33 TIONG WOON CORPORATION HOLDING LTD SUSTAINABILITY REPORT 2025 CLIMATE STRATEGY AND IFRS S2 DISCLOSURES Climate-related Risks and Opportunities Risk Risk Driver Time Horizon Impact Strategic Responses Physical risks Acute Increased severity of extreme weather events such as flooding • Increased rainfall and flash flood 2050 • Increased capital costs for assets replacement • Increased insurance premiums for equipment and facilities • Reduced revenue due to business disruptions • Increased costs from negative impacts on workforce (e.g., healthrelated issues and employee safety) • Periodically update business continuity plan and crisis management plan • Develop climateresilient policies and procedures as well as integrate them as a part of enterprise risk management efforts Chronic Rising mean temperatures • Global warming 2050 • Higher water consumption and energy costs • Increased thermal stress and health risk for our employees • Lower work productivity of our employees • Adopt more water efficient fittings and energy saving products • Shorten exposure time and use frequent rest breaks for employees • Provide a better indoor environmental quality (e.g. airconditioner) for our employees Transition risks Policy and Legal Mandates on and regulation of existing products and services • Nationwide drive to decarbonisation • Increased focus on sustainability 2050 • Increased compliance and operation costs • Obsolescence and early retirement of existing assets due to policy changes • Use of sustainable practices that are in compliance with legal requirements and safety standards for environmental protection • Monitoring of regulatory changes and performance of annual assessments to identify impact of changes on business Technology Costs of transition to lower emissions technology • Stricter emission standards 2050 • Capital investments in technological development • Cost of adoption of environmentally friendly technologies • Increased write-offs and early retirement of existing assets • Maintain close relationship with suppliers and customers to identify new market requirements • Change management planning to manage gradual transition to lower emissions technology
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