Independence Group Sustainability Report 2019

IGO acknowledges the changing global climate and accepts the position expressed by the Intergovernmental Panel on Climate Change that continued emission of greenhouse gases will cause further global warming and that warming above 2°C, relative to the pre-industrial period, could lead to catastrophic economic and social consequences. Given this, we support the intent of the Paris Agreement to limit global warming to less than 2°C above pre-industrial levels. The large scale, long-term nature and complexity of climate change makes it uniquely challenging, especially in the context of economic decision making. Moreover, while some companies, investment organisations and nations have a growing understanding of the potential financial risks posed by climate change, many do not. Within this context, and albeit understanding that IGO’s operations are small in scale compared to other industry participants, we are committed to understanding our impacts and climate change related financial risks, and to contributing to the global transition to a low carbon future. We believe IGO is part of the green energy solution by delivering the specialist metals needed for battery storage technologies used in renewable energy storage and electric vehicles. Our purpose and strategy fully align with this direction. Our climate change program currently focuses on managing climate-related risk and opportunities, managing our energy use and greenhouse gas emissions, investing in low emissions technology and seeking ways to decarbonise our business. CLIMATE-RELATED RISKS AND OPPORTUNITIES Both our Executive Leadership Team and Board assess the resilience of our business to climate scenarios and transition risks as part of their strategic discussions. This includes consideration of climate change risk as part of IGO’s quarterly review of business-critical risk and a formal annual review of our climate change risk assessment. The climate change related risk categories applicable to IGO are: • physical risks arising from the increased frequency and severity of climate and weather-related events that damage property and disrupt trade; • liability risks stemming from parties who have suffered loss from the effects of climate change seeking compensation from those they hold responsible; and • transition risks arising from the sudden and or disorderly adjustment to a low carbon economy. It is the assessment of both our Executive Leadership Team and Board that climate change poses neither material physical nor liability risks to our business over the short to medium term, specifically over the period of the next one to ten years. However, we are currently exposed to transitional risks, as are other Australian businesses and the broader community. Such risks primarily arise from the ongoing uncertainty surrounding the Australian Government’s policy to give effect to its stated Paris Agreement commitments on greenhouse gas emission reduction targets. Although this risk is significant, it is unlikely to have a material impact on our business. OUR RESPONSE TO CLIMATE CHANGE Climate-related risk and opportunities Climate-related disclosures Managing our energy use and emissions IGO SUSTAINABILITY REPORT 2019 — 49