83 ANNUAL REPORT 2025 MST GOLF GROUP BERHAD MATERIAL MATTERS Climate Change and Transition 01 Greenhouse Gas Emissions and Energy Use 02 Waste Management and Product Life Cycle 03 Water Use 04 Risk Context and Relevance Although the Group’s operations are not highly water-intensive relative to certain industries, responsible water use remains relevant across retail stores, indoor golf facilities, offices, and support operations. Water efficiency is also increasingly important from both environmental and cost management perspectives. As the Group expands and improves environmental data coverage, monitoring water use more consistently supports better operational awareness and resource management. Water Use - Key Risk Snapshot Area Summary Risk Impacts Inefficient water use may increase utility costs, reduce resource efficiency, and create avoidable environmental impact over time. Risk Drivers Retail and facility operations, employee usage patterns, operational expansion, and improved monitoring coverage. Risk Profile Low likelihood with low potential impact. Governance & Oversight Oversight through management and operational monitoring processes. Risk Management Approach Water consumption tracking, responsible use practices, and progressive improvement in monitoring and efficiency awareness. 2025 Performance Indicators Water consumption was approximately 19,278 m³, with improved data coverage compared to prior year. Financial Pathway Responsible water management helps improve utility efficiency and supports better operational cost discipline over time. Forward Outlook Continue improving monitoring coverage and strengthening water efficiency awareness across operations. Actions and Initiatives in 2025 In 2025, the Group continued to strengthen environmental performance management through improved data collection, broader monitoring coverage, and practical operational measures across key environmental areas. Key focus areas during the year included greenhouse gas emissions monitoring, electricity and fuel tracking, water consumption monitoring, landfill waste tracking, and the integration of climate-related considerations into planning and risk management. To better understand climate exposures, MST Golf conducted a climate scenario analysis aligned with IPCC climate pathways and IFRS S2 guidance, assessing potential implications across short-, medium-, long-, and extended time horizons. The Group also conducted sensitivity analyses assessing the impacts of rainfall variability and rising temperatures on retail footfall. The Group also joined Climate Governance Malaysia (CGM) and the United Nations Global Compact Network Malaysia & Brunei (UNGCMYB) in 2025. These memberships supported our climate transition by providing access to best practices, training, and collaborative platforms to strengthen internal governance and resilience.
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