This disclosure describes Essential Energy’s material climate-related risks and opportunities, along with governance approaches, business responses, risk and opportunity management processes, and associated metrics and targets. It complies with the Reporting Framework for Climate-related Financial Disclosures for New South Wales (NSW) Government entities (TPG24-33), which is primarily based on the Australian Sustainability Reporting Standard – Climate-related Disclosures (AASB S2).

TPG24-33 contains some modifications and exclusions from AASB S2.

Modifications include describing the effects of climate-related risks and opportunities on an entity’s ‘business model’, rather than ‘business model and value chain’.

Exclusions mean that NSW Government entities are not required to disclose information for:

• performance metrics in remuneration policies
• resilience of the entity’s strategy and business model to climate change
• scenario analyses
• quantitative financial information about the effects of climate-related risks and opportunities
• Scope 3 greenhouse gas (GHG) emissions.

This disclosure voluntarily contains information for Scope 3 GHG emissions, in alignment with AASB S2.

This disclosure is for the consolidated entity, with information for Essential Water¹ and Intium² incorporated, unless otherwise noted.

This is Essential Energy’s first mandatory disclosure according to TPG24-33, building on voluntary disclosures for the previous three financial years, which were aligned with the Taskforce on Climate-related Financial Disclosure (TCFD).