Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and safety
• Communities & Human Rights
• Employment
• Environment and Biodiversity
• Emissions, Wastes and Effluents
• Governance

Environmental Achievements

• Recycled or reused water increased to 26% of our process water used in FY2019 compared to 14% in FY2018.
• Reagent optimisation within the concentrator plant at Mt Weld led to a significant reduction in diesel combustion, further reducing greenhouse gas emissions.
• Completed the Mt Weld Tailings Dam Questionnaire in response to the Investor Mining & Tailings Safety Initiative.

Social Achievements

• Lynas Malaysia was awarded a Gold medal CSR rating by EcoVadis, ranking among the top 5% of organisations evaluated.
• Lynas Malaysia celebrated the achievement of one-year LTI free.
• Direct community investment expenditures across our operations were approximately AU$385,000.

Governance Achievements

• Became a signatory to the United Nations Global Compact (UNGC).
• Established a Supplier Sustainability Policy and Code of Conduct.
• Lynas Malaysia was awarded a Gold class award for 2018 by the Malaysian Society for Occupational Safety and Health.

Climate Goals & Targets

Environmental Challenges

• Intermittent water supply issues in 2018 in Malaysia.
• Increased greenhouse gas emissions due to operational expansion and increased production.

Mitigation Strategies

• Constructed a larger, third water storage pond in Malaysia.
• Implemented initiatives to minimise energy usage, including preferring rail transportation to truck and procuring inputs from local suppliers.
• Implemented a Golden Rules training program in Malaysia to reduce injury rate and improve safety performance.

Supply Chain Management

Supplier Audits: Supplier audits have commenced.

Responsible Procurement

• Supplier Sustainability Policy and Code of Conduct
• Supply Chain & Sustainable Procurement Training for procurement team

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC, ICMM Sustainable Development Principles

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: No additional external assurance has been sought

Sustainable Products & Innovation

• Condisoil (soil conditioner, commercialisation paused)

Awards & Recognition

• Malaysia Best Employer Brand Award Certification
• Gold class award for 2018 by the Malaysian Society for Occupational Safety and Health

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Communities & Human Rights
• Employment
• Environment & Biodiversity
• Product Stewardship
• Supply Chain Management
• Climate Change

Environmental Achievements

• Achieved a result of 4.36m3 of permeate water per tonne of ore in FY19, ahead of target. Reduction in total tailings volume stored at Mt Weld despite increased tailings deposition from operations due to increased stored density of tailings through the utilization of AMC technology.
• Zero environment-related incidents in FY20. No major discharges of chemicals, oils, or wastes to the environment occurred.

Social Achievements

• Lynas Malaysia celebrated one year LTI free (Lost Time Injury).
• Local employees represent 97% of Lynas Malaysia’s workforce.
• Direct community investment expenditures across our operations were approximately AU$345,000.
• Company-wide turnover rate for 2020 was approximately 3.6%, well below the industry standard of 15%.

Governance Achievements

• Lynas Malaysia received a “Gold” CSR rating from EcoVadis (top 5%).
• Lynas received an ‘A’ ESG rating from MSCI.
• Established a Supplier Sustainability Policy and Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Slight increase in water consumption in FY20 due to inefficiencies from temporary industry shutdowns arising from COVID-19.
• Overall rise in emissions in 2019 largely attributable to inefficiencies during production ramp-up to meet increased demand.

Mitigation Strategies

• Improving water recycling will continue to be a key project in FY21.
• Initiatives implemented to minimise energy usage; prefer rail transportation to truck; procure inputs from local suppliers to reduce transport costs and related emissions.

Supply Chain Management

Supplier Audits: Commenced in 2019 for all current suppliers.

Responsible Procurement

• Lynas Group Supplier Sustainability Policy and Code of Conduct; requires suppliers to respect employee rights, institute strong health and safety and environmental protection standards, and establish zero-tolerance policies against corruption and bribery; avoid conflict minerals.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns, particularly the potential effect on water supply

Transition Risks

• Geopolitical factors
• Political risks and government actions
• Energy transition to renewables

Opportunities

• Transition to a low-carbon economy will provide strong opportunities for our business

Reporting Standards

Frameworks Used: GRI Standards: Core option, Mining & Metals Sector Supplement, UNGC, ASX Corporate Governance Council, Corporate Governance Principles and Recommendations, 3rd and 4th Editions

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Third-party Assurance: No additional external assurance

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Lynas' operations and products contribute to these goals through various initiatives detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Gold Class award for 2018 from the Malaysian Society for Occupational Safety and Health (Lynas Malaysia)

