Understanding Physical Climate Risks Physical climate risks arise from changing weather patterns that may directly affect project delivery and the long-term performance of Tropicana’s developments. These include acute risks from extreme weather events and longer-term chronic changes in climate conditions. To support risk awareness, Tropicana referenced high-emissions climate scenarios (SSP5-8.5) to understand potential exposure to more severe weather conditions under a higher-risk climate pathway and to inform development planning and risk management. Risk Type Risk Description & Potential Impact Adaptation Measures Acute Physical Risk Extreme weather events such as heavy rainfall, flooding, or heatwaves may disrupt construction progress, affect site accessibility, reduce productivity, and delay project completion. Financial impacts may include increased development costs, additional protective works, rectification expenses, and potential Liquidated Ascertained Damages (“LAD”). • Monitoring weather forecasts and site conditions • Implementing site-specific drainage systems, water pumps, and flood protection measures • Adjusting construction schedules where necessary • Providing shaded rest areas and heat stress management for workers • Securing materials and equipment to prevent damage • Maintaining contingency buffers within project timelines Chronic Physical Risk Rising temperatures and changing rainfall patterns may affect construction conditions and, over the longer term, influence development design requirements, building durability and maintenance needs. • Considering site elevation, drainage capacity, and flood risks during development planning • Implementing appropriate structural and drainage design • Incorporating ventilation and heat-resilient design considerations • Applying preventive measures to protect materials and building components AR 2025 | SUSTAINABILITY 132
RkJQdWJsaXNoZXIy NDgzMzc=