Unblocking net zero towards a sustainable future

Unblocking the path forward.

1. Dr Scott Kelly SVP Model Development, Risilience Unblocking the path forward Building a business case for sustainability

2. 1 Reducing costs Managing risks Making markets Leading innovation Optimising value chains Making finance work Working for stakeholders Business 2.0: making the case for sustainability Seven steps towards profitable sustainability 2 3 4 5 6 7

3. Executives agree that sustainability is a key value proposition In 2021, 40% of c-suite executives expect their companies to generate significant value from sustainability programs in the next five years 1 . In 2022, 89% of c-suite executives agree there is a climate crisis, and 79% believed we have reached a tipping point to address it 2 . In 2023, 87% of c-suite executives believed sustainability was crucial for the long-term success of the business 3 . In 2024, up from 22% last year, 63% of c-suite executives said they now see a clear business case for sustainability. 4

4. 1 Reduce costs with new technology and improved efficiency 2 3 4 5 Energy efficiency retrofits Renewable energy investment Water recycling systems Waste reduction and recycling Smart automation technologies Reducing costs Managing risks Making markets Leading innovation Optimising value chains 6 Working for stakeholders 7 Making finance work

5. 1 Managing risk can avoid billions in losses 2 3 4 5 Deepwater Horizon Direct cost: US$65 b Market cap loss: $100 b Share price drop: -55% Reducing costs Managing risks Making markets Leading innovation Optimising value chains Dieselgate Direct cost : €16 b Market cap loss: €35 b Share price drop: -40% 6 Working for stakeholders 7 Making finance work

6. 1 Invest in market making opportunities 2 3 4 5 Accelerate world’s transition to sustainable energy Reducing costs Managing risks Making markets Leading innovation Optimising value chains Create delicious plant-based alternatives to traditional meat products. 6 Working for stakeholders 7 Making finance work

7. 1 Lead with sustainable innovation 2 3 4 5 We’re in the business to save our home planet. Reducing costs Managing risks Making markets Leading innovation Optimising value chains To lead the industrial world in creating a sustainable environment while achieving superior business performance to benefit all stakeholders. 6 Working for stakeholders 7 Making finance work

8. 1 Optimise value chains for sustainability 2 3 4 5 Reducing costs Managing risks Making markets Leading innovation Optimising value chains +53 % Revenue +15 % Higher prices +30 % Higher yields Sustainable Cocoa Sustainable Tea Sustainable coffee 6 Working for stakeholders 7 Making finance work

9. 1 From shareholders to stakeholders 2 3 4 5 6 7 Reducing costs Managing risks Making markets Leading innovation Optimising value chains Working for stakeholders Shareholder model Stakeholder model Shareholders Firm Consumers Suppliers Employees Shareholders Firm Consumers Suppliers Employees Governments Civil society Competitors Making finance work

10. 1 Use financial metrics to drive decision making 2 3 4 5 6 7 Reducing costs Managing risks Making markets Leading innovation Optimising value chains Making finance work Return on Investment (ROI) Focus on quantifiable financial metrics Saved $1.75 billion dollars over two decades Sustainability products now 30% of revenue Environmental P&L Prices the nature impacts from value chain In 2023, EP&L grew slower than sales Decoupling of nature impacts from profit Internal Carbon Pricing Pioneered in 2012 Assigns price to CO2 emissions Price covers global operations and supply chain $15 for Scope 1, $100 for business travel Working for stakeholders

11. 1 Risk-adjusted financial metrics 2 3 4 5 Reducing costs Managing risks Making markets Leading innovation Optimising value chains 7 Making finance work 6 Working for stakeholders

12. 1 Reducing costs Managing risks Making markets Leading innovation Optimising value chains Making finance work Working for stakeholders Business 2.0: Can your business afford not to be part of the transition? 2 3 4 5 6 7 The greatest threat to our planet is that someone else will save it. Robert Swan The greatest threat to your business is that someone else will solve your challenges.