FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 33 1.3 Transition Reliefs This is Frontken's first year of applying IFRS S1 and IFRS S2. The following first-year transition reliefs have been applied: • Comparative information: FY2024 Scope 1 and Scope 2 GHG figures have been restated to correct emission factor errors identified during preparation of this report; full details are disclosed in Section 1.5. Scope 3 comparative data is presented on the same basis as previously reported and has not been restated to conform with IFRS S2 measurement requirements. • Scope 3 emissions: Scope 3 data is disclosed voluntarily and on a best-efforts basis, with boundary expansion ongoing. The formal Scope 3 requirement under IFRS S2 has been deferred to FY2026. • Climate-first approach: In this first year of application, these disclosures focus on climate-related risks and opportunities. Disclosures on other sustainability topics will be progressively added in future periods as data frameworks mature. 1.4 Sources of Guidance The following standards and frameworks have been applied in preparing these disclosures: Framework / Standard Application Industry / Topic IFRS S1 (2023) General requirements: materiality, governance, strategy, risk management, metrics and targets. All sustainability topics IFRS S2 (2023) Climate-related disclosures: governance, strategy, scenario analysis, GHG metrics, targets. Climate change SASB Standards — TC-SC Semiconductor and Semiconductor Equipment industry metrics applied for materiality identification and sector-specific disclosure. All six SASB TC-SC disclosure topics are addressed: energy management (TC-SC-130a), water management (TC-SC-140a), hazardous waste management (TC-SC-150a), workforce health and safety (TC-SC-320a), product lifecycle management (TC-SC-410a), and supply chain management (TC-SC-430a). A full SASB TC-SC index with quantitative metrics is disclosed in Section 5.7 of this report. Semiconductors (primary) GHG Protocol (2004, revised) Corporate Accounting and Reporting Standard — Scope 1, 2, 3 boundary and measurement. GHG inventory GHG Protocol Scope 3 Standard Category identification and calculation methodology. Scope 3 emissions TCFD Recommendations (2017/2021) Supplementary guidance on scenario analysis and physical risk assessment. Climate strategy GRI Universal Standards (2021) Supplementary disclosures; GRI 302, 303, 305, 306. Energy, water, emissions, waste IEA Sustainable Development Scenario 1.5°C transition scenario inputs for climate resilience assessment. Scenario analysis IPCC AR6 Physical Climate Scenarios 4°C physical risk scenario inputs (SSP3-7.0 pathway). Scenario analysis SUSTAINABILITY REPORT (CONT’D)
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