Assessment of Climate-Related Risks and Opportunities

Assessment Approach

SMG applies a structured process in assessing potential climate-related risks and opportunities relevant to its business model.

It used a qualitative assessment to review enterprise risks, the business model, and value-chain characteristics to identify potential climate-related drivers. This included consideration of dependencies between suppliers, internal operations, and users. External climate and socioeconomic information was reviewed to support the assessment of potential transition and physical climate developments.

Identified drivers were assessed using qualitative likelihood and impact considerations and refined through internal reviews and targeted analysis. Climate scenarios were analysed on a qualitative basis as part of the climate risk assessment. Outcomes were reviewed and validated through established governance processes.

Link to the Double Materiality Assessment
Under the DMA conducted in line with EFRAG guidance, SMG assessed both the impact materiality and financial materiality of climate-related matters. Climate and energy-related impacts, particularly impacts linked to greenhouse gas emissions and energy consumption, were confirmed and addressed through SMG’s climate and energy management approach, as described in Climate and Energy Management.

Assessment Outcome

Overall, the assessment confirmed that SMG’s diversified digital business model demonstrates resilience across climate scenarios and did not identify any climate-related risks or opportunities that are financially material.

The outcome of the climate risk assessment and the financial materiality assessment under the DMA informed SMG’s TCFD-aligned disclosures. Consistent with this conclusion, disclosures in the Sustainability Report focus on describing the assessment approach and confirming its outcome. As no financially material climate-related risks or opportunities were identified, disclosures relating to detailed scenario assumptions and quantified scenario outcomes are not provided.

SMG will continue to reassess the financial materiality of climate-related risks and opportunities on an annual basis in the context of its DMA and ERM framework. Any changes in business activities, regulatory developments, or market conditions that could affect this assessment will be reflected in future reporting periods.