Our Sustainability

Environmental, Social and Governance (ESG)

The Board of Hextar Global Berhad (HGB) believes that introducing Environmental, Social and Governance (ESG) considerations in its business decisions is essential to achieve long term business success besides creating value for all its stakeholders, act as a strategic approach to support and empower communities, encourage social inclusivity and improve the environment. In terms of climate change, Hextar is committed to reinforcing the efforts towards decarbonization pathway while ensuring long-term value creation for the organization.

The balancing of ESG with the interests of stakeholders is essential in improving investor perception and public trust that works towards value enhancement for stakeholders in the long run. Climate change, directly and indirectly, affects our profitability and sustainable growth. It is crucial to protect these by mitigating and adapting to climate related risks.

HGB also believes that as a responsible corporate citizen, one would have an obligation in making the earth a better place to live in through responsible investing, besides weighing on an appropriate risk-return profile for its investments. Accordingly, HGB incorporated its principles of sustainability in its ESG policy and in line with our core values of Integrity, Loyalty and Hard Work.

FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index.

Our efforts to be a responsible and sustainable organization have enabled us to be included as a constituent in the FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index since June 2023. FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Hextar Global Berhad has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

What our Managing Director Say

"Hextar Group is committed to meeting the target of Net Zero Carbon Emissions by 2050, aligned to Malaysia's national aspirations and in support of the Sustainable Development Goals (SDGs) on Climate Action."

"As we look into the future, we hope to achieve the Net Zero target through investing in low-carbon efficient technologies and renewable energy. We hope to continuously report our progress as an organization towards meeting this goal in the future."

MS. LEE CHOOI KENG

Group Managing Director

ESG AT A GLANCE

ENVIRONMENTAL SUSTAINABILITY GOALS

GHG Emissions Initiatives

To achieve NET ZERO Carbon Emissions by 2050

To generate AT LEAST 10% electricity at manufacturing facilities from renewable energy source by 2030.

Our Solar PV installations at our manufacturing facilities in Pulau Indah, Selangor; Raub, Pahang; and Kemaman, Terengganu, as well as our corporate office in Klang, Selangor, continue to generate renewable electricity for our own operational use.

During FY2025, we successfully commissioned a new Solar PV system at our Kemaman, Terengganu manufacturing facility with a design capacity of 65.34 kWp, further expanding our renewable energy portfolio and increasing our on-site renewable electricity generation.

As of 31 December 2025, renewable energy generated from our Solar PV systems accounted for 16.91% of the total electricity consumption across our manufacturing facilities. This surpasses our initial target of generating 10% of manufacturing electricity from renewable energy sources, reflecting our commitment to accelerating the transition towards cleaner energy and achieving our long-term sustainability goals.

To reduce 10% of our absolute GHG emissions for Scope 1 and Scope 2 by 2030 with FY2024 as a baseline.

We are pleased to announce that, as of the end of FY2025, we have reduced our absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 6.9% compared with our FY2024 baseline. This represents significant progress towards achieving our target of a 10% reduction by 2030.

To reduce Class I product portfolio from base data of 4.34% to 2.05% and Class II product portfolio from 24.7% to 22.50% by year 2026.

Class	Base Data	2025 Target	2025 Actual	Performance	2026 Goal
Class I (Highly Poisonous)	4.34%	2.73%	2.17%	20.59%	2.05%
Class II (Poisonous)	24.66%	19.41%	26.56%	-36.83%	22.50%
Class III (Harmful)	50.14%	53.82%	49.86%	-7.35%	52.50%
Class IV (Least Toxic)	20.87%	24.04%	21.41%	-10.94%	22.95%

GHG EMISSIONS

In FY2025, the Group continued to collect the GHG data. Append below is the Group total GHG emission in Metric Tones of CO2 equivalent.

