Page 51 - Demo

51 About Strategy and Governance Our People Our Business Our Outcome AppendixCurrent (2023) Medium-term (2050) Long-term (2100)Heat Stress Index (four-degree global warming scenario, IPCC SSP5 %u2013 8.5)Global warming is increasing the hazard of heat stress, which affects humans, infrastructure, and ecosystems. Temperatures are rising, and the intensity and frequency of heat waves are increasing.In a long-term scenario, 52 % of the assessed own sites are at risk of an extreme hazard level associated with heat stress.52 %Current (2023) Medium-term (2050) Long-term (2100)Precipitation Stress Index (four-degree global warming scenario, IPCC SSP5 %u2013 8.5)Climate change can affect precipitation intensity and frequency. The Precipitation Stress Index is rooted in parameters related to heavy precipitation, such as occurrence frequency, duration, and intensity.Currently, 58 % of the assessed own sites have a large, very large or extreme hazard of heavy precipitation. In the long term, this level increases to 94 %.58% 94%very lowlowmediumlargevery largeextremeno hazardHazard assessmentAfter finalizing the initial hazard assessment, we held a workshop in 2022 to discuss the results of the scenario analyses and prioritize climate-related risks, impacts, and opportunities. At this event, we analyzed and weighted scenarios and considered the physical impacts and consequences for our business activities and upstream and downstream operations. Altogether, we identified five opportunities, five physical risks, and six transition risks and related impacts which may impact our business operations and financial planning (please see table below for details).In 2023, we assessed and prioritized the opportunities, physical risks, and transition risks identified in 2022 based on their financial materiality for DKSH.