SECTION 07 pg. 200 AL-SALĀM REIT Physical Risks Acute Chronic Revenues Expenditures Assets & Liabilities Capital & Financing Integration into Strategic Planning Risk management is not treated as a standalone function but is integrated into strategic planning, operational processes, and decision-making across the REIT. This ensures that the organisation balances opportunity with prudence, strengthens stakeholder confidence, and enhances the REIT’s long-term resilience and sustainability. Environmental and Climate Risks Alignment ESG and climate-related risks are integrated into the ERM Framework. These include energy efficiency, carbon transition risks, climate adaptation, green building standards, regulatory changes and social stakeholder expectations. ESG and climate risks are assessed alongside traditional risk categories, ensuring alignment with long-term sustainability commitments and investor expectations. Transition Risks Policy & Legal Market Technology Reputation Opportunities Resource Efficiency Products/Services Energy Source Markets Resilience Al-Salām REIT’s Climate Risk Management Framework, which forms a subset of the broader ERM Framework, provides a structured approach to identifying, assessing, and managing climate-related risks and opportunities across all assets in Malaysia. The Framework was approved by the BSC on 26 November 2025 and subsequently endorsed by the Board on 4 December 2025. A Value-at Risk (VaR) climate-risk assessments is planned for 2026; whilst acquisition due diligence incorporate locationbased exposure, high-level climate-scenario considerations (1.5°C, 2°C, 4°C), and operational and financial impact evaluations are already underway. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL RISKS OPPORTUNITIES STRATEGIC PLANNING RISK MANAGEMENT FINANCIAL IMPACT Income Statement Cash Flow Statement Balance Sheet
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