112 Fostering Sustainable Ecosystems About the Report Leadership Messages About the Theme Corporate Overview Stakeholder Engagement and Materiality Assessment Our ESG priorities and Performance Economic value generation extend beyond the value generated for our business. We believe in creating economic value for our communities in which we operate. We do this through the means of our corporate responsibility initiatives which have social and economic benefits. Economic benefits created by Arise IIP for our communities are more enhanced due to infrastructure development. In CY 2023, we contributed nearly Euro 74,000 for community infrastructure development. These infrastructure investments included construction of community social amenities and infrastructure upgrade, such as constriction of road drainage in Gabon. More details on significant indirect economic impact of our operations can be read in the Communities chapter of this report. Financial Implications of Climate Change Climate change presents significant challenges and opportunities for our industrial development operations, including natural resource processing, logistics, and management. The impact of climate change is particularly pronounced for our operations, as we deal with raw materials such as timber and soybean. Climate-related risks can have profound financial implications, as the region is vulnerable to such risks and requires sustainable development practices. One of the major challenges we foresee is resource availability. Climate change can affect the availability and quality of resources critical for our operations. Changes in rainfall patterns can impact water availability for processing activities. Extreme weather events, such as droughts or floods, can disrupt the supply chain, leading to delays and increased costs in sourcing raw materials. Environmental sustainability and carbon emissions regulations are increasing, necessitating investments in new technologies or processes to comply. This issue takes more importance from the perspective of our supply chains. Supply chain management is one of our cores ESG pillars. We are cognizant of the impact of climate change on our supply chain that is heavily dependent on natural resources. If not managed properly, impact of climate change on our supply chains may hamper business continuity. Therefore, we have taken several initiatives to manage these risks in our supply chain (refer chapter on Supply Chain Management). We have developed robust business continuity plans to mitigate climate-related risks to ensure uninterrupted operations. We have also integrated ESG and climate-related risks into our enterprise risk management systems. Our ESG risk framework comprises policies that we have drafted and their current implementation status. We are in the process of developing a comprehensive ESG framework, including key risks, performance reporting, audits, etc., to identify climaterelated threats and opportunities crucial for informed decision-making. As our business continues to grow, we are identifying ESG goals to help mitigate and adapt to climate-related risks and opportunities. Our action agenda for risk mitigation has four guiding pillars: carbon neutrality, circular economy, diversity and inclusion, and sustainable value chain. We have implemented specific Environmental and Social Management Plans (ESMP) across all our operations, which are monitored regularly. We are
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