CLIMATE CHANGE REPORT 2025 PATHWAY TO NET ZERO
RISK MANAGEMENT 26 GOVERNANCE 12 STRATEGY 16 METRICS AND TARGETS 32 04 02 03 05 INTRODUCTION 04 01 CONTENTS
MESSAGE FROM ESG COMMITTEE & CEO Mr. Piriya Khempon Chairman of the Environment, Social and Governance Committee Mr. Sinon Vongkusolkit Chief Executive Officer At Banpu, climate change is a strategic priority that requires strong governance, decisive action, and long-term commitment. The Board of Directors oversees the Company’s climate-related direction, ensuring that climate considerations are embedded into strategy, risk management, investment decisions, andbusiness operations. Through theESGCommittee, theBoardcloselymonitors progress, performance, and emerging climate-related risks and opportunities to strengthen resilience and accountability across the organization. Central to our approach is a firm commitment to achieving net zero emissions by 2050, supported by an interim target to reduce GHG emissions (Scope 1 and 2) by at least 20% by 2030 from our 2023 baseline. Equally important, we are committed to a Just Transition, ensuring that our pathway to a low-carbon future is inclusive, equitable, and considers the livelihoods and well-being of employees, communities, and all those affected by this transition. Addressing climate change requires collaboration across the value chain and beyond. On behalf of the ESG Committee, I extend my sincere appreciation to our employees, investors, customers, partners, communities, and all stakeholders for your continued trust and partnership. Together, we wi l l navigate this transition with determination, transparency, and shared purpose. Climate change remains one of the defining challenges of our time. At Banpu, we believe it must be addressed with urgency, discipline, and long-term commitment. In 2025, I am proud that we achieved our climate targets in both the mining and power businesses. This keeps us firmly on track toward our interim goal of reducing Scope 1 and 2 GHG emissions by at least 20% by 2030 and toward our longterm ambition of achieving net zero by 2050. Building on this progress, we announced our next annual climate targets for 2026–2030, setting ambitious goals aligned with global climate objectives and the Paris Agreement. To support delivery, we have embedded climate mitigation more deeply into our strategy through two practical tools: a Decarbonization Roadmap, which outlines strategic pathways through operational efficiency, renewable energy adoption, and technologies such as carbon capture and storage, and a Decarbonization Playbook that defines clear roles and responsibilities across business units to turn plans into action. Transparency remains fundamental to our approach.Wehave adopted IFRS S2 and strengthened our GHG accounting to ensure accuracy and reliability across operations. For added confidence, we have engageda thirdparty toprovide independent insights andsuggestions to enhance our decarbonization pathway. In addition, we have developed emissions outlook projections under multiple scenarios to better anticipate climate-related risks and opportunities. None of this progress happens alone. To our employees, partners, and stakeholders—thank you for your continued trust and support as we work to secure a sustainable climate for future generations. Climate Change Report 2025 Climate Change Report 2025 2 3 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
INTRODUCTION FROM TCFD TO IFRS S2 Part IFRS S2 Requirement Available in Banpu 2024 Climate Change Report Available in Banpu 2025 Climate Change Report Governance Related skills and training of Governance body Yes Yes Working & monitoring strategy, policy and process. Especially those relevant to climate-related risks & opportunities Yes Yes Whether and how related performance metrics are included in remuneration policies, for example climate-related KPI Yes Yes Strategy Identify industry-based physical and transitional risk Yes Yes Response/plan to respond to risk & opportunity Yes Yes New criteria for current financial effects Yes Yes New criteria for anticipated financial effects & financial planning Yes Yes Scenario analysis Yes Yes How & when scenario analysis is carried out Yes Yes Inputs & assumptions made No Yes Risk & Opportunity Management Use of climate scenario analysis to inform risk Yes Yes Risk prioritization and monitoring Yes Yes Identify, assess, prioritize opportunities Yes Yes Integrate opportunity into overall risk management Yes Yes Metrics & Targets Indicator link to SDGs Yes Yes Identify metric used to assess climate-related risks and opportunities Yes Yes Industry-based metrics Yes Yes Internal carbon price No Yes Target setting approach, review & monitor No Yes Data governance framework & assurance No Yes OVERVIEW: TCFD & IFRS S2 STATUS: No longer in used (since 1 Jan 2024) PURPOSE: • Encourage companies and financial institutions to disclose climate-related risks and opportunities in their financial filings • Voluntary requirement AUTHORITY: the Financial Stability Board (FSB) STATUS: In use to replace TCFD PURPOSE: • Encourage companies to disclose climate-related risks and opportunities • In effective from January 2024 • IFRS S2 is in used in accordance with IFRS S1* • CompulsoryVSVoluntarydependson local jurisdiction AUTHORITY: The International Sustainability Standards Board (ISSB) COUNTRY ADOPTION Plan to adopted • Australia - start 1 Jan 2025 (partially adopt) • China - plan to adopt nationwide by 2027 • Japan - plan to adopt within 31 March 2025 • U.S. - other jurisdictions with related disclosure standards * IFRS S1 - General Requirements for Disclosure of Sustainability-related Financial Information. Source: (S&P global, 2024) IFRS S2 TCFD Mui Dinh Wind Power Plant, Vietnam Climate Change Report 2025 5 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
