84 WASCO BERHAD SECTION 4 SUSTAINABILITY JOURNEY Digitalisation 4 Using tools such as generative artificial intelligence (AI) and big data analytics to increase efficiency in operational processes and support risk management decision-making. Impact Materiality Negative Impact Positive Impact Actual or Potential Value Chain Step Page No. Digitalisation introduces vulnerabilities such as data breaches and security incidents, adversely impacting customers’ and suppliers’ sensitive data. As part of our digital transformation strategy, we expect growing adoption of automation and advanced data analytics to support our sustainability objectives. Supporting automation and adopting digital technologies can enhance our operational efficiency and risk management through improved data accuracy. The introduction of the Wasco CARE Plus Programme has shown that digitalisation can create safer, more efficient, and productive working environments. Own Operations Downstream 54 Increasing automation and digitalisation in pipeline coating, fabrication and engineering are accelerating changes to human capital requirements. Failure to assess and manage the implications of adopting new technologies may result in workforce skills gaps and reduced job security for employees. Providing employees with structured training and development opportunities to upskill and develop digital competencies enables them to better adapt to evolving technologies, thereby strengthening their job security and enhancing their career growth. Own Operations Downstream 54 Financial Materiality Risk Opportunity Timeframe Value Chain Step Page No. Significant upfront capital investment in digital technologies may temporarily reduce cash flow and, if not managed effectively, could lead to implementation challenges, cost overruns, and heightened cybersecurity risks. Effective digitalisation, supported by the appropriate system updates and upskilling of employees, can enhance our operational efficiency by reducing manual errors and streamlining workflows, thereby enhancing customer satisfaction. Short-term to Medium- term Own Operations 54 SUSTAINABILITY JOURNEY
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