Caring for the Planet Press Metal Aluminium Holdings Berhad SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 140 Descriptions of the factors considered under each scenario are as in the table below. Based on the findings, transition risks were most significant in the IPCC RCP 2.6/ 1.8°C (more stringent) scenario due to greater demands from stakeholders to accelerate the rate of the transition to a low-carbon economy. On the other hand, physical risks were most significant in the IPCC RCP 8.5/ 4.3°C (business as usual) scenario due to the greater evolution in the climate. IPCC RCP 8.5 IPCC RCP 2.6 Fragmented institutional support hindering the transition to “Net-Zero” emissions Political Regulation Enhanced operational resilience through global cooperation, regulatory alignment, and future-proofing standards Lack of proactive measures despite mounting pressure from stakeholders Social Collaborative Growing attention and pressure from diverse stakeholders regarding climate change issues Heightened physical risks and uncertainties regarding future risks due to inadequate information Environmental Caution Continuous commitment to adapting to evolving environmental regulations and heightened awareness Rising competition for limited resources exacerbating inequality and impeding renewable growth Economic Growth Sustained economic growth driven by the transition to renewable energy sources Sluggish advancement towards viable solutions and the uptake of new technologies Technological Innovation Advancements in renewable energy R&D alongside efforts to enhance emissions reduction technologies Increasing CO2e prices alongside sluggish and ambiguous legal frameworks, necessitating enhanced regulatory clarity Legal Action Implementation of carbon pricing mechanisms and supportive legal frameworks to bolster climate action across sectors Average increase in global temperature by 2050 1.8oC Scenario 4.3oC Scenario Transition Risk Physical Risk Expected to create more:
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