Risk Management 23-24

Climate-related risk identification and assessment

Climate-related risks are identified, assessed and monitored in accordance with the AMP's Risk Management Framework (RMF) which includes the Risk Management Strategy (RMS) and Risk Appetite Statement (RAS) that guide consistent risk oversight across the organisation.

AMP's climate-related disclosures prepared in accordance with AASB S2 Climate-related Disclosures (AASB S2) are presented in the Sustainability report (pages 72–90) which describes AMP's approach to managing climate-related risks and opportunities. Certain climate-related disclosures which are not mandated by AASB S2 for 2025 are included in AMP's Sustainability supplement, at amp.com.au/about-amp/what-we-do/corporate-sustainability.

Risk Identification and Assessment Processes

GPT's climate and nature-related risks and opportunities are identified and managed in accordance with our enterprise-wide Risk Management Framework (RMF), which is consistent with ISO 31000:2018. The Risk Team, led by the General Counsel, oversees implementation and reports regularly to the Audit and Risk Committee on matters relating to the RMF, including key risks, emerging risks, risk appetite and risk culture.

Integration into Risk Management

Climate and nature-related considerations are integrated across the business through GPT's Risk Appetite Statement and key policies, linking sustainability factors to operational and strategic risk processes. Cross-functional governance committees (including representatives from finance, sustainability, risk, compliance and legal) review performance, emerging issues and control efficiencies.

Inputs and Parameters

In practice, this covers:

• Acquisitions and divestments: Due diligence screens (e.g., flood, heat, bushfire) can inform asset consideration or alter price/terms/investment considerations
• Development and existing asset lifecycle upgrades: Long-term climate modelling is considered in design standards and upgrade timing to avoid stranded spend
• Portfolio management: Risk appetite metrics flag assets with elevated long-term exposure, informing budgets and asset plans

Assessment Process

Direct asset risks and opportunities are assessed based on strategic, financial, and reputational impacts, using thresholds such as net operating income, capital expenditure and asset fair value to determine the magnitude of effects. In our assessment, we also consider qualitative indirect implications, including effects on surrounding properties, communities and infrastructure.

Asset level climate and nature risk and opportunity reviews and climate adaptation plans are undertaken referencing:

• Climate scenario modelling
• On-the-ground surveys
• Expert studies (such as stormwater, ecology, heritage)
• Internal operational data

Scenario Analysis Integration

GPT uses scenario analysis to inform and test the resilience of risk and opportunity assessments. Scenario analysis is applied across transition and physical (acute and chronic) risks, using asset-level modelling to evaluate both exposure and resilience.

Prioritisation Criteria

GPT's Risk Management Framework was applied to assess the likelihood, magnitude and consequence of each risk to determine significant climate-related risks and/or opportunities. Climate and nature-related risks and opportunities identified are evaluated alongside other enterprise risks in accordance with GPT's Risk Management Framework to maintain consistency and integration into business processes.

Changes from Prior Period

Risk assessments, thresholds, and management plans are updated as data, hazards, and regulations evolve.

Risk identification and assessment processes

QBE understands and monitors climate risk through scenario analysis, development of a Climate Transition Plan, and uplifted sustainability governance to support mandatory reporting.

Climate-related physical risks arise from acute, weather-related events (such as more frequent and severe storms, floods, drought or heatwaves) and from chronic, longer-term shifts in climatic patterns (including changes in precipitation and temperature that may lead to sea level rise, reduced water availability, biodiversity loss and changes in soil productivity).

These risks are continually assessed through catastrophe modelling and underwriting analysis, which inform the Group's underwriting and reinsurance strategy, as well as the calibration of the catastrophe allowance within the business plan.

Climate change also remains a top risk, with increasing frequency and severity of extreme weather events and evolving regulatory frameworks across jurisdictions. QBE continues to enhance its understanding of transition risks and is uplifting data to support reliable disclosures and strategic decision-making.

The Sustainability Steering Committee supports the execution of QBE's sustainability strategy and reporting, and oversight of ESG (including climate-related) risks. Provides input and makes recommendations to the E&S GEC Subcommittee and ERC on matters including climate strategy and performance, scenario analysis, sustainability reporting, and related policies.

