Uniper : Climate Transition Plan - Uniper's path to Carbon Neutrality

Climate Transition Plan

Uniper's path to Carbon Neutrality

Contents

Introduction	03
About Uniper	04
The Context of Our Climate Transition Plan	05
Foreword	06

A Key Partner for the Energy Transition	07
Accelerating the Energy Transition	09
Delivering Energy Security	10
Ensuring a Just Transition	12
The Uniper Way - Enabling a Culture of Transformation	13

Our Decarbonization Ambition	15
Our diversified generation portfolio	17
Our Heritage	18
Reevaluating Uniper's Decarbonization Targets	19

Our Decarbonization Strategy in Practice	20
Transforming Our Portfolio	22
Enabling Our Transformation Through Innovation and Digitalization	24
Risks and Opportunities	25
Financial Alignment with Carbon Neutrality	27
Working with Our Stakeholders	28

Recap of Our Ambition

Governing Our Transition Plan

35

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Introduction

About Uniper

The Context of Our Climate

Transition Plan

Foreword

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Introduction

About Uniper

Uniper is one of Europe's largest integrated power and gas companies with a strong portfolio of assets, sites, and competencies. With more than 7,000 people Uniper is operating around 22.5 GW of power generation capacity in Europe and providing power, heat, and gas to industrial enterprises and municipalities in a reliable and flexible way. While Uniper has a strong focus on its core markets in Germany, the UK, the Netherlands and Sweden, its commodity trading activities make Uniper a truly global energy company. All of this is indispensable for today's energy system and will remain so in the future. Uniper's role is essential to the vitality of the energy system, and Uniper wants to expand and develop its core competencies in power and gas for its more than 1,000 customers, grid operators, and the broader markets. Together with its customers and partners Uniper will gradually decarbonize its energy supply over time. Uniper's businesses have two main missions: ensuring security of supply and accelerating the energy transition towards net zero.

The core element of Uniper's strategy is its commitment to transforming its gas-fired power plant fleet, phasing out coal-fired gener- ation, growing in renewable power, repurposing its sites to support a just transition and continuing to reshape its commodity portfolio to support the long-term development of a hydrogen economy.

With its diverse portfolio and its vast experience of managing energy infrastructure, combined with the expertise of its people, Uniper is on track to execute its corporate strategy that sets the ambition level for its transition journey. Delivering its corporate strategy ensures that Uniper offers a flexible, balanced, and yet bespoke energy supply for its customers, partners and the broader market. This is all part of the ambition to be carbon-neutral across its entire business by 2040.

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The Context of Our Climate Transition Plan

The outcome of COP28 was a call for humanity to transition away from fossil fuels and to accelerate climate protection in this critical decade in order to reach net zero by 2050. It also asked for the world to triple its renewable energy capacity and double its energy efficiency improvements by 2030, making the transition in a fair and equitable way. Countries took part in the first ever global stocktake of Nationally Determined Contributions (NDCs), showing commitment at an international level to continue to drive towards a 1.5°C warming limit. The outcome of the global stocktake was to also call on all countries to accelerate their reductions of non-CO2 emissions, including methane.

European climate commitments

The European Union aims to be carbon-neutral by 2050, putting this net zero ambition at the heart of the European Green Deal, Europe's "man on the moon" moment. With the European Climate Law, the EU has made this a legally binding target. Moreover, as an intermediate step towards net zero 2050, the European Commission aims to reduce carbon emissions by at least 55% by 2030, compared to 1990 levels.

Germany is even more ambitious. Its Climate Protection Act calls for the country to be carbon-neutral by 2045 - five years earlier than the EU - and to be carbon-negative from 2050 onward. Ger- many's intermediate targets are a 65% reduction by 2030 and an 88% reduction by 2040. The Netherlands aims to reduce its GHG emissions by 55% by 2030, and 80% by 2040, and to reach net zero in 2050. Sweden, like Germany, intends to be climate-neutral by 2045. Its intermediate targets are 63% by 2030 and 75% by 2040. Like the EU's, these countries' targets are relative to 2019.

The United Kingdom, albeit outside the EU, has similar ambitions. It plans to decarbonize its power system by 2035 and to achieve net zero across its economy by 2050. These targets are formulated in Britain's Net Zero Strategy (2021) and Powering Up Britain: Net Zero Growth Plan (2023).

