innovation, reaching net zero CO2 emissions around 2050. 1.5-2°C Low Low SUSTAINABILITY STATEMENT Sec 3 109 Transition opportunities in the energy industry abound as we embark towards a low-carbon economy. Type No Transition Opportunity Short/Medium/ Long Term* Potential Impact Management Approach Resource Efficiency 1 Energy management at supply and demand side Opportunities to reduce resources required to generate electricity and required energy efficiency solutions Short term Cost Optimise asset performance and efficiency through technology and innovation Repowering of power plants using cleaner green technology Collaboration with the Energy Commission (EC) on the Malaysia Energy Literacy Programme Refer to MM3 (Climate Change and Emission) on pages 72-76. Type No Transition Risk Short/Medium/ Long Term* Potential Impact Management Approach Market 6 Changes in the electricity supply industry Changes in the MalaysianElectricity Supply Industry (MESI) such as policy, regulatory requirements and market demands, in line with the transition to a low-carbon economy Medium term Market Share Active engagement with regulatory bodies to shape an equitable energy market Explore new opportunities in the energy market such as beyond kWh solutions 7 Shift In Customer Behaviour Changing customer behaviour and preference for low-carbon options Short term Revenue Active engagement with customers to anticipate and meet expectations leveraging digitalisation Collaborate with regulators and stakeholders to enhance the rakyat’s energy literacy 8 Stranded Asset & Divestment Unanticipated or premature write- down, devaluation and divestment of carbon-intensive assets Medium term Asset Implement a decarbonisation strategy per the TNB Energy Transition Plan, such as repowering generators using green technology and early retirement of coal power plants Committed to no new coal power plants Reputation 9 Adverse perception of TNB brand & image Increased stakeholders’ expectations and scrutiny of our ESG strategy, management, and