Annual Report 2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) China Merchants China Direct Investments Limited Annual Report 2025 89 ENVIRONMENTAL PROTECTION (CONTINUED) Climate-related Disclosure (continued) Climate-related Strategy (continued) Climate-related opportunities and their potential financial impacts Type Time Horizon Description Potential Financial Impacts Improved Reputation Driven by Low-Carbon Transition Medium- and Long-term (2030 and 2050) Escalating climate risks intensify stakeholder scrutiny. By advancing a low-carbon transition, through emission reduction, green logistics, and circular initiatives, the Company can strengthen trust, enhance brand credibility, and secure reputational advantages, reinforcing long-term competitiveness and resilience in evolving market landscapes. ‧ Enhanced corporate reputation strengthens stakeholder trust, improving market positioning ‧ Long-term cost efficiencies from sustainability-linked operational improvements Enhanced ESG disclosures Medium- and Long-term (2030 and 2050) The Company can capitalise on the growing emphasis on ESG by strengthening disclosures and embedding sustainable practices, thereby attracting environmentally conscious investors while creating new revenue streams through green finance products and partnerships. ‧ Lower cost of capital and enhanced access to green financing ‧ Expanded revenue opportunities through participation in sustainable finance To mitigate the climate-related risks, we believe it is essential to consider climate-related issues across both our operations and investment activities. Adopting green office practices, such as enhancing energy efficiency, helps to reduce our environmental impact. We also take climate-related issues and trends into account when making key business and investment decisions, after assessing the associated costs and benefits. For example, we evaluate climate-related risks before adding new investments to the Company’s portfolio. Our climate change policy also provides guidance on identifying, mitigating and adapting climate-related risks, helping us strengthen our resilience to potential climate events. All climate initiatives are embedded into our daily operations and funded through proprietary fund. Although we currently do not have a climate-related transition plan, we will explore the feasibility of establishing one in the future.