Integrated Annual Report 2024

Sustainability Statement Sustainability Statement Ensuring a consistently high level of customer satisfaction stands as one of QL’s primary focuses in our strategy to foster brand loyalty and retain customer trust. To uphold and gauge customer satisfaction effectively, QL implements an annual survey initiative through an independent external subject matter expert to obtain valuable feedback from customers on two core brands – QL Eggs and QL Mushroom. The survey is designed to capture insights on various facets of customer experience including taste, freshness, cleanliness and packaging which will provide valuable insights for us to improve our products and services. In FY2024, we retained an overall high level of customer satisfaction rating for QL Eggs and QL Mushroom products, with both brands maintaining more than 99% Fair to Excellent ratings. We continuously monitor customer feedback on our products and services received through various channels. QL strives to address and resolve the feedback in a timely manner. We are committed to enhancing our customer care with a more strategic and responsive approach, as well as improving the accessibility of feedback channels for our customers. Customer Satisfaction Customer Satisfaction Rating for QL Eggs from FY2022 to FY2024 Customer Satisfaction Rating for Mushroom Brand from FY2022 to FY2024 FY2022 FY2022 FY2023 FY2023 FY2024 FY2024 Customer Careline Total Food Quality/Taste Food Healthiness Cleanliness/Hygiene Freshness of Eggs Packaging Appearance Customer Careline Total Food Quality/Taste Food Healthiness Cleanliness/Hygiene Freshness of Frozen Food Packaging Appearance 1 - Bad 2 - Poor 3 - Fair 4 - Good 5- Excellent 1 - Bad 2 - Poor 3 - Fair 4 - Good 5- Excellent 1 1 1 1 1 1 1 1 2 50 27 50 35 25 42 60 59 25 22 40 26 23 26 34 23 21 24 15 14 29 19 31 14 27 15 24 26 27 19 18 16 26 26 31 14 23 14 18 21 20 15 17 16 36 29 38 18 35 55 55 64 52 62 54 54 59 56 52 57 58 55 50 57 48 61 48 55 56 58 50 60 54 59 60 61 55 65 55 49 54 51 55 56 51 27 18 15 21 22 24 30 16 15 16 22 18 29 17 17 19 22 22 28 14 13 12 19 13 28 17 15 18 24 21 26 22 16 24 16 25 50 33 40 1 2 2 3 1 1 2 1 1 1 2 1 2 4 2 1 1 1 1 2 1 1 1 1 1 1 1 1 2 QL has crafted a Supply Chain Policy to establish a set of guidelines governing procurement activities of QL and our suppliers who conduct business with us and on behalf of QL for implementation of a sound supplier management process. Aimed at promoting environmental stewardship, social equity and regulatory compliance, the policy outlines QL’s commitments in working with our suppliers on environmental and social sustainability aspects. While QL places great emphasis on respect for human rights and fair labour practices, our suppliers are similarly expected to uphold ethical standards in their operations. They are encouraged to treat their employees equally, with respect and dignity. This covers prohibition of child, forced and involuntary labour, observation to minimum wage, work hours, overtime and benefits, respect to freedom of association and collective bargaining, and ensuring workplace security, safety and health. Guiding Principles for Socially Responsible Supply Chain Besides sustainable procurement, local sourcing is also a fundamental aspect of QL’s supply chain process, enabling us to bolster local economy while minimising our operational footprint. When feasible and appropriate, QL will prioritise local suppliers and the use of locally sourced materials and services to contribute to national economic growth. As part of our commitment to support local economy development, QL monitors the proportion of our spending on local suppliers. QL defines local procurement as the purchase of goods, services, or works from suppliers using Ringgit Malaysia as the transaction currency. In FY2024, more than 50% of QL’s total procurement spend was on local suppliers. Given that raw materials of animal feed are not accessible locally, our ILF operations often need to procure from outside the country to fulfil our production requirements and ensure a steady supply of materials. Supporting Local Economy Proportion of Spending on Suppliers (%) Local Foreign 51.5 48.5 Supply Chain (Social) • 51.5% proportion of spending on local suppliers Effective management of ESG factors is essential for ensuring sustainable supply chain operations. This approach not only enhances our business value and growth but also benefits the environment and society. Therefore, QL strives to practice a responsible supply chain management process that minimises environmental impacts and at the same time fosters socially responsible management of suppliers and procurement activities. Performance Our Approach SCS QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2024 66 67 SUSTAINABILITY STATEMENT 5 SEC.

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