04 / OUR SUSTAINABILITY APPROACH 01 02 03 05 06 07 08 09 49 SUSTAINABILITY STATEMENT Strategy Climate Risk and Opportunity Identification Exercise Based on our climate risk and opportunities identification assessment, KIBB’s most relevant exposures are predominantly transition‑related (policy changes, technological shifts, and market sentiment), with overall risk levels assessed as low across short, medium and long-term horizons. Climate Risk Impact over Time Horizons Risks Changes in Relevance across Time Horizons Physical Risk – Chronic: Rising temperature Climate events such as heatwaves may disrupt client operations and supply chains. Direct impact on KIBB is low based on CRST results, but credit impacts may arise if clients face operational strain. Transition Risk – Changes in Policy Regulatory changes and new climate requirements may increase compliance, reporting and operational costs. Clients in exposed sectors may face higher compliance burdens, weaker financial resilience or asset impairment. Transition Risk – Shift in Market Demand and Sentiment Shifts in investor preferences and consumer demand may reduce valuations and credit quality of clients in carbon-intensive sectors. Misalignment with stakeholder expectations may impact business opportunities and reputation. Transition Risk – Carbon Tax and Carbon Pricing Clients in high-emission sectors may experience higher operating costs due to carbon pricing, affecting profitability and debt servicing capacity, with indirect credit and reputational implications to the KIBB. Transition Risk – Technological Advancement Low-carbon technologies may render legacy assets less valuable. Clients may face high capital expenditure needs, weaker competitiveness and potential default risk if they fail to transition. Liability Risk Increased scrutiny on climate disclosures and ESG commitments may heighten legal, regulatory and reputational risks if statements are inaccurate, incomplete or perceived as greenwashing. Short-term Medium-term Long-term Short-term Medium-term Long-term Short-term Medium-term Long-term Short-term Medium-term Long-term Short-term Medium-term Long-term Short-term Medium-term Long-term Low Relevance Moderate Relevance High Relevance Key Risk
RkJQdWJsaXNoZXIy NDgzMzc=