THE UNITE GROUP PLC Annual Report and Accounts 2024 65 Risk & opportunities Acute physical Heat Stress (risk) Flooding (risk) Heat Reduction (opportunity) Description Under all scenarios, we may experience an increase in the frequency and severity of overheating. This could necessitate temporary measures such as additional ventilation or cooling, providing alternative accommodation for the most affected customers, or even closing some rooms for periods without significant adaptations including reducing solar gain, modifying the building fabric or altering building services. Further research is required to understand specific risks and necessary adaptations for each asset. This will help inform long- term asset management plans, budgets, and strategic investment decisions. Flooding can affect our properties, leading to temporary operational disruptions, damage to the assets and, in extreme cases, temporary closure and the relocation of occupants. Also, operations could be impacted by flooding in other areas, which might disrupt supply chains or communications. Under all scenarios (1.5°C, 2°C and +4.°C), there is an increase in the likelihood and severity of flooding. Further analysis is needed to understand how this risk may be mitigated through local flood defence measures. As winter temperatures rise due to climate change, buildings are likely to use less energy for space heating across all future climate scenarios. Warmer winters will reduce the need for heating to maintain comfortable indoor temperatures. This decrease in heating demand will be more pronounced in regions that currently experience colder climates such as the northern parts of the UK. S Short term: 0–3 years – Our highest confidence forecasts including the detailed annual budget and subsequent two years where we have significant visibility in our Business Plan. M Medium term: 3–10 years – Covers the period to our 2030 net zero carbon target, asset transition plans and other regulatory deadlines such as EPC B in 2030 and the useful life of building fit out. L Long term: 10–30 years – The period beyond our forecasting and planning horizon and the age where PBSA can begin to face obsolescence without investment. Time periods CLIMATE-RELATED RISKS AND OPPORTUNITIES TABLES Climate change is one of the principal risks facing Unite Group and risks and opportunities are identified, assessed and managed at a Group level covering all assets and operations. Climate risk modelling is undertaken every three years, last completed in 2024.