Physical Risk Potential Financial Impact Our Adaptation Plan • Increased insurance premiums driven by hospitalisation claims and damage to properties and construction sites caused by extreme weather-related incidents Supply Chain Disruption Disruption to the supply chain caused by shortages or unavailability of essential raw materials, utilities (such as energy and water), or manpower at our sites Increased operational expenses resulting from: • Project schedule disruptions due to delays in material deliveries or labour shortages • Liquidated Ascertained Damages (“LAD”) due to delays in project completion • Established relationships with multiple suppliers and logistics partners while maintaining transparent communication with clients • Periodic review of bu er stocks and manpower practices, as needed Refer to the “Procurement Practices” section of our Sustainability Statement Chronic Physical Risk Chronic risks involve long-term, gradual shifts in climate patterns that can impact businesses over time such as: Physical Risk Potential Financial Impact Our Adaptation Plan Rising Average Temperatures Inadequate chiller systems — inability to operate the chiller systems e ectively due to increasing average temperatures. • Higher construction costs for climate-resilient systems, such as upgrading air conditioning systems • Increased operational expenses due to higher energy consumption for cooling systems • Higher maintenance costs for repairing or replacing chiller systems or upgrading existing systems to accommodate more extreme temperature fluctuations • Ensure compliance with the continuous inspection and regular maintenance plan for chillers and the building ventilation system Rising Sea Level Increased risk of coastal flood at potential sites. Increased operational expenses due to: • Higher construction expenses for flood-resistant design elements, such as elevated foundations or reinforced structures • Increased repair and maintenance costs due to flood damage to the building’s structure and utilities • Continuous monitoring by management of weather conditions to mitigate potential incidents • Incorporation of flood detention ponds and improved drainage systems in the planning and design phases 173 SUSTAINABILITY
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