Risk identification and assessment processes

Processes and policies

Climate-related risks and opportunities are integrated in our enterprise-wide risk management framework. These are identified by product groups and supporting functions, then included in the appropriate risk register. These will be assigned a risk owner and evaluated on the maximum reasonable consequence (non-financial and financial) and likelihood of the risk.

Our process for identifying material transition risks considers whether climate-related factors, such as regulatory and policy changes, technology developments, community expectations, and physical climate impacts, could have a material impact on our business model, strategy, or financial statements.

Inputs and parameters

Physical climate risk assessment scope: The scope of our assessments includes our operations and the environments in which we operate, our people, the communities who host us and our supply chain.

Data sources and coverage:

• Climate projections are available for all assets, including non-managed sites, covering over 60 variables and multiple emissions scenarios
• Flood risk modelling has been completed for 100% of assets across present-day, medium, and long-term horizons
• We apply advanced weather and climate data including short-term and severe weather forecasts, climate outlooks, catastrophe modelling, and long-term climate projections (CMIP5 and CMIP6)

Scenario analysis integration

We use scenario analysis to identify and assess material risks and opportunities, including those related to climate change. All material Group operations are included in our analysis.

Transition risks: Assessed using short-term market analysis and our Group Conviction, Resilience and Aspirational Leadership scenarios for the medium and long term. These scenarios are macroeconomic in nature and reflect an integrated assessment of climate change, geopolitics, policy developments and broader economic conditions.

Physical risks: Assessed separately using bottom-up, asset-level analysis aligned to discrete climate model-based emissions scenarios, including intermediate and high-emissions pathways.

Changes from prior period

In 2025, climate change has been elevated to a standalone principal risk to reflect its increasing relevance and potential to materially impact our business. "Preparing our business for climate change" includes both physical risks and transition risks and opportunities.

In 2024, we updated the scenario framework used to assess the resilience of our business under different transition-related scenarios. This year, the Conviction scenario was rerun to reflect updated assumptions and temperature outcomes, while the Resilience and Aspirational scenarios were not rerun.

Prioritisation criteria

Consequences may include the impact on Group free cash flow or business value, or reputation and licence to operate. Climate-related opportunities are prioritised by considering factors such as shareholder value, asset cost base, emissions abatement potential, and competitiveness against the marginal abatement cost curve.

Risks are escalated to the appropriate level of management for oversight and action based on materiality assessments.

Identification and assessment

Processes and policies used to identify and assess CRROs

A Climate-Related Risks and Opportunities (CRROs) Management Framework was prepared in alignment with the principles of the Group's broader Enterprise Risk Management Framework (ERMF) in 2024 and applied in 2025. The CRROs Management Framework details the approach to identify, assess, prioritise, mitigate and monitor climate-related risks and manage climate-related opportunities.

The Enterprise Risk Management Framework (ERMF) outlines how the Group identifies, assesses, manages and monitors risks and controls. It references globally recognised standards including ISO 31000:2018 as well as regulatory guidance from the Australian Securities and Investments Commission and the Australian Securities Exchange. The ERMF applies to all teams and identified risks, including climate-related risks.

Annual risk analysis processes include developing team and specific risk profiles that outline key controls and mitigation plans for managing identified risks, including climate-related risks. This in turn informs the review and update of the enterprise risk profile.

Identification process

An initial list of CRROs relevant to business operations was developed through external research, support and review from external advisers, internal sources including workshops with team members from across the business, and insights previously identified under the Task Force on Climate-related Financial Disclosures (TCFD).

Inputs and parameters

Internal inputs included:

• The Group's Integrated Environmental Plan
• Portfolio climate exposure assessments. The assessments were focused on a broad range of physical climate hazards, and the degree to which the Group's destinations may be affected
• Workshops with team members from across the business
• Insights previously identified under TCFD

External inputs included:

• Publicly available information and competitor data
• Property and construction industry reporting
• International perspectives informed by climate scenarios from the United Nations (UN)
• External research, support and review from external advisers

Scenario analysis informing identification

For details on the application of the UN climate scenarios, including how they were used to assess the impact of CRROs, refer to the Climate‑related risk and opportunities section on pages 97 to 98.

