ANNUAL REPORT 2025 SUSTAINABILITY Sustainability Statement (Cont’d) 55 ENVIRONMENTAL STEWARDSHIP (CONT’D) Water Management While our operations do not consume large volumes of water, we continue to take a responsible and measured approach to how we manage water use across NexG facilities. Water is primarily used for general sanitation, along with operational processes within our manufacturing and personalisation processes, such as printing and book binding, lamination and card production activities. Our sites draw exclusively from municipal water supplies, and we do not extract water from natural resources such as rivers or groundwater. All of our facilities are located in non-water-stressed regions, minimising our exposure to physical water scarcity risks. Effluents generated are domestic in nature and are safely discharged through the public sewerage system in accordance with local regulations. In FY2025, NexG continued to monitor water usage across its facilities and maintain operational readiness. At DTSB’s PJ223 premises, a spare water tank was also installed to provide backup supply during potential disruptions. We also installed an additional flow meter control system to help monitor usage more closely. Meanwhile, several initiatives were implemented at DCSB’s RPS Centre to promote responsible water use. Employees participated in awareness programmes to reinforce good habits around water conservation. Monthly inspections of the plumbing system are undertaken to identify potential leaks and inefficiencies. We also practise preventive maintenance on a quarterly basis to reduce the risk of system failures. Additionally, we quantify water-related costs at DMSB to better understand the financial impact of water use. Looking ahead, we intend to install rainwater harvesting systems at DMSB and DCSB’s facilities, with implementation targeted for FY2026. We also plan to develop specific and time-bound targets moving forward. Waste Management NexG approach to waste management focuses on proper disposal and upstream efforts to minimise waste generation. We apply clear internal practices to manage waste across its full lifecycle - from collection and segregation to disposal - while exploring opportunities for reuse and recycling whenever possible. We manage two (2) main types of waste: solid waste and scheduled waste. Beyond disposal, we also take steps to reduce waste at the source through better material use and ongoing staff engagement. We encourage all teams to reuse materials where possible and participate in internal campaigns that promote waste awareness and reduction. Solid waste Scheduled waste Scheduled wastes, on the other hand, refer to regulated materials that may pose environmental or health risks if not handled properly. This includes items like used chemical containers or toner waste, which are stored and labelled according to legal requirements. Disposal is managed by third-party contractors licensed by the Department of Environment (“DOE”), in full compliance with the Environmental Quality (Scheduled Wastes) Regulations 2005. Solid waste includes everyday materials from our operations, such as paper, packaging, plastics and non-sensitive production offcuts. These are further sorted into recyclable and nonrecyclable streams at the point of disposal to maximise recovery and reduce landfill waste. Where possible, items like paper, cardboard and approved plastic containers are recycled. Nonrecyclable waste, including certain security-related production waste and general refuse, is sent to authorised landfills or disposed of securely through licensed vendors.
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