2023 SUSTAINABILITY REPORT 86 CSE GLOBAL LIMITED 6.2.2.1 CSE GLOBAL’S FIRST SUSTAINABILITY LINKED LOAN In FY2023, CSE Global successfully negotiated a Sustainability Linked Loan (“SLL”) with a bank. This revolving credit facility will provide CSE Global with funding terms similar to a typical revolving credit facility, but with favourable terms for reductions in emissions intensity. At CSE Global, we see this as a first step in linking financial incentives to our sustainability performance. In the future, we foresee greater use of SLLs and other innovative financing mechanisms to help incentivise and steer us toward achieving our emissions targets. 6.2.3 PILLAR 3: RISK MANAGEMENT The processes used by us to identify, assess, and manage climate-related risks. We have established an Enterprise Risk Management (“ERM”) framework to ensure adequate and effective management of risks. The framework sets out governing policies, processes and systems pertaining to each of the key risk areas to which we are exposed and facilitates the assessment by the Board in the effectiveness managing each of our key risks. Recognising the impact climate-related risks may pose on our operations, we will progressively phase in climate-related risks as part of the overall ERM framework. 6.2.4 PILLAR 4: METRICS AND TARGETS The metrics and targets used to assess and manage relevant climate-related risks and opportunities. To assess climate-related risks and opportunities, we currently disclose energy consumption, Scope 1 and Scope 2 emissions, and paper consumption. We also have developed the following targets to manage our identified climate-related risks and opportunities and track our progress: • Reduce greenhouse gas carbon emission index by 10% by 2030 (Base year: 2020) • Reduce greenhouse gas carbon emission index by 1.0% annually • Reduce paper consumption index by 10% by 2030 (Base year: 2020) • Reduce paper consumption index by 1.0% annually. Please refer to section 6.3 of this report for an overview of our environmental performance. 6.2.5 OUR TCFD JOURNEY AHEAD This is our second year reporting our climate disclosures aligned with the TCFD recommendations, and we recognise that more efforts are required in our ongoing journey towards greater transparency and accountability in the business world as we address our climate risks and seek climate resilience. Hence, we are disclosing our TCFD roadmap to enable stakeholders to better understand our efforts in driving climate action and how we plan to integrate climate-related risks and opportunities into our business strategy in the coming years. Governance Strategy Risk Management Metrics and Targets • Strengthen the roles and responsibilities of the Board in monitoring and reviewing climate risks • Continued Board oversight of climaterelated risks and opportunities • Further integrate climate change considerations into all decision-making processes • Conduct climaterelated training for all Board Members and Management Team • Engage with external stakeholders as part of our climate-related risk identification process • Quantify the impact of identified climate-related risks and opportunities to our business • Conduct a climate risk assessment (scenario analysis) to understand the exposure of climaterelated risks to our business • Integrate climate-related risks within the ERM framework • Develop a process to manage identified climate-related risks, including assessing different mitigation measures • Continued monitoring and assessing of climate-related risks and opportunities • Continue reporting on Scope 1 and 2 emissions • Continue to track our environmental performance against targets • Continue to develop our Scope 3 GHG emissions inventory • Progressively expand the coverage of Scope 1, 2, and 3 emissions to include other overseas entities • Review other climaterelated metrics and targets
RkJQdWJsaXNoZXIy NTM2MDQ5