Risk Management Identify, Assess and Manage Climate Related Risks The Company follows a robust Risk Management System Framework. Climate-related risks are evaluated alongside broader business risks and recorded in a central risk register, which assesses controls, assigns ownership, and monitors mitigating actions. These risks are reviewed regularly, incorporating operational considerations, industry developments, peer benchmarks, shareholder feedback, regulatory updates, and internal analysis by staff and contractors. Oversight of climate risk management is conducted through internal reviews by the Board’s Operational Risk and Sustainability Committee. The Chief Executive is accountable for climate risks, including those associated with individual assets and financial investments impacted by climate change. These risks have potential financial and operational implications, affecting overall profitability. 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. Calculating Climate risk The economic impact of climate risk includes quantification by Cue utilising carbon-pricing mechanisms. In New Zealand, the Emissions Trading Scheme (ETS) sets a market-based carbon price. New Zealand Units (NZUs), representing one metric tonne of carbon dioxide or its equivalent in other greenhouse gases, are purchased and surrendered by Cue for the Maari production asset. NZU prices and emissions forecasts are incorporated into sensitivity testing. In Australia, Cue is not currently subject to a mandatory carbon pricing scheme. However, project and investment assessments factor in a range of potential carbon pricing outcomes. Likewise, in Indonesia, the prevailing carbon pricing regulations do not currently apply to Cue’s operations. The Company monitors various emerging policies and regulatory frameworks that could impact asset value and operational performance. Given the evolving nature of carbon pricing mechanisms and rapidly changing policy environments across the countries in which Cue operates, or is evaluating projects, carbon price modelling is based on the best available information and estimates at the time. For physical climate risks across all asset interests, the Company maintains comprehensive insurance coverage and regularly participates in technical review meetings to assess engineering and infrastructure vulnerabilities. Metrics and Targets Emissions As Cue is a non-operating participant in all producing assets, emissions data is primarily obtained from asset operators. Reported emissions are based on the most recent information available from asset operators at the time of reporting and remain subject to revision should operators subsequently update underlying emissions data or methodologies. – Maari, New Zealand: Scope 1 emissions are based on operator-supplied data calculated in accordance with the New Zealand Emissions Trading Scheme (ETS) methodology. – Sampang and Mahato: Scope 1 emissions are based on operator-supplied data compliant with SKKMigas (Indonesian upstream regulator) reporting requirements. – Onshore Australia: Scope 1 emissions are estimated using operator-reported activity data and calculated in accordance with the NGER methodology. Scope 2 emissions are reported from the Sampang PSC and Onshore Australia, where grid electricity is used for gas plant processes. Additional Scope 2 emissions are reported from the Company’s corporate offices in Melbourne and Jakarta and Cue’s Samarinda field site. Reported Scope 1 and Scope 2 emissions represent Cue’s equity share of emissions from its producing assets, together with emissions from Cue-operated corporate locations. Task Force on Climate–Related Financial Disclosure (TCFD) Statement continued 21 Cue Energy Resources Limited Annual Report 2026
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