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In response to challenges in offsite landfill of non-hazardous waste at Jorong Mine, the Company initiated the Waste-to-Product Projects by integrating 3R principles (Reduce, Reuse, Recycle) to transform different waste streams into valuable products and reduce landfill dependency. Initiatives included converting paper and plastic waste into construction materials, using food waste and used cooking oil for fertilizer and soap production. Additionally, new facilities were built to support waste management operations.

Slag Handling Renovation in China

Zouping Power Plant faced challenges managing slag and wastewater due to inefficient transportation and treatment processes. The long distance between boilers and dewatering bins, along with the need for multiples supporting equipment, resulted in high power consumption, increased labor demands, substantial maintenance costs, and risks of wastewater leakage. To address these issues and improve slag treatment efficiency, the plant constructed a new slag silo located between the boilers to mitigate storage constraints and reduce transportation distance. In addition, the slag conveyor system was upgraded to transport and dewater slag simultaneously.

Biodiversity Management Plan in Australia

The site-specific BMP is a sub-plan of the Northern Region BMP, which all underground mine sites are required to develop based on regulatory requirements and the mitigation hierarchy. The baseline data have been collected since the pre-operational phase, covering both terrestrial and aquatic ecology. This includes ecological communities, threatened ecological communities, habitat values, groundwater dependent, threatened flora and fauna species, and riparian areas.

Biodiversity Management Plan in Indonesia

All open-pit mine sites are required to develop a site-specific Biodiversity Management Plan (BMP) based on national regulatory requirements and mitigation hierarchy. The targets of these plans are developed in the form of biodiversity index achievement, ecosystem health ratings, and variety of local plant species in the reclamation area.

Partnership School Project: Developing Equal and Inclusive Education

People Community Relations

Since 2019, Banpu has partnered with the Ministry of Education in the Partnership School Project, supporting 3 schools in Roi Et, Maha Sarakham, and Khon Kaen provinces. The project aims to elevate education quality in rural schools, providing students with access to high-quality education near home, and fostering greater educational equality. This initiative focuses on 6 main aspects: modern management, building strong organizational culture, enhancing teaching skills, developing students from early childhood through secondary education, promoting life and vocational skills, and creating sustainable support networks. As a result, student performance has improved, local community confidence in the schools has strengthened, and the schools have become role models, with teachers actively sharing best practices with others.

Social Return on Investment

People Community Relations

Banpu applies the Social Return on Investment (SROI) framework to measure the impact of community engagement efforts. To date, we have evaluated 7 community development programs across 4 mine sites in Indonesia. In addition, a “Maturity Measurement” approach is applied to assess the sustainability of these programs across 6 dimensions: change, inclusion, organization, cooperation, influence, and sustainability.

Strengthening Safety Performance in Thailand

Performance Occupational Health & Safety

In Thailand, Banpu NEXT emphasizes the importance of safety for contractors, subcontractors, and relevant stakeholders by implementing the Safety Contractor Management Procedure, which focuses on communication of safety protocols, supervision, inspection, and competency evaluation. In 2024, the Company completed safety performance evaluations across 25 construction projects. Additionally, Banpu NEXT EcoServe has continued its leadership commitment activities, Management Safety Visits, involving 30 executives and employees across 20 operating sites. These ongoing activities provide opportunities for on-site discussion, issue resolution, and knowledge-sharing, fostering a deeper understanding of safety practices. The combination of visible leadership, clear communication, and hands-on involvement further underscores the Company’s commitment to embedding safety into everyday operations.

Energy Reduction from Coal Handling in Indonesia

In accommodating customer demand and blending various coal types, the utilization of Low CV coal sourced from third parties has been favored. However, this type of coal tends to cause blockages within chutes during the rainy season, disrupting the seamless transfer of coal between conveyors. Such blockages not only prolong cleanup efforts but also interrupt loading processes. Traditionally, chute blockages were managed using labor-intensive techniques like high-pressure water spraying or manual removal, which were constrained by limited staff availability. In response to the operational inefficiencies and environmental concerns linked to excessive water usage, Bontang Coal Terminal (BoCT) in Indonesia introduced an innovative solution in March 2022: “the installation of air cannons in transfer chutes”. These cannons autonomously release periodic air blasts to clear material buildup. Since implementing this system, remarkable improvements have been observed: • 80% reduction in delays and cleanup times due to chute blockages • 5% increase in gross loading rate • Annual reduction in energy consumption by approximately 538 MWh, leading to a decrease in GHG emissions of around 125 tCO2e per year. These outcomes underscore the effectiveness of the air cannon system in enhancing operational efficiency while mitigating environmental impacts.