VERSATILE ENERGY COMPANY Building a balanced portfolio for a sustainable energy transition. Mongolia China Laos Vietnam United States of America Thailand Indonesia Australia Japan TECHNOLOGY Transport (e-mobility), industry, buildings (e.g., heat pumps): accelerated electrification to meet Net Zero 2050 objective. ELECTRIFICATION Four-fifths of humanity in the developing world: rapid urbanization and economic growth. Power is the key ‘enabler’. DEMOGRAPHICS ENERGY SYMPHONICS A synchronized 2025–2030 strategy crafted to address the world’s Energy Balance EBITDA GROWTH >1.5x 2030 EBITDA >20% reduction Scope 1 and 2 GHG emissions by 2030 >50% EBITDA EBITDA from non-coal related business by 2030 GROWTH FOCUS 2030 capex allocation DECARBONIZATION POWER+ FUTURE TECH CORPORRATE U.S. CLOSED- LOOP GAS NEXT GEN MINING Reliability and resiliency of electricity supply essential for digital infrastructure and critical services (e.g., hospitals). Favors thermal power, nuclear and BESS. RELIABLE LCOE* of thermal power, solar and wind has advantages over alternatives, e.g., nuclear, green hydrogen. * Levelized Cost of Electricity AFFORDABLE Rapidly improving economics of carbon capture make gas a long-term option in conjunction with renewables, nuclear, etc. ECO-FRIENDLY NEXT-GEN MINING CVC Mining Robust and Responsible Miner POWER+ Thermal Power Renewable Unique Baseload Power Portfolio FUTURE TECH New S-Curve in Energy & Beyond Verticallyintegrated Battery Player E-mobility, Energy Management, etc. Quality Green Megawatts U.S . CLOSED-LOOP GAS Gas-Power-CCUS Integrated Decarbonized Gas Provider Solar Wind BESS Trading Surge in electricity demand for digital infrastructure, driven by AI-workload needs. Data center electricity demand 9X by 2050. Note : *Structure post-restructuring plan 2030ENERGY SYMPHONICS DECARBONIZATION NEXT-GEN MINING COAL MINING>STRATEGIC MINERALS> U.S. CLOSED-LOOP GAS GAS-POWER-CCUS> POWER+ UTILITY-SCALE ENERGY> FUTURE TECH TECHNOLOGY> CORPORATE VENTURE CAPITAL 2000s BASELOAD ENERGY 2010s TRANSITION ENERGY 2020s FUTURE ENERGY ENERGY RESOURCES Coal Mining Strategic Minerals CCUS Natural Gas Coal-Fired Power High Efficiency Low Emission Renewables Energy Technology Gas-Fired Power ENERGY GENERATION ENERGY TECH CO2 No New Investments in Coal and Coal-fired Power BESS+ BANPU 2030: ENERGY SYMPHONICS STRATEGY Banpu has unveiled its “Energy Symphonics” strategy, a synchronized roadmap designed to navigate the evolving global energy landscape. The strategy is shaped by 3 key external forces: the surge in AI-driven electricity demand, accelerated electrification toward Net Zero 2050, and rapid urbanization across developing economies. This framework reflects a strategic pivot toward a lowercarbon future, while preserving a critical balance between energy reliability and affordability. To advance its Strategic Decarbonization and Energy Transition, Banpu has set clear and measurable targets: • For Greenhouse Gas (GHG) Mitigation; by reducing Scope 1 and 2 emissions by more than 20% by 2030, underscoring a strong commitment to decarbonizing operational activities, and • Portfolio Transformation; by increasing the contribution of non-coal businesses to over 50% of total EBITDA by 2030, signaling a decisive shift toward lower-carbon and cleaner energy value chains. To deliver on these ambitions, Banpu focuses on three energy trilemmas: 1. RELIABILITY: Ensuring the reliability and resilience of electricity supply essential for digital infrastructure and critical services. 2. AFFORDABILITY: Maintaining a competitive levelized cost of electricity (LCOE) through a diversified energymix, including solar, wind, and highefficiency thermal power. 3. ECO-FRIENDLINESS: Leveraging the rapidly improving economics of carbon capture, utilization, and storage (CCUS) to position gas as a long-term solution alongside renewables and nuclear power. ENERGY SYMPHONICS: STRATEGIC VISION THE EVOLVING ENERGY BALANCE Banpu Group is a leading versatile energy company operating across 9 countries in the Pan Asia-Pacific. Guided by a commitment to a “sustainable energy transition”, the Group maintains a diversified portfolio that spans the entire energy value chain. By balancing traditional energy reliability with high-growth technologies, Banpu is strategically positioned to navigate the global shift toward decarbonization while ensuring long-term value creation for all stakeholders. ABOUT BANPU Climate Change Report 2025 Climate Change Report 2025 6 7 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
PILLAR 3 POWER+ This pillar is an integrated power and infrastructure platform positioned across the energy spectrum and operating as a pure-play power platform to capture growingAI- anddata center-drivendemand and 24/7 energy needs. By expanding assets in keymarkets and unifying thermal power, utility-scale renewables, battery energy storage system (BESS), and energy trading capabi l ities, the integrated platform enhances agility and capability. BANPU continues its strategic step-up to enhance business agility, unlock long-termvalue, and sharpen its focus on future growth platforms, including group restructuring plan and the establishment of BanpuNewCo, targeted for completion in 3Q2026. Guided by a clear commitment to expanding the world’s energy capacity to accelerate the future, theCompany is orchestrating energy across the value chain to maximize resilience and long-term value for all stakeholders. On January 29, 2026, the Extraordinary General Meeting of Shareholders No. 1/2026 approved the Group restructuring through an amalgamation between the Company and BPP to establish a new company (NewCo), which is expected to be listed on the Stock Exchange within the 3rd quarter of 2026. The restructuring supports the execution of the “Energy Symphonics” strategy, under which a new organizational structure comprising 4 core business pillars has been defined, namely: Pillar 1: NextGenMiningBusiness; Pillar 2: U.S. Closed-LoopGas Business; Pillar 3: Power+ Business; and Pillar 4: Future Tech Business. However, this report presents the operating results for FY2025 based on the existing operating structure prior to the completion of the restructuring, which remains in progress. The FY2025 results are presented under the new business pillar framework to align with the Group’s strategic direction going forward. PILLAR 1 NEXT-GEN MINING Committed to unearthing value responsibly, this pillar aligns with electrification-driven commodities while reinforcing operational excellence. Through diversified growth in strategic minerals and AI-enabled technologies, it advances more efficient, sustainable, and intelligent mining. PILLAR 2 U.S. CLOSED-LOOP GAS Addressing the hyperscalers’ risingdemand with a winning formula—integrating gas, power, and CCUS solutions through the operation of BKV Corporation (NYSE-listed). Guided by a closed-loop net zero strategy, the business expands quality upstream assets to strengthen its position, captures the AI-driven power boom in the U.S. market, and accelerates CCUS scale-up to meet targets. PILLAR 4 FUTURE TECH Serving as a transformation catalyst by accelerating investment in emergingdigital technologies and megatrends, whi le delivering retail energy solutions to support all customers’ decarbonization needs. This drives innovation, creates synergistic value, and unlocks new S-curve growth opportunities. PRODUCTS AND SERVICES Under this new phase of its “Energy Symphonics” strategy, the Company commits to energy sustainability while capturing opportunities from the AI boom. By integrating our future-readypeopleand technology, Banpu isprogressing through 4 key pillars, each delivering distinct strengths while collectively reinforcing one another to explore synergistic value and to drive integrated and sustainable growth. THE FOUR PILLARS OF THE “ENERGY SYMPHONICS” STRATEGIC PLATFORM BKV, USA Climate Change Report 2025 8 Climate Change Report 2025 9 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
