ESG Report 2025

34 By researching climate change trends, domestic and international industry developments, technological advancements, etc., conducting peer benchmarking, and collecting stakeholder feedback, combined with the Group's own operational circumstances and business characteristics, we perform climate-related scenario analysis and establish a list of climate- related risks and opportunities. We identify and describe the physical and transition risks that affect the Group's operations, as well as the corresponding potential opportunities. Risk and Opportunity Assessment Using a combination of quantitative and qualitative methods, we comprehensively analyse the expected impact of climate-related risks and opportunities on the Group's business model, value chain, and financial aspects. We assess the likelihood and magnitude of impact of each risk and opportunity, forming a complete evaluation of climate-related risks and opportunities. Risk and Opportunity Prioritisation Based on the above assessment results, we rank the identified climate-related risks and opportunities using a scoring matrix to determine their priority. We focus on those climate- related risks and opportunities with high likelihood and high impact. Risk and Opportunity Response Based on the identification and assessment results, we develop and implement corresponding risk mitigation and opportunity capture plans. For different types of risks, we adopt a combination of “adaptation” and “mitigation” measures. All response plans for material climate- related issues are reviewed and approved by management, with responsible departments overseeing their implementation. We regularly monitor the progress and actual effectiveness of these measures and report to the Board of Directors and the Sustainability Committee, ensuring closed-loop management and continuous improvement. Risk and Opportunity Identification The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report