01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION Sustainability Statement OUR APPROACH ADAPTATION ENERGY & EMISSIONS MANAGEMENT WHY IS THIS IMPORTANT? Energy consumption is the primary source of NexG's greenhouse gas (“GHG”) emissions, and managing it responsibly is central to how we reduce our environmental impact. Beyond our own footprint, climate change presents real operational risks, from physical disruptions such as flooding to transition risks arising from evolving regulations and stakeholder expectations. Left unaddressed, these could affect our ability to deliver on our commitments to customers and the communities we serve. NexG recognises our role in contributing to Malaysia's national climate agenda, including the goal of achieving Net Zero by 2050 and reducing GHG emissions by 45.0% by 2030, in line with the country's Nationally Determined Contribution ("NDC") under the Paris Agreement. By managing our energy use thoughtfully and building resilience against climate-related risks, we aim to protect our business continuity whilst contributing to a more sustainable future. NexG's operational GHG emissions stem primarily from electricity consumption across our facilities, which comes from the usage of machinery and equipment. Moving forward, we are progressively strengthening our emissions identification and data monitoring efforts across both our direct operations and supply chain. Understanding the sources of our emissions is an important step towards establishing a reliable baseline from which we can actively manage and reduce our overall carbon footprint. Each facility has a designated person responsible for overseeing energy use on the ground – monitoring consumption and identifying where savings can be made. Energy-efficient equipment and lighting are prioritised across the Group, and regular maintenance ensures machinery operates as efficiently as possible. Employees are encouraged to be mindful of energy use as part of their daily routines, such as switching off lighting and equipment when not in use and to embrace paperless solutions wherever possible. To reinforce accountability, we operate a Non-Conformance Report ("NCR") system that flags instances where energy-saving protocols are not being followed, ensuring corrective actions are followed through. In FY2026, the Group took further steps to reduce energy consumption. Air-conditioning systems at the Meru facility were upgraded to improve energy efficiency, while employees at the RPS centre were encouraged to carpool during company activities to reduce Scope 3 commuting emissions. Concurrently, at Prima 10 facility, we introduced a dedicated transit van service to support employees who commute via public transport. This initiative helps bridge last-mile transit gaps while encouraging lower-carbon commuting practices among employees. Reflecting on our strategic commitment to reducing our reliance on grid-supplied electricity, we continue to explore solar energy installation at PJ223 and RPS sites. Detailed planning and feasibility assessments are currently underway and are currently advancing through internal approval stages. Climate resilience is embedded into how we plan and operate. Across the Group, Business Continuity Plans ("BCPs") are maintained and reviewed regularly to ensure our response to climate-related disruptions is prepared rather than reactive. Awareness of climate-related risks is growing across our operations, with sites increasingly factoring these into their planning and preparedness activities. At PJ223, power outages and flooding have been identified as the primary climate-related risks to operational continuity. To manage this, practical infrastructure has been installed, such as floodgates and an emergency water tank, is maintained on site. These scenarios are formally embedded in the site's BCP, and climate change is recognised at this site as both a risk and an opportunity. In addition, Emergency Preparedness and Response ("EPR") exercises were conducted at the PJ223 and Meru facilities in FY2026 to strengthen operational readiness against climate-related disruptions. While climate change is recognised as a risk at these facilities, its severity is currently assessed as relatively low based on geographical location and historical climate patterns. Looking ahead, NexG intends to build on its GHG inventory and emissions tracking processes through the gradual formalisation of climate-related targets and initiatives. MITIGATION Sustainability STATEMENT (Cont’d) 65
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