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See Item 1A, Risk Factors – The effects of climate change could harm the Company’s business, for more information on the potential significance of climate change legislation.

Customers, consumers, investors and other stakeholders are increasingly focusing on environmental issues, including climate change, energy and water use, plastic waste and other sustainability concerns.

Environmental, social and corporate governance (“ESG”) issues, including those related to climate change and sustainability, may have an adverse effect on our business, financial condition and results of operations and damage our reputation.

Concern over climate change or plastics and packaging materials, in particular, may result in new or increased legal and regulatory requirements to reduce or mitigate impacts to the environment.

In the event that any future climate change legislation would require that stricter standards be imposed by domestic or international environmental regulatory authorities with respect to the use and/or levels of possible emissions from such chemicals and/or other substances, the Company may be required to make certain changes and adaptations to its manufacturing processes.

On top of this extensive pay investment, we have launched a series of financial education modules and face-to-face sessions to support our teams in Operations and our Support Centre in the current climate.

The full TCFD Report reiterates the process we undertook to identify the principal climate-related issues which have affected and will potentially affect our businesses, strategy and financial planning.

Biodiversity appeared last year as an issue on our materiality matrix and is fast becoming a key topic for businesses, driven not only by increased awareness about its role in fighting climate change, but also by upcoming legislation, increasing shareholder interest, and the value it can provide from a guest perspective.

The directors have also determined that, over the period of the going concern assessment, there is not expected to be a significant impact as a result of climate change.

The impacts of climate change are now being seen on a daily basis.

Our consideration of climate- related risks As described on pages 52 and 66, the Group has assessed the risks and opportunities associated with various future climate-related scenarios.

The Group has considered the impact of climate-related risks on its financial performance and position, and although the impact represents an uncertainty, it is not considered to be material.

• We have robust fire safety policies, procedures and training for our team members, and work closely with independent fire safety consultants, regarding fire safety in our hotels.

This exposes the Group to risks including those relating to interest rates, equity markets, foreign exchange and climate change.

The Group’s full Task Force on Climate-Related disclosures report outlines the process they have taken to identify the principal climate-related issues which have affected and will potentially affect the business.

￮The Carbon Reporting Committee (CRC) i ncludes senior management representatives focusing on climate-related matters from across the businesses, P&T climate-related disciplines and functions including Finance, Legal and Strategy.

Additionally, the impact of physical climate change on Shell's operations is unlikely to be limited to the boundaries of Shell's assets.

We continue to align and enhance our climate-related disclosures.

Consideration was given to the climate change and energy transition risk, however the associated material impacts are of a longer-term nature, outside the three-year viability statement period.

Given the current environment, there may be a heightened risk of proved reserves with a high carbon intensity not ultimately being produced (also see climate change and energy transition key audit matter).

We are also working with governments on their climate policy to help establish regulatory frameworks that will enable society to reach the goals of the Paris Agreement.

Average prices from three 1.5-2 degrees Celsius external climate change scenarios: In view of the broad range of price outlooks across the various scenarios, the average of three external price outlooks was taken from IHS Markit/ACCS 2023; Woodmac WM AET-1.5 degree; and IEA NZE50.

See "Climate-related risks and opportunities identified by Shell over the short, medium and long term" on pages 90-93.

For five activities, assets in scope for screening were assessed as aligned with the DNSH criteria for climate mitigation, including solar, wind, hydrogen manufacturing, storage of electricity and infrastructure enabling low-carbon road transport.

Refineries in the Chemicals and Products segment (carrying amount as at December 31, 2023 , $6 billion (2022: $6 billion )) may be impacted under a two-degrees-Celsius or less external climate scenario.

Climate change drives the need for decarbonization and digitalization.

Furthermore, it develops technologies for environmentally friendly and increasingly renewable-based energy systems, ranging from climate-friendly F-gas-free switchgear for medium voltage to charging solutions for e- mobility and grid integration of green hydrogen production.

Due to regular screening of climate risks and environmental, social and governance (ESG) developments we can initiate related mitigation actions in a timely manner – also as part of our DEGREE implementation.

Climate change litigation has become a worldwide phenomenon with a corresponding risk to Siemens as a large corporation.

Combined Management Report 30 legislative and governmental measures to accelerate the mitigation of climate change, especially in Europe such as through the Green Deal or sustainable finance initiatives.

For fiscal 2023, EU Taxonomy reporting is limited to the first two environmental objectives (climate change mitigation and climate change adaption).

The following considerations were made in respect of the financial statements: –The impact of climate change on the going concern assessment and the viability of the Group over the next three years.

For further information on our governance see the Governance Report from page 88 and our Task Force on Climate-related Financial Disclosures (TCFD) reporting on pages 60–64 .

We address climate-related risk primarily through business strategies in our global operations functions including facilities, health and safety, business continuity and global supply chain management.

