The main risk is the delay of raw materials caused by severe weather, which might influence procurement, production, and transportation departments. Based on CSC's assessment, without adaptation measures, the financial impact could be less than 0.5% of CSC's revenue

As country of origin of some raw materials are covered by high physical risk (such as floods), CSC has implemented several adaptation measures, with total investments accounting for approximately 0.6% of CSC's CAPEX :

• Incorporate weather monitoring, supply chain maintenance, etc. into daily management with the concept of CSC continuity operations plan, to respond immediately to extreme weather events.
• CSC selects ports of low climate impact as transfer points for raw materials such iron ores. This shortens the waiting time and reduces cost of delay if the raw material origins were to be influenced by extreme weather events.

Result: Reducing the transport cycle from 60 days to 3 days, which will solve the problem of uncontrollable factors affecting the material use of the long distance.