IBERSOL | Integrated Management Report - 2024

CORPORATE GOVERNANCE REPORT Energy scarcity The evolution of energy markets has remained highly volatile in recent years, driven both by the impact of COVID-19 and by the consequences of wars affecting regions of Europe and the Middle East, as well as by recent decisions made by the US government. An eventual energy shortage could lead to a sharp increase in prices, significantly inflating operational costs. In 2024, the global energy sector faced a scenario of transition and uncertainty. Oil and natural gas production remained high, with notable contributions from the United States, Saudi Arabia, and Russia, despite sanctions and geopolitical instability. The price of crude oil fluctuated between $75 and $90 dollar per barrel, reflecting tensions in the Middle East, production cuts by OPEC, and fluctuations in Chinese demand. The price of natural gas, particularly in Europe, stabilised after the peaks observed in 2022-2023, due to high stock levels and increased diversification of suppliers, such as Norway, the US, and Qatar. Europe continued to accelerate its energy transition, investing in renewable sources such as solar and wind, which now represent an increasing share of the energy mix. However, challenges related to supply intermittency and storage and distribution infrastructure have maintained partial dependence on fossil fuels. Energy consumption was moderate, impacted by energy efficiency policies, the electrification of transport, and changes in consumption patterns. Globally, there has been progress in renewable energy production, driven by investments in Asia and Latin America. Solar energy was the fastest- growing source, thanks to continued cost reductions and government incentives. However, coal remains a significant source in countries such as China and India, posing challenges to global climate goals. For 2025, a moderate stability in energy prices is expected, with a slight decline in fossil fuel prices possible, should supply recovery and the easing of geopolitical tensions materialise. Europe is set to expand its renewable capacity and invest in green hydrogen and smart grids, while the world seeks to balance energy security and decarbonisation efforts. In this context, the Ibersol Group aims to increase the use of energy from renewable sources in the coming years and improve the efficiency of energy resource usage, thereby reducing its carbon footprint associated with energy consumption. 286