Based on identified climate-related risks and opportunities in the latest climate scenario analysis, no changes were required for CLAR’s underlying business model. [IFRS S2 14(a)(i), 22(a)(i)] Potential impacts of climate-related risks and opportunities assessed across the portfolio were identified under the different scenarios. CLAR faces more exposure to physical risks under the 3°C scenario in the long term relative to transition risks as minimal transition policies are expected to be in place and the development of low-carbon technology or related market changes may be slow. Conversely, under the 1.5°C and 2°C scenarios, CLAR faces higher levels of transition risks as more stringent climate-related policies are expected to be introduced and implemented. [IFRS S2 22(b)(i)] While CLAR has identified its climate-related risks and opportunities and associated risk ratings as part of the latest climate scenario analysis, the detailed quantitative information relating to these risks are not currently disclosed as the financial effects of each identified risk and opportunity are not separately identifiable at present, and contains an inherent level of measurement uncertainty. The insights on both quantitative and qualitative assessments of the risks identified provide a basis for the next steps in understanding the severity of risk impacts across time horizons30. The outcomes of the FY 2022 climate scenario analysis for CLAR’s portfolio and the mitigating measures which are both applicable to CLAR in FY 2025 can be found in CLAR’s Sustainability Report 2023 and on CLAR’s website. For FY 2025, CLAR has affirmed that the outcomes of the FY 2022 climate scenario analysis remain relevant to CLAR portfolio. As an ongoing process, CLAR, alongside CLI, will review and update, if appropriate, the processes associated with risk management in order to account for the identified material environmental and climate-related risks. Climate Transition Plan - Risk Management CLAR’s assessment of climate resilience is integrated into the annual, group-wide RCSA exercise, which informs its strategic planning process. The RCSA adopts a structured risk matrix, which prescribes criteria for how each identified risk can be categorised based on the potential impact and likelihood [IFRS S2 25(a)(iii)] . These criteria, which are communicated groupwide, differ depending on the type of risk. Whilst scenario analysis serves as a helpful tool to inform decision-making and test business resilience against plausible futures, it is not a precise predictor of future performance and outcomes. CLAR acknowledges the inherent limitations and uncertainties in this modelling, particularly regarding future policy, market, and technological shifts, and recognise that these strategic insights remain subject to the evolving nature of global climate trajectories. The CLI ERM framework and the ISO 14001-certified EMS continuously supports the proper management and mitigation of the identified climate-related risks and opportunities. Transition risks associated with evolving local and global climaterelated regulations as well as changing market and stakeholder expectations will continue to be closely monitored by CLAR to ensure compliance. Physical risks, such as floods, rising temperatures, and other extreme weather events are on the radar and its potential impacts on the portfolio are currently being managed. CLAR’s risk management processes to address its key risks and uncertainties, including those related to climate change, are discussed further in its AR 2025, Risk Management section on pages 98 to 103. 30 Time horizons are defined in alignment with our business planning cycles for assessing climate-related risks and opportunities: short-term (2-3 years), medium-term (until 2030), and long-term (beyond 2030). Sustainability Report 2025 21
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