Climate Change Legal Proceedings – update

As previously announced to the market, Channel Infrastructure, formerly Refining NZ, is one of seven named respondents in proceedings brought in the Supreme Court relating to carbon emissions deriving directly or indirectly from the respondents' activities (Michael John Smith v Fonterra Co-Operative Group Limited And Ors). The Supreme Court has today allowed the appeal of the decision of the Court of Appeal which had unanimously struck out this case against the respondents as being legally untenable. This means that Channel, and the six other respondents would need to go to a full High Court hearing on Mr. Smith's claim. Like the other respondents in this case, Channel believes that Parliament, not the courts, is the appropriate place to determine public policy on matters of significant public interest such as climate change. Since these proceedings were originally filed in 2019, Channel Infrastructure has already taken significant steps to decrease the environmental impact of its business through the permanent cessation of refining activities and transition to an import terminal model, the contracting of long-term renewable electricity supply, and other on-site initiatives at Marsden Point. As a result of the conversion of Marsden Point to import terminal operations, the company has reduced its emissions by over 98% (>1 million tonnes of CO2 per annum) and meeting all our electricity needs from renewable sources would mean that Channel will have largely eliminated its direct emissions from 2024 - some six years ahead of the company's target. Channel is also now actively supporting the transition to lower-carbon fuel options for New Zealand, including through its ongoing study with Fortescue Future Industries on the potential establishment of a green hydrogen and eSAF manufacturing facility at Marsden Point to support decarbonisation of the aviation sector. - ENDS - Authorised by Chris Bougen General Counsel and Company Secretary Investor Relations contact: Anna Bonney investorrelations@channelnz.com Media contact: Laura Malcolm communications@channelnz.com End CA:00425832 For:CHI Type:GENERAL Time:2024-02-07 11:42:37