Our climate transition plan

The energy sector, which currently emits over a quarter of the EU's greenhouse gases, has a correspondingly large responsibility to decarbonize at a pace that enables the EU and member states to reach their intermediate and net-zero targets. Energy companies are also subject to increasingly strict regulations regarding their environmental, social, and governance (ESG) performance. Under the European Green Deal, new reporting requirements on sustainability have been introduced, such as the EU taxonomy, which defines which economic activities are sustainable, and the new Corporate Sustainability Reporting Directive (CSRD), aiming to contribute to the EU becoming climate neutral by 2050 and to promote sustainable business practices. In accordance with the latter directive, Uniper will report in 2025 for the fiscal year 2024. Within the CSRD framework, companies are encouraged to have an individual climate transition plans which describe their contribution to climate change mitigation and how they plan to achieve their own decarbonization commitments. Having a robust climate transition plan will help to focus on the right priorities and allocating adequate efforts and investments for the transition towards net zero. We at Uniper will support those ambitions for the European energy sector, particularly in our core markets: Germany, the UK, the Netherlands, and Sweden.

Our climate transition plan introduced here reflects our new strategy "Accelerating the energy transition: flexible, balanced, bespoke" and explains how we intend to reach our climate targets and thereby help enable the countries where we operate to reach theirs. The focus of our strategy is for Uniper to produce and procure steadily more green energy, while continuing to help ensure Europe's energy security. We intend for Uniper to achieve carbon neutrality by 2040 and to be more than halfway there by 2030. We aim to decarbonize our business while helping our customers do the same, and keep the energy supply reliable along the way.

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Foreword

As the CEO and Chief Sustainability Officer, I'm pleased to present Uniper's climate transition plan. The climate transition plan sets out the direction for our transformation towards our climate targets, while we continue to assess our progress through internal discussions and with reference to the current industry sector developments. As such, we will utilize this plan throughout 2024 to ensure that we are using the right decarbonization levers within the context of the Paris Agreement. As we continue to make progress towards achieving our decarbonization targets, and develop a robust climate governance and sustainability system, we intend to communicate an extended climate transition plan at the beginning of 2025.

Our climate transition plan marks a key milestone in our decarbonization journey. It is a journey we are proud to have navigated during challenging times for our customers and the wider energy sector, in their need for a secure supply of energy while pursuing the road of decarbonization.

Uniper's journey has been one of resilience and adaptation. Emerging from a rapidly changing energy landscape, and a near collapse of the Company as a consequence from the Russian war on Ukraine and the subsequent complete discontinuation of Russian gas deliveries by Gazprom - one of our main gas suppliers - by August 2022, Uniper has experienced nothing less but a watershed moment. Today, Uniper has set course for a clear transformative path and sets ambitious targets on how we want to achieve our goals.

The way we have navigated the energy crisis and the role we take for our society provides the answer to who we are: We are the beating heart of energy within Europe. In this role, we are aiming to accelerate the energy transition, through investing in green and flexible power generation, with a focus on onshore wind, solar PV, and decarbonized gas-fired power plants, as well as greener commodities such as hydrogen. Our goal is to secure a sustainable energy future while maintaining a reliable and flexible energy supply. Our guiding principle of how we do this is what we call the "Uniper Way." The "Uniper Way" is a reflection of our culture, values, and behaviors. It's about trust, collaboration, and empowerment. It is the bridge that connects who we are, what we do, and how we do it. It empowers us to overcome challenges, embrace change, and enhance our performance. Our people play a pivotal role in shaping this journey.

Our ability to build a robust road map and execute reliably our decarbonization objectives, is closely tied to the diversity of our broad business portfolio and the excellence in expertise and experience of our people. One of our great advantages is that we can use our already balanced portfolio to manage the complexity that energy markets entail.

In August 2023 we announced our new strategy "Accelerating the Energy Transition: flexible, bal- anced, bespoke.", aiming to achieve carbon neutrality by 2040. The focus of our strategy is to expand our green energy supply, while maintaining a stable supply of dispatchable power. Further- more, we will transform our commodity portfolio towards greener gases over time together with our more than 1,000 industry and municipality cus- tomers. We fundamentally believe that the energy transition cannot be successfully delivered without this fine balance. This is why our approach is twofold - increasing our proportion of green and dispatchable power and greener gases, while delivering the stable and flexible energy supply that is needed.

The recent energy crisis made very clear that Uniper has proven to be a system relevant energy provider in Europe. I am pleased to say that after our stabilization we have achieved a strong financial recovery, which builds the key building block to deliver this climate transition plan and achieve the objectives of our corporate strategy announced in 2023.

