Nestle Malaysia Bhd

**ESG AND SUSTAINABILITY GOVERNANCE STRUCTURE**\n\nOur role in society and CSV strategy is driven by Nestlé's Global Leadership Team, comprising the Nestlé S.A. Board of Directors, Chairman, Chief Executive Officer (Group CEO and Executive Board. The Global Leadership Team is supported by internal management bodies and relevant Committees that determine our commitments and objectives. With sustainability at the core of Nestlé's governance structure, we have a dedicated Sustainability Committee in place to lead focused and aligned actions towards achieving the global targets that the Company has set. These targets are then cascaded down to all markets including Nestlé Malaysia. Further information on the full governance structure of Nestlé S.A. can be found on the Nestlé S.A. website at www.nestle.com.\n\nAt Nestlé Malaysia, the Sustainability Steering Committee is responsible for steering the Company's CSV strategy and sustainability agenda. Under the stewardship and guidance of the CEO, strategic counsel is also provided by the Board to ensure that the Company's CSV and sustainability strategy is well-aligned with long-term business targets. The Board also reviews the Company's progress in achieving its commitments on a quarterly basis.\n\n**ESG and Sustainability Governance Structure**\n\n**Board of Directors | Sustainability Committee**\n\n**Executive Board** **Creating Shared Value Council**\n\n**ESG Sustainability Council**\n\nProvides governance, strategic leadership and execution guidance and makes recommendations to the Executive Board and decisions on behalf of the Executive Board within its delegated authority.\n\n**Nestlé Malaysia**\n\n**Nestlé Malaysia Board** **Nestlé Malaysia** **Business Units and**\n\n**Sustainability**\n\n**of Directors** **CEO** **Support Functions**\n\n**Steering Committee**\n\nProvides counsel Leads CSV and Guides and Lead\non strategic sustainability supervises CSV implementation of\nalignment for strategy and sustainability CSV and\nCSV and initiatives across sustainability in\nsustainability businesses Malaysia\n\nNestlé S.A. Board of Directors Nestlé S.A. Executives Roles\n\nNestlé S.A. External Advisory Nestlé Malaysia Executives\n\n**Nestlé Malaysia Sustainability Steering Committee***\n\n- Juan Aranols (Chief Executive Officer)\n\n- Syed Saiful Islam (Chief Finance Officer)\n\n- Alessandro Monica (Executive Director, Technical and Production)\n\n- Dato' Adnan Pawanteh (Executive Director, Group Corporate Affairs)\n\n- Ng Su Yen (Business Executive Officer, MILO)\n\n- Michelle Woon (Head of Sustainability)\n\n- As of December 2022\n\n**Five Workstreams**\n\n**Sustainable**\n**Sourcing**\n\n**Communication**\n**and Advocacy**\n\n**2050 Net Zero**\n\n**Sustainable**\n**Water**\n**Packaging**\n\n**Key CSV and Sustainability topics reviewed by the Board and Sustainability Steering Committee in 2022 include:**\n\nClimate Change (GHG emissions)\n\nSustainable Packaging\n\nWater Efficiency\n\nQuarterly CSV Specific Topics\n\nSubject matter experts are responsible for managing CSV and sustainability initiatives across the Company's respective business units and support functions, lead by the head of sustainability who defines sustainability priorities at a market level based on corporate commitments and brand initiatives. Apart from that, the head of sustainability also identifies, plan and initiate projects to further build and improve sustainability performance across the value chain. To maintain accountability with regards to progress, the head of sustainability and subject matter experts undergo periodic reviews and deliver scheduled monthly reports to update the Sustainability Steering Committee and CEO.\n\nIn tandem with this, the Sustainability Steering Committee monitors sustainability matters both locally and globally and reports relevant developments that may potentially affect the Company's business to the CEO. The Sustainability Steering Committee also keeps the management team well-informed on the progress of all sustainability projects through monthly Sustainability Steering Committee meetings, in addition to quarterly meetings to provide updates on CSV activities.\n\nBeyond Nestlé Malaysia, monthly progress reports pertaining to our sustainability initiatives, such as Project RELeaf, plastic recovery projects and our efforts to reduce water usage and GHG emissions, are submitted to Nestlé Zone Asia, Oceania and sub-Saharan Africa (Zone AOA). Meanwhile, we hold quarterly meetings with the Board of Directors to report on the progress of all matters relevant to sustainability, including our CSV initiatives.\n\nCollectively, our internal engagements and periodic reporting helps us to stay the course in achieving our CSV and sustainability commitments, as well as ensuring robust CSV governance within the Company.

Nestlé S.A.'s ESG and sustainability governance is spearheaded by the Global Leadership Team, including the Board of Directors, Chairman, CEO, and Executive Board. They provide strategic leadership, with internal management bodies and committees ensuring consistent implementation. At the global level, the ESG and Sustainability Council guides execution, with responsibilities cascaded down to respective market organisations such as Nestlé Malaysia, which plays a pivotal role in contributing to global goals while addressing local sustainability priorities. [...] Within Nestlé Malaysia, the Sustainability Steering Committee, led by the CEO, oversees the implementation of the sustainability strategy and is responsible for integrating climate considerations into decision-making, including the Enterprise Risk Management (ERM) framework. This process identifies risks, formulates mitigation plans, and assigns responsibilities across departments to drive and monitor sustainability and climate action. Strategic counsel is provided by the Board of Directors to ensure that the sustainability strategy aligns with long-term business targets, with progress reviewed quarterly. Additionally, the Sustainability Steering Committee presents biannual updates to the Board of Directors. [...] For reporting, Nestlé Malaysia submits monthly sustainability reports within the Nestlé Zone Asia, Oceania, and Africa management structure to maintain alignment with regional and global targets. Sustainability initiatives are led by subject matter experts across business units and functions, with support from the Head of Sustainability, who identifies market-specific priorities aligned with corporate and brand strategies. Monthly progress reports are submitted to the Sustainability Steering Committee, complemented by regular performance reviews with key experts. The Committee also monitors sustainability trends at both local and global levels, reporting emerging risks and opportunities to the CEO.