Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 34

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 34
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In 2022, we conducted a climate-related scenario analysis with the aid of a third-party consultant to further validate our climate strategy. We also carried out a scenario-based climate change risk assessment exercise to determine potential implications of climate risks on our business and strengthen the resilience of our strategy moving forward. Given that the Group’ business and overall risk profile of the sector in which it operates has not changed materially in 2023, we consider such scenarios remain relevant and therefore have not updated our scenario analysis from 2022.

In building our scenarios, we used the Intergovernmental Panel on Climate Change (IPCC) warming scenarios, which provides pathways for assessing the physical impacts of climate change from varying degrees of GHG emissions in the atmosphere. Since many of the publicly-available climate-related scenarios that exist focus on transitions in heavy- emitting sectors (e.g. utilities, heavy industry), the majority of the assumptions in these existing scenarios do not directly impact Argo. As such, we drafted three qualitative transition scenarios, drawing from existing scenarios and trends, and combined them with three warming scenarios:

Assumptions:

Business-as-usual

RPC 8.5 - Extremely high emissions scenario with global mean temperature expected to rise by 3.7°C (2.6- 4.9°C) by end of the century. The scenario assumes high dependence on fossil fuels and no policy-driven mitigation.

Qualitative assumptions – Limited regulation and impact of climate risks and emissions performance on the Company’s reputation. There is uneven pressure regarding climate action and emission reduction targets, with limited investment in renewable electricity. Insurance becomes increasingly expensive and demand for RECs begins to outstrip supply resulting in much higher prices to purchase these RECs. Investors in crypto have limited interest in acquiring currencies that have been produced with fewer emissions.

Delayed transition

RPC 6.0 – High emissions scenario with global mean temperature expected to rise by 2.2 °C (1.4-3.1°C) by end of the century, which assumes emissions peak around 2080 and then decline.

Qualitative assumptions – There is uneven regulatory action from state to state in the US and globally, with some setting stringent climate expectations and others not incorporating ESG into regulatory standards. This means that some regions decarbonize quicker and employ renewable electricity whilst others fail to do so. Prices of RECs vary by region.

Net-zero

RPC 2.6 – A stringent pathway with a large regulatory push and the development of new technologies enable the likelihood of keeping global temperature rises below