65 Introduction At Sai Life Sciences, we recognize that assessing and addressing climate-related risks is integral to building a sustainable and resilient business model. Our commitment to integrating continuous climate risk management into our enterprise risk management framework underscores the importance we place on sustainability. Climate-related risks present unique challenges due to their nonlinearity, geographic variability, and potential financial impacts. By identifying, addressing, and mitigating these risks, we aim to not only safeguard our operations but also seize opportunities that ensure sustainable growth, and foster the development of innovative climate resilience strategies. To achieve this, we have embedded Climate-Related Risks and Opportunities (CRROs) into our Enterprise Risk Management (ERM) process. This integration ensures a comprehensive approach to risk assessment and management, overseen by our Risk Management Committee. The committee is dedicated to identifying financial, operational, sectoral, and sustainability risks, particularly those related to ESG, information security, and cyber security. It also focuses on developing effective mitigation strategies to address these risks. Our governance structure provides strong oversight of sustainability-related risks and opportunities. The Chief Executive Officer holds primary responsibility for mitigating environmental risks. The board has delegated function-specific roles to various cross-functional teams through their KRAs. The KRAs include developing strategies to mitigate environmental risks, identify opportunities, and monitor key performance indicators to align with relevant SDG’s and ESG reporting frameworks. Physical Risk and Transition Risk Overview In 2024, Sai Life Sciences conducted an annual climate scenario analysis to evaluate Climate-Related Risks and Opportunities (CRROs). We adopted the IFRS S2 framework to guide our identification and disclosure of CRROs. This framework, aligned with the Task Force for Climate-related Financial Disclosures (TCFD) standards, has been instrumental in assessing the potential impact of climate-related risks on our business and value chain. The risks identified are categorized into physical risks— such as extreme weather events— and transition risks associated with the global shift toward a low- carbon economy. For 2024, we selected our CRROs, comprising four physical risks, two transition risks, and some Physical climate risks are either acute or chronic. Acute risks include droughts, floods, extreme precipitation, and wildfires. Chronic risks include rising temperatures, sea level rise, and accelerating biodiversity losses. The physical impacts of climate change are increasingly obvious and expensive. After assessing 20+ physical risks for each of our locations, we identified 4 physical risks that could potentially have a financial impact on our operations - Water stress, Extreme heat, Riverine flood and Tropical Cyclone. Physical Risks Climate Risk and Opportunity Assessment potential transition opportunities, from a comprehensive list of environmental and biodiversity risks and opportunities. This selection was based on an extensive analysis of over 20 risks and opportunities, informed by industry-specific literature and research. The findings were thoroughly discussed in workshops with relevant internal stakeholders to ensure they are highly relevant to our sites and day-to-day operations. Our 2024 Climate Risk Assessment draws on best-practice guidance and utilizes a range of climate scenarios. For Physical risk analysis we have considered the IPCC’s Shared Socioeconomic Pathways (SSPs) and Representative Concentration Pathways (RCPs). These scenarios provide a spectrum of potential futures, ranging from optimistic to pessimistic, regarding greenhouse gas emissions and their impacts on the climate (more details below). For the Transition risk assessment, we employed scenarios from the Network for Greening the Financial System (NGFS). These scenarios are developed using the Global Change Assessment Model (GCAM), a well-established integrated assessment model (IAM), providing us with a robust foundation for evaluating the financial and operational impacts of the transition to a low-carbon economy (more details below) Transitioning to a lower-carbon economy may require extensive policy, legal, technology, and market changes to address, mitigate and adaptation related to climate change. Depending on these changes, transition risks may pose varying levels of financial reputational risk to organizations. A variety of transition risk factors were reviewed for this study. Based on our in-depth research and analysis, we determined that the primary risks affecting the company’s financial position are carbon pricing and technology investments in the energy transition. Transition Risks
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