Independence Group Sustainability Report 2019

RISK DESCRIPTION MITIGATION AND OPPORTUNITIES Physical Increased intensity and frequency of climate and weather-related events that damage property and disrupt IGO’s activities. This includes cyclones, high intensity storms, increased frequency and severity of storm damage, extreme rainfall events, electrical storms and bushfires. Extraordinary rainfall events could, if not properly mitigated, cause overflow and consequential failure of a tailings dam, disruption of transport corridors, flooding of mine workings or process areas, flooding or other damage of camps, dispersal of mining materials off-site causing significant downstream pollution. Extended periods of high temperature and low rainfall could increase the frequency and destructive potential of bush fires in the areas where IGO operates. Increase in average temperatures resulting in a general increase in water demand in environments where there is scarcity of good quality water. Increase in number of force majeure claims and hence cost of insurance. Active Mitigation. IGO will continue its ongoing program of risk assessments and the associated evaluation of the adequacy of our critical controls. IGO will continue to include the potential for extreme climatic events in our assessments of infrastructure integrity and in the design of new infrastructure. IGO will continue to maintain, review and improve our general preparedness for potential emergency events associated with extreme weather (specifically flooding and bush fire), in accordance with IGO Common Management System Standard 13 – Emergency Preparedness and Business Continuity Planning. Increased frequency and severity of heat waves and increasing issues associated with heat fatigue and stress. IGO’s people often work in remote locations where summer temperatures are typically high. Any extreme events pose an additional threat to the health and wellbeing of our people in such circumstances if not properly mitigated. Active Mitigation. IGO will continue its ongoing adherence to IGO Group Occupational Health Standard 1 – Fitness for Work and Wellbeing in respect of controlling how and when our people work and rest in environments that are subject to temperature extremes. In FY20 we will review the adequacy of this standard. Supply-side risks arising from the increased frequency and severity of climate and weather-related events. Such events may give rise to a range of enviro-socio- political and economic circumstances that cause supply chain disruption. Physical, liability and transitional risks impacting both the capacity of our suppliers to deliver to us in a timely fashion and without excessive increases in cost, such as the foreseeable increase in shipping freight costs associated with tighter ship emission controls. No mitigation at present. IGO is considering the imposition of a requirement on our key suppliers that they adhere to the Task Force on Climate- related Financial Disclosure (TFCD) requirements. Opportunity. IGO has the opportunity, albeit small, to further add momentum for the general adoption of the TFCD requirements. Demand-side risks arising from the increased frequency and severity of climate and weather-related events. Such events may give rise to a range of enviro-socio- political and economic circumstances that change demand for IGO’s products. Physical, liability and transitional risks impacting on demand for our products. Over the mid to long term (10 to 25 years), the mining sector will experience changes in the demand for its various products as a result of the expected climate change response. Such changes will benefit some organisations whilst financially impacting on others. Active Mitigation. IGO will continue to maintain surveillance of the metals market through business-as-usual market sensing, stakeholder engagement and participation in industry associations. Opportunity. The global response to climate change presents a key opportunity for IGO. We anticipate increasing demand for the metals required for renewable power technologies. Specifically, we intend on delivering the specialist metals needed for battery storage technologies used in renewable energy storage and electric vehicles. IGO’S CLIMATE CHANGE RISKS AND OPPORTUNITIES 50 — IGO SUSTAINABILITY REPORT 2019 SECTION 4 OUR RESPONSE TO CLIMATE CHANGE