79 SECTION 4 SUSTAINABILITY JOURNEY INTEGRATED ANNUAL REPORT 2025 DOUBLE MATERIALITY We conduct a materiality assessment every two years to ensure our sustainability priorities remain relevant and aligned with our evolving business strategy and risk profile. In 2025, we enhanced this process by engaging an external third party to conduct Wasco’s first double materiality assessment, incorporating guidance from GRI 3: Material Topics 2021 and Malaysia’s NSRF, which references IFRS S1: General Requirements for Sustainability-related Disclosures. Double materiality considers both: The assessment covered short-, medium-, and long-term horizons across our full value chain, spanning pipeline, energy and fabrication, and bioenergy services across key markets. This approach marks a shift from our previous materiality view, which focused primarily on the importance of sustainability matters to stakeholders and their relevance to Wasco, towards a double materiality perspective that explicitly dives into our most significant outward impacts on the environment, society, and economy, along with their potential financial implications for the Group. Evaluating our priorities through this dual lens helps us to better understand our risks, opportunities, and impacts, and strengthens our decision‑making and risk management in response to the latest local, regional, and global developments. With this milestone, we reinforce our commitment to reviewing our priorities against industry leading practices and generating richer, deeper insights to support our sustainability strategy and stakeholder expectations. OUR APPROACH The double materiality assessment conducted in 2025 followed a structured four-step process: 1. Landscape Review We reviewed our existing sustainability matters and associated impacts, risks, and opportunities across the value chain to ensure alignment with our strategic priorities and regulatory developments. Wasco’s value chain includes: • Upstream – relates to the activities of business partners and contractors that provide specialised raw materials for our products. • Own Operations – comprises activities over which Wasco has direct control, including pipeline coating, engineering and fabrication, and bioenergy services across global markets. • Downstream – refers to our relationships with clients in the oil and gas industry and palm oil industry who receive our products and services, as well as the service providers that facilitate the transportation, delivery, and implementation of these products and services. In conducting this review, we considered the full range of interactions, resources and relationships related to our business model and the external environment in which we operate and drew on a number of different internal and external sources. These sources included company policies, risk registers and strategic plans, peer benchmarks, megatrends, global sustainability standards (including the SASB Standards), and rating indices for the oil, gas and energy sectors. This process resulted in a refined list of sustainability matters grouped into four themes. Impact materiality How our activities affect the environment, society and economy. Financial materiality How sustainability-related risks and opportunities can reasonably be expected to affect our financial performance and long-term value creation. SUSTAINABILITY JOURNEY
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