FY21 ESG Disclosures July 2022 Unaudited 64 Table 37. Emerging Risks Technological risk related to transitional climate change impacts Financial risks and opportunities related to shifting geopolitics Description Our FY22 Climate Risk Assessment highlighted the potential for technological risks under two future climate scenarios: a rapid and orderly transition, and a delayed and disorderly transition to a net-zero future. Technology will play a key part in enabling the transition to net zero, and Jacobs is investing in developing climate-related digital products and solutions that will further our own climate mitigation and adaptation initiatives and those of our clients. As governments and businesses collectively transition to net zero, there is uncertainty over which technologies and products will prove to be most effective in supporting local, national and global transitions. As Jacobs anticipates significant overall company growth to come from climate response-related solutions, the evolving landscape of what the world needs, along with the innovations and technologies that are best positioned to meet those needs, presents both a business risk and opportunity. Jacobs’ growth in recent decades has benefited from globalization and the enhanced movement of talent, resources, ideas and technologies. We also operate as a globally connected organization, with geographically diverse, widely distributed teams delivering work around the world. Deglobalization and regionalization shifts in the economic and geopolitical environment triggered by post-pandemic national economic recovery efforts and the war in Ukraine may adversely affect our people, operations and clients’ demands for our services and solutions, such as through nearer-term delay or abandonment of ongoing or anticipated projects due to potential shifts in our clients’ priorities and budgets, and longer-term increased nationalization trends in procurement. Potential impact Jacobs’ strategy recognizes the significant growth opportunity that our cross-market solutions and capabilities position us for in climate response. Accordingly, the company is investing in people and technologies. However, in the rapidly evolving technological and macroeconomic landscape, this investment has an associated risk of misalignment with client needs. We use our quantified 2050 TCFD scenarios to guide strategic investments, operational decision-making and long-term client engagement. Investment in redundant or dead- end technologies associated with unrealized scenarios could result in material impact to Jacobs. For example, insufficient research on new low-emissions technologies could lead to Jacobs investing in, promoting or advising on inappropriate, ineffective or financially inefficient transition solutions. This could impact our reputation and market share. Regardless of actual transition pathways, reduced (initial) market interest in low carbon transition solutions may exacerbate this risk. Jacobs' globally connected talent force collaborates to deliver solutions for clients, agnostic of geography. This relies upon client procurement models that are open to global professional service provision. Increased nationalization and heightened buy-local policies and regulation could reduce the effectiveness and competitive differentiation enabled by Jacobs' global delivery model and compound the existing talent shortage in key geographies like the United States, United Kingdom, Australia, and New Zealand. This may be offset to some degree by greater opportunities driven by onshoring and reshoring of markets in which Jacobs is a global leader, and supported by skills transferability, strong capability adjacencies in local geographies, and automation innovation. Examples include manufacturing of semiconductors, biopharmaceuticals, electric vehicles and batteries, and emerging “green” technologies.