IGO SUSTAINABILITY REPORT 2020

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. During FY20, we completed our work to align with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). We collaborated with external experts to build on our existing climate change risk and opportunity identification and management processes, including application of scenario-based analysis. The intent of this work was to broaden the range of impacts considered, stress test current business and financial strategies, and improve our resilience using the resulting outcomes. The following sections summarise our current approach and future plans to manage climate change related impacts across the business, aligned with the recommendations of the TCFD. GOVERNANCE The Board’s Sustainability & Risk Committee oversees and monitors IGO’s risk management system and has a number of associated responsibilities, including regularly reviewing business critical risks and ensuring that new and emerging risks are dealt with adequately. The Committee’s charter explicitly requires climate change related risks to be incorporated into this process and discussed at committee meetings when relevant matters arise. IGO’s Executive Leadership Team (ELT) routinely consider climate change driven market and technology developments as driven by IGO’s strategic aspiration to become a globally relevant supplier of metals critical to energy storage and renewable energy. The Head of Safety, Health, Environment, Quality (SHEQ) & Risk holds a core accountability for strategic leadership and governance of sustainability related matters, including climate change. While performance against climate change related goals are not explicitly included in IGO’s Executive Remuneration Plan, a range of non- financial measures related to the sustainability of our business are included in the short-term incentive plan. These measures inherently include clean-energy drivers linked to climate change as embedded in our business strategy. Incentives linked to additional climate change goals are under consideration for potential future inclusion. At our Nova Operation, several roles are involved in the monitoring and optimisation of energy use, water, emissions and other climate change related performance, including the Mining Manager, Processing & Maintenance Manager, HSEC Manager and Business Improvement Superintendent. Across our exploration activities, the HSEC & Logistics Manager role is responsible for similar operating considerations. STRATEGY IGO’s strategic aspiration is to become a globally relevant supplier of metals critical to energy storage and renewable energy. This is fundamentally driven by the opportunities we see in supporting the energy transformation required to avoid more than 2°C of warming and meet the goals of the Paris Agreement. We believe that delivering on this strategy and doing so in a manner that is Proactively Green, will position IGO as a preferred investment option for progressive investors seeking ‘green’-tilting stocks for mixed portfolios and for inclusion in clean-energy/low-carbon focused specialist investment products. In this context, climate change related considerations are embedded into IGO’s core strategic activities, planning and decision making. We consider that our existing portfolio, combined with our targeted growth strategy, place us in a strong position to benefit from the global transition to a low-carbon economy. We are committed to realising these benefits while maintaining a resilient financial position, noting this will require a strong understanding of the uncertainties, risks and opportunities associated with climate change. Within IGO’s overall business strategy, climate-related activities focus on three key areas. 1. Growth strategy targeting metals critical to energy storage and renewable energy Our growth strategy specifically targets commodities expected to be in high demand as the world transitions to clean energy. These include nickel, copper, cobalt and other commodities which are increasingly used in batteries that power electric vehicles, provide grid scale energy storage, and solar and wind power generation. We closely monitor market and technology developments which may influence demand for these and other commodities and integrate this information into the execution of our strategic growth and exploration plans. 2. Proactively Green operations We continue to explore how we might better use renewables, energy storage and electric vehicles and mining equipment at our operations to reduce our own carbon footprint. Our most notable progress in FY20 was the completion of a hybrid solar PV-diesel electricity generation plant at our Nova Operation in November 2019 which has materially reduced diesel consumption, with greater than 10% of the Operation’s power needs now being met by solar. Notwithstanding this, domestic and global carbon policies are developing rapidly and lowering our emissions intensity will minimise potential impacts to our cash flow (including carbon price liabilities, energy price increases or removal of fossil fuel subsidies). Our Proactively Green strategy and publicly available environmental standards serve to align operational practices with our overarching strategy to contribute to the global transition to clean energy sources. IGO’s environmental standards specifically address the management of social and environmental impact assessments, air emissions, waste management (including the management of TSFs), land use and biodiversity management, water management and the rehabilitation and closure of our mines and exploration areas. 3. Optimising resilience Our risk identification and management processes include climate change related impacts, which have been at a screening level to date. In FY20, we deepened our resilience assessment to consider a wider range of impacts and timeframes and used scenarios to stress-test our resilience. This resulted in an improved understanding of the range of risks and opportunities which may apply to our current and future business and a refined mitigation and adaptation focus. We intend to continue actively monitoring our climate change resilience as external developments and our own asset portfolio evolves. Climate Change Risks and Opportunities To meaningfully assess our climate change related risks and opportunities, we defined three time horizons tailored to our business profile and activities: • Short-term time horizon of 0 – 5 years Focused on the existing operations in our portfolio (IGO 100% owned and operated Nova Operation and 30% non-operated interest in the Tropicana Gold Mine), our exploration activities IGO CLIMATE CHANGE POLICY Climate change is a critical global challenge and its human causes must be addressed by all parts of society. At IGO, we care about the environment and take action on climate change. Therefore: We aspire to being carbon neutral across all operations and activities by 2035 We support greater use of renewable energy and other cost effective low-emission technologies, improved energy efficiency and its application in our operations We support an effective binding global agreement on climate change We will continue to ensure that climate change is part of our planning process We support a price on carbon and other market mechanisms that drive reduction in greenhouse emissions and incentivise innovation We will engage with our peers, governments, and society to share solutions and participate in the debate required to create effective public policy on climate change We help our host communities, and equip our operations, to adapt to the physical impact of climate change AT A GLANCE DEVELOPED IGO'S CLIMATE CHANGE POLICY 15% 10% decrease in Scope 1 emissions reduction in overall energy consumption through the adoption of renewable solar power 2035 we aspire to be carbon neutral by 2035 66 — IGO SUSTAINABILITY REPORT 2020 IGO SUSTAINABILITY REPORT 2020— 67 OUR RESPONSE TO CLIMATE CHANGE