259994 Phoenix Energy Responsible Business Report 2025.pdf

Climate Action Targets We have set ambitious climate action goals with science-based targets for our own operations (Scope 1 & 2 emissions). 2XU RZQ RSHUDWLRQV WDUJHWV DUH DOLJQHG ZLWK WKH 3DULV $JUHHPHQWɖV DVSLUDWLRQ WR OLPLW JOREDO ZDUPLQJ WR ˑ& DQG demonstrate our leadership in Climate Action. We strive to reduce our environmental footprint by seeking opportunities for increased efficiency and resource conservation.

Targets include: • (OLPLQDWLQJ DOO HPLVVLRQV H[FHSW IRU ɕUHVLGXDO HPLVVLRQVɖȐ E\

• Reducing our scope 1 & 2 carbon emissions by >60% (excluding shrinkage) by 2030; • Reducing our scope 1 & 2 carbon emissions by >90% (excluding shrinkage) by 2035; • Reducing the energy consumed from our operations by: • >50% by 2030 (excluding shrinkage); and • >75% by 2040 (excluding shrinkage). • 5HGXFLQJ 6FRSH HPLVVLRQV E\ ! E\ ȑ • 5HGXFLQJ 6FRSH HPLVVLRQV E\ ! E\ ȑ • Eliminating all air pollution emissions from Sulphur Dioxide (SO x ) and Particulate Matters (PM 2-5 & PM 10 ) by 2035; • Eliminating all but residual emissions for Nitrous Oxide (NO x ) by 2048; • %H 1HW =HUR LQFOXGLQJ VKULQNDJH E\ Ȓ • Transitioning our entire commercial fleet to green fuels by 2035; • Engaging with our supply chain to further improve the quantification of our Scope 3 indirect emissions associated with purchased goods and services; • Partnering with The Conservation Volunteers to plant 8,000 native trees each year until 2031 • Introduction of 20% green gas (hydrogen / biogas blended) into the Phoenix Distribution Network by 2030 ; • Facilitate the distribution of biomethane in the Phoenix network by 2025 4 ; • Facilitate the distribution of hydrogen in the Phoenix network by 2027 5 ; • Procurement of 100% of electricity required for our operations from renewable sources by 2030; • Reducing the volume of waste sent to landfill as a consequence of our operations by over 75% by 2030; and • Commitment to investigating improvement measures to reduce the volume of water consumed as consequence of our operations and to consider means for water re-cycling / re-use (e.g. rain water capture).

In 2023, Phoenix in conjunction with the other NI Gas Network Operators, issued several decarbonisation commitments including:

• By 2030 1.5TWh of Biomethane will be injected into the NI Gas Network annually; and • By 2028 the gas network in NI will meet all relevant technical and regulatory standards to accept both hydrogen blend imports and locally produced hydrogen injection. An important part of Phoenix’s strategy to support the net zero transition is to measure and report performance against stretching carbon targets. Phoenix will report annual progress against these targets and Phoenix reviewed and refined its targets in 2025 according to the latest scientific evidence. Phoenix will review the targets again by 2030 to ensure they remain in line with the latest scientific evidence.

1 Residual emissions are GHG Emissions that are emitted after all reasonable efforts have been made to reduce GHG Emissions. In Phoenix’s case these will relate to the continued distribution of biomethane. 2 Targeted reductions in scope 3 emissions are compared to a base year of 2022 rather than 2019, as emissions associated to hotel stays and purchased goods and services were not captured until 2022. 3 It is anticipated that Phoenix will be required to offset residual emissions. 4 Current intelligence suggests distribution of Biomethane in the Phoenix Network is now expected in 2026. 5 Current intelligence suggests distribution of Hydrogen in the Phoenix Network is now expected in 2028.

66