SUSTAINABILITY REPORT Cont’d TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES cont’d Table Y. Implications of physical and transition risks identified by Press Metal cont’d Type of Risk Risk Implications 2oC Scenario 4oC Scenario Technology Product changes and effects High risk associated with increased demand of recycled aluminium by customers with the growing regulatory requirement in climate actions, drives the shortage of secondary or recycled aluminium in the scrap market High risk associated with diverged fundamental criteria of low-carbon aluminium in the market. There are different requirements by customers from different countries and the requirements will vary following the changes in the market’s perspective Low risk associated with low demand of recycled aluminium by customers and low-carbon aluminium in the market Reputation Litigations, fines and noncompliance Low risk in view of there are mitigation controls such as strategies, plans and actions to comply the climate-change regulatory requirements Low risk due to absence of comprehensive climate control, low compliance requirements and slow development of climate-related regulations Reputation Negative investor and public perception Low risk in view of Press Metal consistently engaging the stakeholder and update the climaterelated strategies and progress with them Low risk due to low public awareness and less pressure from stakeholder to implement the climate-change strategy Social Talent retention and attraction Medium risk due to people view remuneration higher than the climate-change responsibility and social concern. Effort has been put to retain talent and recruit qualified personnel, but the impacts are not significant Low risk given that social concern and climate-change awareness are not emphasised in talent retention and attraction hence recruitment and retention following the normal operating procedures Social Social changes arising from climate change Medium risk associated with social changes created by product makers of end-user, with the marketing strategies and branding to create public awareness in living a less carbon-footprint lifestyle e.g. low carbon label. Low carbon products are essential to fulfil the demand of the market Medium risk associated with slow but increasing public awareness of climate change risks in society. The modern societal system might be affected due to the warmer temperature PRESS METAL ALUMINIUM HOLDINGS BERHAD 187
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