SUSTAINABILITY STATEMENT Market and reputation transition risks may affect Zetrix AI as stakeholders increasingly assess the credibility of sustainability performance, disclosures and implementation practices. If the Group is perceived to lag in sustainability readiness, lacks transparent reporting, or is unable to substantiate climate-related commitments with consistent evidence, it may face erosion of brand trust and credibility. Such shifts can influence customer loyalty, reduce demand for services that are viewed as misaligned with sustainability expectations, and weaken partnership opportunities where responsible operations are increasingly required. In the capital market, adverse ESG perceptions may also affect investor confidence and ESG ratings, with potential implications for access to funding and cost of capital as sustainability disclosures become more comparable and more closely scrutinised. Financial Effects Current financial effects Transition risks are increasingly creating observable financial effects for Zetrix AI in the near term, particularly from evolving regulatory expectations, rising compliance and reporting requirements, shifting customer expectations for sustainable digital delivery, and increasing cost pressures linked to energy and carbon-related measures. While these impacts may not materialise uniformly across all functions at the same time, they can influence operating cost structures, tender competitiveness, vendor selection decisions, technology refresh requirements and delivery expectations across the Group’s platforms and supporting operations. In practice, transition drivers can contribute to higher operating costs through increased compliance effort, stronger documentation requirements and additional internal controls needed to support climate-related disclosures and meet stakeholder and customer assurance expectations. This may include investments in data governance, reporting systems and auditability to ensure the Group can respond to more demanding disclosure requirements and procurement-driven ESG assessments, particularly for enterprise and public sector engagements where sustainability criteria are increasingly embedded. Cost pressures may also arise across the Group’s technology value chain, where Zetrix AI relies on data centre services, cloud hosting, software licensing and third-party platforms that are increasingly exposed to energy pricing trends and carbon cost pass-through. As energy prices increase and carbon pricing measures expand, the cost of digital service delivery may rise through higher electricity-related tariffs embedded in hosting and infrastructure services. In response, Zetrix AI may need to prioritise efficiency upgrades, optimise compute and hosting arrangements, and work more closely with vendors that can demonstrate higher energy performance and credible sustainability credentials, which may affect procurement flexibility, lead times and overall cost planning. Anticipated financial effects As the transition to a lower carbon economy progresses, the financial effects of transition risks are expected to intensify for Zetrix AI as climate-related regulations, standards and stakeholder expectations continue to tighten. In the medium term, the Group may face a higher recurring cost base driven by stronger compliance, reporting and governance requirements, including the need to enhance emissions-related data governance, system auditability and internal controls to support climate disclosures and meet enterprise and public sector assurance expectations, while delivery cost volatility may increase as sustainability criteria become more embedded in customer procurement and vendor requirements across hosting, data centre and third-party service arrangements. Financing conditions may also become more sensitive to sustainability performance and disclosure credibility, potentially affecting access to capital and the cost of funding. In the longer term, sustained transition pressures could increase the risk of misalignment if platforms and infrastructure choices do not keep pace with lower-carbon pathways and efficiency expectations, which may accelerate technology refresh cycles, increase capital requirements and heighten exposure to stranded technology assets, collectively placing pressure on margins and reinforcing the importance of integrating transition considerations into strategy, vendor management and long-term investment planning. IFRS S2 CLIMATE RELATED DISCLOSURES (cont’d) 150
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