Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 249

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 249
---
 assumes that beyond wind and solar, the energy system relies on batteries, storage and some level of carbon capture, utilization and storage (CCUS) and hydrogen. NZE represents a pathway for the global energy sector to achieve net-zeroemissions by 2050. This scenario also assumes key energy-related SDGs are achieved through universal energy access by 2030 and major improvements in air quality. NZE is built upon the idea that a global increase in electrification supports the journey to net-zero.It assumes that an aggressive carbon price is set in Canada, the U.S. and Australia. It also assumes the power sector reaches net-zeroemissions by 2035 in advanced economies while natural gas capacity is stable to 2030 and declines significantly into 2040. Like the SDS, NZE assumes that beyond wind and solar, the energy system relies on batteries, storage and some level of CCUS and hydrogen. In 2024, we reviewed the findings from the climate scenario analysis and updated the management response accordingly.

| TransAlta Corporation |     | 2024 Integrated Report |     | M97 |

Management’s Discussion and Analysis Key Climate Scenario Findings In 2021, TransAlta used climate scenarios from the IEA World Energy Outlook 2020 to analyze the resiliency of our business and determine specific risks and opportunities for our individual assets. All three scenarios present opportunities for TransAlta’s growth related to renewables, storage solutions and ancillary services. Our scenario analysis at that time determined that our wind and solar assets had the highest prospects for growth. Under all scenarios, hydro remains a valuable asset as it allows for expansion to include storage. Findings outlined below may not reflect currently available climate scenarios or policy frameworks. We continue to monitor climate-related risks and opportunities that may impact our business over time. For further information, refer to the Managing Climate Change Risks and Opportunities section in this MD&A. The following sections highlight TransAlta’s top risks, opportunities and management response across all scenarios. Top Identified Climate-Related Risks by Scenario (2021)

|             |     | Increased clean energy                                                                                                                                                                                                                                   
 competition                                                                                                                                                                                                                                              |     | Decreased demand of                                                                                                                                                                                                                                    
 natural gas electricity                                                                                                                                                                                                                                |     | Increased operational costs                                                                                                                                                                                                                              |
| Description |     | Subsidies/funds available for clean energy                                                                                                                                                                                                               
 transition increase as governments aim to grow installed capacity of renewables to meet rising electricity demand and compensate for the closure of carbon-intensive power plants. In Canada, it is expected that major