INDICATOR	UNIT OF MEASUREMENT	FY2025 (MT)	FY2024 (MT)	FY2023 (MT)
GHG Emissions
Scope 1	Tonnes CO2e	549	459	410
Scope 2	Tonnes CO2e	2,468	2,780	2,051
Scope 3
Employee commuting	Tonnes CO2e	596	597	472
Business Travel (Land)	Tonnes CO2e	423	572	489
Business Travel (Air)	Tonnes CO2e	105	153	73
TOTAL Scope 1+2	Tonnes CO2e	3,017	3,239	2,461
TOTAL Scope 3	Tonnes CO2e	1,124	1,323	1,034
TOTAL Scope 1+2+3	Tonnes CO2e	4,141	4,562	3,495

Note:

Scope 1 emissions cover the emissions from natural gas consumption from our production facilities.
Scope 2 emissions cover purchased electricity from our production facilities and corporate offices and location- based calculation method is used.
Carbon emissions from purchased electricity (Scope 2) are calculated based on the emission factors from Grid Emission Factor (GEF) in Malaysia, 2022-2024 (Provisional) [https://myenergystats.st.gov.my/documents/d/guest/grid-emission-factor-gef-in-malaysia-2022-2024-provisional-]
Carbon emissions for Scope 3 – Bussiness travel and employee commuting are from Greenhouse gas reporting: conversion factors 2025 by Department for Environment, Food and Rural Affairs.(“DEFRA”)

Materiality	Risk	Opportunities
Energy & Climate Change	Non-compliance with existing and environmental/climate-related regulations leads to financial penalties and legal action. Inadequate climate adaptation and mitigation may cause physical assets damage, financial loss and business disruption. Consumers are increasingly concerned about environmental responsibility. Non-compliance can damage Hextar's reputation as a sustainable and environmentally conscious company.	Effective mitigation and adaptation strategy ensures business continuity. Demonstrating a commitment to environmental compliance can strengthen Hextar's brand image and attract environmentally conscious customers and investors. In some industries, environmental compliance can be a competitive differentiator, allowing Hextar to gain an edge over competitors who are not as compliant.
Water Management	Poor water management leads to higher costs and potential scarcity of water resource	Efficient water management may reduce operational costs and promote water conservation behaviour.
Waste Management & Environmental Compliance	Non-compliance with environmental regulations result in consequences from authorities and activists	Waste reduction and increased resource efficiency can result in cost savings for operations.
Diversity, Equity and Inclusion (“DEI”)	Failure to meet DEI practices may damage Hextar’s reputation	Inclusive, diverse and empowering work culture attracts talents and brings a range of viewpoints that enhances the quality of decision making.
Employee Management & Human Rights	Disengaged and underdeveloped employees contribute to lower productivity and performance. Unattractive benefits and remuneration affect employee’s motivation. Breaches in human rights practices lead to regulatory penalties, impact employee retention and culture, and damage reputation	Effective talent development and upskilling programmes with attractive benefits packages enable us to retain and attract top-quality industry talent as well as contribute to a high-performance culture Strong human rights practices reinforce Hextar’s reputation as a responsible employer
Occupational Health & Safety	Accidents and injuries in workplace lead to productivity loss, legal repercussions such as penalties and reputational damage	Strong safety culture with conducive working environment improves employee’s well being and productivity, and maintains Hextar’s reputation
Community Contribution	Failing to do so could lead to a negative public perception of Hextar, potentially impacting brand image and customer loyalty.	Regular engagements through community impact programmes strengthens our relationship with local communities
Corporate Governance	Poor corporate governance practices may tarnish Hextar’s reputation and image	Effective corporate governance practices enhance Hextar’s reputation as a trustworthy company amongst stakeholders
Economic Performance	Fluctuations in the global or regional economy, such as recessions or inflation, can significantly impact Hextar's revenues, costs, and overall profitability. Increased competition from existing or new businesses can put pressure on Hextar's pricing strategies, market share, growth and profit margins.	Expanding into new markets or identifying emerging markets with favourable economic conditions can open up new revenue streams and opportunities for Hextar.
Quality assurance and product recognition	Compromised product quality can lead to product recalls, safety incidents, and potential lawsuits, harming both Hextar's reputation and customer trust.	Consistent delivery of high-quality products leads to satisfied customers, fostering loyalty and recurrent business dealings.
Supply Chain Management	Suppliers’ and contractors’ non-compliance to Hextar’s ethical principles, and safety culture exposes the business to operational disruptions	Regular supplier assessment, including environmental and social assessment upholds Hextar’s commitment and high standards towards environmental and social aspects
Cybersecurity & Data Protection	Exposure of sensitive customer or company data (e.g., financial information, intellectual property, trade secrets) due to cyberattacks or security vulnerabilities. This can lead to financial losses, regulatory fines, reputational damage, and legal action.	Enhanced brand trust by demonstrating a strong commitment to data security can build trust and confidence with customers, partners, and investors.
Customer Satisfaction	Inability to meet customers’ expectations impact customers’ confidence and loyalty which leads to lower revenue. Cyber threats including breach of customers’ data may lead to loss of customer trust and reputational harm	Regular customer engagements facilitate continuous improvement to meet customers’ expectation