What is important for me in this decarbonization journey, is that we remain a reliable and trusted partner within Europe, for our stakeholders - for our employees, for our more than 1,000 custom- ers, for our financial stakeholders, as well as for our political stakeholders. Utilizing and sharing our expertise in decarbonization and bespoke energy solutions with our partners will help us all to achieve our goals and is how we will ultimately support the global effort to decarbonize the energy sector.

Best wishes,

Mike Lewis

Chief Executive Officer and

Chief Sustainability Officer

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A Key Partner for the Energy Transition

Accelerating the Energy Transition

Delivering Energy Security

Ensuring a Just Transition

The Uniper Way - Enabling a Culture

of Transformation

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A Key Partner for the Energy Transition

With our corporate strategy, we have committed to developing our business in the context of the objectives of the Paris Agreement to limit the average global temperature increase to 1.5°C. We will do this by leveraging both our strong asset portfolio in power and gas, as well as our experience as a global energy trader, to provide our customers with the energy they need, while transitioning to a sustainable power and gas supply over time.

In August 2023, we announced our new strategy with enhanced ambitions. We have tightened our decarbonization targets, committing to be carbon neutral across our entire value chain by 2040, ten years earlier than originally planned.

For our scope 1 and 2 emissions specifically, we plan to be carbon-neutral already by 2035. To achieve this, we require a robust climate transition

plan which aims to serve as a roadmap to embrace the transformation our Company needs. Our approach to structure our climate transition plan is aligned with the reporting requirements of the CSRD and follows the European Sustainability Reporting Standards (ESRS). It encompasses the appropriate risks and scenario planning to meet our transformation objectives, the corresponding financial planning to materialize them, the development of our climate governance, a clear action plan with concrete levers, and a set of qualitative and quantitative metrics to track progress towards this goal.

Our climate transition plan is the roadmap that lays out our corporate strategic approach to supporting the energy transition while ensuring a just transition to our society. The climate transition plan has the full support of our Supervisory Board and the Board of Management.

Climate as a core principle of our strategy The energy transition in Europe and globally follows some core principles, one of those is sustain- ability. With our new corporate strategy, we are embracing sustainability as one of our core principles to ensure that Uniper undertakes its transformation in a responsible manner.

Our organization is well-positioned to achieve our objectives and make a significant contribution to the European energy transition to a low-carbon economy. Uniper's diverse energy portfolio, combined with a deep understanding of our customers' needs, is what positions us as a key partner for the energy transition.

We recognize the importance of all seventeen of the UN SDGs and fully support them. Ten SDGs that are particularly relevant to our business ­activities, strategy, and material topics, and are prioritized. Of these, four are particularly climate relevant and are directly linked to our climate transition plan, as described in the graph below. Additional information on our ESG activities beyond climate can be found in our separate Sustainability Report 2023.

Uniper. The beating heart of energy.

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Accelerating the Energy Transition

Our corporate strategy is based on the fundamental belief that there is a need for both green and dispatchable power generation, and for greener gases and fuels, to be able to successfully manage the energy system's accelerated transformation towards net zero. Uniper will support this necessary transformation by offering flexible, balanced, and bespoke forms of energy solutions - as an energy producer, trader, and supplier. This will involve adapting our existing power plant fleet, growing our

renewable generation capacity, investing in new flexible power generation and storage units, as well as the production and necessary infrastructure of environmentally friendly gases like green and blue hydrogen. To this end, we have committed approximately €8 billion of planned investments in green transformation, between 2023 and 2030. Our ambition to accelerate the transition is reflected in the following main strategic pillars:

Customer	Green and	Greener Gases	Optimization
Flexible Power

Putting our customers first and supporting their decarbonization efforts with bespoke solutions to fulfil their demand in power and gas. We aim to remain our customers trusted partner and a supplier of choice, when energy markets are transitioning towards net zero. Throughout our own decarbonization journey we will work hand in hand with our customers providing them with the green power and greener gases they need.

Growing green and flexible power assets, with the ambition to reach 80% share of green and decarbonized power portfolio capacity in 2030. This will imply adding renewables assets to our portfolio by investing in our own solar PV and wind onshore assets, transforming our current power portfolio by converting our gas-fired power plants to biofuels or hydrogen, or where possible and appropriate, combining it with carbon capture and storage or utilization (CCS/CCU), particularly in the UK, where its viability is higher due to a favorable a favorable regulatory framework is already in place. We will additionally expand other forms of dispatchable power, such as battery storage. Lastly, we will optimize the value of our hydro and nuclear fleet and grow our renewable Power Purchase Portfolio (PPA) portfolio.

