FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 36 Committee Climate and Sustainability Role FY2025 Frequency Key FY2025 Actions Audit Committee Oversees accuracy and reliability of climate-related data and disclosures; reviews Enterprise Risk Management (“ERM”) framework; ensures compliance with TCFD, GHG Protocol, and evolving climate regulations. 5 meetings — climate-related risk reviewed at every meeting Reviewed Sustainability Report; reviewed climate metrics for accuracy; reviewed internal climate risk controls and ERM risk register Remuneration Committee Links executive and employee compensation to ESG and climate performance metrics, ensuring management accountability on climate goals. A defined portion of 1–2% of annual bonus for executive and senior management is set aside for achievement of sustainability targets, including GHG reduction milestones, energy efficiency improvements, and climate governance KPIs. 2 meetings Reviewed incentive alignment with climate targets; confirmed that 1–2% of annual bonus for executive and senior management is set aside and tied to achievement of sustainability and climate performance targets Nomination Committee Ensures Board and senior leadership possess climate and sustainability expertise; facilitates climate training; assesses Board skills and competencies against sustainability requirements. 1 meeting Semi-annual evaluation of Directors and Senior Management on climate performance; engaged PLC & C Sdn Bhd for independent Board effectiveness evaluation including ESG competency assessment 2.1.1 Board Climate Skills and Competency Assessment The Nomination Committee conducts a formal Board skills matrix review annually, encompassing climate change, ESG governance, energy management, and regulatory risk as defined competency areas. In FY2025, the Board effectiveness evaluation conducted by an independent professional company, PLC & C Sdn Bhd, specifically assessed directors' understanding of ESG-related risks and opportunities. Dr Tay Kiang Meng (Executive Director and Chief Sustainability Officer (“CSO”)) completed the Top Executive WSH Programme in FY2024. The Nomination Committee has identified climate scenario analysis expertise as an area for continued development and has included this in the director training plan for FY2025. 2.2 Management's Role The Sustainability Steering Committee, chaired by Executive Director and CSO Dr Tay Kiang Meng, is the top management body for climate change oversight. It reviews climate change strategies and goals quarterly and reports directly to the Board of Directors at every Board meeting. The Sustainability Development Committee — comprising members from Frontken Singapore, Frontken Malaysia, and Ares Green Technology Corporation — operationalises action plans under the Steering Committee's guidance. Management skills and competencies in sustainability are maintained through the following processes: • Annual performance review of all management personnel includes ESG-related KPIs. • The CSO participates in external sustainability forums and regulatory briefings to maintain current knowledge of IFRS S2, CDP, and FTSE Russell developments. • Facility managers in Taiwan, Malaysia, and Singapore complete mandatory sustainability training annually, covering GHG inventory methodology, energy management systems, and climate risk identification. • The internal audit function (Sterling Business Alignment Consulting Sdn Bhd for Malaysia/Singapore; in-house Ares Green Technology Corporation team for Taiwan) reviews sustainability controls annually, including GHG data collection, energy management, and Safety, Health and Environment compliance. • External audit is carried out by Crowe Malaysia PLT. SUSTAINABILITY REPORT (CONT’D)
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