Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 20

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 20
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resiliency in a decarbonizing world in support of the goals adopted under the Paris Agreement, and the goals adopted during subsequent international climate meetings. Our strategy is focused on the operation of our existing assets (wind, hydro,
solar, natural gas, battery storage and coal), the phase-out of coal-fired electricity generation by the end of 2025, the development of electricity solutions through our technology agnostic approach and the
use of natural gas generation to ensure reliability.

We are committed to decarbonization with a target of reducing scope 1
and 2 greenhouse gas emissions by 75% from 2015 levels by 2026. Since 2018, we have retired 4,664 MW of coal-fired generation capacity while converting 1,659 MW to natural gas, significantly reducing our carbon footprint. TransAlta
will retire the last coal unit by December 31, 2025. We remain on track to achieve our 2026 GHG emissions reduction target and our carbon net-zero goal by 2045.

S-13

In 2021, we amended our Syndicated Credit Facility to provide for sustainability-linked
loans. The Syndicated Credit Facility’s financing terms align the cost of borrowing to our GHG emissions reduction, which is part of our overall ESG strategy.

In addition, in 2022 and 2025, TransAlta issued US$400 million ($533 million) and $450 million, respectively, in senior notes
and an amount equal to the net proceeds from the bonds has been allocated to finance or refinance new and/or existing eligible green projects. The bonds were issued under the Green Financing Framework, which was developed in line with the Green Bond
Principles 2021 published by the International Capital Market Association.

We have a long history of adopting leading sustainability
practices, including 30 years of sustainability reporting and also voluntarily integrating our sustainability report into our Annual MD&A. We partially adopt guidance from the Canadian Sustainability Standards Board, International
Sustainability Standards Board, International Financial Reporting Standards (IFRS) Foundation, International Integrated Reporting Framework, Global Reporting Initiative and the Sustainability Accounting Standards Board requirements for electric
utilities and power generators. We continue to monitor the development of sustainability- and climate-related disclosure requirements in the jurisdictions in which we operate to assess our future reporting obligations. Moreover, we align our
sustainability targets with the UN Sustainable Development Goals.

Strategic Investment by Brookfield

On March 22, 2019, the Corporation entered