CLIMATE RISK

Whilst we continue to implement reduction strategies to lower business emissions and our impact on climate change, we recognise the continually increasing need to focus on adaptation, while simultaneously preparing for the significant emergent climate-related regulatory and economic changes on the horizon. As such, climate risk continues to be an important focus area and is an integral part of our risk management process.

Responsibility for the oversight and management of climate-related risks and impacts spans the entire business, from the Board of Directors, the Chairman and CEO, through to the ESG team and wider leadership and management personnel. Any climaterelated risks are presented and discussed through Sonnedix’s wider Enterprise Risk Management process, via the Audit and Risk Committee.

Throughout 2022, we worked to further increase our understanding and awareness of how climate-related issues can affect the many assets and offices we have across the globe. As such, a standalone climate risk assessment and impact survey was conducted and the results fed into the corporate risk register, as further detailed in the case study.

In order to obtain a more detailed understanding of our portfolio’s risk from climate change, we commenced work on a Climate Scenario Risk Analysis at the end of 2022, which will be completed in 2023. This exercise aims to identify climate-related physical risks and opportunities for Sonnedix and assess the impact of these risks against selected climate scenarios and across current and future time horizons, in alignment with TCFD. This will allow us to have more informed discussions around climate risk, and identify appropriate control and any mitigation actions.