38 SECTION 04 : CORPORATE GOVERNANCE CLIMATE CHANGE Why it is important Climate change and evolving transition-related developments may affect ENRA’s operations, project execution, operating costs and business activities over time, including through weather-related disruptions, changes in energy and fuel costs, evolving regulatory requirements, and changing customer and market expectations. The Group also recognises that evolving sustainability-related requirements and market conditions may create business opportunities where relevant. Our Approach Governance and Risk Management Climate-related matters are overseen as part of the Group’s broader sustainability governance and risk management processes. The Board and ARMSC maintain oversight of material sustainability-related risks and opportunities, including climate-related matters that may affect the Group’s operations, projects and long-term business resilience. Climate-related considerations are assessed alongside operational, financial and project-related risks, particularly where weather conditions, evolving regulations, fuel costs or broader market developments may affect operational performance, project delivery or customer demand across the Group’s business segments. The Group intends to progressively strengthen its climate-related risk assessment and disclosures over time, including enhancing its use of climate scenario analysis and improving the linkage between climate-related risks, opportunities and potential financial effects, where relevant and appropriate. Understanding Physical Climate Risks Physical climate risks may affect the Group’s offshore marine operations, project execution activities and development projects through changing weather patterns, rising temperatures and more frequent extreme weather events. These risks may result in operational disruptions, project delays, increased maintenance requirements, higher operating costs and safety concerns across the Group’s business segments. To support climate-related risk awareness, ENRA has begun referencing higher-emissions climate scenarios (e.g. SSP5–8.5) as part of its ongoing assessment of potential physical climate risks and their implications for operations over the short, medium and long term. Risk Type Risk Description Potential Financial Impact Management / Adaptation Measures Energy Logistics – Acute Physical Risk Rough sea conditions, storms, flooding and severe weather events may disrupt offshore marine operations, vessel deployment and the execution of offshore infrastructure projects, including storage tanker and CALM system activities. Adverse operating conditions may also increase wear and tear on marine assets and offshore infrastructure over time. • Reduced vessel utilisation or off-hire periods • Higher maintenance and repair costs • Increased insurance costs • Maintaining inspections, preventive maintenance programmes and class certification requirements for key marine assets and offshore systems • Monitoring asset condition and operational performance • Maintaining insurance coverage for marine assets and operations, where appropriate • Coordinating with charterers and service providers on operational readiness and response measures Energy Logistics – Chronic Physical Risk Rising temperatures, changing sea conditions and prolonged exposure to harsher offshore operating environments may affect equipment reliability, offshore infrastructure integrity and maintenance requirements over time. • Higher operating and lifecycle maintenance costs • Reduced asset efficiency or economic life • Increased capital expenditure requirements over time • Applying preventive maintenance and inspection practices to support asset reliability and integrity • Monitoring maintenance trends and operational performance throughout deployment periods Sustainability Statement (Cont’d)
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