Scope 1 and 2 Scope 3 • Energy efficiency • Energy from alternative source • Electrification • Methane utilization business • CCUS • Climate technology • Energy efficiency • Energy from alternative source • Electrification • Methane utilization • Climate technology • Balance any remaining emissions that cannot be eliminated with natural or technical solution • Energy efficiency • Energy from alternative source • Electrification • Methane utilization • Climate technology • Balance any remaining emissions that cannot be eliminated with natural or technical solution NET ZERO SCOPE 1 AND 2 EMISSIONS BY 2050 ESTIMATE EMISSION DISCLOSURE INFLUENCE TO MITIGATE EMISSION 2023 2030 2040 2050 ENGAGE SUPPLIER Continued Operational Efficiency Climate Change Report 2025 Climate Change Report 2025 10 11 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
GOVERNANCE Banpu’s oversight of climate-related risks and opportunities is embedded at the highest level of our company.We are continually evolvingour corporate governance structure regarding the urgency of climate action and our increased understanding of climate change’s impact on our businesses. In brief, roles and responsibilities of the Board of Directors and Management related to climate change are as follows: Performance Evaluation of CEO and Senior Management Establishing the CEO’s Key Performance Indicators (KPIs) is a critical process overseen by the Board of Directors, with the Compensation Committee playing a vital role in the initial review. The focus is dedicated to the commitment to ESG, which accounts for 15% of the total KPIs. Within the ESG category, specific KPIs cover critical sustainability metrics, such as GHG emissions intensity reduction, occupational fatality and injury rate, and significant corporate governance complaints. The Compensat ion Committee evaluates the CEO’s performance against these KPIs and proposes to the Board of Directors for final consideration. In parallel, the KPIs for senior executives are directly aligned with the CEO’s KPIs, in which performance is evaluated by the CEO. GOVERNANCE Jixin Solar Farm, China Climate Change Report 2025 13 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
GOVERNANCE CHART Board of Directors Board of Directors Role and Responsibility The Board of Di rectors monitors , manages, and resolves the climatechangerisks throughtheESGCommittee and Audit Committee. In practice, the Board of Directors and management held a joint discussion to review and approve the strategic plan and business direction, aligning with the sustainable development plan to determine business strategies, considering and approving a new strategy, which is “Energy Symphonics”. The main focus is on Decarbonization, Gas-Power-CCUS, Renewable+, and Next-gen Mining. Meeting Frequency: Monthly Audit Committee Role and Responsibility Audit Committee consists of 3 independent members from the Board of Directors and one of them acts as the chairman of the committee. Some Climate-related tasks are handled by the Audit Committee, including setting up working standards for operation team to comply with, doing preliminary auditing before handing it over to an external third-party auditor and oversight of climate-related risks, including climate-related regulation change, strategic risk, as well as risk mitigation plan for each business unit. Moreover, the committee is also responsible for the nomination of external auditors according to Banpu’s assessment criteria. Meeting Frequency: Quarterly ESG Committee Role and Responsibility Climate Change tasks are included under the direct responsibility of the ESG Committee, which is appointed by the board of directors. ESG Committee consists of 3 independent members from the Board of Directors, and one of them acts as a chairman of the committee. Climate-related tasks handled by this committee include reviewing, monitoring and evaluating ESG-related policies, targets, operations, performance, risks and opportunities. This includes oversight of other climate-related topics such as GHG emission, mitigation, adaptation, and low-carbon investment. Furthermore, the committee also has tomonitor stakeholder engagement, materiality assessment, and cooperation with other management teams. Meeting Frequency: Quarterly • Chairman of the Environment, Social and Governance (ESG) Committee • Membe r o f the Co rpo ra te Governance and Nomination Committee Education/Training • Master of Science (International Relations), London School of Economics University of London, United Kingdom • Top Executive Program in Energy (TEA) #7, Tha i l and Energy Academy • Financial Statement for Directors (FSD) #45/2022, Thai Institute of Directors Association (IOD) • The Board’s Roles in Climate Governance (BCG), Thai Institute of Directors Association (IOD) Mr. Piriya Khempon • Member of the Environment, Social and Governance (ESG) Committee • Member of the Audit Committee Education/Training • Master of BusinessAdministration (MBA), Ashland University, Ohio, U.S.A. • TLCA Leadership Development Program (LDP) #1, Thai Listed Companies Association • Advanced Audit Committee Program (ACCP) • The Board’s Roles in Climate Governance (BCG), Thai Institute of Directors Association (IOD) Mr. Pichai Dusdeekulchai • Member of the Environment, Social and Governance (ESG) Committee • Member of the Compensation Committee Education/Training • Doctor of Philosophy Program in Information Processing, Tokyo Institute of Technology • Director Certification Program (DCP) #148/2011, Thai Institute of Directors Association (IOD) • Advanced Audit Committee Program (AACP) #14/2014, Thai Institute of Directors Association (IOD) • The Board’s Roles in Climate Governance (BCG), Thai Institute of Directors Association (IOD) Mr. Teerapat Sanguankotchakorn Risk Management Committee (RMC) Role and Responsibility The RMC role is to review, manage and moni tor the Company ’s r i sk management and report to Audit Committee. Climate-related risk is one of the risks that is integrated into our Enterprise Risk Management. Meeting Frequency: Quarterly SD