Over time, climate change can affect the operations of the Group and the markets it operates in, including physical risks such as acute and chronic changes in weather, transitional risks, and market and economic responses. The implementation of laws and regulations to combat climate change, including the need to reduce emissions of GHGs like CO2, may cause economic risks and uncertainties for the Group businesses. These risks may include the cost of purchasing products or equipment, decreased profits or losses from reduced demand for the Group goods, and higher production costs resulting from imposed legislative or regulatory controls.