FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 30 Stakeholder Engagement and Risk Management We place strong emphasis on stakeholder engagement for comprehensive risk management and materiality assessment. By involving stakeholders in discussions on critical trends — such as emissions reduction, energy efficiency, waste minimisation, inclusivity, governance, and business continuity — we transform risks into opportunities that fortify resilience and create enduring value. Long‑Term Vision: Governance and Oversight The Board of Directors, supported by the Sustainability Management Committee and Risk Management Committee, plays a pivotal role in providing oversight. These committees rigorously review and implement ESG initiatives, ensuring alignment with the highest standards of transparency, accountability, and responsible business practices. The assessment and enhancement of operational sustainability are seamlessly integrated into the strategic formulation of the Group. Key issues identified have paved the way for the development of strategies and the establishment of mediumterm and long-term goals. In our long-term vision, we aspire to benchmark our sustainability development against recognised frameworks, including the GRI Framework, United Nations Sustainable Development Goals, Responsible Business Alliance Framework (RBA), and Bursa Malaysia FTSE Russell ESG Model Framework. By continuously focusing on the economic and ESG dimensions of our business, we aim to contribute meaningfully to resolving environmental and social challenges. The Board, supported by the Sustainability Management Committee and Risk Management Committee, plays a pivotal role in providing oversight. These committees rigorously review and implement initiatives related to ESG, and more. This collaborative approach ensures that our sustainability initiatives align with the highest standards, promoting transparency, accountability, and responsible business practices throughout the organisation. Through these ongoing efforts, Frontken Group is committed to delivering positive outcomes not only for the business but also for the broader community and the environment. Employee Commitment and Achievement Moving forward, Frontken Group recognises that the health and safety of our employees, their families, and our business partners are paramount priorities. In FY2025, we continued our unwavering commitment to the eight Core Areas for Action on Sustainability, which form the foundation of our development strategy. Our employees remain dedicated to this mission, with skills and knowledge continuously enhanced to align with sustainability goals. Their contributions are directly linked to operational requirements and progress toward our sustainability targets, reinforcing our culture of accountability and innovation. Encouragingly, our dedicated employees at Frontken Group remain committed to our mission and core values. The Group consistently invests in enhancing the skills and knowledge of our workforce, ensuring they contribute effectively to our sustainability development vision. As we undergo transformations in our business practices and operations, we express gratitude for our on-site employees who safeguard our facilities, production output, and innovation creation on a daily basis. Their actions align with our employee roles and responsibilities, integrated into their personal objectives and incentives programme, directly linked to our business operational requirements and progress toward Frontken Sustainability Goals. (a) Continuous Innovation and Value Creation: Strengthening our innovation and production platform to provide tangible benefits to customers, ensuring a competitive advantage, and delivering positive social and environmental impact for sustainability development. (b) Maximising Resources and Productivity: Strengthening productivity and optimising resources in production, operations, and the supply chain. This includes managing critical materials, eliminating waste, and reducing costs to become a more sustainable and competitive company. For more detailed information, the Frontken FY2025 Sustainability Report is available, providing a comprehensive update on our sustainability strategy. This report builds upon the detailed information shared in our FY2025 Environmental Climate Change and Pollution Control reporting. Covering the 2025 fiscal year, the report includes data, performance highlights, progress against targets, and outlines notable targets set for the medium-term and long-term. This transparent reporting underscores our commitment to accountability, transparency, and the pursuit of sustainable practices. SUSTAINABILITY REPORT (CONT’D)
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