83 SECTION 4 SUSTAINABILITY JOURNEY INTEGRATED ANNUAL REPORT 2025 Climate Change 3 Mitigating and adapting to the impacts of long-term shifts in climate patterns, including physical risks (e.g. extreme weather events, temperature changes and chronic environmental stresses) and transition risks arising from evolving policies, technologies, and market expectations. Impact Materiality Negative Impact Positive Impact Actual or Potential Value Chain Step Page No. Rising exposure to extreme heat and drought conditions in climatesensitive regions, including in Malaysia and the Middle East where we operate, may heighten the risk of heat-related illnesses and psychological stress among employees. Raising awareness of climaterelated risks and adaptation measures among employees fosters a culture of shared responsibility and helps to safeguard health, well-being, and resilience in the workplace. Own Operations 99 to 104 Financial Materiality Risk Opportunity Timeframe Value Chain Step Page No. Wasco’s infrastructure, particularly in Shah Alam, Kuantan, Kota Kinabalu, Dubai, and Doha, are exposed to extreme weather events, including extreme heat, heavy rainfall, flooding, and landslides, which can damage assets and disrupt operations, leading to costly repairs and downtime. Transition risks, including evolving regulations, technologies, and market expectations, may also require additional investment to remain competitive and compliant over time. Wasco has conducted a dedicated Climate Change Risk Assessment to identify and tackle the most salient risks. Investing in climate-resilient infrastructure and strengthening our adaptive capacity helps to mitigate operational risks and safeguard business continuity. At the same time, leveraging our existing technical strengths to serve emerging markets such as Carbon Capture, Utilisation, and Storage, positions Wasco to benefit from the global transition to a low-carbon economy and diversify its future revenue streams. Medium- term to Long-term Own Operations 99 to 104 Increasingly stringent climaterelated disclosure requirements may raise compliance costs and expose gaps in performance, potentially affecting Wasco’s competitiveness if we do not keep pace with expectations for our sector. Evolving climate-related disclosure requirements are expected to increase the energy sector’s focus on emissions reduction, creating opportunities for Wasco to strengthen our market positioning while supporting our employee attraction and retention efforts. Medium- term to Long-term Own Operations 99 to 104 SUSTAINABILITY JOURNEY
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