THE UNITE GROUP PLC Annual Report and Accounts 2024 63 GOVERNANCE Our Chief Executive has overall responsibility for climate-related risks and opportunities, with the Sustainability Committee, a sub-committee of the Board, overseeing climate-related issues. The Committee meets quarterly, reviewing progress towards our 2030 net zero carbon target, climate risk, and performance. See the Sustainability Committee Report on page 106. The Board conducts a formal risk review twice a year (see page 55), which includes climate-related risks. These risks and opportunities are integrated into business planning and investment cases to the Investment Committee, Executive Committee, and Sustainability Committee. This ensures management and the Board are aware of risks and can incorporate them into their planning. Full responsibilities for managing climate-related risks are outlined on page 64. The annual budget for sustainability investments is reported separately, with monthly performance reviews. Several climate and sustainability metrics contribute to overall remuneration. The Remuneration Committee has set sustainability-related performance objectives that form part of both the employee- wide bonus scheme, and the Executive Director’s long-term incentive plan (LTIP) as detailed in the Remuneration Committee report on page 113, which covers performance against 2024 bonus targets. The Sustainability Committee receives updates on best practice, market expectations and climate-related developments from internal and external experts, including advisors, investors, and supply chain partners. Board members also enhance their understanding of climate-related risks through involvement with other businesses. STRATEGY Climate change is a principal risk for Unite Group that could impact our business in the short, medium, and long term. Our ambition and plans to transition to net zero carbon by 2030 are set out in our Net Zero Carbon Pathway, https://www. unitegroup.com/wp-content/uploads/2021/12/38271_ UniteStudents_NetZero.pdf. We face acute and chronic physical risks from climate change, such as extreme weather and flooding. Transitioning to a low- carbon economy presents risks, including shifts in consumer preferences, impacts on property valuations based on climate resilience and energy performance, and evolving regulations. These challenges also present opportunities, as our sector leadership may enhance financial performance and lead to benefits such as reduced winter heating due to climate change effects. All our assets are in the UK, so only UK-specific physical risks are considered. The risk mangement process is detailed in the Risk Management section on page 54. CLIMATE-RELATED FINANCIAL DISCLOSURES The Board recognises the urgent need to take climate change action given the scale of the challenge and potential impact. With domestic properties responsible for c.25% of carbon emissions in the UK, we recognise our responsibility to minimise our footprint and encourage our customers to do the same. Sustainability presents risks and opportunities which are managed in accordance with our overall risk management framework (see page 55) with climate risk specifically identified as a discrete standalone risk. A comprehensive disclosure on climate-related risk is included below, aligned to the Task Force on Climate-related Financial Disclosure (TCFD) and UK Climate- related Financial Disclosure (CFD) Regulations requirements. CFD AND TCFD COMPLIANCE STATEMENT This section aligns with the mandatory CFD framework in The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022. Disclosures are consistent with Department for Energy Security & Net Zero’s mandatory guidance and HM Treasury’s TCFD-aligned guidance. We comply with all CFD and TCFD recommendations, including governance, strategy, risk management, targets, and metrics. We plan to improve our climate-related risk management and disclosures using up-to-date scientific data. The disclosure is consistent with the requirements of the Financial Conduct Authority’s UK Listing Rule 9.8.6(R)8(TCFD). CFD AND TCFD DISCLOSURE The Board has approved a pathway to achieve net zero carbon by 2030 underpinned by science-based carbon targets which have been validated by the SBTi as being aligned with a 1.5°C limit to warming. We aim to increase building energy efficiency and support sustainable living habits. This commitment is shared by investors, customers, suppliers and employees. Our sustainability strategy includes SBTi carbon reduction targets, an energy efficiency target in line with the CRREM 1.5°C trajectory, and a commitment to source 100% renewable electricity by 2030 under the RE100 initiative. In 2024, we refreshed our climate scenario analysis to prepare for and mitigate climate impacts while identifying opportunities. Our Net Zero Carbon Pathway, part of the TCFD Strategy (b) disclosures, is on our website. Since 2020, we have engaged with stakeholders to focus on climate-related critical issues and report accordingly. In 2024, we updated investors on our climate performance and priorities, incorporating their feedback into our sustainability strategy. The Board also considers feedback from students, universities, employees, and local communities to ensure focus on material issues.