54 Management Discussion And Analysis / Business Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 BUSINESS REVIEW SUSTAINABILITY AND ESG INTEGRATION Sustainability and ESG considerations are increasingly central to how the Group defines performance, evaluates risk and builds long-term value. While each business segment operates within its own regulatory and operational context, the Group takes a unified approach to sustainability - one that prioritises accountability, transparency and the creation of positive outcomes for all stakeholders. In FY2024, we continued to embed ESG thinking into core decision-making processes across the organisation. ESG elements were considered not only in operational planning but also in capital allocation, procurement and risk assessments. This includes responses to evolving regulatory expectations, such as preparations for alignment with global sustainability disclosure frameworks like IFRS S1 and S2, specifically in relation to climate-related risks and opportunities. ESG matters are governed at the highest level, with Board oversight exercised through the RGSC. Rather than operating in isolation, ESG issues are assessed in conjunction with risk, strategy and business continuity, ensuring integration into the Group’s overall management framework. While ESG execution is covered in detail within the Group’s dedicated Sustainability Statement, our efforts in FY2024 included climate readiness planning, continuous stakeholder engagement and the expansion of initiatives aligned with national and sectoral sustainability goals. These actions are not standalone, but are instead, woven into the Group’s broader transformation journey, supporting our commitment to responsible business practices, regulatory readiness and long-term resilience. For a full account of the Group’s ESG frameworks, priorities and performance, please refer to the Sustainability Statement included in this report. FUTURE OUTLOOK As we enter FY2025, we do so with a clear recognition of both the challenges and opportunities that lie ahead. The global operating environment is expected to remain uncertain, shaped by shifting geopolitical dynamics, regulatory changes and accelerating digital and sustainability transitions. These factors will continue to influence capital flow, policy direction and customer expectations across the industries in which we operate. Despite this backdrop, we believe the Group is well-positioned to navigate complexity and pursue growth with discipline. Our diversified business model, strategic recalibration across business units and commitment to innovation provide a solid foundation for long-term value creation. Our focus in the Technology landscape will be on emerging semiconductor applications, positioning us to tap into high-growth sectors such as AI, medical devices and next-generation communications. The realignment of our Energy portfolio toward domestic assets offers improved regulatory clarity and cost efficiency. Meanwhile, the IT Business Segment is poised to scale through sovereign cloud infrastructure and regional digitalisation initiatives. In parallel, we will continue to consolidate and optimise acquisitions made in recent years, ensuring they contribute effectively to both operational efficiency and long-term strategic alignment. In FY2025, we will continue to invest selectively in capabilities that enhance competitiveness, from deepening our presence in specialised markets to expanding end-to-end service offerings. Equally important will be our focus on operational efficiency, financial resilience and governance excellence, particularly in the face of inflationary pressures, talent shortages and growing ESG scrutiny. The year ahead will also see continued emphasis on stakeholder engagement, with sustainability, transparency and responsiveness remaining central to how we build trust and deliver value. While we remain mindful of global headwinds, we are confident in the strength of our foundations and the agility of our teams to pursue the opportunity where it emerges.
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