1 5 | T M X G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 2 4 REPORT CONTENTS ABOUT THIS REPORT SUSTAINABILITY STRATEGY SUSTAINABILITY GOVERNANCE PROSPERITY PLANET PEOPLE APPENDICES RISK TYPE DESCRIPTION MITIGATION & APPROACH TO RISK Transition Risk Policy & Legal Enhanced climate reporting obligations: mandated sustainability and climate disclosure obligations could have a varying impact on our issuers depending on the construct and timing of the requirements. Enhanced public company reporting obligations may result in a decrease in attractiveness in listing publicly due to increased compliance costs. A decrease in new listings or increase in de-listings may negatively impacting our business. Emissions reduction policies: more stringent emissions reduction policies such as carbon pricing and enduring uncertainty relative to these policies can impact our issuers and level of investments in Canada. TMX Group has developed products and services to support issuers in addressing evolving stakeholder expectations on climate and sustainability disclosures, recognizing that comprehensive and robust disclosures are critical to overall market resilience and capital markets investor protection. Through our regulatory compliance management process, client and policy engagements, and industry forum participation, we continue to monitor new and emerging climate-related requirements and update our processes, policies and frameworks as necessary. TMX Group continues to advocate on the role of Canadian capital markets in addressing climate change as well as the specific issues faced by public market participants (e.g., sustainability and climate disclosures, harmonization of standards). Reputation Given our central position in the capital markets ecosystem, TMX Group has a critical role in supporting Canadian capital markets and our clients through the transition to a lower carbon economy as well as addressing other sustainability needs. Failure to address this shift and demonstrate leadership may impact our reputation and the attractiveness of our markets to Canadian and global investors. While we continue to integrate climate change considerations into our strategic and investment considerations, we actively manage climate risks and opportunities through our enterprise risk management practices. We recognize the unique position of TMX Group in Canadian capital markets and the role we play in supporting our issuers as public companies promoting strong sustainability practices. We seek to lead by example by improving our carbon footprint measurements and management and by supporting issuers in addressing climate change to further investor confidence in Canadian capital markets. We publish annual sustainability reports, support the development of a global baseline for sustainability and climate disclosures and provide education and services for issuers and investors to provide the marketplace with decision-relevant information.
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