Ceres Power: Ceres Power : Sustainability report 2023

w Ceres Sustainability Report 2024 Introduction Foundations Implementation strategy Metrics and targets People Governance Appendix About this report This is Ceres' third Sustainability Report reflecting our journey in progressing our environmental, social and governance initiatives and standards. Ceres is committed to embedding environment, social and governance ("ESG") as an integral part of the way we operate. ESG frameworks continue to evolve and we are working hard to ensure we both meet our reporting requirements and anticipate changes. We strive to maintain clear and transparent communication around our strategy and continually improve, commensurate with the size of our business and our team. For more information, see Overview, page 16 . All data cover the calendar year January to December 2023, unless otherwise specified. For questions about the report, please contact our investor relations team at investors@cerespower.com. 01 Ceres Sustainability Report 2024 In this report Introduction Metrics and targets Governance 01 About this report 16 Overview 27 Sustainability governance 02 Foreword 17 Sustainability KPIs 28 Embedding sustainable strategies Foundations 18 Emissions and energy reporting 29 Managing risks 19 Sustainable design 04 Who we are Appendix 20 Recyclability, waste and water 05 Our role in global decarbonisation 31 TCFD and TPT alignment index 06 UN Sustainable Development Goals People 32 SASB index 07 Materiality matrix 22 Health and safety 33 UN SDG index Implementation strategy 23 Diversity and inclusion 24 Talent development and engagement 09 Strategy 25 Community impact 10 Scenario analysis Sustainability roadmap Transition plan Engagement strategy Introduction Foundations Implementation strategy Metrics and targets People Governance Appendix Foreword Building a better, greener future The rapid shift to renewables and low-carbon energy is underway, but global collaboration and accelerated action are crucial to meet net zero goals and ensure resilience against climate disruptions." 02 Ceres Sustainability Report 2024 The shift away from fossil fuels to renewables and low-carbon energy is happening fast. The last ever delivery of coal to Ratcliffe-on-Soar power station took place on 28 June 2024 and the power station itself will close on 30 September, ending almost 150 years of coal-fired generation in the UK. The International Energy Agency ("IEA") reports that global investment in clean energy in 2024 is set to reach almost double the level in fossil fuels. China is responsible for almost one third of that global clean energy investment 1 . But progress is still not happening fast enough - China also accounts for nearly all of the global coal-fired capacity investment and Chinese coal production reached a record high in 2023 2 . Climate change is a global problem that is going to require global collaboration to fix. Ceres supports the energy transition by developing innovative clean energy technology. But the last 12 months have proved challenging for climate action as geopolitical and economic upheaval have dominated the agenda. Even the most progressive regions of the world have become comfortable with fossil fuels as a stopgap, even though the damage from these emissions will be with us for the very long term. The last year of record global temperatures, consistently more than 1.5°C above pre-industrial levels - the Paris Agreement ambition for the end of the century reminds us that we also have to plan for resilience and adaptation, as well as the need for investment today to ensure that critical infrastructure is ready at best five, and more likely seven to 15 years from now. We urgently need a comprehensive energy strategy to achieve net zero, bolster resilience against future climate and energy supply disruptions and address the demands of emerging energy intensive technologies such as AI. This will provide the private sector with a clear and confident case to invest. Last year we saw the pledge from the UK government made at COP26 to become the world's first net zero financial centre come to fruition in the form of the recommendations of the Transition Plan Taskforce ("TPT") . Adopting them is Ceres' next step in making our climate plans even more robust, as companies around the world grapple with cleaning up their businesses. Ceres' purpose is fully aligned with the ambitions for the global energy transition and we have updated our report this year to reflect the recommendations of the TPT framework. I am hoping that adaptation gets a much bigger profile at this year's COP. The loss and damage agenda is increasingly pressing and while the Global North is not suffering the worst effects of climate change, the Global South needs support for adaptation now. We share a common global goal to provide clean, green electricity to our communities and the Global South may just have the advantage of accelerating past coal towards cleaner forms