MKH Annual Report 2025

WASTE MANAGEMENT (CONT'D) For FY2025, MKHOP generated 378,991 MT of waste and managed to recycle approximately 99.9% or 378,967 MT of recyclable waste. We have implemented effective waste management strategies, recycling our waste into fertilisers and adopting a comprehensive approach to reuse materials wherever feasible. MKHOP actively promotes sustainability through the use of renewable energy sources for power generation and use by-products from palm oil milling, namely palm kernel shells and mesocarp fibre, as fuel for the boilers at our palm oil mill to produce steam for electricity generation by turbines. A small amount of boiler ash is produced when palm fibre and palm kernel shells are burned was subsequently recycled into the soil to reduce acidity levels. This aligns with the commitment to environmentally responsible practices, ensuring that the operations not only meet production demands but also contribute positively to the ecological footprint. EMISSION The rising levels of CO₂ continue to pose significant global challenges, including rising sea levels, shifting precipitation patterns, more frequent extreme weather events such as droughts and floods. As a responsible corporation, we are committed to supporting the national agenda to reduce greenhouse gas (GHG) emissions and acknowledges our role in minimising carbon emissions across our business operations. This is reflected in the identification of climate changes as a key risk in our MKH's Materiality Matrix. Building on our previous efforts, MKH has advanced its emissions management strategy by completing the initial phase of data collection and establishing a baseline for Scope 1 and Scope 2 emissions. This baseline enables us to monitor our environmental impact more accurately and set measurable targets to minimise emissions. We have also implemented data gathering for Scope 3 (Employee Commuting from FY2024 onwards and Business Travel from FY2025 onwards). We have implemented effective waste management strategies, recycling our organic waste into fertilisers and adopting a comprehensive approach to reuse materials wherever feasible. We are committed to supporting the national agenda to reduce greenhouse gas (GHG) emissions and acknowledges our role in minimising carbon output across our business operations. For FY2025, MKHOP generated 378,991 MT of waste and managed to recycle approximately 99.9% or 378,967 MT of recyclable waste. 378,967 MT SUSTAINABILITY REPORT PG | 90 ANNUAL REPORT 2025 MKH BERHAD

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