Page 52 - flipbook-ubp-IR

INTRODUCTION ABOUT US
RISK REPORT
Climatic risks
On September 2021, Mauritius was declared as being in a ‘state of climate emergency’. Global warming and rising sea levels represent an existential challenge for Mauritius that could lead to consequential damage and massive displacement of people. While it is true that Mauritius is an extremely low emitter [only 0.01% of greenhouse gases], it remains one of the most vulnerable countries, according to recent World Risk Reports.
The production of construction materials is known for having a high CO2 intensity. In order to limit emissions, the Group is subject to a number of growing regulatory regimes that could affect its operations. As part of its COP26 pledge, Mauritius has undertaken to reduce gas emissions by 40%, to achieve 60% green energy in the energy mix, to phase out coal in electricity generation, to promote a circular economy involving 70% of waste from landfills, to encourage the use of electric vehicles and to promote smart agriculture and island-wide tree-planting programmes, all by 2030. The recent budget has also laid the foundation for measures that would boost green power as a means of mitigating the risk of climate action failure and accelerating the green agenda. This includes a Green Transformation Package and a renewable energy transition framework.
All potential effects of climate-related hazards, including transition risks and physical risks, are systematically evaluated.
Policy
Market
Technology
Reputation
Physical
• High CO2 costs could also promote the use of alternative construction materials that are less expensive and have a smaller environmental impact.
• Lack of integrated deployment of carbon capture throughout the supply chain ecosystems (transportation, sequestration, etc.).
• Losing the interest
of stakeholders like consumers, investors and future workers
if perceived as a significant carbon emitter.
• Expected increasing number of climate policy legal frameworks, which will potentially increase the cost
of releasing CO2
and associated fuel prices [carbon taxes].
• Stricter regulations pertaining to the items put on the market.
The table below lists the climatic impacts that are most likely to affect our business operations.
•
Climate change physical effects including flooding, altered precipitation patterns and extreme weather variability have the potential
to interfere with our business operations, causing increased transportation
and logistics costs, decreased production capacity and even reputational harm.
Geophysical, meteorological, hydrological, and climatological events
Implications
• Warmer temperatures.
• Increase in frequency and intensity of heavy rainfall episodes. • Increase in intensity and length of droughts.
• Decrease in annual rainfall.
• Rising sea levels.
• Increase in frequency and intensity of tropical cyclones.
• Health and Safety risks.
• Failure to meet customer demand due to disruption in
production output and delays in delivery.
• Temporary interruption of operations and production
processes.
• Rising insurance costs.
• Changes in resource/input price (water, energy). • Damage to infrastructure.
• Changes in consumer consumption patterns.
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UBP INTEGRATED REPORT 2022
MANAGEMENT APPROACH