Business model and value chain

Index: 13(a) and 13(b) map to section 14.2 (pp.117–130) and to a vulnerability section numbered 12.3, which matches 14.3 on exposure of business activities (p.131).

Value chain (p.107). AGL shows an electricity value chain (upstream supply chain; grid-scale generation and storage; transmission and distribution; retailing; customer end use) and a gas value chain (upstream supply chain; production, transport and storage; transmission and distribution; retailing; customer end use). AGL operates the largest privately owned electricity generation portfolio in Australia and owns and operates the Loy Yang Mine. It does not own or operate upstream gas production or transmission and distribution infrastructure.

Where effects concentrate (14.2). Each item says where it is concentrated: access to capital mainly affects the operated and contracted generation portfolio, with flow-on effects to trading and retailing (p.119); changing customer preferences are concentrated in electricity and gas retail (p.122); physical risk to energy assets is concentrated in operated electricity assets (p.124).

Exposure by activity (p.131). Thermal generation, renewables and firming, electricity retail and gas retail are shaded higher or lower exposure for each risk and opportunity. FY26 EBITDA: Integrated Energy $2,032m / 84%; Customer Markets $392m / 16%. Coal-fired generation is 48% of operated and contracted capacity.

Physical risk: Physical climate‑related events impacting the value of assets due to geographical location

Potential impact to AMP's business model: Increased credit risk and loss given default impacting AMP Bank's mortgage book due to collateral devaluation. Potential reduction in investment income and fund performance in our Australian and New Zealand wealth management businesses due to extreme weather events and chronic climate impacts affecting companies and sectors, particularly those not taking sufficient action to build resilience and adapt to climate change. Potential impact to AMP's value chain: Tighter lending policies and reduced borrowing capacity for AMP Bank customers in high‑risk regions. Heightened volatility in investment returns, particularly where assets lack sufficient resilience to withstand or adapt to physical impacts of climate change potentially impacting members in our Australian and New Zealand wealth management businesses.

Transition risk: Emerging climate regulations and compliance obligations

Potential impact to AMP's business model: Increased operational and compliance costs. Legal and financial risk from potential fines and penalties for non‑compliance. Reputational risk. Potential impact to AMP's value chain: Heightened regulatory scrutiny on climate disclosure, performance assessment and compliance. Potential impact on shareholder value if climate‑related regulatory costs or compliance obligations affect AMP's financial performance or growth outlook.

Transition risk: Investee companies and sectors fail to adapt to clean technology disruption and decarbonisation trends

Potential impact to AMP's business model: Decreased valuation of investment assets, including stranded assets. Increased operational costs to integrate sophisticated climate risk assessment tools into investment management processes. Reduction in returns from investments in companies and sectors which are not taking action to transition towards a lower‑carbon economy. Potential impact to AMP's value chain: Slow adaptation to build climate resilience or evolve sustainable investment solutions could lead to potential outflows or reduced inflows.

Opportunities: Increased demand for climate‑linked products; Diversification into climate transition and resilient assets

Potential impact to AMP: Access to new customer segments seeking sustainable and climate‑conscious financial solutions. Strengthened market position in sustainable investments. Enhanced product innovation and differentiation. Potential for enhanced returns on investments benefitting from economic growth associated with the transition to a lower‑carbon economy. Potential benefits to AMP's value chain: Potential increase in availability of climate aware opportunities to invest in assets designed to withstand climate‑related risks. Access to innovative financial solutions aligned with climate goals.

Concentration of risks and opportunities

As a financial services organisation operating primarily in the capital cities of Australia and New Zealand, AMP does not have direct operations in industry, sectors or locations that are considered highly exposed to climate‑related physical or transition risks. While our Australian and New Zealand wealth management businesses manage diversified and single sector investment portfolios on behalf of members that may have exposure to such risks through underlying investments, AMP does not own these investments and hence there is no direct impact on our financial position as the underlying assets are not recognised in AMP's balance sheet in accordance with the requirements of accounting standards. Additionally, AMP Bank does not provide business financing to industries typically associated with elevated climate risk, and therefore has limited direct exposure there. To better understand our exposure to physical climate risks in respect of the residential mortgage portfolio, we have conducted a vulnerability assessment of the portfolio using suburb‑level data to identify areas potentially exposed to climate‑related hazards.

Risk 1: Reduced demand for traditional fuel products

Value chain impacts: Operations related to the sourcing, shipping, manufacturing, distribution and sales of traditional fuels are exposed to this risk, with assets concentrated in Australia and New Zealand.

Risk 2: Climate policy and regulatory uncertainty

Value chain impacts: Operations related to the manufacturing, distribution and sale of traditional fuels as well as EV charging operations and potential lower carbon liquid fuel manufacturing are exposed to this risk, with assets concentrated in Australia and New Zealand.

Opportunity 1: Development of electric vehicle charging solutions

Value chain impacts: Concentrated in Ampol's EV charging offerings to retail customers and B2B businesses across Australia and New Zealand.

Opportunity 2: Provision of co-processed and lower carbon liquid fuels

Value chain impacts: Concentrated in Ampol's refining operations in Australia, and fuel trading and wholesale value chain across Australia and New Zealand.

Ampol's Trading and Shipping business, network of storage assets, Lytton refinery, and its retail/distribution network (with owned freehold on 167 sites and controlling interest in 285 premium retail forecourt sites, plus numerous long-dated leases across Australia and New Zealand) represent key concentrations where climate-related risks and opportunities are relevant, given they underpin the sourcing, shipping, manufacturing, distribution and sale of both traditional fuels and emerging lower carbon products.

Business model (page 41). Beach's operating segments are its South Australian, Western Australian, Victorian and New Zealand interests, based on geographic regions and the similarity of assets within them. The segments are used to assess physical climate-related risks. Transition risk is considered across the portfolio, including for different products and markets, and the impacts of climate scenarios on commodity pricing are considered within the scenario analysis.

Value chain (page 41). Key relationships are purchased goods and services such as engaging a rig (all operating segments); marine and aviation transport to support rigs and platforms (VIC and NZ); processing of sold products, transportation and distribution of sold products, and customer demand for products (all operating segments).

Where effects are concentrated (page 43). Beach operated and non-operated upstream assets, in particular the core producing assets in the Cooper Basin (SA), Perth Basin (WA) and Otway Basin (VIC). Effects are described risk by risk (pages 44–53). For example, Beach's assets are resilient to physical risks associated with severe weather (page 44); the increase in cost of carbon impacts all assets and facilities under Australia's Safeguard Mechanism (page 46); and reduced demand could result in stranded assets or reduced reserves (page 48).

Assets and business activities most vulnerable to each risk, or aligned with the opportunity, are set out in Table 1 (pp. 66–71) and, for physical risk, in Figure 4 (p. 70).

• Transition risk 1: operations in Australia, Chile and Canada, and other growth-focused jurisdictions, may be exposed. FY2026 carrying value of property, plant and equipment, intangible assets and goodwill in groups of cash generating units that include facilities covered by the Australian Safeguard Mechanism (SGM): US$51.4 billion, 63% of the Group total (p. 66).
• Transition risk 2: concentrated in assets with hard-to-abate emissions, mainly diesel and fugitive methane. FY2026 operational decarbonization capital expenditure was US$30 million, under 1% of Group capital expenditure (p. 67).
• Transition risk 3: BMA contributed US$0.7 billion (2%) of FY2026 Underlying EBITDA and US$6.4 billion (9%) of net operating assets (p. 68).
• Transition opportunity 1: copper contributed US$18.2 billion (54%) of Underlying EBITDA and US$43.5 billion (59%) of net operating assets (p. 69).
• Physical risk 1: Figure 4 maps hazards and potential impacts by asset, with each asset's share of FY2026 Group revenue: WAIO 40%, Escondida 29%, Copper South Australia 10%, BMA 7%, Pampa Norte 5%, NSWEC 3%. BMA and WAIO are in regions where adverse weather affects production more often. BHP says effects on its business model and value chain may be both direct and indirect (p. 70).

