Geo Energy’s Enterprise Risk Management (ERM) Framework is overseen by the ERM Working Group, which comprises the Group Chief Executive O"cer, Group Chief Financial O"cer, and Heads of various departments. The ERM Working Group is responsible for the development, implementation and ongoing enhancement of the ERM Framework. Under the ERM Framework, a structured risk identification and assessment process is carried out alongside continuous monitoring and reporting across all areas of the Group’s operations. Key components of the process include: • Risk identification and assessment: At the operational level, annual risk workshops are conducted with key management personnel from the respective business units (the Risk Owners) and members of the ERM Working Group. These sessions identify the Group’s key risks, including climaterelated risks, and corresponding mitigation measures. All identified risks are assessed, analysed and prioritised based on their relative significance. • Risk mitigation planning: The ERM Working Group formulates action plans to mitigate the identified risks, taking into consideration the potential impact, likelihood and cost of implementation. • Risk monitoring and reporting: Each Risk Owner is assigned responsibility for monitoring specific prioritised risk indicators and reporting on the status and e!ectiveness of the corresponding mitigation actions to the ERM Working Group on a regular basis. • Board and Committee oversight: The Group’s principal risks are reported annually to the Audit and Risk Committee (ARC) and the Board of Directors for review. The ARC and the Board assess the adequacy and e!ectiveness of the Group’s risk management framework, internal controls and risk response measures. Performance and Initiatives Key events and evolving trends faced by the Group in 2025 include ongoing coal price volatility, supply chain and transportation disruptions a!ecting the timely delivery of products to customers, changes in government policies and regulatory requirements, heightened cybersecurity and data protection risks, continued exposure to tighten financing and interest rate conditions, and the ongoing management of climate-related and sustainability-related risks and impacts across the Group’s operations. • The ERM Working Group, in consultation with the Company’s ERM consultant, reviewed the Group’s existing risk management processes to identify gaps in current practices and to recommend enhanced practices and appropriate countermeasures for the risks identified. In response to these risks, as well as changes in the Group’s operations and the external business environment, suitable mitigation actions and monitoring mechanisms have been established. • Management, together with the ERM Working Group, conducted a risk assessment update to identify strategic, financial, operational, information technology and regulatory or compliance risks that may impede the achievement of the Company’s strategic business objectives. The identified risks and corresponding mitigation measures were assessed, and the Board and Management reviewed the adequacy, e!ectiveness and integrity of the Group’s overall risk management framework. • The Group manages its environmental and social impacts through its Environmental and Social Management System (ESMS). Supported by structured and systematic processes, the ESMS enables the Group to identify, assess, manage and mitigate material environmental and social risks across its operations. Our Goals and Targets For the year ahead, the Group remains committed to maintaining high standards in its risk assessment and risk management practices. The Group will continue to monitor and address gaps identified within its risk management framework and to implement appropriate countermeasures aimed at strengthening the transparency, robustness and comprehensiveness of its governance practices, in support of responsible and sustainable business conduct. As a leading mining company operating in Indonesia, the Group recognises the inherent environmental risks associated with mining activities, including risks arising from oil, fuel, waste and chemical spills. Where adverse environmental impacts are unavoidable, the Group works closely with on-site personnel and contractors to minimise potential risks and mitigate impacts. The Group’s environmental management approach is aligned with international best practices, including compliance with the ISO 14001:2015 Environmental Management Systems (EMS) standard. In addition, an Environmental and Social Management System (ESMS) has been implemented across all assets, in alignment with internationally recognised frameworks such as the Equator Principles and the International Finance Corporation (IFC) Performance Standards. Environmental Audit At the Group’s mining sites, an environmental audit is conducted on an annual basis. The audit, known as the Audit Sistem Manajemen Keselamatan Pertambangan, is carried out in accordance with Decree of the Director General of Energy and Mineral Resources No. 185 of 2019 (Kepdirjen ESDM No. 185 Tahun 2019). This decree provides the regulatory framework for the implementation, assessment and reporting of the Mining Safety Management System (SMKP) for mineral and coal mining operations in Indonesia. 20 GEO ENERGY | SUSTAINABILITY REPORT 2025
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