Phoenix Energy Responsible Business Report 2026

Time Horizons The following time horizons are utilised by Phoenix to consider and assess identified climate change risks and opportunities:

Climate Related Risks and Opportunities

)ROORZLQJ WKH FRPSOHWLRQ RI FOLPDWH UHODWHG ULVNV DQG RSSRUWXQLWLHV ZRUNVKRSV IDFLOLWDWHG E\ H[WHUQDO FOLPDWH FKDQJH H[SHUWV 3KRHQL[ GHYHORSHG RXU 1HW =HUR &OLPDWH &KDQJH 5LVNV 2SSRUWXQLWLHV 5HJLVWHU 7KH UHJLVWHU is reviewed and updated by EMT on a regular basis to maintain accuracy and mitigate any newly identified risks. Risks are categorised into two categories as outlined by the TCFD: 1. Transition risks – FUHDWHG E\ WKH ZRUOGɖV WUDQVLWLRQ WR D ORZ FDUERQ HFRQRP\ DV D UHVXOW RI FDUERQ SROLF\ changes; and 2. Physical risks – created from a changing climate. As part of our risk management activities, we have assessed our risks to identify those most adversely impacted by climate change. While the most significant are all transition risks, physical risks are also managed through our risk management framework.

• Short Term – <10 years; • Medium Term – from 10 – 20 years; and • Long Term – 20 – 50 years

When developing appropriate time horizons for assessing Climate Change risk and opportunities, consideration was given to:

• The useful life of Phoenix’s assets and infrastructure – some of which are depreciated over 40 years; • The length of Phoenix’s gas distribution licence (currently runs until 2046); and • The fact that climate related issues often manifest themselves over considerable time periods (for example energy transition of the gas network is likely to take decades rather than years). Potential financial impact Identified risks and opportunities were then assessed in terms of potential financial impact, including consideration of the potential impact on the Phoenix’s.

• Products and services; • Supply chain; • Adaptation and mitigation; • Investments and research and development;

• Operations; • Finance; and • Carbon footprint and energy use.

In line with Phoenix’s existing risk and internal control framework, risk and opportunities rating matrices provide the framework to rank each risk and opportunity by likelihood of impact and significance of potential financial impact. This helps to identify the importance and materiality of each material risk or opportunity to the business.

Opportunity Matrix

Risk Matrix

High (3)

High (3)

Medium (2)

Medium (2)

IMPACT

IMPACT

Low (1)

Low (1)

Remote (1) (<10%)

Remote (1) (<10%)

Possible (2) (10%-50%)

Possible (2) (10%-50%)

Likely (3) (>50%)

Likely (3) (>50%)

PROBABILITY

PROBABILITY

68

Responsible Business Report 2026