Pad of the Future

BKV, a subsidiary in the US, has taken a groundbreaking step towards decarbonization with the Pad of the Future program. This flagship initiative aims to reduce emissions within NEPA and Barnett operations by integrating operational improvements and modern technology. Launched in 2021, the program is a testament to BKV’s commitment to enhancing efficiency and minimizing carbon footprint through 4 strategic pillars: • Pneumatic conversion: Convert natural gas-powered pneumatic controllers to compressed air on existing electrified pads. • Electrification: Where feasible, electrifying pads to supplant use of natural gas in processing units and adding solar power to support pneumatic conversions from natural gas to air. • Asset consolidation: Streamline and modernize existing pad facilities to reduce emissions caused by aging assets. • Liquid consolidation and vapor capture: Minimize onsite storage of condensate and oil by transporting liquids rich in natural gas to centralized facilities. With an estimated investment of 35 to 40 million USD, the program is set to impact over 6,000 of BKV’s existing wells (more than 8,000 pneumatic devices and 2,000 pneumatic pumps) by the end of 2025. To date, these efforts have led to an aggregate reduction of 515,000 tCO2e in 2023 and anticipated reduction of approximately 770,000 tCO2e by the end of 2025.

GREENCODE Digital Platform

ITM, a subsidiary in Indonesia, faced with the challenge of carbon stock data gathering from the reclamation process due to manual data collection and no standard reference. This inefficiency delayed data collection and validation. To pursue this challenge, ITM initiated the GREENCODE project, which is a digital platform and dashboard designed to ensure the validity and visibility of carbon stock data. The project was rolled out at Embalut and Jorong mine. The introduction of GREENCODE has significantly improved the efficiency and effectiveness of reclamation monitoring. It has also enhanced decarbonization knowledge of team members. Economically, the project has delivered tangible benefits by reducing lead time to update carbon stock data of USD 36,746 annually. The Company also potentially minimizes future carbon tax and ensures reclamation compliance.

Reducing Emissions through Gas-to-Energy Initiative

Mandalong, an underground coal mine in Australia, is characterized by its complex and large-scale emissions profile. These emissions mainly come from three ventilation fans that expel air from the mine. This air carries gases released from the coal extraction process and older, sealed areas. To manage inseam gas content, the site uses a gas drainage system, which plays a crucial role in maintaining mine safety and production efficiency.

Flue Gas Heat Recovery Project at Zouping

With carbon emissions allowances for coal-fired power plants becoming increasingly stringent, reducing coal consumption while maintaining stable operational performance has become a crucial priority.

Opportunity under Emission Trading Scheme (ETS) in China

Barnett Zero, The First Carbon Capture and Sequestration (CCS) project of Banpu

The Barnett Zero Project is a Carbon Capture and Sequestration (CCS) initiative led by BKV, a subsidiary in the U.S., and EnLink Midstream. It is one of the first commercial CCS projects in the U.S., aiming to reduce CO2 emissions from natural gas production in the Barnett Shale region of Texas.

Climate Scenario Analysis

Pathway Climate Resilience & Adaptation

Based on transitional and physical climate scenario analysis, Banpu recognizes that our portfolio is exposed to both long-term transition pressures and increasing physical climate risks. In alignment with these recommendations, Banpu has conducted a comprehensive assessment of climate-related risks and opportunities using 4 climate scenarios: • IEA Stated Policies Scenario (STEPS) • IEA Net Zero Emissions (NZE) by 2050 Scenario • Representative Concentration Pathway (RCP) 8.5 – High-emissions scenario • Representative Concentration Pathway (RCP) 2.6 – Low-emissions scenario

Biomass Co-firing in CHP Plant

To support China’s transition toward a green and low-carbon energy system, Zhengding became the Company’s first power plant to pilot biomass co-firing with coal. This initiative aims to lower GHG emissions intensity while generating additional revenue through the sale of GHG emission allowances. The trial demonstrated that biomass and coal can be co-fired in a stable and efficient manner without adverse impacts on plant operations. Building on these results, Zhengding plans to gradually increase the biomass blending ratio from 2025 onward, with a target of achieving a 10% biomass mix by 2026. The project requires a one-time capital investment of USD 552,000 and annual operating expenses of USD 60,000. Once fully implemented, the initiative is expected to generate approximately USD 953,000 per year from the sale of GHG emission allowances. Beyond emissions reduction and revenue enhancement, biomass co-firing contributes to improved agricultural waste management, more efficient resource utilization, increased income for local farmers, and the development of related value chains, while supporting job creation and local economic growth.

