CLIMATE REPORT Although climate risks have always been an integral part of our risk management strategy, FY2024 marks the first year we have introduced a dedicated section for climate-related disclosures, in line with the growing requirement for a climate report as a result of the adoption of IFRS Sustainability Disclosure Standards (“IFRS SDS”). Our Board and management are closely monitoring developments in this area. We recognise the evolving risks and opportunities presented by climate change, including extreme weather events, energy disruptions, and the urban heat island e ect, all of which could potentially impact our business. Our response will be influenced by factors such as our financial performance, the feasibility of climate initiatives, and the e ectiveness of government policies promoting a low-carbon, climate-resilient economy. Our approach to managing these climate risks is structured around the four key pillars of IFRS SDS, outlined below: 1. Governance Climate change risks are addressed within the Sustainability Governance framework, as detailed in the “Sustainability Governance” section of this Sustainability Statement. We acknowledge the interconnectedness of climate change with other sustainability issues, such as economic performance, health and safety, water management, energy management, and emissions. We remain committed to continuously monitoring and managing climate-related risks and opportunities through our Enterprise Risk Management (“ERM”) process. 2. Strategy We acknowledge that climate change poses a significant risk to our business and the environment in which we operate. Our strategy for managing climate change can be summarised as follows: • Adapt to the physical climate risk given its pervasive and global nature, which is beyond our control; • Mitigate transition risk, such as the introduction of carbon price, which a ects our construction cost; • Take advantage of increased demand for green buildings through early adoption. The key material risks identified for our business, along with our adaption plan, are outlined below. Acute Physical Risk Physical Risk Potential Financial Impact Our Adaptation Plan Safety and Security of Our People and Property The increased risk of extreme weather events, such as floods and heat waves, presents a potential threat to the safety and security of both our people and our assets. This includes: • Unsafe working conditions for construction workers, which could result in fatalities or significant incidents; and • Damage to existing properties, including structural harm, disruptions to utilities (e.g., energy supply), and challenges to access and security Increased operational expenses due to: • Higher project costs due to disruptions in project schedules caused by extreme weather events and work stoppages • Increased labour costs from reduced manhours due to unsafe working conditions during extreme weather events (e.g. floods and heat waves) • Rising repair costs from damage to property and infrastructure • Liquidated Ascertained Damages (“LAD”) for delays in project completion • Increased scrutiny of project costs associated with climate -related factors • Regular property inspections and maintenance schedules • Continuous monitoring by management personnel of weather conditions to mitigate potential incidents. Refer to: Health & Safety of this Sustainability Statement 172 ANNUAL REPORT 2024
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