ANNUAL REPORT 2025 SUSTAINABILITY Sustainability Statement (Cont’d) 50 RESPONSIBLE SOURCING WHY IS THIS IMPORTANT? At NexG, our supply chain decisions ripple outward, impacting not only our business but also the environment, our employees and the broader community. Responsible sourcing aligns our business practices with our broader determination towards sustainability. We prioritise ethical procurement to reduce environmental impact, promote fair labour practices and drive positive change within our value chain. This approach safeguards our reputation and contributes to a more sustainable and equitable future. OUR APPROACH Responsible sourcing is fundamental to how NexG operates and upholds the trust placed in us as a provider of secure and mission-critical solutions. Our procurement practices are shaped by clear internal policies, including our Procurement Policy, which defines the standards expected of suppliers across our sourcing practices. Before onboarding any new vendors, we conduct a pre-qualification assessment based on a well-defined set of criteria — including commercial feasibility, service quality, financial stability and operational efficiency. We also take into account governance measures such as anti-bribery and corruption controls, supplier responsiveness and reputation. This process ensures that only capable and aligned partners are selected to support our operations. Existing vendors are reviewed annually using our External Provider Assessment, a structured rating system that evaluates performance in areas like delivery, responsiveness, compliance and reliability. Following the assessment, our procurement team engages with suppliers for feedback, involving conducting on-site briefings with relevant suppliers. Supplier and Contractor Assessment Criteria Timeliness Of Delivery Quality Of Service Reasonable Terms And Conditions Business Reputation Internal Measures Managing AntiBribery And Anti-Corruption Dependability And Reliability Competitive Pricing Financial Resilience Of Suppliers Prompt In Service And Response Time Accurate And Reliable Information As part of our commitment to ethical sourcing, we maintain a zero-tolerance policy on forced and child labour, and work with our vendors to ensure ethical and safe working conditions. Our Occupational Safety, Health and Environment (“OSHE”) Policy is communicated to suppliers via official e-mail correspondence, and all suppliers are required to review and acknowledge their adherence through a signed declaration. These OSHE standards are embedded in our Service Level Agreements (“SLAs”) for added accountability. At our manufacturing centres, we carry out risk assessments for new and ongoing suppliers to identify environmental and social issues. This allows for early identification and mitigation of potential issues. Contractors and vendors must also attend on-site safety briefings and obtain official permits before commencing work, ensuring safety and compliance are maintained on our premises. We favour products and services with lower environmental impact, and where possible, select materials and inputs that contribute to waste reduction and energy efficiency across the product lifecycle. Furthermore, we encourage our suppliers to monitor their sustainability performance and adopt measures that contribute to long-term impact reduction. We continue to prioritise local procurement wherever feasible, recognising the commercial and social benefits it brings to us and the communities we serve. Sourcing locally enables faster turnaround times and lowers logistics costs. It also helps minimise our carbon footprint by cutting down on long-haul delivery emissions. Beyond this, supporting local vendors contributes to domestic economic growth, creating opportunities for local businesses and job creation. Looking ahead, we continue to explore opportunities to strengthen our supply chain and further integrate ESG considerations into our procurement decisions.
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