5 ENHANCING VALUE THROUGH SUSTAINABILITY 111 Emissions monitoring will be enhanced through the piloting of shadow carbon pricing and the introduction of emissions intensity metrics, aligned with ISSB requirements under the National Sustainability Reporting Framework (NSRF). Given the importance of value chain impacts, a Scope 3 emissions inventory will be initiated, supported by the development of a Scope 3 Roadmap to guide measurement and management across the value chain. Progress on climate will be complemented by stronger attention to social priorities. The Group’s commitment to human rights will be reinforced through a Human Rights Policy guided by findings from the Human Rights Impact Assessment (HRIA). Engagement with the supply chain will promote ethical labour practices, alongside an assessment of the feasibility of adopting a national living wage approach in operating markets. Internal capability will also be strengthened through continuous and targeted upskilling of the internal audit function to support sustainability assurance. To support these efforts, reporting and communication will be enhanced to improve alignment with regulatory and stakeholder expectations and to present sustainability progress and ambitions in a clearer and more decision-useful manner. Climate risk has already been incorporated more explicitly within the risk management framework, strengthening the connection between sustainability, risk management and long-term strategy. Taken as a whole, Sustainability Roadmap 2.0 positions sustainability as a management discipline that links strategy, governance, performance and action. It provides a structured basis for consistent execution, strengthens accountability and reinforces the role of sustainability in supporting UEM Edgenta’s long-term competitiveness and value creation. Sustainability Roadmap 2.0 – Report Card and Updates for 2025 Approach • Updated the Sustainability Policy to incorporate climate-related commitments and governance expectations, strengthening alignment with global best practices. • Communicated and cascaded the enhanced Sustainability Policy across the organisation to reinforce a sustainability-driven culture and ensure consistent adoption in decision-making and operations. Materiality • Conducted a comprehensive review and alignment assessment of the Group’s 11 key material matters to ensure continued relevance to stakeholder expectations, business priorities, and emerging ESG risks/opportunities. • Elevated Occupational Health & Safety (OHS) into the list of focused Material Matters — expanding from four to five — reflecting its growing strategic importance, operational criticality, and direct link to workforce well‑being, business continuity, and long‑term value creation. Performance & Measurement • Total carbon reduction of 2,439.56 tonnes CO2e (2022-2025) against baseline in FY2022. • Rolled out Internal Carbon Pricing at RM15 per tonne of CO2e under a shadow pricing mechanism to embed carbon considerations into strategic and operational decisions. • Calculated emissions intensity against revenue to assess our carbon efficiency relative to business growth, enabling targeted decarbonisation efforts and clearer prioritisation of high‑impact business activities. • Secured inclusion in the FTSE4Good Index Series underscoring the Group’s commitment to robust environmental, social and governance standards. • Maintained a Total Recordable Incident Rate (TRIR) of 1.2, reflecting ongoing efforts to strengthen workplace safety and reduce recordable incidents across operations. Governance and Culture • Enhanced the Risk Management Framework to incorporate climate related risks and opportunities. • Conducted ESG outreach and awareness programmes across Edgenta sites, including ESG Immersion Month and the Supply Chain Engagement Day, to strengthen organisational understanding and engagement with key stakeholders. • Recorded 2,785 ESG learning hours in 2025, reflecting continued investment in strengthening organisational awareness and capability on sustainability matters. • Recorded 301 hours of ESG-related learning by the Board, supporting continued awareness of sustainability and climate-related developments.
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