Value chain (p. 176). A table covers upstream activities (raw material extraction, production and processing; steel sourcing in non-steelmaking regions; materials transport), BlueScope's operations (recycling, ironsand extraction, steelmaking at PKSW in Australia, North Star in North America and Glenbrook in New Zealand, metal coating and painting, long products, pipe and tube, steel building materials and steel buildings) and downstream activities (distributors, customers), with locations, plus government, investors and communities.

Where CRROs are concentrated (Table 1, pp. 182–187). Risks 1 and 2: steelmaking in Australia and New Zealand, with customers (Risk 1) and governments (Risk 2) in the external value chain. Risk 3: steelmaking in Australia, North America and New Zealand plus midstream and downstream (68 selected sites across Australia, New Zealand, North America, China and Southeast Asia), with customers and suppliers. Opportunity 1: steelmaking, midstream and downstream across Australia, North America, New Zealand, Pacific Islands, Southeast Asia and China; Opportunity 2: steelmaking in Australia, North America and New Zealand; both with customers.

Effects. Each CRRO lists effects on business model, strategy and decision-making, for example lower demand or prices for certain products (Risk 1, p. 182) and higher regulatory, operating and input costs (Risk 2, p. 183).

Business model and value chain (p. 41). Coles has a supermarket and liquor store footprint and digital platforms; revenue comes primarily from sales of fresh food, groceries, general merchandise and liquor, and other services. Products come from domestic and international suppliers via centralized distribution centers; manufacturing supports supply in meat, dairy and convenience. This supply model reflects exposure to value chain emissions and climate-related risks, particularly in upstream sourcing. Scope: Supermarkets, Liquor, QuiteLike, Coles 360, Coles Financial Services and joint ventures (Flybuys, QVC).

Where effects are concentrated

• More than 90% of value chain emissions are indirect (Scope 3), so the Group relies on suppliers (p. 48).
• Carbon price sensitivity modeling (low-warming scenario) indicates the greatest exposure is across the upstream supply chain, particularly emissions-intensive suppliers contributing to Scope 3 FLAG emissions (p. 54).
• Supermarkets account for about 85% of total energy costs (p. 46).
• Automated Distribution Centres (ADCs) and Customer Fulfilment Centres (CFCs) carry greater concentration risk if one facility is affected (p. 51).

Effects on the business model. Transition risks already influence operations through decarbonization activities and targets (p. 54). No changes to the business model are anticipated (p. 53); how capital planning, sourcing and asset design could shift under each scenario is on pp. 54–55.

Business model and value chain (p.95). The Bank creates value by delivering essential banking services: accepting deposits, providing lending and credit, facilitating payments and transactions, and managing capital and risk. The value chain covers people, processes, technology and external relationships.

Where effects concentrate (pp.95–96, 120–121). Lending accounts for more than 97% of total emissions (operational emissions are less than 3%) and is where climate risks and opportunities are most likely to emerge, through customer cash flows, asset values and sector performance, increasing credit risk. Australian housing is 62.9% of total funded exposures. Flood risk is the largest share of the 2.3% of Group total committed exposures (TCE) vulnerable to physical risk, with the City of Brisbane area holding the largest concentration of flood-vulnerable properties. Corporate transition exposure sits mainly in dairy and livestock, then air and road transport.

Effects (pp.123–125). Impacts are described as largely indirect, arising through customers: lost income and financial stress, insurance availability and affordability, falling collateral values, higher default risk in agricultural and regional portfolios, and credit risk in sectors or regions affected by the transition. Branches, technology infrastructure and critical suppliers may also be disrupted. Opportunities are delivered through existing products and services.

Each risk table has a "Current and potential impacts and location in the business model and value chain" row.

• Physical risk 1, heat stress (p. 146): black-outs and brown-outs could interrupt operations and create quality issues for temperature-controlled products; extreme heat increases energy used for cool and cold storage. Financial impacts anticipated to be most pronounced across cool- and cold-store facilities in America and Europe.
• Physical risk 2, extreme weather (p. 147): damage to facilities, plasma donor centers, sites and third-party logistics suppliers disrupts supply of products; impacts anticipated to be more pronounced in Europe and America.
• Transition risk 1, carbon pricing (p. 148): higher costs of products and services procured; exposure expected to be concentrated across the plasma collection network and energy-intensive manufacturing, including plasma fractionation, and manufacturing facilities in Australia and North America over the short to medium term.
• Transition risk 2 and Opportunity 1 (p. 149): failure to meet customer expectations could reduce or block market access; meeting them could help secure wider market access. More pronounced in European markets in the short term.

Value chain scope (p. 145): 17 owned sites representing greater than 90% of total fixed asset value, excluding leases and impairments, plus value chain workshops on the upstream and downstream supply chain.

Company index: 13(a)–(b), p. 145 and pp. 2–3.

Value chain (p. 77). Upstream, the Group depends on key suppliers, key distributors and third party logistics and freight providers (predominately Australia, then the US, Singapore, UK among others). Downstream, it sells to customers and uses third party logistics providers (Australia and the Pacific Islands (Fiji, PNG)). The Group states it has assessed its own operations and its value chain (p. 76).

Where risks and opportunities sit (pp. 82–83). The risk and opportunity table lists value chain stages covered: changing customer behavior (Operations, Downstream); weather risk (Operations); stronger competitive advantage (Operations, Downstream); development of new products or services (Operations, Downstream).

Effects named in the scenario analysis (pp. 84–85). High emissions scenario: flood risk sensitivity for the Brisbane office in particular, heat waves affecting labor productivity and business interruption in warehouses (power loss or blackout), and higher insurance premiums. Low emissions scenario: more abrupt and unpredictable changes in customer behavior. All scenarios: early engagement to support decarbonization of the value chain.

Value chain (p. 59). Risks and opportunities were identified with reference to key stages and relationships across the value chain: suppliers and materials, subcontractors, own operations, customers, end markets and operating geographies.

Where concentrated (pp. 61–64). Printed against each item: energy price volatility, Transport and Energy & Utilities; lower emissions technology investment risk, Transport (asphalt and fleet); extreme weather, Transport; increased customer spending on infrastructure, Transport. No concentration is printed for supporting customer decarbonisation and energy transition efforts, where the highest growth is anticipated in the facilities sector (p. 65). Unless noted, items apply across all sectors and geographies (p. 60).

Effects (pp. 61–68). Energy price volatility may increase operating costs and affect margins where costs cannot be fully recovered through contracts, including potential carbon price pass-through from suppliers (p. 61). Extreme weather may disrupt operations, delay project delivery and increase repair and remediation costs; FY26 revenue was lost mainly through lower asphalt production and road surfacing (p. 63). Downer's view is that its strategy and business model are resilient and not expected to change materially across the scenarios, with opportunities expected to provide growth primarily within Energy & Utilities (p. 68).

Physical hazards (p. 35). The network of sites is spread across Australia and New Zealand in regions with varying climate exposure. A gradual increase in the frequency and severity of acute hazards (bushfire, cyclone, flood, hail, storm) and chronic shifts such as higher mean temperatures is expected to affect property, inventory and equipment and increase pressure on cooling and refrigeration. Over the medium and long term this is anticipated to mean a moderate uplift in repairs, maintenance, energy and insurance costs, with potential occasional limited revenue impacts where extended site closures arise. The greatest aggregate exposure is across the store and hotel network. Distribution centers remain operationally important, but no individual sites were identified as disproportionately exposed relative to broader operations.

Energy market volatility (p. 36). Electricity is a significant input across retail, hotel, distribution, production and corporate operations, so exposure is broadly distributed, not concentrated in any business activity or location. Wholesale volatility has the potential to influence procurement costs over the short and medium term; exposure to spot price volatility is expected to progressively reduce.

Carbon tax (p. 38). Exposure arises through direct emissions and supplier cost pass-throughs across operations and is not concentrated in a particular site or business activity.

Business model (p. 85). The business model comprises two interconnected businesses: the production and sale of iron ore and future-facing minerals, and the development of energy and industrial decarbonization solutions, both supported by integrated infrastructure, technology, supply chain and customer capabilities.

