Integrated Annual Report 2024 SECTION 3 • CHARTING THE PATHWAY TOWARDS EXCELLENCE 33 MANAGING OUR RISKS AND OPPORTUNITIES EFFECTIVELY Press Metal is cognisant of the importance in implementing a robust and effective ERM framework and undertaking continuous monitoring of identified risks. Through rigorous oversight and targeted risk mitigation measures, the Group manages potential threats while capitalising on opportunities that support long-term value creation. This approach ensures sustainable growth and reinforces Press Metal’s commitment to delivering value to stakeholders. Climate Change and Sustainability Risks Evolving climate conditions bring environmental and operational challenges, including shifting weather patterns, increased flooding, biodiversity loss, and disruptions across supply chains. Press Metal integrates climate change and sustainability risks into strategic planning, continuously assessing these risks to safeguard both ecosystems and communities. Climate-related risks fall into two (2) categories — physical risks, such as extreme weather events that may impact operations, and transition risks driven by regulatory developments, including Malaysia’s NSRF, the EECA 2024 and the impending carbon tax in 2026. Market expectations and rising compliance costs further add to the complexities surrounding ESG standards and broader social considerations. Opportunities • Identifying and adopting innovative products, services and business models that support businesses, communities and ecosystems in adapting to climate change while enhancing operational efficiency and driving cost savings. • Fostering engagements in multi-stakeholder initiatives with regulators, industry peers and non-governmental organisations (“NGOs”) to advance effective climate change adaptation efforts. Environment Corporate Governance and Ethical Practices Risks Businesses are subject to various legal and compliance risks such as bribery, corruption and violations of human rights or employment laws. Inadequate governance practices, ineffective monitoring and insufficient contract management heighten exposure to these risks, potentially undermining corporate governance and ethical standards. Failure to comply with stringent regulatory frameworks, including Section 17A of the Malaysian Anti-Corruption Commission Act 2009, MCCG 2021, Bursa Malaysia’s MMLR, CA 2016, and the amended Personal Data Protection Act (“PDPA”) 2024, may result in severe consequences such as financial penalties and the revocation of business licences. Given these risks, maintaining a robust governance and compliance framework with rigorous oversight is essential to mitigating potential breaches and ensuring adherence to evolving legal and regulatory requirements. Opportunities • Embedding integrity, accountability and transparency by implementing robust corporate governance practices throughout the organisation. • Protecting credibility and reputation through implementing sound and effective management systems. Governance/ Reputational F I M H SR Link to Capitals Link to Material Matter F H SR Link to Capitals Link to Material Matter M9 M10 M11 M12 M13 M2 M3 M4 M7
RkJQdWJsaXNoZXIy NDgzMzc=