The Group used three climate scenarios developed by the Intergovernmental Panel on Climate Change (IPCC), the United Nations climate science body. These scenarios, which reference Shared Socioeconomic Pathways (SSPs) and different potential future climate outcomes, informed the Group's assessment of CRROs.

Assessment and prioritisation

The Group risk assessment matrix considers categories including life safety, earnings and distribution, operational efficiency, environmental impact and reputation. This matrix was used to assess and prioritise the climate-related risks in a low and high-emissions scenario and within the Group's defined time horizons.

Prioritisation criteria

Medium and above ratings have the most potential impact on the Group. Given multiple controls are in place for the climate-related risks in the short and medium term, an inherent rating of medium was determined as adequate to capture those CRROs which could potentially pose a material risk to the Group.

A medium rating can arise from different likelihoods and consequences for example, almost certain/negligible, possible/moderate, or rare/major. By undertaking an assessment on those CRROs rated medium or above the Group captured risks that were either more likely with low impact or less likely with higher impact, reflecting a risk based approach to prioritising assessments.

Opportunities were assessed as to whether they were part of the Group's current strategy and activities, could be achieved through the existing business model and potentially provide material financial benefits.

Endorsement and approval process

The CRROs were endorsed and approved by the Executive Australian Sustainability Reporting Standards (ASRS) Steering Committee, the RSC and the Board.

Changes from prior period

The CRROs Management Framework was developed in 2024 as a new framework specifically for climate-related risks and opportunities, building upon the existing Enterprise Risk Management Framework. This represents the first year of application of the specific CRROs Management Framework.

Processes and policies for identification and assessment

Our assessment relies on both quantitative and qualitative factors to identify and assess material climate-related risks and opportunities and their potential impacts on our business model and value chain.

Our assessment draws on climate scenario analysis, our Enterprise Risk Management framework and governance processes, as well as inputs from internal and external subject matter experts. Through this work we continue to identify, assess, prioritise and monitor climate-related risks and opportunities.

Risk identification methodology

We assess the materiality of climate‑related risks and opportunities considering both their likelihood and potential financial impact. This involves a mix of qualitative and quantitative analysis, supported by judgement and assumptions that we update each reporting period to reflect the best available information.

The Sustainability team is responsible for the continual update of the Company's climate-related risk and opportunity register, with input from subject matter experts throughout the business.

Inputs and parameters

Data sources: Our scenario analysis incorporates scenarios based on projections from the International Energy Agency (IEA), Australian Energy Market Operator (AEMO), and Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report.

Scope of operations: Assessment covers the Group's business model and value chain, with particular focus on the Geelong Refinery operations and downstream fuel distribution.

Subject matter expertise: Inputs from internal teams including Strategy, Sustainability, Decarbonisation and Future Fuels, Carbon Solutions, Legal, Finance, Procurement, and Supply and Technical teams, as well as external subject matter experts.

Role of scenario analysis

Climate scenario analysis plays an important role in identifying and assessing our material climate risks and opportunities, as well as the resilience of our business model and strategy. Our scenario analysis assesses the broader businesses operations, with a particular focus on our refinery operations in Geelong, Victoria.

Changes from prior period

We initially conducted a climate risk and opportunity scenario assessment in 2024, evaluating results across three timeframes. During 2025 we reviewed this modelling and resilience assessment to ensure it remained relevant and aligned with the latest insights on climate-related impacts across the Group's operations, business model, and strategy.

Prioritisation criteria

Through our assessment, we identified material climate related risk and opportunities for our business based on their potential consequences:

• Financial impacts (revenue, costs, capital requirements)
• Operational impacts (asset obsolescence, supply chain disruption)
• Regulatory compliance impacts
• Reputational impacts

We maintain ongoing oversight of a broad range of climate-related risks and opportunities. While many of these are not currently assessed as material, we anticipate that additional climate-related risks (including physical climate risks) and climate-related opportunities may emerge over time as internal priorities and external operating conditions evolve.

