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 performanceShort term Share Price Implement TNB Sustainability Strategy and Energy Transition Plan Active engagement with stakeholders to address ESG needs and expectations * Short-Term: until 2025 | Medium-Term: 2025 to 2035 | Long-Term: 2035-2050. Refer to MM7 (Customer Experience and Satisfaction) on pages 87-89. Refer to MM2 (Energy Transition and Innovation) on pages 68-71. OUR RESPONSE TO CLIMATE CHANGE Refer to MM2 (Energy Transition and Innovation) on pages 68-71. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 110 OUR RESPONSE TO CLIMATE CHANGE Type No Transition Risk Short/Medium/ Long Term* Potential Impact Management Approach Energy Source 2 Renewable energy growth Opportunities to increase RE portfolio locally and internationally Short term Revenue Capture strong RE growth potential in domestic & international markets through subsidiaries, i.e., TNB Renewables, Spark Renewables and Vantage RE Adopt commercial capabilities in foreign markets to drive domestic RE growth Product and services 3 Demand for low-carbon electricity and green energy solutions Opportunities from increased demand for renewable