71 INTEGRATED ANNUAL REPORT 2024 Overview of Wasco Berhad Key Messages Value Creation Commitment to Governance Sustainability Journey Financial Statements Other Information SUSTAINABILITY REPORT Risk Category Risks Relevant to Wasco Potential Impacts to Wasco (Non-Exhaustive) Transition Risks Technology: Write-offs for investments in obsolete technologies or the need for investments in new, more sustainable technologies • Transition to lower-emission technologies • Increased investments in climate-resilient and low-carbon infrastructure • Higher spending on workforce upskilling • Higher spending on research and development and innovation Market & Economic: Market shifts in supply and demand for certain commodities, products, and services • Changing customer behaviour and/or investor expectations • Untapped opportunities arising from new stakeholder demands • Higher risk of losing access to capital markets due to lower market valuation and failure to meet finance providers’ climate-focused expectations Reputational Risks: Damage to brand value or reputation • Increased stakeholder concern or negative stakeholder feedback • Negative impact on overall reputation (e.g. due to failure to meet climate-related goals, or lack of climate action), resulting in loss of customers as well as lower employee attraction and retention Risk Category Risks Relevant to Wasco Potential Impacts to Wasco (Non-Exhaustive) Physical Risks Acute Physical Risks: Exposure to increasingly frequent and severe extreme weather events • Increased severity of extreme weather events • Higher spending on repairs and maintenance of infrastructure/offices damaged from weather events • Increased frequency and severity of network and customer service disruptions • Devaluation and/or early retirement of assets in high-risk locations (e.g. flood-prone or water-scarce areas) • Reduced quality of services due to lower productivity • Higher insurance premiums and/or reduced availability of insurance for assets in high-risk locations Chronic Physical Risks: Exposure to longer-term, incremental shifts in climate patterns • Changes in precipitation patterns and extreme variability in weather patterns • Rising mean temperatures • Rising sea levels Opportunity Category Opportunity Relevant to Wasco Potential Impacts to Wasco (Non-Exhaustive) Resource Efficiency: Use of more resourceefficient processes and equipment to optimise consumption of energy, water, waste, and materials • Use of more efficient production and distribution processes • Lower utility bills, potential carbon prices, and costs from purchased goods and services due to reduced consumption of resources • Increased value of fixed assets (e.g. highly rated energy-efficient plants)
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