CLIMATE CHANGE Related UNSDGs Why Is It Important Climate change has the potential to directly affect Tropicana’s operations, project timelines, and long-term business resilience. Physical risks such as flash floods, extreme rainfall, and rising temperatures can disrupt construction progress, increase development costs, and affect worker safety. Over the longer term, climate conditions may also affect the liveability, durability and maintenance requirements of completed developments, influencing asset value and purchaser confidence. Transition risks, such as new building regulations, higher energy tariffs, and growing demand for low-carbon and climate-resilient buildings, may also affect development costs, regulatory compliance and the Group’s long-term competitiveness. 8 OUR APPROACH Governance The Board of Directors oversees sustainability-related risks, including climate-related risks, as part of its overall responsibility for risk management and long-term business resilience. Management supports the Board through regular risk reviews and integrates climate-related considerations into project planning, development design, operational monitoring, and cost assessments where relevant. Climate-related risks are assessed alongside other operational, development and financial risks within Tropicana’s enterprise risk management processes. These risks may arise over the short, medium, or long term depending on project duration, site location, asset characteristics and evolving regulatory and environmental conditions. To strengthen risk awareness, Tropicana has begun incorporating climate scenario references as part of its internal risk assessment processes, including through a climate risk assessment conducted during the financial year. This included Goal 13: Climate Action consideration of potential physical climate impacts under higher emissions conditions and transition risks associated with the global shift towards a lower-carbon economy. These scenarios are used to support management’s understanding of potential exposures and are not intended as forecasts. Climate-related considerations may influence: • Site selection and development planning • Development design and building specifications • Project scheduling and cost assessments • Long-term asset resilience and performance These considerations are applied alongside commercial, technical, and regulatory factors to support informed decisionmaking. The Group supports Malaysia’s broader transition towards a lower-carbon economy, including national commitments to reduce greenhouse gas emissions, and seeks to align its development planning and operations with applicable climaterelated regulatory requirements and policy developments, while continuing to monitor relevant regulatory, market, and industry developments that may affect its developments and operations. AR 2025 | SUSTAINABILITY 130
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