60 SECTION 04 : CORPORATE GOVERNANCE RISKS OPPORTUNITIES MRO SERVICES DIVISION Extreme weather events, such as storms, floods, or heatwaves, can cause significant disruptions to operations. Facilities may suffer damage, and the supply chain could be interrupted, impacting service delivery timelines and costs. As governments worldwide impose stricter environmental regulations to combat climate change, MRO companies may face challenges in compliance, requiring investments in cleaner technologies or processes and navigating a complex landscape of carbon taxes or emissions trading schemes. Climate change can lead to scarcity of critical materials and resources, driving up costs. For instance, water stress could affect operations that rely on water-based processes, and changes in global temperatures could impact the availability of certain materials. Growing demand for more environmentally friendly and energy-efficient solutions. This can be capitalised on this by offering services that help clients reduce their carbon footprint, such as retrofitting older equipment to improve efficiency or reduce emissions. Drives innovation in materials, technologies, and processes. MRO companies can develop new services and products that address climate-related challenges, opening up new markets and customer segments. By adopting more sustainable practices, such as waste reduction, energy efficiency, and lean manufacturing, MRO companies can achieve operational efficiencies that reduce costs and improve competitiveness. Flooding remains the primary climate-related risk affecting the Group's property development sites. To mitigate this risk, the Group has implemented targeted measures, including raising the levels of stagnant water areas, installing permanent culvert drainage systems to improve water flow and discharge, and conducting regular monitoring of box culverts to prevent blockages caused by debris, such as rotten wood. These measures are designed to minimise disruptions and enhance the resilience of the development sites against flood-related impacts. By striving for a net-zero emissions target, the Group's efforts align with national and global objectives, including Malaysia's aspiration to achieve carbon neutrality by 2050 and the UN SDGs. As part of its journey toward becoming a net-zero carbon organisation by 2050, the Group has set an interim goal to reduce its GHG emissions intensity by 50 percent by 2030. ENRA is still engaged in a range of initiatives aimed at ensuring effective adaptation to the scenario presented by climate change. The Group remains dedicated to its previous commitments while demonstrating a strong commitment to reducing the impacts of climate change and lowering emissions. GHG EMISSIONS ENRA's carbon emissions primarily arise from the combustion of fuels such as diesel and petrol (Scope 1) and purchased electricity (Scope 2). This emission profile reflects the nature of energy-intensive industries in which the Group operates, including construction, real estate development, and MRO services. This year, the Group's focus remains on accurately measuring its Scope 1 and 2 emissions while working towards expanding its Scope 3 reporting capabilities. ENRA is dedicated to collaborating with experts, manufacturers, and suppliers to identify viable, commercially available solutions to support its transition to a low-carbon future. The Group continues to uphold robust calculation methodologies to ensure the accuracy and integrity of all disclosed data. Sustainability Report (Cont’d)
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