Sustainability Report 2023 20 Our initiatives and performance We have implemented an annual declaration on sanction-related risk exposure via the Conflict of Interest Declaration Form. Should a director or an employee be exposed to the sanction-related risks in connection with Sanctions Law (Sanction Activity), an assessment will be conducted by the CFO and HR department. The assessment report will be presented to the Audit and Risk Committee and the Board for further investigation. By performing this assessment, the Company will have a better understanding of and is able to respond to and manage the financial and operational impacts of sanction-related risks on the Company. The Company will also be better equipped to provide information to its stakeholders on sanctionrelated risk exposure, impact and measures as part of its continuing disclosure obligations under SGX Rule 703. In 2023, there were zero recorded cases of corruption and bribery, zero incidents of conflict of interest, zero recorded case of noncompliance with laws and regulations. We uphold our continued commitment to strict policies and preventive measures. Our goals and targets Moving forward, we seek to adhere to the guidelines and principles as set out in the Code. We also target to maintain zero cases of corruption and bribery and incidents of conflict of interest. Furthermore, we aim to appoint a director who possesses skills and experience in diverse environmental, social, and governance domains, with a particular emphasis on those relevant to the coal and commodity sectors, in addition to ensuring the presence of a minimum of one female director. The annual report page 22 provides additional insight into these board diversity targets. RISK ASSESSMENT AND MANAGEMENT [GRI 2-12, 2-13] How we manage this The Board and Senior Management recognises the importance of risk management practices to safeguard stakeholders’ interests and the Group’s assets. These practices provide reasonable assurance for the integrity and reliability of financial information and safeguard the accountability of assets. As such, Geo Energy’s ERM Working Group, consisting of the CEO, CFO, and various heads of department, are responsible in devising and implementing our ERM Framework. Under our ERM Framework, a risk identification and assessment process is conducted along with monitoring and reporting across all aspects of the Group’s operations. The processes are as follows: • At the operational level, an annual risk workshop is held for key management personnel of the respective business units (the risk owners) and the ERM Working Group, to identify the top risks, including climate risks, affecting the Group and provide countermeasures for risks identified. All identified risks are then assessed, analysed and prioritised by their level of importance. • The ERM Working Group outlines the action plan to mitigate the impact of the identified risks, while taking into account the potential cost of implementation. • Each Risk Owner is then assigned prioritised risks and is responsible to monitor, control and report on the status and effectiveness of each risk response action to the ERM Working Group. • The top risks identified are then presented to the ARC and Board on an annual basis for review and approval of the adequacy and effectiveness of the Group’s risk management measures and internal protocols. Our initiatives and performance Key events and emerging trends faced by the Group in 2023 include coal price fluctuation, changes in government policies, cybersecurity risks and data protection, high interest rates, and managing risks and impacts of climate change and sustainability. • The ERM Working Group, in consultation with the Company’s ERM consultant, also reviewed the Group’s current risk management processes to identify gaps in practices and recommend better practices and countermeasures for the gaps and risks identified. Appropriate mitigation actions and monitoring mechanisms were then established to respond to the risks and changes within the Group and external business environment. All findings are reported to the ARC and Board on an annual basis. The last gap assessment on the Group’s ERM process was performed in January 2023. • We manage our environmental and social impacts with our Environmental and Social Management System (ESMS). With the aid of its systemic processes, ESMS has helped us to identify, assess, manage, and mitigate the environmental and social risks. Our goals and targets For the upcoming fiscal year, we target to continue holding ourselves to a high standard of performance for our risk assessment and management. We will continue to monitor and address the gaps in our risk management practices, as well as establish countermeasures to increase the transparency and comprehensiveness of our governance measures, ensuring responsible business practices.
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