Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 251

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 251
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 System, asset management function and systems, energy and trading business, communication with stakeholders, active monitoring and participation in working groups. All identified material risks are added to our ERM register and scored based on likelihood and impact. We do not consider risks in isolation and major risks are the focus of management response and mitigation plans. Further discussion can be found in Reporting in the Governance and Risk Management section of this MD&A. We divide our climate change risks into two major categories as per IFRS S2 and TCFD guidance: (i) risks related to the transition to a lower-carbon economy; and (ii) risks related to the physical impacts of climate change. Transition Risks to a Lower-Carbon Economy We actively aim to understand and manage the impact of climate change on our business. In 2024, we updated the transition risks outlined below. Policy and Legal Risks Changes in current environmental legislation have a potentially significant impact upon our business and operations in Canada, the U.S. and Australia. For a more detailed assessment of policy and regulatory risks, refer to the Governance and Risk Management section of this MD&A. Canada The Government of Canada has set objectives for carbon emissions reductions, including a 45 to 50 per cent national emissions reduction over 2005 levels by 2035, a net-zeroelectricity grid by 2035 and a net-zeronational economy by 2050. The current government plans to rely on several policy tools to achieve its emissions objectives, including but not limited to carbon pricing, emissions performance regulations, funding for industrial energy transition, and incentives for consumers.

| TransAlta Corporation |     | 2024 Integrated Report |     | M101 |

Management’s Discussion and Analysis

Canada’s provinces have jurisdiction over their respective electricity sectors and play an important role in setting carbon pricing policy and emissions performance standards, subject to the federal government’s authority to set national carbon pricing standards. Jurisdictional responsibilities between the federal and provincial governments enable both levels of government to implement policies that impact our sector. Leadership changes at either level of government can influence policy direction. Risks

| • |     | Changes in carbon pricing and emissions performance regulations may impact TransAlta’s                      
 generation fleet in Canada as governments may change policy stringency in conjunction with climate targets. |

| • |     | Government funding for industrial energy transition may create out of market incentives for 
 competing generation.                                                                       |

| • |     | Regulatory incentives, including emissions reduction crediting, may create out of market incentives 
 for competing generation