friendly products.
• Renewable Energy Champions: LBS embraces clean energy sources like solar power, reducing reliance on fossil fuels and generating clean energy. LBS secured a 28.67MW of solar power capacity to date, bringing energy independence and a cleaner future to residents. LBS champions innovative building solutions like the IBS system, reducing material waste and minimising on-site labour, for a smaller carbon footprint from the ground up.
• Guardians of Nature: The property developer understands the importance of protecting Earth’s biodiversity.
“We take proactive steps to ensure responsible development, with at least 50% of the trees planted within out projects coming from the IUCN tree list. Our three-level approach of avoidance, minimisation, and restoration preserves ecological balance and creates vibrant environments, enhancing the value of surrounding properties and making living spaces more desirable.
On this note, developers have often been given a bad rap as they are said to destroy the natural environment. To this, Lim said LBS bears the responsibility of constructing a township, which necessitates tree removal. However, upon completing the development, “we are committed to replenishing the lost trees by planting new ones.”
Instead of simply meeting the 10%, LBS goes beyond the minimum regulatory green landscape requirement and has achieved this goal in 2023 which demonstrates their commitment to creating greener, more vibrant communities.
The total design of township layouts always includes integration of green spaces such as parks, and tree-lined avenues, ensuring the integration of natural elements into the urban environment.
2. Empowering Communities – The developer stands on its principle that people deserve a safe and comfortable place to call home. LBS’s affordable housing initiatives provides quality living spaces with accessible prices, improving community living standards and social stability.
The developer stands on its principle that people deserve a safe and comfortable place to call home. LBS’s affordable housing initiatives provides quality living spaces with accessible prices, improving community living standards and social stability.
LBS has inaugurated a dedicated Customer Relations Centre within the township, serving as a permanent facility for managing completed projects during the developer liability period. The centre emphasizes customer relations and aims to address post-project concerns efficiently.
LBS also recognises the importance of empowering people where the developer offers skills training programmes and job opportunities to marginalised communities — fostering financial independence and contributing to a more equitable society. In 2022, the Star Talent Programme identified high-potential employees for a comprehensive 2-year training as part of succession planning. Additionally, in 2023, LBS organised the first middle management townhall program, enhancing communication, alignment, and leadership development among middle management, crucial intermediaries between upper management and employees.
“We are presently identifying projects that align with our social and green categories under this framework. Once we have identified these eligible projects, they will be presented to the Board for approval,” Lim added.
Net-Zero Carbon Emissions By 2050
To achieve net-zero carbon emissions by 2050, LBS launched a comprehensive roadmap with several key components, objectives, KPIs as well as 4 main sustainability goals.
The group incorporates ESG criteria into aspects of land acquisition due diligence which includes digitalisation where it believes sustainable digitalisation across every facet of the group intricate supply chain from suppliers/partners and operations to the end customer; this is known as Business Strategy Integration.
Business Strategy Integration
LBS’s business strategy emphasizes the integration of sustainable land acquisition practices and digitalization processes, exemplified by the incorporation of VADTech-driven technology.
VaDTech Driven Technology
LBS also focusses on its VaDTech Driven Technology through its subsidiary MGB Berhad. VaDTech, defined as Value Driven Technology, focusses on innovative ways to increase productivity and improve competitive edge which delivers efficient solutions, such as the Industrialised Building System (IBS) that increases production, cost efficiency, reduces onsite labour whilst minimising environmental wastage. With this solution, MGB has the capability of producing over 6,000 houses per annum.
Green Mission Programme
LBS actively promotes responsible waste management through innovative initiatives, such as the Green Day campaign within its operations. This campaign not only raises awareness but also encourages responsible waste disposal. LBS is extending these efforts to involve external stakeholders, aiming to minimise environmental impact, preserve resources, and contribute to a healthier environment. Moreover, all managed properties, sales gallery, SCAPES Hotel, and M3 Mall have recycling bins installed, promoting customer participation in recycling practices.
Operational Reduction
Operational reduction is achieved by prioritizing the implementation of a green mission program, with a focus on biodiversity, waste management, energy efficiency (including solar installations at owned properties), and water management (establishment of Building SOPP).
The group employs systems and methods towards operational reduction (Focuses on energy transition, efficiency improvement, technology innovation and supply chain optimisation) under its Green Mission Programme and looking into Biodiversity is in support of the government’s 100 million tree planting initiative); as well as proper Waste Management procedures.
Aspects of Energy Management were also deployed in terms of installation of solar panels across the rooftop of the LBS headquarters, the KITA @ Cybersouth sales gallery, and MGB’s IBS Precast Factory, in Nilai.
“At LBS, sustainability is at the core of our operations, and responsible waste management is a key priority. In essence, LBS has set a long-term KPI based on an equally long-term strategy that will focus on Carbon Offsetting and Removal by investing in projects like carbon storage and storage, or investing directly/indirectly in large-scale solar farms. The roadmap contributes to an overall operational reduction from an internal basis to enable LBS to reduce its carbon footprint, Lim added.
