Risk Management A detailed discussion of risks to the business can be found in our 2023 Form 10-K for the year ended December 31, 2023. Currently, climate risks are reviewed as part of the ESG materiality assessment process. The Director of ESG collaborates with key internal and external stakeholders to identify and rank climate risk and other enviro-social factors. Results are reviewed with the ESG steering committee to de昀椀ne strategic priorities and goals, which are then managed by a supporting network of extended leadership and collaborators, both within and outside the organization. In 2023, we completed our 昀椀rst water risk assessment using the Aqueduct Water Risk Atlas tool provided by the World Resources Institute (WRI). Our assessment included all Enphase o昀케ce locations and six contract manufacturing locations, representing substantially all contract manufacturing activity in 2023. Locations were assessed for both baseline water stress and water quantity, quality, and access (as de昀椀ned in the Aqueduct Peak RepRisk Country ESG Risk Index). We de昀椀ned risk as those locations which scored either “High” or “Extremely High” in the Aqueduct risk scale. Moving forward, we plan to further develop quantitative, forward-looking scenario-based climate risk assessments over short-, medium-, and long-term time horizons as recommended by the TCFD and integrate results into risk management and strategic planning processes. Table 12: Physical climate risk, baseline water assessment Proportion in Proportion in Proportion in areas of high areas of high Location high water stress water accessibility, coastal 昀氀ood areas (%) quality, availability risk (%) risk (%) Corporate o昀케ces 25% 13% 25% Contract manufacturers 67% 17% 67% Metrics and Targets Financial metrics found in our quarterly 昀椀lings and annual reports re昀氀ect how well we are performing with respect to climate opportunities. Please see page 7, Enphase in numbers, of this report for additional climate opportunity indicators. Relevant climate risk metrics can be found in the Emissions and energy section of this report. Performance against climate metrics and targets is connected to remuneration at all levels of the organization, as all revenue generated by us ultimately results in emissions reductions through renewable energy deployments and improved e昀케ciency in energy management. All employees have the option to explicitly link individual goals to climate metrics. CEO compensation for 2023 is explicitly tied to increasing on-site generation capacity across leased facilities and preventing emissions resulting from product deployments. The results of CEO performance directly modulate bonuses paid out to all employees. 92