IGO SUSTAINABILITY REPORT 2022— 89 88 —IGO SUSTAINABILITY REPORT 2022 Business Integrity Making a Difference Independent Assurance External & Internal Auditors Stakeholders IGO Board Managing Director & CEO Executive Leadership Team 7 Pillars of Sustainability Audit & Risk Committee People, Performance & Culture Committee Nomination & Governance Committee Sustainability Committee Corporate Governance engage like-minded suppliers and business partners who are committed to, at a minimum, operating in a safe, lawful and competitive manner. We expect our suppliers to work in accordance with IGO policies, standards and key principles, as defined in the Code of Conduct and Common Management System Standard 9 – Contractor Management and Procurement. These specifically include: • conduct business ethically and with integrity • protect health and safety • maintain high environmental standards and protect our environment • respect human rights; and • create shared value with society and communities. IGO’s supplier evaluation model defines the minimum sustainability requirements, acting as a methodology to ensure we prioritise ethical decision making when selecting and managing the suppliers we work with, as well as upholding fundamental human rights through our supply chain. We focus on sourcing individuals and organisations with shared values and consider macro-economic factors in our risk assessments that may impact goods and services. In FY23, we will continue to develop our understanding of our indirect supply chain emissions (Scope 3) and climate change impact, through our programs of work defined in the Our Response to Climate Change section on page 59. We will also develop a Supplier Code of Conduct to ensure our suppliers understand our expectation and management of modern slavery. We will continue to advance the level of integration of risk assessments into identifying current and emerging sustainability risks in existing and new suppliers. Product Stewardship Responsible product stewards seek to positively influence environmental and social impacts of their products through the value chain and the product life cycle. Having oversight of our supply chain and product end use is crucial to our reputation and ability to market products. We believe that companies maximise their value to society when they produce materials responsibly and engage downstream to promote their beneficial use. While originally the major focus of product stewardship was complying with regulation, today, proactive companies are putting emphasis on how their products affect the key social and environmental challenges like climate change and modern slavery. In parallel, conscious consumers, are increasingly choosing responsible brands and products where product stewardship has been effectively managed. We have again sought greater transparency of our product end use by engaging our customers to understand the final application of our products. Based on public statements and advice from IGO’s key nickel customers, we understand the majority of our products are processed for use in downstream battery products. This is in line with our Company strategy to supply products that are critical to clean energy and battery storage. Procurement Strategy IGO sets minimum requirements for the procurement of goods and services and the management of the associated contracts with these requirements, maintaining probity and accountability in procurement activities whilst obtaining value for money through competitive testing. Contractors are selected based on their ability to provide goods and services at a competitive price, within an acceptable level of risk, while also meeting the required technical specifications and conforming to IGO’s standards. To this end, IGO will develop and maintain procedures that specify the process for the procurement of goods and services, and the management of the associated contracts. The procedures will give effect to the following key principles: • with specified exceptions, including emergencies, the selection of a contractor to supply goods or services must be subject to competitive price testing • with specified exceptions, including emergencies, the purchase of all goods and services must be subject to: – a risk assessment – an evaluation process for selecting the provider of the goods or service – a contract (which includes purchase orders); and – product stewardship. Human Rights and Modern Slavery IGO is committed to upholding the fundamental human rights of all people we engage with in our business. We aspire to be a business which recognises and respects the rights and dignity of all people by putting in place policies and procedures which aim to stamp out unethical practices within our global supply chains and by ensuring all our people are free to operate in an inclusive environment regardless of sex, marital status, race, impairment, religion, political beliefs or social preference. As discussed on page 90, IGO released its second Modern Slavery Statement for the FY21 reporting period in FY22. The statement is publicly available on our website. Our approach to human rights is aligned with Australia’s national and international human rights obligations. We expressly state our respect for human rights in our Code of Conduct and reflect this in our purpose and values. Our Human Rights Policy clearly articulates our goals to undertake the following: • champion and promote a workplace culture which encourages diversity and inclusion without regard to factors such as sex, marital status, race, impairment, religion, political beliefs or social preference • recognise and respect Aboriginal cultural heritage and work with Aboriginal communities impacted by our operations in an open, transparent and collaborative manner to ensure we continue to deliver positive outcomes for all members of these communities • not tolerate any form of forced labour or servitude, including child labour and human trafficking • comply with our obligations under the Australian Modern Slavery Act 2018 by undertaking risk assessments to identify those parts of our business and supply chains where there is a risk of modern slavery practices taking place and work with our suppliers to improve their standards • prohibit all forms of corruption and bribery, as well as all forms of retaliation, discrimination, harassment and intimidation against any person reporting a breach of this policy; and • focus on continued learning and development for all employees to ensure our business practices are consistent with our values to promote and uphold the rights and dignity of all people. management framework and CMSS3 and will finalise and roll out the updated risk management framework during FY23. Risk management at IGO is overseen by the Board through the Audit & Risk Committee. The Committee operates in accordance with an approved Audit & Risk Committee Charter and assists the Board in overseeing and monitoring the risk management framework. IGO’s General Counsel and Head of Risk & Compliance is directly accountable for managing risk within the Company and regularly meets with the ELT to consider and address material risks. IGO’s risk management framework is designed to provide the Audit & Risk Committee and the Board with sufficient oversight to satisfy itself that management does not exceed the Board’s agreed risk appetite, that is, the profile and tolerance of the risks we are willing to take to deliver our strategy. Our risk management framework is based on the three lines of defence model, with key elements working together across the business to ensure strong risk management through identification of risks, defined systems and controls and assurance. We regularly review, assess and manage our risks at both a strategic enterprise level, and an operational and project level. Risks that are defined as material to the Company are reported to the Audit & Risk Committee and the Board, and formal risk updates are carried out through regular management reviews and facilitated workshops. Responsible Supply Chain Management Our supply chain partners are crucial to IGO’s success. Our approach to responsible sourcing is aligned to our purpose and strategy – ensuring the quality products we supply are made safely, ethically, sustainably and reliably. This extends further than our immediate operations and activities. The changing sentiment of conscious consumers choosing responsible brands and sustainably produced products is driving companies to consider their supply value chain by ensuring responsible production and having a clear oversight of their product end use. In line with our Code of Conduct, we expect all suppliers to maintain the highest standard of ethical behaviour in business dealings. We seek to
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