Frontken Berhad Annual Report 2020

Annual Report 2020 21 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) SUSTAINABILITY REPORT Messages from Sustainability Committee For the past decade, Frontken Group has been committed to health, safety, environmental and corporate responsibility and sustainability development. We are focused on providing our customers around the world with products, services and technologies that help to improve and achieve the sustainable Environment 5.0 and Society 5.0 and make an explicit and positive contribution to the challenges of the Sustainable Development Goals today. The year 2020 was impaired by uncertainties about the future caused by the COVID-19 pandemic. At the end of January 2020, we set up the Emergency Response team, which reports directly to our executive board members, and promptly implemented a number of countermeasures. We are constantly working to gather information and deploy measures regarding the ever changing management and operational situations, while ensuring the health and safety of our employees. At the fiscal 2020 meetings of the Sustainability Committee, members discussed specific measures required to achieve Environmental Vision 2050, which aims to reduce greenhouse gas emissions by 50% by 2050, as well as confirmed the progress and reviewed targets for 2025 and 2035. In addition, the committee evaluated and identified risks and opportunities related to the environment including climate change following the Climate-related Financial Disclosures recommendations, and discussed the direction of the Company’s environmental initiatives, such as waste recovery and recycling based on this and efforts toward a circular economy. Over the past several years, we have explored ways to grow our business while tackling challenges associated with the reduction of greenhouse gas emissions. Through the development and spread of products and services that contribute to energy conservation and the mitigation of global warming, we aim to reduce the world’s greenhouse gas emissions while further developing our businesses. We will focus on disclosing environmental, social and governance (“ESG”) information, including climate change. In financial year 2020 (“FY2020”), we strengthened the Frontken Group’s (“Group”) commitments to various aspects of sustainability development, especially on the environment sustainability and emissions and climate changes. Our sustainability report covers our accomplishments in FY2020 during which time we took important steps to strengthen and integrate our sustainability vision, which is key to the long-term sustainable growth, development and profitability of the Group. We have dedicated additional resources to fully control and integrate our sustainability initiatives. These initiatives are aimed to recognise opportunities for profitability, continuous improvement, build enterprise value, preserves business integrity and protects our reputation. At the Group level, we build advanced technology to help our customers to develop sustainable products and services that make their critical parts last longer, perform better and look beautiful and recyclable in their critical processes. In short, we research, develop and build advanced technology to support and extend the critical processes for our customers’ businesses. Our technology helps customers to (a) PROTECT the surfaces of their critical parts used in everyday production; (b) PRESERVE their critical parts materials, so that they last longer in everyday production; (c) PROVIDE for a sustainable future via recycling, repairing, refurbishment and re-coating. We continue to develop business opportunities in alignment with our Sustainable Development Goals that are most relevant for the Group by re-engineering more shared values from fewer resources and turning societal concerns and environmental challenges into our product and services innovations for our global customers. We believe in delivering both stakeholders and social values for the long-term growth by building excellent corporate governance that will contribute positively to the society and the environment. We have spent considerable time and resources in shifting our business models towards becoming more sustainable. We have also focused on identifying new opportunities, as evidenced by our investments in the re-engineering of our water usage and conservation systems as well as our waste treatment and discharge systems, that have become the leader in terms of semiconductor parts processing support technology as well as in environmental sustainability. Our Board and Management, through our internal and external stakeholders engagement and materiality assessment of our business, had earlier identified key trends and topics that are critical to the continued success of our business, such as reducing emissions to environmental, reducing energy use and waste and improving safety and productivity, creating an inclusive social platform and good corporate governance, business continuity plan, etc. We have always and will continue to constantly review such risks as important opportunities to strengthen our risk management, and create long-term value and sustainable growth for the Group. The assessment and improvement of our operational sustainability have been integrated as part of the Group’s strategic formulation. The Board will continue to provide oversight with the support of the Sustainability Management Committee and Risk Management Committee where the ESG is reviewed and implemented.