Climate Scenario Analysis

Pathway Climate Resilience & Adaptation

Climate-Related Targets and Net Zero Ambition

Banpu has committed to achieving Net Zero greenhouse gas (GHG) emissions for Scope 1 and Scope 2 by 2050, with an interim target to reduce absolute Scope 1 and 2 emissions at least 20% by 2030 from a 2023 baseline. The pathway and interim targets were stress‑tested against 1.5 °C‑aligned scenarios, including the IEA NZE scenario, to assess consistency with required decarbonization rates and to identify execution and dependency risks. Alongside these emissions targets, Banpu has set a portfolio transition target for more than 50% of our EBITDA to come from non-coal businesses by 2030. Target and disclosures are developed in alignment with IFRS S2 disclosure principles. In addition, Banpu is expanding our Scope 3 inventory to cover all material categories. This will establish a robust baseline to assess the feasibility of setting a Scope 3 reduction target in future reporting cycles. To ensure the credibility and integrity of our decarbonization pathway, Banpu engaged an independent third party to assess the technical feasibility and practicality of the planned initiatives under both certain activities and projects, and all activities and projects scenarios. The independent review concluded that the pathway is technically feasible, subject to the timely execution of the identified initiatives and the establishment of supporting enabling conditions. Banpu treats this independent assessment as a baseline rather than a one-time exercise. Targets and the underlying pathway will be reviewed periodically against evolving climate science, regulatory expectations, and operational performance. Beyond 2030, Banpu aims to achieve Net Zero emissions by 2050 by prioritizing absolute emission reductions over offsetting. The investment decisions are screened using an internal carbon price to reflect the long-term cost of emissions in capital allocation. Residual emissions that cannot be abated within the target horizon will be addressed through a hierarchy of approaches, prioritizing engineered and nature-based removals that meet recognized quality criteria, with verified offsets used only where removals are not yet available at scale. Offset and removal credits will be sourced from projects certified under leading standards and assessed against recognized integrity frameworks.

Climate Transition Plan

Banpu’s climate transition plan outlines how the Company will achieve Net Zero Scope 1 and 2 emissions by 2050, with an interim target to reduce absolute Scope 1 and 2 emissions at least 20% by 2030 from a 2023 baseline. The plan sets out governance, implementation levers, capital allocation, scenario testing, and monitoring arrangements, and is reviewed and updated annually. Climate strategy oversight is provided by the Board-level ESG Committee, which quarterly reviews strategy, targets, and progress. The CEO is accountable for execution, supported by the Climate Change Committee, which coordinates deliverables across business units, monitors implementation, escalates material issues to the Board, and ensures alignment with IFRS S2 disclosure expectations. Progress toward the 2030 target is driven by four primary levers. • Energy Efficiency and Electrification: Improving operational efficiency and electrifying open-pit mining operations in Indonesia to reduce operational energy intensity. • Low-Carbon Energy Procurement: Increasing renewable and low-carbon electricity through on-site generation and strategic procurement. • Portfolio Transformation: Investing in low-carbon products, services, and assets, supported by a commitment to allocate 10-15% of total CapEx to low-carbon business over 2026-2030. • Value Chain Engagement: Engaging suppliers and customers to support value-chain emissions reductions and strengthen the Scope 3 baseline.

