Climate Change Data

Discovery Silver Corp.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,733.37 tCO2e/year
Scope 1 Emissions:309.60 tCO2e/year
Scope 2 Emissions:3.99 tCO2e/year
Scope 3 Emissions:1,419.78 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:22,339.44 GJ/year
Water Consumption:2,733 m3/year
Waste Generated:1,105 metric tons/year (non-mineral)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Community Relations
  • Health and Safety
  • Water Management
  • Corporate Governance
  • Responsible Mining Practices

Environmental Achievements

  • Maintained zero environmental incidents.
  • Conducted environmental baseline study for Cordero project.

Social Achievements

  • Completed a Social Baseline Study engaging over 2,300 people.
  • Developed a Social Management Plan to mitigate potential adverse impacts.
  • Increased community investments to $41,393.
  • Women represented 28.4% of the workforce (goal: 30% by 2024).

Governance Achievements

  • Enhanced Sustainability Management System (SMS) with new policies and standards.
  • Provided training on Code of Business Conduct and Ethics.
  • Updated Nominating and Corporate Governance Committee charter to include ESG responsibilities.
  • 6 of 7 directors are independent; 33.3% of independent directors are women.

Climate Goals & Targets

Long-term Goals:
  • Conduct scenario analysis and align with TCFD recommendations; evaluate on-site energy generation.
Medium-term Goals:
  • Develop Water Stewardship Strategy; install wastewater treatment system; achieve 30% women in workforce by 2024.
  • Establish a Wildlife Management Unit (UMA).
Short-term Goals:
  • Reduce water consumption; restore land; build forest nursery; create reforestation program.
  • Decrease fleet emissions; improve drill rig efficiency.

Environmental Challenges

  • Increased DART rate due to two cutting injuries.
  • Increased GHG emissions due to expanded energy use tracking.
  • Water scarcity in the operating region.
  • Employee turnover (27.4%).
Mitigation Strategies
  • Enhanced procedures to minimize risks and hazards.
  • Developing a Water Stewardship Strategy and wastewater treatment system.
  • Updating salary strategy and enhancing employee value proposition.
  • Implementing a 5-point safety system and enhanced individual safety training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Local procurement prioritized; Contractor and Supplier Management Standard developed.

Climate-Related Risks & Opportunities

Physical Risks
  • Rising temperatures
  • Fluctuating rainfall
  • Water scarcity
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Energy efficiency improvements
  • On-site renewable energy generation

Reporting Standards

Frameworks Used: SASB Mining and Metals Standard, UNGC, UN SDGs

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 4 (Quality Education)
  • SDG 5 (Gender Equality)
  • SDG 6 (Clean Water and Sanitation)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 13 (Climate Action)
  • SDG 15 (Life on Land)
  • SDG 16 (Peace, Justice and Strong Institutions)

Discovery's initiatives contribute to these SDGs through various policies, standards, and programs related to health and safety, community development, environmental protection, and ethical business practices.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1692.77 tCO2e/year
Scope 1 Emissions:411.37 tCO2e/year
Scope 2 Emissions:2.60 tCO2e/year
Scope 3 Emissions:1,278.79 tCO2e/year
Renewable Energy Share:0.10%
Total Energy Consumption:21,445.07 GJ/year
Water Consumption:9,461 m3/year
Waste Generated:5.7 metric tons of hazardous waste/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Governance
  • Health and Safety
  • Community Relations
  • Water Use
  • Energy Use
  • Greenhouse Gas Emissions
  • Workforce

Environmental Achievements

  • Zero reportable environmental incidents.
  • Reduced total GHG emissions (Scope 1, 2, and 3) by 2% to 1,693 tCO2e.
  • Remediated over 22,000 m2 of land.

Social Achievements

  • Achieved Great Place to Work Certification with an 84% rating.
  • Achieved Empresa Socialmente Responsable distinction from CEMEFI.
  • Invested over $195,000 in community initiatives.
  • Spent approximately $26 million on local goods and services in Mexico.

Governance Achievements

  • 5 of 6 Board members are independent; 40% of independent Board members are women.
  • Updated Code of Business Conduct and Ethics to include information on a 24/7 whistleblower hotline.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve at least 30% women in the workforce by the end of 2024.
Short-term Goals:
  • Achieve compliance with Level 2 of the Industria Segura certification in 2023.

Environmental Challenges

  • Increased water consumption (2.5 times higher than the previous year) due to increased potable water purchases for the camp.
  • Increased Motor Vehicle Incident (MVI) rate (9.14) despite consistent number of incidents, due to lower overall vehicle mileage.
Mitigation Strategies
  • Implementing corrective actions to prevent recurrence of MVIs, including defensive driving training, GPS installation, proximity sensors, designated parking, and wheel chocks.
  • Developing a water management strategy to address water supply needs for mine construction and operation, considering community needs and other economic activities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Focus on local procurement; approximately $26 million spent on local goods and services in 2022.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Producing silver responsibly to support low-carbon technologies and infrastructure.

Reporting Standards

Frameworks Used: SASB

Certifications: Great Place to Work, Empresa Socialmente Responsable

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 1
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 16

Discovery's initiatives contribute to these goals through responsible operations, community investment, environmental protection, and ethical business practices.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Great Place to Work Certification
  • Empresa Socialmente Responsable distinction

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Received Mexican Government’s Quality Environmental Certification
  • Zero reportable environmental incidents
  • 21.09 GJ of renewable energy generated using solar panels

Social Achievements

  • Awarded Socially Responsible Enterprise Distinction by Mexican Center for Philanthropy
  • $19.2 million in goods and services purchased from local Mexican businesses
  • $5.0 million in salaries and benefits paid to local employees
  • $193,000 of direct community investments
  • 85% of employees in Mexico are local

Governance Achievements

  • Received Great Place to Work Certification

Climate Goals & Targets

Long-term Goals:
  • Establish Cordero as one of the lowest carbon footprint open-pit mines globally

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • Mexican Government’s Quality Environmental Certification
  • Socially Responsible Enterprise Distinction by Mexican Center for Philanthropy
  • Great Place to Work Certification