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1TCFD Category2Link to Strategic 3Priorities (see pages 423 to 25)5Principal  6Risks Potential Impact7Business Impact 8Strategic Response & Resilience1.5 oC 2oC 3oC9Transition Risk10Market11Long-term121 – Portfolio Review135 – Drive  14market share15Threat: Changing Customer Behaviour.  In the 2o and 3o scenarios, 16reducing crop yields and supply chain shocks may increase the cost of living 17in the short to medium term. This may reduce the income available to our 18customers to spend on entertainment. In addition, more extreme weather 19events may lead to changes in how customers engage with our products. 20For example, we may experience a decrease in the footfall of customers 21travelling in person to our shops. We could also notice an increase in 22customers receiving entertainment within the home, with a positive impact 23on our digital business and ability to attract new audiences. 24We don’t anticipate this threat to materialise in the short to medium-term. Furthermore, our access 25to both the online and retail markets mitigates the threat of a reduced footfall in our shops as we 26can offer our products to customers directly in their homes. We will continue to monitor changes in 27customer behaviour and assess their impacts and potential opportunities. This will influence capital 28expenditure decisions when considering the location of our shops. 29Transition Risk30Technology31Reputation32Short to  33Medium-term344 – Simplification Threat: Lack of regulations and limited low-carbon alternatives slow 35decarbonisation process.  It remains uncertain how the wider economy will 36respond to climate change, and therefore the availability and pricing of low-37carbon solutions. In the 2 o and 3o scenarios, the availability of low-carbon 38alternatives would be lower. This has the potential for lower availability of 39these products and services, in turn leading to increased costs for reaching 40our net zero target. Our suppliers may face similar challenges and fail to 41support our Net Zero commitment, impacting our ability to decarbonise our 42business within the timeline we set. This would have follow-on reputational 43risks to the Group. In the longer term, we also see a risk due to price 44uncertainty in credible carbon removals that will be required to mitigate any 45of our residual emissions to achieve our Net Zero target in 2035, in line with 46the Science Based Targets Initiative (SBTi)’s Net Zero Standard.47We have started mitigating this threat in our financial planning, notably by investing in a renewable 48Power Purchasing Agreement (PPA) to secure renewable energy at a fixed price to gain energy price 49certainty. We are also actively engaging with our suppliers on decarbonisation, with an initial focus 50on these 19 suppliers who represent over a third of our scope 3 emissions. Our new partnership with 51EcoVadis will enable us to refine our Net Zero roadmap by giving us access to primary emission data 52from our suppliers. Whilst the price of offset is not a threat for the Group in the short to mid-term, we 53will continue to monitor carbon markets and carbon removal standards developments. 54Opportunity55Products 56and Services57Short-term 58N/A 06 – 59Attracting 60and retaining 61key talent62Opportunity: Sustainability Leadership.  In a 1.5 o scenario, where 63there is immediate and rapid decarbonisation, we anticipate ambitious 64decarbonisation commitments from our suppliers and greater availability of 65lower-emissions products and services at scale, reducing the costs required 66to deliver our net-zero strategy. This presents Entain with an opportunity 67to demonstrate significant progress and ultimately achieve our Net Zero by 682035 ambition. 69Entain has the necessary strategy and governance in place to seize this opportunity. Decarbonisation 70is a central part of our ESG Strategy. We are committed to achieve Net Zero emissions by 2035 71and are now focused on achieving our near-term science-based target. We have committed to a 72reduction of 29.4% in our scope 1, 2 and 3 emissions by 2027 from a 2020 baseline year. This has 73been submitted to the Science-based Targets initiative to ensure our journey to decarbonisation is 74in line with limiting global warming to 1.5 o, as per the Paris Agreement. Our Net Zero Action Group, 75which convenes senior colleagues across departments to support our decarbonisation plans, 76directly reports to board-level Sustainable & Compliance Committee. Please refer to page 43 for more 77details.78Table 3 – Entain’s Climate Change Scenarios79The three scenarios used in identifying Entain’s climate-related threats and opportunities have been tailored for the group, based on  80a combination of evidence and sources, primarily provided by the Intergovernmental Panel on Climate Change (IPCC), the International  81Energy Agency (“IEA”), and the Principles for Responsible Investment (PRI).82Scenario Basis Description831.5OC  RCP2.6/SSP184 PRI IPR: 1.5C Required Policy Scenario85Action taken has achieved the aims set out in the 2015 Paris Agreement 86to limit climate change rise to below 1.5°C of pre-industrial levels, but with 87significant shifts in policy, cost, and consumer behaviours.882.0oC  RCP4.5/SSP289 PRI IPR: Forecast Policy Scenario90Not much has changed from today. Some action has been taken, but it’s very 91much business as usual. Uncertainty increases and impacts of a changing 92climate manifest themselves in vulnerable parts of the world.933.0oC  RCP6.0/SSP5 Economies around the world have continued to be powered by fossil fuels. 94As a result, the planet reaches a point where it is in crisis and well past the 95point of no return by 2030. Global warming has accelerated and changes in 96climate are all around, tangible and, in some cases, catastrophic.97Table 2- Summary of our most material climate-related risks and opportunities and their 98estimated impact continued9962 Entain plc Annual Report 20231001 Overview 8 Strategic report 88 Governance 140 Financial statements101TCFD102The secret fruit is an "orange".