INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

CONTINUAL IMPROVEMENT A sustainable business is an adaptive and resilient business. Our resilience and capacity to adapt are determined by many factors; some are external, but most remain within our control. We do not settle for the status quo. We continually seek to improve how we do things and how we might prepare ourselves for change. So how do we measure success? For our incremental and continuous improvement work, we look to our performance metrics, many of which are published in this report and in our 2017 Annual Report. But the greater measure of our success is the test of time. IGO has been operating for nearly 17 years. We have grown from strength to strength and have every confidence that we will continue to do so. This year we have again made significant progress on many fronts. Our most notable improvements have been to: • strengthen our team through the targeted recruitment of great people; • grow our business with the Nova Operation reaching commercial production; • significantly expand our exploration landholding in the Fraser Range; • progress our efforts to create an IGO culture with ‘The IGO Way’; • increase our corporate giving, deliver shared value and make a positive impact in our host communities; and • continue ongoing system improvements – our business is increasingly efficient while adopting a more rigorous governance process. Measuring the sustainability of our business, as it is in any enterprise, is unavoidably subjective. Internally, we assess performance based on a range of metrics including performance. As the reporting effort is non-trivial and comes at a cost, the value created for IGO by engaging with additional agencies is marginal at best. Notwithstanding this, IGO will continue to monitor developments and may consider modifying our methodology in the future. The CDP methodology ranks IGO at disclosure level, benchmarked against our peer companies in the mining sector. The ranking indicates CDP’s assessment of IGO’s position on integrating climate change into its business practices – currently in the early stages of development. IGO reports all Scope 1 and Scope 2 emissions under requirements of the National Greenhouse and Energy Reporting Act 2007 (NGER Act 2007), however, it is yet to implement targets. In FY18, IGO will independently verify its greenhouse gas emissions and will include climate change impacts in the group risk management assessments. Sustainability performance assessments are also completed by various non-government organisations and investment bodies and some place these assessments in the public domain. For example, the Australian Council of Superannuation Investors (ACSI) recently completed a review entitled ‘Corporate Sustainability Reporting in Australia: An analysis of ASX200 disclosure’ (refer to https:// acsi.org.au/publications-1/ research-reports.html ). This year, for the second year in a row, ACSI rated IGO’s sustainability reporting as sector ‘Leading’. On this basis, ACSI advise investors that IGO is ‘assessing, monitoring and seeking to improve performance regarding material sustainability risks in a measurable way over a specific time period’. external stakeholder opinion. In our previous two reports, we have presented a diagram to illustrate our conceptual pathway to sustainable development and its four key milestones, and we do so again in this report (refer to Figure 2). Our Executive Committee have assessed that IGO is currently positioned between Phase 2 and Phase 3 on our pathway to sustainable development, having made important incremental improvements in FY17. IGO’s Executive Committee is committed to making key business decisions in full consideration of the social, environmental and inter- generational consequences. It remains IGO’s aspiration that our ongoing effort will culminate in our organisation embracing full and open accountability for the economic, social and environmental aspects of our business activities while operating in accordance with our Code of Conduct. Self-assessment aside, it is also important to note that there are at least 20 sustainability ratings agencies of note. Many larger companies provide data to a suite of these agencies. After consideration by the Executive Committee, IGO now only provides data to one: CDP (refer to www.cdp.net ) the global disclosure system that enables businesses to measure and manage their environmental impacts. We have made this decision for two reasons: 1) CDP is one of the most widely used agencies with approximately 4,000 participating businesses around the world, and 2) CDP is a not- for-profit registered charity. Sustainability ratings agencies typically encourage reporting (data donation), assess sustainability performance, sell the comparative data, and then offer consultancy services to aid improvement in 12 — IGO SUSTAINABILITY REPORT 2017