259994 Phoenix Energy Responsible Business Report 2025.pdf

Quantitative Scenario Analysis To further understand the financial impact that climate change risks (physical and transitional) and opportunities could have on our business, we have undertaken additional detailed quantitative climate change scenario analysis using our in-house scenario analysis model. The quantitative analysis undertaken continued to utilise the NGFS reference scenarios, which include plausible pathways to net zero, and has built upon the qualitative analysis previously performed. The in-house scenario analysis model was utilised to assess the potential positive and negative implications of each climate change scenario on company valuation, the distribution price charged to consumers and business activities and spending (operating expenditure and capital expenditure). The quantitative scenario analysis modelling included consideration short (<10 years), medium (between 10 – 20 years) and long term (20 – 50 years) time horizons. The quantitative analysis demonstrated that Phoenix’s operations are resilient to, and have a key role to play in, all scenarios. Phoenix is well positioned to mitigate the risks associated with climate change and to avail of the significant opportunities that arise, most notably the potential role Phoenix can play in the decarbonisation of heating in Northern Ireland. Phoenix acknowledges the material risk to our business associated with climate change and the implementation of net zero carbon emissions. Climate related risks (physical and transitional) are managed through our embedded risk management framework and across our governance and reporting processes. Our approach ensures the identification, assessment and management of climate change risks to reduce the impact and likelihood and maximise opportunities. Phoenix utilise climate change workshops to identify and assess climate change risks and opportunities relevant to Phoenix’s operations. The workshops are attended by senior Phoenix personnel, including the Executive Management Team, and include the performance of a specific climate related risk assessment process to identify and assess relevant climate risks and opportunities under the climate change scenarios utilised for Phoenix’s qualitative and quantitative climate change scenarios analysis: 1. No Additional Policy Action – resulting in temperature rise greater than 2°C; 2. Late Policy Action (Disorderly) after a period of inaction, a sharp transition is needed, resulting in temperature rise of below 2°C; and 3. Early Policy Adoption/Steady Progress (Orderly ) – resulting in temperature rise of below 1.5°C. RISK MANAGEMENT

The outputs of the workshops are utilised to review and update the Net Zero & Climate Change Risks & Opportunities Register.

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