Sustainability Report

RISK MANAGEMENT

Enterprise risk management (ERM) is overseen by the ESG Committee, which is responsible for identifying, evaluating, and prioritising key risks, as well as developing action plans to mitigate them. Climate-related assessments are conducted under two scenarios (RCP 4.5 and RCP 8.5) to evaluate potential impacts, as summarised in the table below.

In addition, the Committee has documented the principal risks and opportunities faced by Royal Selangor, ensuring a structured approach to risk governance and resilience planning.

Intermediate: Global means surface temperature is projected to rise and reach 2ºC by 2050.

RCP 4.5

Intermediate: Global means surface temperature is projected to rise and reach 2ºC by 2050.

RCP 4.5

REGULATORY AND MANDATORY DISCLOSURES

Risks

Description & response

Time horizon

Highest impact

Physical risks Acute & chronic

Risk: Potential disruptions to factories and showrooms due to extreme weather, such as flooding. Response: Mitigate risk by avoiding flood-prone sites and implementing contingency plans for affected locations. Risk: Trade barriers and sanctions affecting the supply of raw materials (e.g., Antimony), resulting in higher costs. Response: Maintain alternative alloy options using metal elements not subject to sanctions to ensure continuity of production. Risk: Regulatory requirements in transportation (e.g., batteries) and packaging (e.g., biodegradable materials) may change or tighten. Response: Ensure compliance with evolving regulations and integrate necessary changes into operational processes. Risk: Stricter regulations on clean energy could impact operational energy use and compliance. Response: Reduce energy consumption through more efficient processes and adoption of Green Energy Tariffs (GET). Risk: High energy usage in production processes affecting operational costs and sustainability goals. Response: Implement lower-energy casting methods and install VRV air conditioning systems with reduced power consumption.

2030-2050

Facilities & Operations

Transition risks Geopolitical

2025-2050

Operations

As Royal Selangor is not a publicly listed company under the jurisdiction of Bursa Malaysia, it is not subject to the regulatory and mandatory disclosure requirements set by Bursa Malaysia.

Transition risks Policy

Logistics

Transition risks Policy

Operations

Transition opportunities Technology

Operations

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