of energy. Adaptation action can look hard to invest in, but as we increasingly encourage reporting on physical risks in line with the recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD") , I believe more investment will flow to adaptation. It is crucial that governments set a vision and targets for adaptation that are backed by policies and standards to draw in investment. Ceres has published our second set of TCFD disclosures in this I believe more investment will flow to adaptation. It is crucial that governments set a vision and targets for adaptation that are backed by policies and standards to draw in investment. ⁜Ceres has published our second set of TCFD disclosures in this report, and while we are a relatively small business with a UK footprint, it has been an important process to establish long-term thinking. Last year the UK experienced frightening storms, loss of power, heatwaves, over 3,000 heat-related deaths, problems with transport, drought and wildfires. Even in the UK we are starting to feel many of the real challenges of climate change, and mitigation and adaptation should be central to all our thinking, as individuals, industry or government. To help seed that thinking, at Ceres we are challenging school- aged children to "Reimagine" a clean energy future through our annual science animation competition. Yet again it has been amazing to see the creativity, understanding and passion of this generation for a net zero future. I strongly recommend that you take a moment to watch the winning submissions on the steel industry, entomophagy, and piezoelectricity - as we all need a bit more inspiration and encouragement to challenge the status quo and move quickly to build a better, greener future for everyone before it is too late. Professor Dame Julia King, Baroness Brown of Cambridge DBE FREng FRS FMedSci Senior Independent Director and Chair of the ESG Committee IEA. Coal 2023: Analysis and forecast to 2026. December 2023. Global Energy. China's investments in coal mining reach new high. 21 June 2024 . Introduction Foundations Implementation strategy Metrics and targets People Governance Appendix Foundations In this section 04 Who we are 05 Our role in global decarbonisation 06 UN Sustainable Development Goals 07 Materiality matrix 03 Ceres Sustainability Report 2024 Introduction Foundations Implementation strategy Metrics and targets People Governance Appendix Who we are Clean energy for a clean world Purpose Our ultimate purpose is to help sustain a clean, green planet by ensuring there is clean energy everywhere in the world. Positioning Ceres is a leading developer of clean energy technology: electrolysis for the production of green hydrogen and fuel cells for power generation. Ceres' solid oxide platform technology supports greater electrification of our energy systems and produces green hydrogen at high efficiencies as a route to decarbonise emissions-intensive industries. We pioneer advanced technologies and embed them in our partners' companies to meet their strategic imperative to transform to clean energy. Living our values We commit wholeheartedly We care deeply about our purpose, our people, our partners and our planet. 'It's on us' to keep our promises and we support each other to make sure we do. We're robust, we recover from setbacks and stand firm on our beliefs. We're comfortable with feeling uncomfortable at times because we believe we're creating the opportunity for a better world and that's what keeps us going. We are creative collaborators We believe in partnership. We work with each other and with our partners and suppliers to solve problems faster, develop smart ideas and ensure superior results. We adapt, respond quickly and are prepared to move at pace and scale. We pioneer with precision We are purpose-driven innovators. We define problems as accurately as possible to create practical solutions. We like big challenges so we can develop groundbreaking ideas that work. We take measured risks in areas where risk is well rewarded. 04 Ceres Sustainability Report 2024 Introduction Foundations Implementation strategy Metrics and targets People Governance Appendix Our role in global decarbonisation Bridge for the energy transition Ceres' technology can bridge electricity and molecules, both of which are essential to delivering a net zero future. Our fuel cells convert green molecules to green electricity and our electrolysers can generate green hydrogen molecules from green electricity and water. Globally there is growing agreement around the need to deliver a net zero future, but surprisingly little consensus on the route to achieve that goal. One probable end point is that in 2050 we will still be using lower carbon fossil fuels, such as natural gas, but that most of the energy transition will have been delivered by electrification and some carbon capture. Today, four out of five of Ceres' commercial leads are interested in green hydrogen for industrial uses or those parts of the en