Where risks are concentrated (pp. 74 to 78). Physical risks are most relevant to the Pilbara iron ore operations and export value chain, where the majority of assets and operational activities are located; the risk is operational disruption, with potential impacts on mining, processing, rail and port operations (p. 74). Transition risks are most relevant to the cost, competitiveness and market positioning of the same operations (p. 75). Substantially all revenue comes from selling and shipping iron ore through that value chain: US$16.7bn of operating sales revenue (98%) (pp. 76, 78).

Current and anticipated effects (pp. 76 to 80). Events that affect the ability to ship iron ore are expected to have the most significant financial impact, through reduced sales volumes and revenue (p. 76). Market exposure may affect price realization, margins, market access and competitiveness (p. 78). Industrial decarbonization technologies and expertise may generate new revenue streams (p. 79). Critical minerals opportunities could diversify the business model, broaden the value chain and add operating sales revenue streams (p. 80).

Value chain

In line with AASB S2 and TNFD, we describe our value chain across the real-estate lifecycle. Upstream, we work with capital providers and key suppliers of materials, equipment, technology and essential services. In operations, we partner with facility and property managers and onsite service providers to run safe, efficient and customer-centric buildings. Downstream, we serve tenants, retailers, fund investors and joint-venture partners, and contribute to communities and governments through jobs, improving public spaces and delivering amenity.

Key climate-related risks and opportunities arise in development and operations, so we use design, procurement, leasing and day-to-day management practices to assist to reduce emissions, strengthen resilience and protect long-term asset quality and returns.

Concentration of risks and opportunities

GPT assesses climate-related risks and opportunities across our business model and value chain. We consider the climate hazards and transition drivers to identify where risks and opportunities are concentrated.

Most of GPT's assets are concentrated in and near major Australian cities with relatively strong socio-economic capacity to adapt to climate change, reducing the risk of stranded or devalued assets. However, physical risk exposures can vary, for example, flooding is most material to GPT's assets in Brisbane and in Western Sydney, storms present an acute risk across all regions, and heat stress and extreme temperatures are the most widespread chronic risk.

Appendix A: Concentration of physical climate change-related exposures by region

Figure 4 (portfolio map) shows GPT's investment portfolio assets by region (Retail, Office, Logistics) with associated potential physical climate change-related exposures (heat, storm, wind, flood) across regions including Greater Brisbane, Greater Sydney, Greater Melbourne, Greater Newcastle, Adelaide, Perth, Canberra and Townsville (data as at 31 December 2025).

Business model (pp. 61–62). Three operating segments: Property (ownership, development and management of large-format retail complexes), Company-Operated Retail (company-operated retail trading in seven (7) overseas markets under the Harvey Norman® brand name, and other non-franchised retail in Australia) and Franchising Operations. Independent franchisees form part of the value chain but not of the consolidated entity for financial reporting purposes.

Value chain (pp. 61–62). Company-operated retail: supplier selection and purchase orders, transport, warehousing and distribution, store and distribution center operations, fulfillment through physical and digital channels, marketing, customer engagement and aftersales services. A property lifecycle (planning, development, leasing, facilities management, redevelopment) runs alongside.

Where effects arise (pp. 63–67). Each risk and opportunity names its operating segments and value chain stage. Property exposure to extreme weather is "greatest across Australian operations" and in parts of Malaysia; Singapore, New Zealand and the UK/EU are assessed as lower. Current impacts are "localised and immaterial at a group level". Anticipated effects include lost retail and rental income, repair and insurance costs, freight and sourcing costs, energy and carbon costs (carbon taxes apply directly in Ireland and Slovenia) and building upgrade costs. The greatest uptake of energy-efficient products is in Singapore.

The values disclosed in Iluka's climate-related risk and opportunity assessment represent the number of sites impacted by the risk or aligned with the opportunity out of all Iluka's sites (five in total – Cataby, Jacinth-Ambrosia, Balranald, Eneabba and Narngulu).

Value chain concentration of each identified risk/opportunity:

Iluka considered the potential impact of climate-related risks and opportunities across its value chain, including in relation to existing customer markets, operations at its current mining and processing locations (including suppliers of critical infrastructure such as roads, port facilities and transport logistics between its operating and mining sites), and on projects that are currently in execution (i.e. the Eneabba refinery and Balranald mine).

For physical risks, the assessment boundary included inland road logistics and domestic port facilities for transport of heavy mineral concentrate from mining operations to processing facilities and outbound ports from which finished goods inventory is shipped.

Business model (p. 38). Key elements embedded in the business model: underwriting procedures including risk-based pricing, supported by climate-risk modeling capabilities and historical claims data; reinsurance arrangements as part of the capital platform; regional scale and geographic and product diversification; claims management experience; and climate-risk advocacy. The majority of revenue is derived from portfolios which actively measure, price and accept transfer of peril risk to physical assets.

Effects (pp. 38–39). Climate changes are impacting the severity, frequency and geographical distribution of weather events, leading to increasing peril claims and reinsurance costs. The current business model is expected to remain effective in managing climate-related risks in the scenarios and timeframes considered, apart from the Hot House Scenario in the long term to 2050. Potential effects: pressure on premium pricing from higher input costs, a reduction in the addressable insurance market, earnings impact from reduced ability of some customers to pay the full risk price or from inability to fully price for risks, and impacts of government imposed product constraints.

Concentration (pp. 38–39). Property insurance portfolios in acute natural peril zones (floodplains, bushfire hazard zones); product and pricing; claims management and fulfillment; capital management; and, for government intervention, regulatory management and corporate affairs.

Business model (p. 58). The Group has three brands (JB Hi-Fi, The Good Guys and e&s) selling consumer electronics, telecommunications, home appliances and software. Its competitive advantages are scale and diversification across a large supplier base and geographically diverse store network, a low-cost operating model, multichannel capability, and people and culture. Structure and value chain: pp. 17–18.

Operations (pp. 60–61). Severe weather may disrupt or damage stores, warehouses and last-mile delivery. In FY2026 less than 0.02% of total trading hours were disrupted. The Group does not expect impacts to be pervasive, given diversification across all states of Australia and New Zealand. 38 locations (5.4% of total assets) are predisposed to higher risk, concentrated on the eastern seaboard (flood-prone coastal Queensland and New South Wales) and the cyclone-exposed far north.

Value chain (pp. 61–64). Goods for resale are sourced from over 35 countries, with trade supply approximately 42% China, Hong Kong and Taiwan, 25% Southeast Asia and 17% Europe. Typhoons in China, Hong Kong, Taiwan and Southeast Asia could disrupt manufacturing, logistics and shipping. The Group buys inventory in-country, so suppliers bear the risks and costs of bringing it into Australia and New Zealand (p. 62). Carbon regulation may raise suppliers' operating costs and so the cost of goods (p. 63). Severe weather can raise demand for home appliances and technology products (p. 64).

Where concentrated (pp. 77–84). Each climate-related risk and opportunity (CRRO) lists its concentration by business and geography: PR1 Investments, Development; PR2 Development, Construction; TR1 Investments, in Sydney, NSW and Melbourne, Vic; TR2 Development, Construction, in Australia; TR3 Investments, Development, Construction; TO1 Investments, Development.

Effects on the business and its value chain.

• Property assets (PR1, p. 77): physical risks have potential to influence asset integrity and operational continuity, which contribute to long-term asset value.
• Construction (PR2, p. 79): acute weather risks have potential to influence project delivery schedules.
• Investors and tenants (TR1, p. 80): expectations for all-electric assets will increase, and existing fossil fuel dependent commercial assets may be exposed to increased vacancy rates and lower investor demand.
• Supply chain (TR2, p. 81): decarbonization of carbon-intensive sectors is underway, and market dynamics are creating a two-tier pricing structure, with green premiums for low embodied carbon materials and rising compliance costs for traditional materials.
• Costs (TR3, p. 83): demand for low-carbon materials and investment in electrification and high-performance building systems could increase development and construction costs.
• Capital (TO1, p. 84): investors increasingly place a premium on assets that demonstrate physical resilience and ability to perform in a low-carbon economy.

Operations and value chain (pp. 56–57). Australia's leading wholesaler and service provider to independent businesses nation-wide, with Food, Liquor, and Hardware and Tools segments. Upstream: more than 5,500 suppliers and a network of third-party logistics providers. Own operations: approximately 290 operationally controlled sites. Downstream: approximately 105,000 customers and 6,300 bannered stores.

Effects and concentration (pp. 62–64).

• Damage to facilities and equipment: could cause damage and destruction of property, plant and equipment, product shortages and delays, the inability to service customers and injury to staff; exposure is higher in locations more susceptible to natural hazards, with flooding a key risk. No material effect in the current year; not expected to change materially in the short to medium-term, though it may increase over the longer-term.
• Outbound supply chain: concentrated in transport routes passing through, and facilities located in, flood-prone areas; may cause delays in servicing retailers and Metcash's own stores, temporary store closures and increased operational costs and complexity.
• Energy and fuel costs: may increase operating costs across operations and the broader value chain (electricity and refrigerant in distribution centers, warehouses and stores; transport fuel) and affect margins where costs cannot be fully passed through.
• Climate resilience opportunity: present upstream, in own operations and downstream.

Mirvac describes an integrated platform spanning the full property lifecycle (p. 75): Develop (create new assets), Build (deliver assets), Own (hold assets) and Manage (maximize asset values). Climate considerations are listed for each stage, for example physical risk assessments in site selection and feasibility (Develop), supply chain engagement on lower-carbon materials (Build), adaptation planning through strategic asset planning cycles (Own) and 100% renewable electricity for the managed portfolio (Manage).

CRROs are not expected to change the business model but are expected to influence strategy, asset performance and customer outcomes over time (p. 77).

Where CRROs sit, by business activity (pp. 80–86):

• Customer preference opportunity: investment portfolio and residential products.
• Sustainable materials cost: development, and asset upgrades in investments.
• Carbon offsets cost: whole of business.
• Regulations: investments (NABERS, Green Star, WELL Building Standard) and development.
• Physical risk to assets: investments (flood, storm, hail, bushfire) and development.
• Physical risk to people: development (outdoor work); investments limited, as costs are mostly recoverable from tenants.
• Supply chain disruption: development.

Business model (pages 106–107). The Group operates primarily in the global seaborne thermal coal market. Its principal operating assets are the Bengalla Mine in Muswellbrook, New South Wales and New Acland Mine in Acland, Queensland, with logistics operations at the Queensland Bulk Handling coal export terminal in Brisbane. The two open-cut thermal mines combined produce approximately 11 to 13 million tonnes of saleable coal annually, with international customers taking 90 to 93 percent and domestic customers 7 to 10 percent. International customers are primarily in Asian countries, including Japan, Taiwan and China.

Current and anticipated effects (page 107). The Group assessed that transition risks and opportunities have not resulted in any material current or anticipated effects to its business model or value chain, or financial performance or position, for the reporting period. Its value chain is exposed to extreme weather events affecting mining operations, rail and port logistics, with no material financial impacts experienced in the period.

Where concentrated (pages 114, 118). Bengalla Mine, New Acland Mine and Queensland Bulk Handling are all exposed to transition and physical risks, representing 100% of revenue. Bengalla Mine is more vulnerable to emissions regulation because it is subject to the Safeguard Mechanism; New Acland Mine is not currently subject to the scheme.

Business model (p. 73). NEXTDC is a leading Asia Pacific data center operator, designing, building, owning and operating mission-critical digital infrastructure across Australia and Malaysia, with new developments underway in New Zealand and Japan.

Where CRROs are concentrated (p. 73). A value chain map tags each step with the CRROs concentrated there.

• Upstream: capital equipment and technology (CRR3); electricity generation and transmission (CRR3, CRR4); land, planning and construction (CRR1, CRR3, CRO1); water supply (CRR2, CRR3); fuel and logistics (CRR1, CRR3); specialist suppliers and contractors (CRR3, CRR4).
• Operations: energy use (CRR3, CRR4, CRO1); resilience and physical security (CRR1, CRO1); refrigerants and cooling (CRR2, CRR3, CRO1); water use (CRR2, CRO1); diesel backup generation (CRR1, CRR3); waste and resource management, operational control and emissions management (CRR4, CRO1).
• Downstream: customer IT equipment and digital services enabled (CRR4); colocation and data hall services (CRR4, CRO1); connectivity and interconnection, and critical services and communities (CRR1, CRR4).

Geography and effects (pp. 76–78). Under higher-emissions conditions, Darwin (D1) and Newman (NE1) show comparatively higher inherent exposure to acute hazards, and Port Hedland (PH1) to water stress. The FY26 assessment found the overarching business model remains resilient (p. 76); effects of each CRRO are on pp. 77–81.

Value chain

The downstream value chain, which includes the use of Nickel in production/manufacturing, is outside of the Group's ownership, however this has been considered with respect to the Group's climate risks and opportunities.

Concentrations of risks Nickel Industries' risks have been found to be within two core areas: firstly, within the core asset base which largely exists within Indonesia and includes RKEF and HPAL refineries, as well as the mining site. This contributes to likelihood of exposures within physical risks such as temperature, rainfall and sea level increases, which have the potential to hinder local operations and place sustained pressures on community and worker safety.

Secondly, due to the concentration of the buyer market within China, there are significant value chain risks from both physical and transition risk perspectives. This includes increased adverse weather impacting buyer ports, impacting the value chain, with potential to decrease demand from increased transport risks. There are also secondary transition risks for on-selling of products such as batteries to western markets. Regulations such as battery passports or cross border adjustment mechanisms in the EU factor in emissions intensities in the production process which, if implemented, could reduce demand from the Group's products.

The physical impacts of climate change, together with the global shift toward a net-zero emissions economy, are expected to influence different parts of the Group's business and value chain in varying ways. The Group has undertaken an initial assessment to identify and evaluate the current and potential impacts of climate-related risks and opportunities across its business model and value chain, highlighting specific components of the business where these risks and opportunities are most concentrated.

Amount of assets vulnerable (concentration by asset type):

Business model and value chain (p.184). Origin describes itself as an integrated energy company operating mainly in Australia across electricity generation, energy retail and integrated gas, with thermal generation, renewables and storage assets, a large retail customer base, an equity interest in Australia Pacific LNG (upstream gas production to LNG export) and investments in Octopus Energy and Kraken Technologies. It refers readers to the Operating and Financial Review for the business model (pp.160, 184).

Where items sit (p.160). A diagram maps each item to value chain areas. Energy Markets: fuel supply, transportation, generation and trading, networks, customer solutions. Australia Pacific LNG: exploration and appraisal, drilling and gathering, processing and transport, domestic customers, liquefaction and export customers. Octopus Energy: customer solutions. No material risks or opportunities apply to Kraken Technologies. Physical risks are aggregated across generation assets, key transmission and distribution networks, Integrated Gas production and Australia Pacific LNG gathering and transmission (p.170). Under the High Emissions pathway the most exposed parts are upstream gas production in Queensland and generation across the NEM (p.176).

Effects by business (p.172). Australia Pacific LNG is labeled most exposed, Generation transitioning, and Retail and Origin Zero, and Octopus Energy and Kraken Technologies, growth potential.

Physical risk - Business Model and Value Chain effects

Lending portfolio and customers: The Group expects extreme weather events to have minimal impact on its Australian Residential Mortgages portfolio and the Asset Finance portfolio, and its customers in the short to medium term. Concentration risk is minimal due to the geographic dispersion of customers and asset locations. More material impacts are expected in the long term, specifically the impacts to downstream customers if climate events become more severe and the rate of occurrence increases. Assets subject to high risk climate factor exposures have a higher risk of damage from acute physical events which, depending on the appropriate level of insurance coverage, can have an impact on the borrowers' ability to repay their loan, giving rise to probability of default and loss given default. This can impact the Group's ability to recover the debt outstanding on the security on the loan.

Business Model: Pepper Money expects that the impact of physical risks will be insignificant on the Business Model – earning income through the provisioning of lending and servicing activities – in the short to medium term but expects changes to credit assessment policies and portfolio monitoring in the long term to minimise the impact of physical risks.

Operating offices: Physical risks have less impact on the Group's business operations as the geographical locations of the Group's offices are less susceptible to acute physical risks resulting in severe damage. Pepper Money has adequately reduced the disruption to operations through the development and implementation of its business continuity plan ("BCP") that enable and support employees to conduct business operations remotely, as part of the work from home option.

The Group's operating locations include: Australia; New Zealand; The Philippines. In CY2025, the Philippines office was subject to three typhoon events and the impact was minimal. These events did not cause major disruptions to Pepper Money's operations as a result of business resilience measures including activation of the BCP for the Manila office, work from home directions and emergency guidance, 'work from home' assessments and ergonomic set-ups, real-time updates through corporate communications channels, and check-ins with affected employees including allowances for compassionate leave and flexible work schedules.

Transition risk - Business Model and Value Chain effects

Changes in consumer preferences toward more sustainable housing or assets, including increased adoption of EVs, are not expected to materially affect Pepper Money's ability to provide financing. The Group anticipates continuing to support lending activity across asset classes that evolve in line with consumer demand. Based on information available in the current reporting period and across the relevant time horizons, there is insufficient evidence to indicate that the carrying value of security properties or existing internal combustion engine ("ICE") vehicle collateral will be significantly affected by shifts in consumer preference.

As market expectations and climate policies evolve toward a lower carbon economy, certain industries may be more susceptible to transition related risks. Management considers that these risks are most likely to affect the Group's downstream borrowers through potential impacts on the industries in which they are employed or operate, which may in turn influence their borrowing capacity and ability to meet repayment obligations.

To assess this exposure, Pepper Money has analysed borrowers' employment industries using Australia and New Zealand Standard Industrial Classification ("ANZSIC") codes to identify the proportion of borrowers operating within sectors considered vulnerable to transition risk. As at 31 December 2025, the proportion of borrower's employment industry deemed vulnerable to transition risk:

The rate of transition to a lower carbon economy, including potential changes to carbon pricing, may influence inflationary pressures and, consequently, cash rate settings across the short, medium and long term. These macro-economic impacts may reasonably be expected to affect Pepper Money's Business Model and Value Chain, including the Group's capacity to generate new originations in a higher cash rate environment, the Net interest income earned on lending assets, increased Corporate interest expense, and inflation-driven cost pressures on Operating expense.

Where risks and opportunities are concentrated

Australian Commercial Real Estate and New Zealand Mortgages are 7% and 4% (total 11%) of Total Mortgages Lending AUM at December 2025 and deemed not to be material in this assessment. The Group's primary financial exposure continues to arise from its lending activities and the credit performance of borrowers, rather than from the underlying security asset type, particularly in vehicle financing.

Business model and value chain (pp. 7–8). Principal activities are international and domestic air transportation, freight services and a frequent flyer loyalty program; customers are transported using two brands, Qantas and Jetstar. The value chain runs from upstream suppliers (aircraft and parts, fuel including Sustainable Aviation Fuel (SAF), goods for distribution) through direct operations to downstream customers (destination tourism, loyalty, investments). Most emissions come from flying-related operations.

Effects (pp. 11–17). The Group says climate change has affected, and will continue to affect, its business model and value chain. Physical risks may disrupt schedules, restrict payload, raise maintenance and insurance costs, and damage third-party airport infrastructure and supply chains (pp. 12–13). Transition risks may raise SAF and carbon credit costs, delay access to lower-emission aircraft and fuels, and influence customer preferences, procurement decisions and investment appetite (pp. 15–17).

Concentration (pp. 11, 14). Physical impacts appear concentrated in northern and tropical Australia and tropical Asia; flooding is the most significant modeled hazard; domestic operations show the greatest modeled exposure. 60% of the net book value of total assets is vulnerable to physical risks, mostly aircraft and aircraft parts. Aviation is a hard-to-abate sector facing increasing carbon regulation, technological advancements and stakeholder scrutiny.

Physical risk - business model and value chain impact

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, noting that modelled outcomes are subject to significant uncertainty. Following the exit of underperforming property portfolios and recalibration of retained property lines, QBE has experienced catastrophe losses at or below its established allowances in recent years.

Other product lines that may be exposed to physical climate risks were not considered to be vulnerable where structural features such as coverage design or regulatory protections exist to limit susceptibility to volatility from these events, or where historical claims experience indicates that such events are not a primary driver of financial performance. This includes North America Crop, where the predominant product structure provides revenue protection to farmers. Claims are primarily triggered by declines in revenue which may result from either lower crop yields or lower commodity prices, and market forces of supply and demand typically act as a stabilising mechanism between these two variables. The program is also subject to federal reinsurance arrangements that significantly limit QBE's net exposure to impacts from catastrophic weather events.

Transition risk (underwriting) - business model and value chain impact

Policy, legal, technology and market changes associated with the transition to a lower-carbon economy can alter cost structures and demand patterns across industries. These shifts may influence the risk profile and volume of insured activities and, in turn, affect premium volumes and claims experience. The Group's Marine, Energy & Aviation product class is most significantly exposed to sectors considered to be at high risk from the transition to a lower-carbon economy, and accounts for $1,758 million or 7% of the Group's gross written premium in the current year. This assessment was informed by business subject matter expertise, supplemented by sectoral analysis to the extent data was available. Judgement was applied in attributing premium to sectors and in determining which exposures were considered to be at higher risk of disruption from the transition to a lower-carbon economy, with further work planned to enhance the reliability and completeness of sectoral data.

Transition risk (investment) - business model and value chain impact

Transition-driven developments and evolving consumer preferences may adversely affect investment performance if they materially disrupt the business models of investees. QBE's analysis of the investment portfolio indicates that the Group's investment assets are not materially exposed to high transition risk, with limited overall exposure to transition-sensitive sectors. The investment classes that may be most impacted are:

• Infrastructure assets, comprising $1,426 million or 4% of total investments at 31 December 2025, which are expected to have the highest relative exposures to transition-sensitive sectors such as transportation and fossil fuel-linked infrastructure; and
• Developed market and emerging market equity investments which are passively invested through broad market index exchange-traded funds and amount to $856 million or less than 3% of total investments.

However, no material impacts are expected given the diversified composition of QBE's portfolio as well as ongoing mitigation measures, which support the overall resilience of the portfolio.

Opportunities - business model and value chain impact

Investments in climate solutions: QBE invests in climate solutions as part of its broader investment strategy to support the transition to a lower-carbon economy and deliver on its climate-related commitments. QBE's selection of climate solution investments is subject to the same return and risk appetite criteria applied across its broader investment portfolio.

Growth opportunities: Policy and technology shifts associated with the transition to a lower-carbon economy are expected to increase demand for insurance solutions that enable the deployment and operation of transition technologies (including renewables, battery storage, hydrogen and carbon capture). This creates opportunities to broaden product offerings, adapt and scale existing products, deepen risk-engineering capability and expand underwriting capacity in these segments.

Effects on business model and value chain

Although climate change presents clear growth opportunities for our commodities, it also presents physical and transition risks to our portfolio. The transition to a low-carbon economy impacts the commodities we produce and how they are processed in our value chains – particularly for carbon-intensive steel and aluminium. Carbon pricing mechanisms currently apply to parts of our operations and to some of our customers. If climate policy ambition increases globally, this may affect our operational costs, market dynamics and technology development.

Our CAP is designed to address material climate-related risks and opportunities identified across a range of scenarios and time horizons. It integrates actions to mitigate transition risks such as stricter carbon regulations, uneven climate policies and social licence to operate, and to capture opportunities from the growing demand for materials essential to the global energy transition.

We have assessed the resilience of our portfolio under multiple transition scenarios aligned with 1.5°C, 2.1–2.3°C, and 2.5°C outcomes. These assessments consider factors such as emission intensity relative to industry peers, regional exposure to climate regulations, and product suitability for downstream decarbonisation. Our economic performance is stronger in Conviction than in Resilience, where there is higher GDP growth and a faster low-carbon transition. In Aspirational Leadership, higher carbon penalties and potential impacts on demand for mid- and lower-grade iron ore result in mixed performance for iron ore, but stronger demand for other metals than in Conviction.

