Annual Report 2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) 88 China Merchants China Direct Investments Limited Annual Report 2025 ENVIRONMENTAL PROTECTION (CONTINUED) Climate-related Disclosure (continued) Climate-related Strategy (continued) Climate-related risks and their potential financial impacts (continued) Type Category Time Horizon Description Potential Financial Impacts Transition Risks Policy and Legal Risk Stringent Emission Disclosure Requirements Medium- and Long-term (2030 and 2050) Mandatory detailed reporting of greenhouse gas emissions requires companies to disclose their environmental impacts more transparently. ‧ Rising due diligence and reporting costs to meet stringent emission disclosure requirements may strain the Company’s financial resources ‧ Excluding or reducing investments in high- emission sectors to comply with disclosure standards may affect overall portfolio performance and revenue ‧ The growing demand for expertise in environmental accounting and emissions reporting may result in higher operational costs for recruiting and training skilled personnel Market Risk Market Reorientation Due to Climate Change Medium- and Long-term (2030 and 2050) Market dynamics and investment strategies are shifting due to climate change, including changes in regulatory environments. ‧ Investor preferences are increasingly shifting toward companies that demonstrate resilience to climate change, transforming investment landscapes ‧ Sectors adversely affected by climate impacts face risks of devaluation and waning investment interest, which could jeopardise their financial stability