Committee Role and Responsibility Climate-related issues have been taken into consideration by SD Committee, including target setting, performance monitoring, and roadmap to achieve target. Meeting Frequency: Quarterly Chief Executive Officer (CEO) Role and Responsibility The CEO is responsible for monitoring GHG emission reduction performance and other climate-related issues for both corporate-wide and country level where we have operations. It includes performance reviewmeetings, including GHG emissions. The CEO is also responsible for ensuring and closely monitoring that the GHG emission performance will be achieved against our target. He is also responsible for considering and making decisions to announce internal carbon pricing for a new business investment to align with our New Strategy, Energy Symphonics. Meeting Frequency: Monthly Climate Change Committee Role and Responsibility TheClimateChangeCommitteehandled overall climate-related issues such as ensuring decarbonization target achievement, identifying resources needed to achieve decarbonization target, assessing climate-related risks and opportunities, managing working team to guarantee effective result and mitigation plan, and reporting climate-related performance to upper management team. Meeting Frequency: Quarterly Decarbonization Role and Responsibility The primary responsibilities of the de c a r bon i z a t i on t eam i nc l ude collecting, calculating, and preparing data on greenhouse gas emissions and energy usage for management. They also research and communicate appropriate mitigation plans, solutions, and projects to business units and management. Additionally, monitoring the achievement of targets is crucial to ensure optimal performance. Meeting Frequency: Monthly Mining Decarbonization Role and Responsibility This team works more closely and deeply with the mining units globally. The team is also focusing more on the implementation of initiatives to reduce greenhouse gas and energy usage in the mining operation. Meeting Frequency: Monthly Audit Committee Risk Management Committee Mining Decarbonization Climate Change Committee CEO Decarbonization Sustainability Committee GNC Compensation Committee ESG Committee Climate-Related Risk Directing, Recommending Reporting, Supporting Collaborating, Supporting Highest Governance Body Board Oversight Management Oversight Management Sub-Committee Business Unit Climate Change Report 2025 Climate Change Report 2025 14 15 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
STRATEGY STRATEGY REPORTING BOUNDARY The Group uses the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) (the ‘GHG Protocol’) to measure its GHG emissions unless otherwise statedby IFRS S2. TheGroupuses theGHGProtocol Corporate Value Chain Standard (Scope 3 Standard) to define the fifteen Scope 3 categories as part of the requirement to disclose Scope 3 GHG emissions. The Group’s reporting boundary for GHG emissions includes its organizational boundary and operational boundary: a. Organizational boundary Under IFRS S2, an entity measures its GHG emissions in accordancewith theGHGProtocol. TheGHGProtocol outlines two approaches for establishing organizational boundaries: the equity share approach and the control approach (with control determined based on either financial or operational control). These two approaches are referenced in IFRS S2 as examples of approaches that an entity uses under the GHG Protocol. Following theGHGProtocol, Banpuhas consolidated the emissions under the operational control approach, which includes 100% of the GHG emissions from operations over which it has operational control. b. Operational boundary • Scope 1 emissions: Direct emissions from sources owned or controlled by the Group. • Scope 2 emissions: Indirect emissions fromthe generation of purchased electricity consumed by Group operations. • Scope 3 emissions: Other indirect emissions arising from the Group’s value chain, defined across the fifteen Scope 3 categories in accordance with the GHG Protocol Scope 3 Standard. TIMEFRAME Climate-related risks and opportunities are assessed across the following time horizons, which are applied consistently in strategy, risk management, and scenario analysis. These time horizons are aligned with the Group’s governance structure, whereby short-term risks are assessed in line with the annual budgetingcycle,medium-termrisks are evaluated against the Group’s five-year strategic plan, and long-term risks reflect structural transition and physical climate considerations consistent with theGroup’s Net Zero ambition and IFRS S2 requirements. MATERIAL FINANCIAL IMPACT A climate-related financial impact is considered significant when the potential loss or gain exceeds 15% of net profit. However, financial magnitude is assessed together with the likelihood of occurrence. Consequently, risks or opportunities with lower financial impact but a high probability may still be prioritized as high-risk or high-opportunity items. This threshold is applied in long-term financial planning and capital allocation assessments to ensure material climaterelated impacts are incorporated into strategic decisionmaking. Materiality assessment considers potential impacts onrevenue,operatingcosts,assetvaluation, capitalexpenditure, and cost of capital over the relevant time horizons. SHORT TERM 1 YEAR MEDIUM TERM 3-5 YEARS LONG TERM 10 YEARS Climate Change Report 2025 17 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
STRATEGIC RESILIENCE ASSESSMENT Based on the transition andphysical climate scenario analysis above, the Group recognizes that its portfolio is exposed to both long-term transition pressures and increasing physical climate risks. While certain high-emission assets face elevated transition sensitivity under a 1.5°C, aligned pathway, overall portfolio resilience is supported by diversification under the Energy Symphonics strategy, discipl ined capital al location, infrastructure adaptation measures, and integration of climate risk into strategic planning across short, medium, and long-term horizons. Under high-emission physical risk scenarios (e.g., RCP 8.5), theGroup recognizes increasedexposure to extremeweather events that may affect operational continuity and asset performance. Site-level adaptation measures, infrastructure reinforcement, and integration of climate considerations into asset planning are implemented to enhance operational resilience. Scenario IPCC RCP 8.5 IPCC RCP 2.6 Description RCP 8.5 represents a high emissions, limited mitigation pathway, with continued growth in greenhouse gas concentrations throughout the century. It is often used as