Risk management process for climate-related risks and opportunities

Woodside's risk management process is described in Section 3.7 – Risk Factors. Sustainability risks are incorporated into this process. Information about the process for identifying material climate-related risks and opportunities is included in Section 3.6.8.1 – Basis of Preparation.

As a business, Woodside categorises its risks in three ways: • strategic (those within our sphere of influence that could significantly affect our ability to achieve our medium- to long‑term strategic objectives) • emerging (those capturing external threats or factors that have a high degree of uncertainty and are not readily controlled by Woodside) • current (those that could affect our ability to deliver our objectives).

Woodside's strategic risks align with several of its material sustainability topics. Risks categorised as "strategic" are reviewed by the Board, its Audit & Risk Committee and the Executive Leadership Team at least twice a year, and the Board confirms its risk appetite in relation to each strategic risk. Management actions that need to be taken in order to address the risks are incorporated into Woodside's internal risk management system.

Board oversight of climate-related risks and opportunities

Woodside assesses and discloses the current and anticipated material climate-related risks and opportunities that could impact its business and value chain. These include physical risks, transition risks, and transition opportunities. The Board and its Sustainability and Audit and Risk Committees contributed to the design of this process and reviewed its outcomes. Risks and opportunities were assessed against factors including the potential effects on cash flows, access to finance and the cost of capital over the short, medium and long term.

Inputs and parameters

Risks and opportunities were assessed against factors including the potential effects on cash flows, access to finance and the cost of capital over the short, medium and long term. Where sufficient information is available, an assessment of the potential financial impact of these risks and opportunities has been undertaken.

Materiality assessment process for sustainability topics

Woodside undertakes a materiality assessment process which builds upon our risk management process with a specific focus on the further identification of sustainability topics. It is intended to inform our understanding of which sustainability-related topics are most relevant to our business performance, activities and stakeholders. It considers potential risks, opportunities and impacts of sustainability topics on our business, the economy, the environment and upon people, including impacts on human rights.

In undertaking the materiality assessment, management draws upon internal and external inputs, including from our risk management process, and the monitoring of developments, trends and stakeholder views throughout the year, as well as the experience and expertise of Board Directors and senior management. In addition, some specific engagements with stakeholders (such as investors, customers, communities, and governments) can help us to verify our analysis.

When topics have been identified, they are prioritised. The highest priority topics are determined to be material. Following endorsement by the Executive Leadership Team and the Sustainability Committee, actions to address the material topics are included in Woodside's Sustainability Plan which is monitored by the Executive Leadership Team and the Sustainability Committee.

Yancoal's Enterprise Risk and Opportunity Management Framework (EROMF) establishes a link between business objectives, strategy and risk, and opportunity management activities. It provides the foundation for managing uncertainty through a structured and consistent approach. The framework sets out the minimum requirements for identifying, assessing and managing risks and opportunities across the business, including those related to ESG and climate.

Our risk identification activities are guided by ISO 31000 Risk Management, and are undertaken on a periodic basis, with analysis performed at specific functional and mine-site levels.

CRROs are managed through our Enterprise Risk and Opportunity Management Framework (EROMF), which integrates climate considerations into the broader enterprise approach to identifying, assessing and responding to risk.

During the year, we enhanced our understanding of CRROs in line with AASB S2. This included progressing our phased Climate Scenario Analysis program, supported by external experts, to help assess the potential impacts of both physical and transition-related risks across a range of hypothetical future scenarios.

Our Climate Scenario Analysis aligns with the latest international agreement on climate change, covering both 1.5°C and 2°C warming scenarios directly required by AASB S2 and reflecting the temperature goals of the Paris Agreement.

All operations are required to maintain an environment and community risk register. Relevant controls and other mitigation measures are developed and implemented to assist in the management of these risks. Environment and community related risks are incorporated into each site's broader risk assessments, with significant risks captured in the Corporate Enterprise Risk Management Register.