IGO SUSTAINABILITY REPORT 2022— 95 94 —IGO SUSTAINABILITY REPORT 2022 Our Financial Contributions During FY22, 7% of our suppliers were located within our host communities of Norseman, Esperance and Kalgoorlie. This was an increase from 6.5% in FY21. We spent $20M on the supply of goods and services from local businesses or contractors. Meeting Customer Requirements The value from our metal resources and market positions is optimised by IGO’s operations team. Our ELT and Board collectively drive commercial decisions across IGO’s value chain in consultation with the operations. This also includes working with our customers to ensure we meet their specific needs and to optimise downstream uses. In FY22, IGO’s key customers were: • Trafigura Pte. Ltd and BHP Nickel West Pty Ltd — purchase of nickel concentrate produced from the Nova Operation • Trafigura Pte Ltd — purchase of copper concentrate produced from the Nova Operation; and • Trafigura: Jinchuan Group Ltd and BHP Nickel West Pty Ltd – purchase of nickel concentrate produced from the Forrestania Operation. Investment in Research, Collaboration and Innovation We are committed to the continual investment in our organisational capability, innovation and technology to integrate innovation into core business operations. In line with our strategy, we seek better ways to utlise and maximise value from the resources we discover as we work towards our carbon neutrality goals. We acknowledge that collaboration with industry experts, peers, governments, and research organisations is crucial to our success in optimising our business value and the success of our industry and these innovation drivers and focus areas are key to bringing to life the mine of tomorrow. IGO’s strategy drives our participation and collaboration in industry leading improvement programs. We understand the potential that rapid advances in technological innovation has in transforming our industry and sustainable future. During FY22, IGO invested $0.5M in research and development programs to drive innovation across our business. This figure does not include the ongoing EV trials in collaboration with Barminco. Some of the research and development programs included: • FBICRC contributions • Amira Global – Sequence and Diagenetic Stratigraphy of the Neoproterozoic, Yeneena Basin: Implications for the Genesis of Startiform Copper Deposits (Queensland University) • CSIRO – UltraFine Fraction Soil Projects • University of Western Australia – Evolution of Proterozoic multistage rift basins • Curtin University – Geochemical appraisal of mafic and ultramafic rocks from a series of prospects along the Albany-Fraser Belt (UWA); and • EMC – Low Acid Laterite Leach Technology. Measuring our Performance Sustainability Indicators and Targets Progress FY22 FY21 Read More Local1 sourcing of goods and services 7.0% in FY22, an increase from 6.5% in FY21 While IGO sources some goods and services locally, we still have room for improvement Page 95 Total spend on Aboriginal owned or managed businesses $6.5M in FY22, an increase of 5% on FY21 This was predominantly to CV LOMAG Joint Venture for primary crusher and earthmoving services at the Nova Operation Page 94 Corporate giving payments We proudly continue to support corporate giving priorities in local health, education and environmental management. In FY22, we contributed $686k Page 54 1. Local sourcing includes the host communities of our Nova Operation – Norseman, Esperance and Kalgoorlie. Target met/acceptable performance Target on track/adequate performance Target not met/we need to do better Socio-Economic Contributions IGO continues to support the local communities and host governments in which our operations are located, and our goal is to leave host communities in a better economic and social position than when we arrived. Acting in an ethical, responsible and transparent manner is fundamental to the way we conduct our business, in accordance with our values. We seek to invest first locally to support the economic development in the communities in which we operate. This is followed by regional investment within Western Australia, then nationally and finally internationally. IGO’s economic contributions are measured by the dividends we pay, salaries and other employment benefits we provide to our employees, the money we spend on contractors and consultants, taxes and royalties paid, and payments made through our corporate giving activities. Our direct economic impact is largely centred in Western Australia and where possible, we buy goods and services locally. At the Nova Operation, the highest value contracts are for underground mining services, fuel, drilling services, haulage, binding agents for backfill and catering services. In FY22, our direct economic contribution comprised: • $412M in payments to employees in salaries and wages, payables to governments in taxes, state royalties and other government payments, returns to shareholders, total payments to Ngadju people and corporate giving contributions • $287M of payments to suppliers for goods and services; and • $71M reinvested into capital expenses, such as plant and equipment, mine properties and tenement acquisitions. During the year we released our Tax Transparency Report for the FY21 period, including detail on our approach to tax strategy and governance, effective tax rates and tax contribution summaries. The report adopts the Australian Government Voluntary Tax Transparency Code guidelines, as required for large and medium-sized businesses to publicly disclose tax information. Our FY22 Tax Transparency Report will be published in November 2022 and made available on our website. Supporting Local and Aboriginal Businesses IGO applies a preferential selection process when sourcing goods and services local to our operations. We support and favour businesses close to the areas where we operate and actively seek to engage and build capacity where suitable works are available. Providing opportunities for Aboriginal businesses is important to IGO and we will deliberately and specifically seek to identify contract works that might be suitable for local Aboriginal businesses. Our approach is guided by our Group Community Standard 2 – Aboriginal Employment and Business to drive the creation of Aboriginal employment opportunities across our business. IGO works with the relevant representative bodies, where applicable, to establish processes to support businesses owned and operated by Aboriginal people. In FY22, our total spend on Aboriginal owned or managed businesses was $6.5M. This was predominantly to CV LOMAG Joint Venture for primary crusher and earthmoving services at the Nova Operation.
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