2023 SUSTAINABILITY REPORT 85 ANNUAL REPORT 2023 6.2.1 PILLAR 1: GOVERNANCE Our governance around climate-related risks and opportunities. CSE Group is committed to implementing an effective governance structure to ensure that the entire business is aligned to sustainability and creating positive, long-term impact, guided by our Group purpose and sustainability framework. The Board oversees all corporate governance and operational matters relating to our business and has oversight of all climate-related risks and opportunities. Climate-related issues are also considered as part of our business plans and diversification strategy. The Board has regular discussions with management surrounding the topic of climate-related risks and opportunities, such as embarking on renewable energy projects. The Board also reviews and monitors targets on an annual basis to ensure they are on track. CSE Group complies with SGX’s new requirement for Directors to undergo mandatory sustainability training. Our Board of Directors have attended sustainability training courses on ESG Essentials and Sustainability for Directors offered by the Singapore Institute of Directors. 6.2.2 PILLAR 2: STRATEGY The actual and potential impacts of climate-related risks and opportunities on our businesses, strategy, and financial planning. We worked with an external consultant and conducted our first climate assessment in FY2022 to identify our preliminary climate-related risks (chronic and acute) and opportunities across our portfolio. This included an analysis of current and upcoming trends specific to the technology industry and regulations specific to the location of our operations, as well as discussions with internal stakeholders. The following table summarises our climate-related risks across the short- (1-2 years), medium- (3-4 years) and longterm (5 years and above) as well as its potential impact on our business. Identified climate-related risk Likelihood of climate-related risk Impact of climate- related risk SG ANZ UK USA Physical risks Hurricane • Reduced revenue due to potential risks of supplier, logistics and network disruption • Increased operating costs from volatile fossil fuel prices or increase in energy consumption • Weakened investor confidence for not shifting towards the adoption of greener products Wildfires Droughts Floods Extreme heat Changes to precipitation pattern Transition risks More stringent carbon tax Increased cost of raw materials Customer’s preference for greener products Increased stakeholder concern Increase in digitalization and technology Additional costs from reporting requirement Legend: Short-term Long-term Medium-term Risk not identified We have also identified opportunities across the short- and medium-term in the areas of: • Investing in green technology such as energy-efficient electronic equipment, LED lighting and solar power • Conducting flood and heat risk assessments on existing properties • Ensuring all products meet industry standards through certifications • Including climate criteria as part of the annual supplier review
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