The table below outlines our approach and progress towards managing climate-related risks and opportunities, in alignment with the regulations of the TCFD. Pillars Climate-related disclosures for FY2024 Governance Describe the organisation’s governance around climate-related risks and opportunities. The Board is responsible for leading our ESG strategy with a focus on value creation, value protection and sustainability. Please refer to the ESG Governance section on page 7 for further details. Describe management’s role in assessing and managing climate-related risks and opportunities. The senior management manages climate risk and identifies potential opportunities through accountability linked to remuneration. We established sustainability metrics, including climate-related objectives, within `Key Responsibility Areas’ and linked them to executive remuneration via the balanced-scorecard methodology. Strategy Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term. In FY2024, our Sponsor has deployed an in-house CVaR platform, which uses the latest available climate data to identify exposure to climate risks across business operations over short- (2030), medium- (2050) and long-term (2070) time horizons and multiple climate scenarios. FHT will begin utilising this platform to identify and assess the extent of exposure of its assets to climate risks. Describe the impact of climaterelated risks and opportunities on the organisation’s businesses, strategy, and financial planning. These climate risk assessments include an analysis of both the financial impacts to our major operating revenue and costs items in the absence of any mitigation actions and the potential value of damage to our assets in the face of extreme weather events. During FY2024, we executed our decarbonisation roadmap which included tools to analyse our carbon emission better and will lead us towards achieving net-zero carbon emissions by 2050. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. Our Sponsor has initiated a group-wide readiness assessment of our practices as they relate to managing climate-related risk. Insights from the readiness assessment done on FHT have been used to develop a roadmap to align more closely with TCFD recommendations. Examples of actions within the roadmap include: • Integrating climate change risks and opportunities into strategic decision making • Providing annual training for business leaders • Undertaking climate risk assessments on the asset level, including an assessment against different and longer-term time horizons, both lowemissions and high-emissions scenarios, and an assessment of financial impacts and materiality of climate related risks and opportunities • Improving the quality of climate-related financial disclosures This roadmap, approved by the Board, enables us to methodically address and mitigate physical and transition risks that are key to our business. TASKFORCE FOR CLIMATE-RELATED DISCLOSURES APPENDIX ESG Report 2024 29
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