Investor Presentaiton

54 55 Sustainably sourcing our protein and high-risk commodities In the past year, we have performed our first deforestation risk assessment, focusing on Queensland and Northern New South Wales as it is a considerable source of Woolworths Supermarkets' fresh beef. Our analysis approximated sourcing distances based on transport guidelines detailed in our Animal Welfare Policy. As a result, the assessment captured a broad geographic region and did not assess specific properties, identifying that 98% of areas assessed exhibited no or less than 1% of primary forest loss and eight areas had over 1% of primary forest loss in 2021 (based on publicly available data). This is a complex space and we are working to improve our understanding. In F24, we will use our baseline study to continue to assess and understand our footprint, the extent of our interface with areas of primary loss and the drivers of land use change in those areas (e.g. clearing for grazing, approved land management practices, fire, drought and other land uses). This will enable us to implement targeted actions that deliver on our climate and nature-related commitments in relation to beef. TNFD pilot on nature-related risks in the food value chain We participated in the Department of Climate Change, Energy, the Environment and Water's pilot of the TNFD framework, applied across five sectors of national significance, including the food value chain. Our pilot focused on beef and salmon; identifying that most nature-based risk in our value chain occurs in primary production. The pilot reinforced that our suppliers' dependency on nature and capability to measure their impact varied significantly. The measurement of biodiversity in particular was a challenge that required a consistent and location appropriate approach. Definition aside, many of our suppliers and value chains are already measuring the likes of waterway and soil health that can be used or adapted to report against the TNFD. In F24, we will incorporate insights from the pilot to identify and manage nature-based risk. We will focus on priority impact hotspots and dependencies to help us develop and implement solutions to mitigate and restore nature loss in our value chain. We will also participate in the Natural Capital Investment Initiative (NCII) convened by the Climateworks Centre. Our involvement in the NCII will inform our approach to measuring natural capital in our supply chain, focused initially on red meat. Measurement allows us to assign value to natural capital and consider ways to incentivise improved natural resource stewardship and decarbonisation outcomes. Prioritising risk management As part of our alignment with TCFD, we commenced climate scenario analysis in 2020. We have since evolved our approach in response to the latest climate information, better coverage of Group operations, and feedback from the business. The insights from scenario analysis arise from a stress test of our existing strategic priorities against different, yet plausible futures to identify and assess material risks and opportunities. Nature is an emerging focus area for Woolworths Group. In F24, enabled by the TNFD framework, we will work to understand and report on our approach and management of nature-related risks and opportunities. Scenario selection and focus areas¹ As part of this report we have included four physical climate scenarios selected based on plausible warming pathways referenced by the IPCC. 2 These are bounded by a low warming pathway representing a 1.5°C world and a high warming pathway representing a 4.5°C world. The in-between scenarios represent trajectories closer to the current rate of emissions, existing global policy commitments and the Nationally Determined Contributions (NDCs) of Australia and New Zealand (2-3°C warming). When considering climate risk and opportunity, we build on a mix of physical and transition risks across our operations. We also consider risks related to food security. This comprises a mix of physical and transition elements impacting the food and products we sell. • Building upon last year's findings, our transition risks are now more effectively mitigated through inclusion of our transport decarbonisation strategy (page 50). Across physical infrastructure risk, there has been no significant increase in our exposure to losses associated with extreme weather. Flooding remains the key physical risk across all property types. We will incorporate the potential increase of future flood risk into existing site selection and design procedures. Food security remains the most material challenge, with both low and high warming scenarios presenting significant costs to be borne across the value chain. Under low warming scenarios, food security costs are associated with the required decarbonisation of the food supply chain and the potential carbon liability of residual emissions. Under high warming scenarios, food security costs are mainly driven by reduced crop productivity and availability, and associated price increases. How food security costs, under all scenarios, might be absorbed across the value chain is yet toplay out and remains unclear. Annual Report 2023 Woolworths Group 1 highlights Performance 2 Business Directors' review Report 1 CED Bypass A WATER LOVER ORD ROAD CBD Bypass 4 A scenario describes a plausible, but hypothetical, path of development leading to a particular future outcome. Scenarios are not forecasts or predictions - they are 'what if' narratives designed to inform and challenge strategic thinking. 2 IPCC, Climate Change 2021, The Physical Science Basis. Financial Report LO Other information

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