Strategy 11-12

Climate-related risks identified

AMP, its customers and its external suppliers may be adversely affected by physical and transition risks associated with climate change. These effects may directly affect AMP and its customers through a range of physical, financial and legal impacts to our business, the investments we manage on behalf of our customers and the wider community.

Initiatives to mitigate or respond to adverse impacts of climate change may in turn impact market and asset prices, economic activity, and customer behaviour, particularly in geographic locations and industry sectors adversely affected by these changes.

Time Horizons

GPT evaluates climate-related risks and opportunities across defined time horizons that align with the major redevelopment and refurbishment cycles of commercial buildings (which form the underlying assets in our portfolio). This process includes considering the Paris Agreement pathway to 2050.

• Short-term (0-10 years): Covers the current business strategy and a lifecycle within which most leases will expire in GPT buildings.
• Medium-term (10-20 years): Period within which most buildings will require lifecycle works on major capital equipment.
• Long-term (20+ years): Potential major redevelopments for most assets. Long-term climate-related risks outlined in this Statement are indicative only, and are based on trend analysis from climate risk modelling.

Climate-Related Risks and Opportunities Identified

Transition Risks

Policy and regulatory change:

• Changes to regulation, energy tariff structures and land planning and building codes
• Potential supply constraints leading to expenditure uncertainty
• Increased disclosure obligations
• Time horizon: Short, Medium, Long

Changes to market expectations, economic disruption and impacts to reputation:

• Decarbonisation expectations, including offset quality, cost and availability
• Liability and greenwashing risks
• Climate-related risk exposure of tenants
• Opportunity to attract capital through ongoing sustainability metrics
• Time horizon: Short, Medium, Long

Technology change:

• Energy insecurity in a transition to innovative technologies
• Electric vehicle uptake increasing safety risks and energy demand
• Higher costs for infrastructure upgrades to meet decarbonisation expectations
• Time horizon: Short, Medium, Long

Physical Risks

Extreme hot days, heatwaves and rising average temperatures:

• Increased capital and operational expenditure for cooling and meeting comfort expectations
• Heat damaged infrastructure leading to utilities service interruptions
• Time horizon: Short, Medium, Long

Drought and water scarcity:

• Availability of water for operations
• Increased cost of water and increased regulatory requirements
• Time horizon: Short, Medium, Long

Severe weather events, including floods, severe storms and cyclones:

• Damage to assets resulting in increased repair costs
• Disruption to operations
• Time horizon: Short, Medium, Long

Bush/grass fire (increasing fire weather intensity):

• Direct threats from bushfires such as impacts on air quality
• Threats to surrounding infrastructure impacting operations
• Time horizon: Short, Medium, Long

Tidal inundation from rising sea levels:

• Damage from direct flooding of assets or flooding of local infrastructure or communities causing access issues
• Time horizon: Short, Medium, Long

Climate-related risks and opportunities identified

QBE has identified the following climate-related risks and opportunities over short, medium and long-term time horizons:

Time horizon definitions:

• Short-term: 0 to 3 years
• Medium-term: 3 to 10 years
• Long-term: 10+ years

Physical risks

Increased frequency and severity of weather-related events, resulting in increased claims

Timeframe: Short, Medium, Long term

Climate change is expected to increasingly impact the frequency and severity of weather-related natural catastrophes. 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.

QBE considers business activities as vulnerable to climate-related physical risks where they are significantly exposed to catastrophic weather events and contribute materially to the Group's annual catastrophe claims cost within net insurance service expenses and net insurance contract liabilities. Classes most impacted include property and property-related product lines, with varying impacts across perils and regions. In property classes, QBE's peril exposures are most significantly driven by hurricanes, tropical cyclones, convective storms, windstorms and floods across North America, Europe and Australia.

As an indicator of relative exposure within the claims profile, the modelled aggregate net annual average loss (AAL) for climate-related perils for 2026 is $654 million and represents approximately 5% of the Group's 2026 plan net claims.

Climate change also remains a top risk

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.

