86 CSE Global Limited 2024 SUSTAINABILITY REPORT 6.2.2 STRATEGY The actual and potential impacts of climate-related risks and opportunities on our businesses, strategy, and financial planning. In FY2022, we worked with an external consultant and conducted our first climate assessment to identify our preliminary climate-related risks (chronic and acute) that may impact our operations across our portfolio, in Singapore, Australia, New Zealand, the United Kingdom and the United States. This included an analysis of current and upcoming trends specific to the technology industry and regulations specific to the location of our operations. This assessment also considered discussions with internal stakeholders to better inform our strategy. The following table summarises our climate-related risks across the short- (1-2 years), medium- (3-4 years) and long-term (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 Medium-term Long-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 In FY2024, CSE Global continued to leverage the Sustainability-Linked Loan (SLL) secured in FY2023, reinforcing our commitment to integrating sustainability into our financial strategy. Over the past year, we have been monitoring our sustainability performance, especially GHG emissions index, to align with the incentives of the SLL. 6.2.3 RISK MANAGEMENT The processes used by us to identify, assess, and manage climate-related risks. CSE Global has established an Enterprise Risk Management (“ERM”) which systematically manages and mitigates risks across our operations. This framework outlines governance structures, policies, and processes to assess risk exposure, enabling the Board to evaluate the effectiveness of risk management strategies. Recognising the growing materiality of climate-related risks, we will consider how to progressively integrate climate risk considerations into our ERM framework.
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