a physical risk stress scenario, not a policy target. RCP 2.6 is a stringent mitigation pathway, broadly al igned with the 1 .5–2°C goal , requiring early emission peaks and largescale deployment of negative emissions technologies later in the century. Climate Outcome • Radiative forcing reaches 8.5 W/m² by 2100. • Global warming exceeds 4°C by 2100, with severe increases in extreme heat, flooding, drought, and sea level rise. • Radiative forcing peaks at ~2.6 W/m². • Global warming is likely kept below ~2°C, with substantial mitigation starting this decade. Implication • Severe physical risks: heat stress, flooding, water scarcity, and supply‑chain disruption affecting mining, power generation, and logistics. • Higher operatingcosts, asset downtime, and insurance/financing challenges. • Moderate physical risks with manageable increases in temperature, precipitation variability, and localized extreme weather events. • Limited disruption to long-term asset integrity compared with high-emission pathways. • Continued need for infrastructure resilience planningandwatermanagement strategies. SCENARIO APPLIED FOR ASSESSMENT The Group applies internationally recognized climate scenarios to assess the resilience of its strategy under different transition and physical risk pathways. In accordance with IFRS S2, scenario analysis is used to evaluate the resilience of the Group’s business model and portfolio under both orderly and accelerated transition pathways, including the IEA NZE scenario as a reference pathway broadly aligned with limiting global warming to 1.5°C. Key assumptions, including demand outlook and carbon price trajectories, are periodically reviewed to reflect evolving market and policy developments. TRANSITION RISK PHYSICAL RISK Scenario IEA Stated Policies Scenario (STEP) IEA NZE by 2050 Scenario Description The STEPS reflects currently implemented and announced government policies, without assuming full achievement of long‑term pledges. It is an exploratory, policy‑based scenario, not a forecast. Emissions peak but decline slowly, resulting in global warming well above Paris Agreement goals by 2100. The NZE scenario outl ines a normative pathway consistent with limiting global warming to ~1.5°C (with limited overshoot), requiring rapid and deep decarbonization of the energy system. It assumes strong policy enforcement , accelerated clean energy investment, and widespread deployment of low-carbon technologies. Climate outcome • Warming trajectory broadly consistent with ~2.5–2.6°C by 2100. • Continued reliance on fossil fuels, especially coal and gas, albeit with efficiency gains. • energy-related related CO₂ emissions fall by ~55% by 2035 and reach net zero by 2050. • Heavy relianceon renewables, electrification, energy efficiency, hydrogen, CCUS, and carbon removals. • Temperature peaks around 1.6–1.7°C midcentury, then declines below 1.5°C by 2100. Implication • Coal and gas demand remains but faces gradual policy tighteningandcarbon‑pricing pressure. • Transition risks are manageable but increasing, particularly for coal‑heavy assets. • Banpu’s diversified portfolio (coal, gas, power, renewables) is expected to remain operationally and financially sustainable in the medium term, but long‑term competitiveness requires a continued portfolio shift. • Rapid decline in unabated coal and strong constraints on fossil‑fuel expansion. • Gas with CCUS, renewables, battery storage, energy technology, and strategic minerals become core growth engines. • Capital allocation must accelerate toward low‑carbon and transition‑enabling assets. • Banpu’s “Energy Symphonics” strategy, targeting Net Zero by 2050, expanding renewables, gas‑power‑CCUS, and reducing coal‑related earnings to <50% of EBITDA by 2030, is broadly aligned with this pathway. Newstan, Australia Zouping Power Plant, China Climate Change Report 2025 Climate Change Report 2025 18 19 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
CLIMATE-RELATED RISKS AND OPPORTUNITIES The Group has identified and prioritized climate-related risks and opportunities across its key business segments, including Mining, Power, Gas, and Energy Technology. These risks and opportunities are assessed across short-, medium-, and longterm horizons under both transition and physical risk scenarios. Business Risks Opportunities identified Summary of impact timeframe ST MT LT NEXT GEN MINING Carbon pricing mechanisms (including carbon tax) Under the NZE scenario, accelerated decarbonization and higher carbon prices significantly increase operating costs and reduce margins, potentially affecting asset viability. L L-M L Under the STEP scenario, impacts emerge more gradually as policies tighten over time. L L-M L-M Mandates on and regulation of existing products and services - Stricter Regulation related limitation coal sales In the NZE scenario, rapid phase‑down of coal demand and stricter regulatory mandates substantially reduce market access and shorten asset life. L M-H M-H Under STEP, regulatory impacts materialize more slowly but still constrain long‑term coal sales. L-M M-H M-H Changing customer behavior Under NZE, customers rapidly shift toward low-emission energy, resulting in a pronounced long term-decline in coal demand. L L H Under STEP, demand erosion is slower but remains structurally negative over the long term. L L M-H Stigmatization of sector Coal sector stigmatization increases over time. L-M M-H H Coal sector stigmatization increases over time, with NZE leading to faster deterioration in access to capital and insurance, higher cost of capital , and potential asset devaluation. L-M M-H M-H Heavy precipitation Under RCP 2.6, impacts on operations are moderate and manageable. L L-M L-M Under RCP 8.5, increased intensity and frequency of heavy precipitationheighten risks of flooding, infrastructure damage, and operational disruption, increasing costs and affecting asset resilience. L L-M L-M U.S. CLOSEDLOOP GAS Market transition risk and opportunity for lower-carbon gas Under NZE, long-termdemand for conventional gas declines, however, gas retains a transitional role where emissions are reduced through efficiency and lower carbon solutions. L L-M M-H Under STEP, gas demand remains more resilient in the medium term, with transition risk materializing later. L L-M M-H Growth in lowercarbon gas as a transition fuel (Opportunity) Under NZE, lower-carbon gas supports short-term switching and flexibility, then declines post 2030, with only niche, highly abated long-term opportunities. H M-H L Under STEPS, lower-carbon gas benefits from policy support and strong Asian demand, moderating long term but remaining