climate risks assessment How do the physical, transiঞonal and legal risks affect, impede or disrupt operaঞons? What changes are necessary to sustain business growth and value creaঞon? What opportuniঞes are presented for new revenue generaঞon opportuniঞes or to improve efficiency and producঞvity? How does Matrix through consumpঞon of resources, energy and waste producঞon contribute to climate change? IMPACTS OF CLIMATE CHANGE ON MATRIX’S BUSINESS MODEL AND OPERATIONS INTEGRATION OF CLIMATE CHANGE INTO BUSINESS STRATEGIES MATRIX’S CONTRIBUTION TO CLIMATE CHANGE IMPACT OF CLIMATE CHANGE ON STAKEHOLDERS How should climate change be integrated into the mainstream of risk management and business strategies? How will climate change impact Matrix’s stakeholders? How will these impacts erode stakeholder value creaঞon? CRROs Integraঞon of CRRO via the following approach:- SSP2-4.5 NGFS Net Zero 2050 • 2Projecঞng a “middle-of-the-road” development scenario where global progress balances sustainability goals with conঞnued reliance on fossil fuels, represenঞng a realisঞc trajectory for both global and regional climate impacts. • SSP2-4.5 has been rated as one of the most probable scenarios in peer reviews and serves as a foundaঞonal basis for esঞmaঞng future condiঞons3. • Under SSP2-4.5, moderate yet persistent greenhouse gas emissions lead to incremental warming, resulঞng in gradually intensified climate impacts projected for the years 2035 and 2050. • Aligns with naঞonal and global aspiraঞons to achieve net zero emissions by 2050 via the introducঞon of Naঞonal Energy Transiঞon Roadmap (“NETR”) and the establishment of Naঞonal Decarbonisaঞon Commiee4; and the internaঞonal Treaty of Paris Agreement signed by 195 countries5, respecঞvely. • It aims to guide financial insঞtuঞons in aligning their porolios with the goal of achieving net-zero greenhouse gas emissions by the year 2050. • This iniঞaঞve is part of a broader global effort to limit global warming to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement, via stringent climate policies and innovaঞon. 2 IPCC, 2021: Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change[Masson-Delmotte, V., P. Zhai, A. Pirani, S.L. Connors, C. Péan, S. Berger, N. Caud, Y. Chen, L. Goldfarb, M.I. Gomis, M. Huang, K. Leitzell, E. Lonnoy, J.B.R. Matthews, T.K. Maycock, T. Waterfield, O. Yelekçi, R. Yu, and B. Zhou (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, In press, doi:10.1017/9781009157896. 3 Scafetta, N. (2024). Impacts and risks of “realistic” global warming projections for the 21st century. Geoscience Frontiers, 15(2), 101774. 4 the Sun. (2024, June 20). Govt reaffirms commitment to net-zero emission by 2050 - Nik Nazmi. thesun.my. https://thesun.my/malaysia-news/govt-reaffirms-commitment-to-net-zero-emission-by-2050-nik-nazmiFP12597424 5 United Nations. (n.d.). The Paris Agreement | United Nations. https://www.un.org/en/climatechange/paris-agreement Further details are provided on the aforemenঞoned CRROs as below: 104 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 05 VALUE CREATION STRATEGIC REVIEW
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