SECTION 2: OUR STRATEGIC CONTEXT 78 Scenario Primary Risks Consumer & Regulatory Landscape Business Impacts Strategic Response Strong Mitigation (RCP2.6/SSP11.9) High transition risks (sustainability regulations, changing consumer demands). Sustainability-conscious consumers, strict regulations, and stable climate conditions. Higher costs for compliance, shifting consumer preferences away from unsustainable businesses, and rising brand pressure for sustainability. Early adoption of ecofriendly operations, develop green golf innovations, and sustainability-driven rebranding. Intermediate Mitigation (RCP4.5/SSP2) Mix of physical and transition risks (moderate weather disruptions and evolving policies). Consumers and governments moderately prioritise sustainability. Lower golf participation due to unpredictable weather and rising costs to transition. Enhance weather resilient retail models, diversify revenue streams, and integrate low-carbon operations. High Emissions (RCP8.5/SSP5) Severe physical risks (extreme weather). Weak climate regulations, limited sustainability incentives, and severe environmental impacts. Golf declines as an accessible sport, shrinking demand for golf products and customer base, and increased costs to transition. Shift towards indoor or alternative recreational industries, invest in climateresilient locations, and explore new markets. Based on our climate scenario analysis, we identified four climate-related risks as the most material to MST Golf's long-term strategy and resilience planning. These risks were validated by the SWC and the GRSC and form the foundation of our climate risk disclosures and mitigation roadmap. The final set of prioritised and material climate-related risks includes: Risk Type Category Time Horizon Impacts Extreme weather disrupting golf activities Physical (Chronic) Short- to Long-Term Reduced retail foot traffic and golf playing due to increased rain and heat. Regulatory shifts (carbon taxes, product compliance) Transition (Policy/ Legal) Medium-Term Higher operating costs and need for low-carbon operations. Consumer preference for sustainable businesses Transition (Market) Short- to Long-Term Shifting demand away from conventional golf products and businesses without environmental credentials. Land use restrictions affecting golf course development Transition (Policy/ Legal) Long-Term Limits future market expansion and courselinked sales. While the current climate scenario analysis methodology remains qualitative, it provides a structured and practical basis for risk prioritisation. MST Golf recognises the need to further enhance this approach in future cycles by incorporating quantitative modelling, financial risk estimation, and broader stakeholder engagement. Membership and Involvement in Climate-Related Organisations While MST Golf had no formal climate-related memberships in 2024, we plan to join Climate Governance Malaysia (CGM) and the United Nations Global Compact Network Malaysia & Brunei (UNGCMYB) in 2025. These memberships will support our climate transition by providing access to best practices, training, and collaborative platforms to strengthen internal governance and resilience. SUSTAINABILITY STATEMENT
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