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 climate-related risks across four key areas: Governance, Strategy, Risk Management, and Metrics and Targets. Governance Recognising the potential impact of climate change on our operations, the Group actively incorporates climate-related risks and opportunities into the responsibilities of the Board and the SSC. The Terms of Reference which integrates climate-related roles and responsibilities for the Board and Management serves as a guideline for the development and implementation of effective climate-related strategies, supporting the Group’s ongoing efforts to strengthen climate resilience and governance. Strategy Based on the Network for Greening the Financial System (“NGFS”) Phase IV scenario analysis, the Group assessed how increasing carbon prices and changes in financing conditions may influence its operating cost structure, investment decisions, and strategic planning over time. The quantitative scenario analysis for FYE 2025 focused primarily on transition-related variables, namely carbon pricing and interest rates. Accordingly, the identification of climate-related risks and opportunities was undertaken using a combination of scenario-informed interpretation for transition risks and qualitative assessment for physical risks, taking into account the Group’s offshore and marine operating context. The analysis indicates that transition risks are likely to emerge progressively, with more pronounced impacts under the Net Zero 2050 pathway due to the substantially higher carbon price trajectory. In the near term, the Group may be exposed to rising fuel-related operating costs, evolving climate-related regulatory expectations, and increasing stakeholder scrutiny. In the longer term, higher carbon prices, tighter regulatory requirements, and broader market and technology shifts may have a greater influence on asset competitiveness, capital expenditure planning, and business resilience. To assess the potential financial implications of climate change on its operations, Keyfield conducted a climate-related scenario analysis based on the NGFS Phase IV scenarios using the REMIND-MAgPIE model. The analysis considers two transition pathways relevant to the Group’s operating environment in Malaysia: • Net Zero 2050 scenario, representing an orderly transition aligned with limiting global warming to 1.5°C through immediate and ambitious decarbonisation policies. • Below 2°C scenario, where climate policies are implemented later and more abruptly, resulting in stronger policy shocks and market adjustments. 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 47 Annual Report 2025
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