Water Treatment System Optimization in China

Planet Water Management

At Zouping power plant in China, the Company faced significant challenges due to high water consumption of demineralized water used as boiler feed water, coupled with bacterial colonies in the raw water that blocked membrane modules and reduced water treatment capacity by 15%. To address these challenges, Zouping embarked on an initiative to optimize the water treatment processes. This involved the optimization of chemical agents and the expansion of water outlets. Extensive research was undertaken to identify the most effective chemical agents for wastewater treatment and alternative solutions for defluoridation systems. Key Achievements from the Optimization Include: · Increased recovery rate of reverses osmosis (RO) systems from 70.5% to 72.5% · Extended cleaning cycle of RO units from 10 days to 50 days · Prolonged service life of membrane elements doubled from 4 years to 8 years · Saved approximately 56,000 tonnes of boiler feed water · Saved USD 120,000 in operational and maintenance costs and additional USD 370,000 in defluoridation equipment costs

Coal Handling Optimization in Indonesia

At Bontang Coal Terminal (BoCT) in Indonesia, coal spillage along the ship loading process has been identified as a critical issue. This challenge not only leads to the port’s cleanliness but also poses environmental risks to the surrounding community and incures significant management costs. In response, BoCT embarked the “Reuse coal spillage project” by blending spilled coal back into the shipment. This project kicks off with a comprehensive data collection utilizing a digital application. The execution phase ensures the careful integration of spillage coal back into the shipment process. This approach has led to a reduction of coal spillage dumping and conserved 4,386 tonnes of natural coal annually. Moreover, it has significantly reduced dust emissions and contamination in soil and water, thereby lowering community complaints. Financially, the project has delivered substantial economic advantages, generating additional coal revenue of USD 477,850 and reducing coal spillage management costs by USD 15,052 each year.

Minimize Waste to Landfill by Reusing as Alternative Fuel in China

In 2021, the rising coal price broke through historical record, and low-price coal could not be purchased in local market in China. To pursue this challenge, Zouping power plant looked for an opportunity to use non-coal fuel as raw materials in the power plant and found that characteristics and prices of some industrial wastes such as activated carbon in Zouping area are appropriate for burning. Trial burning of mixed coal and solid waste was conducted in a boiler to find appropriate types and amounts of solid wastes as well as blending ratios before extending to all boilers for mixed combustion test. This conserved raw coal from burning and facilitated activated carbon disposal 9,337 tons in 2022. Moreover, in terms of social benefit, this enhanced customer satisfaction owing to positive contribution to guarantee the heat and power supply at high coal price condition as well as improved community satisfaction from facilitating industrial waste management, especially activated carbon in the area. Apart from those, the Company also earned economic benefit from saving coal burning cost and additional income from fly ash selling due to increasing of fly ash yield USD 5,775,468 as well as increased business agility and flexibility on high coal price situation.

Water Reduction Initiative in China

Planet Water Management

Following the shutdown of groundwater wells, Zhengding Power Plant in China shifted its water source from groundwater to surface water, leading to increased water withdrawal costs. To optimize operations and reduce electricity generation costs, the plant launched an innovation program focused on reducing water consumption and recovering waste heat. This process involved internal workshops, water quality analysis, and project planning. As a result, the plant constructed the water recovery pipelines and installed pumps at the chemical plant and cooling tower to recirculate and reuse blowdown water within the operational process.

Arboretum 30 Gemilang and Arboretum Kanahuang Project

The Arboretum Project has been established by Indominco Mine in Indonesia. This project is a multi-functional initiative designed to enhance biodiversity conservation and provide additional value through scientific research, education, tourism, and recreational activities. The Indominco Arboretum is divided into several zones, each serving different functions.

Each year, the Company identifies the species that inhabit areas surrounding our operations and assesses the level of threat these species might face, particularly with reference to the IUCN Red List. This information forms the foundation for crafting strategies aimed at minimizing the impact of our operations on local wildlife and ecosystems.

Biodiversity Impact Assessment

The Company assesses biodiversity-related dependencies, impacts, risks, and opportunities through a science-based process that covers all relevant activities across the full asset lifecycle. The process begins with initial screening to identify potential biodiversity impacts across our operations. Then, detailed biodiversity assessments are conducted by identifying interactions with terrestrial, freshwater, and marine ecosystems, using recognized assessment methodologies and spatial data on sensitive, protected, and high-biodiversity value areas.

Geotagging Information System for Watershed Rehabilitation at Bharinto Mine

To strengthen transparency and regulatory compliance in watershed rehabilitation, Bharinto Mine in Indonesia developed SITANAM, a web-based and mobile application for individual plant-level geotagging and monitoring. This initiative supports regulatory requirements from the Financial Audit Agency and the Ministry of Environment and Forestry of the Republic of Indonesia, which require 100% geotagged photographic documentation.

Coal Handling Optimization in Indonesia