UEM EDGENTA BERHAD Integrated Annual Report 2025 120 Sustainability-Linked KPIs To embed sustainability into everyday management and operations, UEM Edgenta has integrated sustainability-linked KPIs into the performance frameworks of all Business Units. This approach ensures that sustainability is treated as a business priority rather than a standalone initiative and that accountability is shared across the organisation. A structured carbon monitoring process has been implemented to support this integration. Emissions data from all Business Units are collected twice each year, at mid-year and year-end, providing a consistent basis for tracking carbon performance. Every Business Unit participates in this process, and their involvement is reflected within performance assessments, reinforcing ownership of emissions outcomes across operations. Monitoring has been strengthened further with the introduction of emissions intensity measurement and the application of an internal carbon price as analytical tools. These indicators provide deeper insight into emissions efficiency as business activity expands and support more informed evaluation of carbon performance over the course of the year. As the sustainability agenda advances, sustainability-linked KPIs will continue to be reviewed and refined. Future enhancements will align more closely with the Group’s net-zero pathway and may incorporate additional metrics to capture wider environmental and social performance, ensuring the KPI framework evolves in line with strategic priorities and operational realities. We have made significant progress in our sustainability-linked KPIs through the inclusion of ESG KPIs in the overall corporate scorecard of the organisation. This ensures that ESG is embedded as a key priority across all levels of the organisation from Business Units to Senior Management. Senior Management’s remuneration is linked to corporate scorecard which takes into account achievement of ESG KPIs. Material Matters UEM Edgenta’s sustainability initiatives are guided by a defined set of material matters that were reviewed during the financial year and continue to be relevant to the Group’s business and stakeholders. These material matters represent areas of highest impact and importance, shaping how sustainability priorities are set and how resources are directed. Strong business ethics and a focus on innovation support operational excellence across the Group. Economic development and responsible supply chain management reinforce sustainability across the value chain, while climate change risks, energy efficiency and wider environmental management priorities are addressed as part of long-term risk management and performance improvement. Occupational health and safety continues to be a priority to protect employees and support dependable operations. The Group also promotes an inclusive employment culture that supports talent development and organisational resilience. Customer satisfaction, human rights assessments and community engagement are prioritised to strengthen trust and create shared value with stakeholders. These material matters guide sustainability initiatives, inform risk mitigation measures and support long-term sustainable growth. Further information on the identification, review and management of material matters is set out in the Material Matters section of this Integrated Annual Report (IAR). Stakeholder Engagement Stakeholders play an important role in shaping UEM Edgenta’s sustainability direction and ESG performance. The Group engages stakeholders through ongoing, open and transparent dialogue to understand expectations, gather feedback and identify emerging issues that may affect business and sustainability priorities. Relevant and timely updates on sustainability progress are shared to encourage informed discussion and constructive engagement. Insights from stakeholders are considered in refining sustainability strategies and business priorities, enabling the Group to respond more effectively to stakeholder needs and concerns. This engagement approach strengthens relationships and supports long-term value creation for both stakeholders and the Group. Further details on engagement methods, key areas of concern and the Group’s responses are provided in the Stakeholder Engagement section of this IAR. SUSTAINABILITY AT UEM EDGENTA
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