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Investor Presentaiton

En+ GROUP En+ Group Annual Report 2021 STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS APPENDICES STRATEGIC REPORT DIRECTOR FOR SUSTAINABLE DEVELOPMENT Task Force on Climate-related Financial Disclosures (TCFD) This chapter of climate risk analysis has been prepared in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We intend to provide our stakeholders with additional information on the principles guiding our approach to climate change, including identified and assessed risks for our assets and measures taken to mitigate and adapt CLIMATE RISK GOVERNANCE STRUCTURE those risks. The conducted climate risk analysis of the Metals and Power segments, which includes transitional and physical risks, was implemented in terms of the Company's consolidated operations in line with the TCFD disclosure. The project on the assessment of climate change risks and opportunities for our value chain is completed. As part of the strategy development, the detailed disclosure in accordance with the TCFD recommendations will be published in autumn 2022. HSE COMMITTEE TECHNICAL OFFICER DIRECTOR FOR CHIEF CAPITAL MARKETS AND FINANCIAL PRODUCTS SUSTAINABLE DEVELOPMENT DIRECTORATE DEPARTMENT OF CAPITAL MARKETS AND FINANCIAL PRODUCTS TECHICAL DEPARTMENT BOARD OF DIRECTORS AUDIT AND RISK COMMITTEE CEO CLIMATE CHANGE TASKFORCE CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER FINANCIAL DIRECTORATE In 2020-2021, the Board and HSE Committee discussed climate-related issues in Governance The Group's climate risk corporate governance system outlines the relationship between the Group's shareholders, the Board, the CEO and the management team, as well as the and duties of the Board 18 out of 43 meetings committees in relation to managing the global climate change agenda. When making strategic decisions concerning climate change, the Group is guided by its environmental policy, whose main objective is the continual reduction of environmental and climate impacts, as well as mitigation and management of related risks, with a view to preventing global temperature rises above 1.5°C. The Board of Directors possesses strong capacity and competence to respond to climate-related risks and opportunities effectively. The Board oversees the implementation of all ESG- related corporate policies, monitors the attainment of the Company's environmental protection and climate goals, performs annual analysis of the progress towards climate change goals and the implementation of activities related to climate change, and makes decisions to revisit the targets and implement new activities that will be included in the business plans. On the subject of climate change, the Board is mainly assisted by the Health, Safety and Environment Committee (HSE Committee). The HSE Committee assists the Board in solving climate change issues. The HSE Committee currently oversees climate-related risks and reports them to the Board of Directors to enable the Board to address these risks. In 2020-2021, the Board and HSE Committee discussed climate-related issues in 18 out of 43 meetings. The main issues related to climate change, which were addressed by the HSE Committee, are as follows: ⚫ Health, safety and environment KPIs Environmental risk management Results of the environmental audits Introduction of the UN Global Compact Business Ambition for 1.5°C initiative • UN Global Compact's SDG Ambition Accelerator Should any obstacles or important matters related to climate change arise that require a decision by the Board of Directors, meetings may be held dedicated specifically to discuss the particular climate issue, in order to make an immediate decision, such as potential acquisitions and divestitures entailing consideration of climate related risks. To manage our pathway to net zero, we have created the En+ Climate Change Taskforce to drive our transformation. The Taskforce is headed by the Chief Operating Officer and reports directly to the Chairman. Each of the transformational verticals is led by a senior executive from our management team. The Taskforce works in continuous collaboration across multiple lines of business. The key objective of the Taskforce is to develop an integrated climate strategy that will enable us to achieve our ambitious net zero GHG emissions goal by assessing climate change risks and opportunities. The Group cooperates with branch managers to stay up to date with the most recent information on risks and opportunities in all regions of operations. KPIs are applicable to management team members to ensure the absence of environmental incidents, accidents, or violations by such members. For the CEO, KPIs also include other sustainability metrics. A detailed list of goals is given in the Metrics and Targets section. Environmental protection activities are carried out in both of our segments by the specialised sustainable development directorate. We are working on the development of a climate risk register covering the Group's assets. Managers at all levels are responsible for the timely identification and assessment of risks, development of risk management activities and communication of risks to all of the Company's stakeholders within their area of responsibility, and also for ensuring that identified risks are included in risk maps for the Group's divisions and in the Group's corporate risk map in a timely and complete manner. 74 75
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