OUR BUSINESS AND STRATEGY INCREASING CARBON/CLIMATE CHANGE FOCUS The world is accelerating its pivot towards achieving net zero carbon status, notably by 2050. This has necessitated major shifts across nations, industrial sectors as well as companies to rethink their present energy consumption requirements and to adopt decarbonisation strategies. This includes plans for finance to mitigate the climate change effects, international trading of carbon credits and helping developing nations transition to more sustainable energy sources, among other initiatives. RISK OPPORTUNITY Failure to adopt effective strategies would mean exposure to a wide range of transitional climate risks, such as costs associated with pursuing energy efficiency as well as transitioning to renewable energy (“RE”), costs associated with increased compliance and reporting obligations, including compliance with the aspirations of institutional investors. With increasing urgency among global stakeholders to achieve climate goals / carbon reduction targets, there are calls for greater digitalisation of conventional processes that are inefficient and resource-dependent. This includes supply chain traceability, adoption of digital service delivery to reduce carbon footprint arising from use of physical materials (e.g. paper) and fuel for logistics / fulfilment services, etc. Savings in energy costs, notably electricity costs with the transition to solar and other alternatives, and the effects of rising electricity tariffs. STAKEHOLDERS LIKELY IMPACTED LINKAGE TO MATERIALITY CAPITALS INVOLVED Investors Customers Government and Regulators Community and General Public Political / Regulatory Changes Economic Values Generated Competitive Marketplace Product / Service Quality Climate Change & Emissions STRATEGIC RESPONSE The adoption of Web3 technology can unlock a host of advantages that enable business and commercial goals to be met in a faster, more efficient, more secure and cost-effective method while at the same time expediting decarbonisation. These include the ability to fully digitalise business and Government processes to remove manual, paper-based documentation, the enabling of carbon traceability from point of origin to final destination, and traceability and verification of product provenance and sustainably sourced goods, establishment of carbon credit tokenisation markets, among others. Mitigating the risks arising from evolving sustainability disclosure requirements and heightened global focus on climate impacts would involve Zetrix AI establishing a robust climate risk reporting framework. This includes aligning internal reporting with NSRF and IFRS S2 standards, strengthening data collection on emissions and energy use and conducting scenario analyses to assess potential financial and operational impacts. The continued pursuit of energy efficiency strategies through deployment of technological innovations within physical premises as well as across systems and processes, e.g. adoption of blockchain. Refer to the Strategies to Sustain Value Creation section for more information. The launch of the Yooride portal has also promoted the adoption of green micromobility solutions, promoting lowemission electric two-wheelers for short-distance travel. This initiative supports emissions reduction by reducing reliance on private vehicles while advancing more sustainable and accessible urban mobility options. MATTERS IMPACTING VALUE CREATION (cont’d) 53
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