Responsible Capital Allocation Community Contributions Good Governance & Shareholder Alignment Diversity, Inclusion & Well-Being Climate Action Transparency & Guiding Principles Appendices 63 Market Risks Potential Financial Impact for: Description of Market Risks Our Operators Our Company Summary Shifts in supply and demand for certain commodities based on their real Reductions in commodity prices may impact the applicable operator’s bottom line • Corresponding direct impact to Revenues (e.g. our sales) and potential long-term or perceived impact on the climate. and in serious cases may ultimately render a project uneconomic, which may lead delay (deferral) of Revenues if project placed on care and maintenance to projects being abandoned or placed on care and maintenance until commodity prices recover. By Commodity Changing customer behaviour: Commodities at highest risk: Energy (oil, gas, NGLs) Demand for certain commodities is expected to reduce as a result of the energy Energy producers may encounter reduced demand for their products due to • Potential reduction of Revenues if demand for carbon-intensive commodities transition, which may impact prices. While this trend could be the same across a changing customer behaviour in the energy transition. The level of risk and or assets are reduced due to changing customer behaviour single commodity, in some cases the significance of this risk will vary depending timeframe will vary depending on the carbon production intensity of assets • Potential impact to valuation of Assets on balance sheet (e.g. impairment on the carbon intensity of specific assets. – for instance, low-carbon gas is projected to be competitive in many jurisdictions or write-off of assets) if decrease in demand causes uneconomic assets In the latter case, it is possible that the market will start to fragment between for longer than high-carbon intensity oil. Other non-energy producers may be to become stranded low-carbon and high carbon products, with some customers willing to pay impacted but this shift is more likely to be specific to the carbon intensity of a premium for low-carbon products. a given asset than a blanket trend witnessed across the commodity group.