ASX Ltd

BOARD|MERCURY BOARD Establishes the purpose and strategic direction, oversees and approves risk management strategy and risk appetite and monitors progress against climate-related risks, metrics and targets. Climate-related risks and opportunities form an integral part of Mercury's overall risk management framework. All key climate-related risks and opportunities are approved by the Board. In addition to reporting from the Risk Assurance and Audit Committee (RAAC), the Board receives quarterly updates on key sustainability trends and issues. RISK ASSURANCE AND AUDIT COMMITTEE A sub-committee of the Board, the RAAC supports the Board in overseeing risks and opportunities including climate-related risks and opportunities and on the assurance of the CRDs in relation to compliance with the NZ Climate Standards.|||||| ||Periodically reviews Mercury's Risk Management Policy and Framework, to ensure these remain fti for purpose, with appropriate and effective risk management strategies in place.||Quarterly review of risk reports from management. Each year, the May quarter review includes climate-related risk assessments and endorsing updated scenarios used in Mercury's identifci ation of key climate-related risks and opportunities.||Reports to the Board on the outcomes of RAAC meetings, including discussion concerning risks and making recommendations to the Board.|| |EXECUTIVE|CHIEF EXECUTIVE AND EXECUTIVE MANAGEMENT TEAM Overall accountability for actions and commitments to embed climate change into risk management, business strategy and planning, budgeting processes and frameworks. Includes identifying, considering and monitoring climate-related risks and opportunities and reporting to the RAAC and the Board. RISK MANAGEMENT COMMITTEE The Risk Management Committee (RMC) is a committee of the Executive Management Team (EMT) chaired by the Chief Executive. It meets quarterly.|||||| ||Promotes risk awareness and appropriate risk management to staff. Monitors and reviews risk activities at its quarterly meetings.||Reporting is primarily developed by Mercury's internal experts through the Risk Assurance Team which includes a Risk Assurance Offci er to co-ordinate management of all company risks. Climate-related risks and opportunities are reported to the RMC through facilitation by the Sustainability Team.||When appropriate, management engages third-party experts for services such as auditing, specifci climate research or strategic management consultants.|| ||EXECUTIVE Ensures the risks in each business area are identifei d, understood and managed and monitored and escalated appropriately.|||||| ||Implements risk mitigation strategies approved by the RMC and RAAC, and where applicable the Board.|Reviews quarterly sustainability updates.||Monitors emerging and developing risks. For climate-related risks and opportunities this is facilitated by Mercury's Sustainability Team which reports to the General Manager Sustainability. Oversight of risk reporting is performed by the risk assurance team which reports to the Chief Financial Offci er.||Preparation and presentation of climate-related risk reports to the RAAC. These reports include action taken to mitigate risks previously disclosed.| ||Management remuneration includes incentives tied to climate-related risks and opportunities.|||||| At an operational level the identification and day-to-day management of climate-related risks is dispersed throughout Mercury.

##### Management's oversight of climate-related risks and opportunities

The CEO is responsible for, and reports to the Board on, sustainability matters. The CEO approves ASX's sustainability agenda and priorities, which include taking action to mitigate climate-related risks and pursuing identified climate-related opportunities.

ASX's approach to sustainability is driven by the Sustainability Working Group (SWG) which is chaired by the Chief Financial Officer. The SWG comprises a mix of ASX's executive management team and senior employees.

The purpose of the SWG is to consider the current and emerging environmental, social and governance (ESG) issues relevant to ASX's business, to identify and manage any emerging ESG risks and to pursue value-creating ESG opportunities. As part of fulfilling its purpose, the SWG is responsible for the coordination and implementation of ASX's sustainability initiatives across the group.

These include the execution of initiatives to minimise ASX's operational impact on the environment, developing business opportunities related to the transition to a low carbon economy, and identifying ways to support issuers in adopting climate change disclosures.