Sustainability Report 2021

Case Study: Influencing Scope 3 Emission Reductions During FY21, IGO signed a two- year contract extension with our airline partner Cobham. Cobham provides transportation for all our Nova Operation fly-in fly-out (FIFO) workforce. Employee commuting emissions are currently captured under Scope 3, however, form part of our total carbon footprint and are captured in our Scope 3 reporting. The Cobham contract extension secured the use of the Q400 and E190 aircraft types, that produce significantly less emissions than the current 146RJ aircraft used. The change in aircraft types will result in approximately 564t CO 2 -e/GJ emission savings per year. Cobham Regional Service Managing Director, Dean Brennan, said, ‘This commitment to using our lowest emissions aircraft demonstrates how serious IGO is about Making a Difference and achieving sustainable outcomes.’ Risk Management Climate change risks are integrated into IGO’s Company wide risk identification, assessment and management processes as detailed in our Risk Management Standard available on our website. Risk management accountability and oversight is an integral part of IGO’s governance. The IGO Board, Sustainability Committee, Audit & Risk Committee and ELT routinely consider climate change driven market and technology developments and are regularly provided with insights on trends and performance against climate-related risks and risk appetite. We recognise the importance of integrating climate change risks and mitigation strategies into decisions making processes, for example through the implementation of an internal carbon price. Operational risk assessments are conducted at the site/facility level and reviewed at least annually by project management teams. Outcomes are secured in IGO’s Meerkat enterprise risk database, which is then integrated into the whole-of-business Business Critical Risk Register for review by executive management and the Board where necessary. This is supplemented with a dedicated risk assessment across our business strategies and financial plans, including scenario analysis, to ensure that uncertainties and timeframes specifically relevant to climate change risks are appropriately considered. IGO uses a standard methodology to categorise risk which assigns risks to one of five categories. Appropriate controls are then identified, authorised and implemented according to the risk category allocated. IGO imposes a higher standard (i.e. is less risk tolerant) with regard to the management of Occupational Health, Safety, Environment and Community (HSEC) risk. IGO also maintains a Social and Environmental Impact Assessment standard which applies to all our exploration activities, projects and operations. This standard details IGO’s requirements for the completion of baseline environmental and socio- economic impact assessments, and ongoing impact monitoring, review and reporting. Climate change-related risks relating to water and biodiversity impacts are included within the coverage of this standard. 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 the near-term potential acquisition of operating mine assets. It is noted that mineral resources and ore reserves indicate our currently owned and managed operations will be reaching end-of-life in 2026. Possible low and high-impact regulatory developments were considered as well as foreseeable physical impacts based on near term climate forecasts. The recent joint venture transaction with Tianqi has not been included in our assessment of climate-related risks and opportunities for FY21, however will be included in next year’s disclosure. Similarly, the recent divestment of the Tropicana Operation during the financial year means it has been excluded from this assessment. Medium-term time horizon of 5 – 10 years: Focused on the execution of our growth and exploration strategies. As we are actively pursuing both brownfield and greenfield opportunities in Australia and internationally, the exact location, scale, infrastructure and operating conditions for our future portfolio is not yet known. As such, we considered how climate change-related impacts and uncertainties could have implications for decisions relating to new discoveries, developments and/ or acquisitions. Scenarios were used to identify areas where climate change may require greater focus in our planning processes going forward. Long-term time horizon (beyond 10 years): Considered longer-term transition and physical impacts for inclusion in the growth strategy, including additional screening criteria for potential development opportunities. These were generally consistent with medium-term impacts. The following table summaries the key risks and opportunities identified, along with management actions and plans. IGO SUSTAINABILITY REPORT 2021— 65