Decarbonize the business portfolio For many industries, downstream s cope 3 emissions present the biggest strategic risk and challenge, requiring fundamental changes in product portfolio and design. Companies in high-emission sectors such as fossil fuel-based products, automotive and heavy industry are particularly vulnerable as the global economy shifts towards decarbonization. This transition is not just a regulatory obligation; it is both an opportunity and a threat, with the risk of disruption should competitors adapt more effectively than incumbents. In addition to decarbonizing their existing operations and value chains, leading players are therefore investing to secure future optionality. For example, Dow is enhancing its feedstock flexibility, allowing greater uptake of bio-based and circular materials. Although the amount of time before it pays off may be longer than usual, these types of investments can help the company stay ahead of future sustainability requirements and mitigate the risk of stranded assets. By investing in our decarbonization and circularity, we are not just mitigating risks; we are opening up new revenue streams with customers seeking to decarbonize. Dan Futter, Chief Commercial Officer, Dow Inc. Ultimately, each company should ask itself “What is the best portfolio of products and services that we will offer in a decarbonized world?” With this as a guiding question, strategic and product portfolio implications and actions can be determined. For example, we have invested $500 million in a near-zero global warming potential propellant for respiratory medicines, which has taken four to five years of development. Our first target launch with the Next Generation Propellant is 2025. Pascal Soriot, Chief Executive Officer, AstraZeneca The Cost of Inaction: A CEO Guide to Navigating Climate Risk 43

The Cost of Inaction 2024