Upholding Good Governance and Economic Resilience Press Metal Aluminium Holdings Berhad SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 128 Addressing ESG & Climate-Related Risks As part of efforts to address climate change, dedicated ESG and climate-related risk registers had been developed, integrating these risks into the broader risk management framework. This enabled a systematic approach to identifying, assessing, and prioritising ESG and climate-related risks and opportunities, alongside corresponding management strategies. Key parameters within the Enterprise Risk Management Climate Risk Register included technology, reputation, and social risks. Press Metal conducted a climate scenario analysis to assess both physical and transition risks. The evaluation considered potential impacts under two (2) climate scenarios — 4.3°C and 1.8°C — ensuring a structured approach to managing climate-related risks in an evolving global landscape. Read more about our approach to risk management in the Statement on Risk Management and Internal Controls section of IAR 2024. Read more on our identified climate-related risks and opportunities in the Climate Change section of SR 2024. Assessments and Action Plans Comprehensive risk assessments were conducted across business functions to identify potential vulnerabilities and evaluate their implications. Informed by quarterly risk reviews, we developed and implemented targeted mitigation strategies to address priority exposures. A suite of control measures was also introduced to reduce both the likelihood and impact of identified risks, reinforcing a proactive and disciplined approach to risk management. Operational resilience was further strengthened through enhanced monitoring and intervention. Following the fire incident at the Samalaju site during FYE2024, a full review of safety protocols was completed, resulting in improved containment, response, and oversight mechanisms. Further information is provided in the Occupational Health and Safety section of IAR 2024. These initiatives form an integral part of Press Metal’s risk management framework, enabling the Group to mitigate potential disruptions while positioning itself to capitalise on emerging opportunities in support of long-term growth and innovation. Policy Reviews and Operational Monitoring Central to our risk management efforts is the ERM Framework, complemented by our comprehensive Risk Management Policy. It provided a robust foundation of guidance and standards, which applied consistency across all risk management functions. We implemented quarterly risk assessments for our midstream and downstream entities, to identify, analyse, and prioritise risks unique to these critical segments of our operations. In implementing regular evaluation, we addressed emerging challenges promptly, and remain responsive to the evolving business landscape. Read more about our value creation in the Statement on Risk Management and Internal Controls section of IAR 2024. GOING FORWARD Maintaining an effective risk management framework is essential to ensuring long-term success, business sustainability, and stakeholder confidence. By strengthening our ability to assess risks and capitalise on opportunities, we safeguard financial stability and protect shareholder value. This, in turn, strengthens our ability to deliver long-term value and reinforces our resilience in an increasingly complex and dynamic global market. OUR VALUE CREATION Press Metal maintained a sound system of risk management and internal control and the proper management of risks throughout the operations of the Group. In proactively managing risks to enhance the resilience and sustainability of our operations, we fortified our ability to navigate uncertainties while safeguarding the long-term success of our organisation.
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