28 July 2022

To our stakeholders:

I am pleased to confirm that Plus Xnergy Holding reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Sincerely,
Ko Chuan Zhen
Group CEO & Co-Founder, Plus Xnergy Holding

At Plus Xnergy, we treat everyone with respect and dignity. Treating one another with respect and dignity is a core responsibility and helps maintain an inclusive workplace in which all Employees are given the opportunity to demonstrate their full potential. The company is committed to adhering to the Employment Act 1955 (“the EA”) and all other employment-related sources of law in Malaysia, which shall be applicable in the (1) Peninsular Malaysia and the Federal Territory of Labuan, (2) Sabah, and (3) Sarawak. Also, we are committed to respecting and upholding the eight core conventions set out by the International Labour Organization's (“ILO”) Declaration on Fundamental Principles and Rights at Work highlighted elements that include freedom of association, non-discrimination among others.

We expect our employees to uphold and practice the following elements to adhere to human rights:

Diversity & Inclusion

Anti-Harassment & Discrimination

Diversity & Inclusion

Plus Xnergy is committed to fostering, cultivating and preserving a culture of diversity and inclusion. Our talents are the most valuable asset to the company. The collective sum of the individual differences, life experiences, knowledge, inventiveness, innovation, self-expression, unique capabilities, and talent that our employees invest in their work represents a significant part of not only our culture, but our reputation and company’s achievement as well. We embrace and encourage our employees’ differences in age, disability, ethnicity, family or marital status, gender identity or expression, language, national origin, physical and mental ability, political affiliation, race, religion, sexual orientation, socio-economic status, veteran status, and other characteristics that make our employees unique.

Harassment & Discrimination

At Plus Xnergy, we do not tolerate harassment of any kind, including sexual, or any other type of behavior that is hostile, disrespectful, abusive and/or humiliating. Sexual harassment occurs when one person requires another to submit to unwelcome sexual advances, makes requests for sexual favors, or engages in other unwelcome conduct of a sexual nature. When such conduct interferes with an employee’s work performance or creates an intimidating, hostile or offensive working environment, it is also sexual harassment. All sexual harassment complaints must be reported to the HR department.

The Human Resource Department will track out any of the complaints received. Plus Xnergy Holding Code of Conduct was guided by the Malaysian Employment Act 1955. The act was the core legislation approved for the welfare and all relevant aspects of employees in Malaysia. Employment laws in Malaysia provide standard conditions for specific types of employees working in this nation.

We expect our employees to uphold and practice the following elements to adhere to Plus Xnergy's code of business conduct:

- Anti-Forced Labour

- Anti-Child Labour

Forced Labour

The Company does not tolerate any form of forced labour including bonded labour, indentured labour, slave labour, or human trafficking. Employees must be allowed to move around freely and leave their place of work when their working hours end.

Child Labour

The Company does not tolerate the hiring of child labour under any circumstances. This is aligned with the UN Convention on the Rights of the Child and the International Labour Organisation Convention (ILO) no.182 on eliminating the worst forms of child labour. The Company must not hire employees under the age of 18 for any positions requiring hazardous work that could jeopardize health, safety or morals.

The Human Resource Department will track out any of the complaints received. Plus Xnergy Holding Code of Conduct was guided by the Malaysian Employment Act 1955. The act was the core legislation approved for the welfare and all relevant aspects of employees in Malaysia. Employment laws in Malaysia provide standard conditions for specific types of employees working in this nation.

Plus Xnergy is committed to protecting the local and global environment of the Earth to minimize the environmental impacts within our activities, products and services which are outlined in our environment policy and practiced within the business itself.

1. Communicate Our Environment, Health and Safety (EHS) Policy to all employees and people working under the control of the company so that they are aware of their individual obligations.

2. Establish and maintain practices to prevent or minimize any adverse environmental impacts and to prevent injury and ill-health arising from our activities and services.

3. To minimize environmental impacts concerning our activities, products, and services, we will:

- Recycle as much waste material as possible.

- Minimize energy consumption; switch off devices that do not need to be in use after working hours.

- Purchase products made from recycled paper.

- Minimize carbon footprint whilst traveling such as carpooling to a specific location for business purposes or taking public transport.

- Avoid unnecessary travel by making use of instant messaging, video and audio conference calls, phone and via email.

EHS policy is reviewed on an annual basis and any changes are communicated to all employees and contractors.

Organization is certified ISO 45001 and has a process and system to ensure compliance with local legal requirements such as the Factory Machinery Act 1967, Occupational Safety and Health Act 1994 and Environmental Quality Acct 1997. The organization has a process to manage risk associated with internal and external to the organization by completing the annual opportunity and risk review endorsed by the top management. Project site risk is mitigated by ensuring competent workers and strong supervision by the site team with strong enforcement from the safety team. Continuous process improvement, as well as lessons learned from unsafe acts, conditions, near-misses, and incidents, help to improve the system.

The recycling of waste material, reduced use of paper, electricity and optimized travel measures are being practiced within the organization to consider the wider global impact of all our activities as guided by the company’s sustainability policy.

As a company, we practice the following:

- We believe bribery and corruption are crimes and preventing them is our duty

- We adopt a zero-tolerance policy towards all forms of bribery and corruption

- We are committed to continual improvement of our anti-bribery and anti-corruption management system

- We are obliged to comply with local and foreign bribery and corruption laws

1. Employees of Plus Xnergy practice the exchange and acceptance of gifts as business courtesies but not personal gifts to prevent the interference of ethical business judgment and not cause any improper image. Modest gifting will be practiced in an open and transparent manner and not to influence a business decision.

2. Employees of Plus Xnergy will not make any direct or indirect donation or sponsorship on behalf of the company without consent and approval from the Board of Directors or Group CEO.

3. Employees of Plus Xnergy will cooperate with the necessary regulatory authorities who make an inquiry into the administration of any contract for services or construction.

1. Plus Xnergy Gift Policy – Administered and monitored by the HR department.

2. Employees can adhere to Whistleblowing Policy as a form of protection to maintain confidentiality.