59 ANNUAL REPORT 2025 MST GOLF GROUP BERHAD Climate Scenario Analysis In line with IFRS S2 Climate-related Disclosures, the Group conducted an initial climate scenario analysis in 2025 to better understand how climate change may influence its operating environment, customer behaviour, and long-term business resilience. The purpose of this scenario analysis is not to predict specific outcomes, but to explore how different climate pathways could affect the Group’s business model, operating conditions, and strategic resilience over time. The analysis complements the Group’s broader sustainability-related risk assessment by providing a more forward-looking perspective to support planning and risk management. Climate Scenarios Considered The Group considered three (3) climate pathways aligned with scenarios developed by the Intergovernmental Panel on Climate Change ("IPCC"): Climate Scenarios Context and Impacts Strong Mitigation Global emissions peak early with strong policy action, resulting in more stable climate conditions but higher transition expectations. Intermediate Mitigation Partial policy action and moderate warming, leading to increasing weather variability and mixed regulatory signals. High Emissions Limited mitigation and significant warming, resulting in severe physical climate impacts. These scenarios were evaluated across the Group’s defined time horizons to understand how climate‑related risks may evolve over time and affect the Group under different future conditions. Time Horizons Applied Consistent with the Group’s sustainability risk management framework, the following time horizons were applied in the scenario analysis: Horizon Year Strategic Context Short Term 2025–2030 Current operation and retail planning horizon Medium Term 2030–2040 Business model evolution and asset planning horizon Long Term 2040–2050 Strategic resilience and format diversification horizon Extended Term Beyond 2050 Long-term industry and climate transition outlook Key Climate Variables Affecting the Business Based on the Group’s operating model and geographic footprint in Southeast Asia, two climate variables were identified as most relevant to the Group’s operations: Rainfall Variability Increasing rainfall intensity and extreme precipitation events may affect travel conditions, reduce outdoor golf activity, and disrupt customer mobility. As golf is primarily an outdoor sport, heavy rainfall may also indirectly influence demand for golf-related retail and service activities, particularly at locations linked to golf club environments or outdoor participation.
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