What potential locked-in GHG emissions exist from key assets and products, and how might they jeopardize GHG reduction targets and drive transition risk? Are there any objectives or plans (CapEx, CapEx plans, OpEx) to align economic activities (revenues, CapEx, OpEx) with the criteria established in Commission Delegated Regulation 2021/2139?

1. Explanation of Potential Locked-in GHG Emissions from Key Assets and Products Locked-in GHG emissions refer to emissions that are difficult or costly to reduce due to existing investments, infrastructure, or business models. These emissions can occur from long-lived assets or products that continue to generate emissions for their useful lifetime (e.g., buildings, machinery, vehicles), or from products whose emissions are embedded in their lifecycle (e.g., high-emission products). Key Assets and Products Contributing to Locked-in Emissions: Provide a list of key assets or products that contribute to locked-in GHG emissions (e.g., coal-fired power plants, natural gas infrastructure, high-emission manufacturing processes). Describe the nature of these assets and why their emissions are difficult to reduce or eliminate in the short to medium term due to: Long asset lifecycles (e.g., fossil fuel-based infrastructure). Significant capital investments that make early retirement or retrofitting challenging. Technological limitations (e.g., difficulty in decarbonizing certain industrial processes). Impact on Emission Reduction Targets and Transition Risks: Explain how these locked-in emissions may jeopardize the company’s ability to meet its GHG reduction targets. Timeline mismatch: Locked-in assets or products may continue to produce emissions beyond the target years for achieving net-zero goals (e.g., continuing operation of coal plants until 2040 while aiming for net-zero by 2035). Transition risks: Explain how locked-in emissions can expose the company to transition risks, such as: Regulatory penalties or carbon pricing due to high-emission activities. Stranded asset risk, where investments in high-carbon assets may lose value as the market and regulations shift toward greener alternatives. Reputation risk from customers, investors, or stakeholders who demand faster decarbonization. 2. Explanation of Any Objective or Plans (CapEx, CapEx Plans, OpEx) for Aligning Economic Activities with Criteria Established in Commission Delegated Regulation 2021/2139 Commission Delegated Regulation 2021/2139 (EU Taxonomy): The regulation defines the criteria for determining whether an economic activity is environmentally sustainable, and it includes specific requirements for climate change mitigation. Companies must align their activities with these criteria to be considered sustainable in the context of the EU Taxonomy and related financial regulations. Aligning Economic Activities (Revenue, CapEx, OpEx) with EU Taxonomy Criteria: Objective: Describe the company’s goals and strategies for aligning its economic activities (including revenue streams, CapEx, and OpEx) with the EU Taxonomy criteria. This may include: Transitioning revenue toward green or sustainable activities (e.g., renewable energy, sustainable products, circular economy solutions). Redirecting CapEx toward sustainable infrastructure (e.g., investment in renewable energy generation, sustainable buildings, energy-efficient technologies). Optimizing OpEx for lower carbon operations (e.g., reducing energy use, implementing sustainable supply chain practices). Specific Plans and Investments: Detail the specific plans for capital investments and operational expenditures related to transitioning to sustainable activities. This may involve: CapEx Plans for green infrastructure (e.g., investing in wind or solar energy, electric vehicle fleets). OpEx Plans for decarbonization (e.g., operational costs related to energy efficiency, carbon footprint monitoring systems). Revenue Shifts: Disclose how the company plans to increase revenue from Taxonomy-aligned activities and reduce dependence on activities that are not aligned with EU sustainability goals. Timeline and Monitoring: Provide a timeline for achieving alignment with EU Taxonomy criteria and specific milestones for integrating sustainable practices into the company’s business model. https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#4793