STATEMENT SUSTAINABILITY ANNUAL REPORT 2024 57 CLIMATE CHANGE & ENERGY WHY IS THIS IMPORTANT? Climate change, demonstrably one of the most pressing global matters and primarily caused by greenhouse gas (“GHG”) emissions, continues to exacerbate with extreme weather events disrupting daily lives. Its far-reaching effects disrupt not only the environment, but also social and economic systems, impacting the well-being of communities and businesses worldwide. We are committed to supporting the national climate agenda of achieving carbon neutrality by 2050. This commitment aligns with Malaysia's Nationally Determined Contribution (“NDC”) under the Paris Agreement, which targets a significant 45% reduction in GHG emissions by 2030. At Datasonic, addressing climate change is crucial for business sustainability. Climate change presents physical and transitional risks that may affect our business operations and supply chain, drive up our costs, and impact our ability to deliver long-term value to stakeholders. By addressing these risks and reducing our carbon footprint, we can protect our business, and continue to deliver value for our stakeholders. PHYSICAL RISK Major disruption and losses due to physical damages incurred by extreme weather events. TRANSITION RISK Reputational, compliance or market challenges stemming from the global transitions towards a lowcarbon economy. OUR APPROACH We are dedicated to mitigating our environmental impact and transition to a low-carbon economy. The Group's Environmental Commitment and Sustainability Policy outline our pledge to combat climate change, and we are taking concrete steps to achieve this goal. The Group’s primary source of GHG emissions is electricity consumption. As such, we focus on efficient energy management as a key pillar of our climate action strategy: 1. We track energy use and GHG emissions data across our sites. This data empowers our teams to pinpoint areas for improvement and implement targeted strategies. 2. We have a designated person-in-charge who oversees plant operations, sustaining efficient energy utilisation. 3. We prioritise energy-efficient appliances, equipment, and lighting systems throughout our facilities. 4. We undertake regular maintenance to ensure the Group’s equipment and machinery operate at optimal efficiency levels. 5. We incorporate sustainability into product development, favouring designs that are smaller, more efficient, and lower in energy consumption. 6. We establish clear objectives, such as reducing instances of non-compliance with electricity-saving measures every quarter. We implement a Non-Conformance Report (“NCR”) system to address and rectify any instances where these goals are not met. 7. We promote energy-saving practices among employees. This includes reminders to switch off lighting and equipment when not in use, and to give precedence to paperless solutions whenever possible. As we move ahead, we seek to integrate climate-related risks and opportunities into our risk management framework. We also plan to set GHG reduction targets, and explore renewable energy sources, particularly solar power, to significantly reduce our carbon footprint. Furthermore, we are committed to transparent reporting as we seek to align our disclosures with the Task Force on Climate-Related Financial Disclosures (“TCFD”) recommendations.
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