SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT Physical Risk Time Horizon Timeframe Overall Risk Rating Impact on the Group’s Strategy and Business Model Technological risks Short term 2026–2028 Moderate Zetrix AI faces ever-evolving technological transition risk driven by fast-moving platform expectations and increasing customer preference for modern, efficient digital solutions. This creates a real risk of stranded technology assets if legacy hardware, hosting approaches, or software components become costly to maintain, incompatible with newer standards, or unable to meet performance and sustainability expectations. Medium term 2029–2035 Moderate Overall risk remains material but becomes more manageable if Zetrix AI institutionalises continuous improvement. The key exposure shifts toward sustaining competitiveness through ongoing innovation and training and ensuring technology choices avoid overinvestment in soon-to-be-obsolete systems. Long term 2036–2050 High The entirety of the technological transition risk is expected to be lower for Zetrix AI if the organisation successfully embeds disciplined technology refresh, resilient architecture, and governance around platform efficiency and lifecycle management. With consistent upgrades and a forward-looking IT roadmap, the likelihood of largescale stranded assets reduces, and technology-related cost pressures become more predictable. Market & reputation Short term 2026–2028 Low Market and reputation transition risks for Zetrix AI are present but are more likely to show up as early signals rather than immediate financial shocks. Sustainability expectations are rising among customers, partners, and investors, and Zetrix AI may face reputational sensitivity if stakeholders perceive a gap between sustainability messaging and actual practices. However, demand impacts may remain contained initially as many customers are still transitioning their procurement requirements. At the same time, Malaysia’s move toward more structured sustainability reporting increases visibility and comparability across companies, which can raise scrutiny even for digital service providers. Medium term 2029–2035 Moderate Zetrix AI’s exposure becomes more pronounced as sustainabilityrelated expectations are increasingly embedded into procurement and partnership decisions, particularly among corporate and institutional clients. In this period, there is a higher likelihood of declining demand if Zetrix AI’s offerings are perceived as not aligned with “green” expectations, or if competitors demonstrate clearer sustainability credentials. Long term 2036–2050 Very High As Malaysia advances its sustainability reporting ecosystem and as investor and client expectations mature, companies that cannot demonstrate credible sustainability performance may face greater reputational erosion, customer attrition, and a higher risk of weaker ESG perceptions affecting access to capital. For Zetrix AI, this may manifest as sustained pressure to ensure products and services are positioned as green in a substantiated way, to replace or redesign offerings that no longer meet market expectations, and to maintain active engagement with investors to address ESG-related concerns. IFRS S2 CLIMATE RELATED DISCLOSURES (cont’d) 155
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