SUSTAINABILITY STATEMENT CLIMATE RESILIENCE ACROSS OUR BUSINESSES Our FY2026 climate review combines Network for Greening the Financial System (NGFS) transition scenarios with Malaysian evidence on flooding and extreme heat. It assesses, qualitatively, how these could affect our costs, technical capability and contract delivery; quantifying the financial effects is planned for FY2027. Changing energy and customer markets Changes in energy supply and customer technology can affect what we pay for inputs, the equipment specifications customers require and demand for our services. The NGFS scenarios let us test different possible paths for these changes across the markets we serve. The Nationally Determined Contributions reference case The Nationally Determined Contributions (NDCs) scenario assumes governments deliver the climate pledges they have already made. For Destini, it shows how energy costs, supplier requirements and customer investment may evolve under current commitments, and serves as the reference case against which earlier and later transition pathways are compared. Contrasting the timing of change Net Zero 2050 and Delayed Transition test different timings of adjustment to 2030, 2040 and 2050. Net Zero 2050 is consistent with limiting warming to 1.5°C and is our scenario aligned with the Paris Agreement. Bank Negara Malaysia (BNM)’s climate risk stress-testing exercise similarly pairs NGFS transition scenarios with a separate severe flood scenario; both transition conditions and local hazards are relevant to our operating footprint. The FY2027 assessment will use Destini’s own operating records, asset values and contract terms to quantify the relevant financial effects. SCENARIO COMPARISONS FOR MALAYSIA The scenarios explore how the timing of policy and technology change could affect our operating costs, investment needs and demand for our services. The Department of Statistics Malaysia (DOSM) reported national flood losses of RM636.9 million in 2025, of which RM380.2 million was damage to public assets and infrastructure. Separately, an estimated 62,000 competent persons will be needed by 2050 to deliver Malaysia’s renewable-energy goals. For Destini, these trends make site access, supply continuity and technical skills core business-planning issues. Scenario Transition timing Destini assessment focus NDCs Pledged policy commitments Energy and supplier costs; customer specifications Net Zero 2050 Earlier, stronger adjustment Capability investment, skills and new service demand Delayed Transition Stronger adjustment after 2030 Abrupt input-cost changes and contract recovery Fragmented World Divergent market policies Cross-border sourcing and delivery continuity ENVIRONMENTAL STEWARDSHIP SUSTAINABILITY DESTINI BERHAD 56 ANNUAL REPORT 2026
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