ANNUAL REPORT 2025 SUSTAINABILITY Sustainability Statement (Cont’d) 54 ENVIRONMENTAL STEWARDSHIP (CONT’D) OUR APPROACH NexG’s commitment to environmental responsibility is guided by a framework of policies and systems that embed sustainability into our operations. Environmental performance is monitored at the site level, supported by an Environmental Management System (“EMS”) that aligns with ISO 14001 standards. As at FY2025, 50.0% of NexG’s operating sites are certified with ISO 14001:2015, underscoring our ongoing efforts to strengthen environmental governance across the Group. In FY2025, NexG introduced an Integrated Management System (“IMS”) Policy, reflecting our intent to establish a more coordinated approach to strengthen overall management practices at NexG. The IMS Policy is a step toward streamlining various management systems under a common framework. At present, the policy applies to DMSB’s card manufacturing operations in Klang; we are evaluating its extension to other business units in the future, subject to readiness and operational scope. Together, these frameworks guide our operations and sustainability initiatives, ensuring our practices are in compliance with relevant environmental laws, such as the Environmental Quality Act 1974 and its applicable regulations, namely the Environmental Quality (Scheduled Wastes) Regulations 2005 and Environmental Quality (Clean Air) Regulations 2014 and in line with national and international sustainability standards, including support for the UN SDGs. NEXG’S ENVIRONMENTAL FRAMEWORK SUSTAINABILITY POLICY ENVIRONMENTAL MANAGEMENT SYSTEM ENVIRONMENTAL COMMITMENT Sets out principles and practices that guide our efforts to operate responsibly and ethically. Mandates that environmental factors be considered in our day-to-day activities. Encourages continual efforts to reduce our impact on the environment. A structured approach to identifying, managing and improving environmental performance via standard operating procedures. Environmental performance is monitored at site-level, with oversight from Executive Directors (“EDs”) and Senior Leadership Team (“SLT”). Aligns with requirements of ISO 14001 EMS. Currently covers DMSB’s manufacturing facility in Klang and DTSB’s premises at PJ223, where a bulk of our manufacturing and personalisation functions take place. Our approach is further complemented by NexG’s Environmental Commitment, outlining four strategic areas: Environmental Protection Management Reduction of Customers’ Environmental Footprint Compliance with Environmental Legislation & Preventing Pollution Environmental Protection & Sustainable Consumption of Resources
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