Sustainability Report 2023 30 TCFD category Identified transition driver Risk scores 2030 2050 Policy and Legal Mandatory carbon pricing mechanisms Low Risk High Risk Climate change-related litigation and investigations* Indeterminable Policy-driven decrease in coal demand Limited High Risk Market Strained access to coal finance Limited High Risk Market-driven shift toward renewable and clean energy Limited Moderate Risk Technology Low-carbon transport and machinery for mining operations and logistics Limited Moderate Risk Methane recovery and utilisation opportunities Limited Limited Energy efficiency in mining operations Limited Low Opportunity Reputation Stigmatisation of the coal industry and stakeholder exclusion* Indeterminable Transition scenario analysis results Based on the scenario analysis, a majority of our transition risk drivers are limited in scope in 2030. However, as the world actively transitions towards a lowcarbon economy, the most significant transition risks that our Group faces arise from mandatory carbon pricing, a policy-driven decrease in coal demand, and strained access to coal finance. In addition, moderate risks arise stemming from technologies for low-carbon transport and machinery, and a market-driven shift towards renewable and clean energy. * The analysis was conducted using selected proxy indicators from the International Energy Agency World Energy Outlook 2022 (IEA WEO2022) extended datasets. However, no suitable proxy indicators were identified from the IEA WEO2022 datasets for the two stated drivers and therefore no risk score can be produced. We have also identified two transition opportunities in terms of technology, that being: coal mine methane (CMM) recovery and energy efficiency in operations. The former could be monetised by acquiring and selling carbon credits generated from CMM recovery projects or converting recovered methane into saleable gas. The latter could generate energy savings through investments in low-cost energy efficient solutions. However, relative to the transition risks previously identified, these opportunities would remain limited by 2030 and relatively low by 2050. In addition to the transition drivers described above, there were two transition drivers which we were unable to assess in the analysis. These are the stigmatisation and potential stakeholder exclusion arising from being a part of the coal industry along with climate change-related litigation and investigations. While these drivers lack proximity indicators, we recognise growing stakeholder expectations to reduce coal reliance and increasing attention by legal courts on carbon-intensive industries such as coal mining. In the future, Geo Energy will consider how these identified transition risks and opportunities impact our business through a quantitative scenario analysis. We are cognisant of the negative environmental impacts of our mining activities, and this will be one of the focuses for the us to consider diversifying our business.
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