86 WASCO BERHAD SECTION 4 SUSTAINABILITY JOURNEY Energy Management 6 Managing energy consumption and efficiency, as well as the use of renewable energy sources (e.g. solar energy) across Wasco’s operations. Impact Materiality Negative Impact Positive Impact Actual or Potential Value Chain Step Page No. Continuous poor management of energy efficiency can lead to higher greenhouse gas emissions and increase our overall environmental footprint. Implementation of energy-efficient equipment, process optimisation, and adopting renewable energy solutions help to reduce our energy consumption and minimise the Group’s overall environmental impact. In Kuantan, our solar installation is a key initiative, enhancing the reliability and sustainability of our energy supply. Own Operations 109 to 110 Financial Materiality Risk Opportunity Timeframe Value Chain Step Page No. Fluctuations in global energy prices and the use of inefficient equipment can drive up our operating costs, occasionally impacting production timelines. Investing in energy‑efficient systems can lower utility costs, enhance operational efficiency, and improve resilience to energy outages or changing energy prices, helping to minimise the duration and impact of any production pauses. Short-term to Medium- term Own Operations 109 to 110 Responsible Supply Chain Practices 7 Supply chain practices that minimise our environmental impacts and support ethical business conduct. Impact Materiality Negative Impact Positive Impact Actual or Potential Value Chain Step Page No. Unfair contract terms and sourcing practices, such as excessively short lead times, can place significant pressure on suppliers and increase the risk of poor labour practices, potentially compromising workers’ financial stability, growth and mental well-being. Effective implementation of responsible supply chain practices drives improvements to the social and labour standards in the supply chain, contributing to improved worker well-being and more sustainable supplier relationships. Upstream Downstream 78 SUSTAINABILITY JOURNEY
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