Uniper supplies natural gas to about 1,000 industrial enterprises and municipal utilities. We intend to gradually transform our gas supply portfolio towards an increased share of greener products such as biomethane, hydrogen and hydrogen-de- rivatives, like low-carbon ammonia and methanol, or sustainable aviation fuels (SAF). At Uniper, we aim to become a significant player in greener gases across the entire value chain, including our own production assets and continue leveraging our best-in-class gas midstream business. Further- more, we aim to repurpose parts of our gas storage facilities to hydrogen to provide the necessary volumes and balancing services when they are needed.

Lastly, we aim to excel and expand our existing commercial capabilities to low and zero carbon commodities, to optimize the energy system, balancing supply and demand in real time. Through this approach, we will enable the energy transition together with customers and in our markets, as we are able to leverage our profound capabilities in power and gas system optimization.

In line with our new strategy, we changed our business segmentation starting in 2024. We now have three operating segments: Green Generation, Flexible Generation, and Greener Commodities. This setup will

better enable us to manage our transformation and meet our strategic objectives. It also underscores that our business activities themselves constitute our biggest contribution to mitigating climate change.

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Delivering Energy Security

Our contribution to a secure power supply Ensuring security of supply in a decarbonized energy system in Europe will be challenging. Supporting the transition towards decarbonization while maintaining supply security is a key driver of our strategy. We aim to manage this through shaping an increasingly greener dispatchable power port- folio, and by expanding our hydrogen and derivatives production, imports, and storage activities. This will help to decarbonize hard to abate sectors, particularly enabling the transition of our industrial and municipal customers.

The transition of the gas sector is still in a very early stage, requiring significant investments into new technology and infrastructure development. For the power sector, the challenge is mainly related to the nature of renewable power as an intermittent supply source, which requires large scale dispatchable capacity for balancing this intermittency in the system.

Uniper's flexible generation portfolio

With our highly efficient and flexible portfolio of

8.5 GW gas-fired generation capacity in Europe, Uniper will continue to play a key role in providing the stable and secure power supply that is needed, given the flexibility these gas-fired power plants provide. Today, with our current power plant port- folio, we are providing various types of flexibility products, such as ancillary services, balancing power and back-up capacity. In the longer term, Uniper aims to stepwise convert parts of those gas-fired power plant capacity to either run on sustainable fuels like biofuels or hydrogen or be equipped with CCS/CCU technologies. Thus, pro- viding the security of power supply in a decarbon- ized system. The need for this additional clean dis-

patchable power, or balancing technologies incl. batteries, is being recognized in several European countries. For instance, in Germany, hydrogen-ready power plants are covered by the Power Station Strategy (Kraftwerksstrategie) announced in Feb- ruary 2024. According to this strategy, investments into new gas-fired generation capacity, and the conversion of gas-fired power plants to be able to switch to the use of hydrogen between 2035 and 2040, will be financially supported. Whether the use of CCS/CCU technologies in the power sector will also be supported in Germany is currently under discussion. In the UK, CCS/CCU is planned to play a crucial role in the energy transition towards net zero.

Our contribution to the hydrogen economy While many sectors in the EU will decarbonize through electrification, some hard-to-abateindustries and partially the transportation sector, will rely on the decarbonization of their feedstocks and fuels. According to the IEA's Net Zero Emissions scenario (NZE) the share of sustainable gases of overall final gaseous energy consumption globally will be around 60% by 2050 and hydrogen will provide the lion's share of it. Uniper's hydrogen strate- gy, to produce, originate, and supply hydrogen to industry customers in its core markets, is therefore perfectly in line with the necessary transition towards greener gases in the hard-to-abatesectors. The long-termtransition to a hydrogen economy is also emphasized in the European Union's and Ger- many's updated hydrogen strategies announced in 2022 and 2023, respectively. With these strategies, the EU aims to produce and import ten million metric tons each of renewable hydrogen by 2030. Germany aims to install around 10 GW of electrolysis capacity, sufficient to provide 30-50%of

Germany's national hydrogen demand. The other 50-70% will need to be imported. Here, the development of the necessary infrastructure still needs to be concretized and adequate support mechanisms need to be implemented.

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