higher than under NZE. H H M-H Business Risks Opportunities identified Summary of impact timeframe ST MT LT POWER+ Carbon pricing mechanisms (including carbon tax) Under NZE, higher carbon prices and stricter climate policies significantly increase generation costs for high‑emission power assets, accelerating asset optimization or retirement. L L M-H Under STEP, cost pressures increasemore gradually as policies evolve. L L L Substitution of existing products and services with lower emissions options In the NZE scenario, rapid deployment of renewables and low‑emission technologies reduces utilization of higher‑emission power assets. L L H Under STEP, substitution occurs at a slower pace but still affects long‑term revenues and asset strategy. L L L-M Stigmatization of sector Under NZE, increased scrutiny of high‑emission power generation accelerates shifts in customer demand and financing conditions. L L M-H Under STEP, reputational impacts intensifymore gradually but still influence long‑term investment decisions. L L L-M Participation in carbon market (opportunity) Under NZE, stronger carbon pricing and expanded carbon markets increase demand for low-carbon projects. The Group may benefit through renewable energy, energy efficiency initiatives, and selective participation in compliance and voluntary carbonmarkets, supporting additional revenue and transition alignment. L-M L-M M-H Under STEP, carbon market development progresses gradually, with moderate price signals. The Group may selectively participate where regulatory and economic conditions are supportive, enhancing flexibility and transition positioning. L-M L-M L-M FUTURE TECH Growth in low‑carbon technologies (e.g. batteries, energy solutions) Under NZE, demand for energy storage and clean energy technologies increases, with NZE driving stronger and faster growth. This supports revenue diversification and strategic alignment with the low-carbon transition. L M-H H Under STEP demand for energy storage and clean energy technologies increases. L L-M M-H Expansion of renewable energy, battery storage, and energy technology solutions (Opportunity) Under NZE, rapid, sustained expansion of renewables, storage, and enabling technologies underpins system reliability and long-term energy transformation. M-H H H Under STEPS, renewables, storage, and energy technologies expand steadily, supported by policy, cost competitiveness, electrification, and energy security, despite ongoing fossil fuel use. H H H Revenue diversification through low-carbon and transitionenabling businesses (Opportunity) Under NZE, revenues progressively shift toward low-carbon and transition-enabling businesses, becoming essential for long-term value creation as energy systems decarbonize. M-H H H Under STEPS, revenues diversify gradually into low-carbon solutions alongside fossil cash flows, enhancing resilience as clean technologies scale over time. M-H H H ST = short-term, MT = medium-term, LT = long-term Risk Opportunity High High Medium to High Medium to High Low to medium Low to medium Low Low Climate Change Report 2025 Climate Change Report 2025 20 21 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
MITIGATION ACTIONS AND OPPORTUNITIES IMPLEMENTATION CLIMATE GOVERNANCE AND POLICY A climate change policy has been inplace since 2010 andwas updated in 2025 to reflect evolving regulatory, market expectations, and alignment with the climate change goal. TARGETS AND ROADMAP The Group has announced a Net Zero target by 2050 and an interim target to reduce emissions by at least 20% from 2023 levels by 2030. Progress is monitored annually and reviewed on a quarterly basis. In addition, the Group aims to progressively reduce coal-related earnings contribution to below 50% of EBITDA by 2030 as part of its portfolio transition strategy. RISK AND OPPORTUNITY MANAGEMENT Climate-related risks and opportunities are identified, assessed, and integrated into the Corporate Enterprise Risk Management framework. They are evaluated across short-, medium-, and long-term horizons, linked to strategic planning and capital allocation processes, and reviewed on a quarterly basis. INTERNAL CARBON PRICING The Group applies internal carbon pricing in the assessment of new business investments to support the identification and evaluation of climate‑related risks and opportunities. Carbon price assumptions are differentiated by geographic location of operations, with internal prices ranging from USD 1–23/tCO₂e. These prices are used as reference inputs for sensitivity analysis and investment screening, areperiodically reviewed against external carbon market developments and climate‑related scenario assumptions and are intended to support decision‑ making under uncertainty. The internal carbon prices do not represent a forecast of future regulatory carbon price levels. GREEN GROWTH INVESTMENTS Capital al location prioritizes energy trading platforms, energy storage, solar solutions, smart city and energy management systems, vertically integrated battery businesses, ande-mobility projects. Stricter screeningcriteria are applied to high-emission investments , and new coal projects are evaluated against long-term demand out look, carbon pricing sensitivity, and portfoliodiversificationobjectives. Capital al location trends are moni tored to progress i vely increase exposure to lowercarbon and transition-enabling businesses over time. TECHNOLOGY AND INNOVATION Ongoing research, evaluation, and selective deployment of emergingtechnologies, including energy storage, low-carbon gas solut ions , and carbon management technologies, to reduce GHG emissions and strengthen long-term portfolio resilience. SCOPE 3 MANAGEMENT Recognizing that Scope 3 emissions represent a material portion of the Group’s value chain exposure, particularly in coal-relatedbusinesses, theGroup engageswith customers and stakeholders to promote efficiency improvements, fuel switching, and lower-emission energy solutions. Scope 3 trends and disclosures are monitored and periodically reviewed by management as part of long-term transition risk assessment and alignment with evolving regulatory and investor expectations. MONITORING AND STRATEGIC ADJUSTMENT MECHANISM The Group continuously monitors key transition indicators, including carbon pricetrajectories, regulatorydevelopments, coal and gas demand outlook in Asia, renewable cost competitiveness, and technology deployment rates. Whe re ma te r i a l dev i a t i ons f rom assumptions occur, management may adjust portfolio mix, optimize assets, real locate capi tal , or re-sequence investments to preserve long-term competitiveness andmaintain alignment with transition pathways. Climate-related assumptions are reviewed at least annually and integrated into the Enterprise Risk Management process to ensure consistency between strategy, risk management, and financial planning. Zhengding Power Plant, China Climate Change Report 2025 22 Climate Change Report 2025 23 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
