Dear Stakeholders,
We are pleased to present DIALOG’s FY2026 Sustainability Report, marking the 10th edition since our inaugural disclosure in FY2017. This milestone reflects our sustainability journey to date and our confidence in the progress ahead.
Over the past decade, sustainability reporting at DIALOG has evolved alongside changing expectations, emerging standards, and a deeper appreciation of sustainability’s contribution to business resilience and long-term value creation. What began as a foundation for transparent disclosure under regulatory requirements has progressed through successive enhancements to it. Each stage has helped us improve how we identify material matters, engage stakeholders, measure performance and communicate our progress.
We are entering a new phase of sustainability reporting through the National Sustainability Reporting Framework (“NSRF”) and the adoption of International Financial Reporting Standards (“IFRS”) S1 and S2. These developments set higher expectations for consistent and decision-useful sustainability disclosures. While the transition will be challenging, it offers opportunities to strengthen governance, data quality, risk management and strategic integration, advancing DIALOG’s journey towards a more resilient and future-ready organisation.
FY2026 was a year of progress and preparation as we strengthened sustainability governance, climate-related risk management, greenhouse gas data readiness, human rights, supplier engagement, safety performance and assurance readiness. We also identified priorities for further development, including climate-related financial impact assessment, Scope 3 emissions, internal controls and closer alignment with NSRF, IFRS S1 and S2.
Looking ahead, we are developing a roadmap towards 2030 to provide greater structure and accountability to our sustainability agenda. As an integrated technical service provider to the energy sector, we remain focused on embedding sustainability into our operations and decision-making while responding to evolving stakeholder expectations. Our progress over the past decade has been made possible by the dedication of our people and the trust and support of our stakeholders for which we are sincerely grateful.
As we move towards FY2030 and beyond, we remain committed to strengthening our foundations, enhancing transparency and capabilities, and delivering long-term value, guided by integrity, resilience and accountability.
Strong governance supports effective sustainability management and reinforces accountability across DIALOG. Our governance framework integrates sustainability matters, including sustainability-related risks and opportunities (“SRROs”) and climate-related risks and opportunities (“CRROs”), into established Board and management oversight. The framework is underpinned by DIALOG’s Sustainability Policy, the Sustainability Development Working Committee (“SDWC”) Terms of Reference and the Group’s broader risk management and internal control systems.
Understanding what matters most enables DIALOG to focus its resources, management attention and disclosures on sustainability matters that are relevant to our stakeholders, business activities and long-term resilience.
Building on its earlier ESG Roadmap, DIALOG is evolving its sustainability approach in response to changing stakeholder expectations and the phased adoption of the NSRF and IFRS Sustainability Disclosure Standards.
The FY2030 Sustainability Roadmap sets out the Group’s strategic direction to enhance the quality, connectivity and decision-usefulness of our sustainability-related disclosures, and will continue to be refined as assessments, methodologies, data and capabilities mature.
DIALOG’s sustainability direction is anchored in our Vision and reinforced by our Mission, together with our core values of Integrity, Health, Safety & Environment, Quality, Competency and Excellence. These principles provide the foundation for our sustainability journey and strategic direction towards:
This aspiration guides DIALOG’s long-term approach to climate change. Further details on our climate-related risks and opportunities, climate strategy and emissions performance are provided in the Climate Change Strategy section.
Foundation
Establish the basis for the next phase of sustainability reporting through governance, gap-assessment, materiality and data-readiness activities
Structuring and Socialisation
Further define the roadmap priorities and translate them into relevant business-unit and departmental actions, supported by greater internal awareness and coordination
Compliance Readiness
Enhance processes, methodologies and controls to support DIALOG’s target of alignment with the NSRF, IFRS S1 and S2
Optimisation and Integration
Improve the consistency, connectivity and use of sustainability-related information across relevant risk, planning and performance-monitoring processes
Strategic Value and Maturity
Advance a more integrated and decision-useful reporting approach that enhances stakeholder confidence, business resilience and long-term value creation
Climate change presents increasingly complex risks to ecosystems, communities and economies. Climate-related physical hazards, including extreme heat, extreme rainfall and flooding, may disrupt DIALOG’s operations, affect asset integrity, impact the health and safety of our workforce, and interrupt supply chains. Strengthening climate resilience enables DIALOG to anticipate, prepare for and adapt to changing climate conditions, helping to protect our people and assets, maintain operational continuity, and support the long-term resilience of our strategy, business model and value creation.
