climate risks assessment OPPORTUNITIES For Matrix, in essence, the opportuniঞes include increased adopঞon of RE, generaঞon of RECs and carbon credits, improved access to financing and development of low-carbon products and enhancement of brand reputaঞon and posiঞoning. Following are the idenঞfied opportuniঞes for Matrix for all business divisions. Present solar installaঞons have yielded a cumulaঞve carbon avoidance of 781.2 tonnes CO2e for FY2025 alone. At the same ঞme, the 1,420,360 kWh solar derived electricity consumed in FY2025 has yielded a savings of RM722,785.64 (based on approximate charges for the same quanঞty of electricity sourced from the grid). Importantly, cost savings can also be calculated based on esঞmated increases in tariffs of electricity supplied by the going forward as follows: PRESENT COSTS SAVINGS 14.2% INCREASE UNDER RP4 2025-2027 15% INCREASE UNDER RP6 2030-2034 15% INCREASE UNDER RP8 2035-2040 PRESENT SOLAR ENERGY CONSUMPTION (kWh) 1,420,360 1,420,360 1,420,360 1,420,360 ESTIMATED COST SAVINGS (RM) 722,786 825,421 949,235 1,091,620 As the decarbonisaঞon agenda gains tracঞon across Matrix, the progress achieved can be leveraged to reposiঞon Matrix’s brand as a more sustainable property developer. This can translate into stronger resonance with customers, especially more affluent customers. This will support sales or enable increased premium on pricing for selecঞve property types. As banks conঞnue to decarbonise their lending porolios, there is an increased propensity to pivot towards companies which have lower emissions or have established firm decarbonisaঞon plans, backed with concrete acঞon steps and progressive results achieved. Hence, Matrix’s ongoing efforts, beyond embellishing brand credenঞals can also be leveraged to ensure conঞnued access to financing and potenঞally preferenঞal rates. Aside from bank loans, this opportunity would also extend to access to capital markets for the issuance of debt instruments such as green bonds and Sukuk. The Group would also be in a beer posiঞon to secure insঞtuঞonal investors who have specific investment mandates and policies centred on sustainable performance, including climate change and decarbonisaঞon specificaঞons. Specific quanঞfication on such opportuniঞes is being undertaken by the Group’s Finance team and will be disclosed in future reporঞng. FUTURE OUTLOOK AND COMMITMENTS Recognising that climate-related risks and opportuniঞes will conঞnue to evolve, Matrix is commied to strengthening its assessment processes and expanding its capabiliঞes to ensure comprehensive and decision-useful disclosures. Moving forward, the Group will focus on the following key areas: • Refining Assessment Approaches: Matrix plans to incorporate emerging climate data, uঞlise baseline measurements, and refine its idenঞficaঞon of both risks and opportuniঞes. This will enhance the accuracy of its climate-related assessments and improve decisionmaking. • Conducting Site-Specific Assessments: To beer understand localised impacts, the Group intends to conduct targeted climate and flood risk assessments across its operaঞonal sites. This tailored approach will provide granular insights, allowing for more precise miঞgaঞon strategies and improved financial impact esঞmaঞons. • Further Incorporation of Financial Quantification: Where applicable, Matrix shall integrate financial data into its climate risk and opportunity assessments. By quanঞfying carbon reducঞon impacts, cost savings, and investment returns from renewable energy iniঞaঞves, the Group aims to present a clearer picture of the financial implicaঞons linked to its climate strategy. • Aligning with Evolving Standards: As climate reporঞng frameworks conঞnue to evolve, Matrix shall acঞvely monitor and adapt to emerging best pracঞces, regulatory developments, and industry trends to ensure its disclosures remain relevant and credible. Note: REC - Renewable Energy Certificate 108 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 05 VALUE CREATION STRATEGIC REVIEW
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