STRATEGY STRATEGY The Task Force on Climate-related Financial Disclosures (TCFD) framework includes a strategic boundary component within its recommendations focusing on how organizations should disclose the actual and potential impacts of climaterelated risks and opportunities on their businesses, strategy, and financial planning. The key elements to consider include: 1. CLIMATE-RELATED RISKS AND OPPORTUNITIES Timeframe: to describe the climate-related risks and opportunities identified over these time horizons • Short-term (to 2025) • Medium term (to 2030) • Long term (to 2050) Business Areas: The impacts focus on our direct operation and products including adaptation and mitigation activities, R&D investments, acquisitions, and divestments. Material Financial Impact: A significant financial impact is defined as any loss or gain surpassing 15% of Net Profit. Nonetheless, this criterion alone does not determine prioritization. We also consider the probability of events occurring. This means scenarios with low financial impact, but a high likelihood may still be categorized as high-risk scenarios. 1. 2. 3. Climate-Related Risks and Opportunities Impact on Business and Strategy Transition Plan Mui Dinh Wind Farm, Vietnam CSR Activity, Indonesia Climate Change Report 2024 19 Introduction Governance Strategy Risk Management Metrics & Targets Looking Ahead
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