Solar panels at our Land System business. Each business unit utilises the risk likelihood and impact parameters to identify their key risk exposures over a five-year horizon, while assessing and managing risks within their own risk register through detailed action plans, annual business budgeting and planning processes. In addition, R&A will be enhancing the Group’s ERM framework to encompass risk assessment on a longer term horizon, coupling it with the monitoring of emerging risks to address the long-term impact of climate change. OUR METRICS AND TARGETS: TRACKING PROGRESS Enabling Our Customers Aligned with our purpose to harness technology and innovation to enable a more secure and sustainable world, we set a target at our 2021 Investor Day to increase our sustainability-linked revenue to more than $3b by 2026. This revenue target will drive our businesses to pursue products and solutions that would enable our customers’ sustainability journeys, including reducing the impact of their operations to climate change. Doing Our Part The Group has made steady strides in our decarbonisation journey. We have disclosed our GHG emissions since 2014. In 2019, we achieved the 36% intensity reduction target by 2030 set in 2018. We will continue to track overall emissions intensity as a measure of revenue for the Group to evaluate the efficiency of our business. In 2021, we committed to halve our carbon emissions by 50% by 2030, with 2010 as a baseline. This is aligned with the aspiration of our major shareholder for the decarbonisation pathway of their portfolio. In 2022, we reduced our absolute GHG emissions by 37% compared to our 2010 baseline. Key metrics on carbon emissions, energy usage, water usage and waste management are published in the Environmental Protection section of this Sustainability Report. Monitoring and reporting these metrics help us identify areas with highest climate-related risks and to track progress towards our goals. Aside from environmental related metrics and targets, other relevant climate-related metrics and targets such as supply chain, are elaborated under the respective material ESG factors in this Sustainability Report. OUR CONCLUSION Our current TCFD-aligned analysis is as follows: • The physical risk to our productive assets and our people is low. We have put in place a process to regularly review facilities against extreme climate and weather events • We expect minimal impact on our business in the transition to a low carbon economy. We will continue to monitor emerging topics including the evolving regulatory and carbon tax environment • The world’s focus on leveraging technology and innovation to address climate change presents opportunities for the Group. This is aligned with our target to increase our sustainabilitylinked revenue to more than $3b by 2026 We have updated our Group ERM framework to incorporate climate-related considerations. Additionally, we will be revising our ERM framework to encompass risk assessment on a longer term horizon and couple it with the monitoring of emerging risks. This will help the Group to address the long term impact of climate change. Our GTT will drive and coordinate efforts across our businesses to leverage the unique opportunities presented. OVERVIEW OUR SUSTAINABILITY APPROACH ECONOMIC ENVIRONMENTAL SOCIAL GOVERNANCE INDEX 23
RkJQdWJsaXNoZXIy NjMyNDM=