Sustainability > Environment > Climate Change > Climate Governance and Risk Management
Climate Governance and Risk Management
Strengthening Oversight, Navigating Climate Risks
Climate-Related Roles and Responsibilities
Our Climate Governance
WTK strengthened our sustainability governance structure by clearly defining climate-related roles and responsibilities across all organisational levels.
These enhancements ensure that climate considerations are integrated into decision-making processes and support the Group’s transition towards a low-carbon future.
Board of Directors and Board Risk Management Committee
- The Board of Directors, along with the Board Risk Management Committee, provides strategic oversight of climate-related matters.
- Climate oversight has been formally embedded into their mandate, reinforcing their role in guiding the Group’s climate priorities, including risk identification, opportunity assessment and long-term resilience planning.
- Lai Soon Ong (Executive Director), a member of the Board of Directors, has explicit responsibility for overseeing the Group’s climate-related risks and opportunities, including climate strategy, risk management, targets and greenhouse gas performance, and reports material climate matters to the Board.
Management
- The Head of the Sustainability Department is responsible for quarterly reporting on updates, progress, and critical concerns— including climate-related matters— to the Board of Directors.
- Management ensures that climate-related risks and opportunities are continuously monitored and integrated into the Group’s business strategy and operational plans.
Sustainability Working Committee
- At the operational level, the Sustainability Working Committee members are responsible for driving the implementation of climate-related initiatives.
- This includes managing GHG reduction strategies, tracking emissions performance and identifying opportunities across the Group’s business segments.
Sustainability Coordinators
- Support the implementation of climate-related initiatives and action plans within their respective business segments, while promoting compliance with the Group's climate objectives and requirements.
- Coordinate the collection, validation, and timely submission of climate-related data and information to support monitoring, reporting, and regulatory disclosures.
Internal Audit
- The Internal Auditor plays a key role in evaluating the effectiveness of sustainability-related initiatives and verifying the integrity and accuracy of climate-related disclosures to uphold transparency and accountability.
Our Climate Risk Management
In FY2024, the Group initiated an assessment of climate-related risks and opportunities, considering short-term (0–5 years), medium-term (6–10 years) and long-term time horizons (more than 10 years), with reference to the IFRS S2 Climate-Related Disclosures Standards. These insights will guide the formulation of future strategies.
Strategic Foresight for a
Changing Climate
Transition Risk
Physical Risk
Climate-Related Opportunities
Transition Risk
| Type | Climate-Related Risks | Potential Financial Impacts | Time Horizon |
|---|---|---|---|
| Policy and Legal | Increased pricing to GHG emissions | Higher costs due to carbon pricing mechanisms aimed at encouraging renewable energy adoption | Short-term to medium-term |
| Enhanced emissions-reporting obligations | Write-offs, asset impairment and early retirement of existing assets due to policy changes | ||
| Mandates on and regulation of existing products and services | Increased costs and/or reduced demand for products and services resulting from fines and judgments | ||
| Technology | Cost to transition to lower emission technology | Increased capital investment in technology development and costs to adopt new practices and processes | Short-term to medium-term |
| Substitution of existing products and services with lower emissions options | Write-offs and early retirement of existing assets | ||
| Market | Increased cost of raw materials | Greater price volatility and restrictions on sourcing carbon-intensive raw materials | Short-term to medium-term |
| Reputation | Increased stakeholder concern or negative stakeholder feedback | Reduced revenue from decreased production capacity such as delayed planning approvals and supply chain interruptions | Short-term to medium-term |
Physical Risk
| Type | Climate-Related Risks | Potential Financial Impacts | Time Horizon |
|---|---|---|---|
| Acute | Increased severity of extreme weather events such as droughts, heatwaves, storms and floods | Write-offs and early retirement of existing assets due to damage to property and assets in high-risk locations. | Short-term to long-term |
| Reduced revenue from production capacity caused by decreased crop yields, transport difficulties and supply chain interruptions. | |||
| Reduced revenue resulting from lower sales and output. | |||
| Chronic | Changes in precipitation patterns, rising mean temperatures and rising sea levels | Increased insurance premiums and the potential for reduced availability of insurance on assets in "high-risk" locations. | Long-term |
| Increased capital costs due to damage to facilities and assets. |
Climate-Related Opportunities
| Type | Climate-Related Opportunities | Potential Financial Impacts | Time Horizon |
|---|---|---|---|
| Resource efficiency | Use of more efficient production and distribution processes | Increased production capacity, resulting in increased revenues. | Medium-term to long-term |
| Reduced resource usage and consumption | Reduced operating costs through efficiency gains and cost reductions in fuel purchasing, as well as water and energy savings. | Short-term to long-term | |
| Energy Source | Use of lower-emission sources of energy | Reduced exposure to future fossil fuel price increases. | Medium-term to long-term |
| Reduced exposure to GHG emissions and therefore less sensitivity to changes in cost of carbon | Short-term to long-term | ||
| Increased capital availability as more investors favours lower-emissions producers and reputational benefits resulting in increased demand for low-carbon products. | Medium-term to long-term | ||
| Products and Services | Development and/or expansion of low emission goods and services | Increased revenue through demand for lower emissions products and services. | Short-term to long-term |
| Shift in consumer preferences | Better competitive position to reflect shifting consumer preferences, resulting in increased revenues. | Short-term to long-term | |
| Resilience | Adoption of energy-efficiency measures | Increased market valuation through resilience planning | Medium-term to long-term |
Our Next Steps
As we progress on our journey toward IFRS S2 disclosure, the Group anticipate a growing understanding of how climate change may impact our operations and stakeholders. Similarly, we aim to enhance the organisation's skills and capabilities to assess climate-related risks and opportunities, including the future integration of scenario analysis. To ensure alignment with our climate targets, performance goals, decarbonisation strategies and risk management efforts, the Group will periodically review and update our approach to climate-related risks, opportunities and mitigation and adaptation measures.
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