Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community relations
• Social impact
• Safety
• Environment
• Climate change
• Human rights

Environmental Achievements

• Williamson mine environmental remediation largely complete; slimes impacted areas used for agriculture
• All operations achieved freshwater consumption KPIs for Q2 FY 2023
• Board approved Tailings Management Policy aligned to GISTM

Social Achievements

• Improved relations with KDM, CDM, and FDM following engagements
• Community engagement structures in place across all operations
• Significant progress addressing community grievances at FDM and CDM
• WDL provided humanitarian relief and compensation to those affected by TSF failure
• Quarterly production bonus introduced for South African employees up to Paterson Band C5
• WDL signed a Collective Bargaining Agreement with TAMICO

Governance Achievements

• New Delegation of Authority Policy and Matrix implemented to enhance governance
• Online due diligence platform implemented to improve supplier vetting
• Declaration of Interest Policy rolled out with online registers

Climate Goals & Targets

Environmental Challenges

• Lower diamond prices due to macroeconomic uncertainties, increased inventory, and lab-grown diamond competition
• Rand volatility against the US dollar
• Political instability in South Africa and Tanzania
• Liquidity challenges due to lower production, softening diamond prices, and operational issues
• Historical allegations of human rights abuses at Williamson mine
• Community factionalism and challenges in implementing community projects
• TSF failure at Williamson mine
• Illegal mining at Williamson mine
• Lower grades at Cullinan mine and lower tonnes mined at Finsch mine
• Safety performance regression due to ramp-up of extension projects
• Internal control shortcomings in Supply Chain function
• Climate change risks (physical and transition)

Mitigation Strategies

• Robust market-driven tender process and profit-sharing agreements
• Currency hedging
• Continuous monitoring of political and regulatory developments
• Close monitoring and management of liquidity risk, debt reduction efforts, and working capital management
• Implementation of the Independent Grievance Mechanism (IGM)
• Coordinated stakeholder engagement and management approach
• Environmental remediation and compensation for TSF failure
• Enhanced security measures to combat illegal mining
• Mitigation actions at Cullinan and Finsch mines to address grade and production issues
• Remedial actions, Group-wide learnings, and behavior intervention programs to improve safety
• Engagement of Partners in Performance (PiP) to improve Supply Chain governance
• Development of a Climate Change Strategy with adaptation and mitigation components
• Renewables Strategy to reduce Scope 1 & 2 emissions

Supply Chain Management

Responsible Procurement

• Online due diligence platform
• New third-party due diligence policy and procedures

Climate-Related Risks & Opportunities

Physical Risks

• Intense storms, flooding of mining shafts, overflowing tailings storage facilities

Transition Risks

• Costs associated with compliance to new standards, reducing GHG emissions

Reporting Standards

Frameworks Used: TCFD