Additionally, we strive to meet the standards of global sustainability indices to improve our governance and disclosures on sustainability related risks in meeting our stakeholder expectations.

ENVIRONMENTAL COMPLIANCE

Environmental policies are put in place in our operations to govern our environmental management. The criteria for our environmental management are laid forth in ISO 14001 and 45001 Environmental, Health and Safety Management System Standards. In addition to our internal policies, we are committed to adhere to all applicable environmental laws and regulations, which include: -

Laws and Regulations	Our Commitments
Wastewater Discharge Environmental Quality (Industrial Effluent) Regulations, 2009	Monthly water effluent lab test by third party Compliance to Industrial Effluent Registration (Tenth Schedule) Conduct of Chemical Oxygen Demand test via weekly waste water analysis
Scrubber System Environment Quality (Clean Air) Regulations 2014	Appointment of a competent person for scrubber system Conduct of Air Emission Monitoring Conduct of Local Exhaust Ventilation (“LEV”) Assessment
Waste Disposal Environmental Quality Act 1974 Environmental Quality (Scheduled Wastes) Regulations, 2005	Disposal of general waste to regulated landfills Disposal of scheduled waste to approved disposal facility Erection of scheduled waste storage cage bund Adoption of e-consignment note for scheduled waste
Noise Exposure Environmental Quality Act, 1974 Occupational Safety and Health (Noise Exposure) Regulations 2019	Conduct of Boundary Note Measurement Conduct of Noise Risk Assessment Conduct of Baseline and Annual Audiometric Testing
Chemical Management Occupational Safety and Health (Use and Standards of Exposure of Chemicals Hazardous to Health) Regulations 2000 Occupational Safety and Health (Classification, Labelling and Safety Data Sheet of Hazardous Chemicals) Regulations 2003	Registration of chemical raw material and finished goods Proper labelling on all products Preparation of Personal Protective Equipment (“PPE”) for workers in production Conduct Chemical Health Risk Assessment and training on Hazard Logo Identification as well as PPE Usage for all production staff Usage on enclosed mixing system with vacuum system and scrubber system Installation of LEV system
Poison Management Environmental Quality Act, 1974 Poison Act Regulation, 1952 Department of Environment Guided Self-Regulation ("GSR")	Adoption of poison signed order form and poison wholesale sales book Registration of poison license Implementation of ISO 14002:2015 Policy Maintenance of effluent treatment plant and scrubber system Formulation of Environmental Performance Monitoring Committee and Environmental Regulatory Compliance Monitoring Committee Identification of competent person on: - Certified Environmental Professional in Scheduled Waste Management (CePSWaM) Certified Environmental Professional in the Operation of Industrial Effluent Treatment. Systems (Biological Processes) (CePIETSO-BP) Certified Environmental Professional in the Operation of Industrial Effluent Treatment Systems - Physical Chemical Processes (CePIETSO-PCP) Certified Environmental Professional in Scrubber Operation (CePSO) Transparency of information on eco-labelling products

SOCIAL SUSTAINABILITY GOALS

30% of the Board are women by year 2025
Achieved 33% women directors in the Board as at 31 December 2025.

