Climate change and the Group’s long-term business prospects /
Analysis of climate risks in the Budimex Group

In 2021. the Budimex Group conducted an identification and analysis of climate change risks. As part of the process. opportunities and threats arising from these phenomena were assessed. The study was performed in accordance with the AXIS© methodology by an external advisory company. The objective of the study was to identify short-. medium- and long-term physical and transformational risks related to climate changes and sustainable development issues. Their categorisation was done in accordance with the TCFD (Task Force on Climate- Related Disclosure) guidelines and based on the definitions included in ISO 3100.

The study was carried out in three stages::

The study took into account 30 risks divided into 8 groups. 26 potential opportunities and 37 potential threats were identified. Following the AXIS© methodology. risks were assessed in three dimensions: probability of occurrence. magnitude of impact and time horizon. Probability means that a given threat/opportunity may occur with a specific impact. The impact represents the significance of the effects of a given threat/opportunity if it occurs. The time horizon is predetermined by the validity date of the significance assessment. For the purposes of the study. a point scale with five time horizons (2021–2022. 2023–2025. 2025–2030. 2030–2040. 2040–2050) was adopted.

The ranges within each time horizon of risks and opportunities were defined as follows::

On the basis of the assessment assigned to the opportunities and threats. a qualification into individual groups was made. Threats and opportunities considered as significant are in Group S (Seizure). Opportunities and threats assigned to Group I (Intensification) and Group A (Application) were selected for monitoring – and only in selected cases for management. Opportunities and threats have been classified to Group X (eXclusion) which should be monitored in specific situations.

The following table presents the risks classified as significant in the analysis process:

Table 8. ‘Significant risks. threats and opportunities’.