Independence Group Sustainability Report 2019

CLIMATE-RELATED DISCLOSURES We, like many others, are subject to increased expectation and scrutiny from stakeholders and investors regarding our response to climate change risks and uncertainties both within our business and across our supply chain. We proactively participate in third party external benchmarking activities to share as much information about our climate change approach and performance within the legal and confidentiality limitations of IGO. We continue to engage with external stakeholders to help us improve our understanding of what the impacts of climate change will mean to IGO and the metals we produce, and to communicate our disclosures in a timely and balanced manner. IGO has participated in the CDP climate change questionnaire since 2016. We also participate in the Australian Government’s annual National Greenhouse and Energy Reporting (NGER) scheme and the National Pollution Inventory (NPI). In 2017, the Financial Services Board’s Task Force on Climate-related Financial Disclosures (TCFD) released its recommendations for voluntary and consistent financial reporting on climate change risks. IGO supports the TCFD’s recommendations and has committed to the completion of a work program that will result in IGO quantifying its climate- related financial risk. Our work in meeting the TCFD requirements takes time. A summary of our progress to date is highlighted below. TCFD RECOMMENDATION IGO’S PROGRESS Governance – IGO is required to disclose the organisation’s governance around climate-related risks and opportunities. IGO’s Sustainability and Risk Committee reviews the Company’s approach for consistency with our purpose, values and strategy, for the effective management of business-critical risks (inclusive of climate change), and for our overall sustainability performance. The Committee reviews and approves our stated climate change position, outcomes and updates against the climate change risk assessments and has oversight of the actions being taken to align our disclosures with the TCFD framework. Management of our position and response to climate change is the responsibility of Keith Ashby, Head of Safety, Health, Environment, Quality (SHEQ) and Risk. Strategy – IGO is required to disclose the actual and potential impact of climate- related risks and opportunities on the organisation’s businesses, strategy, and financial planning where such information is material. IGO supports the intent of the Paris Agreement to limit global warming to less than 2°C above pre- industrial levels. IGO has a role to play supplying the metals required for a low carbon, green energy future, whilst also playing our part by managing our own energy use and emissions. Commitment: In FY20 IGO will complete specific scenario planning to better assess the resilience of our portfolio or products in a 2°C increase scenario. Risk management – IGO is required to disclose how the organisation identifies, assesses, and manages climate-related risks. IGO’s 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. In FY19 we again completed a climate change risk assessment for our business. This has provided us with types of climate-related risks and categories. The next stage of this work will prioritise and quantify climate-specific risks, which will allow us to develop business-specific climate change models and scenarios. We have implemented our plan to proceed with work to manage our physical, liability and transition risks. In FY19 IGO used a preliminary carbon price to inform one of its investment decisions - the commitment to invest in the solar farm project at the Nova Operation. Commitment: In FY20 IGO will set an internal price on carbon as an input for investment decisions. Metrics and Targets – IGO is required to disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. IGO is taking steps to identify and assess options to decarbonise our business. In future reports, we will include more about the outcomes of this work. Further, we disclose our Scope 1 and 2 emissions in our annual Sustainability Report. Commitment: In FY20 IGO will introduce two new metrics: • The ratio of renewable energy to non-renewable energy used per tonne of product produced (KWh/t). The associated target will be a year-on-year increase. • The percentage of IGO’s product sold to customers for use in renewable energy storage and electric vehicles. The associated target will be an increase in the percentage sold to renewables customers on each contract cycle. 52 — IGO SUSTAINABILITY REPORT 2019 SECTION 4 OUR RESPONSE TO CLIMATE CHANGE