IGO SUSTAINABILITY REPORT 2022— 61 60 —IGO SUSTAINABILITY REPORT 2022 Our Response to Climate Change Climate Change Policy Climate change is a critical global challenge, and its human causes must be addressed by all parts of society. At IGO, we care about the environment and take action on climate change. Therefore: We aspire to being carbon neutral across all operations and activities by 2035 We support greater use of renewable energy and other cost effective low-emission technologies, improved energy efficiency and its application in our operations We support an effective binding global agreement on climate change We continue to ensure that climate change is part of our planning process We support a price on carbon and other market mechanisms that drive reduction in greenhouse emissions and incentivise innovation Our Purpose & Values Governance & Risk Management Supplying products critical to clean energy Reducing our total carbon footprint We engage with our peers, governments, and society to share solutions and participate in the debate required to create effective public policy on climate change We help our host communities, and equip our operations, to adapt to the physical impact of climate change We believe that clean energy, including renewable energy generation, grid scale energy storage and the electrification of transport, is central to limiting the human causes of climate change. We believe that clean energy will make the planet a better place for every generation to come. Our teams are finding and producing the specialist products that will make clean energy storage mobile, efficient and effective enough to make long-term improvements to the lifestyle of hundreds of millions of people across the globe. Our Strategy Our strategy is informed by our winning aspiration to contribute to a better planet for future generations by supplying products that are critical to the clean energy transition. We do this with the aspiration to be carbon neutral in our direct operations and activities within our business. This aspiration to carbon neutrality by 2035 is fundamentally driven by the opportunities we see in supporting the energy transformation required to avoid more than 1.5oC of warming and meet the goals of the Paris Agreement. We believe that delivery on this target, and doing so in an accelerated, proactive, industry leading manner, is the right thing to do. We recognise that the world cannot decarbonise without the metals and products we produce, however we must do what we can to minimise the emissions related to the supply of these products. In this context, climate change-related considerations are embedded into IGO’s core strategic activities, planning and decision-making. We consider that our existing portfolio, combined with our targeted growth strategy, places us in a strong position to benefit from the global transition to a low-carbon economy. We are committed to realising these benefits while maintaining a resilient financial position, noting this will require a strong understanding of the uncertainties, risks and opportunities associated with climate change. Our approach to climate change is centred around: a) the supply of products critical to a clean energy future; and b) reducing our total carbon footprint. This is guided by our purpose and values and underpinned by our approach to governance and risk management. Measuring our Performance Sustainability Indicators and Targets Progress FY22 FY21 Read More Decarbonisation of our Operations Target: Carbon neutral by 2035 We aspire to be carbon neutral across our direct operations and activities by 2035, if not sooner. In FY22, our total Scope 1 and 2 emissions decreased by 2%. Page 62 Renewable energy generation Electricity generation at our Nova Operation contributes the largest portion of our total emissions profile. Targeting increased renewable energy penetration is a key step in reduction overall emissions. In FY22, Nova’s renewable energy penetration increased 26%. Page 65 Understanding supply chain emissions In FY22, more detailed Scope 3 reporting, capturing a greater portion of the IGO supply chain, has been completed. We have demonstrated our ability to influence suppliers and consider emissions as part of our contracting practice, as evidence through contract negotiations with airline partner Cobham. Climate change considerations are incorporated into all major contracts. Page 62 Governance and risk management Climate change strategy is routinely considered in Board and Sustainability Committee meetings. In FY22, the Board strengthened the link between executive remuneration and our climate change strategy by approving changes to the Long-Term Incentive Plan (LTIP) performance measures. Page 68 Investment in research and development We understand innovation and R&D to being a key enabler of change and progress on climate change. IGO is a key participant and member of both the ECM and FBICRC. We are piloting static battery storage and EV trials across the business. Page 63 Target met/acceptable performance Target on track/adequate performance Target not met/we need to do better
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