Since its inception, Reliance has been committed to sustainable growth, which has only been possible due to the underpinning governance. The Company recognises the role of robust governance mechanisms for long-term value creation. Efficient corporate governance has acted as a pillar of Reliance's sustained growth throughout the year.

Reliance's Corporate Governance practices are driven by the principles of transparency, accountability, and integrity. This is operationalised by relevant policies and Standard Operating Procedures (SOPs) to ensure compliance and good governance for all stakeholders.

Board Governance

Reliance’s senior leadership comprises of a 14-member Board which is responsible for direction and oversight of Reliance. The Board of Directors come from diverse backgrounds with unique competencies and rich experience. The induction into the Board of Directors is instituted by the Board level Human Resources, Nomination and Remuneration Committee. This Committee oversees aspects which include formulation of the criteria for determining qualifications, positive attributes, and independence of a Director, and recommend to the Board a policy, relating to the remuneration of the Directors, Key Managerial Personnel, and other employees. The Committee has also developed a set of criteria for evaluating the performance of the Board of Directors, including that of Independent Directors. Attendance, familiarity with the business, and engagement are some of the key parameters defined for evaluating the Board's performance. The Board of Directors, through its Committees, oversee the ESG initiatives and performance.

Board diversity in skill-set, nationality, experience, and perspective is important for effective leadership and governance. A diverse Board provides guidance and effective oversight over the Company's operations. It enhances responsiveness to stakeholder needs, collaboration across departments, and provides expertise leading to the continuous growth of the Company. Presently, the Board consists of two eminent women directors.

ESG Governance

Reliance is on a continuous improvement journey to create long- term value for its stakeholders. The key decisions that are taken pertaining to ESG include indepth analysis through an Integrated Profit and Loss lens. Reliance has integrated ESG into its governance structure so that the Company can have a better oversight and strengthen management responsibility for business-related ESG challenges and opportunities.

The Corporate Social Responsibility & Governance (CSR&G) Committee oversees the implementation of sustainability activities. Business Responsibility Report (BRR) describing the initiatives taken by the Company from an environmental, social and governance perspective is reviewed and recommended to the Board by the CSR&G Committee. The progress on the Company’s CSR initiatives is periodically reviewed by the CSR&G Committee and the Company’s Board of Directors. RIL continuously enhances its existing systems and processes to capture the impact of its social/economic and developmental initiatives. The Risk Management Committee oversees the ESG related risks and risk mitigation measures. Further, the Health, Safety & Environment (HSE) Committee reviews the environment related policies and matters.

Detailed information on various Board Committees is available on https://www.ril.com/OurCompany/Leadership/ BoardCommittees.aspx and the Corporate Governance section of this report.

Policies and Codes

Policies and codes are the essential components that help operationalise governance frameworks. Reliance's policies and codes signify the Company's commitment to the highest business ethics and corporate values and are communicated transparently to all the relevant stakeholders. A detailed list of policies is available in the Corporate Governance Section of this report.

Towards Clean and Alternative Energy:
Reliance Net Zero

Reliance's Goal

Reliance believes that although climate change is a global threat, but tackling it in a timely manner can offer an opportunity to create a healthier, happier, more secure and resilient future. Therefore, the global New Energy agenda has to transcend from dialogue to action and commitment through urgent on-ground implementation. Led by this vision, Reliance had announced a target to be Net Zero by 2035. To achieve this ambitious goal, Reliance announced to:

• Establish and enable 100 GW of solar energy by 2030
• Build Giga Factories to create and offer a fully-integrated, end-to- end renewable energy ecosystem
• Invest in value chain, partnerships and future technologies, including upstream and downstream industries
• Transform its business to Net Carbon Zero operations

Reliance's Commitment

As the world develops new technologies to combat the effects of climate change, Reliance has embraced the need of the hour and spearheaded its initiatives towards decarbonisation. The Company is transforming itself, embracing new- age technologies and establishing a comprehensive green energy ecosystem in India, ranging from solar modules and batteries to hydrogen fuel cells.

Reliance sees investments in renewables and alternative energy as an active way to ensure positive outcomes for future generations. With renewables and alternative energy dominating the future power generation mix, the Company is changing the way it operates.

As one of the biggest energy markets globally, India will play a key role in transforming the world's energy landscape. The country has already announced its National Hydrogen Mission, which aims to boost green hydrogen production. As a Company that is always focused on growing businesses of the future and making India a stronger economy, Reliance will lead by leveraging its strengths that include finance, talent, technology, and proven project execution capabilities. The Company aims to play a meaningful role in meeting the country's growing energy demand sustainably by making its New Energy business truly global.

Reliance's Strategy

As a part of Reliance’s long-term strategy on emission reduction, the Company is committed to reducing its overall operational GHG footprint – Scope 1 or direct emissions and Scope 2 or indirect emissions from energy purchase.

The Company is already accelerating its progress through resource efficiency and energy conservation. As the business evolves towards its Net Zero target, digitalisation is one factor that enables the ecosystem. Reliance is using its global collaboration to help establish the feasibility and successful deployment of CCUS.

