39 ANNUAL REPORT 2026 ENRA GROUP BERHAD Risk Type Risk Description Potential Financial Impact Management / Adaptation Measures Property Development - Acute Physical Risk Flooding, heavy rainfall and extreme weather events may disrupt construction activities, affect site accessibility and delay project delivery timelines. • Increased rectification and construction costs • Project delays and potential exposure to liquidated damages • Higher site protection and recovery costs • Monitoring site and weather conditions during project execution • Implementing drainage, flood mitigation and site protection measures, where applicable • Incorporating contingency considerations into project scheduling and execution activities Property Development - Chronic Physical Risk Rising temperatures and changing rainfall patterns may affect site conditions, construction activities and long-term development planning considerations. • Increased development and operating costs • Higher drainage and maintenance requirements over time • Considering site conditions, drainage and environmental factors during project planning and execution MRO Services - Climate-Related Opportunity Ageing offshore and marine assets, evolving operational standards and increasing focus on asset reliability may increase demand for maintenance, overhaul, refurbishment and lifecycle support services over time. • Increased demand for maintenance, overhaul and asset integrity support services • Additional lifecycle support and refurbishment opportunities • Strengthening technical and maintenance capabilities relating to overhaul, refurbishment and lifecycle support activities • Leveraging marine engineering and technical support capabilities MRO Services - Acute Physical Risk Severe weather events and operational disruptions may affect onsite engineering, overhaul and technical service activities. • Operational delays and disruption-related costs • Reduced operational efficiency during severe weather events • Monitoring operational and site conditions during project execution activities • Maintaining contingency planning measures for ongoing works Understanding Transition Climate Risks Given the Group’s exposure to offshore and marine-related activities, ENRA recognises that transition climate risks may become increasingly relevant over the medium to long term as regulatory, market and customer expectations evolve in response to the transition towards a lower-carbon economy. These developments may affect offshore activity levels, operating costs, customer requirements and long-term demand for certain oil and gas-related marine and engineering services. At the same time, evolving operational, maintenance and infrastructure requirements may create opportunities relating to engineering, refurbishment and lifecycle support services across marine and offshore assets. While the Group’s current Property Development activities remain focused on the completion of its ongoing development project, transition-related developments may also influence construction-related costs and future project planning over time. The Group has begun referencing transition climate scenarios, including the International Energy Agency Net Zero Emissions by 2050 (“NZE2050”) scenario, to support its ongoing assessment of potential climate-related risks and opportunities across different time horizons. Sustainability Statement (Cont’d)
RkJQdWJsaXNoZXIy NDgzMzc=