Independence Group Sustainability Report 2019

As the world’s population grows and global economic activity increases, the demand for minerals and metals will continue into the foreseeable future. Recognising the threats posed by climate change, we believe the prospects of a low carbon future will result in a substantial increase in the demand for the minerals and metals required to manufacture clean energy technologies. The World Bank forecasts that global demand for strategic, specialist minerals (such as nickel) will skyrocket 108 per cent by 2050. In this context, mining is an inevitable part of the world’s future, yet it will be different by necessity. The challenge for companies such as ours is clear: some mining practices impact on the environment and communities in ways that are increasingly unacceptable to civil society. Equally, the mining industry will experience growing demands to provide benefit to its shareholders, its stakeholders, and new and growing industries worldwide. The changes required in practical terms, together with the demands of emerging new technologies, will affect all parts of the mining life cycle. Thus, both IGO and the mining industry must change. At IGO, we recognise we must be a sustainable business that operates in a sustainable way. During FY19, we further enhanced our sustainability framework with the introduction of the Proactively Green concept. In essence, being Proactively Green requires that we work better. BETTER LAND ACCESS Proactively Green mining is characterised by improved land access practices that enables exploration and mining on the most prospective ground, wherever it is. Community concerns strongly influence the way the mining industry is regulated, both by means of statute and by the imposition of conditional mining approvals. However, the interests and influence of civil society has a more profound reach; this being the concept of having a ‘social licence’ to operate. A company’s social licence is perceived as a function of the effectiveness with which it engages with its host communities and the broader society. At the heart of a social licence to operate, is trust and legitimacy. Community members want quality engagement, clear mitigation of impacts as and when they occur, and a sense that they are getting a fair deal known as ‘shared value’. Building a strong social licence and sense of shared value requires time, money and commitment. At IGO, we have dedicated considerable resources to community engagement and to shared value creation. Our challenge is to improve the effectiveness of our engagement and the shared value we create. BETTER EXPLORATION Proactively Green mining is characterised by improved exploration techniques that are more effective at identifying prospective mineral targets, improved frequency of resource discovery, and a reduced need for land clearing and ecosystem disturbance. IGO’s most significant impacts related to our exploration activities are land clearing, habitat fragmentation and ecosystem degradation, coupled with invasive species benefaction. Currently, these impacts are mitigated by the prompt and effective remediation of affected areas and proactive invasive species management. However, in the longer term, a reduction in these impacts will be realised through the application of PROACTIVELY GREEN IGO SUSTAINABILITY REPORT 2019 — 17