Zetrix AI Berhad Annual Report 2025

SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT IFRS S2 CLIMATE RELATED DISCLOSURES (cont’d) Rising temperatures increasing OSH considerations and cooling-related operating costs: Higher ambient temperatures can increase heat stress risk and employee wellbeing considerations, potentially affecting productivity and workforce availability, particularly for employees who need to travel or work at service touchpoints. Rising temperatures can also increase the need for air-conditioning and cooling across workplaces and critical IT environments, contributing to higher electricity consumption and operating costs. Notably, Zetrix AI has not recorded historical incidents specifically attributable to rising surface temperatures to date. Effects On Strategy and Decision Making Physical climate risks influence Zetrix AI’s strategy primarily through a stronger emphasis on service continuity, platform reliability and operating model flexibility, given the Group’s reliance on always-on digital delivery with selected physical touchpoints. Flood-related disruption risk reinforces the need to treat location-based interruptions as a service resilience and customer experience issue, not only an operational incident. This shapes how Zetrix AI prioritises digitalfirst delivery pathways, redundancy and resilience across customer-facing channels to ensure essential services remain accessible even when local conditions affect on-ground operations. At the strategic planning level, physical risks influence how Zetrix AI evaluates its operating footprint and delivery dependencies over short-, medium- and long-term horizons. This includes factoring in climate exposure when planning the placement and role of physical touchpoints, designing service workflows that can shift between physical and digital modes, and strengthening reliance on scalable platforms that reduce vulnerability to site access limitations during monsoon-related events. Physical risks also inform Zetrix AI’s investment and resource allocation decisions by elevating the importance of resilient system architecture, continuity planning and operational readiness. Over time, this can affect how Zetrix AI sequences technology upgrades, strengthens system performance under disruption scenarios, and allocates resources toward improving service recoverability, response coordination and cross-functional readiness rather than only capacity expansion. From a governance and risk integration perspective, Zetrix AI applies a 5x5 risk matrix approach to assess likelihood and severity and to align climate risks with the Group’s broader enterprise risk management practices, enabling future integration into the Group’s risk registry for holistic oversight and prioritisation. Scenario analysis (including SSP2-4.5 for physical risk evolution and NGFS Net Zero 2050 for transition dynamics) supports planning across short-, medium- and long-term horizons and strengthens decision-making on resilience and preparedness measures. Financial Effects Current financial effects Physical climate risks are already creating observable, near-term financial effects for Zetrix AI, primarily through extreme rainfall and flooding that disrupt operations in certain locations and affect physical service touchpoints. Flood events have led to temporary operational disruption and rescheduling of services where site access is restricted, including situations where staff could not commute and operations had to shift to remote arrangements. These disruptions can increase operating costs through schedule changes, additional coordination effort and incremental logistics costs when deliveries are delayed by road closures, particularly during year-end monsoon periods. Where flooding affects physical assets, Zetrix AI may also incur repair and replacement costs. For instance, a past flood incident resulted in a kiosk being fully damaged and replaced. In addition, Zetrix AI has strengthened its financial protection by enhancing insurance coverage, where needed, for incidents such as flood-related losses, which may translate to higher premiums and hence, some operating cost implications, although modest. Rising temperatures are currently assessed as a lower direct financial impact driver for Zetrix AI, but higher ambient temperatures can still increase cooling needs across workplaces and IT environments, potentially raising electricity consumption and operating costs. Overall, these current financial effects are generally episodic and manageable, reflecting Zetrix AI’s digital operating model and ability to maintain continuity through platform-based service delivery and remote work where required. 147

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