59 ENRA GROUP BERHAD ANNUAL REPORT 2025 • ENRA CLIMATE CHANGE ROADMAP The Board oversees the Group's sustainability strategy, focusing on climate-related aspects such as decision making, risk and opportunity assessment, and high-level policy progress. A specific concern for the Board is the inclusion of climate change and its business implications as a material topic for ENRA, discussed and approved during their deliberations. The ARMSC, delegated by the Board, is responsible for reviewing and regularly updating the Group's sustainability strategy and plans. Climate Change-Risks and Opportunities RISKS OPPORTUNITIES ENERGY LOGISTICS DIVISION Increased frequency and intensity of hurricanes, typhoons, and storms could lead to damage or loss of vessel and SPM facilities. This could lead to increase in maintenance costs and potential safety hazards. Changes in sea temperature can affect the efficiency of cooling systems and impact equipment performance. Stringent regulations aimed at reducing carbon emissions could increase operational costs. Development and adoption of advanced technologies to enhance the climate resilience of vessel design and operation, including: Improved structural integrity, advanced weather forecasting and route optimisation and innovations in ship navigation and maneuvering. Implement energy efficiency measures to optimise cooling system performance, considering variations in sea temperatures. Explore the implementation of carbon capture and storage (“CCS”) technologies to capture and store carbon emissions. PROPERTY DEVELOPMENT DIVISION The risk of flooding at property development sites poses potential challenges, including delays in project timelines, increased construction defects, and elevated liability exposures. Increased temperatures may necessitate changes to planning and design, resulting in higher development costs. Increased damages and liabilities from ongoing developments that are potentially affected by climate change-related natural disasters. Increased opportunity to seek government support to introduce new measures or to invest in the operations. Development of sustainable construction methods and designs for long-term feasibility, all of which reduces overall impacts on the climate. Greater acceptance for use of environmentally friendly design, materials and features within property development. Governance Stratergy Risk Management Metrics & Target Board and Management oversee matters related to Climate Change Risk and opportunities related to Climate Changes to be identi ed Commitment to reduce emissions of greenhouse gases ("CHO") with targets to be established To develop plans for various climate change issue scenarios i.e rising temperature, ash oods and etc Sustainability Report (Cont’d)
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