SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT Two primary scenarios were used in the assessment: SSP2-4.5 NGFS Net Zero 2050 SSP2-4.5 has been rated as one of the most probable scenarios in peer reviews and serves as a foundational basis for estimating future conditions. Under SSP2-4.5, moderate yet persistent greenhouse gas emissions will lead to incremental warming, resulting in gradually intensified climate impacts projected for the years 2035 and 2050. It aims to guide financial institutions in aligning their portfolios to achieve net-zero greenhouse gas emissions by the year 2050. This initiative is part of a broader global effort to limit global warming to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement, via stringent climate policies and innovation. For this assessment, the timeframes were defined below to capture the evolving nature of climate risks: Short Term <2 years 2026 – 2028 Medium Term 2-10 years 2029 – 2035 Long Term >10 years 2036 – 2050 Applying the SSP2-4.5 scenario to project medium-term (2035) and long-term (2050) climate conditions enables Zetrix AI to assess how physical risks, including flooding and other climate-related impacts, may evolve in response to changes in temperature and precipitation patterns. In parallel, the NGFS Net Zero 2050 scenario provides insight into potential transition impacts, including the operational and financial implications of policy, regulatory and market shifts associated with the move toward a low-carbon economy. Together, these scenarios strengthen Zetrix AI’s forwardlooking risk assessment by capturing both gradual trends and more pronounced shifts in climate conditions over time, supporting more robust resilience planning and preparedness measures. The results are summarised below, together with the impact of each scenario on the Group’s strategy and business model: Scenario 1 - SSP2-4.5 (Moderate to high physical risk) Physical Risk Time Horizon Timeframe Overall Risk Rating Impact on the Group’s Strategy and Business Model Extreme rainfall and flash floods Short term 2026–2028 Low Seasonal monsoon flooding may cause temporary disruption to physical service touchpoints (e.g., kiosks, delivery offices, testrelated operations) due to road closures and access constraints, plus workforce commuting disruption. However, impacts are generally manageable given digital delivery channels and remote working continuity, with disruptions typically resulting in rescheduling rather than prolonged downtime. Medium term 2029–2035 Low Flood disruption likelihood remains, but severity stays low as Zetrix AI continues strengthening resilience through digitalisation (reduced reliance on physical deliveries), remote-work readiness, and targeted site-level controls for remaining physical touchpoints. Strategy emphasis shifts toward scaling digital workflows and maintaining robust continuity arrangements. Long term 2036–2050 High Under SSP2-4.5, more frequent/intense flood events could increase recurring disruption via road closures, access constraints, and broader infrastructure interruptions (e.g., connectivity/power in affected areas). While the digital operating model buffers severe impacts, cumulative effects on physical touchpoints and workforce availability may become more pronounced requiring sustained investment in preparedness, adaptive operating models and resilience measures. Rising temperatures and heatwaves Short term 2026–2028 Low Impacts are expected to be limited due to largely office-based operations, minor discomfort, short-lived productivity effects, and incremental cooling requirements. No historical incidents specifically linked to rising temperatures were noted, supporting the low near-term severity. IFRS S2 CLIMATE RELATED DISCLOSURES (cont’d) 153
RkJQdWJsaXNoZXIy NDgzMzc=