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ENRICHING PERFORMANCE AND COMMITMENTS ENRICHING ACCOUNTABILITY AND INTEGRITY ENRICHING RESILIENCE AND SUSTAINABLE GROWTH OTHER INFORMATION

R5 Sustainability Risk

Sustainability risk is potential threats or Our response:
adverse impacts that environmental, social or • Establish the Sustainability Risk Framework and
governance (ESg) factors pose to the long-term Sustainability Risk Policy, as the governing documents
sustainability and resilience of an organisation’s that serve as guardrails for the KWAP Sustainability
operations, financial performance and Roadmap.
reputation. The impacts to sustainability risk are • Define measurable Key Performance Indicators (KPI) to
significant to KWAP as the risk could impact the track the performance and sustainability goals of KWAP.
investment returns, causing stranded assets • Publish sustainability reports with the progress towards
and operational disruptions as well as increase the set sustainability targets.
regulatory and legal risks. By addressing • Develop sustainability strategies to achieve sustainability
sustainability risk, KWAP can protect its objectives and targets.
investments, comply with evolving regulations
and contribute to a more sustainable economy.

Risk Category: Emerging Risk

R6 Climate Risk

Climate risk is potential adverse impacts that Our response:
climate change and related environmental • Embed ESG principles into our investment philosophy
factors pose to businesses, economies, and and proactively monitor the impact of climate risk to our
communities. These risks arise from the physical existing portfolio.
impacts of climate change, such as extreme • Embark on a decarbonisation journey for our investment
weather events, rising temperatures, sea-level portfolio as well as the enterprise.
rise and changing precipitation patterns, as well • Allocate an increasing portion for impact investment and
as transition risks associated with the shift to a investment in transition assets.
low-carbon economy and the implementation
of climate policies and regulations. Short-term
impacts to KWAP include operational disruptions
and market volatility whilst long-term impacts to
KWAP include strategic shifts in business models
and asset devaluations for not addressing the
climate risk.

Risk Category: Emerging Risk

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