The Company's initiatives will contribute towards the United Nations Sustainable Development Goals (UN SDGs) to combat climate change, ensuring sustainable consumption and production patterns, and ensuring access to affordable, reliable, sustainable, and modern energy for all.

The Company has made substantial progress on photosynthetic biological pathways to convert CO₂ emissions at Jamnagar into high-value proteins, nutraceuticals, advanced materials, and fuels. The Company is taking strong strides in its journey to develop the next-gen Carbon Capture and Storage (CCS) technologies. It is also evaluating options to convert novel catalytic and electrochemical transformations to use CO₂ as a valuable feedstock.

Reliance has also embarked on making changes in the present business, using less carbon-intensive alternatives and changing the legacy business model. Promoting a net- zero strategy in energy production and consumption is a key focus area for the Company. Championing an aggressive energy transition, Reliance sees a significant opportunity in hydrogen and alternate energy as the key to developing its business of the future. While doing so, the Company is selecting meaningful technologies for building a portfolio that has the most efficient, smart and sustainable solutions.

Progress towards Task Force on Climate Related Financial Disclosures (TCFD)

In its quest to strengthen climate- related disclosures and the management and reporting of climate-related risks in response to the TCFD recommendations, the Company is further strengthening its endeavour to move towards Net Zero. In line with the TCFD risk methodology, it takes into cognisance climate-related risks that may hamper the Company's growth. It has instituted steps to hedge such identified risks using proper lines of control.

Governance

Governance is one of the most vital components of a company's climate risk framework. This pillar covers the Governance framework, roles, responsibilities, and decision- making procedures by which a company adheres to its climate- related commitments. Reliance has a robust Governance structure to identify and mitigate climate- related risks and opportunities. The Company's material issues that may impact climate change are assessed at regular intervals. The Governance structure followed at Reliance to oversee climate change risk mitigation includes:

The HSE Committee has broad oversight on climate-related governance. The HSE Committee, CSR & Governance and the Risk Management Committee oversees Company's ESG initiatives.

Strategy

Reliance conducts a deep analysis of the climate-related nuances of all its businesses to formulate critical strategic advantages and competitive strengths of each segment. The structured materiality assessment process also helps determine issues vital to individual business units and Reliance. The Company has outlined its way to decarbonise in Reliance's Net Zero Strategy.

A detailed discussion on the Company's New Energy Business to achieve Net Zero by 2035 is provided in the MD&A section of this report.

Risk and opportunities

Climate-related risks pose threats that have financial implications for organisations, such as direct damage to assets and indirect impacts on the supply chain. Reliance identifies such risks at the Corporate and site levels through integrated work processes and group-wide risk management. It applies an Enterprise Risk Management (ERM) framework using top-down and bottom-up approaches to anticipate any issues and mitigate their impacts in advance. Climate-related risk management initiatives are analysed through the lens of physical and transition risks. To facilitate continuous and real-time risk assessment, Reliance has implemented a 'Three Lines of Defense' model that encapsulates:

• First line of defense by Business/ Process managers through Self-verification
• Second line of defense by the Risk Management team through Functional Assurance
• Third line of defense by the Internal Audit and Management Assurance Function offering Independent Assurance

Reliance’s business operations face risks from natural calamities due to the vast spread of its operational locations. Natural calamities which are largely resultant of climate change are being manifested in terms of heat waves, erratic rainfall, cyclones, floods, and drought.

The Company has created Global Corporate Security (GCS). It is a dedicated and distinct function that focuses on adopting pre-emptive, de-risking strategies to safeguard and secure the Company from disasters, natural calamities, and any other disruptions or incidents as a part of business continuity management. GCS ensures that the people, assets, and operations of Reliance are secure.

To combat climate change, Reliance has embarked on an ambitious journey to transition to new, green, and clean energy. However, this transition to a lower carbon economy brings its own set of risks which include dynamic policy, legal, regulatory, technology and market developments and changes to facilitate this transition.

Reliance sees a significant opportunity in hydrogen and alternate energy. Details on the Company’s energy transition plan is provided in the Natural Capital section and the details on creating a green energy ecosystem is in the New Energy section.

Metrics and Targets

The disclosure on Metrics provides information on how the Company is progressing towards targeted climate-related indicators. These are the mechanisms for measuring and disclosing the progress in line with the commitments or ambitions set for managing and mitigating the impact of climate-related risks. Reliance consistently discloses its metrics, goals, and progress against them in its Annual Integrated Report.

Reliance's assured climate-related parameters and performance metrics can be found in the section on Natural Capital on read more of this report.

We Care: Maximising Shared Value

Reliance adopts a stakeholder centric approach when making business decisions. Understanding stakeholder expectations and aligning business objectives are critical to Reliance's growth. The Company regularly engages with its stakeholders to seek constructive feedback and systematically identify and resolve their concerns.

Reliance has developed robust processes to communicate and engage with various stakeholder groups and instituted necessary measures to meet their requirements and expectations appropriately. The Company strives for economic and ecological sustainability through these interactions and pre-empt and manage future uncertainties.

Reliance's Stakeholder engagement approach and inter-linkage with the Capitals: