Result of Risk assessment Transition Risk Transition Opportunity Note: ST=short-term, MT=medium-term, LT=long-term Risk Opportunity High High Medium to High Medium to High Low to medium Low to medium Low Low Driver Impact Risk rating Energy Resources Energy Generation Energy Technology ST MT LT ST MT LT ST MT LT Carbon Pricing Mechanism Energy resources and Energy generation units are carbon-intent business. Carbon pricing/ carbon tax has been applied in different level depends on location. It can increase direct cost either internal manage GHGs emission or offsetting/tax paying the exceed GHGs emission from operation. - Stigmatization Fossil fuel-related business can be affected from negative perceptions and societal attitudes due to high GHGs emission. It can lead to decreased support for fossil fuel projects, regulatory challenges, difficulty in obtaining financing, and reputational damage for companies. - Driver Impact Risk rating Energy Resources Energy Generation Energy Technology ST MT LT ST MT LT ST MT LT Developing/ Expanding low carbon goods and services In the domain of low-emission goods and services, diverse opportunities abound. In mining, we focus on developing downstream production, deploying mitigation technologies to curb greenhouse gas (GHG) emissions, and serving as a decarbonization solution provider for our customers. Additionally, in our gas operations, we actively engage in emission monitoring and invest in carbon capture, utilization, and storage (CCUS) technology. Continuously enhancing our CCUS projects, we utilize their scalability to expand our gas portfolio and advance our journey towards net zero objectives. With an expanded array of low-emission offerings, we foresee increased revenue driven by heightened demand and augmented production capabilities. Participation in carbon market Participating in carbonmarkets offers businesses a dual advantage of reducing carbon footprint and generating revenue. These markets, based on cap-and-trade or carbon pricing, impose limits on allowable carbon emissions per jurisdiction or sector. Businesses must acquire carbon credits to comply. For instance, in China, our lower-than-quota GHG emissions enable us to sell our emission allowances within the China Emissions Trading System (ETS) market, seizing this opportunity provided by governmental regulations. - - - Climate Change Report 2023 24 Introduction Governance Strategy Risk Management Metrics & Targets Looking Ahead
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