a low-carbon and climate-resilient economy. It is vital that we align to global ESG commitments and frameworks given TNB’s role as Malaysia’s primary power utility. Failure to do so will impede our business growth in addition to eroding market confidence in TNB to be a utility that is able to provide sustainable energy solutions. This will adversely impact investors’ confidence, stakeholder’s trust and company reputation. Regulatory 3. Unfavourable energy transition & climate change policies & regulations Energy Transition regulatory risks pose significant challenges for power utilities. The shift towards renewable energy sources and decarbonisation initiatives may require costly infrastructure upgrades and technology investments. Evolving regulations can impact revenue streams and profitability, especially if incentives or subsidies change. Stricter emissions standards might necessitate the retirement of existing assets or imposepenalties for non-compliance. Additionally, uncertainties in policy direction may hinder long-term planning and investments. Failure to address these risks adequately can undermine TNB’s competitiveness and financial stability. 4. Unfavourable Electricity Supply Industry (ESI) regulatory implementation and outcome Globally, the electricity supply industry is highly regulated. Government regulations and policies control various aspects, including approving generation capacity and mix, setting limits for investment and operation costs of electricity networks, and determining electricity prices. Uncertainty surrounding future regulations may hinder long-term planning and investment decisions whilst non-compliance with regulations can result in penalties and reputational damage. Inability to shape and manage the outcome of these regulation and policies governing the Malaysian ESI would be key impediment impacting TNB ability to deliver its business aspiration. 5. Regulatory Uncertainty Due to the nature of our business, we are susceptible to the decisions by regulatory stakeholders at the