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 climate-related 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 Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario To ensure that our sustainability strategy remains resilient, we model our sustainability program against internationally-accepted standards. • Megachem is a member of the Responsible Care® program – a global environmental, health and safety (EHS) performance initiative for the chemical industry, • Our Environment, Health and Safety Management System is audited by a third-party accredited certification body in accordance with ISO 14001 standard. • We subject our sustainability practices to annual assessment by EcoVadis Sustainability Assessment System – an assessment system used widely in the chemical industry and assesses companies in the areas such as environment protection, labour practices, fair business practices and sustainable procurement • Under Singapore’s Green Nation Pledge program, we pledged to adopt environmental-friendly best practices to make our country a greener place. It marks our commitment in joining our nation to build a better and greener future. • We are a member of Roundtable on Sustainable Palm Oil (RSPO – an organisation that brings together stakeholders across the supply chain to develop and implement global standards for producing and sourcing certified sustainable palm oil. Megachem has included a climate scenario analysis in this Sustainability report. Sustainability Report – External Charters, Principles, Certification – Green Nation Pledge MEGACHEM LIMITED ANNUAL REPORT 2025 105 SUSTAINABILITY REPORT
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