FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 25 SUSTAINABILITY REPORT (CONT’D) In the fiscal year 2024 (“FY2024”), our journey was marked by considerable challenges. Firstly, the global economy is experiencing fluctuations, with concerns about inflation, potential recessions, and varying interest rates. Secondly, the ongoing disruptions in supply chains, exacerbated by geopolitical tensions and natural disasters, continue to impact businesses. Thirdly, the labour market remains tight, making it challenging for businesses to attract and retain top talent. Fourthly, navigating complex and evolving regulations regulatory compliance can be challenging, especially for businesses operating in multiple regions. In addition, businesses are increasingly expected to adopt sustainable practices and address climate change, which requires significant investment and innovation. The world collectively navigated through a global supply chain disruption, prolonged conflicts, diverse natural disasters, and heightened political tensions, alongside grappling with challenges such as high inflation and economic slowdown. While these challenges may seem daunting, they also present opportunities for innovation, growth, and positive change. Frontken Group has been adapting and responding proactively to these challenges to better position for success. As we adapt to the new realities forged by these challenges, our concerns now encompass critical issues like responsible innovation, climate change, environmental conservation, and prosperity. It is evident that the global business community needs a profound industrial transformation, fostering collaboration, and making necessary adjustments to navigate these complexities. Therefore, responding with heightened innovation, embracing responsible technology, adopting sustainable business operations, mitigating carbon emissions, and transitioning to sustainable energy sources are imperative steps. To address these challenges effectively, it is crucial for businesses to prioritise compliance with laws and regulations, uphold high ethical standards, and integrate sustainability into their overall development strategy. Our commitment is to contribute to this transformational journey, fostering responsible practices and making a positive impact on the world stage. Together, through responsible innovation and sustainable practices, we can create a more resilient and equitable company. THE JOURNEY FORWARD At Frontken Group, we continuously evolve our business operations, focusing on our innovation efforts on areas where our technologies, processes, systems, and capabilities can drive meaningful change and accelerate progress. We understand the dynamic nature of our stakeholders, customers, and supply chains, and we are dedicated to addressing climate change risks, clean water challenges, circular economy principles, and fostering green innovation and sustainable production practices. During the fiscal year 2024 meetings of the Sustainability Committee, members engaged in ongoing discussions to enhance our specific business materiality assessment, refine enterprise risk management processes, and strengthen internal control systems. These endeavours are part of our commitment to fine-tune sustainability development priorities and management strategies in response to the evolving risk landscape and challenges confronting our employees, customers and stakeholders. A notable aspect of our deliberations involved exploring the incorporation of circular economy principles into our business models. This includes a comprehensive consideration of life cycle impacts in the markets we serve. The group recognises the importance of aligning our operations with sustainability principles and strives to implement circular economy concepts that promote resource efficiency, reduce waste, and contribute to a more sustainable future.
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