Vgi Public Company Limited · SET:VGI
Vgi Public — VGI — ESG Presentation (August 2023)
34 slides from Vgi Public's sustainability presentation, August 2023
Slide 1: Climate Risk Assessment Report 2022/2023
VGI PLC Climate Risk Assessment Report 2022/2023 1
Slide 2: Contents
CONTENTS Executive Summary 3 Introduction 5 01 Risk identification 7 02 Physical risk assessment 13 22 03 Transition risk assessment Summary 28 References 32 2 Climate Risk Assessment Report 2022/2023
Slide 3: Executive Summary
EXECUTIVE SUMMARY VGI focuses on managing risks and opportunities resulting from climate change, such as the dramatic changes in extreme weather conditions and natural disasters that may affect VGI’s business activities. This year VGI first Climate Risk Assessment report assessed how business risks
Slide 4: Executive Summary: Structure of This Report
EXECUTIVE SUMMARY Structure of This Report This report is structured in line with TCFD recommendations, in three sections. 1. “Risk & Opportunity Identification” section explains how climate-related risks and opportunities are related to VGI business and whether their impacts are material in the exi
Slide 5: Introduction
INTRODUCTION VGI was established in 1998 and started business as a media rental company focused on traditional Out-of-Home ("OOH") advertising. We committed to being Thailand’s most customer-oriented media company and today, we are an Offline-to-Online (“O2O”) Solutions provider with a comprehensive
Slide 6: Introduction
INTRODUCTION VGI also focuses on managing risks and opportunities resulting from climate change, such as the dramatic changes in extreme weather conditions and natural disasters that may affect VGI's business activities. Therefore, to address these climate change risks, VGI has implemented a corpora
Slide 7: Risk & Opportunities Identification
Risk & Opportunities Identification 7 Climate Risk Assessment Report 2022/2023
Slide 8: Physical Risk Identification (1/2)
PHYSICAL RISK IDENTIFICATION (1/2) Potential climatic impact drivers are screened base on the study in IPCC AR6 report • Climate risk identification is a common aspect of TCFD reports, although the categorization of these risks tends to be inconsistent. • VGI assets are out of home media advertiseme
Slide 9: Physical Risk Identification (2/2)
PHYSICAL RISK IDENTIFICATION (2/2) Physical risks applicability to VGI Medium- Risk Sub- Short-term Long-term Climate-related risks Climate-related risk description term type type (2023-2030) (2040-2050) (2030-2040) Increased severity of Increased frequency and severity of climate-driven events with
Slide 10: Transition Risk Identification (1/2)
TRANSITION RISK IDENTIFICATION (1/2) How to identify transition risk and opportunities according to TCFD recommendation Risk Driver Approach to identify potential transition risks Policy and legal Assess potential risks arising from changes in climate-related policies, regulations, and laws. Conside
Slide 11: Transition Risk Identification (2/2)
Yes, high relevance or contribute high financial impact to VGI TRANSITION RISK IDENTIFICATION (2/2) No, No impact/ low relevance or contribute low financial impact to VGI Transition risks applicability to VGI Risk type Sub-type Climate-related risks Climate-related risk description Short-term Medium
Slide 12: Opportunity Identification
OPPORTUNITY IDENTIFICATION Opportunities Opportunity Climate-related Climate-related opportunities description Short-term Medium-term Long-term type opportunities (2023-2030) (2030-2040) (2040-2050) Use of recycling Using recycled materials (e.g., recycle plastics instead of paper) to reduce the amo
Slide 13: Physical Risk Assessment
Physical Risk Assessment 13 Climate Risk Assessment Report 2022/2023
Slide 14: Increasing Temperature Causing Change in Physical Risks
Increasing Temperature Causing Change in Physical Risks Physical risk Assessment through Different Scenario & Timeframe RCP 2.6 RCP 8.5 Definitions A stringent mitigation scenario. One A very high GHG emissions. One high pathway where radiative forcing peaks pathway for which radiative forcing at ap
Slide 15: Scenario Analysis (Physical Risk)
SCENARIO ANALYSIS (PHYSICAL RISK)) Physical risk scenarios Description 2046-2065 temperature change • The mean radiative forcing at the earth's surface is 2.6 W/m2; RCP 2.6 0.4 to 1.6 °C • High effort on the implementation of decarbonization • The mean radiative forcing at the earth's surface is 8.5
Slide 16: Scenario Analysis (Physical Risk)
SCENARIO ANALYSIS (PHYSICAL RISK) River flood and tropical cyclone are physical risks for media, movie and entertainment sector in VGI business. Risk driver Description Tool/Data source We used the data from climate impact explorer developed by Climate analytic tool website. River flood Annual expec
Slide 17: Potential Impact from Tropical Cyclone over Thailand
Potential Impact from Tropical Cyclone over Thailand Normalized number of financial Annual Expected Damage from Financial impact from tropical cyclone in Thailand impact from tropical cyclone/windstorm (T-W) event x tropical cyclone in % by country under RCP xxx in xxx timeframe = under RCP xxx in x
