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Physical DriversIFRS S2 Driver Category Current Future Implications for Valeura EnergyR1Cyclones and Winds Increase in severity of extreme weather events such as cyclones and strong winds Acute Risk %u2022 Damage to offshore infrastructure and associated costs %u2022 Value chain disruptions %u2022 Loss of land due to permanent inundationR2Extreme HeatIncrease in global mean temperatures Chronic Risk%u2022 Reduced capacity and efficiency of equipment resulting in decreased production and revenueR3Sea Level Rise Increase in rate of sea level rise Chronic Risk%u2022 Damage to offshore infrastructure and associated costs %u2022 Loss of land due to permanent inundation R4Carbon Price Introduction of a carbon pricing mechanism (e.g. carbon tax) driven by stringent environmental regulations Policy & Legal Risk%u2022 Less demand for fossil fuels in favour of lower emission alternatives resulting in decreased revenueR5Exposure to litigation Enforcement and scrutiny on climate-related issues by stakeholders increase the risk of litigation Policy & Legal Risk%u2022 Increased compliance costs %u2022 Increased CAPEX (e.g. investments in new equipment) to meet requirements R6Demand for Fossil Fuels Decrease in demand for fossil fuels, including oil, in favour of alternatives (e.g. renewables) Market Risk %u2022 Decreased demand and associated revenue and profitability lossR7Technology Substitution Substitution of existing technologies with alternatives including the electrification of technologies Technology Risk%u2022 Decreased demand and associated revenue and profitability lossR8Technology Deployment Unsuccessful or delayed investments in new technologies (e.g. carbon capture storage (CCS) Technology Risk%u2022 Increased future compliance costsR9Stakeholder Perception Increased stakeholder concern or negative feedback Reputation Risk%u2022 Reduced revenue from decreased demand for goods %u2022 Negative impact on workforce management and planning (e.g. employee attraction and retention) %u2022 Increased difficulty in accessing capital R10Stranded Assets Stranded assets due to stakeholder pressure Reputation Risk%u2022 Lower valuation of assetsRisk/Opportunity116 2024 SUSTAINABILITY REPORT%uf098 Sustainability at Valeura %uf098 Environment %uf098 Social %uf098 Governance %uf098 Appendix