89 SECTION 4 SUSTAINABILITY JOURNEY INTEGRATED ANNUAL REPORT 2025 Associated Opportunities By proactively managing climate-related risks and embracing the energy transition, we unlock significant opportunities. Our strategic diversification allows us to capture new and growing revenue streams in the green economy, including infrastructure for renewable energy, hydrogen, and carbon capture. Decarbonising our operations enhances our efficiency and strengthens our reputation as a forward-looking partner, improving our access to sustainable finance. OUR PRINCIPAL SUSTAINABILITY RISKS The following principal sustainability risks have been identified through our internal risk assessment processes and, for climate change, a formal third-party assessment. These risks have the potential to materially affect our business performance, reputation, and long-term value creation. For each risk, we have also identified the associated opportunities that arise from our proactive management and mitigation strategies. Climate Change and Energy Transition As an integrated energy group, our business is exposed to both physical and transition risks associated with climate change. • Transition Risks: The global shift towards a low-carbon economy could impact demand for traditional energy services. Our 2025 Climate Change Risk Assessment (“CCRA”) identified that regulatory measures such as a prohibition on new oil and gas development or the removal of fossil fuel subsidies represent a “Severe” risk to our traditional project pipeline. Conversely, a slow or disorderly transition presents “Severe” risks related to geopolitical instability and trade protectionism, which could disrupt supply chains and create project uncertainty. • Physical Risks: Our CCRA identified that our principal physical risks are geographically concentrated. Our operations in Doha and Dubai face a “Major” risk from chronic extreme heat and water stress, which can impact employee health and operational efficiency. Our Malaysian operations (Shah Alam and Kota Kinabalu) face a “Major” risk from pluvial and coastal flooding, which could cause direct asset damage and logistical disruptions. Risk Description Our comprehensive climate strategy (as detailed in pages 99 to 104) serves as our primary mitigation approach. Key actions include: • Strategic Diversification: Proactively expanding our service offerings into growth sectors like offshore wind infrastructure, carbon capture storage, lowcarbon infrastructure, as well as hydrogen to capitalise on energy transition opportunities. • Decarbonisation of Operations: Aggressively reducing our Scope 1 and 2 emissions through investments in on-site solar and the adoption of biodiesel to meet our short-term target. • Physical Risk Adaptation: Leveraging findings from our CCRA to develop site-specific adaptation plans for our most vulnerable facilities. Mitigation Strategies and Actions Failure to manage these risks could lead to reduced revenue, asset impairment charges, increased operational costs from physical damages and difficulty in attracting capital. Impact Assessment SUSTAINABILITY JOURNEY
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