Sustainability Report TFCD DISCLOSURE The recommendations of the TCFD have four overarching elements – Governance, Strategy, Risk Management and Metrics & Targets. Governance Megachem’s Board provides the leadership and formulates our Sustainability strategy and ensures that our management carries out the execution of its strategy effectively. TCFD RECOMMENDED DISCLOSURES Our Approach Reference Describe the Board’s oversight of climate- related risks and opportunities Our Board’s primary roles in our sustainability strategy are: • to champion sustainability and climate-related strategy as an integral part of our long-term business strategy • to define our Sustainability Vision and Objectives • assess and identify the Group’s ESG and TCFD risks and opportunities • to approve the material aspects of our sustainability program • to monitor and oversee progress of our climate commitments and sustainability journey • to approve our Sustainability Reports Sustainability Report - Board Statement Describe management’s role in assessing and managing climate-related risks and opportunities Steering our Sustainability journey are representatives from each functional team within the Group who collectively forms the Sustainability committee. This committee reports to the Executive Committee headed by our Managing Director. Our Executive Committee • reviews and approves key sustainability approach • identifies, assess, monitors, and reports on climate-related issues and strategies to the Board • evaluates ESG performance against the targets • review and recommend the annual Sustainability Report for Board’s approval Our Sustainability Committee • drives the implementation of our sustainability program and climate-related goals • prepares Sustainability Report annually Sustainability Report - Sustainability Leaders Strategy By effectively communicating our sustainability strategy, stakeholders can gain a deeper understanding of how climate-related issues may impact our future performance. TCFD RECOMMENDED DISCLOSURES Our Approach Reference Describe the climaterelated risks and opportunities that the organisation has identified over the short, medium, and long term Describe the impact of climate- related risks and opportunities on the organisation’s businesses, strategy, and financial planning Based on feedback garnered from our key stakeholders, Megachem conducts materiality assessments annually to identify material ESG issues for the business. The following are key climate-related risks that may have significant impact on our stakeholders and us. • there is an increasing emphasis on sustainability practices across the whole chemical supply chain. Failure to meet these sustainability standards may lead to loss of business. • Failure to meet climate-related regulations may lead to fines and loss of business. • There is potentially higher compliance cost in the form of carbon taxes, water tariffs or plastic tax. • Extreme changes in climate leading to floods and damage to goods Sustainability Report - Environment Sustainability Report – Managing Climate Risk 95 ANNUAL REPORT 2024
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