We regularly review our portfolio to ensure alignment with strategic priorities and climate objectives. This includes divesting assets that do not meet return criteria or strategic priorities, as evidenced by the currently ongoing strategic review of businesses from our former Minerals product group.

Concentration of risks and opportunities

Approximately 77% of our Scope 1 and 2 emissions originate from our Aluminium & Lithium business which is highly energy-intensive. Our single largest lever to meet our 2030 target of a 50% reduction is repowering our Boyne and Tomago aluminium smelters in our Pacific Aluminium Operations portfolio, which together account for one quarter of our emissions and are critical to our decarbonisation pathway.

This is relevant for projects in the Pilbara and Simandou, where community and investor scrutiny is high. Meeting decarbonisation and sustainability expectations is important, as delays or restrictions could lead to increased project costs, slower delivery of growth volumes, or – in extreme cases – project cancellation.

Coastal sites in eastern Australia, New Zealand and Western Australia (Pilbara ports) are classified as high risk under physical climate scenarios by 2050. The damages in the Pilbara are significant for the ports, but the mines and inland sites which represent the majority of asset values are relatively safe from climate damage.

All of our inventory and PPE ($91.6 billion), which together account for 72% of our total assets, are exposed to some degree of unmitigated physical climate-related risk.

Most of our aluminium value chain product (over 85% of our 135.2 Mt CO₂e Scope 3 emissions) is processed in China, where coal-fired refining and smelting are prevalent. The majority of our Scope 3 emissions (95%) stem from our customers processing our products, particularly iron ore (69%) and bauxite and alumina (23%), concentrated in China (80% of Scope 3 emissions) and countries such as South Korea and Japan (approximately 20%).

The risk tables (pages 72-84) each contain a 'Summary of impact to business model and value chain' for every identified transition and physical risk/opportunity, describing where in the business model and value chain the risk or opportunity is concentrated, for example:

• Transition risk 1 (Climate policy): affects the Australian domestic gas business and GLNG, including ability to develop future growth projects and meet supply commitments.
• Transition risk 7 (Reduced demand for products): affects Santos' oil, gas, LNG and related products sold under short, medium and long-term contracts.
• Transition risk 8 (Transition technologies not scalable): concentrated in the Midstream and Energy Solutions business unit, our decarbonisation business, with CCS hubs located in Western Australia, Northern Australia and Moomba.
• Physical risk 1 (Flooding in the Cooper Basin): concentrated in Cooper Basin operations, including wider infrastructure such as third-party roads and pipelines that could impact supply chain and transport of product to point of sale.

Each risk/opportunity also includes a 'Relevant metrics' section identifying the specific assets or business activities where the risk/opportunity is concentrated, e.g. '$2,539 million Exploration and evaluation assets (11 per cent)' for policy risk; '$2,034 million assets (9 per cent)' for Cooper Basin flooding, being the portion of Cooper Basin's oil and gas assets and decarbonisation assets as a percentage of total oil and gas assets and decarbonisation assets; '$4,833 million assets (22 per cent)' for transition technologies, being the portion of WA and QLD & NSW oil and gas assets as a percentage of total oil and gas assets.

The portfolio resilience section notes: 'Key to our resilience is our unique combination of low-cost, long life natural gas and liquids assets, CCS capability, potential low carbon fuels supply and nature-based solutions project optionality.'

The Santos' portfolio map (page 93) illustrates the future change in climate exposure across operated and non-operated assets under SSP5-8.5 by 2050 by region: Northern Australia and Timor-Leste, Western Australia, Cooper Basin, Queensland and New South Wales, Alaska, and Papua New Guinea, each with region-specific climate hazards.

Business model description

The Group owns and operates 42 Westfield destinations in Australia and New Zealand. Westfield destinations are uniquely located in close proximity to where 21 million people live and work. They are considered essential social infrastructure and are located on major transport hubs and close to existing and planned infrastructure.

The portfolio connects 3,700 diverse businesses, encompassing 12,000 outlets, to Westfield customers. As a vertically integrated owner, operator, manager and developer, the Group has the capabilities and expertise to design, construct, operate, manage, lease and market the platform of Westfield destinations.

The impacts of climate-related risks and opportunities (CRROs) are spread across the supply chain. The Group takes a whole-of-business approach to considering, managing and mitigating these risks and opportunities. Consideration of CRROs is embedded into planning and decision-making processes, and mitigation and management measures are integrated into operations with relevant subject matter experts employed within relevant operational and support functions.

Concentration

The Group's geographical diversity assists the Group's ability to withstand regionally concentrated factors such as extreme weather. Should a climate event occur, there may be potential impacts to the Group's operations.

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. Some of the Group's destinations are vulnerable to rainfall, hailstorms and flooding, and some are vulnerable to bushfires.

Business model (p. 160). Pathology/clinical laboratory services in Australia, New Zealand, the United Kingdom, the United States of America, Germany, Switzerland, Belgium, Poland and Liechtenstein; in Australia also diagnostic imaging, occupational health, general practice medical centers and skin cancer clinics.

Value chain (pp. 161–162). Upstream: procurement of medical supplies and equipment. Core operations: sample collection, testing and diagnostics. Downstream: delivery of results to healthcare providers and patients, and waste treatment and disposal by external providers.

Where risks and opportunities arise (p. 163). Physical infrastructure and sites (thousands of sites; parts of the network exposed to extreme weather), logistics and transport, suppliers and procurement (global suppliers of specialized reagents, equipment and utilities), customers, and communities and environment.

Concentration. Upstream scope 3 emissions account for approximately 80% of Sonic's current emissions footprint, concentrating carbon pricing risk in the supply chain (p. 173). The largest potential physical impacts arise at a small number of facilities (p. 169); scenario analysis did not identify a material concentration of physical climate risk by geography or service line (p. 183).

Effects. For Risk 2, climate events are not expected to materially affect the business model, growth drivers or long-term strategy (p. 171).

The Group is a leading Australian producer and exporter of high-quality metallurgical coal used in steelmaking. The Group's operations are located in Queensland's Bowen Basin, with an operating portfolio of three open-cut mines, including South Walker Creek (SWC), Poitrel (PTM), and the Isaac Plains Complex (IPC).

The Group is engaged in the full value chain of coal production, from exploration and development through to processing, logistics, and export. Coal from the Group's operations is transported via established rail infrastructure to the Dalrymple Bay Coal Terminal (DBCT) and Abbot Point Export Terminal (NQXT) for export to key international steel markets across Asia and Europe.

Value chain stages: Exploration and Development (geological exploration to determine and identify valuable deposits); Planning and Development (engineering and construction of the mines); Extraction and Mining (extracting minerals with appropriate tools); Coal Processing (processing raw materials); Inventory (managing inventory and quality levels); Distribution (moving coal to port); Marketing and Sales (delivering materials to the customer for use); Rehabilitation (progressive rehabilitation and mine closure planning).

Concentration - Product Mix and Customer Base

Product Mix (2025, by revenue): Coking 70%, PCI 26%, Thermal 4%. Customer Mix (2025, by tonnes): Japan/Korea/Taiwan 39%, India 17%, Southeast Asia 6%, Europe 26%, Other 12%.

Risks and opportunities affect coal mining, CHPP operations, fuel use and power use across the IPC, SWC, and PTM facilities. Elements of the broader value chain, including rail infrastructure used for product transport and port facilities used for export, are geographically situated in areas that can experience flooding or weather-related access constraints. These components are outside the direct operational control of the Group and represent potential points of interruption to operational movement during periods of heavy rainfall or adverse weather conditions.

For CR3, effect on value chain: this risk affects the Group's business model and value chain by potentially delaying the advancement of key projects, deferring production schedules, and increasing project development costs. Such delays could also hinder the Group's ability to respond to market demand in a timely manner, resulting in foregone revenue opportunities and reduced competitiveness.

