Datasonic Group Berhad Annual Report 2020

The status of implementing group-wide sustainability governance is as follows: Action Plan Status of implementation Action Plan 1 of 4: Establish a sustainability framework, management policy and procedures to guide and direct key EES matters. The Strategic Management Committee (“SMC”) was formally established on 21 May 2019 to guide and direct strategic planning for sustainability and growth. Action Plan 2 of 4: Enforce mandatory requirements for sustainability reporting in accordance with the GRI Standards. We have yet to enforce mandatory requirements for EES risks reporting in accordance with the Global Reporting Initiative (“GRI”) Standards, as voluntary reporting is encouraged. Nonetheless, key indicators for employment, training and education matters continue to be reported on a quarterly basis by our Human Capital Development Department (“HCD”) based on the GRI Standards. Whereas other economic & environment indicators, such as employee/ customer satisfactionsurveyanalysis, supplier/vendor assessment, internal feedbacks, effluents and waste management, are collated/compiled by the respective person in-charge and reported to the EXCO/Board, either on ad-hoc basis e.g. arising from operational/audit reviews, or at minimum on annual basis. Even so, it is envisaged that this Action Plan would be carried out by our Management in the future, as we become more matured on our journey towards sustainability and growth. Action Plan 3 of 4: Perform group-wide risk assessment which helps identify and prioritise sustainability areas that are most crucial to meeting business goals. In accordance with Datasonic’s Enterprise Risk Management (“ERM”) Framework, our risk management processes are governed largely by the principles & guidelines of ISO 31000 - Risk Management. EES risks were identified, assessed and properly evaluated by the respective Risk Owners at operational level based on the established risk criteria/priorities adopted by the Company. Risk treatment plans were also developed bymanagement for mitigation of risks assessed by the Company. Action Plan 4 of 4: Formalise Key Performance Indicators (KPIs) for each business entity to allow periodic reviews and assessment of performance against set targets. Various business proposals and budgets were evaluated by the EXCO/ SMC and additional internal controls/templates were also introduced by the SMO as tools for KPI setting and/or performance reviews, in addition to enhancing the Group’s corporate governance, risk management and internal controls and compliance requirements governing these business activities. Sustainability Key Focus Areas and Strategies The Strategic Management Committee (“SMC”) was established on 21 May 2019 to achieve the following objectives:- • Formulate relevant business strategies that are aligned to the Group’s Vision and Mission; • Plan for corporate sustainability by managing our triple bottom line so that we could compete successfully in the market and/or expand our business confidently; and • Ensure that our strategies are adopted based on the Board’s risk appetite so that our limited resources may be mobilised effectively to fulfil our goals. Pursuant thereto, the Strategic Management Office (“SMO”) is tasked to support the SMC in the preliminary review and assessment of the following scopes:- • New business opportunities/strategic investment to be ventured; • New technologies, solutions and products to be invested/ acquired/ developed; Sustainability Statement (Cont’d) DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 34