Strategy for Climate Change

Asia Cement's climate change strategy covers five dimensions: products, supply chains, climate adaptation and mitigation, low-carbon investment and operational activities.

Climate Change Governance

Asia Cement has established a Corporate Sustainability Implementation Committee, directly overseen by the President, who also serves as a director. All production and business units are required to assess climate-related risks and opportunities, particularly the long-term impacts of climate change on business operations, including plant assets, production processes, raw material transportation, regulatory requirements and changes in consumer preferences.

The Corporate Sustainability Committee incorporates climate-related issues into its review and guidance of strategies, key action plans, risk management policies, annual budgets and business plans, as well as the establishment of operating objectives, monitoring of implementation and execution, and oversight of significant capital expenditures. Progress toward Asia Cement's net-zero emissions target is reviewed at Board meetings every six months.

Climate Change Incentives

Asia Cement has established climate-related incentive mechanisms and KPIs to support the achievement of its SBT carbon reduction targets.

Climate Change Risk Management

Asia Cement's climate change risk management process comprises three steps: identifying and assessing existing risks and opportunities; defining material risks and opportunities and analysing their financial impacts; and developing response measures and estimating costs.

Climate-related Financial Impact Planning

Potential financial impacts of Asia Cement's climate change strategy include increases in operating expenses, capital expenditures for low-carbon technologies and raw material costs. In accordance with Asia Cement's Risk Management Policies and Procedures, the impacts of major risks are identified and quantified.

Financial risk impacts are classified into five levels: very low, low, medium, high and very high. High and very high impacts are considered material to Asia Cement. A high impact represents 4% to 5% of EBITDA, while a very high impact represents more than 5% of EBITDA.

Material Risks, Opportunities and Financial Impact Analysis