Business model and value chain (p. 180). Two operating segments: Development (communities and commercial properties and their infrastructure) and Investment Management (income-generating assets, investments and capital partnering arrangements). Upstream: utilities providers, materials suppliers, transport providers, construction companies, subcontractors, government and sources of capital. Downstream: residential and commercial tenants, home buyers, retail customers, investors, securityholders and capital partners.

Where risks are concentrated. Physical risk is relevant to all assets at varying degrees of likelihood and severity. Share of assets with high or very high inherent exposure in the short term (p. 192): flood stress 6%, drought stress 19%, water scarcity 56%, fire stress 11%, heat stress 8%, cyclone 10%, wind 12%; cyclone exposure is limited to assets in North Queensland and parts of South East Queensland. Transition exposure is concentrated in the pace of electricity grid decarbonization and in emissions-intensive manufacturing sectors supporting operations (p. 193). The circularity opportunity is concentrated in the development pipeline and, to an extent, operating assets (p. 194).

Effects (pp. 192–194). Described qualitatively, risk by risk, for example higher insurance and operating costs and project delays (physical) and premiums on lower-carbon materials, technologies and utilities (demand).

Physical risk to claims (p. 26). Changes in the frequency and severity of weather events may increase natural hazard claims costs and affect insurance risk and reinsurance outcomes, flowing through to pricing and customer affordability. Peril exposure is primarily severe storms, bushfires, tropical cyclones and flooding along the Eastern Seaboard of Australia, predominately affecting property-related insurance products.

Concentration (p. 28). Insurance exposure is heavily concentrated in property classes: home with $4.3 billion of Gross Written Premium (GWP), 28.1% of overall GWP, and motor with $6.6 billion, 42.5% (Compulsory Third Party excluded). In FY26 there were 18 declared natural hazard events and more than 120,000 natural hazard claims, which can create surge demand across the claims network. Uptake of solar panels and electric vehicles adds capacity pressure because repairs need training, specialized equipment and parts.

Other effects (pp. 29–32). Severe weather may affect the pricing and availability of reinsurance and capital (p. 29). Higher home insurance premiums and affordability concerns may lead to further government intervention, affecting the operating environment, cost base, underwriting, pricing models and capital requirements (p. 30). Disaster management capability supports management of claims costs and post-event demand (p. 31). The transition is expected to raise demand for insurance solutions for transition-related assets (p. 32).

Index (p. 215): Climate strategy, p. 186 (no separate business model line).

Dependency (p. 188). All of the climate-related risks and opportunities have a relationship with and dependency on the value chain. Connectivity services depend on the reliable operation of Telstra's infrastructure and that of its value chain, including above ground assets such as fixed network sites and mobile towers and more than 250,000km of buried fiber optic cable, which are predominantly reliant on the mains electricity network. A diagram (pp. 188–189) maps risk drivers and impacts across the value chain.

Concentration (pp. 184–185, 190). Climate-related risk exposure is concentrated in the electricity distribution network; three of the risks are influenced by the electricity sector. Analysis suggests that between 21–27 percent (5,036–6,511) of Australian above ground assets will be exposed to one or more physical climate hazards (excluding storms) over the short to medium term (now to 2030), and 28–32 percent (6,666–7,582) could be exposed over the long term (2030–2050), depending on the scenario. There were around 28 mass disruption events triggered by acute climate events in FY26.

Other exposures (p. 196). Digicel Pacific (three percent of Telstra Group revenue in FY26), Telstra International (138 locations across 18 countries) and the device and network equipment supply chain are noted for information and not considered financially significant to Telstra Group.

The Group has considered the potential effects of climate-related risks and opportunities throughout its value chain and business model, across all operations delivered in Australia and New Zealand. The Group's value chain and business model includes its upstream supply chain of subcontractors, suppliers and distribution together with its downstream customers and investors.

Effects on business model, value chain, strategy and decision-making, by risk/opportunity

Disruption risk from acute and chronic climate events (Physical Risk): As an essential services provider, the Group is expected to deliver reliably under adverse conditions, including from those linked to acute and chronic climate events. Therefore, consideration of climate resilience in decision-making remains essential to achieving the Group's strategic goal of operational excellence, delivery of services to our customers and ultimate ability for the Group to generate appropriate returns.

Transitioning in step with climate policies and market expectations (Transition Risk): The Group's strategy sets out its growth ambitions, with a focus on sectors and services expected to remain resilient and essential in a lower-carbon, climate-changed future, such as energy networks and renewables. In maintaining alignment with increasing customer requirements, the Group's climate transition plan incorporates science-based targets validated by the Science Based Targets initiative (SBTi) for emissions reduction by 2030. Climate-related risk and opportunity considerations have been incorporated into the Group's strategic activity filter.

Supply chain disruption (Physical and Transition Risk): Supply chain resilience is integral to the Group's ability to deliver on its strategy and contracts. To facilitate this resilience, the Group has a central supply chain team that focuses on standardising procurement, leveraging scale, and embedding risk considerations, including climate-related risks.

Supporting energy transition build-out, operations and maintenance (Opportunity): The Group's corporate strategy identifies energy and renewables services as a core growth pillar. As part of its 2025–2030 growth ambition, the Group is investing in delivery capacity through targeted hiring, partnerships and capital allocation, including building skills in transmission and distributed energy and expanding business development capability.

Supporting our customers in decarbonisation, climate adaptation and response to extreme weather events (Opportunity): As an essential service provider, helping customers transition and adapt to climate change is central to growing the Group's core service offerings. This opportunity aligns with the Group's strategy to deepen customer relationships by expanding the value-added services it provides.

Concentration of risks and opportunities

Under the Group's resilience assessment, the following service offerings reported under the Infrastructure Services operating segment are most affected by the identified climate-related risks and opportunities over 2026–2030: transitioning in step with climate policies and market expectations (Transition Risk); and supporting energy transition build-out, operations and maintenance (Opportunity).

In 2025, energy and renewables services contributed $387.4 million or 6% of the Group's revenue as compared to the contribution from fossil fuel-related services of $321.5 million or 5%.

Business model and value chain

We source crude oil (domestic and international) for domestic refining, and refined products from international refineries. We refine crude oil into usable products – including petrol, diesel, jet fuel and specialty products. We transport refined product to bulk storage fuel terminals by pipe or ship. Terminals are typically located near major metropolitan, industrial and mining centres (closer to end customers). We sell bulk fuel products directly to commercial customers. Fuel and convenience items are sold to retail customers through a nation-wide network of retail & convenience sites. The value chain stages are: 1. Procurement/Supply, 2. Domestic Refining, 3. Primary Distribution, 4. Storage, 5. Secondary Distribution, 6. Fuels Marketing, spanning the Energy & Infrastructure, Commercial & Industrial and Convenience & Mobility business units.

Concentration of climate-related risks and opportunities in the business model and value chain

For the transition risk relating to government regulations that impose an additional cost of carbon, the value chain and business line(s) affected are: Direct Operations for Energy & Infrastructure business (Geelong Refinery).

For the transition risk relating to a reduction in demand for hydrocarbon fuel products, the value chain and business line(s) affected are: Downstream for all business lines.

For the transition opportunity relating to increased demand for low-carbon liquid fuels (LCLFs), the value chain and business line(s) affected are: Downstream for Commercial & Industrial.

With around 90% of the Group's Scope 1 and 2 emissions originating from the Geelong Refinery, the refinery is central to the Group's decarbonisation strategy and to its long-term contribution to Australia's energy transition. The Geelong Refinery is also the Group's largest source of GHG emissions, accounting for 98% of the Group's Scope 1 emissions in 2025, and is most likely to be exposed to changing government policy.

Our risk assessment indicates that 100% of the Group's assets and business activities are vulnerable to climate-related risks and aligned with climate-related opportunities in some way, with climate-related impacts applying across the entirety of the business rather than being confined to a discrete subset of activities or assets.

Where CRROs are concentrated (pp. 60, 79). In energy-intensive managed operations and industrial processes and in assets exposed to chronic and acute weather events, extending upstream and downstream; value chain physical exposure sits in raw materials and logistics nodes in exposed regions.

