Short-term opportunities (0-3 years) • Improve climate risk analysis and integrate results into strategic planning. • Implement low-carbon transition plan for facilities and key suppliers. Medium-term risks (3-7 years) • Extreme weather events may increase in severity and frequency and disrupt operations, which could adversely a昀昀ect our revenue, competitive position, and reputation. • Chronic climate change impacts such as rising mean temperatures, rising sea levels, droughts, new diseases, population migration, and water stress may have the potential to disrupt our business operations in certain geographies. • Increased insurance premiums for operations in geographies vulnerable to climate risk may adversely a昀昀ect cost or force investment in climate mitigation projects to ensure business continuity. • Inability to reduce quantity of virgin material inputs or integrate circular principles into product design, manufacturing, and business processes could adversely a昀昀ect cost, reputation, competitiveness, and social license to operate in certain geographies. Medium-term opportunities (3-7 years) • Leverage climate scenario planning to inform strategic decision making, such as determining signi昀椀cant locations of operation. • Enhance resilience through product lifecycle and business process innovations. Long-term risks (7-25 years) • Extreme weather events may further increase in severity and frequency, having the potential to disrupt our business. • Chronic climate change impacts may become more pronounced, having the potential to negatively impact our business operations in certain geographies. Long-term opportunities (7-25 years) • Continued integration of climate-risk scenario analyses into strategic planning across all aspects of the business. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT 2023 91