OUR STRATEGIC CONTEXT 58 Potential risks include extreme rainfall events, rising temperatures, and changing weather patterns, which may influence consumer mobility, outdoor golf participation, and store visitation patterns. However, the Group’s business model also provides certain structural resilience. A large proportion of the Group’s retail stores are located within indoor shopping malls, which reduces direct exposure to weather disruptions. The Group has also expanded indoor golf simulation and experiential centres, providing customers with opportunities to participate in golf regardless of outdoor weather conditions. Physical Climate Risks Physical climate risks include rising temperatures, heavier rainfall, and increasing weather variability. These conditions may influence customer mobility, outdoor golf participation, retail visitation patterns, and energy demand for indoor environments. Over time, these impacts may create greater variability in retail activity, operational planning, and energy-related costs if not managed proactively. Transition Risks Transition risks arise from evolving climate regulations, emerging sustainability disclosure expectations, stakeholder scrutiny, and changing market expectations regarding environmental performance. These developments may introduce additional compliance requirements, reporting obligations, cost pressures, operational adjustments, and reputational considerations for the Group. Climate-related Opportunities At the same time, climate change also presents opportunities for the Group to strengthen business resilience and improve adaptability. These opportunities include: l leveraging indoor golf as a climate-resilient service model; l strengthening omnichannel and digital customer engagement; l improving energy efficiency and resource management; l enhancing climate-related governance and reporting capabilities; and l positioning the Group as a more responsible and futureready participant in the golf ecosystem. A significant portion of the Group’s retail outlets are located within indoor shopping malls, which reduces direct exposure to weather-related disruption. In addition, the Group’s indoor golf simulation and experiential formats provide customers with alternative ways to participate in golf-related activities regardless of outdoor weather conditions. These features provide a degree of structural resilience within the Group’s operating model. Financial and Business Implications of Climate Risks Climate-related risks may have financial and operational implications for the Group over time. These may include potential impacts on: l retail footfall and customer traffic patterns; l demand for golf-related products and services; l energy consumption and operating costs, particularly cooling demand; l supply chain costs and business continuity; l capital expenditure requirements for store upgrades, energy efficiency measures, or climate resilience improvements; and l compliance and reporting costs arising from evolving sustainability-related regulations and disclosure expectations. Physical climate risks such as extreme rainfall and rising temperatures may affect customer behaviour and participation patterns, while transition risks such as regulatory developments, carbon-related policy shifts, and reporting expectations may increase compliance and operational costs. The Group monitors these potential implications and progressively incorporates relevant climate-related considerations into business planning, operational planning, and capital allocation where appropriate. SUSTAINABILITY STATEMENT
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