efforts in addressing climate change scenarios and exposures through our Reimagining TNB strategy and TNB Energy Transition Plan We identify and set climate-related quantitative targets and monitor related metrics to ensure the realisation of the Net Zero by 2050 aspiration Risk Management Strategy Governance STRATEGY Our priority is to ensure that our business is resilient in addressing climate exposures in our business strategy with continuous assessment to adapt to transition and physical risks and opportunities in the short-, medium- and long-term. Scenario Description Expected global temperature increase by 2100 Risk exposure to TNB Business Physical Transition IPCC’s RCP 8.5/4°C (high emission scenario) The ‘Business as usual’ scenario suggests a likely outcome if society does not make concerted efforts to cut greenhouse gas emissions. >4°C High High IPCC’s RCP 6.0/3°C(moderate emission scenario) The scenario suggests a future in which greenhouse gas emissions continue to rise at a moderate rate but stabilised at in 2070. 2.6°C Moderate Moderate NGFS’ Nationally Determined Contributions (NDCs) scenario The NDC scenario includes all pledged policies, even if not yet implemented, based on the trajectory associated with global NDC commitments to limit the impact of climate change. 2-3°C Moderate Moderate RISK MANAGEMENT We adopt the TNB Risk Management Framework to assess and mitigate transition and physical risks and opportunities across TNB business entities integrated into day-to-day operations. For more information on sustainability governance, please refer to pages 58-59 of the Sustainability Statement. Refer to the SORMIC report page 184-191. GOVERNANCE The TNB Sustainability Governance Structure governs climate-related matters. Climate Resiliency In reference to the Representative Concentrating Pathways (RCP) scenarios from the Intergovernmental Panel on Climate Change (IPCC) and scenarios proposed by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), the following