East Water manages risks on a sustainability-driven foundation, incorporating environmental, social, and governance (ESG)

dimensions to prevent and mitigate potential business risks. This is achieved through a risk management framework aligned with the Committee of Sponsoring Organizations of the Treadway Commission (COSO) standards, along with analyzing and anticipating potential events from internal and external factors that may arise. Thus, operational priority, preventive and corrective measures, and effective management guidelines can be identified. These factors are then incorporated into the Company’s risk assessments and business opportunity evaluations.

Enterprise Risk Management is a core management and corporate governance policy that enhances operational efficiency, supporting the company’s sustainable growth in alignment with quality management system requirements. This approach ensures a thorough understanding of the organizational context and objectives while also addressing the needs and expectations of stakeholders. The Company required risk identification to cover 6 types of risks, namely 1. Strategic Risk, 2. Operational Risk, 3. Financial Risk, 4. Compliance Risk, 5. Environmental, Social, and Community Risk, and 6. Information Technology Risk. Further details are available in Annual Report 2024 (Form 56-1 One Report) under Risk Management topic in page 46 and Internal Control topic in page 111) (Disclosure 205-1)

In addition, the Company requires all departments to conduct corruption risk assessments, applying CAC principles to identify activities or processes prone to corruption, such as requesting or renewing licenses with government agencies and bidding for public and private sector projects. The Company also requires identifying root causes of potential corruption, categorized into 3 types: (1) Facilitation Payments, (2) Bribery to Evade Regulations, and (3) Bribery for Business Opportunities. Once the likelihood and impact are assessed based on the Company’s criteria, control measures must be implemented to reduce risks to an acceptable level. Additionally, the Internal Audit Office conducts monitoring and random inspections to ensure compliance and effectiveness.

East Water developed its Business Continuity Management (BCM) by laying down a holistic management system covering crisis management plan, crisis communication plan, and business continuity plan connecting all agencies across the organization.

The climate variability caused by global climate change includes natural oceanic phenomena such as El Niño and La Niña, which significantly influence temperature and rainfall patterns. These two phenomena typically occur in alternation—El Niño generally appears every 5–6 years, lasting 12–18 months, while La Niña occurs every 2–3 years, lasting 9–12 months, though in some cases, it can persist for up to 2 years.

Given these phenomena, the Company has assessed that if El Niño persists for 3 consecutive years or if Thailand experiences three consecutive years of drought (an emerging risk), it could lead to a problem in water sources, impacting water stability and the efficiency of water management in collaboration with relevant agencies. This scenario could escalate into a severe drought crisis, resulting in water shortages.