Overview Economy Community People Environment Governance & Risk Disclosure GRI & ADX 90GRI 102-29, 102-11, 102-15, 103-3, 201-2 Strategy 1. Scenario analysis As recommended by TCFD, we have undertaken detailed analyses of two distinct and plausible climate scenarios to understand the risks we face and consider the resilience of our business strategy. We chose two of the Representative Concentration Pathways (RCP 4.5 and RCP 8.5) used by the Intergovernmental Panel on Climate Change (IPCC), to align our approach with best practice and leading climate science. These model a defined pathway of increased greenhouse gas concentrations in the atmosphere, which correspond with associated levels of average global temperature rise by the end of the century. The RCP 4.5 scenario considers major mitigation efforts by governments to keep global temperature rise less than 2°C above pre-industrial levels, in line with the 2016 Paris Agreement. Risks in this scenario are associated with decarbonisation activities, although there is still at least 1.5°C of warming and, as a result, physical risks are present. The RCP 8.5 scenario considers a high emissions scenario where governments take no further action to decarbonise and global warming likely exceeds 4°C, resulting in severe and more frequent physical climate impacts on a global scale. Extreme physical risks have implications including supply chain disruption, litigation risk and difficulty securing insurance. 2. Risk assessment process To inform our scenario analysis, we reviewed extensive climate science data and literature from leading credible sources, including the IPCC, whose models and reports consolidate the foremost peer-reviewed climate literature and are used as a central resource by global climate policy decision-makers. We selected time horizons aligning with climate policy and available data and assessed our business strategy against climate risks over the short term (up to 2030), medium term (up to 2050) and long term (2050 onwards). Our methodology assessed climate risk impacts and likelihoods, considering these in the context of our time horizons and current business strategy, while also holding internal stakeholder discussions to understand our business resilience to these risks. Impact was assessed per risk to our business operations, revenue, expenditure, assets and liabilities, and capital financing. Likelihood was determined by the likeliness and frequency by which a risk materialises, and the speed and duration with which major impacts are felt once the risk materialises. This allowed us to capture the nuance of how risks materialise and are experienced over time. The risks that we identified as most material and that we are prioritising for action include: Shareholder pressure, fines, void periods or declines in asset values if we do not comply with enhanced policy and building requirements, with capital expenditures needed to comply with new standards for energy and resource efficiency and climate defence measures. Significant financial market implications in both scenarios, firstly resulting in market disruption as investor and consumer demands shift in favour of more sustainable alternatives. Conversely, if serious climate action is not taken, physical climate risks may lead to severe economic downturn, disrupted supply chains, and reduced consumer confidence. In the medium term, water scarcity, given that we operate in a water stressed region. This will impact our cost to operate and construction of our buildings, and we will likely need to invest in additional water efficiency measures. More frequent, severe and unpredictable extreme weather events. In our region, these extreme weather events are likely to include storms, sandstorms, severe rainfall, drought, and flooding. We will develop our approach to ensure that assets have robust plans in place to address these risks when they materialise and that our new developments are built with resilience in mind. Sea-level rise, which is a significant risk for our region, as the majority of Abu Dhabi’s development is in coastal areas. The coastline of Abu Dhabi may retreat by as much as 3.8km, and our assets could face flooding risk in the long term. We plan to consider investment in flood defence measures as we develop our responsible investing approach and tools. As a business operating in the real estate sector, our top risks are increased costs associated with meeting policy and legislative requirements, and the costs and impacts associated with mitigating or recovering from physical climate events. As the physical impacts of climate change will be felt over the medium and long term, the preparatory action we take now will embed long term resilience-planning into each stage of our assets’ lifecycles. Risk management Responding to the Task Force on Climate-related Financial Disclosures