to a low-carbon economy and achieving carbon neutrality by 2050, which is the nation’s aspiration. Type No Transition Risk Short/Medium/ Long Term* Potential Impact Management Approach Policy & Legal 1 Carbon Price Uncertainty about the government implementing carbon pricing as an instrument to capture the external cost of GHG emission Medium term Cost Implement a decarbonisation strategy as per the TNB Energy Transition Plan Active engagement with regulatory bodies and government agencies on carbon pricing regulations 2 Emissions Reporting Obligations Increased expectations from regulatory bodies to track and publicly report emissions Short term Cost Digitalise emission data and indicators Monitor and report emission metrics and performance for informed decisions Embark on greenhouse gas (GHG) scope 3 emissions measurement Active engagement with regulatory bodies to keep abreast of emission reportingrequirements 3 Litigation Exposure Fines or judgments driven by environmental and climate activism Short term Cost Implement environmental management strategy Active engagement with relevant stakeholders on TNB’s environmental and climate management Technology 4 Low Carbon Technology Uncertainty in the deployment of low-emission technology due to high investment and technology maturity Short term Capital Investment Implement a decarbonisation strategy, leveraging digitalisation and technology innovation per the TNB Energy Transition Plan 5 Talent Gaps Talent gaps that require upskilling and reskilling to navigate new and emerging technologies Short term Cost Implement a talent management programme customised to meet energy transition technology requirements Refer to MM3 (Climate Change and Emission) on pages 72-76. Refer to MM3 (Climate Change and Emission) on pages 72-76. Refer to MM6 (Environmental Management) on pages 82-86. OUR RESPONSE TO CLIMATE CHANGE Refer to MM11 (Employment Culture) on pages 102-106. Refer to MM2 (Energy Transition and Innovation) on pages 68-71. Scenario Description Expected global