The Board holds ultimate responsibility for the Group’s ESG commitments, including climate-related issues, through strategic oversight and is supported by the Board Sustainability Committee (BSC) and Sustainability Steering Committee (SSC). Further information can be found in Sustainability Governance on page 122 of this report. GOVERNANCE Climate Action Climate change presents both risks and opportunities that shape our long-term business strategy. In November 2024, we initiated the identification of physical and transition risks, setting the foundation for a comprehensive assessment across all business units by 2025. These insights will drive our climate resilience planning and risk mitigation efforts. We are aligning our approach with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards and integrating climate considerations into operational strategies. Our immediate focus is on risk identification, categorisation, and management to enhance preparedness and regulatory alignment. STRATEGY We evaluate climate risks based on likelihood, financial impact, and potential effects on operational resilience. Key risk assessment strategies include: IDENTIFYING AND ASSESSING CLIMATE-RELATED RISKS 1 Conducting ongoing risk assessments to capture emerging climate risks. 3 Prioritising risks based on materiality to ensure that critical risks receive prompt management attention. 2 Engaging with internal and external stakeholders to ensure a comprehensive evaluation. Our climate risk management strategy focuses on mitigation, adaptation, operational resilience, and regulatory compliance. Risks will be addressed through mitigation, transfer, acceptance, or control measures, depending on their severity and impact. To manage climate risks effectively, we are working towards: • Enhancing energy efficiency and adopting sustainable technologies to reduce transition risks. • Investing in climate-resilient infrastructure to mitigate physical risks. • Monitoring regulatory developments to ensure compliance with evolving climate policies and requirements. • Incorporating climate performance indicators (e.g., energy use, emissions) into decision-making. • Continuously reviewing and updating risk strategies to align with climate trends and sustainability commitments. MANAGING CLIMATE-RELATED RISKS 146 FGV Holdings Berhad | Annual Integrated Report 2024 Environment
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