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ENVIRONMENTAL

BIODIVERSITY

At Wang-Zheng Berhad, we recognise biodiversity as a critical component of sustainable development and environmental stewardship. We acknowledge that our operations, particularly those related to the sourcing of fibre-based raw materials and manufacturing activities, may potentially impact natural ecosystems. As such, we are committed to managing and minimising our biodiversity footprint throughout our operations and supply chain.

To address this, Wang-Zheng Berhad has adopted the following commitments

COMMITMENTS

Identification and Assessment
We will progressively identify and assess potential impacts of our operations on local biodiversity, particularly in areas of high ecological value or near sensitive ecosystems.
Impact Avoidance and Minimisation
We are committed to avoiding significant negative impacts on biodiversity wherever possible. Where avoidance is not feasible, we will implement measures to minimise, mitigate, or restore affected ecosystems.
Sustainable Sourcing
We are committed to procuring certified sustainable raw materials (e.g., FSC-certified), ensuring that our supply chain does not contribute to deforestation, habitat destruction, or illegal logging activities.
Compliance and Continuous Improvement
We will comply with all applicable biodiversity-related laws and regulations in our areas of operation and will seek to align with best practices and international standards.
Stakeholder Engagement
We will engage with suppliers, communities, and relevant stakeholders to support collaborative efforts in biodiversity conservation and sustainable land use management.
Monitoring and Reporting
We will work towards establishing measurable biodiversity-related targets and integrating biodiversity risk monitoring into our broader environmental management systems.

This commitment underscores our commitment to reducing biodiversity loss, maintaining ecosystem services, and supporting long-term environmental and business sustainability.

Our Commitment Progress

While a group-wide biodiversity commitment is currently being formalised, Wang-Zheng Berhad demonstrates its commitment through two main channels:

  • responsible sourcing via FSC certified subsidiaries and
  • indirect biodiversity benefits through investments in renewable energy infrastructure
  1. Addressing the Issue Through Sustainable Sourcing

    2. As of 2025, two key subsidiaries—Modern Alpine Sdn Bhd and New Top Win Corporation Sdn Bhd—have obtained Forest Stewardship Council (FSC) certifications. This ensures that the 100% of the virgin pulp used in our products originates from sustainably managed forests that protect high conservation value areas, prevent illegal logging, and respect indigenous rights. These certifications signal a clear alignment with global expectations on ecosystem preservation and responsible forestry.

  2. Reducing Impact via Renewable Energy Integration

    3. In parallel, our industrial arm, Quality Hero Corporation Sdn. Bhd. has taken significant steps to reduce its environmental footprint by investing in solar energy systems under Malaysia’s NEM NOVA scheme. The solar PV installations across multiple factory lots in Shah Alam with a combined installed capacity exceeding 1.467 MWp support self-consumption and lower dependence on fossil-based energy.

      In recognition of these efforts, the company has been granted Investment Tax Allowance (ITA) under Malaysia’s Green Technology Incentive framework, further validating our strategic direction.

    Climate Change

    ESG REMUNERATION FRAMEWORK

    Our ESG-Linked Remuneration Framework acts as a strategic driver in advancing sustainable development. By aligning incentive components with sustainability targets, it reinforces our steadfast commitment to stakeholders and drives catalytic change across the Group. The ESG Remuneration Framework supplements our existing remuneration policies by aligning the current remuneration of selected senior management personnel with the sustainability targets. These targets are assessed through a balanced scorecard and modifier approach, providing a structured and measurable basis for evaluation.

    The ESG Remuneration Framework applies to selected members of Key Senior Management — including the Group CEO — as well as Key Operating Management and the Head of Group Sustainability. We intend to extend this remuneration structure to include our employees, considering the variability in their compensation and the level of accountability associated with their roles.

    The ESG Remuneration Framework covers the following 4 ESG performance metrics as indicated below:

    GHG Emissions Performance Zero Workplace fatalities Zero Workplace LTIR Average Training Hours per Employee

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    The company is working to decarbonise its future capital expenditures

    At present, Wang-Zheng Berhad (WZB) has not publicly disclosed a formal policy or methodology to align all future capital expenditures with its long-term GHG targets or the Paris Agreement’s 1.5°C objective.

    However, the Group has already demonstrated its intent to support decarbonisation through significant capital allocation towards renewable energy solutions, having contributed more than RM 6 million for solar implementation projects at its manufacturing facilities. These investments aim to reduce Scope 2 emissions, lower energy costs, and enhance energy security, and are aligned with Malaysia’s National Energy Transition Roadmap (NETR) objectives to accelerate the country’s shift towards a low-carbon economy.

    WZB is currently reviewing its capital expenditure governance framework to embed science-based GHG reduction criteria into future investment decisions. The objective is to ensure that all major projects undertaken from FY2025 onwards are consistent with the Group’s decarbonisation roadmap, including the planned establishment of a Scope 1 & 2 baseline and emissions intensity reduction targets.

    Pollution & Resources

    Disclosure of three years of waste recycled (tonnes) - paper (Metric Tonnes)

    Current Year - until July 2025 (MT)
    Current Year waste recycled Paper KRP Kraff Colour 41.888
    Paper WF White 1.366
    T minus 1 Year 2024 (MT)
    T minus 1 Year waste recycled Paper KRP Kraff Colour 95.008
    Paper WF White 5.209
    T minus 2 Year 2023 (MT)
    T minus 2 Year waste recycled Paper KRP Kraff Colour 66.245
    Paper WF White 5.328

    Total costs of environmental fines and penalties during financial year

    Wang-Zheng Berhad (WZB) confirms that it has not incurred any environmental fines or penalties from FY2022 to FY2025. This reflects the Group’s ongoing commitment to regulatory compliance and adherence to environmental management standards across its operations.

    Percentage of Sites Covered by Recognised Environmental Management Systems (ISO14001/EMAS/Other)

    Current Status Coverage (%)
    100% (3/3) of manufacturing/processing sites hold recognised and valid certifications (ISO 14001). 100% (3 out of 3 manufacturing sites)
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    Note:
    Most of the data presented is as of July 2025 and may be updated upon the close of the fiscal year. For the latest ESG disclosures, please refer to our most recent Sustainability Statement and Corporate Governance Report    .