The impact of climate change on our audit In planning our audit, we considered the potential impacts of climate change on the Group’s business and its financial statements.

Our Principal Risks capture our physical and transitional climate-related risks in our Enterprise Risk Management process.

Climate change The impact of climate change has been considered as part of our review of the impairment testing of goodwill and acquired intangible assets, and the going concern assessment.

–The impact of climate change on the carrying value and useful economic lives of property, plant and equipment.

Climate change is an element of our Global Supply Chain Principal Risk, as increasingly frequent climate events increase the likelihood and impact of disruptions to our supply chain.

Environment and sustainability Climate change and sustainability-related risks have the potential to impact the Group’s business model and performance.

–In assessing our TCFD risks we concluded that climate-related risks are not significant in our viability horizon of three years.

Through this process we have identified a number of climate-related opportunities relating to energy sourcing, energy efficiency, on-site renewable energy generation, engagement through the CDP Supply Chain programme and packaging reduction initiatives.

This year, we are reporting both our 2022 and 2023 Scope 3 greenhouse gas (GHG) emissions from 13 categories and are developing our Scope 3 GHG emissions reduction roadmap and strategy for the short to medium term.Climate change During 2023, we have continued to consider the potential impact of climate change on our business operations.

–The impact of climate change on the cash flow forecasts used in the impairment assessments of non-current assets including goodwill.

This is a climate neutral print product for which carbon emissions have been calculated and offset by supporting recognised carbon offset projects.

For TIGPS, where all benefits are now secured by way of annuity purchase, all investment risks including ESG and climate risk, have effectively now been eliminated.

The TCFD provides an internationally recognised framework to provide clear, comprehensive and high-quality information on the impacts of climate change.

This year, based on our current assessment of their materiality, we have replaced our environment, social and governance (ESG) risk with a broader climate-related risk, capturing both the opportunity and risk of energy transition and climate-related regulatory risks.

Climate change has been identified as a Group principal risk and is managed and owned by the Audit & Risk Committee.

Climate-related opportunities such as those relating to the decarbonisation/energy transition agenda have been communicated to the Executive Committee and Board, culminating in a Group-wide strategic response for markets and opportunities.

The Executive Committee also ensures that risk owners and decision makers understand the Board’s risk appetite, and ensures that risks, including climate risk, are adequately managed, and conducts an annual assessment of strategic risk.

57 SMITHS GROUP PLC ANNUAL REPORT FY2023 TCFD CONTINUED MONITORING METRICS AND TARGETS The table below outlines the key metrics and targets used to monitor climate risks and opportunities.

CLIMATE CHANGE – Missed opportunities in energy transition and change in climate conditions causing business disruption and economic loss for the Group Failure to identify and act on the significant opportunities arising from the world’s transition to a low-carbon economy and/or failure to respond appropriately to climate change risks and regulation.

During FY2022 we undertook a scenario analysis, including climate risk and opportunities workshops for Group and the divisions.

The time horizons considered for identified climate- related risks and opportunities, found in the table below, align to our targets which have been submitted to the SBTi.

From FY2023 onwards, we introduced climate-related metrics (energy efficiency) into our AIP and (absolute GHG reduction) into our LTIP to more closely align decision making and ownership of climate goals.

Similar to the approach with investors we generate greater understanding of our customers sustainability and climate needs through ongoing engagement and dialogue on data requirements and a focus on issues important to them.

This would de-risk climate transition risks linked to energy but would also contribute to the Group’s sustainability goals.

— Climate scenario analyses conducted in 2021 and 2023 indicates that the proportion of asset value at risk is low.

— Climate Change Mitigation 4.20 Cogeneration of heat/cool power from bioenergy: Our Piteå and Nettingsdorf paper mills combined heat and power plants meet the substantial contribution criteria.

We continue to support the development of sustainability and climate related capabilities of the Board in the area of climate change.

We have set both interim and long-term targets related to climate change and our interim 2030 targets have been approved by the SBTi as in line with the Paris Agreement.

Climate change is a principal risk for the Group.

Given the short-term nature of the Group’s trade receivables and the sustainable nature of the Group’s products, no adjustments were applied to the expected loss rates to specifically incorporate the effect of climate-related risks.

Climate change, limited natural resources, littering, deforestation, a growing population and increased social inequality, are pressing global challenges that require forward thinking and a constructive response from the business community.

In addition, as part of our reporting process, we have considered the recommendations outlined in the FRC reports, ‘CRR Thematic review of TCFD disclosures and climate in the /f_inancial statements’ and ‘CRR Thematic review of climate-related metrics & targets’.

The risk identification process is designed to consider the risks and opportunities through the specific lens of climate change.

The Group considered the potential impact of climate-related risks, which is a principal risk in the long-term for the Group when assessing the recoverability of its trade receivables.

The expectations of our stakeholders is that we approach climate change responsibly and provide regular, detailed progress reports.

