Investor Presentaiton

58 IN WHICH SCENARIO IS THE RISK MOST MATERIAL Short Medium Long now-2025 2026-2030 2031-2050 RISK MITIGATION AND OPPORTUNITY TIME HORIZON Lower 1.5°C Higher 4.5°C Food security Food security represents the most material and uncertain risk for the Australian grocery sector. Our prices are tightly linked with global markets. The agricultural system will likely evolve into one where the areas harvested increase, but yields decrease due to climate-related factors. While we will be able to maintain our existing product range, if not managed proactively, this could result in lower productivity, and potentially higher costs to us and our customers. The more specific commodity insights we gained will help us prioritise where to focus our sourcing efforts to mitigate climate-related risks. Rapid decarbonisation of the food. supply chain is needed, through a combination of supply and demand-side initiatives. Nature-based solutions that simultaneously contribute to carbon sequestration as well as improve agricultural productivity will play a big part, such as tree planting to provide shelterbelts and incorporation of perennial pastures in livestock production. As food security is such a broad challenge, there is an opportunity to partner across industry and government to achieve the most effective outcome. By proactively identifying where we can take action to strengthen the resilience of our supply chain, both through agricultural productivity as well as diversity of supply, we can continue. to provide value to our customers over the long term. Way forward in F24 Governance With the launch of the ISSB Climate-related disclosure framework, we are preparing for how we best report against this whilst also aiming to align with the TNFD. We will assess climate and nature risks, potential impacts and controls as part of the Group's material risks. 59 Annual Report 2023 Woolworths Group 1 highlights Performance 2 Report Directors' Strategy The scope 3 value chain emissions pilot has provided many learnings and insights that will inform the development of a scope 3 emissions reduction strategy that integrates climate and nature. This strategy will set out how we work across our value chain to enable the implementation of emissions reduction solutions, including those that have co-benefits in nature. Commencing in F24, we will also pilot shadow carbon pricing across critical business areas to accelerate our decarbonisation journey beyond the goods we sell. Business review 3 Methodology for scenario analysis Our key policy and development assumptions are drawn from the Shared Socioeconomic Pathways (SSPs) used in the IPCC Sixth Assessment Report, and adapted to Australian trajectories where possible. These adaptations include the latest Australian Energy Market Operator (AEMO) Integrated Service Plan 2022 for local insights about grid electricity emissions. We drew further national parameters from the CSIRO's Australian National Outlook. Climate scenario analysis before 2022 considered varied population metrics according to the SSPs. This variation dominated all financial modelling because population heavily influences the Group's financial outcomes. Because of that, we have retained a consistent population forecast across all scenarios. Woolworths Group-specific inputs were standard across all scenarios. Material inputs included applying our current climate and nature strategy, a consistent market share, store growth and store mix forecasts. Costs of store-closure impacts relating to previous weather events were extrapolated for the different scenarios. Thisyear, a significant addition included our transition to zero-emissions transport, guided by our recently endorsed transport decarbonisation strategy, rather than relying on national assumptions. Risk management The development of climate change resilience plans for our physical assets and logistics network will continue with mandated resilience measures for new builds and renewals. We will track site-level progress to demonstrate our physical assets' growing resilience. In the coming year, we will use the insights from our climate scenario modelling, and findings from TNFD and natural capital pilots, to explore opportunities offered by nature-based solutions. These learnings can enable us to report on nature-related risks and opportunities. SCENARIO IPCC reference and socioeconomic pathway Population growth AEMO (2022 Integrated System Plan) Australian National Outlook (CSIRO) 1.5°C SCENARIO SSP1-1.9 Sustainability 2.0°C SCENARIO 2.7°C SCENARIO SSP1-2.6 Sustainability Step change Progressive change Green and Gold Thriving Australia SSP2-4.5 Middle of the Road SSP2 4.5°C SCENARIO SSP5-8.5 Fossil-fuelled Development Slow change Slow change Slow Decline As these relate to business strategy they are the same across all scenarios: Slow Decline Existing emissions transition plans (e.g. green electricity, lower emissions refrigerants, Group transport Woolworths decarbonisation) Group inputs Store growth as well as product mix integrated with business forecasts Consistent market share Revenue impacts to stores based on extreme weather-related closures Metrics and targets SBTi's recent release of guidance for forestry, land and agriculture sector (FLAG) organisations requires us to reset our baseline and targets. We anticipate finalising the process in F24. This will see our scope 3 emissions align to a 1.5°C reduction pathway. 4 Report Financial ம Other information

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