259994 Phoenix Energy Responsible Business Report 2025.pdf

STRATEGY Addressing the challenge of climate change and facilitating the transition to green energy is core to Phoenix’s strategy. Phoenix’s approach to help address climate change is centred on:

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Reducing the carbon impact of our business operations; and

Playing a key role in the UK’s transition to net zero

Due to the nature of our business and operations, we recognise the impact climate change could have on our operations and the importance of being transparent and proactive to identify, assess, and manage those risks and opportunities that directly impact our business.

Our Approach It is Phoenix’s ambition to be a net zero gas distribution network by 2050 or sooner. Phoenix has made a strong commitment to addressing climate-related risks and to accelerating the energy transition. Our long-term strategies include a defined governance structure on addressing climate-related risks and improving our disclosures to provide clear and reliable information to our stakeholders. The outputs from Phoenix’s net zero & climate change risks and opportunities processes serve as an input to Phoenix’s strategic and financial planning processes, including consideration of:

• Regulatory planning; • Revenues; • Operating costs; • Capital expenditures (including R&D); • Acquisitions / investments; • Impairment or assets / write downs; and • Access to capital (including green lending).

In 2022, Phoenix developed a Greenhouse Gas (‘GHG’) Emissions Reduction Plan (Scope 1 & Scope 2 carbon emissions) that outlined a realistic and attainable pathway for Phoenix to reach net zero. The Plan includes meaningful actions to reduce the impact of our operations on the environment and sets challenging targets that progress can be monitored against. In 2023, the GHG Emissions Reduction Plan was extended to include Scope 3 carbon emissions and now provides a realistic pathway for reaching net zero GHG emissions including Scope 3. Phoenix have elected not to set a carbon price. However, this is something that may be revisited in the future.

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