Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 248

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 248
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-related risks and opportunities, including legislative and regulatory developments. Our executive team reviews such risks and opportunities quarterly and reports to the GSSC and AFRC, as applicable. At the business unit level, climate change risks are identified through our Total Safety Management System, asset management function and systems, energy and trading business, communication with stakeholders, active monitoring and participation in working groups. Notably, we link our annual incentive plans (short-term incentive and long-term incentives) to our strategic goals. In 2024, our strategic goals included growing renewable energy and supporting our customers’ sustainability goals to decarbonize through on-siterenewable energy generation. For further information on incentives for ESG performance, refer to the discussion on ESG-LinkedCompensation in Building a Diverse and Inclusive Workforce section of this MD&A. Climate Scenarios In 2021, TransAlta conducted climate scenario analysis to understand risks and opportunities and assess our strategy’s resiliency under several potential future climate scenarios. The analysis used scenarios from the International Energy Agency’s (IEA) World Energy Outlook 2020, a large-scale simulation model designed to replicate how energy markets function. We used three scenarios: Stated Policies (STEPS); Sustainable Development (SDS); and Net-ZeroEmissions by 2050 (NZE). In STEPS, the energy system has no major additional climate and environmental policies enacted by government(s). STEPS assumes that carbon pricing continues in Canada while no carbon price is set in the U.S. or Australia. STEPS also assumes that the power sector reduces emissions by 45 per cent by 2040 while natural gas generation capacity increases. Finally, STEPS is limited to the deployment of commercial-ready technologies, including wind and solar.

| M96 |     | TransAlta Corporation |     | 2024 Integrated Report |

Management’s Discussion and Analysis In SDS, the goals of the Paris Agreement (2015) are achieved, resulting in net-zeroemissions by 2070. The SDS assumes a rapid increase in clean energy policies and investments that position the energy system to also achieve key UN SDGs. In SDS, all current net-zeropledges are achieved and there are extensive efforts to reduce emissions. SDS assumes that carbon pricing continues in Canada and is set in the U.S. and Australia. It also assumes that the power sector reduces emissions by 90 per cent by 2040 while natural gas capacity remains stable into 2030 and declines toward 2040. Finally, SDS