FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 10 CHAIRMAN’S MESSAGE (CONT’D) ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) AND SUSTAINABILITY Strong ESG practices are fundamental to sustainable growth and remain embedded in the Group’s strategy and day-to-day operations. We recognise that our long-term success is linked to how responsibly we manage our environmental impact, support our people and uphold the highest standards of governance. Progress against our ESG commitments is monitored regularly by the Board and forms an integral part of our operational planning and reporting. Environmental – Protecting the environment is a core responsibility particularly given the nature of our business. Chemicals, water and energy are fundamental resources to our processes and thus managing their consumption responsibly is an operational priority. We continued to implement programmes across all facilities to reduce our environmental footprint with progress measured against targets. Energy management remained a key focus. To that end, the Group invested in solar energy systems integrating approximately 6.2 million kWh of solar-generated electricity between 2018 and 2025. Water is an essential resource and given the volumes involved and the criticality of water to our operations, responsible water management has been a priority for the Group. Since 2018, the Group has implemented deionised-water (“DI-water”) recycling system, resulting in cumulative savings of approximately 577,500 tonnes of recycled DI-water. The Group’s operations generate a range of waste streams including chemicals and general industrial waste. Managing these responsibly through reduction, recovery and compliant disposal is an integral part of our environmental commitment. Since 2018, the Group has also achieved cumulative recycling of approximately 585,500 kilograms of waste through ongoing initiatives. Social – Our people are the foundation of our business. The Group employs a skilled and diverse workforce across all our facilities and we are committed to providing a workplace where every individual is safe, valued and supported to grow. The safety of our workforce is non-negotiable. Our health and safety management system is built on proactive risk identification and regular training. Additionally, developing workforce capabilities is essential to maintaining the high technical standards expected by our customers. During the year, training programmes covered technical skills, safety procedures, leadership development and cross-functional competencies. Beyond our operations, we recognise our responsibility to contribute positively to the communities around us. In FY2025, the Group continued its community engagement initiatives across all our facilities focusing on education support, environmental awareness and charitable works. These efforts reflect our ongoing commitment to fostering a culture of giving back across the Group. Beach clean-up activities by employees
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