Our approach to resilience analysis consists of two main components: assessing and managing transition risks and opportunities, and conducting physical climate risk assessments. Transition risks stem from a shift to a low-carbon economy and encompass factors such as new regulations, technological innovation, changing market dynamics, and shifting consumer preferences. We have effectively mitigated these risks by transforming our business model from fossil fuels to renewable energy, aligning our operations with a 1.5 °C climate trajectory. This proactive shift has positioned us well to capitalise on the increasing demand for renewable energy deployment.

Transition risks and opportunities are integral to the business cases for our investments in new assets, technologies, and activities. We actively monitor market developments and regularly update our business cases to ensure alignment of mitigation actions with evolving conditions, maintaining a focus on delivering value to our investors.

In particular, we recognise the potential for political shifts in the US to impact the prioritisation of renewable energy policies. To address this risk, we maintain continuous monitoring of political developments and regulatory frameworks, adapting our strategies to align with changing circumstances. By closely engaging with stakeholders and leveraging our diversified portfolio and global operations, we aim to ensure resilience and flexibility in responding to such transitions. This proactive approach allows us to remain well-positioned in the face of evolving political landscapes.

Physical climate risks are assessed through design safeguards and business case impacts. The design safeguard evaluation ensures the structural integrity and resilience of assets against climate hazards using region-specific data. Our analysis focuses on offshore, onshore, and bioenergy assets that have reached final investment decision, representing critical components of our portfolio.

The business case impact assessment is conducted at a high-resolution, asset-by-asset level under the SSP5-8.5 worst-case scenario. This conservative approach ensures resilience measures address severe climate risks and protect long-term operational and financial stability. The scope includes offshore and onshore assets currently generating across our operating markets, representing the majority of our climate risk exposure.