Annual Report 2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) 86 China Merchants China Direct Investments Limited Annual Report 2025 ENVIRONMENTAL PROTECTION (CONTINUED) Climate-related Disclosure (continued) Climate-related Strategy (continued) During the Reporting Period, we have carried out a climate-related risks and opportunities assessment to identify factors that may reasonably influence our financial performance, financial position, cash flows, operations, strategies, and long-term resilience. In performing this assessment, we took into account our operational profile and geographical footprint, and referenced relevant industry research and regulatory guidance to determine the climate- related risks and opportunities most pertinent to our sector. However, certain aspects of climate-related information, particularly those associated with value chain activities and forward-looking assumptions, remain subject to estimation uncertainties. These include those arising from the frequency and severity of climate-related events, measurement methodologies, and other evolving standards. Accordingly, we applied reliefs and employed a qualitative assessment approach during the Reporting Period, considering the limited availability and reliability of climate-related data and analytical methodologies. The assessment primarily focused on identifying the key physical and transition risks and opportunities that are material to our business operations, rather than undertaking a quantitative financial impact analysis or scenario analysis at this stage. To align with Hong Kong’s Climate Action Plan 2050, which targets carbon neutrality by 2050, we categorise our assessment of climate-related risks and opportunities into three time horizons: (i) 2026 as short-term, reflecting immediate actions and regulatory responses; (ii) 2030 as medium-term, capturing progressive policy adjustments and technological advancements; and (iii) 2050 as long-term, ensuring strategic alignment with Hong Kong’s overarching environmental goals. The assessment results 1 are presented in the climate-related risks and opportunities tables below, which summarise of the key risks and opportunities identified, together with their nature, anticipated time horizons, and their potential implications for our operations and overall financial performance. 1 We identify Hong Kong as the key jurisdiction where climate-related impacts are most material to our operations.