ANNUAL REPORT 2025 SUSTAINABILITY Sustainability Statement (Cont’d) 59 CLIMATE CHANGE & ENERGY (CONT’D) OUR APPROACH In FY2025, NexG placed greater emphasis on climate-related issues, recognising that a changing climate presents both operational risks and sustainability challenges. While our business has historically maintained a relatively low carbon footprint, we know that consistent, incremental action is key. Our approach to climate change is built on a dual focus on mitigation and adaptation - reducing our environmental footprint while strengthening resilience against future climate-related disruptions. Electricity is the main source of our GHG emissions, linked primarily to our processes at Klang and PJ223. To manage this, we track energy consumption across sites and empower a person-in-charge to oversee plant operations and drive efficient energy use. This role includes identifying usage patterns, suggesting process improvements, and working with teams to ensure best practices are implemented. In FY2025, sites implemented practical energy-saving initiatives: Mitigation Adaptation Actions to reduce GHG emissions and limit the pace of climate change Actions to manage/reduce risks and impacts of climate change Improving Energy Efficiency Track energy consumption Maintain air-conditioning systems Install solar-powered spotlights Replace incandescent bulbs with LEDs Implement energy-saving reminders Enforce Non-Conformance Report system for energy-saving behaviour Managing Emissions Monitor GHG emissions To formalise GHG tracking system and reduction targets Plan for solar energy installations Building Climate Resilience Conduct climate risk assessment at PJ223 Install flood pumps, floodgates and emergency water tanks Carry out emergency response drills To embed climate risks into enterprise-wide risk management To explore climate scenario planning and cost analysis APPROACH TO CLIMATE CHANGE DCSB Energy-saving reminders, weekly reviews of operational hours, and maintenance efforts were carried out to avoid overconsumption. DTSB Energy usage is monitored consistently, with improvements such as air-conditioning upgrades and planning for solar panel installation in progress. DMSB We installed solar-powered spotlights, replaced incandescent bulbs with LEDs and conducted regular maintenance on air-conditioning units.
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