1.

This policy aims to outline the framework in promoting sustainability. In order to enhance stakeholders’ perception and public trust towards the Group, the Board recognises the importance of addressing environmental, social and governance (“ESG”) aspects of business which underpin sustainability and relate these aspects to the interests of various stakeholders.

In March 1987, the United Nation’s World Commission on Environment and Development described sustainability development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Consistent with this principle, we at Melati Ehsan Holdings Berhad (the “Group”), will consider the impacts of our business and management processes on ESG and evaluate their magnitude before determining our business course of action.

In this respect, we are committed to:

1. Improving the quality of the environment;
2. Enhancing the management and conservation of resources, including materials, water, energy and paper;
3. Properly managing and reducing waste;
4. Continuously improving safety and health in our workplace;
5. Creating a positive and supportive workplace for our employees;
6. Supporting and serving those in need within the community in which we operate;
7. Practicing ethical and fair business principles; and
8. Ensuring compliance with regulatory requirements.

The Board is responsible for establishing and overseeing the sustainability framework of the Group. This includes:

1. Setting sustainability goals and targets aligned with the Group’s mission;
2. Approving the budget for sustainability initiatives;
3. Reviewing and approving sustainability initiatives to ensure a balance between shareholder value and sustainability expectations;
4. Approving sustainability disclosures and reports;
5. Assessing results from sustainability assurance and identifying areas for improvement; and
6. Staying informed about sustainability issues and trends relevant to the Group.

The Executive, Risk Management and Sustainability Committee (“EXCO”) advises the Board and manages the Group’s sustainability matters. The EXCO’s responsibilities include:

1. Overseeing the identification and management of material ESG risks and opportunities;
2. Ensuring the appropriate allocation of resources and processes to achieve sustainability targets;
3. Recommending sustainability related policies and initiatives for Board approval;
4. Monitoring the implementation of the sustainability policies and initiatives approved by the Board;
5. Overseeing the preparation of sustainability disclosures and reports; and
6. Managing stakeholder engagement to ensure alignment with sustainability objectives.

Management is tasked with executing the Group’s principles of sustainability, and is responsible for:

1. Aligning the Group’s sustainability commitments with the operational strategies;
2. Identifying initiatives and resources for achieving sustainability targets;
3. Assessing the feasibility and impact of sustainability projects;
4. Proposing sustainability initiatives to the EXCO;
5. Communicating sustainability targets and metrics to relevant stakeholders;
6. Coordinating with external verification and assurance providers;
7. Reviewing ongoing sustainability initiatives and recommending improvements;
8. Reporting on the status of sustainability initiatives implementations and actions to the EXCO; and
9. Maintaining the Group’s sustainability policy on the corporate website.