INTRODUCTION

Over the past five years we have improved our capability to identify, assess and manage climate-related risks and opportunities. Our governance approach and disclosure of these risks and opportunities has evolved over this period. Our integrated strategy considers climate-related risks and opportunities, and we have made changes to our governance frameworks and remuneration models to ensure that the Executive Management Team (EMT) have appropriate oversight of, and are actively assessing and managing, these climate-related risks and opportunities. A summary of the key findings in this report are: • Material climate-related risks and opportunities have been the subject of regular discussion by our Board and EMT since 2018. • Scenario analysis completed in FY21 was revised in FY22, with two scenarios created based on: (1) a 1.5-degree future; and (2) a 3-degree (‘lack of meaningful intervention’) future. We plan to participate in development of energy sector scenarios to support future scenario analysis. • Based on these scenarios, we have updated our view of climate-related opportunities and risks that could affect our business. • Climate-related opportunities in our

‘top 5’ include the increase in electricity demand and consumer / investor desire for renewable generation. • Climate-related risks in our ‘top 5’ include regulation that does not balance the energy trilemma, extreme weather events and increased temperature. • We have broadened our disclosure on how our strategy remains resilient to these risks and supportive of capturing these opportunities. • We are currently considering the further actions we can take to reduce our own emissions to ensure we are doing our part to mitigate climate change. Further details of these actions, and the related investment required, are likely to form the basis of our transition plan in future years.

This section of the report contains several forward-looking statements. We have prepared the information in this section, including statements as to the financial impacts of climate change, with due care and attention. This information is based on numerous current assumptions about Mercury’s present and future strategies and the environment in which Mercury will operate in the future. The risks and opportunities described in this section of the report may not eventuate. If they do, there are many factors that could cause Mercury’s actual results or performance to differ materially from that described. No representation is made as to the accuracy, completeness or reliability of this information. Given the nature of this information, Mercury shall not be required to update or revise any forward-looking statement. Nothing in this section of the report should be interpreted as capital growth, earnings or any other advice or guidance.