Sustainability Policy Statement

The governance structure described highlights the roles and responsibilities at different levels within the organisation to ensure effective oversight and management of Timberwell Berhad’s (“TWB” or “Company”) sustainability initiatives, particularly with respect to Environmental, Economic, Social, and Governance (“EESG”) matters, including climate-related issues.

Board of Directors (“Board”)

The Board holds ultimate responsibility for overseeing the Company’s sustainability efforts, with a particular focus on EESG and climate-related issues. The Board ensures that the sustainability strategy is aligned with the Company's long-term goals, regulatory requirements, and industry standards. The Board's role is more strategic and supervisory, ensuring that there is accountability and transparency in the Company's sustainability efforts.

Executive Committee (“EXCO”)

The Executive Committee, led by the Chief Executive Officer (CEO), is tasked with the day-to-day strategic management of the company’s sustainability initiatives. EXCO acts as the Sustainability Steering Committee and is responsible for translating sustainability goals into actionable plans. The committee works closely with senior management and other departments to implement initiatives that align with the Company’s sustainability objectives.

Key Board-Level Committees Supporting Sustainability Oversight

Two board-level committees are directly involved in the support of sustainability:

• Audit Committee: This committee is responsible for reviewing the Company’s sustainability statement and disclosures. It ensures that the company's sustainability reporting is accurate, reliable, and meets legal and regulatory standards. The Audit Committee also oversees the integrity of the financial and non-financial data related to sustainability.
• Risk Management Committee: This committee is tasked with assessing and managing the sustainability risks, including climate-related risks. It works with EXCO to evaluate how environmental, social, and governance factors might impact the Company’s operations, strategy, and long-term viability. The Risk Management Committee also monitors how these risks are mitigated and managed across the organisation.

Division Heads

The heads of various divisions within the company are responsible for implementing the sustainability initiatives on a day-to-day basis. They execute the sustainability strategies and ensure that activities within their divisions align with the Company's overall sustainability goals. These division heads regularly report their progress and any challenges to the CEO, ensuring that the EXCO remains informed and can make adjustments to the strategy if needed.

Statement of Assurance by Internal Auditor

To strengthen the credibility of the sustainability statement and disclosures. All the sustainability statements and disclosures, including climate-related matters, are subject to an internal review by the Internal Auditor on a yearly basis and subsequent approval by the Audit Committee.

ECONOMIC/GOVERNANCE	ENVIRONMENT	SOCIAL
• Adopt Principles of Proportionality and Transparency	• Consider Climate-Related Risks and Opportunities	• Provide an environment that is free of discrimination
• Enhance availability of decision useful EESG information	• Embrace responsible energy and resources in daily operations	• Promote Diversity, Equality and Inclusion at the workplace
• Strengthen the Governance to prevent Corruption, Misconduct, and Fraud in line with the Malaysian Anti-Corruption Commission Act 2009	• Inculcate environmentally sustainable practices among employees	• Promote integrity and human rights
• Adopt the Health and Safety practice at the workplace by improving the working environment and facilities for safe and conducive workplace.	• Disclose environmental data, performance & targets	• Attract and retain talent
• Protect buyers’ sensitive information and prevent data breaches Policy in accordance with the Malaysia’s Personal Data Protection Act 2010	• Promote good environmental practices among the supply chain	• Comply with the fundamental requirements of the prohibition of child labour, forced labour, slavery, involuntary prison labour, and human trafficking

TWB’s Commitments:-

• Balance EESG aspects of our business decision-making with the interests of various stakeholders essential to enhancing investor perception and public trust;
• Ensure continuous and on-going efforts are carried out to establish practices of environmental sustainability throughout the company;
• Promoting responsible procurement practices and strengthening the resilience of our supply chain by integrating environmental mitigation requirements such as 1) prohibition of activities along river or stream reserves 2) restrictions on open burning and 3) protection of wildlife. Our sustainability expectations align with our commitment to socially and environmentally responsible practices and are clearly communicated and extended to all stakeholders in our supply chain.
• Create a workplace where diversity and equality of opportunity are actively promoted and unlawful discrimination, bribery, and corruption are not tolerated;
• Promote a healthy, safe, and productive working environment; Prohibition of forced labour, child labour, slavery, human trafficking, and sexual harassment;
• Segregation of non-recyclable and recyclable waste and monitoring for improving waste management efficiency;
• Advocating the use of paperless documents by going digital and increasing reliance on digital documents; Promote awareness on paper reuse, recycle to produce less waste, and increase recycling and environmental sustainability;
• Reduce our energy and water utilisation on a fair and compatible basis;
• Managing GHG emissions by improving energy efficiency by replacing energy-saving appliances in our operation offices;
• Investing in low emissions and green technologies by increasing reliance on renewable energy to reduce dependency on electricity generated from a diesel generator;

TWB’s Objectives:--

• Investor Confidence: By integrating EESG factors into core business practices, the company enhances its reputation as a responsible and sustainable entity, which can attract socially conscious investors.
• Employee Satisfaction and Retention: A commitment to diversity, equality, health, safety, and ethical working conditions fosters a positive workplace culture that can lead to higher employee engagement, retention, and productivity.
• Cost savings: Investments in energy efficiency, waste management, and digital transformation can lead to substantial cost savings over time by reducing resource consumption and improving operational efficiency.
• Regulatory Compliance: With increasing regulatory scrutiny on environmental and social governance, adopting these practices ensures that the company complies with current and future regulations, minimising legal risks.
• Long-Term Sustainability: By prioritising environmental and social sustainability, the company positions itself for long-term growth, contributing positively to society and the planet while building brand loyalty among consumers and stakeholders.

These initiatives are essential to building a sustainable business that creates long-term value not only for the company but also for its employees, investors, and the broader community.

* The Sustainability Policy may be reviewed regularly by the Board of Directors to ensure its relevancy.