53 SECTION 3 VALUE CREATION INTEGRATED ANNUAL REPORT 2025 STRATEGIC ROADMAP & PROGRESS ADVANCING SUSTAINABILITY AND ENVIRONMENTAL STEWARDSHIP In 2023, we set bold targets: net zero Scope 1 and 2 by 2026 and expanding Wasco Forest to 770 hectares. These targets were supported by key enablers established in 2024, including the launch of Wasco Forest Phase 1 and our STFF. In 2025, those aspirations became concrete, completed initiatives – most notably the launch of Wasco Forest Phase 2. For Wasco, sustainability is not a reporting exercise, it is a long-term commitment to operate responsibly, restore what we have disturbed, and ensure communities and ecosystems benefit from our presence. Linked to: F S N H Capitals M1 M2 M5 M7 M10 M12 M15 M16 Material Matters • Wasco Forest: Biodiversity Recovery – An independent Rapid Biodiversity Assessment conducted in late 2025 recorded more than 300 plant species across Phase 1 of Wasco Forest and confirmed the return of endangered wildlife, including the Asian Elephant, Malayan Tapir, and Dhole, as well as the near-threatened Asian Golden Cat. These findings mark a significant ecological milestone – the restored area within the Berkelah Forest Reserve is now functioning as an active wildlife movement corridor within Malaysia’s Central Forest Spine, demonstrating that Wasco Forest has evolved well beyond a restoration project into a meaningful, long-term contribution to Malaysia’s natural heritage. • Wasco Forest Phase 2 Launched – Officiated by His Royal Highness the Sultan of Pahang on 2 October 2025, Phase 2 expands the programme to 770 hectares within the Lepar Forest Reserve. This builds on the success of Phase 1, where 160,000 native trees were planted with a projected carbon sequestration of 40,000 tonnes of CO2 by 2040. Together, Phase 1 and Phase 2 carry a combined long-term ambition to plant one million trees – a commitment not simply to plant trees, but to restore ecosystems, strengthen Malaysia’s Central Forest Spine ecological corridor, and leave a lasting contribution to Malaysia’s natural heritage. • Net Zero Progress: Renewable electricity now accounts for 35% of Group energy consumption, up from 27% in 2024. Key advances in 2025 include expanded on-site solar capacity at WCM and Wasco Process Engineering, and a diesel-to-biodiesel transition at PT WEI Batam, with two further sites; Wasco Thermal and Wasco Pipe Sabah planned to come online by early 2026. We remain on track to achieve net zero Scope 1 and 2 by 2026. • STEP Programme – We launched the STEP Programme, establishing a structured framework to embed responsible supply chain practices across Wasco’s global supplier and contractor base. In the near term, the programme focuses on assessing vendor maturity and building supplier capacity across climate change and human rights. Over time, STEP will progressively deepen ESG compliance requirements and develop joint decarbonisation commitments across the value chain. • Launch of WWAN – Launched globally on 20 March 2025, WWAN marks a significant step in embedding inclusive leadership and gender equity across Wasco’s operations in Malaysia, Indonesia, the Middle East, and Europe. The network provides a platform for structured advocacy, peer support, and leadership development, reinforcing Wasco’s commitment to building a diverse and equitable workplace at all levels. • FTSE Russell ESG Score: 4.4 (98th Percentile) – Wasco’s FTSE Russell ESG Score improved from 4.1 to 4.4, placing us at the 98th percentile among global Oil Equipment & Services peers. • Spotlight Case Study in Bursa Malaysia’s PLCT Programme Closure Report – We were also recognised as a Spotlight Case Study in Bursa Malaysia’s PLCT Programme Closure Report, underscoring our standing as a sustainability leader in the region. • Achieving Net Zero Scope 1 & 2 by 2026 – We will complete the remaining steps in our emissions reduction roadmap, finalising the Qatar dieselto-grid transition and deploying remaining solar capacity across our operating sites and any residual emissions will be accounted for by the carbon stock generated through Wasco Forest to meet our 2026 commitment. • Expanding Scope 3 Engagement – With our Scope 3 emissions baseline now established, 2026 will mark the next phase of our climate journey – setting measurable reduction targets, deepening collaboration with key suppliers and clients on joint decarbonisation, and aligning our reporting with ISSB-aligned frameworks. • Scaling WWAN Across All Geographies – Building on the global launch, WWAN will deepen its programme in 2026 with structured mentorship, targeted hiring commitments, and leadership development pathways for women across all Wasco operating entities. 2025 Progress Moving Forward
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