Environmental Metrics

ESG Focus Areas

• Governance
• Climate Change
• Environment
• People
• Communities

Environmental Achievements

• Reduced diesel consumption by over 870,000L at Mt Weld due to a new processing flowsheet reducing energy demand of the diesel-fired boiler by 19%
• Zero significant water-related incidents at both operating sites
• Zero significant environmental incidents
• Improved tailings consolidation (dry density) for all three TSFs at Mt Weld due to mudfarming resulting in a 50% reduction in tailings volume requiring storage

Social Achievements

• Increased percentage of female employees to 19.2% (from 15.5% in FY20) and 21% in senior executive positions (from 16.7% in FY20)
• Company-wide turnover rate below industry standard at approximately 9%
• No workplace fatalities or prosecutions
• Provided additional practical support to Malaysian communities affected by the pandemic and extreme weather events
• Released first Modern Slavery Statement
• Conducted Modern Slavery training in Malaysia and Australia

Governance Achievements

• Implemented advanced security tools to monitor and take action on potential cyber-security threats
• Undertook third party network penetration testing confirming compliance with security standards
• Completed external security assessments and implemented recommended enhancement actions
• Conducted regular cyber-security awareness training and phishing simulation testing for all staff

Climate Goals & Targets

Environmental Challenges

• COVID-19 related temporary production shutdowns and reduced production capacity impacting GHG intensity targets
• Additional water utilized in the flotation process at Mt Weld to negate the effects of different ore types being processed
• Supplier site audits affected by COVID-19 movement restrictions

Mitigation Strategies

• Implemented efficiency measures despite reduced production
• Improved concentrate quality from additional water usage negated the need for higher chemical consumption in downstream processes
• Undertook audits of largest suppliers within Malaysia and further analysis of supply chains to identify higher-risk suppliers
• Developed a modern slavery Supplier Assessment Questionnaire

Supply Chain Management

Supplier Audits: Audits of largest suppliers within Malaysia; further analysis of supply chains to identify higher-risk suppliers; development of a modern slavery Supplier Assessment Questionnaire

Responsible Procurement

• Supplier Sustainability Policy and Code of Conduct requiring suppliers to respect basic employee rights, institute strong health and safety and environmental protection standards, and not use conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes aimed at reducing carbon emissions; increased capital and operational costs; technological change and reputational risks

Opportunities

• Transition to a low carbon economy providing opportunities due to products being key inputs to green technologies

Reporting Standards

Frameworks Used: GRI Standards: Core option, plus the Mining & Metals Sector Supplement, UN Global Compact, World Economic Forum’s 21 core ESG metrics and disclosures, TCFD

Certifications: ISO 9001, 14001, 45001

Third-party Assurance: Annual audits of environmental management practices, regulatory monitoring, NGER, and tailings dam audits; annual ISO accreditation audits and bi-annual EcoVadis sustainability assessments; no additional external assurance sought

Awards & Recognition

• Gold Medal EcoVadis Sustainability Rating

Environmental Metrics

ESG Focus Areas

• Diversity
• Environmental Management
• Community Engagement
• Risk Management
• Governance

Environmental Achievements

• Implemented environmental management programs at each site, including waste gas treatment, wastewater treatment, and solid residue management, ensuring compliance with environmental standards.

Social Achievements

• Increased female employees to 23% at the end of FY22 (from 19% in FY21).
• Focussed on encouraging a wide range of ethnic backgrounds among its employees.
• Engaged in community programs to build relationships with communities where it operates.

Governance Achievements

• Established a Board Charter outlining roles and responsibilities.
• Implemented a Code of Conduct, Whistleblower Policy, and Anti-Bribery and Corruption Policy.
• Established an Audit, Risk & ESG Committee.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ASX Corporate Governance Council’s Principles and Recommendations (4th edition)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Diversity
• Environment
• Risk Management
• Community Engagement
• Sustainability

Environmental Achievements

• Implemented environmental management programs at each site, including waste gas treatment, wastewater treatment, and solid residue management, ensuring compliance with environmental standards.

Social Achievements

• Increased female employees to 25% at the end of FY23 (from 23% at the end of FY22).
• Focussed on promoting the development of women within its business and encouraging a wide range of ethnic backgrounds among its employees.
• Engages in community programs that build relationships with communities where it operates.

Governance Achievements

• Established a Board Charter outlining roles and responsibilities of the board and management.
• Implemented a robust director appointment process including background checks.
• Established a Nomination, Remuneration and Community Committee and an Audit, Risk & ESG Committee, both with a majority of independent directors.
• Developed and implemented a Code of Conduct, Whistleblower Policy, and Anti-Bribery Policy.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ASX Corporate Governance Council’s Principles and Recommendations (4th edition)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed