Kuala Lumpur – Pengurusan Air Selangor Sdn Bhd (Air Selangor), the largest water services provider in Malaysia published its Sustainability Report 2022 with the theme of “Towards Water Supply Resiliency” today. This comprehensive report conveys Air Selangor’s continuous commitment in sustainability efforts by addressing the critical global issue of water supply and reflecting its proactive approach to building resilience to mitigate risks and secure water security for the nation.
The report comprises Air Selangor’s Sustainability strategies, initiatives and programmes which had been carried out as well as performance recorded for the period of 1 January to 31 December 2022 in managing material impacts on the economy, environment and society in driving long-term sustainability and efficient water supply management and administration for over 9.1 million consumers in Selangor, Kuala Lumpur and Putrajaya.
Air Selangor has recorded various achievements through its 2022 sustainability initiatives that include:
- A lower Non-Revenue Water (NRW) rate at 27.76% in 2022, a decrease of 0.23% from 2021,
- An average water reserve margin of 12.02% and is expected to increase to 17.70% by 2030,
- Compliance with the Ministry of Health’s Drinking Water Quality Standard of 99.85% and the Quality Assurance Program (QAP) of 100%,
- The installation of solar photovoltaic (PV) panels at six (6) sites with an annual capacity of 9.3 Mwac as of December 2022 as part of its efforts to reduce its carbon emissions towards becoming carbon neutral by 2040,
- Received two (2) management system certifications namely ISO 22301:2019 Business Continuity Management System and ISO 18295-2:2017 Customer Contact Centres which demonstrated the ability to manage risks and ensure the continuity of critical business processes,
- Scored an overall Net Promoter Score (NPS) of +14 in the Customer Satisfaction Index (CSI) survey, from +5 in 2021. NPS is a global market research metric to measure customer loyalty and satisfaction,
- Contributed a total of RM459,165 which assisted more than 1,600 families, individuals and charity homes through our Corporate Social Responsibility (CSR) programme, Sesama Mara,
- A total of 301,549 successful recipients benefitted from the Skim Air Darul Ehsan (SADE) which was introduced by the Selangor State Government to ensure that the less fortunate were given access to clean and safe treated water, with a cost of over RM30 million borne by the Selangor State Government annually.
Through meticulous and well-structured planning as well as effective execution, Air Selangor’s achievements in 2022 reflected a strong foundation for integrating sustainability initiatives in its governance, financing and business operations.
In 2022, Air Selangor recorded a revenue of RM2.45 billion, an increase of 12.38% from RM2.18 billion recorded in the previous year. The increase was the result of the recovery in the Malaysian economy following the relaxation and removal of COVID-19 restrictions coupled with the tariff adjustment for the non-domestic and special categories which became effective on 1 August 2022. Despite the increase in revenue, it was still insufficient to offset the operating costs and capital expenditure, and it will have an impact on Air Selangor’s long-term operational management. Therefore, Air Selangor hopes that the domestic water tariff adjustment can be implemented in the near future to ensure that an equilibrium between revenue and expenditure can be achieved in order to ensure sustainability towards a resilient water supply.
Furthermore, in 2022, Air Selangor has increased its capital expenditure (CAPEX) by 88.21% to RM2.58 billion in 2022 compared to RM1.37 billion in 2021.
In July and September 2022, Air Selangor completed its third and fourth issuances under its existing RM10.0 billion Sukuk Murabahah Programme. Both issuances pertain to the amount of RM900 million and RM400 million each to finance eligible projects, that are all complied with Air Selangor’s sustainable strategies, as well as to fund, among others, Air Selangor’s capital expenditure and working capital requirements.
Suruhanjaya Perkhidmatan Air Negara (SPAN) has also approved a CAPEX amounting to RM35 billion for Air Selangor’s 30-year business plan consisting of seven (7) Strategic Plans and Initiatives (SPIs) and eight (8) Key Result Areas (KRAs).
Through this sustainability report, Air Selangor supports all 17 Sustainable Development Goals (SDG) by the United Nations (UN). On that front, we are committed to the achievement of five (5) key goals that are directly related to our operations, namely the Clean Water and Sanitation Goal (SDG 6), the Decent Work and Economic Growth Goal (SDG 8), the Responsible Consumption and Production Goal (SDG 12), the Climate Action Goal (SDG 13) and Peace, Justice and Strong Institutions Goal (SDG 16).
For future outlook, Air Selangor’s Sustainability Strategy 2030 has been laid out which addresses five (5) main strategy pillars that include (i) Strengthening Governance and Increasing Transparency, (ii) Reducing the Impact of Climate Change, (iii) Prioritising Employee Health, Safety, Competency and Diversity, (iv) Delivering Customer Service Excellence and (v) Leveraging Digitalisation to Support a Circular Economy.
Air Selangor remains committed to mobilising all efforts and creating space and opportunities in its efforts to realise the aspirations of its net-zero target of becoming the leading water services provider in Asia by 2030.
The Air Selangor’s 2022 Sustainability Report can be accessed via https://hydrohub.airselangor.com/publication/2022-sustainability-report/.
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