Protecting the environment is integral to how DIALOG operates and grows. Effective environmental management enables us to prevent pollution, use natural resources responsibly, meet applicable regulatory requirements and minimise potential impacts arising from our projects and operations.
Healthy natural systems also support the well-being and resilience of the communities surrounding our operations through clean air and water, soil stability, flood regulation and functioning ecosystems. Inadequate management of environmental impacts
may expose DIALOG to operational disruption, regulatory action, remediation costs and erosion of stakeholder confidence. We therefore integrate environmental considerations across the project and operational lifecycle, from planning and design to construction, operation and eventual decommissioning, where applicable.
As an energy sector player, DIALOG regards Occupational Safety and Health (“OSH”) as fundamental to operating responsibly and reliably. Our OSH framework protects our people, safeguards asset integrity and supports operational performance in a risk-intensive environment.
We remain committed to preventing work-related illness and injury, complying with applicable regulations, and maintaining a safe and sustainable workplace for employees and others who may be affected by our activities.
Our employees are our most valuable asset, and their well-being, capabilities and performance are fundamental to the sustainability of the Group. As competition for talent intensifies, attracting, developing, engaging and retaining a skilled workforce remains important to DIALOG’s long-term success.
By fostering a supportive and inclusive workplace, complemented by continuous learning and career development opportunities, we empower our employees to perform at their best, adapt to evolving business needs, and contribute to the Group’s continued growth while enabling us to deliver on our commitments to clients and other stakeholders.
Upholding labour standards and human rights is essential to DIALOG’s business resilience and continuity. Our people are central to achieving the Group’s goals and fostering a culture that adapts to change while upholding our values.
We recognise that ineffective management of human rights matters may harm individuals, disrupt operations and lead to regulatory or contractual consequences. Accordingly, DIALOG promotes responsible labour practices and safeguards the rights and well-being of individuals across its operations.
Community engagement provides an avenue for collaborative efforts to improve overall community welfare and well-being. At DIALOG, we believe that meaningful engagement builds trust – a critical element for long-term sustainable relationships and effective governance.
Strong corporate governance and ethical conduct are fundamental to safeguarding stakeholder interests, strengthening trust, supporting responsible decision-making, business resilience and long-term value creation.
As DIALOG’s operations become increasingly interconnected, data governance, privacy and cyber security have become integral to the Group’s governance framework.
By embedding cyber resilience and rigorous data protection protocols within its governance framework, DIALOG is better positioned to manage evolving digital and operational technology risks, support secure and efficient operations, and enhance stakeholder confidence.
Close engagement with suppliers and strong regulatory compliance are key to sustainable value creation. It supports responsible sourcing by managing ESG risks across our supply chain and safeguarding stakeholder value.
A sustainable supply chain is also essential to broader sustainability goals, helping to reduce environmental impact, promote social responsibility, and support economic resilience. As a majority of our suppliers and vendors are SMEs, we recognise the challenges they face in adopting ESG practices, including limited awareness, technical capabilities, and access to financing.
Economic performance remains material to DIALOG as it supports the Group’s long-term sustainability value creation, and ability to provide employment while navigating market volatility and economic uncertainty.
DIALOG’s vision of becoming a leading integrated technical service provider to the energy sector, both in Malaysia and internationally, depends on its ability to anticipate and manage risks that may affect long-term value creation. Effective risk management supports informed decision-making, organisational resilience, and the ability to respond to evolving risks and opportunities.
