Sustainability Report 2021

Carbon Removal and Offsets Strategy Our strategy surrounding carbon removal and offsets does not substitute the decarbonisation and GHG emission reduction of our operations, instead it will be used in parallel while we are challenged by technology readiness and commercial availability. We recognise that investment in carbon removal must occur in tandem with strong emission reduction efforts for our own operations. We recognise the importance of linking our total carbon footprint reduction strategy with our carbon removal strategy. While we are at the point where our business is carbon intensive, we have limited life of mine at our Nova Operation, and low emission technologies are yet to be economic or fully developed, we will have a greater reliance on offsets and carbon removal. This is depicted in the graphic below. Offsets may be generated through projects in which GHG emissions are avoided, reduced, removed from the atmosphere or permanently stored through sequestration. We will target the following carbon removal projects: 1. emissions avoidance – reducing absolute emissions through project activity which would not have occurred under business as usual scenarios, preventing carbon that would have been released into the atmosphere 2. sequestration and natural carbon removal – removing carbon from the atmosphere and storing in plants and soils; and 3. carbon capture and storage via mineral carbonation. IGO’s carbon removal strategy is built on key principles that inform the types of projects we will look to develop. These principles have been developed in line with the World Business Council for Sustainable Development (WBCSD) and Nature4Climate natural climate solutions principles, alongside our own drivers and prioritisation criteria. IGO carbon removal principles: • Mitigation hierarchy : as a first step, we will prioritise emission reduction of our operations and activities, following the mitigation hierarchy of avoid, minimise and finally offset. Carbon offsets will be used in conjunction with our own emissions reduction projects, as an interim solution. • Secondary benefits : while we recognise offsets are an interim solution for hard to abate emissions and lack of commercially viable technology solutions, they provide an opportunity for significant co-benefits. We will avoid harm, investing in projects that have real and positive secondary benefits, including: – the protection, sustainable management, or restoration of natural resources – the delivery of value to society, by addressing societal challenges including loss of biodiversity, salinity and climate change – social opportunities, including indigenous partnerships, local employment and the creation of long-term sustainable opportunities for the host communities in which we operate; and – the opportunity to be carbon negative by removing more carbon from the atmosphere than we emit. • Scientific verification : all IGO projects will have sound and verified carbon measurement and accounting methodologies, ensuring high environmental integrity of offset credits. Emission reduction and removals must be real, quantifiable and verifiable, and tracked to avoid double counting. • Local considerations : we will invest in Australian offset projects, with an initial focus on areas within our operational boundaries or host communities. ASPIRATION TO CARBON NEUTRALITY Importance of linking our carbon neutral strategy with carbon removal and offsets High Low Carbon Intensity High carbon intensive business, where carbon reduction technologies are yet to be economic or fully developed Greater importance on offsets and carbon removal as part of our business decarbonisation strategy Low carbon intensive business, where carbon reduction technologies are economic and commercially available Carbon removal will not be as important in the development and implementation of our decarbonisation strategy Importance of Carbon Removal High Low IGO SUSTAINABILITY REPORT 2021— 63