180 WASCO BERHAD SECTION 5 COMMITMENT TO GOVERNANCE CORPORATE GOVERNANCE OVERVIEW STATEMENT (b) Digital Transformation Digitalisation is a cornerstone of Wasco’s long-term strategy, besides enhancing operational efficiency, it also unlocks new business opportunities and operation models. Wasco is transforming various functions across the Group, led by our Wasco AI Universe (“WAU”) initiative. By leveraging AI-driven solutions and advanced data analytics, it will boost productivity, sharpens decision-making and creates new pathways for growth. Among the key initiatives implemented during the financial year is the AI-enabled CARE Card system, designed to elevate Health, Safety and Environment (“HSE”) performance across the Group’s fabrication yards and coating plants. This system moves beyond simple insights, using AI to generate safety foresights for both management and operational teams. In parallel, the Group has deployed Environmental, Social and Governance dashboards to monitor ESG performance across geographies, integrated digital tools into project and supply chain management, and piloted predictive maintenance and asset health analytics to reduce operational downtime, improve service quality and further integrating digital tools into Wasco’s operations and supply chain management. Besides, the Group has intended to incorporate the WAU into the business associates onboarding framework through the integration of an AI-based self-scoring system to assist Management in assessing and evaluating business associates in a structured, consistent and risk-based manner. This enhancement is intended to standardise assessment criteria, reduce subjectivity, and enhance transparency in the evaluation and risk assessment processes through digitalisation. The system is designed to automate scoring upon submission of the required supporting documents, thereby improving operational efficiency, strengthening governance controls, and minimising the risk of manipulation. Wasco is committed to protecting our digital assets and stakeholder data. We continuously fortify our data protection and risk management frameworks to mitigate cyber threats and ensure regulatory compliance. Wasco’s key cybersecurity measures include:- • ISO/IEC 27001:2022 Certification: Our Information Security Management System (“ISMS”) was officially certified by SIRIM QAS International Sdn. Bhd. on 15 November 2025, affirming our adherence to global security standards. • Proactive Testing: We conduct Annual Vulnerability Assessments and Penetration Testing (“VAPT”) to identify and address security risks, alongside Annual Disaster Recovery Plan testing to ensure infrastructure resilience. • Building a Security Culture: We run ongoing awareness campaigns and training programs to empower our employees, enhance their understanding of cyber threats, and ensure compliance with company policies The Chief Information Officer provides regular updates to the Board on the progress and milestones of the Group’s IT Plan on Digital Transformation, including the recognition of WAU by the Ministry of Communications and Information Technology of Qatar as the winner of the ‘Best AI Solution – Corporate’ award at the Qatar Digital Business Awards 2025, as well as planned digital initiatives for the financial year. (c) Wasco Forest Project Building on the existing 160,000 trees planted in Wasco Forest 1.0, the Company has launched Wasco Forest 2.0 to plant the remaining 840,000 trees, bringing the project to its ambitious one-million-tree goal in support of reforestation efforts at the Berkelah and Lepar Forest Reserve. This project is in collaboration with the Forestry Department of Pahang, with expert support from the Forest Research Institute Malaysia (“FRIM”), University Putra Malaysia (“UPM”), and Eco-Ideal Consulting.
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