ADAPTATION AND RESILIENCE STRATEGY To enhance resilience with physical climate risks, the Group has implemented both mitigation and adaptation measures: MITIGATION MEASURES ADAPTATION STRATEGIES ENGINEERING CONTROLS: Reinforcing structures, building flood barr iers , or implement ing sei smic retrofitting. For example, at site, we have evaluated and installed equipment to control flooding at catchment area and maintain pump performance allocation. This includes reinforcement of mine drainage systems, slope stabilization in open-pit operations, and flood protection for power generation facilities to reduce operational downtime under extreme precipitation scenarios. INFRASTRUCTURE UPGRADES: Enhancing resilience towithstandextreme weather events or sea-level rise. We have conduc ted workshops to ident i fy precipitat ion patterns and develop production planning. Infrastructure planning considers high-emissionphysical risk scenarios (e.g., RCP 8.5) to stress-test design standards and capital expenditure priorities. LAND USE PLANNING: Zoning regulations to restrict development in high-risk areas. For example, we have developed and implemented digital applications to identify and monitor high- risk areas across operational sites. DIVERSIFICATION OF WATER SOURCES: Investing in alternative water supplies or water conservation measures to address changes inprecipitationpatterns. At power plant operation, we have planned to reuse water within the plant and aim to zerodischarge to outside. Water stress assessments are conducted for relevant sites to evaluate cooling system resilience and long-term water availability under projected climate variability. NATURAL RESOURCE MANAGEMENT: Reforestation, wetland restoration, or erosion control to mitigate the impact of natural hazards. ECOSYSTEM-BASED ADAPTATION: Protec t i ng and res tor i ng natura l ecosystems to provide natural buffers against physical risks, such as wetlands for flood control or green infrastructure for heat mitigation. EMERGENCY PREPAREDNESS: Developing and practicing emergency response plans for various scenarios. We have implemented Business Continuity Management System based on ISO 22301:2019. Havingamanagement process and a plan to prevent and recover critical business functions and operations in case of cyberattacks, manmade disasters, or natural disasters. COMMUNITY ENGAGEMENT AND CAPACITY BUILDING: Empower ing local communit ies to understand and respond to changing physical risks through education, training, and communi ty-based adaptat ion initiatives. We have worked closely with the community and developed projects together through Community Development Program. Meanwhi le, we have developed forest education area and is open to community to study about species and ecosystem. INSURANCE IN PLACE: Insurance coverage is maintained for relevant assets, and periodically reviewed to reflect evolving climate-related risk exposure and market conditions. INTEGRATION INTO CAPITAL PLANNING: Physical climate risk considerations are incorporated intonewproject design, asset maintenance planning, and capital expenditure approval processes to enhance long-term asset resilience. ITM, Indonesia Climate Change Report 2025 Climate Change Report 2025 24 25 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
RISK MANAGEMENT RISK MANAGEMENT Banpu takes a comprehensive view of reducing our carbon footprint. Our GHG reduction strategy covers our existing assets, assets that Banpu will develop in the future, newacquisitions to thebusiness, andour supply chain. Banpu has implemented a comprehensive and structured risk management frameworkwhich aligns with the international standard of The Committee Sponsoring Organizations of the Treadway Commission (COSO) and the International Organization for Standardization’s ISO 31000. The framework is used to set climate-relatedobjectives and to identify, assess, prioritize, respond to, and monitor climate-related risks and 1 SET BUSINESS OBJECTIVES Define climate-related objectives that guide risk and opportunity management across the Group. 2 IDENTIFY RISKS & OPPORTUNITIES Identify climate-related risks and opportunities across the value chain aligned with business objectives. 3 ASSESS & PRIORITIZE Assess likelihood and impact, and prioritize key risks and opportunities. 4 MITIGATION & OPPORTUNITY ENHANCEMENT PLANS Develop mitigation actions and capture opportunity initiatives. 5 MONITORING & REPORTING Monitor performance and report quarterly to RMC/AC/ESGC/BOD. opportunities across the organization, in alignment with Banpu’s Climate Risk & Opportunity Management Process, to prevent any possible adverse impacts on the business while capturing emerging opportunities that support longterm competitiveness and value creation. Banpu also integrates climate-related risks and opportunities into strategic planning, capital allocation, and operational decision-making to support long-term resilience and a balanced and sustainable energymix in linewith our “Energy Symphonics” direction. RISKS AND OPPORTUNITIES MANAGEMENT PROCESS AWARENESS & CAPABILITY BUILDING Support all steps by enhancing climate literacy, readiness, and internal capabilities. Port Operation, Indonesia Climate Change Report 2025 27 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
