2035-2050. Refer to MM2 (Energy Transition and Innovation) on pages 68-71. Refer to MM2 (Energy Transition and Innovation) on pages 68-71. Refer to MM3 (Climate Change and Emission) on pages 72-76. SUSTAINABILITY STATEMENT Sec 3 111 OUR RESPONSE TO CLIMATE CHANGE Risk Exposure Physical Risk Description TNBJ SPG SJ Kenyir 100 substations Coastal inundation Rising sea levels and higher incidence of extreme sea events Extreme wind Changes in wind regimes, sea surface temperature and wind speeds Forest fire Increased incidence of fire weather due to confluence of days with higher temperatures, high wind speeds and drier conditions Riverine flooding Increased frequency and intensity of rainfall changing the frequency and intensity of river flooding Soil movement Changes in rainfall patterns and drought Surface water flooding Increased frequency of extreme rainfallleading to floods Heat (dryspells)Extremehightemperatures,morefrequenthotdaysandlonger-lastingheatwaves Risk exposure is low Legend: Risk exposure is moderate Risk exposure is significant Risk exposure is high Physical Risk We have assessed the physical climate risk exposure to our business operations linked to extreme weather patterns and increased global temperatures. These include event-driven acute risks and longer-term chronic shifts in climate patterns. The recent physical climate risk assessment is based on a climate scenario modelling (IPCC RCP 8.5/4°C) for the three (3) different types of power generators (coal, gas & hydro) and substations selected given their locations within Peninsular Malaysia. The scenario modelling analysed climate-related failure and damage risks at the grid point of the asset sites chosen to identify the spatial distribution of the seven (7) physical climate risks. The summary outcome of the study is as follows: Type No Transition Risk Short/Medium/ Long Term* Potential Impact Management Approach Resilience 5 Flexible and reliable Grid Opportunities for regulated assets due to the requirement for a flexible and reliable grid