5 ENHANCING VALUE THROUGH SUSTAINABILITY 117 PHYSICAL RISKS, IMPACTS & CLIMATE-RELATED OPPORTUNITIES PHYSICAL RISKS IMPACTS CLIMATE-RELATED OPPORTUNITIES Short-Term – Medium-Term • Flooding affecting operational sites and access routes. • Intense rainfall and localised flash floods impacting asset accessibility and service continuity. Medium-Term – Long-Term • Rising average temperatures in markets where we operate. • Increased frequency and severity of heatwaves affecting asset performance and workforce safety. • Landslides, storms and soil erosion impacting operational sites, particularly: - Kamunting Laundry and Incineration Plant. - Asphalt Premix Plant with Recycling Facility. - Highway maintenance and infrastructure assets. • Gradual degradation of infrastructure and equipment due to prolonged exposure to climate stress. • Increased water stress affecting water-dependent operations. Asset and Operational Impacts • Increased vulnerability of critical assets (e.g. incineration facilities, laundry plants, asphalt premix plant with recycling facility and highway assets) to physical damage and operational strain. • Reduced reliability and availability of assets during extreme weather events. • Temporary limitations on site access and mobility, affecting service delivery schedules. Workforce, Safety and Environmental Impacts • Heightened health and safety risks for employees and contractors, particularly frontliners operating in outdoor and high-temperature environments. • Increased risk of environmental incidents, including pollution and water contamination, arising from asset damage or overflow events. Financial and Business Implications • Higher operating and maintenance expenditure due to repair works, asset reinforcement and preventive measures. • Additional costs to engage subcontractors to maintain continuity of disrupted services. • Increased insurance premiums and potential changes to coverage terms for climate-exposed assets. • Potential reputational impact arising from prolonged service disruptions. Asset Resilience and Infrastructure Management • Enhancing the resilience of critical assets (e.g. incineration facilities, laundry plants, asphalt premix plant with recycling facility and managed highway assets) through climate-responsive maintenance and infrastructure solutions. • Supporting clients in strengthening asset durability and operational reliability in climate-exposed environments. Energy, Resource and Environmental Solutions • Energy efficiency optimisation initiatives to improve asset performance and reduce climate-related operational stress. • Advisory services on renewable energy readiness and sustainable infrastructure planning. • Environmental and climate-related assessment studies to support informed asset and infrastructure decisions. Water and Environmental Services • Services related to water system maintenance, cleaning and protection. • Advisory support on sustainable building practices and green building certifications.
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