By risk (pp. 64–73).

• Extreme heat: retail store and distribution center network and WesCEF's industrial operations; heat already affects some raw-material sourcing across Asia.
• Flooding: retail stores, distribution centers and logistics infrastructure; suppliers in flood-prone regions of Asia.
• Storm surge and cyclones: coastal assets and upstream ports and logistics, including the Kwinana port.
• Carbon pricing: WesCEF's CSBP facility (82.2% of Group Scope 1 emissions); indirect exposure through suppliers in Asia, mainly for Bunnings Group and Kmart Group.
• Covalent Lithium: within WesCEF, in the battery materials supply chain.

Current effects. No material effects were identified for the four risks in the reporting period. A storm-related partial roof collapse at Target's Richlands distribution center in October 2025 stopped operations, constraining distribution capacity in the Christmas peak, with lost revenue and rerouting costs; not material at Group level (p. 68). Anticipated (pp. 65–73). Heat and flooding exposure continues; storm surge, cyclone and indirect carbon pricing exposure rises over the medium to long term.

Operations and value chain (page 57). Whitehaven operates two coal mines in Queensland and four in New South Wales (including one underground mine), in the Bowen Basin and the Gunnedah Basin, together with the Gunnedah Coal Handling Preparation Plant. The value chain spans development, operation, rehabilitation and closure of coal mining assets, upstream products and services such as diesel, explosives and tires, and the marketing, transportation and distribution of coal to the port. Products are sold on free-on-board terms.

Where climate-related risks and opportunities (CRROs) are concentrated (pages 67, 69). CRROs exist across the entire value chain, from upstream operations to mining, processing and transporting coal to the port. Physical climate-related risks are concentrated at sites in the Bowen Basin and the Gunnedah Basin. The Blackwater, Daunia, Narrabri and Maules Creek mines have obligations under the Safeguard Mechanism and represent 92% of Scope 1 emissions (page 69).

Effects (pages 69–74). Tables 2 to 7 set out the value chain impact and the impact to the business model of each risk and the opportunity, mostly across both upstream and downstream activities; project approvals mainly relate to upstream activities. For FY26 the report states no material impacts from project approvals, reduced demand and physical risks, no material adverse impacts from access to capital, and no material financial benefits from the opportunity (pages 70–74).

Business model and value chain (p. 210). WiseTech is a software solutions provider and is not directly involved in the manufacture or physical transportation of goods. Upstream it relies on third-party data center infrastructure, including co-location facilities and public cloud services; downstream, a Global Partner Network assists customers.

Where effects are concentrated (pp. 214–215). Physical hazards are most relevant to data centers, which are critical assets, predominantly third-party co-location sites; no offices are considered critical. While 100% of data center IT assets may be exposed, impact on business activity is considered immaterial, and data center consolidation after the e2open acquisition is expected to reduce risk further (p. 214). Rising electricity prices are likely to increase co-location providers' cost pass-through and direct costs for on-premises data centers, and grid instability carries an inherent exposure of transaction-related revenue streams at approximately 30–50% of Group revenue (p. 215).

Effects through customers (pp. 215–216). Carbon pricing may increase costs within high-emitting segments of the global supply chain industry in WiseTech's customer base; approximately 30–50% of Group revenue is derived from volume-based customer activity, not fully correlated to external trade conditions. The opportunity affects the business model through development of features such as shipment-level emissions quantification (p. 216).

Value chain

Woodside's global portfolio includes oil, gas and new energy assets across Australia, the US, Trinidad and Tobago, Senegal, Mexico, Timor-Leste and Canada. Woodside has also considered the impact of climate and the energy transition and assessed the financial impact of its material climate-related risks and opportunities across Woodside's value chain (upstream and downstream).

Concentration of risks and opportunities by value chain component

Extreme weather intensification (physical risk): has the potential to primarily impact the Project execution, Operate and Marketing, trading and shipping components of our value chain. In the long term, more frequent or severe metocean events could lead to higher operating or maintenance costs, increased downtime, and/or additional costs of insurance. An increase in extreme heat days could affect labour force productivity and cause supply chain disruptions.

Reputation (transition risk): has the potential to impact the Acquire, Divest, Explore and Develop, Operate and Project execution components of our value chain. Relationships with important stakeholders could be impacted making it more difficult to secure regulatory consents, financing, or human resources.

Climate litigation (transition risk): misleading or deceptive conduct claims have the potential to impact various components of Woodside's value chain. Challenges to regulatory approvals which may result in project delays could impact the Project execution and Operate components of Woodside's value chain including operating expenses, and could also impact the timing of revenue. Climate attribution cases ordinarily arise with respect to oil and gas projects, and have the potential to impact various components of our value chain.

Higher than expected cost to reduce emissions at operations (transition risk): has the potential to primarily impact the Project execution and Operate components of our value chain.

Lower than expected product demand (transition risk): has the potential to have impacts across the Operate, Marketing, trading and shipping components of Woodside's value chain.

Increased demand for LNG (transition opportunity): has the potential to impact the Acquire, Divest, Explore and Develop, Project execution, Operate and Marketing, trading and shipping components of Woodside's value chain.

Increased demand for new energy products and lower-carbon services (transition opportunity): has the potential to impact the Acquire, Divest, Explore and Develop, Project execution, Operate and Marketing, trading and shipping components (new energy and lower-carbon services) of Woodside's value chain.

Lower than expected decarbonisation costs (transition opportunity): has the potential to impact the Project execution and Operate components of Woodside's value chain.

Value chain (pp. 50–51). The Group describes itself as Australia and New Zealand's largest retailer, with value linked to climate resilience across its value chain. Upstream: product sourcing, agricultural food production and manufacturing from over 14,500 direct suppliers, contributing to Scope 3 emissions. Own operations: 1,311 supermarkets and 24 distribution centers across Australia and New Zealand. Downstream: customer product use and household waste from an average of 26.1 million customer transactions each week, also contributing to Scope 3 emissions.

Effects on the business model and value chain (p. 51). Scenario modeling indicates a low financial impact from physical events such as flooding and cyclone on direct assets and major transport routes, attributed to the geographically diverse footprint and site-level resilience investment. The sourcing network and product range are described as a natural hedge against supply chain physical risk. Transition risks, such as policy-driven carbon costs on direct and supply chain emissions, present more material financial risks.

Where risks are concentrated. The majority of climate-related risks arise in the supply chain (p. 60). Scope 3 is 97% of end-to-end supply chain emissions, the largest sources being agriculture, energy and transport (p. 68). 6% of sites meet the threshold for exposure to a high-impact flood event, which could rise to 8% (approximately 150 sites) by 2050 under a >3°C scenario (p. 66).

Business model (p. 41). Worley says CRROs influence demand for its services, the way it delivers projects and the resilience of its strategy. It provides consulting, engineering, procurement and construction across a diversified portfolio of sectors, geographies and delivery models.

Effects by CRRO (pp. 42–45).

• CRRO 1: continued revenue growth in market segments that support the energy transition, in geographies with favorable policies such as Australia, Europe, Latin America, Asia and Africa.
• CRRO 2: policy uncertainty in North America is slowing revenue growth in lower carbon hydrogen, carbon removal and renewable fuels; portfolio diversity has turned the risk into an opportunity in the short and medium term.
• CRRO 3: extreme weather could disrupt operations, damage fabrication yards (in Canada, Norway, the United Kingdom and the United States) and interrupt supply of materials and equipment; on-site construction is delivered globally.
• CRRO 4: sustained temperature and rainfall changes may affect people and project execution, more in construction services than fabrication yards, and disrupt suppliers and infrastructure such as power and water.

Where concentrated (pp. 42–45). Revenue aligned with CRRO 1: $8,316m (69%). Revenue vulnerable to CRRO 2: $4,657m (39%); to CRRO 3: $5,422m (45%), in prioritized locations in the United States, Canada, Australia or India; to CRRO 4: $4,926m (41%), in the United States and Morocco.

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.

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.