57 ANNUAL REPORT 2025 MST GOLF GROUP BERHAD CARES Pillar ESG Material Sustainability Matters Key Risk / Opportunities KPI / Metrics Further Actions Resilient Environmental Stewardship Environmental Environmental Golf Product Life Cycle Management Product sustainability risk Sustainable product initiatives Work with suppliers on sustainable materials Empowering Community Engagement Social Community Engagement and Development Community relations risk Community investment Community programmes, golf development initiatives Sustainable Supply Chain Governance Supply Chain Management Supplier disruption risk Supplier ESG screening Supplier ESG screening and audits Key Sustainability Risk Areas Sustainability-related risks are integrated into the Group’s ERM framework and reflect the environmental, social, governance, and climate-related factors that may influence MST Golf’s operations, business resilience, and long-term value creation. The Group’s internal risk assessments identified several key sustainability-related risk areas, which are grouped broadly into environmental, social, and governance dimensions. Environmental Risks Environmental risks primarily relate to climate change, greenhouse gas emissions, energy use, waste generation, product life cycle management, and water consumption. These risks may affect operating costs, resource efficiency, regulatory readiness, environmental performance, and the Group’s ability to operate responsibly and competitively in an evolving business environment. Climate-related physical and transition risks also form an important part of this risk category. Social Risks Social risks primarily relate to workforce stability, employee well-being, occupational health and safety, labour standards, diversity and inclusion, customer care, and community engagement. These risks may affect operational continuity, employee morale, talent retention, customer experience, stakeholder trust, and the Group’s broader social licence to operate. Maintaining a safe, capable, and engaged workforce remains particularly important to the Group’s retail and service-led operating model. Governance Risks Governance risks include regulatory compliance, data protection, cybersecurity, ethical business conduct, anti-bribery and corruption exposure, and supply chain integrity. These risks may affect customer trust, regulatory standing, financial performance, and the Group’s reputation if not effectively managed. As the Group continues to strengthen its digital platforms and stakeholder-facing operations, governance-related risks remain an important area of ongoing attention. The Group recognises that these sustainability-related risks are often interconnected. Weaknesses in one area may increase exposure in another. As such, sustainability-related risks are not managed in isolation, but as part of an integrated business resilience and governance framework. Climate‑related Risks and Opportunities Climate change presents both risks and opportunities for the Group’s business operations and long-term resilience. For MST Golf, climate-related risks arise through both physical impacts and transition pressures, each of which may influence how the Group operates, plans, and adapts over time. These risks and opportunities are considered in the context of the Group’s operating model, retail footprint, customer behaviour patterns, and longer-term business resilience.
RkJQdWJsaXNoZXIy NDgzMzc=