LINKING ISSUES / RISKS WITH FINANCIAL PERFORMANCE While Matrix has established a robust Risk Register, increasingly, the emphasis is on integrating ESG related risks and concerns into its strategic perspective. FY2023 sees the Group include climate change related risks towards developing a more inclusive and comprehensive risk perspective. Similarly, FY2023 sees increased strategic efforts to embed increased integrated thinking on how the Group’s top 10 material topics have an impact on the following: Pace and quality of construction works and finished properties Ability to launch and sell properties Brand appeal and customer trust and confidence Environmental and social compliance Duration for regulatory approvals Direct and indirect impacts to sales, revenues and earnings • Product quality is intrinsically linked to customer satisfaction, brand image and perception and sales driven from referrals and repeat buyers. • Poor product quality can also lead to increased costs due to necessity for defect rectifications. • Ensuring zero corruption, especially within supply chains and in dealing with stakeholders is vital in safeguarding corporate integrity, achieving operational and cost efficiencies, promoting meritocracy and attracting and retaining talent. • Anti-corruption is a prerequisite for organisational excellence, and the cultivation of a high performance company culture. Anti-Corruption Social and Environmental Regulatory Compliance Occupational Health and Safety Product Quality • It is important in ensuring that the Group operates in a manner that is adherent to legislation and thus avoiding punitive measures, including financial based penalties. • Regulatory compliance is material in upholding Matrix’s perception as a good corporate citizen. • Good Occupational Health and Safety performance is essential to avoiding incidents that can delay works on sites which will impact revenue recognition. • Delays would also means inefficient operations and the pace of turnaround for projects and manufactured, human and financial capitals. Material to: 1, 3, 6 Material to: 1, 3, 4, 5, 6 Material to: 2, 3, 4, 5 Material to: 1, 3, 4, 6 1 2 3 4 5 6 INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 88 VALUE CREATION STRATEGIC REVIEW
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