2C. RESILIENCE OF THE BUSINESS STRATEGY Our Net Zero Carbon Pathway aligns with stakeholder expectations and enables growth through sustainable development. Real Estate is uniquely positioned to accelerate the low-carbon transition. By addressing the climate- related risks outlined above, this in turn creates significant opportunities. Reducing energy consumption lowers our operating costs, improves net operating income and enhances asset value. Enhanced due diligence for suppliers (particularly in climate-impacted regions), and sustainable procurement strategies helps mitigate transition risks, including rising commodity costs. Meanwhile, strengthening our climate resilience by mitigating overheating and flood risks, supports our customer wellbeing and provides a competitive advantage. Climate considerations are integrated across our financial planning and capital allocation through a range of mechanisms: • Utility costs: We monitor commodity price volatility and usage trends, incorporating mitigation strategies such as energy efficiency investments into budgets. • Acquisitions and disposals: Due diligence evaluates costs linked to net zero commitments, EPC compliance, and utility exposure, reflected in pricing and financial modelling. • New developments: Designed to achieve EPC A and BREEAM Excellent ratings, incorporating resource-efficient technologies (e.g. rainwater harvesting, low-flow fixtures, solar power) and measures to meet Part O overheating requirements. Flood resilience is factored into design and investment appraisals, with higher returns sought where risk remains substantial. 3. RISK MANAGEMENT 3A. PROCESSES FOR IDENTIFYING AND ASSESSING CLIMATE-RELATED RISKS Climate change is a principal risk influencing our long-term decisions, including investment and divestment, and is embedded within our enterprise risk framework. Our objectives, to be a Great Place to Live, Work and Invest are supported by our commitment to achieve net zero carbon by 2030 and reduce resource intensity. We identify and manage climate-related risks through our established governance process. Risks are documented in the Risk Register, assigned to owners, and reviewed by the Executive Committee, with principal risks assessed by the Board twice annually. Portfolio-level assessments • Scenario analysis: We model physical and transition risks under 1.5°C, 2°C, and +4°C scenarios using UKCP18 data and CRREM pathways to test resilience and inform strategic planning. • Regulatory and policy monitoring: The Energy and Environment team tracks climate-related legislation (e.g. MEES, EPC standards) and market trends to ensure compliance and guide transition plans. • Investment & divestment due diligence: Sustainability risks are considered in acquisition and disposal decisions, including location-specific physical hazards and capital requirements for net zero alignment. Asset-level assessments Existing assets: Annual reviews assess: • Transition risks: Energy performance, CRREM 1.5°C pathways, EPC compliance, and retrofit needs. • Physical risks: Flooding and overheating exposure based on UKCP18 projections and historical data. • Reputation risk: Tracked qualitatively through Higher Education engagement metrics, as it cannot be easily modelled under defined climate scenarios. 3B. PROCESSES FOR MANAGING CLIMATE-RELATED RISKS Scenario analysis informs mitigation strategies, such as adaptation measures for physical risks and capital investment planning for transition risks. Mitigation strategies are developed for new developments and acquisitions are reflected in pricing adjustments. Opportunities, including reduced heating demand and utility costs under lower Heating Degree Days scenarios, are also evaluated. 3C. INTEGRATION INTO OVERALL RISK MANAGEMENT Assessment & controls: Each risk is evaluated for likelihood, impact, and residual exposure against our risk appetite. Climate- risk is subject to the same governance, annual review process and management attention as other risks recorded on our Group Risk Register page 56. 4. METRICS AND TARGETS 4A. METRICS USED TO ASSESS CLIMATE- RELATED RISKS AND OPPORTUNITIES Our 2030 net zero carbon commitment, set out in our 2021 Net Zero Pathway, aligns with the Paris Agreement and UK Government goals. This is underpinned by SBTi-approved science-based targets and our RE100 pledge to source 100% renewable electricity by 2030. As we provide all-inclusive rent, customer energy use is included in our Scope 1 and 2 emissions, RISK MANAGEMENT continued THE UNITE GROUP PLC Annual Report and Accounts 2025 70 STRATEGIC REPORT