EnergyAustralia’s scenario analysis

In 2020, EnergyAustralia undertook a review of climate risks, by considering different policy and regulatory scenarios. In line with the CLP Group Risk Management process, EnergyAustralia has a robust risk management process in place. However, it was recognised that climate change could impact the entire EnergyAustralia business. Consequently, an in-depth assessment was conducted to supplement the standard risk management plan, and ongoing risk evaluation cadence.

The identified risks cover three areas:

• Transitional risks considering different levels of policy and regulatory changes and plausible market reactions to such changes.

• Physical risks impacting the operations across multiple commodities and the safety of on-site workers, with financial impacts felt across physical output and wholesale positions.

• The impacts of extreme weather events on customers who may be less able to pay their bills, and on the customer service teams.

The review was led by the EnergyAustralia executive team with participation from across the Company. Cross-functional workshops were also held with senior management participation. The results were endorsed by the Group's Executive Risk Management Committee.

The large battery at Gannawarra, underpinned by EnergyAustralia, is an example of the changing technologies shaping the energy system.