Sustainability Report 2023 28 TCFD STATEMENT We published our inaugural TCFD report in line with SGX requirements to communicate to our stakeholders the key climate-related risks and opportunities impacting the business and corresponding resilience strategies in response in 2022. Through a qualitative climate-impact assessment, we were able to identify key climate-related risks such as extreme heat, flooding and increases in carbon pricing which may financially impact the business. The results from this exercise will be used to inform our climate strategy and risk management policies going forward, allowing us to strengthen our resilience towards climate-related risks and enable sustainable value growth in our operations. Our commitment to sustainability is deeply embedded within our management and governance processes. Geo Energy maintains a tailored approach in managing climate-related issues and opportunities which spans across our operations and led by our leadership team. The dedicated roles and responsibilities of the Board, Board-level committees and managerial functions are outlined in the Sustainability Governance section of this report. We also actively monitor and assess the potential climaterelated risks impacting our business activities through the governance of the Board and Enterprise Risk Management (ERM) Working Group. The ERM Working Group and assigned Risk Owners are responsible for managing and mitigating the impact of climaterelated risks across our operations to ensure that we continue to create value for the communities we work in while limiting the impact on the environment. Our approach to manage climate risk is integrated into our risk management framework as highlighted in our Sustainability Governance and Risk Assessment and Management sections on pages 12-13 and 20 respectively. To further build our understanding of the key climate risks impacting our business and improve our risk management approach, we are planning on conducting a quantitative scenario analysis in the future. Utilising a range of science-based pathways, scenarios and modelling we aim to identify key climate-related transition and physical risks which would impact us the most financially. Climate Scenario Analysis In the previous year, we have carried out a qualitative scenario analysis to better identify, evaluate and manage the potential impacts of climate risks and opportunities on our business. A non-exhaustive list of the climate risks and opportunities assessed are as follows: a) Physical risks • Acute - risks resulting from extreme weather events, such as cyclones and floods; and • Chronic - risks resulting from longer-term shifts in weather patterns, such as sea level rise. b) Transition risks and opportunities The risks and opportunities that occur during the transition to a low-carbon economy, including: • Policy & Legal - Regulatory actions to mitigate greenhouse gas (GHG) emissions; • Technology - Disruptions from technological innovations that support a low-carbon economy; • Market - Shifts in supply and demand for products and services; and • Reputation - Changing stakeholder expectations. Our scenario analysis utilises various sciencebased climate scenarios to project future pathways based on GHG emissions and different socioeconomic conditions. For transition risks and opportunities, we utilised the International Energy Authority’s (IEA): Alternative Pledges and IEA Stated Policies while our physical scenario analysis uses two scenarios from the Intergovernmental Panel on Climate Change (IPCC) 6th Assessment Report, published in 2021. Further explanation on the data, scope and assumptions used in the analysis can be found in the table below.
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