Dagang NeXchange Berhad Annual Report 2022

INTEGRATING BUSINESS AND SUSTAINABILITY Our diverse and global presence endows us with a responsibility to operate in ways that generate long-term value for people, communities and natural environments. Adopting a proactive approach, we undertook extensive efforts towards developing the Group’s Sustainability Framework. The framework is pillared on four Sustainability themes – “Stewarding A Sustainable Environment”, “Empowering Our People”, “Creating Value For Our Customers And Community” and “Embracing Good Governance For Business Resilience” – positioning us to make a greater positive impact and attain more holistic stewardship across the Environmental, Social and Governance (“ESG”) spectrum. Each of the themes in turn lead to specific ambitions which we will work towards achieving, through initiatives spanning across 12 material ESG issues identified and refined through engagements with our stakeholders. Implementing the framework will take time and considerable effort, and it starts with educating our workforce on the importance of Sustainabi l i ty and integrat ing ESG considerations into our everyday business practices. To this end, we have appointed Sustainability champions within each of our companies who will take the lead in driving a culture of Sustainability and ensuring alignment to the framework at ground level. In the long-run, we aspire to bring our suppliers and customers with us in our journey towards becoming an ESG-driven organisation that goes beyond a series of checklists. In the medium-to-long-term, our goal is to also improve the Group’s Sustainability index ratings and become recognised as leaders in Sustainability within our respective industries. Currently, we are tracking well towards this goal, with our ESG Rating – based on the FTSE Russell ESG Ratings Methodology – having risen from 1-star to 3-star during the past year alone. This is an impressive improvement in such a short space of time, and it places us in the top 26 to 50 per cent of companies in the FTSE Bursa Malaysia EMAS index. Stewarding a Sustainable Environment Empowering Our People Creating Value for Our Customers and Community Embracing Good Governance For Business Resilience 25 DNeX INTEGRATED REPORT 2022

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