WASCO BERHAD 70 SUSTAINABILITY REPORT Medium-Term (2027-2030) In the medium-term, from 2027 to 2030, Wasco aims to continue advancing our climate strategy in alignment with national targets and in line with a 1.5°C pathway. Our focus will be on enhancing business resilience to climate risks while mitigating transition risks. A key part of this strategy will involve fully adopting the IFRS S1 & S2 standards, ensuring that climate-related risks, operations, and considerations are seamlessly integrated into our business strategy and financial reporting. These efforts will direct our ongoing investments in low-carbon solutions throughout our operations and supply chain. We are also committed to strengthening leadership and management accountability in climate governance, with a clear focus on addressing climate risks, opportunities, strategies, and targets. In tandem with this, we plan to implement an internal carbon pricing mechanism in preparation for the introduction of carbon taxes by the government. Where feasible, we aim to begin implementing some of these initiatives ahead of schedule. Furthermore, we will carefully consider capital expenditures and operational planning, including the development of new technologies that have the potential to reduce our customers’ GHG emissions. Long-Term (2031-2050) In the long-term (2031-2050), we will continue enhancing our existing GHG emissions reduction strategies as we anticipate the development of more commercially available green technologies and systemic solutions in line with Malaysia’s Net Zero commitment. Our strategy will include partnering with suppliers and collaborating on cross-industry efforts to jointly address our shared GHG emissions across the value chain. We aspire to remain a climate leader, to be a first mover in the industry with adoption of climate resilience strategies in business and being a preferred brand offering climate-friendly products and services to our customers. Climate-related risks and opportunities will continue to be identified, assessed, and managed using Wasco’s Risk Management Framework in the same way as all other risks. The Board and Senior Management will consider, review and monitor climate-related risks and opportunities as part of our strategic planning, investment decisions, and ongoing financial and operational performance reviews throughout the year. While climate change poses physical and transition risks, it also presents opportunities. Physical risks are driven by climate change and can either be acute (eventdriven) or chronic (long-term shifts in climate patterns). These risks could have financial implications, such as direct damage to assets and indirect impacts from supply chain disruptions. On the other hand transition risks arise during an organisation’s transition to a lowcarbon economy. They consist of policy and legal risks, technology risks, market risks, and reputational risks. The risks and opportunities, along with examples of their potential impacts, are outlined below: Risk Category Risks Relevant to Wasco Potential Impacts to Wasco (Non-Exhaustive) Transition Risks Policy & Legal: Implementation of governmental policies designed to tackle climate change • Increased pricing of GHG emissions (due to carbon pricing mechanisms) • Mandates and regulations impacting existing products and services • Loss of customers due to increased prices of products and services impacted by carbon tax liabilities • Higher compliance requirements and associated costs
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