62 WASCO BERHAD SECTION 4 SUSTAINABILITY JOURNEY CHIEF STRATEGY OFFICER’S STATEMENT DEAR VALUED SHAREHOLDERS, Sustainability at Wasco continues to evolve from intention to integration. In 2025, we moved decisively from strengthening our disclosure foundations to tightening integration across our business. Building on the ambitions outlined in our 2024 Integrated Annual Report, we advanced our sustainability strategy with greater discipline and clearer accountability, ensuring a stronger alignment between our creation of value and the evolving expectations of our stakeholder groups. This Sustainability Report is designed to provide a clear and integrated view of how sustainability is being embedded across our business. It brings together our governance approach, stakeholder priorities, and the outcomes of our inaugural Double Materiality Assessment, which now informs how we identify, prioritise and manage our most significant sustainability risks and opportunities. From there, the report sets out how these priorities are translated into action, including how we manage our key sustainability risks and track performance against our targets. Our disclosures are organised across our Economic, Environmental, Social and Governance (“EESG”) pillars, with an enhanced focus this year on our Environmental performance. This includes a more structured alignment to the IFRS S2 climate disclosure pillars, supported by insights from our first Climate Change Risk Assessment. Together, these elements provide a more decision-useful and forward-looking view of how sustainability supports Wasco’s long-term resilience and value creation. DEEPENING OUR STRATEGY: DOUBLE MATERIALITY AND CLIMATE INSIGHT This year, we initiated our first double materiality assessment and conducted a climate change risk assessment and scenario analysis to sharpen our understanding of our business resilience as well as our environmental and social impacts. These efforts are more than just reporting exercises, as they provide decision-useful insights that will inform our business strategy (including target-setting and disclosures), capital allocation, and risk management going forward. SUSTAINABILITY JOURNEY We also established our Scope 3 greenhouse gas emissions baseline, which is a critical step towards addressing our value-chain impacts and strengthening our reporting transparency. We are pleased to report that our year-on-year Scope 1 and 2 emissions were reduced by 4,043 tCO2e, representing a 9% reduction in 2025. Our emissions intensity also decreased by 22%, reflecting improved operational efficiency and the effectiveness of our energy management and emissions monitoring practices. ADVANCING ENVIRONMENTAL STEWARDSHIP AND NATURE-POSITIVE ACTION Wasco’s environmental stewardship was strengthened through our enhanced monitoring of energy consumption, emissions, water usage, and waste management across the Group. During the year under review, we further expanded our renewable energy footprint with the installation of additional solar capacity at Wasco Coatings Malaysia – complementing its Green Electricity Tariff subscription – and at Wasco Process Engineering. Renewable Energy Certificates were purchased for PT Wasco Engineering Indonesia as well. These initiatives reinforce our steady progress towards achieving net-zero Scope 1 and 2 emissions by 2026.
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