INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

TASKFORCE ON CLIMATE- RELATED FINANCIAL DISCLOSURES The Task Force on Climate- related Financial Disclosure (TCFD) was established to develop voluntary, consistent climate-related financial risk disclosures to enable companies to provide information to investors, lenders, insurers, and other stakeholders. The TCFD is led by a range of industry leaders. In June 2017, the task force released a report on the recommendations pertaining to climate-related financial disclosures (refer to https:// www.fsb-tcfd.org/wp- content/uploads/2017/06/ FINAL-TCFD-Report-062817. pdf ). In response, a significant number of major businesses have made explicit statements of support for the recommendations (refer to https://www.fsb -tcfd. org/statement-support- supporting-companies ). IGO continues to consider its position in this matter. IGO accepts the position expressed by the Intergovernmental Panel on Climate Change, in its Fifth Assessment Report (Cambridge University Press 2014) that continued emission of greenhouse gases will cause further warming of Earth and that warming above 2°C, relative to the pre-industrial period, could lead to catastrophic economic and social consequences. As evidence of the growing recognition of the risks posed by climate change, in December 2015, nearly 200 governments agreed to strengthen the global response to the threat of climate change by ‘holding the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels (referred to as the Paris Agreement). The large-scale and long-term nature of the problem makes it uniquely challenging, especially in the context of economic decision- making. Moreover, the current understanding of the potential financial risks posed by climate change – to companies, investors, and the financial system as a whole – is still at an early stage. As a consequence, IGO accepts that there is a growing demand for decision-useful, climate- related information by a range of participants in the financial markets. In the coming year, IGO will develop a formal position on Climate-Related Financial Disclosures and will, at the time of the release of our next sustainability report, disclose our intentions. 28 — IGO SUSTAINABILITY REPORT 2017