Environmental

As part of risk management and business continuity, we continue to assess new and emerging risks resulting from near-term and long-term changes to climate that could impact operation of our mines, transportation of our products and consistency of our supply chain. We also assess potential impacts to our operations that may result from changes in policy, regulation, financing or market conditions from government or stakeholder response to a changing climate. We believe these practices are key to operating sustainable and resilient mining operations that are focused on aligning with the goals of our customers and the expectations of our shareholders.

Coal remains crucial for economic growth, providing affordable baseload electricity and essential resources like steel, vital for infrastructure development, including renewable energy. Peabody is focused on growing our steelmaking coal platform and growing non-thermal revenue through value creating initiatives like R3 Renewables. We continue to responsibly mine thermal coal at existing operations to meet global energy demands. We anticipate a reduction in U.S. thermal coal volumes by 20-40 million tons by 2035 compared to 2021 production. Peabody is committed to reducing emissions from mining operations and investing in low-emissions technologies, balancing this with the ongoing need for steel and reliable, affordable energy.