6 • alleviates a significant deficiency in current financial reporting; • improves the quality of disclosure with verifiable, timely, and understandable financial information that incorporates the increasing risk to fossil fuel reserve valuation; and • provides benefits to users of financial information that far outweigh the cost of collection and disclosure. Carbon Tracker��s request was rejected by FASB. In 2018, Carbon Tracker helped lead a call for a new global registry of fossil fuel projects calling for every owner and developer to publish the embedded CO2 in their reserves (P1) and resources (P2) so that the risks associated with their development could be better understood. See https://www.theguardian.com/commentisfree/2018/oct/23/fossil-fuel-nonproliferation-treaty-climate-breakdown Slide 7: Low demand scenarios include new O&G Carbon Tracker recognises the complexity of assessing how much of the “proven” oil, gas and coal reserves might be developed in future years. This is a function of factors including including, but not limited to, the ability to extract these fossil fuels based on signals of price and demand. This slide illustrates that unless oil and gas demand falls significantly in line to meet the goals of the Paris Climate Agreement, current demand projections suggest further investment in new production may occur. Based in International Energy Agency modelling: o Demand declines (1-2% p.a.) more slowly than natural field production decline (c.4-7% p.a. absent further investment), implying the need for some new projects o Reserves numbers alone do not tell whole story, as the timing of production needs to match demand o Carbon Tracker uses the production profiles and costs of potential projects to allocate risk We recognise that the existing proven reserves of fossil fuels exceeds the available carbon budget to two degrees. Carbon Tracker is not aware of any international agreements that seek to limit the supply of fossil fuels to ensure that production does not exceed the scientific carbon budget to 2 degrees. Carbon Tracker notes that individual nations have banned future oil & gas exploration, or have put in place regulations that seek to ban fossil fuel development in the future, or to divest their state investment funds from fossil fuels. For example: • New Zealand: https://www.theguardian.com/world/2018/apr/12/newzealand-bans-all-new-offshore-oil-exploration-as-part-of-carbon-neutralfuture