CO2 MITIGATION ACTIONS AND OPPORTUNITIES IMPLEMENTATION DEVELOP CLIMATE CHANGE POLICY AND RELATED DOCUMENTS Announced climate change policy since 2010 and planned to review in 2025. Corporate Scope 3 estimation guidelines will be published by the end of 2025. IMPLEMENT INTERNAL CARBON PRICING Internal carbon pricing (ICP) has been integrated into our new business evaluations to promote low-carbon investments and shape our strategy and financial planning. Our ICP, which serves as a shadow price, covers emissions from Scope 1 and 2. For countr ies or operat ions wi thout established carbon pricing regulations or taxes, we have set prices at $2 per ton of CO2e for emerging economies and developing countries, and $15 per ton of CO2e for advanced economies. This ICP is applied to all business decision-making processes. ESTABLISH TARGET AND ITS ROADMAP FOR ACHIEVEMENT Net Zero Target by 2050 and the reduction of at least 20% from 2023 by 2030 has been announced. Monitoring progress will be conducted annually on a quarterly basis. EXPAND AND INTRODUCE NEW OPPORTUNITIES FOR GREENER BUSINESS Investments are focused on advancing technologies to support the transition to Net Zero society across 5 key areas to support the evolving energy landscape. 1. Energy trading platforms and energy storage projects 2. Solar solutions 3. Smartcitiesandenergymanagement systems (EMS) 4. The vertically integrated battery business 5. E-mobility projects IDENTIFY, MANAGE, AND MONITOR RISKS AND OPPORTUNITIES REGULARLY Risk and opportunity assessment and monitoring have been integrated into C o r p o r a t e E n t e r p r i s e R i s k Management which will be reviewed on a quarterly basis. RESEARCH ON EMERGING TECHNOLOGIES AND MITIGATION MEASURE Ongoingresearch intonewtechnologies aimed at reducing greenhouse gas emissions and improving carbon removal both within and beyond the company. Driver & Impact Metrics used to manage climate-related risks and opportunities Risk rating Energy Resources Energy Generation Energy Technology ST MT LT ST MT LT ST MT LT Drought Drought can have significant impacts on operations due to its effects on water availability, operational costs, and safety considerations. Several key areas where these effects are felt include water supply, dust management, supply chain disruptions, environmental concerns, and community relations. • Water consumption reduction • Water stress area assessment L LM H LM LM LM L L L Heavy Precipitation Heavy precipitation can significantly impact operations in variousways including infrastructure damage, water management chal lenges, production disruption, and product transportation disruption. • Water consumption reduction • Water stress area assessment LM MH MH L L L L LM MH Wildfire Wildfire can significantly impact operations in various ways including safety risk, infrastructure damage, and production disruption. • Coverage of Crisis Management Team (CMT)/Incident Management Team (IMT) exercise L LM MH L L L L L L 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 PHYSICAL RISK Mining Activity, Indonesia Climate Change Report 2024 Climate Change Report 2024 22 23 Introduction Governance Strategy Risk Management Metrics & Targets Looking Ahead
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