30% of Top Management are women by year 2030
33% of Top Management are women as at 31 December 2025.

ZERO tolerance to discrimination, harassment, violence, forced labour and child labour in the workplace.
ACHIEVED ZERO incidences of discrimination or any violence in labour law in FY2025.

ZERO incidence of fatalities
ACHIEVED ZERO incidences of fatalities in FY2025.

ZERO tolerance to avoidable incidence of work-related injuries
ACHIEVED ZERO incidences of work-related injuries in FY2025.

ALL MANUFACTURING COMPANIES to be ISO 45001:2018 certified by 2030
Currently HEXTAR CHEMICALS SDN BHD (“Hextar Chemicals”),
CHEMPRO TECHNOLOGY (M) SDN BHD (“Chempro”),
ALPHA AIM (M) SDN BHD (“Alpha Aim”), and
HEXTAR KIMIA SDN BHD (“Hextar Kimia”) are certified with ISO 45001:2018

As of 31 December 2025, 50% of our manufacturing companies are certified with ISO 45001:2018.

LABOUR PRACTICES AND STANDARDS

WORK-RELATED INJURIES (EMPLOYEES)

Description / Years	FY2025	FY2024	FY2023
Hours Worked	883,285	1,060,965	1,050,185
Work Related Injuries	0	0	3
List Time Incident Rate	0.00	0.00	0.57
Work Related Fatalities	0	0	0

Hextar's ultimate goal is to ensure all workers return home safely each day. We strive for zero fatalities annually by actively preventing and minimizing workplace incidents. In FY2024, we are proud to note that we achieved our goal of having zero incidences of reported injuries.

WORK-RELATED INJURIES (CONTRACTORS)

Description / Years	FY2025	FY2024	FY2023
Work Related Injuries	0	0	0
Work Related Fatalities	0	0	0

Under our stringent control on occupational safety and health affairs in Hextar Group, we are pleased to inform that we have successfully achieved our goal of having zero incidences of fatalities for contractors providing services to Hextar.

EQUAL TREATMENT IN WORKFORCE

Labour Rights Policy

To protect employee’s human rights from the areas of forced labour, child labour and discrimination, with the inclusion of clear line of responsibilities for the Board, managers, supervisors and all employees.

Non-Discrimination Policy

To ensure that all employees are treated equally. Investigation will be conducted for any discrimination reported and disciplinary and corrective action will be taken, where appropriate.

Workplace Harassment Policy

To provide a safe, healthy and harassment-free working environment. Hextar has zero-tolerance to any form of harassment. Disciplinary measure will be taken for any breach of this policy.

Dispute Resolution Policy

To support prompt and fair resolution of all disputes of any nature. Employees should discuss any problems or concerns promptly with their immediate supervisor, or Head of Human Resource, if necessary, to resolve such issue.

These policies are available for reference at the Human Resource Department, or on our website at https://www.hextarglobal.com/ir.php in both English and Malay.

