ASIATIC GROUP (HOLDINGS) LIMITED ANNUAL

Risk Management

risK ManageMenT asiatic’s Processes for identifying and assessing climate-related risks The Group undergoes a thorough process to identify and evaluate climate-related risks. This approach assesses the current and emerging regulatory requirements, as well as potential climate-related physical and transition risks associated. The Group is consistent in monitoring developments to regulatory requirements, such as Singapore’s net-zero targets and carbon tax policies to ensure continued compliance and to anticipate and plan for potential operational costs and impacts. Physical risks are assessed across both acute events like extreme weather and longer-term climate shifts, with focus on increasing the resilience of our infrastructure and supply chains to withstand these challenges. Transition impacts associated with the shift towards a low-carbon economy such as market appeal and reputation are also assessed, resulting in diversification of energy sources and adopting sustainable practices to meet evolving stakeholder and market expectations. All climate-related risks are evaluated within the broader context of our Enterprise Risk Management (“erM”) framework, ensuring they are integrated with other financial and operational risks for a comprehensive risk management strategy. asiatic’s Processes for Managing climate-related risks With the guidance of the ERM framework, materiality is determined after collaborative discussions between the senior management and the Board. Meanwhile, climate-related risks are assessed and identified based on their potential impact and likelihood of occurrence. Management responses to risks are determined based on their nature and significance and may include risk mitigation, acceptance or implementation of control measures. The selection of suitable responses is informed by structured processes involving risk assessments and scenario planning. The Group has established internal controls to manage climate-related risks, comprising continuous monitoring, structured reporting and audit processes to support effective and consistent risk management. integration into Overall risk Management Climate-related risks are integrated into the Group’s ERM framework, and managed alongside other strategic, operational, and financial risks. This integrated approach supports a comprehensive and proactive approach to risk management. Climate-related da