01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION ANNUAL REPORT 2026 WATER MANAGEMENT WHY IS THIS IMPORTANT? OUR APPROACH Water supports several of NexG's core operational processes, from printing and lamination to card production and general facility operations. Managing it responsibly is part of running our facilities well. Effective water management also supports our broader efforts to reduce our environmental footprint and use resources efficiently across our facilities. We maintain a disciplined approach to managing water stewardship across all our facilities. Our water footprint is primarily for general sanitation and operational processes, including printing and bookbinding, lamination, and card production activities. We also evaluate all operating sites using the World Resource Institute (“WRI”) Aqueduct Water Risk Atlas. The assessment confirmed that 100% of our facilities are located in areas of low baseline water stress and low overall water risk. Furthermore, all our sites are situated in nonwater- stressed regions, and we draw exclusively from municipal utilities, such as Air Selangor, with no extraction from natural surface water bodies, groundwater aquifers, or protected ecosystems. Through continuous consumption monitoring and routine facility inspections to minimise leakage and inefficiencies, we maintain alignment with responsible water conservation practices. In FY2026, practical steps were implemented across sites to improve water efficiency. For PJ223 facility, routine operational controls were maintained, including weekly backwash procedures, monthly filter cleaning, pump inspections, strainer cleaning, and voltage monitoring. These support reliable system performance while minimising potential disruptions. Meanwhile, selfclosing taps were installed at the Meru facility to reduce unnecessary consumption in common areas, while regular preventive maintenance on water equipment is maintained at RPS and PJ223 to minimise the risk of leaks and inefficiencies, As part of the Group’s broader water stewardship initiatives, water conservation awareness stickers have been installed in washrooms and pantry areas in Prima 10 to reinforce responsible water usage practices among employees. Subject to operational readiness and feasibility, RPS is exploring the implementation of rainwater harvesting systems to support more sustainable water management practices. The initiative aims to reduce reliance on treated water for suitable non-potable use. Water effluents generated across our sites are domestic in nature and are discharged safely through the public sewerage system in accordance with local regulations, including the Environmental Quality (Sewage) Regulations 2009. Sustainability STATEMENT (Cont’d) 60
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