GOVERNANCE SUSTAINABILITY GOALS

ZERO tolerance to bribery or corruption
ACHIEVED ZERO bribery or corruption case in FY2025
There was no incident of bribery or corruption FY2025

ETHICAL AND TRANSPARENT BUSINESS CULTURE AND PRACTICES

In fostering our business towards SDG 16, our people and operations are guided by the following policies implemented across the Group:-

Corporate Code of Conduct & Ethics ("Code")

Employees are required: -
1. To act honestly and legally at all times;
2. To avoid any conducts that could risk or damage the Group’s reputation;
3. To ensure confidentiality of the Group’s information; and
4. To avoid personal interest being ahead of the Group’s interest.
All applicable laws, rules and regulations must be adhered to accordingly.
Any conflict of interest must be avoided/ disclosed promptly.
Disclosure of confidential information to unauthorised personnel and insider trading are strictly prohibited.
All employees must not engage in any fraudulent or dishonest activity.
Discrimination and harassment in workplace are prohibited.

Anti-Bribery and Corruption Policy ("ABCP")

As per the Malaysian Anti-Corruption Commission Act 2009 and the Guidelines on Adequate Procedures issued by the Prime Minister’s Department, the ABC Policy was introduced as part of the Group’s commitment to good corporate governance and to eradicate any form of bribery and corruption.
The Group has zero-tolerance against all forms of bribery and corruption.
The Group is committed to acting professionally, fairly and with integrity in all business relationships and dealings.
Head of Compliance Unit in the Group, Abdul Wahid Bin Abu Bakar has been recognized and commissioned as Certified Integrity Officer (CeIO) by Malaysian Anti-Corruption Academy.
Due diligence shall be conducted before entering into any formalised relationship.
"No Gift" policy is implemented.
Facilitation payments are strictly disallowed.

Whistle Blowing Policy

To make report for any suspected and/or known fraud or unethical/improper conducts.
For every disclosure made in good faith, all concerns or complaints raised will be treated fairly and with confidentiality in order to protect the whistleblower.
The whistleblowing policy has been made aware to all employees under Hextar through mandatory orientation programme which were attended by all employees.
Investigation will be conducted and appropriate disciplinary actions will be undertaken, if applicable. For year under review, we recorded zero whistleblowing case.

Supply Chain Policy

The policy acts as a best practice approach to sustainable procurement and sets out the guiding principles in our supplier selection process, which prioritizes suppliers who adopt sustainability practices in their organizations and business dealings especially in the area of :-
1. Energy use
2. Climate change
3. Water use
4. Biodiversity impacts
5. Pollution
6. Waste reduction
7. Resource use
Hextar’s suppliers are expected to comply with all applicable laws, codes or regulations of the countries, states and localities in which they operate.
Suppliers must also ensure that their own vendors, including temporary labour agencies, are in compliance with such laws and regulations. They must also align their practices with any published standards for their industry.

These policies are available for reference on our website at https://www.hextarglobal.com/ir.php

Hextar Global Berhad is committed to

The United Nations Sustainable Development Goals (UN-SDG) and Malaysia’s Shared Prosperity Vision 2030 (SPV2030) towards decarbonization pathway while ensuring long-term value creation for the organization. As part of our commitment to sustainable and responsible business practices, Hextar Global Berhad has embedded the Ten Principles of the United Nations Global Compact into strategies and operations, and committed to respecting human and labour rights, safeguarding the environment, and working against corruption in all its forms.

End poverty in all its forms everywhere.

End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

Ensure healthy lives and promote well-being for all at all ages.

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Achieve gender equality and empower all women and girls.

Ensure availability and sustainable management of water and sanitation for all.

Ensure access to affordable, reliable, sustainable and modern energy for all.

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

Reduce inequality within and among countries.

Make cities and human settlements inclusive, safe, resilient and sustainable.

Ensure sustainable consumption and production patterns.

Take urgent action to combat climate change and its impacts.*

Conserve and sustainably use the oceans, seas and marine resources for sustainable development.

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat dessertification, and halt and reverse land degradation and halt biodiversity loss.

Promote peaceful and inclusive societies for sustainable development, proivde access to justice for all and build effective, accountable and inclusive institutions at all levels.

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development.

Our Business

Our Sustainability

Environmental, Social and Governance (ESG)

FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index.