ENHANC ING GOVERNANCE ACROSS THE GROUP Sect ion 09 69 SUSTAINAB I L I TY Report 2022 ENHANC ING GOVERNANCE ACROSS THE GROUP SPECIFIC RECOMMENDATIONS ORGANISATION’S ADOPTION OF RECOMMENDATIONS Describe management’s role in assessing and managing climaterelated risks and opportunities. Within the sustainability governance structure, the role of management is to develop and implement effective strategies towards enabling a progressive reduction in carbon footprint that ultimately enables the achievement of the Ranhill Net Zero Carbon 2050 aspiration. Management is tasked with allocating sufficient resources towards ensuring effective implementation of the aforementioned strategies, to develop internal capacity and the necessary human talent to propel the Group’s climate and larger ESG agenda. This includes developing tangible KPIs and targets to gauge present performance, monitoring day-to-day performance and promoting energy efficiency, carbon reduction and waste reduction. Management is also tasked at ensuring there are robust mitigation strategies and systems in place for addressing emerging and existing risks arising from climate change. SPECIFIC RECOMMENDATIONS ORGANISATION’S ADOPTION OF RECOMMENDATIONS Describe the climaterelated risks and opportunities the organisation has identified over the short, medium, and long term. Ranhill has identified the following climate change risks segmented based on physical, transitional and reputational risks. The implications arising from these risks could impact business operations or existing operations, physical assets, access to financing, or access to markets as well as the availability and costs of inputs required for the business model. CLIMATE CHANGE: PHYSICAL RISKS • As mentioned in SR2022, climate change can cause irregular weather patterns, leading to drought or heavy rainfall. This could affect the availability of water in several locations, especially in existing water stressed locations. • Heavy rainfall can lead to flash flooding, which would disrupt WTP operations, possibly necessitating temporary or prolonged shutdown of the facilities. • Rising seawater levels could push seawater into rivers, thus inundating several water sources. WTPs in such affected areas may need to be shutdown to prevent saltwater from entering the water system. This would impact water supply as well as lead to revenue loss. • Flash floods may see infrastructure such as roads being damaged. This would affect the movement of personnel and also affect ongoing NRW loss management activities. Bad weather may cause delays in activities. • Frequent incidents of flooding may necessitate WTPs being relocated to avoid further damage. This would incur significant CAPEX. Damages cost by flooding to WTPs and other water assets would ultimately require additional OPEX for repair works and to source replacements for equipment and machinery. • As mentioned, infrastructure development works i.e. WTPs, WWTPs, works on construction sites and offshore oil and gas assets may also be disrupted for prolonged periods due to adverse weather conditions brought on with increasing severity and frequency by climate change. This would lead to delays in completion and revenue recognition of projects and additional precautionary measures required may increase project costs. • Wetter and more slippery conditions can lead to increased OHS risks thereby affecting OHS incidents. • Increasing ambient temperatures may lead to heatwaves which can affect workers’ health, both in the short and long-term. STRATEGY
RkJQdWJsaXNoZXIy ODQxNzg=