Banpu establishes clear climate-related business objectives to guide the identification, assessment, prioritization, response, and monitoring of climate risks and opportunities across the group. These objectives are aligned with Banpu’s Energy Symphonics direction, long-term transition pathway, and decarbonizationambition, ensuring that climate considerations are embedded in strategic planning and operational decisionmaking. Banpu sets climate-related objectives across three key time horizons to ensure that risk and opportunity management remains consistent with the evolving landscape of the energy transition: Set Business Objectives 2 Risk and Opportunity Identification 1 For risk/opportunity identification, each business unit and supporting unit is responsible for the ongoing identification of climate-related risks and opportunities. Climate-related risks and opportunities are identified across various categories, including physical risks, transition risks, and opportunities. This process utilizes multiplemethodologies, including workshops with relevant stakeholders, consultations with subject matter experts, analytical tools, and external monitoring of policy changes, such as global climate agreements (e.g., COP30) and local regulatory shifts. The company’s climate risk management process integrates the ident ificat ion and evaluat ion of cl imate-related opportunities alongside risks to ensure balanced decisionmaking and value creation under uncertainty. This includes opportunities arising from supplier collaboration, technology innovation, efficiency improvements, and the development of new low-carbonor energy-efficient offerings across its portfolio, while also assessing value-chain exposures across suppliers, logistics providers, and customers to capture upstream and downstream vulnerabilities. In parallel, Banpu monitors regulatory and market “trigger conditions,” such as potential policy tightening or shifts in customer fuel demand, to identify emerging transition risks in a timely manner. RISK AND OPPORTUNITY CATEGORIES Climate-related risks and opportunities are categorized into two categories: • TransitionRisks andOpportunities: These include policy and legal risks, market shifts, reputational impacts, and technological advancements. Banpu’s risk management process systematically assesses each of these categories to anticipate regulatory changes, align with market demand for low-carbon solutions, safeguardBanpu’s reputation, and identify technological investments essential for the energy transition, including evolving carbon-pricing exposure and changing customer requirements that influence long-term competitiveness. Transition-related opportunities include competitiveadvantages fromearly compliance, newrevenue streams in low-carbon markets, energy-technology innovation, and access to sustainability-linked financing. • Physical Risks and Opportunities: Climate-related physical risks are classified into acute risks (e.g., extreme weather events) and chronic risks (e.g., long-term shifts in climate patterns). These risks are evaluated to understand their potential impact onBanpu’s operations, supported by longterm hazard projections and asset-level vulnerability assessments. Physical-related opportunities include improved resource efficiency, resilient infrastructure design, and innovations that enhance long-termoperational performance under changing climate conditions. SHORT TERM (TO 2025): This aligns with Banpu’s short-termbusiness and financial planning, ensuring that immediate goals incorporate climate-related considerations. MEDIUM TERM (TO 2030): AlignedwithBanpu’s groupbusiness strategy, this timeframe allows for mid-term target setting and adjustments to support “The Banpu Symphonics” strategy, meeting Banpu’s sustainabi l i ty and emissions reduction goals. LONG TERM (TO 2050): Using scenario analysis, Banpu explores a rangeof uncertainties surrounding theenergy transition, assessing the resilience of its strategy over the next 25 years. Across all time horizons, Banpu assesses climate-related impacts using consistent criteria, including operational continuity, regulatory andmarket changes, and potential longterm financial implications to ensure energy reliability and business resilience. Banpu also evaluates climate-related opportunities across all time horizons, including technology improvements, efficiency gains, emerging low-carbonmarkets, and potential regulatory or financial incentives. Banpu prioritizes risks and opportunities based on likelihood, magnitude of impact, and strategic relevance to Banpu’s transition direction and long-term value creation. 3 Risk and Opportunity Assessment & Prioritization Climate-related risks and opportunities are assessedwithin Banpu’s enterprise risk management (ERM) framework. This assessment includes evaluating both the likelihood and impact of each risk and opportunity, considering criteria such as quantitative (financial impact) and qualitative aspects (strategic, health and safety, environmental , regulatory, reputational , human resources, relationship and service delivery impacts). Banpu uses a 1–5 rating scale to assess the impact and likelihood of each climate-related risk and opportunity, supporting a standardized and comparable evaluation across the organization. Banpu assesses climate-related opportunities alongside risks, including potential cost reductions, productivity improvements, access to incentives, new revenue opportunities, and enhanced financing options associated with strong climate performance. The scoring of impact criteria is defined as follows: Banpu evaluates both adverse impacts and opportunity outcomes to ensure a balanced assessment of howclimate-related factorsmay influence the company’s financial and operational performance over time. For financial impact thresholds, Banpu defines significant financial impact as any risk or opportunity that could affect more than 15% of net profit. Risks and opportunities with a financial impact above this threshold are classified as high impact and prioritized for immediate attention and mitigation planning, including the consideration of potential long-term financial implications under different climate scenarios. For likelihood assessment, likelihood is ratedbased on the probability of the risk occurring within a defined timeframe. The likelihood scoring is as follows: Banpu prioritizes climate-related risks and opportunities based on their likelihood, magnitude of impact, and strategic relevance. Negligible impact, unlikely to disrupt operations or financial performance. Low impact on operations or financial performance, manageable within existing resources. Significant impact that may require adjustments to operational processes or financial planning. Severe impact with potential to disrupt operations, requiring dedicated resources and strategic adjustments. Catastrophic impact that could substantially affect Banpu’s financial performance or operational stability, requiring urgent and substantial response. 1 2 3 4 5 (Rare): 0%–20% probability; not likely to occur. (Unlikely): 21%–40% probability; may occur but has not happened in the past. (Possible): 41%–60% probability; likely to occur and has happened in the past. (Likely): 61%–80% probability; expected to occur in most circumstances. (Almost Certain): 81%–100% probability; a common occurrence or recurring risk. 1 2 3 4 5 Coal Loading, Indonesia Climate Change Report 2025 Climate Change Report 2025 28 29 Introduction Governance Strategy Risk Management Metrics and Targets Looking Ahead
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