Cue Energy Resources Limited Annual Report 2024

4.3. Risk types and controls The table of risks below uses the following time horizon categories: Short - 0-5 years, Medium - 5-10 years, Long - 10+ years. Risk type Recommendation Description Time Control Non physical risks Policy and legal risks Litigation against companies and/or directors on climate grounds (claiming causation or seeking greater action to mitigate effects) could have reputational, development and operating cost impacts. Risk of regulatory backlash against ESG initiatives. Changing regulations including banks and restrictive regulations, taxes and emissions limits across all jurisdictions risk viability of projects. s, m, l Board and management understand their fiduciary duties around climate change risk. Internal processes include due diligence and joint venture processes to identify and manage climate risk. Monitoring the jurisdictions where we undertake activities. Strategy of diversifying jurisdictions to mitigate changes on any individual regulatory environment. Reporting on climate related governance, strategy, risks and targets. Reputational and social license risks Stakeholder disengagement and oppositional activism. Loss of social license, leading to project delays or stoppages. Recruitment and retention risk. s, m, l Manage environmental performance. Due diligence screening of commercial opportunities and joint ventures Financial risks ESG investing affects availability and cost of capital. Insurance premiums increase. Potential for classes of assets and locations to become uninsurable. Capital cost increase if new environmental standards require more expensive supplies relative to alternatives. Carbon pricing adopted across jurisdictions, or inconsistently between them. Changes to price and cost forecasts result in stranded assets or reserves. s, m, l s, m, l m, l s, m, l s, m, l Shadow price on carbon to sensitivity testing in investment decisions. Due diligence screening of commercial opportunities and joint venture processes. Assurance relating to insurance forecasts. Access to a range of funding options. Reporting on climate related governance, strategy, risks and targets. Jurisdictional diversification to avoid impact on sudden, unilateral changes, confiscation or value destruction by regulation. Taskforce on Climate–Related Financial Disclosures (TCFD) Statement continued 21 Cue Energy Resources Limited Annual Report 2024

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