Annual Report 2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) China Merchants China Direct Investments Limited Annual Report 2025 87 ENVIRONMENTAL PROTECTION (CONTINUED) Climate-related Disclosure (continued) Climate-related Strategy (continued) Climate-related risks and their potential financial impacts Type Category Time Horizon Description Potential Financial Impacts Physical Risk Acute Risk Rainfall Flood Short-, Medium- and Long-term (2026, 2030 and 2050) An event where intense, sustained rainfall overwhelms drainage systems, causing water accumulation and overflow in various areas. ‧ Higher flood risk may result in increased insurance costs, impacting financial planning ‧ Disruptions in commuting and transportation can lead to staff shortages or delays, adversely affecting profit- generating activities Chronic Risk Increase in Annual Average Temperature Medium- and Long-term (2030 and 2050) A gradual increase in the average annual temperature, typically linked to global warming and broader climate change trends. ‧ Potential increase in operational costs associated with cooling and climate control ‧ Rising average temperatures could result in more frequent extreme weather events, increasing the likelihood of business disruptions and associated financial losses ‧ Increased volatility in portfolio values may affect overall financial performance