Climate-related risks and opportunities identified

Risk and opportunity categories

Energy transition commodity demand (Opportunity)

• Customer interest in materials required for the energy transition is accelerating demand for critical minerals such as copper, aluminium and lithium. This presents an opportunity to strengthen our portfolio and capture growth in markets prioritising decarbonisation.
• Time horizon: Medium to long-term

Global technology development (Risk and Opportunity)

• Low-emissions technologies will support emissions abatement, improve efficiency, and enhance competitiveness. However, uncertainty in deploying breakthrough technologies at scale creates risk, as hard-to-abate emissions could remain exposed to carbon pricing for an extended period. Solutions such as ELYSIS™ and hydrogen-based processing offer potential to address these emissions, but scaling at pace in a cost competitive manner is critical to meet long-term goals.
• Time horizon: Medium to long-term

Climate policy and regulation (Risk)

• Increasingly stringent and uneven climate change-related policies are driving higher compliance costs and impacting competitiveness, particularly in jurisdictions where carbon pricing mechanisms are in place. Our reliance on fossil fuels exposes us to rising liabilities and operational costs as emissions frameworks tighten.
• Time horizon: Short to medium-term

Social licence and ability to access ore bodies (Risk)

• Decarbonisation, and meeting stakeholder expectations for a just transition, are increasingly becoming a prerequisite for securing approvals and maintaining stakeholder trust. Failure to act could result in project delays, increased costs and reduced access to resources as expectations for environmental and social performance intensify.
• Time horizon: Short to medium-term

Acute and chronic physical risks (Risk)

• Extreme heat: rising temperatures and frequent heatwaves impact worker safety, reduce productivity, increase cooling costs and accelerate infrastructure wear.
• Extreme rainfall, flooding, sea level rise and cyclones: severe weather events and coastal flooding damage infrastructure, disrupt operations and supply chains and impact closure planning due to erosion, instability and asset inundation.
• Water scarcity, drought and wildfire: dry conditions reduce water availability for operations, increase competition for resources, raise wildfire risks to infrastructure and safety and impact closure planning.
• Time horizon: Physical risks span across all time horizons

Time horizon definitions

Short term: Aligns with operational and financial planning cycles (up to 2 years) Medium term: Extended planning horizons for growth and emissions abatement projects (typically 2-10 years) Long term: Full lifespan of mining assets and infrastructure, continued impact of climate risks and opportunities on the business (beyond 10 years)

Risk concentration

Approximately 77% of our Scope 1 and 2 emissions originate from our Aluminium & Lithium business which is highly energy-intensive. Our portfolio is built around materials essential for the energy transition, with geographical concentration in Australia (Pacific Aluminium Operations), Canada, and other regions where we operate.

Climate-related risks and opportunities identified

The Group identified six CRROs that were considered relevant for disclosure, to support primary users' understanding and decision making. In identifying the CRROs that could reasonably be expected to affect the entity's prospects, the Group considered both of the following:

• financial materiality thresholds used in general purpose financial statements • the selection of CRROs relevant to primary users was informed by investor engagement and industry themes.

Based on the Group's assessment, these CRROs are not considered to have a material financial impact on the Group's financial position, financial performance and cash flows over the short, medium and long-term time horizons.

Time horizons

The Group assessed whether the effects of each CRRO are expected to occur over the short, medium or long term.

The time horizons are aligned to the Group's strategic planning framework and the life cycle of its Westfield destinations as described below.

CRRO types and descriptions

Specific CRROs identified by time horizon

Physical risks

Rainfall, hailstorms and flooding

• Time horizon: Short to long-term (2026–2050)
• Increased rainfall, hailstorms and flooding potentially resulting in damage to property and equipment, impact to life safety, customer visitation and construction costs

Bushfire

• Time horizon: Short to long-term (2026–2050)
• While Westfield destinations are primarily located in major metropolitan areas, some are positioned near grasslands, woodlands or forested areas that may present a bushfire risk, particularly through exposure to radiant heat and ember attack

Transition risks

Policy and regulatory change

• Time horizon: Medium to long-term (2028–2050)
• Increased costs of compliance due to climate policy and regulatory changes within Australia and New Zealand

Stakeholder expectations

• Time horizon: Medium to long-term (2028–2050)
• Failure to meet stakeholder expectations, such as not achieving publicly stated climate-related targets or making misleading statements, may negatively impact access to capital and brand

Climate-related opportunities

Enhance engagement with customers and communities

• Time horizon: Long-term (2031–2050)
• Sustainable education content is shared with customers through the connected SmartScreen network. Customers and the community have the opportunity to participate in recycling initiatives, including clothing donation and container deposit schemes. Electric vehicle (EV) charging facilities are available at a number of Westfield destinations