Slide 18: Potential Impact from River Flood over Thailand (direct impact)
Potential Impact from River Flood over Thailand (direct impact) River Flood and Coastal flood Business and Financial Impacts Business impacts Financial impacts • Indirect impact from flood may affect the number of impression Direct Impact: Revenue generation per person who use BTS and see • Long flo
Slide 19: Potential Impact from River Flood over Thailand (indirect impact)
Potential Impact from River Flood over Thailand (indirect impact) River Flood and Coastal flood Business and Financial Impacts Business impacts Financial impacts • Indirect impact from flood may affect the number of impression Indirect Impact: Indirect Impact from flood can affect the worthiness of
Slide 20: Potential Impact from River Flood over Thailand (indirect impact)
Potential Impact from River Flood over Thailand (indirect impact) River Flood and Coastal flood Business and Financial Impacts Business impacts Financial impacts • Indirect impact from flood may affect the number of impression Direct Impact: Advertisements have very low likelihood to expose to the f
Slide 21: Potential Impact from Coastal Flood over Thailand
Potential Impact from Coastal Flood over Thailand Coastal Flood Sea level rise and Elevation data till 2050 Climate Central’s sea level rise and coastal flood maps are based on peer-reviewed science in leading journals. As these maps incorporate big datasets, which always include some error, these m
Slide 22: Transition Risk Assessment
Transition Risk Assessment 22 Climate Risk Assessment Report 2022/2023
Slide 23: The effects of maintaining global surface temperature at 1.5 C
The effects of maintaining global surface temperature at 1.5 C Transition risk Assessment through Different Scenario & Timeframe Net Zero Emissions by 2050 Stated Policies Scenario (NZE) Scenario (STEPS) Definitions A scenario which sets out a pathway A scenario which reflects current for the global
Slide 24: Scenario Analysis (Transition Risk)
SCENARIO ANALYSIS (TRANSITION RISK) Electricity price and I-REC price are transition risks for media, movie and entertainment sector in VGI business. Risk driver Description Tool/Data source Electricity price The electricity price change was estimated using data from ‘International Energy Agency (20
Slide 25: Scenario Analysis (Transition Risk): Electricity Price
SCENARIO ANALYSIS (TRANSITION RISK) Electricity price Scenario Analysis Output Component Name of Component Output Metric Output Value Net Zero Emissions by 2050 Relative change from 2022 Short-term (2023-2030): -0.69% Scenario (NZE) Medium-term (2030-2040): -1.65% Long-term (2040-2050): -2.62% State
Slide 26: Potential impact from changes in electricity price
Potential impact from changes in electricity price Potential Financial Impact from Electricity Prices in NZE and STEPS Financial impact from Electricity End-user electricity prices Electricity consumption in xxx Estimated electricity prices by country Prices by country timeframe x under NZE and STEP
Slide 27: Potential impact from purchased I-REC
Potential impact from purchased I-REC Potential Financial Impact from Electricity Prices in NZE and STEPS Electricity consumption in xxx Financial impact from purchased I-REC timeframe x I-REC price in xxx timeframe* = under NZE and STEPS in xxx timeframe Financial Impact Relevance Weighting Descrip
Slide 28: Summary
Summary 28 Climate Risk Assessment Report 2022/2023
Slide 29: Summary of Physical Risk Assessment
SUMMARY OF PHYSICAL RISK ASSESSMENT Physical risks applicability to VGI Risk type Sub-type Climate-related risks Climate-related risk description Changes from Baseline Increased severity of extreme RCP 2.6 Increased frequency and severity of climate-driven events with varying impacts based on 2023-2
Slide 30: Summary of Transition Risk Assessment
SUMMARY OF TRANSITION RISK ASSESSMENT Transition risks applicability to VGI Change from baseline Risk type Sub-type Climate-related risks Climate-related risk description (2022) Carbon pricing Low potential direct impact due to low carbon intensity by nature of business and No significant change mec
Slide 31: Summary of Climate Risk Assessment
SUMMARY OF CLIMATE RISK ASSESSMENT Physical Risk Transition Risk ► Risk identification ► Risk identification Level of Historical Climate Impact Driver Likelihood Risk Driver Likelihood Level of impact Impact Impact Tropical cyclone/ windstorm (T-W) Medium Medium Yes Policy/Regulation Low Low Inland
Slide 32: References
References 32 Climate Risk Assessment Report 2022/2023
Slide 33: References
REFERENCES Intergovernmental Panel on Climate Change (2023), IPCC AR6 Synthesis report Climate Change 2023 , Retrieved from AR6 Synthesis Report: Climate Change 2023 (ipcc.ch) UNEP FI (2023), Sectoral Risk Briefings: Insight for Financials Institutions, Climate Change Risks in the Agriculture Sector
Slide 34: VGI Public Company Limited
VGI PUBLIC COMPANY LIMITED 21 TST TOWER, 9TH FLOOR, VIPHAVADI-RANGRIT ROAD CHOMPHON, CHATUCHAK, BANGKOK 10900 THAILAND TEL: +66(0) 2273 8884 FAX: +66(0) 2273 8883 34