030 KIMLUN CORPORATION BERHAD • SUSTAINABILITY STATEMENT Topics Indicators Our Targets 2025 Progress Social Wellbeing Labour Practices and Standards Total hours of training by employee category To achieve an average of 6 hours per eligible employees (Kimlun’s Executives and above) for external training Achieved, 8,523.5 hours training achieved – an average 16.49 hours per employees based on 517 employees Number of substantiated complaints concerning human rights violations Zero substantiated complaints on human rights violations Achieved, Zero complaints on human rights violations Impact on Local Community (Local Procurement) Proportion of spending on local suppliers At least 90% spending on local suppliers Achieved, 98% spending on local suppliers Environmental Stewardship Resource Management Quality and Cost Management of precast manufacturing operations Product rejection rate of no more than 1% Achieved, FY2025 and FY2024 rejection rate was 0.19% and 0.66%, respectively. SUSTAINABILITY GOVERNANCE Why It Matters Oversight and management of ESG issues from the Board level ensures that Kimlun’s management procedures are effective and that adequate resources are allocated to improve our ESG performance. By virtue of the ongoing attention of the Board and the active executive engagement in ESG topics, we strengthen the integrity of our corporate governance structure and enhance the Company’s global competitiveness. Sustainability Governance Structure Kimlun is committed to embedding sustainability into its business strategies and governance framework. The Board of Kimlun holds ultimate responsibility for ensuring the integration of sustainability considerations across the Group’s operations, including the management of climate-related risks and opportunities. The Audit and Risk Management Committee (“ARMC”) plays a crucial role in providing oversight for sustainabilityrelated risk management activities. The ARMC also supports the Board in evaluating the adequacy and effectiveness of the Group’s risk management and internal control systems, including sustainability assurance and reporting. The Executive Committee, comprising all Executive Directors of the Company and its wholly owned subsidiaries, leads the development and execution of sustainability strategies. The Committee plays a pivotal role in driving the Group’s sustainability initiatives by setting and pursuing sustainability targets, overseeing the implementation of strategies, and measuring progress.
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