Risk Type TCFD Category Description Time Control/Strategic Response Physical Risk – Acute Strategy/Risk Management More frequent extreme weather (e.g. cyclones, floods) disrupting exploration or logistics. S–M Integrate extreme weather into emergency planning; assess design resilience; JV operator influence. Physical Risk – Chronic Strategy/Risk Management Long-term sea level rise or temperature shifts affecting asset value, insurance, or infrastructure. L Screen climate projections in longterm planning; evaluate adaptation options; influence JV planning. Non-Physical – Policy & Legal Strategy/Risk Management Changes in carbon pricing (e.g. Safeguard Mechanism, Indonesia ETS) increasing JV operating costs. M–L Include carbon cost in financial models; monitor regulation; reflect in investment decisions. Non-Physical – Technology Strategy Inability to access viable CCS or hydrogen solutions, delaying abatement options. M–L Watch technology readiness levels; review pilot projects; explore collaborative R&D via JVs. Non-Physical – Market Strategy Long-term decline in gas demand due to electrification and renewables. M–L Maintain gas as a transition fuel narrative; explore new regional markets; track global scenarios. Non-Physical – Reputation Strategy/Risk Management Stakeholder concern over GHG emissions intensity or lack of net-zero plan impacting license to operate. M Increase transparency; align with ISSB/TCFD; assess non-operator influence on JV emissions. Non-Physical – Capital Access Metrics & Targets Difficulty securing funding without ESG disclosures or interim climate targets. M Strengthen climate reporting; consider setting intensity metrics; engage with financiers. Non-Physical – Litigation Risk Management Exposure to legal challenges over emissions, biodiversity impacts, or climate disclosure gaps. M–L Ensure regulatory compliance; monitor litigation trends; maintain robust documentation. Non-Physical – JV Misalignment Governance/ Strategy Different risk appetites or priorities across JV partners on climate matters. M–L Raise expectations via JV governance; document preferred positions; seek influence through forums. Opportunity – Energy Source Strategy Rising value of gas in transition scenarios as a firming fuel supporting renewables. S–M Promote gas' transition role in investor communications; position assets in low-carbon portfolios. Opportunity – CCS/Hydrogen Strategy Potential to participate in future CCS hubs or hydrogen infrastructure development. L Track commercial feasibility; map local storage sites; assess JV partner readiness. Opportunity – Renewable Integration Strategy Scope to integrate solar or hybrid systems into facility power to reduce Scope 1 emissions. M Assess off-grid renewables; collaborate with JV operators; build internal capability. Opportunity – Nature-based Offsets Strategy Credible offset options (e.g. land restoration, reforestation) emerging in Australia and Indonesia. M Identify compliant schemes; evaluate cost per tonne; ensure additionality and permanence. Opportunity – Stakeholder Positioning Governance/ Strategy Early action or transparent disclosure may enhance brand and JV attractiveness. S–M Strengthen sustainability messaging; improve ESG ratings; engage key stakeholders proactively. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 19 Cue Energy Resources Limited Annual Report 2025
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