FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 35 (b) Note on Scope 3 Year-on-Year Variation The variation in reported Scope 3 emissions across years (FY2023: 41,348 tCO2e; FY2024 restated: 39,130 tCO2e; FY2025: 48,152 tCO2e) reflects the progressive refinement of Frontken’s Scope 3 boundary and methodology. Note that figures reported in the FY2024 Sustainability Development Report and TCFD Report (FY2022: 44,196 tCO2e; FY2023: 764,554 tCO2e; FY2024: 167,796 tCO2e) are not directly comparable to those presented in this report, as they were compiled under a different boundary scope and calculation methodology. The FY2024 comparative figure has been restated to 39,130 tCO2e to reflect the current stable boundary, which covers GHG Protocol Categories 1–9. Prior large variations were driven by: (1) progressive expansion of Scope 3 boundary coverage as new categories were added; (2) changes in supplier engagement response rates affecting upstream category calculations; and (3) methodology refinements in calculating purchased goods and services. FY2025 is the first year in which a consistent Scope 3 boundary and methodology has been applied, enabling meaningful year-on-year comparison going forward. Frontken will continue to refine supplier data collection to reduce reliance on spend-based estimation. 1.6 Materiality and Scope Information is material if omitting, misstating, or obscuring it could reasonably be expected to influence the decisions of the primary users of general purpose financial reports. Disclosures in this report have been assessed for materiality using the same concept applied in Frontken’s IFRS Accounting Standards financial statements. Where no specific IFRS Sustainability Disclosure Standard exists for a topic, Frontken applies SASB Standards (TC-SC), TCFD recommendations, and the GRI framework to identify applicable disclosures. All six SASB TC-SC sector disclosure topics applicable to the Semiconductor and Semiconductor Equipment industry are addressed in this report; the full SASB TC-SC content index with quantitative metrics is set out in Section 5.7. Materiality Disclosures cover all material sustainability-related risks and opportunities, assessed using the same materiality concept as IFRS Accounting Standards. Reporting Period Sustainability disclosures cover the same reporting period as Frontken’s financial statements: 1 January – 31 December 2025. Connected Information Sustainability disclosures are connected to Frontken’s financial statements, with cross-references to the Annual Report 2025 provided throughout. 2. GOVERNANCE 2.1 Board Oversight The Frontken Board of Directors, chaired by Mr Ng Wai Pin (Chairman/Chief Executive Officer), holds ultimate responsibility for sustainability and climate-related governance. The Board integrates ESG factors as core governance principles to achieve long-term enterprise value creation. Climate-related risks and opportunities are a standing agenda item at every Board meeting. The Board convened five times in FY2025, with 100% attendance by all six directors. Committee Climate and Sustainability Role FY2025 Frequency Key FY2025 Actions Board of Directors Ultimate responsibility for climate strategy; approves Net Zero targets and major climate policies; oversees scenario analysis; approves climaterelated disclosures. 6 meetings — climate reviewed at every meeting as a standing agenda item Declared Net Zero by 2050; issued FCB Climate Change Policy; approved capital expenditure (“capex”) for waste treatment, expansion of production line SUSTAINABILITY REPORT (CONT’D)
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