85 INTEGRATED ANNUAL REPORT 2026 Our Climate Report, published in 2024, consolidated our climate strategy and transition planning into a single integrated framework. Since then, we have continued to refine our approach in response to market and regulatory developments and stakeholder expectations. We aim to update our Climate Report in the second half of 2026 to reflect progress made and to ensure continued alignment with industry best practices. Climate-related risks and opportunities Climate-related risks and opportunities are integrated into our Enterprise Risk Management (“ERM”) framework through a structured process to identify, assess and monitor material climate considerations alongside broader business risks. Risk owners review and assess climate-related risks on a periodic basis as part of the Group’s ERM cycle, with updates captured in the risk register and escalated where required. Based on these reviews, proportionate and appropriate mitigation or response actions are identified, implemented, and tracked to ensure climate-related risks are managed effectively across relevant time horizons. We apply a double materiality approach, assessing both how climate change may impact our business and how our operations may impact the climate. This dual perspective supports a more comprehensive understanding of external climate-related risks and internal responsibilities, enhancing transparency and informing strategic decision-making. Climate-related scenario analysis We evaluate our business portfolio against a range of future climate scenarios, with outcomes integrated into our ERM Framework to inform risk responses. Scenario analysis evaluates both transition and physical climate pathways, drawing on sources such as the International Energy Agency’s (IEA) World Energy Outlook 2023 and the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report. Transition risks are assessed using the Stated Policies Scenario and the Net Zero Emissions (NZE) by 2050 scenario, while physical climate risks are evaluated using Representative Concentration Pathway (RCP) 8.5. Building on this foundation, we are progressing towards more granular modelling of physical climate impacts across our asset portfolio and enhancing scenario assumptions over time to address identified gaps and support strategic decision-making. SUSTAINABILITY REVIEW | BUILDING ENVIRONMENTAL AND CLIMATE RESILIENCE Risk category Risk driver Risk Opportunity Policy & Legal L S M Introduction and tightening of carbon pricing mechanisms (e.g. carbon tax, Emissions Trading System, fuel taxes). Rising carbon costs increase operating expenditure and compliance burden, adversely impacting margins. Early adoption of carbon-efficient technologies and internal carbon pricing to optimise capital allocation and manage exposure. Heightened regulatory pressure on fossil fuel assets and policy uncertainty for renewables. Diminishing new oil & gas project pipeline post-2030; heightened uncertainty for long-term asset investments. Portfolio diversification into renewables and green technologies to augment long-term resilience. Market L S M Shift in customer preferences towards low-carbon products and services. Weakening oil & gas products and services demand increases risk of reduced contract awards, non-renewals, cancellations and potential stranded assets, particularly beyond 2030. Leverage low-carbon solutions (e.g. low-emission FPSOs, CCS, FLNG) to remain competitive and capture demand for cleaner offshore production solutions. Technology L S M Rapid advancement of CCS, DAC, renewables, energy efficiency and storage technologies. Higher CAPEX to adopt new technologies and potential obsolescence of existing solutions. Leverage low-carbon and emerging technologies to create new business streams and sustain long-term competitiveness. Reputation L S M Increased scrutiny from investors, customers and the public. Heightened stakeholder scrutiny may lead to reputational, legal and operational risks from unmet climate goals or inaccurate disclosures. Enhanced stakeholder confidence through credible targets, transparent disclosures and externally assured reporting. S Short-term M Medium-term L Long-term
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