OUR JOURNEY TO CLIMATE ACTION Transition Risk Potential Impact Potential Opportunities Market Long-term (>11 years) • Increased cost to maintain a climate-responsive value chain • Decrease in profit from cost increase • Opportunity to lead climateprogressive palm oil production Reputation Long-term (>11 years) • Increased stakeholder concerns about climate impacts and expectations of climate action on the Group where non-action may affect brand reputation • Revenue affected by negative stakeholder sentiments that influence product demands • Opportunity to strengthen brand reputation by leading a climateconscious palm oil brand Physical Risks Physical Risk Potential Impact Potential Opportunities Acute Short term (1-5 years) to long-term (>11 years) • Potential short-term extreme climaterelated events i.e., heat waves, flooding, landslides, etc. • Short-term extreme climate-related events may cause reduced yield, high impact on workforce, damage to plantations and assets as well as losses for the Group • Opportunity to innovate and adopt technology and processes that withstand acute climate-related events ahead of industry peers Chronic Long-term (>11 years) • Potential long-term effects such as land inundation and extreme variability in weather patterns i.e. high temperatures, intense rain, etc. • Long-term climate-related impacts may cause delays in yield and production as well as increase operating costs, capital costs and insurance costs to manage impacts on plantations and production • Opportunity to adopt innovative technology and processes that withstand long-term climate impacts in advance of industry peers Boustead Plantations Berhad 146
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