IGO SUSTAINABILITY REPORT 2022— 75 74 —IGO SUSTAINABILITY REPORT 2022 Our Response to Climate Change Our Climate Action Plan FY22 Scorecard FY23 Programs of Work Decarbonisation of our Operations ✓Solar optimisation at Nova: inverter issues were repaired to ensure solar is optimised to 90% of theoretical output ✓Ventilation on demand at Nova: hardware installed with the majority of fans linked in mine control. Work is still underway to understand the power metrics and emissions data following installation ✓Construction has commenced for a hybrid Vanadium Redox Flow Battery at one of our major exploration camps, which involved two 40kWh batteries, 22kW PV solar and two wind turbines • Consolidation and improved understanding of IGO emissions profile following Western Areas acquisition, capturing life-of-asset forecasts for Nova, Forrestania, Cosmos and our joint venture assets • Decarbonisation roadmap for Cosmos • Solar farm expansion to be completed with an additional 10MW solar and 10MWh battery system providing an estimated 24% emission reduction at Nova • Ongoing static storage trials • Ongoing EV trials at Nova with the ECM Understanding Supply Chain Emissions ✓Climate survey provided to the top eight suppliers at the Nova Operation to better understand the alignment of our key suppliers with the IGO Climate Change Policy, strategy and Paris Agreement stretch goals ✓We have demonstrated our ability to influence suppliers and consider emissions as part of our contracting practice, as evidenced through contract negotiations with airline partner Cobham • Further mapping of supply chain emissions to incorporate Cosmos and Forrestania key suppliers, and identify those suppliers in which we have influence (incorporated into our total carbon footprint) • Work with material suppliers to understand emissions reduction roadmaps and policy alignment, to scale up our shared response to climate change • Inclusion of climate change requirements and criteria in all major contracts Governance and Risk Management ✓Climate change strategy and response considered routinely in Board and Sustainability Committee meetings ✓People, Performance and Culture Committee strengthened the link between executive remuneration and delivery of our climate change strategy by approving changes to the LTIP performance measures • Commitment to update TCFD and scenario analysis to capture IGO’s changing emissions profile and recent Western Areas acquisition • Review climate change-related opportunity and risk assessment on the basis of the scenario analysis for the business, including joint ventures Internal Carbon Pricing and Decarbonisation Fund ✓ICP and decarbonisation fund incentivised improvements and facilitated decarbonisation projects across the business • Roll out ICP mechanism and decarbonisation fund across all three operations • The decarbonisation fund is expected to allocate approximately $7M-10M of funds during FY23 Offset Strategy ✓Established an IGO specific offset procurement framework, to ensure we target ACCUs of high integrity and additionality ✓Began building our portfolio of ACCUs • Ongoing procurement of ACCUs aligned with IGO’s offset procurement framework and following completion of detailed independent due diligence • Research and development into future offset projects and offset methodologies Research and Development ✓Ongoing static storage and EV trials across the business ✓Key participant and member of both the EMC and FBICRC • Ongoing prioritisation of research and development to accelerate IGO and the broader mining industry’s response to climate change Renewable Expansion Addition of a 10MW solar farm and 10MWh battery energy storage system at the Nova Operation (to complement the current 5.5MW solar farm) 2035 Aspiration to be carbon neutral across our direct operations and activities 26% Increase in renewable energy generation at the Nova Operation in FY22 Reduction in Scope 1 and 2 emissions since our FY19 baseline 16% Performance Metrics and Targets Reducing our GHG emissions at our operations is a key component of our climate change strategy. The rapid shift in the external context on climate change has accelerated our response and development of a climate action plan to reduce IGO’s total carbon footprint. This plan acknowledges the increasingly ambitious emissions targets that many governments set in the lead up to COP26, including the Australian federal government. Our current long-term aspiration is to achieve carbon neutrality across our direct operations and activities by 2035. However, we recognise we have the ability and mechanisms to accelerate this target, particularly at our Nova Operation. We have already seen a 14% reduction in the Nova Operation emissions since the FY19 baseline, and 16% reduction across the business. The graph below highlights our roadmap to a 35% emissions reduction at the Nova Operation by FY24. The table on page 75 summarises our progress during the financial year to accelerate decarbonisation across our business, and our FY23 commitments and programs of work. Emissions intensity at the Nova Operation has decreased since the solar farm was commissioned, and will continue to do so following the expansion of renewable penetration and an additional solar farm and battery storage system at Nova. The renewable energy expansion, which will be completed during FY23, will allow Nova to operate on 100% renewable power for up to nine consecutive hours during summer and spring months. The graph below highlights our roadmap to achieving a 35% emissions reduction at the Nova Operation by FY24. The programs of work identified in the table on page 75 will play a key role in achieving this short-term target and accelerating our response to climate change. Nova Operation Decarbonisation Roadmap to 2024 1. FY19 Scope 1 and 2 emissions baseline. 0 80,000 FY191 Ventilation on Demand Static Storage & EV Trials Current 5.5MW Solar Farm 10MW Solar and Battery Expansion FY24 Forecast 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Tonnes carbon dioxide equivalent -35%
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