Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview Our approach ESG risk management TCTCFFDD Describe the impact of climate- represent comprehensive climate related risks and opportunities on the scenarios related to three projected organisation’s businesses, strategy, global average temperature increases: 1.5°C, 2°C and 3°C. and 昀椀nancial planning. • We conducted an analysis of physical • For Swire Paci昀椀c, MAAL is calculated risks for over 800 of our highest value using the insured value of each asset. It is the sum of climate-related expenses (by insured value) immovable assets and projected Modelled Average Annual (cost to repair or upgrade facilities), decreased revenue from business Loss (MAAL) of the di昀昀erent physical climate risks associated with the four interruption, and is represented as the Representative Concentration Pathways percentage (or amount) of loss relative to total asset value, as shown in the (RCP 2.6, 4.5, 6 and 8.5) used by the Intergovernmental Panel on Climate table below. Change (IPCC). These pathways broadly Key climate-related physical risks Short- medium Short- term (2030) medium Long- Risk Financial MAAL (US$ term (2030) term (2050) category Risk implications million) MAAL (%) MAAL (%) Mitigation strategies Acute • Coastal 昀氀ooding • More spending 362.5 – 369.8 1.09 – 1.11 1.82 – 2.30 • We have identi昀椀ed to improve short and medium- • Fluvial 昀氀ooding the adaptive 25.7 – 38.0 0.08 – 0.11 0.11 – 0.19 term mitigation capacity of measures for • Drought our assets and 757.2 – 798.1 2.27 – 2.39 2.60 – 3.23 individual buildings, to mitigate including: • Wild昀椀re 66.9 – 71.4 0.2 – 0.21 0.34 – 0.42 – Upgrading 昀氀ood adverse e昀昀ects protection • Tropical -0.1 – 0.5 -0.0029 – -0.0007 – measures and alert cyclones -0.001 -0.001 systems – Glass façade inspections – Smart Monitoring Systems Chronic • Extreme • Lower -597.7 – -1.79 – -1.60 -2.31 – -2.24 • Chiller e昀케ciency temperatures productivity due -534.8 improvements and heat stress to extreme heat • Energy E昀케ciency • More spending Policy on cooling • Health & Safety Policy • Water stress • Decreased 6.5 – 15.2 0.02 – 0.05 0.02 – 0.04 • Conduct water production risk assessments volume due to (Source Vulnerability reduced water Assessments (SVAs)) supply for all bottling plants • More spending • Prepare and to improve implement Water Management Plans water e昀케ciency of our assets for all sites SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 17