Climate Change Related Disclosure Report

NAPIER PORT PUBLISHES CLIMATE CHANGE RELATED DISCLOSURE REPORT Napier Port today publishes its inaugural Climate Change Related Disclosure Report, seeking to provide stakeholders with an understanding of the potential financial implications of climate change on the business. The report has been prepared in accordance with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). This year's report sets out our governance of climate-related risks and opportunities over a 50-year timeframe and describes our processes for identifying, assessing and managing climate-related risks, and considers how those risks are integrated into our overall risk management. Napier Port will review these risks at least annually to ensure they reflect material changes. A 'whole of port' climate change risk assessment was undertaken, looking at infrastructure resilience, trade forecasting, land levels, weather conditions, emergency preparedness and habitat modification, which identified 53 climate-related risks and opportunities. Impacts identified as most material to Napier Port Physical Risks (in particular due to our coastal location and susceptibility to sea-level rise): o Increase in sea level, leading to inundation o Extreme rainfall events, affecting our storm-water system o Erosion, particularly shingle movement during swell events o Drought, particularly its impact on our meat and horticulture customers Transition Risks (risks and opportunities from transitioning to a lower-emission global economy): o Government regulation regarding a shift to the low-carbon economy resulting in higher fuel costs o Government regulation to encourage the shift to alternative fuels o Shipping, particularly ship to shore power connecting to a 'green' grid o Rail, as a material increase in use would require changes to our operations and infrastructure. At this stage, we do not consider that the effects of climate change materially change our overall strategy as: o Sustainability is embedded into our ways of working o Asset management plans and our infrastructure masterplan address larger financial infrastructure improvements over the medium to long-term o We are completing more detailed investigations of physical climate-change effects and will then include mitigations of these into our Master Planning and procurement processes as they are reviewed and updated. Greenhouse Gas Emissions We have undertaken further work on defining our greenhouses gas emissions inventory to enable a better understanding of our emissions profile. We have reported on our Scope 1, Scope 2 and limited Scope 3 emissions for a number of years on our website and are currently improving our reporting systems, with 2022 being the first complete year of emissions measurements using expanded Scope 3 definitions. Our Sustainability Strategy, the Climate Change Related Disclosure Report and Master Planning are available at www.napierport.co.nz ENDS For more information: Investors Kristen Lie Chief Financial Officer DDI +64 6 833 4405 E: kristenl@napierport.co.nz Media Jo-Ann Young Communications Manager DDI: +64 6 833 4521 E:joanny@napierport.co.nz About Napier Port Napier Port is New Zealand's fourth largest port by container volume. We are the main gateway for Hawke's Bay exports and operate a long-term regional infrastructure asset that supports the regional economy. Our strategic purpose is to collaborate with the people and organisations that have a stake in helping our region grow. View Napier Port's investor centre: www.napierport.co.nz/investor-centre/ End CA:00382794 For:NPH Type:GENERAL Time:2021-11-12 13:38:30