Sustainability Committee

Board

Non-Executive Director

(ESG Sponsor)

Sustainability Champions Network

Inizio Medical

Sustainability

Forum

Inizio

Evoke

Sustainability

Forum

Inizio Engage

Sustainability

Forum

Inizio

Advisory

Sustainability

Forum

TCFD report continued

A further layout on specific roles and

reporting lines among our Board

and senior levels of management

isprovided below:

Risk Management

At Inizio, we are working on integrating

climate-related risks and opportunities

into Inizio’s company-wide risk and

opportunity identification and

management processes, and we

expect this to be concluded within

the next reporting year. Through

this, sustainability matters, including

those relating to climate change, are

treated the same as other enterprise

risks andopportunities.

Our processes for identifying and

assessing climate-related risks

andopportunities

Any climate-related risks faced by

our business units are identified,

assessed, and responded to, based on

their risk materiality each year. The

process is two-fold, where one major

arm of risk identification involves

each of our business unit’s agencies

and divisional leaders completing

anenterprise risk assessment on

arolling basis. Therisks identified

arereviewed byfunctional leaders,

subject matterexperts, and the

Group RiskandCompliance team,

which consolidates the risks that

feed intothe Group risk profile.

To complement this, we undertook

aclimate-related scenario analysis

toinform our climate risk and

opportunity identification and

assessment. Climate-related risks

such as extreme weather events

(likeflooding, wildfires, and extreme

heat), transition risks/opportunities

(like technology, market, legal, and

reputational risks and opportunities)

are considered across our direct

operations and supply chain.

For each of the risks identified,

weassess both the likelihood of a

risk materializing, and the impact

associated with the risk. Each of

ourfive impact tiers is defined

byfinancial, operational, regulatory,

employee, and reputational

impactranges.

Climate-related risks which are

ratedhighly are consolidated and

fedinto the Group risk register and

are considered by Inizio’s Board and

Audit Committee for oversight and

further guidance, which will be

outlined in the following sub-section.

For climate-related opportunities,

Inizio is currently in the process of

developing an Opportunity Level Risk

Assessment process which will, in due

course, enable Inizio to capture and

assess potential client opportunities

including those relating to climate.

Our evolving processes for

managing climate-related

risksandopportunities

To monitor and control climate-

related risks on an ongoing basis,

risk owners are identified to hold

this responsibility. If the likelihood

and impact ratings combine to

result in a risk rating that is deemed

Moderate, High, or Critical, then risk

owners are expected to take charge

of providing control effectiveness

ratings and information on how

theclimate-related risk is going

tobe monitored or mitigated,

withmitigation plans being revised

everysix months by the risk owners.

An example of the management of a

risk we have identified is the market

risk of changing consumer behaviors

towards low-carbon products and

services. With a high magnitude of

financial impact upon assessment, we

have used levers such as switching to

renewable energy and transitioning

our fleet to low-carbon vehicles as a

means to decarbonize our operations.

A second risk is emerging climate-

related regulations that we as a

business need to be aligned to.

During the reporting period, we

worked with third-party consultants

and internal stakeholders to improve

our climate-related processes and

disclosures in order to work towards

alignment, on a voluntary basis, with

the ISSB’s IFRS S2 Standard. We have

also started to prepare for reporting

against other emerging ESG standards

and regulations (e.g., CSRD).

We integrate our processes

foridentifying, assessing, and

managing climate-related risks and

opportunities into our enterprise

risk management process

We consider climate-related risks

andopportunities to be crucial

ininforming and driving business

continuity to deliver our services to

clients. Therefore, we ensure that any

climate-related risks we may face are

identified, assessed, and responded

to as part of our main Enterprise Risk

Management (ERM) process. Within

our ERM process, identified climate-

related risks are assessed and mapped

for likelihood and impact together

with all other business risks. We are

consistent in treating climate-related

risks at business unit or Group level

the same as all other risks identified

within the Group.

High-impact risks, including any

identified climate-related risks, are

heldin the form of a Principal Risk

Dashboard, which is then presented to

the Board’s Audit Committee to review

and monitor mitigation measures.

Strategy

As detailed in the Risk Management

section, we are working on integrating

climate-related risks and opportunities

intoInizio’s company-wide risk

Our Governance

Inizio Sustainability Report 202341

Head of ESG