Risk Management Addressing the risks and managing the potential impact of those risks supports Megachem’s achievement of their objectives. TCFD RECOMMENDED DISCLOSURES OUR APPROACH REFERENCE Describe Megachem’s processes for identifying and assessing climate-related risks Our Sustainability Committee identified and assessed the material climate-related risks based on feedback garnered from our stakeholders and internal reviews. Sustainability Report – Materiality Assessment Describe Megachem’s processes for managing climate-related risks The Board is responsible for the governance of risk across the Group, while ensuring that management maintains a sound system of risk management. The Management shares and discusses with the Board annually its significant risk issues and how these risks can be managed. Sustainability Report – Megachem Sustainability Strategy Describe how processes for identifying, assessing, and managing climate-related risks are integrated into Megachem’s overall risk management Managing climate-related risks and opportunities is a key component of Megachem’s ERM framework. Having identified the risks, processes are implemented to manage the risks. These processes are designed by adopting internationally recognised standards such as ISO management system and EcoVadis Sustainability Assessment System. Sustainability Report – Megachem Sustainability Strategy Metrics & Targets Metrics and targets are used to assess and manage relevant climate-related risks and opportunities. TCFD RECOMMENDED DISCLOSURES OUR APPROACH REFERENCE Disclose the metrics used by Megachem to assess climate-related risks and opportunities in line with its strategy and risk management process Megachem’s Sustainability plan has annual targets to track and monitor progress towards our ESG goals. Key metrics include carbon emissions, energy and water usage, and waste management, which are published in our Sustainability report. Sustainability Report – Environment Performance Highlights Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks • Megachem has measured and disclosed Scope 1 and Scope 2 GHG emissions and related risks. • Megachem has also commenced the disclosure of Scope 3 emissions in its Sustainability Report. Sustainability Report – Environment Performance Highlights Describe the targets used by Megachem to manage climate-related risks and opportunities and performance against targets 2026 Targets Chemical waste generated not exceeding Maximum 0.5kg per 1000kg Sales Volume Energy consumption (non-production activities) Reduce 5% Waste water generated from production (average per blending) Reduce 4% Scope 1 GHG Emission reduction Reduce 2% Scope 2 GHG Emission reduction Reduce 2% Compliance with legislation relating environmental management 0 non-compliance Sustainability Report – Environment Performance Highlights MEGACHEM LIMITED ANNUAL REPORT 2025 106 SUSTAINABILITY REPORT
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