JSC Atomenergoprom Annual Report

BUSINESS STRATEGY JSC ATOMENERGOPROM / ANNUAL REPORT / 30 The level of sustainability maturity of JSC Atomenergoprom as a company of ROSATOM is regularly confirmed by independent ESG ratings. In 2022, the Russian Analytical Credit Rating Agency (ACRA) rated ROSATOM at ESG-3 and assigned it to the ESG-B category, which corresponds to a very high environmental, social and governance score (the assessment was solicited, and the Company's Divisions participated in the rating process). The assessment took into account information on the performance of the Company's four key Divisions: the Mining, Sales and Trading, Fuel and Power Engineering Divisions, given their significant contribution to the Company's overall performance. JSC Atomenergoprom continues to apply green finance instruments. 2022 saw the second placement of green bonds worth RUB 9 billion on the Moscow Exchange. Compliance of the bond issue with the Green Bond Principles of the International Capital Market Association (ICMA) and with the green finance criteria established by Decree No. 1587 of the Government of the Russian Federation dated 21 September 2021 was verified by the Expert RA rating agency. Overall, by year-end 2022, the Company had raised 19 external green loans (ESG loans and green bonds) totalling more than RUB 200 billion to refinance WPP construction projects and the Akkuyu NPP construction project (Turkey). Assessment of greenhouse gas emissions. Contribution to the climate agenda ROSATOM has conducted a pilot calculation of greenhouse gas emissions for 2022 for its entire cor- porate scope, including JSC Atomenergoprom and its organisations, in accordance with international methodologies (Scope 1 and Scope 2). In 2022, greenhouse gas emissions from JSC Atomenergoprom's companies totalled 18.9 million tonnes of CO₂e, including direct emissions (Scope 1) totalling 16.7 million tonnes of CO₂e 16. The major share of the Company's direct greenhouse gas emissions (93%) is pro- duced by JSC RIR, which manages heating networks in the towns and cities in which the Company operates (mainly coal- and gas-fired CHPPs) to ensure steady energy supply to consumers. As part of its efforts to improve energy efficiency, the Company upgrades its power generation capacities. At the same time, it should be noted that JSC Atomenergoprom's core product, name- ly nuclear power, is a low-carbon energy source, as direct emissions from nuclear power plants are close to zero. In Russia, nu- clear power generation accounts for almost half of the total low-carbon power gener- ation. NPPs currently in operation in Russia help to prevent greenhouse gas emissions exceeding 100 million tonnes per year, or about 7% of total emissions in the country. ~7% GREENHOUSE GAS EMISSION SAVINGS AS A PERCENTAGE OF TOTAL EMISSIONS IN RUSSIA In addition, JSC Atomenergoprom has been developing the wind power business since 2017. At year-end 2022, the Company operated seven wind power plants with a total capacity of 780 MW in the Republic of Adygea, the Stavropol Territory and the Rostov Region. Total contribution of the Company's low-carbon power generation (NPPs and WPPs) to greenhouse gas emission savings in Russia Low-carbon power generation in Russia (the Company's NPPs and WPPs), billion kWh 2020 2021 2022 215.9 223.6 225.3 GHG emission savings in Russia (the Company's NPPs and WPPs), million tonnes of CO₂e 2020 2021 2022 108.4 109.2 110.2 Since 2022, ROSATOM and JSC Atomenergoprom jointly with the Russian Ministry of Energy and other relevant government agencies have been involved in a major national-scale innovative project titled 'Full Life Cycle Low-Carbon Energy'. The Company, along with other nuclear organisations, is working to provide R&D support for the development and implementation of new approaches to developing full life cycle low- carbon energy with a focus on nuclear power generation, hydrogen energy, renewable energy and energy storage systems based on new domestically-developed knowledge-intensive solutions and technologies. 16. Including PJSC Quadra - Power Generation. BUSINESS STRATEGY JSC ATOMENERGOPROM / ANNUAL REPORT / 31

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