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47 About Strategy and Governance Our People Our Business Our Outcome AppendixTCFD ReportOur Impacts Climate change is a critical topic for DKSH. We are aware that action to fight climate change and the transition to a lowcarbon economy will present considerable opportunities and risks. Understanding and assessing these implications is crucial, especially considering their growing importance to investors and businesses. Our approach is aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) . This chapter of our Sustainability Report is drawn up in accordance with the recommended TCFD disclosures. It details how we are responding to climate change through our risk management system and strategy.Climate GovernanceWe have assigned climate-related responsibilities to various positions and committees throughout our organization %u2013 mainly our Board of Directors, the Executive Committee, including the Chief Executive Officer (CEO), and the Sustainability Committee.Our sustainability governance structure specifies how we manage our climate-related responsibilities. To learn more about our sustainability governance structure, please turn to the Sustainability Governance chapter. More information about our climate governance approach is contained in our CDP Questionnaire 2023 (section C1), which can be found on the CDP website. Strategy and Assessment of Climate-Related Risks and Opportunities DKSH recognizes that climate-related risks and opportunities have the potential to affect our business and supply chain reliability. We fulfil our due diligence obligations to identify and assess climate-related risks. This process is aligned with our broader risk management system set out in the Risk Management Policy, which defines general principles and procedures for identifying, assessing, and prioritizing any type of risk for risk treatment. As part of this process, climate-related risks are reported to the Board of Directors within the parameters of the annual risk report. The Board of Directors has also approved this year%u2019s climate-related disclosures prepared in accordance with TCFD, implementing the requirements set out in the Swiss regulation one year early. Further information on our risk management can be found in the Risk Management chapter and in our CDP Questionnaire 2023 (sections C2, C3.3, and C3.4), which is available on the CDP website.In 2023, we again assessed transition and physical risks in line with TCFD requirements, which go beyond the broader DKSH risk management system described above, including taking a longer-term perspective. By drawing on different climate scenarios, we were able to identify climate-related issues, assess possible risks and opportunities, and adapt to developments at an early stage.