Climate Oversight Our Board holds overall responsibility for the company's response to climate change, overseeing the identification, assessment, and management of associated risks and opportunities. On the current setup, two board committees have strategic oversight and advisory over climate-related matters – these are the Board Risk Oversight Committee (BROC) and the Environment, Social, and Governance (ESG) Committee. Through Resolution No. A-2021-005, approved and ratified by the Manila Water Board in 2021, BROC was given oversight over Climate-Related Risk and Opportunities. This resolution underscores our commitment to systematically address the risks and impacts of climate change. In 2023, the BROC continued to oversee the company's ERM process where threats on water security and natural disasters aggravated by the effects of climate change were discussed. In addition to the BROC, the ESG Committee, formed in 2022, also engages in quarterly board-level discussions on sustainability risks and opportunities including climate-related matters focused on metrics, targets and performance. In 2023, updates on the Net Zero project were discussed, leading to the recommendation of the ESG committee to prioritize GHG reduction for scopes 1 and 2. Within the company, our President, who also chairs the ESG Committee, guides the implementation of the company's strategies, including programs on water security and climate actions to ensure the sustainability of the business amid the changing environment. [...] He is supported by the Chief Risk Officer (CRO) and the Head of Sustainability. Following the TCFD framework over the past two years, both roles managed and collaborated to set-up the Manila Water organization to be responsive to the challenges of water security and climate change. The CRO, and the Enterprise Risk Management Committee (ERMEC) takes the lead in exercising oversight, and risk and opportunities identification and management. For climate-related strategies, metrics and targets, the Sustainability Head, working with the President and Chief Administrative Officer, exercises oversight over our mitigation and adaptation efforts. Through the Sustainability team, he ensures that a decarbonization roadmap and business continuity efforts are present and implemented in response to climate-related risks. This effort includes working with the various sectors of the organization to drive initiatives that will contribute to emissions reduction and support units in charge of safety, and disaster, and risk mitigation.