SUSTAINABILITY STATEMENT FYE 2025 (CONT’D) CLIMATE ACTION INITIATIVES (CONT’D) Climate-related Disclosures (Cont’d) Physical Risks Physical Risks Impact Opportunities Acute • Short-term: The Group’s offshore and marine operations may be exposed to acute weather-related events such as storms, heavy rainfall, rough sea conditions and flood-related logistics disruptions. Department of Statistics Malaysia (“DOSM”) reported that Malaysia recorded RM933.4 million in flood-related losses in 2024, while Malaysian Meteorological Department (“METMalaysia”) states that climate change is associated with increasing extreme weather events and rainfall intensity. • Long-term: If severe weather events become more frequent or more disruptive over time, the Group may face growing exposure to vessel scheduling delays, mobilisation disruptions, crewtransfer difficulties and damage to assets or supporting infrastructure. • Short-term: Potential impacts include operational downtime, delayed offshore activities, interruption to logistics and workforce deployment, higher repair and maintenance costs, and increased health and safety precautions during adverse weather conditions. • Long-term: Repeated weather-related disruptions may result in higher insurance costs, increased contingency planning needs, more frequent maintenance cycles and greater operational uncertainty. • Short-term: The Group may strengthen resilience through enhanced weather monitoring, voyage planning, emergency preparedness and operational response procedures to reduce weather-related disruptions. • Long-term: Continued improvement in forecasting, business continuity planning and operational flexibility may help minimise downtime, improve service reliability and strengthen climate resilience across offshore operations. Chronic • Short-term: Malaysia is already experiencing measurable climate trends. METMalaysia reports that average temperature increased by 0.24°C per decade in Peninsular Malaysia, 0.14°C per decade in Sabah and 0.13°C per decade in Sarawak over 1969–2023, with a slight increase in annual rainfall also observed. These trends may gradually affect marine operating conditions, maintenance requirements and vessel performance. • Long-term: National Hydraulic Research Institute of Malaysia (“NAHRIM”) reports projected sea-level rise along the Sandakan coast of about 0.25 m by 2040 and 0.5 m by 2060, indicating increasing long-term coastal and offshore exposure relevant to marine and support operations in East Malaysia. • Short-term: Potential impacts include higher cooling demand, changes in operating efficiency under hotter conditions, incremental wear and tear on machinery and equipment, and more demanding maintenance requirements. • Long-term: Over time, rising temperatures, humidity, salinity and coastal exposure may contribute to faster corrosion, increased maintenance frequency, shorter asset life and higher operating, insurance and capital costs. This is an inference based on METMalaysia’s warming trend data and NAHRIM’s sea-level-rise projection. • Short-term: The Group may strengthen resilience by improving condition monitoring, corrosion management and preventive maintenance practices. • Long-term: Climate-adaptive asset planning, predictive maintenance and more resilient operating specifications for vessels and related infrastructure may help reduce long-term repair and replacement costs while strengthening business continuity. 52 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M)
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