259994 Phoenix Energy Responsible Business Report 2025.pdf

Responsible Business Report 2025

The Board of Directors is responsible for governing, directing and monitoring Phoenix’s operations, including our sustainability performance. The Board, in combination with the Executive Management Team (EMT), are responsible for ensuring that ESG issues, including climate change and climate change mitigation, are appropriately considered when reviewing company strategy, risk management policies and setting annual budgets. The Board also ensures systems are in place to enable EMT to meet its legal, regulatory and other obligations and ensure that business risks are managed appropriately. The Board provides the ultimate approval of sustainability and climate-related strategy, targets and performance. The ESG Committee is responsible for supporting the Board in fulfilling its duties and responsibilities. This involves overseeing the company’s ESG Strategy, endorsing ESG targets and commitments, maintaining the effectiveness of policies, procedures and objectives and assessing ESG performance. The ESG Committee reports to the Board on sustainability and climate related issues, including the management of climate related risks and opportunities. The EMT is responsible for ensuring the business has clear direction, objectives and resources in relation to sustainability and climate risk matters. The EMT also provide the ESG Committee and Board with regular updates on Phoenix’s ESG priorities, commitments, and performance. In addition, there is regular engagement on energy transition risks and opportunities, associated stakeholder engagement and communication strategy to position Phoenix as part of the decarbonisation solution. The Responsible Business Group is chaired by the Director of Business Services and is responsible for leading on the delivery of Phoenix’s ESG Strategy. This includes the development and delivery of sustainability programmes and initiatives, recommendation of ESG Targets, monitoring of performance in relation to ESG matters, including materiality assessments, the publication of the annual Responsible Business Report and tracking performance against set targets. Phoenix’s risk management framework includes the performance of climate change workshops to both identify, monitor and manage climate change risks and opportunities for Phoenix. The Management Team actively participate in climate change workshops (“Risk & Opportunities” and “Scenario Analysis” workshops). The outputs of the workshops are utilised to populate risk registers which are managed through the risk management groups and internal control systems.

Phoenix maintain three relevant risk registers: • Net Zero & Climate Change Risks & Opportunities Register; • Operational Risk Register; and • Corporate Risk Register.

The Net Zero & Climate Change Risks & Opportunities Register and the Corporate Risk Register are reviewed in detail at least annually by the Executive Management Team. The more significant climate-related risks are included within the Corporate Risk Register and managed through the group’s risk management and internal control systems which includes a full review by the Board on at least an annual basis. The Operational Risk Register details risks identified that could impact on the ongoing safe management and operation of the Distribution Network (including physical risks that could impact our network). The Operational Risk Register is reviewed on at least an annual basis and is managed by the Network Performance Group.

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