CLIMATE CHANGE AND EMISSIONS RISKS Risks associated with climate change include physical risks such as exposure to flash floods, drought, landslides and rising ambient temperatures. All of these, either individually or collective may have varying impacts on operations, ranging from mild to severe disruptions. Transitional risks primarily comprise, legal, policy, market and reputational risks. This includes exposure to future carbon taxes, increased requirement for more green features in developments (which may lead to additional costs) and others. OPPORTUNITIES Beyond risk mitigation and cost efficiencies, opportunities include safeguarding operations from potential physical impacts while strengthening the Group’s brand positioning as a sustainable Company. This can future leveraged to access ESG based funding such as Sukuk or bonds if necessary. The undertaking of ESG related projects can also be financed via such funds with potentially reduced interest and borrowing costs. BUSINESS AND OPERATIONAL STRATEGIES Matrix increasingly looks to incorporate more sustainable practices into its business model and its business processes, including in the design and build of homes. Environmental initiatives are given increasing focus as a means for longterm cost savings and efficiency and to develop new business opportunities. Environmental performance is important in attracting investors, seeking financing and developing a more sustainable business model. LANDBANKING RISKS With land being an integral aspect of property development, Matrix focusses on refining its strategies towards ensuring sufficient landbank at strategic locations. Landbank replenishment needs to be undertaken prudently towards ensuring not just sufficient land, but also that land is acquired at appropriate prices. This is due to the fact that land costs is a key factor in determining overall project costs as well as the cost of units, development ratios and more. Going forward, environmental factors such as access to water, ambient temperatures, risk of flooding and other natural disasters may become more prevalent in shaping landbanking strategies. OPPORTUNITIES Opportunities include appreciation of landbank which generates financial values, the ability to dispose of unrequired land for fair gains and to collaborate with landowners based on a joint venture proposal. This offlays land acquisition costs. BUSINESS AND OPERATIONAL STRATEGIES Sourcing for additional landbank is essential to the property development model. However, the focus going forward is on acquiring strategic parcels at the right price and location. The Group has a dedicated business development unit which is tasked at identifying land parcels for Management’s consideration and approval for purchase. Matrix has sufficient financial strength to replenish its landbank by drawing from either internally generated funds as well as bank borrowings or a combination of both. Alternatively, joint ventures with landowners to leverage on resources. MATTERS MATERIAL TO VALUE CREATION VALUE CREATION STRATEGIC REVIEW 89 INTEGRATED ANNUAL REPORT 2024
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