SUSTAINABILITY REPORT Cont’d TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES cont’d Pillar Recommended Disclosure Press Metal’s Approach Reference Risk Management Describe the organisation’s processes for identifying and assessing climate-related risks We have embarked on scenario analysis which enabled us to identify physical and transition risks that may potentially impact Press Metal. Each of the risks identified through this analysis was assigned an impact level rating: Low – Low chance of occurrence of having either a moderate impact on Press Metal’s objectives or possible chance of occurrence of having a minor or moderate impact on Press Metal’s objectives Medium – Likely to occur but with either a minor or moderate impact to Press Metal’s objectives or low chance of occurrence with a major impact to Press Metal’s objectives High – Likely to occur with a major or substantial impact to Press Metal’s objectives The Group’s risk management framework, based on ISO 31000:2018 Risk Management Guidelines, takes into consideration sustainability and climate-related risks. These risks are evaluated based on the likelihood and the magnitude of their impact. The Risk Management Team is in the process of creating a Climate Risk Register, which will offer a comprehensive understanding of the identified risks and associated opportunities. Statement on Risk Management and Internal Controls, pg. 72-75 Risk Management, pg. 113 Describe the organisation’s processes for managing climate-related risks The RMC oversees the Group’s risks, supported by RMT which executes the ERM framework by identifying, assessing, and managing risks throughout the Group. Press Metal’s materiality assessment process which involves internal and external stakeholders includes ESG-related risks such as climate change. We have developed a Climate Change Strategy that is aimed at protecting our business against climate-related risks and achieving our long-term goals and objective of achieving carbon neutrality. Statement on Risk Management and Internal Controls, pg. 72-75 Materiality Matrix, pg. 95-97 Risk Management, pg. 113-114 Climate Change, pg. 116-126 Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organisation’s overall risk management Press Metal’s risk management is governed by the Enterprise Risk Management (“ERM”) Framework based on ISO 31000:2018 Risk Management framework. The RMC is tasked to oversee the overall risk escalation process including climate-related risks. The Risk Management Team (“RMT”) and Sustainability Committee (“SC”) collaborate to identify, assess, manage, and incorporate climate-related risks within its ERM. Identification and assessment of climate-related risks specific to Press Metal’s business are conducted from both quantitative and qualitative perspectives based on the ERM framework. The ERM risk integration exercise is carried out to incorporate emerging climate risks (transition and physical risks) into Press Metal’s current risk assessment process. Additionally, Press Metal expands the qualitative ERM risk parameters to include climate-related impacts. Parameters in the ERM Climate Risk Register include technology, reputation, and social risks. Statement on Risk Management and Internal Controls, pg. 72-75 Risk Management, pg. 113-114 PRESS METAL ALUMINIUM HOLDINGS BERHAD 181
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