ENHANC ING GOVERNANCE ACROSS THE GROUP Sect ion 09 71 SUSTAINAB I L I TY Report 2022 SPECIFIC RECOMMENDATIONS ORGANISATION’S ADOPTION OF RECOMMENDATIONS Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning. Impacts to Ranhill’s business model, operations as well that to subsidiary companies are provided above. The Group is moving towards strengthening its existing oversight on climate change by developing a Climate Change Policy, undertaking climate change scenario planning in relation to likely scenarios based on increases in temperature and to also establish an internal carbon price post the development of its GHG inventory and carbon emissions baseline, which is being undertaken by MGTC. SPECIFIC RECOMMENDATIONS ORGANISATION’S ADOPTION OF RECOMMENDATIONS Describe the organisation’s processes for identifying and assessing climaterelated risks. In identifying climate change risks, Ranhill has considered the severity of risks based on the following considerations: • The probability of the risk event occurring. • The extent of impact in terms of financial and non-financial impacts should the risk event occur. • Apart from Ranhill, who would be the affected parties. • What extent of resources are required to mitigate the risk event if mitigation is possible. The Group is looking to further establish its risk management approach for climate change and to further integrate climate change into the Group Risk register. Identification of climate risks is at preliminary stage and will be improved going forward. Describe the organisation’s processes for managing climate-related risks. SPECIFIC RECOMMENDATIONS ORGANISATION’S ADOPTION OF RECOMMENDATIONS Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process. Where possible, risks factors are quantified, that is the usage of revenue, costs, time lost, injuries and fatalities to assess risk impacts. Other indicators used include stakeholder perceptions, brand equity, access to financing, employee morale and satisfaction. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and the related risks. Scope One and Scope Two emissions are provided in SR2022 on section Environmental Awareness and Preservation page 43. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets. Ranhill’s KPIs and targets in relation to carbon change shall be set upon completion of the development of its GHG inventory and carbon baseline which is presently being undertaken by MGTC. ENHANC ING GOVERNANCE ACROSS THE GROUP RISK METRICS AND TARGETS
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