This section outlines the Cue Energy Resources approach to climate disclosure and managing climate risk. It is structured inline with Taskforce on Climate-Related Financial Disclosures (TCFD) recommendations, using its recommended headings: – Governance – Climate Change Statement – Strategy – Risk management – Metrics and targets 1. Statement on climate change from the chief executive Cue recognises the scientific consensus of climate change and that climate change will affect our community and environment. Our world has begun a transition to a low carbon economy in which the responsibility of contributing to a low emissions world is shared by everyone, including our company. We all have a role in the transition into the energy future while we also ensure that our customers and the communities we serve enjoy access to reliable and secure energy at feasible prices. Our climate strategy places us in the centre of this energy trilemma. Energy markets over the past year have illustrated the importance of addressing all aspects of the trilemma carefully and together. In our Australian home, energy markets have been constrained, leading to higher prices, and pressure from regulators to maximise gas production. Gas will play a critical role in supporting renewables in the East Coast electricity market as coal fired generation is phased out, and offers one of the most important sources of emissions reductions in Australia. Indonesia, the world’s fourth-most populous country, has set a target of becoming an advanced economy, and the world’s fourth-largest economy, by 2045. This is a significant leap ahead from its current position where GDP per capita is 30% lower than the world average. These ambitious targets are combined with a commitment to reach net zero emissions by 2060. To make this dual transition, Indonesia urgently needs gas to replace coal for electricity generation and industrial heat. Gas has an ongoing role supporting the development of renewables in Indonesia, and the transition will not occur without it. Cue’s New Zealand hydrocarbon production is subject to emissions pricing in New Zealand. Under the New Zealand Emissions Trading Scheme, Cue purchases credits that offset emissions from our share of the Maari production facilities. The emissions trading scheme has the economic effect of disincentivising wasteful emissions and rewarding renewable or low carbon initiatives. At Cue, we are proud to help deliver the energy needs of these countries in a way that is making a step change in emissions reductions at the same time that we are supporting human wellbeing in access to reliable and affordable energy. We are also taking responsibility for our own emissions and, where it’s practical, we reduce our carbon impact and support our joint venture partners to reduce the carbon footprint of projects that we are involved in. Our corporate offices in Melbourne and Jakarta have reduced our carbon footprint, which is itself very small and we offset these emissions by planting trees. Cue recognises and support global efforts to reduce climate change through clear and meaningful policy and market settings. We believe a collaborative transition is necessary to ensure the success of the transition and recognise that pricing carbon emissions is likely to be a policy utilised for achieving emissions reductions. Specific steps we are taking to help reduce carbon intensity while continuing to provide for energy needs include doing the following: – We actively identify, manage, report and mitigate material climate risk to our business, and report our governance, strategy, risk management targets and metrics; – We meet the carbon reporting requirements of the regions we operate in; – We promote the benefits of gas as a lower-emitting transition fuel that supports energy reliability and affordability, and is a strong companion for renewables; – We review and implement opportunities to reduce the carbon impact of our operations; – support our joint venture partners to look for and implement low carbon solutions; and – We respond meaningfully to stakeholder views and expectations around climate change as it relates to our activities. This report sets out our assessment of the business risks linked to climate change and how we manage them. We see opportunity in supporting the transition as well as a concern to manage our footprint responsibly and in the interest of shareholders and the wider community. We are pleased to present this report on our progress. Matthew Boyall Chief Executive Officer Taskforce on Climate–Related Financial Disclosures (TCFD) Statement 19 Cue Energy Resources Limited Annual Report 2023
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