The Group’s business model is designing and manufacturing customised electronics for industrial applications. Our engineers work closely with our customers on creating innovative solutions to solve their technical challenges, which enables us to gain insights and knowledge of emerging technology and trends.

The Group’s products (magnetics, sensors, control interface and systems, and connectivity components) are essential components and enable the functioning of any electrical and electronic systems. The Group’s strategy of focusing on the markets that play a critical role in decarbonisation, such as renewable energy and industrial automation, ensures that our products and services remain relevant over the long term and that the Group can capitalise on the growth opportunities during the transition to a low carbon economy.

To ensure that the Group will continue to thrive under a changing climate, we have undertaken an initial analysis of the resilience of our business model and strategy to two climate scenarios – world surface temperature to rise by less than 20C and by 40C compared with pre-industrial levels – representing the best and worst case scenarios.

We assess a number of parameters, such as policy changes and market trends, under each scenario over the short, medium and long term. The analysis shows that the risks the Group faces during the transition to a low carbon economy are low and likely outweighed by the opportunities in the short to medium terms; and that the physical risks over the long term in the worst case scenario can be mitigated. Climate-related risks and opportunities can be found in the Risk Management section of our Annual Report.