52 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) CLIMATE ACTION INITIATIVES Climate-related Disclosures Our climate-related disclosures provide insights into the potential impacts of climate risks and opportunities on our business operations. We identified related risks across four key areas: Governance, Strategy, Risk Management, and Metrics and Targets. Governance Recognising the impact climate change can have on our operations, the Group actively incorporates climate-related risks and opportunities into the responsibilities of the Board and the SSC. This year, we incorporated climate-related roles and responsibilities into the newly developed Terms of Reference (“TOR”) for the Board and Management. The TOR will serve as a guideline in the development and implementation of effective climate-related strategies in the upcoming years. Climate-related roles and responsibilities Board SSC • Includes climate-related considerations in the Group’s governance and risk management to address potential climate change impacts, risks and opportunities on Keyfield’s operations • Provides strategic oversight of the Group’s sustainability and enterprise risk management, including climate-related risk management • Provides strategic oversight of the Group’s sustainability initiatives, including climate-related initiatives • Assists ARMC in managing sustainability and climate-related risks and opportunities • Manages the Group’s risk management strategy, including climate-related strategies • Ensures the implementation of sustainability initiatives, including climate-related initiatives Strategy Keyfield has identified potential climate-related risks and opportunities, categorised into transitional and physical risks. Transitional Risks Transition Risk Impact Opportunities Policy and Legal • Future implementation of a carbon tax or other carbon pricing mechanisms • Increased operational expenditure • Potential cost savings through operational efficiency measures, such as fuel consumption optimisation and transitioning to renewable energy to reduce GHG emissions Technology • Challenges in identifying costeffective technologies that optimise both fuel efficiency and operational performance • Upfront costs incurred from adopting and deploying new technology • Potential operational or safety risks arising from uncertainties in the effectiveness and reliability of emerging technologies • Potential cost and resource savings from transitioning vessels to hybrid engines and adopting alternative fuels, yielding longterm return on investment (“ROI”) through lower fuel costs, regulatory compliance, and enhanced competitiveness SUSTAINABILITY STATEMENT FY2024 (cont’d)
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