IGO SUSTAINABILITY REPORT 2022— 5 4 —IGO SUSTAINABILITY REPORT 2022 Overview Chair and CEOMessage It is our joint pleasure to present IGO’s Sustainability Report for the 2022 financial year. At IGO, sustainability is at the core of our business. It defines our purpose, as well as informing how we go about our business and how we engage with our stakeholders. We ensure that we operate our business in a manner which minimises impact on the planet and considers all of our stakeholders long into the future. Our approach is multi-faceted and our commitment to sustainable practices are engrained in our corporate culture, empowering our people to constantly challenge the way we do things and generate ideas on how we can do better. The mining industry has a critical role to play in tackling some of the many sustainability issues facing our world today. IGO identified this opportunity several years ago and embarked on a strategy focused on transforming our portfolio to be aligned with the clean energy industry, specifically by producing the products which are critical to the generation, storage and transmission of renewable energy. In FY22, we achieved excellent progress with this part of our strategy through the formal commencement of our investment into the TLEA joint venture and the acquisition of Western Areas Limited. These transactions, which resulted in IGO investing in a world-class integrated lithium business while also enhancing and expanding our nickel business, have transformed our business into a unique clean energy metals business. Both lithium and nickel play a critical role in the manufacture of highperformance lithium-ion batteries, a key technology which is enabling the electrification of transport in particular. This is IGO’s eighth dedicated Sustainability Report which aims to report on sustainability matters which are material to our stakeholders, and how we intend to address these matters into the future. Guided by our seven pillar sustainability framework, IGO aspires to transparently and comprehensively report on our sustainability practices and performance. Our commitment to high levels of sustainability performance and reporting has been consistently recognised by external parties including global ratings agencies. In FY22, IGO was included in the Dow Jones Sustainability Australia Index, the Dow Jones Sustainability Asia Pacific Index and the FTSE4Good Index, and recognised in the S&P Sustainability Yearbook for the third consecutive year. Having our achievements recognised in this way is outstanding recognition of everything our people do each day to make a difference. Reflecting on FY22, we are proud to note the excellent progress on several key areas of sustainability. Caring for the Climate Undoubtedly, climate change and the impact this phenomena is having on our planet is one of the greatest and most complex challenges we all face. IGO acknowledges the scientific consensus of a changing global climate and supports the position expressed by the Intergovernmental Panel on Climate Change (IPCC) that continued increases in greenhouse gas emissions could precipitate major social and economic consequences. IGO has an aspiration to be carbon neutral across our direct operations and activities by 2035 and in FY22, we have made excellent progress on several initiatives designed to reduce our carbon footprint. At Nova, where in FY22 we produced the majority of our group Scope 1 carbon emissions, we have committed to expanding the solar generation capacity and adding a Battery Storage System. This expansion will allow Nova to operate on 100% renewable energy in an “enginesoff” mode for up to nine consecutive hours during the summer and spring months – the first time this has been achieved at an operational mine site. This outstanding project, delivered with our energy partner, is expected to deliver a further 24% saving in carbon equivalent emissions, and demonstrates our commitment to decarbonisation. FY22 was also the first year in which we had our internal carbon price mechanism in place. This internal carbon price generates a pool of capital which IGO will commit to reduce its emissions profile, either through reduction/avoidance projects or via an investment in offset projects. In FY22, the carbon price generated $3.7M, which drove investment in battery storage technology at our exploration camps and Nova Operation, and procurement of Australian carbon offsets to complement our carbon neutral strategy. Read more on IGO’s climate strategy and programs of work on page 59. We are also pleased to report on the high levels of engagement on carbon reduction we have had with our various joint venture partners, including Tianqi. Both companies share a commitment to carbon reduction initiatives at the Kwinana Refinery and, through our joint interest in the Greenbushes Operation. We look forward to reporting on these initiatives throughout FY23 and beyond. Caring for Our People In FY22, we also retained our enduring commitment to our people – to ensure their safety and to enhance their physical, mental and financial wellbeing. While we have achieved consistent improvements in our lead safety indicators during FY22, we have seen our TRIFR increase from 13.2 at 30 June 2021 to 14.1 at 30 June 2022. As always, we can do better, and the Board and Executive Leadership Team (ELT) have confidence that the programs of work planned for FY23 should deliver a safer workplace for our people. Most importantly, the number of serious incidents has decreased, as well as the severity of injuries recorded. The increased prevalence of COVID-19 within the Western Australian community during FY22 represented a significant health and safety challenge for our people and their families. In response, our approach focused on ensuring our people had the time and assistance they needed to manage illness within their families, while also ensuring business continuity in the face of rising absenteeism. Thanks to excellent planning and robust systems and processes, IGO managed this period with a high degree of care for our people, while avoiding material disruption to our business. We would like to extend thanks to everyone at IGO for remaining adaptable and resilient during this complex time. While COVID-19 is now endemic within the community, IGO has maintained a high level of support for our people and their families. We are pleased that the commitment and investment we make in our people continues to foster high levels of employee engagement which is helping to contribute to our unique culture. This was reflected in our 2022 Engagement Survey where our people told us IGO was an ambitious, friendly, supportive and inclusive place to work, and that they feel valued and aligned with our values. Our culture remains a key differentiator for IGO, assisting us attract and retain the best people while fostering a work environment enjoyed by our people. Caring for Our Community With an expanding portfolio of operations and joint ventures, IGO remains committed to positive and collaborative engagement with our local community. As a purpose led organisation, we pride ourselves on Making a Difference for all of our stakeholders. As a significant exploration tenement holder, particularly across Northern and Western Australia, IGO maintains high levels of engagement with Traditional Owners, and ensures there are formal agreements in place with all parties before any works are undertaken. This same approach applies to our operating sites and, in FY23, we will commence a process to enhance interactions with Traditional Owners of lands which we have acquired via the Western Areas acquisition. Also in FY23, IGO will be working towards the development of a Reconciliation Action Plan (RAP) which we hope will significantly build on the working relationships and agreements we have in place with our Aboriginal stakeholders, by generating an ambitious shared framework that coordinates all our efforts in enhancing the three pillars of reconciliation: relationships, respect and opportunities for Aboriginal stakeholders. We look forward to sharing updates on the progress throughout the year. We are also proud of our ability to support a generous Corporate Giving Program which, in FY22 provided $686k in direct funding and in-kind support for a range of programs that create shared value for our communities. With a focus on child health and education, IGO provided support for 60 organisations, while our people donated over 314 hours of volunteer work across our community. Acknowledgements We are immensely proud of IGO’s sustainability performance and reporting, and we thank all of our people for the enthusiasm with which they support our purpose and make a difference every day. We are also thankful for the way in which our host communities, suppliers, contractors, industry associations and regulators have embraced our efforts to lead the way on sustainable initiatives and to help promote the outstanding work that is being done across our sector to ensure we, as an industry, continue to consider the needs of all our stakeholders. In closing, we would also like to thank our shareholders and proxy advisers for your support and constructive engagement on sustainability and governance issues throughout the year, and for your ongoing faith in the IGO Board and leadership team to deliver on your expectations. We trust this report provides a comprehensive and detailed overview of how IGO is seeking to make a difference and, as always, we encourage your feedback. Thank you for your ongoing support. Michael Nossal Chair Peter Bradford Managing Director and Chief Executive Officer Michael Nossal and Peter Bradford
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