FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 42 SUSTAINABILITY REPORT (CONT’D) Responsible Supply Chain Frontken requires suppliers to progressively: (1) calculate and disclose Scope 1 and 2 emissions; (2) calculate and disclose Scope 3 emissions; (3) set science-based carbon targets per SBTi; (4) report on target progress; and (5) cascade requirements to their own suppliers. 4.4 Adaptive Management Frontken’s Climate Risk Adaptive Standards address power shortage, floods, drought, high winds, regulatory change, and customer demands. All standards were fully complied with in FY2025. The Group achieved zero days of production interruption due to climate events. Climate Risk Adaptive Standard FY2025 Status Power Shortage Contingency measures for power restrictions and backup emergency power generators 3 Complied Floods Annual evaluation of external facilities and major suppliers for flood risk; contingency drills completed at flood-risk factories 3 Complied Drought Internal water conservation promoted; reclaimed water systems developed; minimum two days' backup water supply maintained at all facilities 3 Complied High Winds Outdoor facilities (water cooling towers, decontamination facilities) reinforced to withstand Beaufort scale 17 winds 3 Complied Carbon Regulations Mitigation measures strengthened; renewable energy market developed to reduce impacts from carbon taxes and energy taxes 3 Complied Customer Demands Participating in customer carbon credit programmes to meet expectations 3 Complied Stakeholder Expectations Carbon neutrality strategies developed with approval from external parties 3 Complied 5. METRICS AND TARGETS 5.1 GHG Emissions Frontken conducts an annual GHG emissions inventory across all reporting facilities in Taiwan, Malaysia, and Singapore in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. The organisational boundary is set using the operational control approach. All six Kyoto Protocol greenhouse gases are included where material; CO2 dominates. Biogenic emissions are excluded as immaterial. 5.1.1 Scope 1 and Scope 2 Emissions GHG Category FY2023 FY2024 FY2025 Scope 1 Total (tCO2e) 1,619 1,708 1,690 Scope 2: Location-based — grid average emission factors (tCO2e) 11,517 12,496 12,445 Scope 2: Market-based — adjusted for verified RECs (tCO2e) 11,517 12,496 12,445
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