5 ENHANCING VALUE THROUGH SUSTAINABILITY 109 SUSTAINABILITY PERFORMANCE IN FY2025 Our progress must be demonstrated through clear actions measured against defined targets. Through this discipline, we can further strengthen trust with clients and build a more resilient business that delivers long-term growth for our stakeholders and ourselves. A significant milestone was our inclusion in the FTSE4Good Index in June 2025, reflecting continued improvement in governance, transparency and sustainability practices. Sustainability priorities also translated into commercial outcomes. During the year, we secured key contract wins and renewals with multinational clients that place strong emphasis on HSSE standards, governance and responsible business conduct as part of service quality and long-term partnership. This was supported by solutions such as our Zero Capex Programme, which empowers clients to implement energy-saving retrofits without upfront capital expenditure. At an operational level, we continued advancing circular economy practices within our Infrastructure Services segment. The commissioning of the Asphalt Premix Plant with Recycling Facility in Tapah enables the reuse of recycled asphalt pavement, reduces dependence on virgin materials and lowers environmental impact, while expanding our solutions base through strengthening of technical capability and operational efficiency. In healthcare, Hospital Bukit Mertajam received the Most Sustainable Hospital award at the 24th Hospital Management Asia Awards 2025. This recognition reflects the work undertaken to transform facilities into more efficient and resilient environments through stronger asset management, digitalisation and energy efficiency — supporting our clients in their own sustainability journeys. Beyond Malaysia, sustainability considerations are central to our expansion in the Middle East, particularly in the United Arab Emirates and the Kingdom of Saudi Arabia. Growth in these markets is guided not only by environmental objectives, but also by the development of local capability, job creation, and skills transfer to local nationals. With continued investment in sustainability and technology-enabled solutions, the Middle East remains an important region for the Group and a key driver of future growth. Our environmental performance reflected continued business expansion, alongside improvements in operational efficiency. Despite this, our Scope 1 and Scope 2 emissions decreased during the year, driven by asset utilisation optimisation, resulting in lower consumption of electricity, fuel and natural gas, alongside strengthened cost discipline and operational efficiency measures. In tandem with our business expansion, we remain committed to managing emissions in line with our net zero pathway and strengthening carbon discipline across the business. EMBEDDING SUSTAINABILITY THROUGH GOVERNANCE AND PEOPLE Driving sustainability at scale requires clear structure, oversight and accountability. Over the past year, the Group has strengthened the foundations that embed sustainability more deeply into daily operations and oversight. A Group-wide Human Rights Policy now sets clearer expectations on fair treatment, worker welfare and responsible business conduct across operations and the wider value chain. In parallel, the Sustainability Policy has been enhanced to place stronger focus on climate-related considerations, aligning sustainability commitments with risk management processes and long-term strategy. These policies provide firmer direction and enable more consistent judgement across the organisation as we expand. Attention has also extended beyond direct operations. A structured supply chain engagement plan has been introduced to raise standards, strengthen dialogue and improve cooperation with suppliers and contractors. This approach helps manage environmental, social and governance risks across the value chain while supporting reliable and responsible service delivery. At an operational level, a role-based approach translates strategy into practice. Project managers integrate environmental, health and safety, carbon and social risks into project planning and delivery. Finance and commercial teams manage sustainability-linked financing requirements and evolving client expectations. Sustainability ownership and accountability is formalised through senior management scorecards and defined governance structures, including an ESG Steering Committee and ESG Champions embedded within business units, ensuring it forms part of normal business management rather than a separate function. LOOKING AHEAD Our focus on sustainability remains embedded in how the Group is governed and managed, and will continue to be central to our business and a key point of differentiation in the years ahead. The principles of transparency, sound governance and clear disclosure of material sustainability risks remain relevant for an organisation of our scale and operational complexity. As a technology-enabled solutions company firmly rooted in sustainability, our ESG journey continues to evolve both operationally and strategically across the Group, in line with our future direction. SHAIFUL SUBHAN Managing Director / Chief Executive Officer
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