Support business partner transition to a low-carbon economy

• Time horizon: Medium to long-term (2028–2050)
• As part of an Integrated Environmental Plan, the Group supports its business partners to reduce their environmental impact through renewable energy certificates purchased and surrendered on behalf of business partners, sustainable store fitout frameworks and policies, and engaging and educating business partners on sustainable practices and the benefits

Climate-related risks identified

Transition risk (policy / legal) – Exposure to climate related government regulations that impose an additional cost of carbon

Time horizon: Short, Medium, and Long Term

Description: Increasingly Australian climate regulations and policy commitments, such as the Safeguard Mechanism (SGM), increase compliance requirements and costs, and may adversely impact our business. The SGM is currently the Australian Government's primary mechanism for meeting its international emission reduction obligations. As the Geelong Refinery is a high-emitting facility, the SGM poses a significant risk to unrecovered cost increases in our business in both the short and long term. Future regulations that mandate emissions reductions for the Group may be strengthened over time, increasing the cost of compliance and influence the Group's investment decisions.

Transition risk (market / technology) – The demand destruction of traditional fuels

Time horizon: Medium and Long Term

Description: A reduction in demand for hydrocarbon fuel products, driven by a combination of regulation, consumer preferences and technological advancements, could render part or all of our assets and infrastructure obsolete. It is anticipated that a combination of Government policy, improved fuel efficiency of vehicles and access to new technologies will result in displacement of existing gasoline, diesel and jet fuel sales over the medium to long term.

Climate-related opportunity identified

Transition opportunities (market / technology) – Increased demand for low-carbon liquid fuels

Time horizon: Short, Medium, and Long Term

Description: Increased demand for low emission or alternative fuels such as biodiesel, renewable diesel and sustainable aviation fuel (SAF), as well as EV charging infrastructure, are opportunities to retain and diversify revenue sources. LCLFs will play an important role in decarbonising the fuel pool by providing a drop-in replacement alternative for hard to abate sectors.

Time horizon definitions

Short term = Beyond 2025 and up to 2030: Considers short‑term external developments, including emerging government policies, uptake of emerging technologies, and shifts in customer demand. Takes into account the Group's budget and operational planning through to 2030.

Medium Term = Beyond 2030 and up to 2040: Considers more significant structural changes in energy systems, investment patterns, and regulatory frameworks.

Long Term = Beyond 2040 and up to 2050: Considers possible long-term structural developments and end state pathways associated with decarbonisation and broader transitions across our economy and industries.

Concentration of risks and opportunities

The Geelong Refinery is the Group's largest source of GHG emissions (accounting for 98% of the Group's Scope 1 emissions in 2025) and for that reason is most likely to be exposed to changing government policy. Direct Operations for Energy & Infrastructure business (Geelong Refinery) are most affected by policy/legal transition risks. Downstream operations for all business lines are affected by market/technology transition risks and opportunities.

Climate-related risks and opportunities identified

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.

Climate change and the energy transition are a strategic risk and opportunity for Woodside. Energy markets and regulations will continue to evolve. We expect sustained demand for our core product, natural gas, as customers seek to maintain energy security and affordability alongside GHG emissions goals.

Time horizons

Woodside defines its time horizons for climate-related risks and opportunities assessment as follows:

• Short term: within the business planning horizon (typically 1-5 years)
• Medium term: within the strategic planning horizon (typically 5-15 years)
• Long term: beyond the strategic planning horizon (beyond 15 years)

These time horizons are aligned with Woodside's strategic decision-making and capital deployment cycles for oil and gas projects, which typically involve significant upfront investment with production periods spanning multiple decades.

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.

From an EROMF perspective, our assessment indicates that Yancoal's most material climate-related exposures relate to transitional risks associated with the move toward a lower‑carbon economy. These include policy and regulatory changes, carbon pricing, evolving market demand, access to finance and insurance, and broader energy system dynamics.

Physical Risks

Physical risks, including increased frequency and severity of extreme rainfall, storms, flooding and drought, remain relevant for some operations and are being monitored through our Climate Scenario Analysis work.

Transition Risks

Transition risks include changes in policy, carbon costs, market demand and access to finance.

Opportunities relating to electrification and fuel switching were also identified through this assessment.

Understanding these risks and opportunities supports strategic decision‑making and capital allocation, including opportunities to improve operational efficiency, deploy new technologies and strengthen resilience across our asset base and supply chain.