CLIMATE ACTION INITIATIVES (CONT’D) Climate-related Disclosures (Cont’d) Transitional Risks (cont’d) Transition Risk Impact Opportunities Market • Short-term: Customers, financiers and business partners may increasingly consider emissions performance, fuel efficiency and climate readiness when evaluating suppliers. • Long-term: Malaysia’s National Energy Transition Roadmap (“NETR”) is designed to shift the energy system toward cleaner alternatives, with renewable-energy share targets of 31% by 2025, 40% by 2035 and 70% by 2050. Over time, this may influence customer spending patterns and reduce the relative attractiveness of higheremission operating models. • Short-term: The Group may face pressure to demonstrate cost efficiency, emissions management and readiness to support lower-carbon operating requirements in tenders and customer engagements. • Long-term: As capital is increasingly allocated to renewable energy, hydrogen, Carbon Capture, Utilisation and Storage (“CCUS”) and other transition-related infrastructure, market demand may gradually rebalance toward services that support lowercarbon energy systems. This could affect fleet utilisation patterns, service mix and long-term competitive positioning. This is an inference based on official NETR investment priorities and market direction. • Short-term: The Group can strengthen its market position by demonstrating fuel-efficiency measures, emissions monitoring, and practical low-carbon operating initiatives already undertaken within its fleet. • Long-term: NETR implementation is expected to support significant green investment and job creation. Malaysian Investment Development Authority (“MIDA”) reports initial NETR flagship projects were expected to attract more than RM25 billion and 23,000 jobs, while later Ministry of Economy estimates cited by MIDA raised this to RM60.7 billion and 84,544 job opportunities. This suggests longer-term opportunity for the Group to support offshore and marine activities linked to energytransition projects, including logistics, accommodation and other marine support services. Reputation • Short-term: Climate-related disclosure expectations in Malaysia are increasing. The Securities Commission’s National Sustainability Reporting Framework adopts IFRS S1 and IFRS S2 as the baseline sustainability disclosure standards and applies a climate-first approach. • Long-term: A perceived slow response to climate-related risks, weak disclosure quality or limited evidence of transition planning may reduce stakeholder confidence among investors, customers, financiers and regulators over time. • Short-term: The Group may face increasing expectations to provide clearer climate governance, betterquality emissions data, stronger scenario analysis, and more decisionuseful climate-related disclosures. • Long-term: Weak disclosure readiness or insufficient evidence of climate response may affect market perception, investor confidence, and potentially access to commercial opportunities and financing support over time. • Short-term: The Group has already established a sustainability governance structure, initiated Scope 1, 2 and 3 emissions reporting, and undertaken climate-related scenario analysis. These actions support stronger disclosure readiness and demonstrate early progress in climate governance and risk management. • Long-term: By continuing to strengthen governance, data quality, emissions management, and climate-related strategy, the Group may enhance stakeholder trust, improve investor confidence, and reinforce its long-term reputation as a responsible offshore marine service provider. 51 Annual Report 2025
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