FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 26 SUSTAINABILITY REPORT (CONT’D) SIGNIFICANT MILESTONES In fiscal year 2025, Frontken Group achieved significant milestones across several key areas, demonstrating our commitment to innovation, sustainability, and responsible business practices. Some of our key accomplishments include: (a) Strengthened Innovation Platform We successfully enhanced our innovation platform, fostering increased value creation through innovative solutions. By prioritising research and development initiatives, we have expanded our capabilities to address emerging challenges and meet the evolving needs of our customers and stakeholders. (b) Updated Greener Products and Production Processes We made substantial progress in updating our product offerings and production processes to be more environmentally friendly. Through specialised capabilities and investments in sustainable technologies, we have advanced towards greener practices, reducing our environmental footprint and promoting resource efficiency. These efforts support a transition toward a low‑carbon, circular economy, while delivering products that meet evolving customer expectations for sustainability. (c) Greener and Safer Chemical Usage and Management Policy We have implemented a holistic chemical usage and management policy that prioritises human health, ecological safety, and regulatory compliance. By adopting green chemistry principles and stringent monitoring, we safeguard employees, communities, and ecosystems. This initiative reflects our commitment to pollution prevention and responsible stewardship of natural resources. (d) Increased Transparency and Risk Reduction We have strengthened governance and disclosure practices to enhance accountability and reduce sustainability risks. We enhanced transparency in our operations, reducing risks and taking proactive measures to address sustainability challenges. Our initiatives, including those related to climate change and pollution control, have resulted in tangible actions aimed at mitigating environmental impact and promoting sustainable practices throughout our value chain. (e) Proactive Risk Management and Regulatory Compliance We systematically assess the impacts of our business activities on climate change, water usage, and other environmental factors. Our approaches emphasised transparency and accountability regarding our performance and data by committing to third-party platforms such as the International Financial Reporting Standards and the Carbon Disclosure Project. By engaging with these platforms, we are better positioned to focus on optimising our activities, ultimately reducing the environmental impact of our operations. (f) Promote Net Zero Goals through Continuous Sustainable Production We consistently advocate for low-carbon solutions by continuously advancing technologies and projects related to part recovery, cleaning, and refurbishment. Through our comprehensive assessments, we are able to quantify the greenhouse gas emissions that have been avoided within the value chain as a result of our business activities, which are reported as Scope 4 Emissions. We believe that by disclosing these avoided greenhouse gas emissions, we can effectively promote a Circular Economy and sustainable sourcing within the supply chain. These accomplishments underscore our ongoing commitment to driving positive change and creating value for all stakeholders. By prioritising innovation, sustainability, and transparency, we are positioned to contribute meaningfully to addressing global challenges and building a more resilient and sustainable future.
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