In 2023, third party experts carried out training for Non-executive Directors on the importance of climate scenario analysis, how to use it, and what it means for SKG.

A climate event could impact some or all of its facilities and human or technical resources.

Some information may have been obtained from public or other sources that the Group has not independently verified.However, as clients are increasingly adopting a framework for climate reporting and disclosure, the Group expects external data on emissions to become more accessible and reliable over time.

A growing number of companies now reports their greenhouse gas (GHG) emissions and assesses their contribution to climate change risks.

As with the Climate‑related risks, the risk data was cross‑referenced with the Group’s activity data.

By only financing companies making a commitment to reduce their greenhouse gas emissions, SG Tikehau Dette Privée presents an ambitious low‑carbon strategy, aligned with the objectives set by the Paris Climate Agreement .

For more information on these indicators and targets, see the latest Climate and Alignment Report (https:// www.societegenerale.com/ sites/ default/ files/ documents/ CSR/ Climate‑and‑Alignment ‑Report.pdf ).22 22 2 2 2 2th

Chapter 4, Environmental and Social (E&S) General Principles and sector policies , page 306; Chapter 4, Incorporating environmental factors into the risk management framework , page 313, Processes and tools for identifying and measuring climate risks and mitigation , page 315.

The behavioural skills reflected in the Leadership Model are divided into three categories corresponding to the main levels of responsibility within the Bank (senior executives, managers and employees) and are shared throughout the Group.the Board of Directors , which approves the CSR strategy (notably climate strategy) guided by General Management and the non‑voting Director.

Hence, the Group is exposed to physical climate risk with respect to its ability to maintain its services in geographical areas affected by extreme events (floods, etc.).

A qualitative analysis of the potential impact of climate risks on the calculation of expected credit losses in the review of these adjustments, whenever compatible with the provisioning horizon.

Violations of environmental and climate change- related laws and regulations could lead to significant fines and penalties and reputational harm.

Similarly, the Company has experienced operational challenges in connection with severe weather events and associated crew scheduling, such as during and subsequent to Winter Storm Elliott.

The reporting obligations of the CCDAA, CRFRA, VCMDA, and other state or federal laws or rules requiring the disclosure of climate-related risks or emissions may cause the Company to incur additional increased costs for compliance as well as increased costs regarding access to capital.

In late December 2022, Winter Storm Elliott impacted a significant portion of the United States, leading to wide-scale operational disruptions for the Company.

At the federal level, in July 2016, the EPA issued a final endangerment finding for greenhouse gas emissions from certain types of aircraft engines, which the agency determined contribute to pollution that causes climate change and endangers public health and the environment.

The FAA and the U.S. Department of Defense have strict performance specifications for fire suppression systems, which has contributed to the use of AFFF/PFAS over the decades.

Enhanced climate-related disclosures pursuant to these requirements could also lead to reputational or other harm with Customers, regulators, investors, or other stakeholders.

After Winter Storm Elliott, the Company was challenged to realign flight crews, flight schedules, and aircraft for a period of several days during this peak demand travel period.

Finally, the potential acute and chronic physical effects of climate change, such as increased frequency, duration, and severity of extreme weather events, longer-term changes in weather patterns, and other climate-related events, could affect the Company’s operations, infrastructure, and financial results.

Risk/opportunity DescriptionHow we manage and mitigate this riskEstimated financial impa ctLink to metrics and targets Heat stress Currently 45% of the TIV of the Group’s operations (112 locations) is e xposed to heat stress, seeing an average of >20 heatwave days in a given year with temperatures in excess of 30˚C.

In addition, physical risk exposure diagnostic analysis was completed for 45 of the Group’s suppliers (selected on the basis of spend, strategic importance, geographic location o b usiness coverage).

Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning Growing awareness of climate change and customer sustainability targets will continue to provide an impetus for b usiness growth as we provide products, services and solutions that increase efficiency and reduce customers’ energy use and carbon emissions.

Suppliers are required to complete a series of surveys including climate impact, human rights, human trafficking and slavery and a Spirax Group bespoke survey covering biodiversity, community engagement and inclusion, as well as diversity in the supply chain.

We committed to establishing science-based targets during 2021, as part of our wider commitment to take action on climate change and reduce our environmental impacts.

There were lots of examples of this during the last decade as we evolved the scale and composition of our Group by focusing on opportunities to create significant value for all our stakeholders and address the imperative of climate change.

We also continue to follow the framework set by the Task Force on Climate-related Financial Disclosures (TCFD) to enable the transition to a low-carbon economy.

The Risk Management Committee has responsibility for managing climate-related risks.

As a result, no specific climate change impact scenario has been included.

It helps companies to set ambitious and credible climate targets that are based on the best available science and the needs of the planet.

Cognisant of the UK regulator’s focus on Climate Risk, this will remain a key priority in 2024.