105 SUSTAINABILITY STATEMENT Integrated Annual Report 2025 SUSTAINABILITY STATEMENT SUSTAINABLE SUPPLY CHAIN Risk Area Risk Rating Risk Tolerance Level Poor Environmental Due Diligence is a risk as inadequate ESG and environmental assessments during acquisitions may result in exposure to issues such as flood risks, land contamination, or other environmental constraints. A sustainable supply chain is essential to the long-term resilience and value creation of the REIT. As a healthcare-focused REIT, Al-`Aqar recognises that the ESG performance of the vendors and business partners directly influences operational continuity, regulatory compliance, and reputational integrity. Accordingly, the REIT integrates ESG considerations into supplier engagement and oversight to manage risks and support responsible, long-term partnerships across the value chain. Beyond its own operations, the REIT recognises that sustainable supply chains enhance risk resilience by reducing exposure to supply disruptions and reputational risks arising from non-compliant or unethical practices. Over the last years, the REIT conducted Environmental, Climate, and Social Risk Assessment Survey for Vendors on the adherence to environmental regulations, climate resilience strategies, sustainability practices, labour law compliance, and human rights protections. Besides, vendors are required to declare their compliance with, and commitment to continue complying with, the ESG requirements established by the REIT, including all applicable laws, regulations, and guidelines in Malaysia. The compliance declaration covers the following areas: Environmental Compliance Social Compliance Governance Compliance • To comply with all applicable environmental laws and regulations relating to waste management, emissions, hazardous materials handling and environmental permitting. • To minimise pollution, carbon emissions, energy usage, water consumption and waste generation. • To implement reasonable mitigation measures for climate-related risks, in line with good industry practice. • To uphold human rights and fair labour practices including prohibition of forced labour, child labour, discrimination and harassment. • To provide wages, working hours, as well as a safe and healthy working environment in accordance with Malaysian labour laws and the Occupational Safety and Health Act. • To respect freedom of association, collective bargaining and lawful employee representation. • To operate with integrity, transparency, and in compliance with all applicable anti-corruption and anti-bribery laws in Malaysia. • To not offer, solicit or accept bribes, kickbacks, facilitation payments or improper gifts.
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