Frontken Berhad Annual Report 2020

Annual Report 2020 22 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) In FY2020, the Group continued to improve and strengthen and focus on the six “Core Areas for Action on Sustainability’’. These six dimensions of sustainability development are (a) responsible management; (b) responsible innovation and service; (c) responsible green production; (d) responsible workplace; (e) responsible supply chain; and (f ) inclusive society and communities. Based on the key issues we identified, we have laid out a set of strategy and long-term goals in this report. In the long-term vision, we aim to benchmark our sustainability development with the GRI Framework and United Nations Sustainable Development Goals; Responsible Business Alliance Framework (“RBA”); Bursa Malaysia FTSERussell ESG Model Framework; and by continuing to make efforts in the economic and ESG dimensions of our business, and make a contribution towards resolving environmental and social issues. We continuously improve and equip our engineers and employees to ensure they are able to continuously contribute to our sustainability development vision. For example, every employee’s responsibilities are included in their personal objectives and incentives, and is linked to our business operational requirements: (a) Innovative Value Creation through product and service portfolios – designed to bring tangible benefits to our customers with competitive advantage and deliver positive social and environmental impact for sustainability development. (b) Maximising Resource Productivity through operations – designed to optimise all resources productivity in our production, operations and supply chain including critical materials used, eliminating waste and reducing variable cost; so as to make us more competitive and sustainable. Some of the highlights of our achievements are summarised as follows, with more details within our Group Sustainability Report FY2020, where we measure and report our sustainability performance. FY2020 ACHIEVEMENT OF SUSTAINABILITY GOALS Responsible Management The Board of the Group is cognisant of the importance of deploying high standards of corporate governance in the Company for the purposes of safeguarding the interest of its stakeholders as well as the assets of the Group, comprising the Company and all its subsidiaries. The Board oversees the business performance and affairs of the Group and provides general guidance to the management; including charting strategic direction, guiding management on digitalisation, technology and innovation, reviewing and approving annual budgets, financial plans and monitoring the Group’s performance, approving major acquisitions and fundraising exercises, as well as ensuring the Group’s compliance with all laws and regulations. The Group views the sustainable development of its management team characters and capabilities as a key part of its corporate social responsibility. We focus on financial prudence, discipline and integrity with strong risk management. We are committed to high standards of corporate governance to sustain growth and performance, and to safeguard stakeholders’ interest and maximise long-term shareholders’ value. We hold ourselves to the highest standards of corporate governance. We believe employees are its most important asset, and works actively to build a collaborative team with shared vision, balanced culture and positive values. We provide customers with the most advanced and comprehensive process technologies and services through continuous responsible innovation, green production and sustainable supply chains friendly to the environment, and take action to give back to society. The Group will continue to be committed to deliver value to our stakeholders through sustainable growth in our businesses, protecting the environment, empowering lives of people and nurturing communities where we operate. We will also continue to build the Group on the foundation of responsible management, responsible innovations, responsible employees and responsible green production, responsible supply chain and inclusive society and communities. The Group core values define the fundamental corporate ethics and culture for each and every one of its officers and employees. We treasure our people and we optimise our employees’ talents to the fullest and ensuring employees’ growth will eventually generates corporate growth. Our core values have helped us to build trustworthy relationships with our customers and suppliers/partners around the world; and enable our employees worldwide to take pride in their work; and enable everyone in our Group to generate innovations and continuously improve our productivity. Sustainability Report (cont’d)