FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 44 SUSTAINABILITY REPORT (CONT’D) Cat. GHG Protocol Category FY2023 (tCO2e) FY2024 (tCO2e) FY2025 (tCO2e) 8 Upstream leased assets 0 0 0 9 Downstream transportation and distribution 5,146 1,277 8,956 10 Processing of sold products 0 0 0 11 Use of sold products 0 0 0 12 End-of-life treatment of sold products 0 0 0 13 Downstream leased assets 0 0 0 14 Franchises 0 0 0 15 Investments 0 0 0 Scope 3 Total (disclosed categories) 41,348 39,130 48,152 Frontken’s Scope 4 avoided emissions (FY2025: 103,608 tCO2e) are disclosed separately and are not netted against Scope 1–3. 5.2 Cross-Industry Climate Metrics The following five cross-industry metrics are required under IFRS S2. Quantitative disclosures for metrics (i), (ii), and (iv) are provided in Section 3.3 above and cross-referenced here. All figures should be read in conjunction with Note 11 of the Audited Financial Statements for the financial year ended 31 December 2025. Metric FY2025 Disclosure (i) Assets/activities vulnerable to transition risks Transition risk primarily affects operations in Taiwan, where carbon pricing applies under the Climate Change Response Act. Taiwan operations represent approximately 75% of Group revenue. Asset-level carrying value is disclosed in Section 3.3 (Table B) above; see also Note 11 to the Audited Financial Statements for the financial year ended 31 December 2025. (ii) Assets/activities vulnerable to physical risks Physical risk assessment (Section 3.4) identifies the Tainan and Kaohsiung, Taiwan facility as the primary exposure, representing an estimated 2-5% of Group fixed assets (flood and drought risk). Asset-level carrying value is disclosed in Section 3.3 (Table B) above. (iii) Assets/activities aligned with climate-related opportunities Frontken's entire refurbishment and recycling business model is aligned with the low-carbon transition opportunity. Scope 4 avoided emissions in FY2025: 103,608 tCO2e. Solar PV: cumulative 6,226,682 kWh generated since 2018. Revenue from low-carbon services constitutes 78% of semiconductor segment revenue. (iv) Capital deployment toward climate risks and opportunities FY2025 climate-related capex includes energy efficiency upgrades (RM1,724,000) and waste treatment and environmental compliance facilities (RM147,000), totalling RM1,871,000. In aggregate, approximately 4.4% of the Group’s capital expenditure is directed toward sustainabilityrelated initiatives, encompassing capital expenditure on energy efficiency and environmental compliance, operational costs of environmental compliance programmes, sustainability reporting and assurance, and supply chain decarbonisation engagement. A full breakdown by category is disclosed in Section 3.3 (Table A) above. (v) Internal carbon price Internal carbon price is set at USD20 per tCO2e in FY2025. Estimated carbon price will increase to USD35 per tCO2e in FY2026 onwards.
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