Board oversight The recognition and management of risks are outlined in the Company Charter, available in the Corporate Governance section of our website. The specific responsibilities are summarised below: Board – Review all risks, including climate-related risks and opportunities, and ensures they are appropriately managed to support the Company’s business strategy. – Understands the material risks faced by the Company and ensures appropriate risk management strategies and control measures are in place and actively implemented. Operational Risk and Sustainability Committee (ORSC) – Sets, reviews, and recommends relevant risk policies, practices, frameworks, targets, and performance. – Is assigned, under its Charter, the responsibility for approving environmental policy and monitoring progress, including responses to climate change. Chief Executive Officer (CEO) – Accountable to the Board for the implementation of climate policies. – Responsible for the day-to-day operational oversight of climate risks and opportunities, including the management of climate-related objectives and targets. Management and Staff – Responsible for identifying, assessing, and managing risks as described in Cue’s risk register. Strategy Cue produces oil and natural gas for markets in Asia and Australia, with a portfolio that is risk assessed through both near-term demand fundamentals and longer-term climate transition risks. The investment rationale for Cue’s portfolio is based on the continuing role of gas and oil in supporting reliable regional energy systems, combined with disciplined management of climate-related risks. Cue recognises that transition risk may affect demand, costs, regulation, and access to capital, and therefore incorporates carbon pricing, emissions performance, regulatory change, and joint venture influence into risk assessment and investment decision-making. However, climate-related financial, market, and socio-political risks also present opportunities, particularly in the increasing use of natural gas as a complement to renewable energy and as a lower-emission alternative to coal. Product demand Cue draws on various external and internal analyses to assess the ongoing demand for its products. Time Horizon Demand Short Term – The Australian Energy Market Operator’s (AEMO) 2026 Gas Statement of Opportunities (GSOO), highlights rising risk of peak-day shortfalls and seasonal supply gaps in the southern states beginning in 2028, with annual supply gaps projected from 2029. In its June 2026 interim report, the ACCC forecasts that more investment will be required to meet long-term gas demand in the east coast. – The Indonesian government continues to support domestic energy security with production targets of one million barrels of oil per day and 12 Bcf/d of gas by 2030. Medium to Long Term – The Australian Government’s Future Gas Strategy states that under all credible net-zero scenarios, natural gas will be needed through to 2050 and beyond, although its production and use are expected to evolve. – Southeast Asia oil demand is forecast by the IEA to grow from 5.1 mmbopd in 2024 to 6.1 mmbopd in 2035 under the stated policies scenario and remain stable to 2050. Gas demand in Southeast Asia under the stated policies scenario is forecast to increase by 33% between 2024 and 2035, continuing to increase a further 10% by 2050. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 18 Cue Energy Resources Limited Annual Report 2026
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