Climate Change Data

Environmental Metrics

Social Achievements

• Maintains an excellent relationship with the communities throughout the Curaçá Valley, having held regular meetings and consultation sessions with local stakeholders regularly over the last 40 years. Undertakes several key initiatives focused on sustainable community development.

Climate Goals & Targets

Environmental Challenges

• Aging infrastructure at MCSA could lead to increased costs or reduced production.
• Social and environmental activism can negatively impact exploration, development and mining activities.
• Compliance with environmental regulations can be costly.
• The Boa Esperança Property is located in an underdeveloped rural area.
• Changes in climate conditions may affect the Company’s operations.
• The Company’s Brazilian operations are subject to political and other risks associated with operating in a foreign jurisdiction.
• The Company may be negatively impacted by changes to mining laws and regulations.
• Corruption and fraud in Brazil relating to ownership of real property may adversely affect the Company’s business.

Mitigation Strategies

• Regularly maintained MCSA’s aging infrastructure.
• Maintains an excellent relationship with communities and undertakes sustainable community development initiatives.
• Complies with environmental regulations.
• Ongoing discussions with the Club Deal Banks and Other Institutional Lenders, which may lead to future restructuring of its existing debt owing to such parties and the reduction thereof.
• Utilizes local experts (legal, accounting, tax and directors), maintains local bank accounts, exercises controls over the use of cash, performs regular reviews of the consolidated books and records at the Company’s head office and frequent personal inspection and visits to the offices and project locations of the foreign subsidiaries by the Company’s key management on a regular basis.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Geological, hydrological and climatic events could suspend mining operations or increase costs.

Transition Risks

• Changes in climate conditions may affect the Company’s operations.

Reporting Standards

Frameworks Used: NI 43-101

Environmental Metrics

ESG Focus Areas

• Energy Management & GHG Emissions
• Water Management
• Waste & Hazardous Materials Management
• Biodiversity
• Workforce Health & Safety
• Community Relations
• Women in Leadership
• Business Ethics & Transparency

Environmental Achievements

• Achieved an 88% freshwater recycle rate at the MCSA Mining Complex and 90% at the NX Gold Mine.
• Implemented tailings co-disposal method, eliminating the need for conventional tailings storage at MCSA.
• Actively rehabilitating the historic tailings dam and revegetating several historically mined areas at MCSA.

Social Achievements

• Developed and licensed two goat milk cooperatives, empowering local entrepreneurs.
• Trained and developed the next generation of miners through a young apprentice program.
• Provided financial and volunteer support to local programs targeting at-risk youth.
• Achieved a lost time injury frequency rate (LTIFR) of 0.99.

Governance Achievements

• Implemented an Anti-Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Maintaining zero lost-time accidents.
• Managing tailings facilities.
• COVID-19 pandemic response.

Mitigation Strategies

• Implemented health and safety best practices, active monitoring, and new management programs.
• Routine inspections of tailings facilities by internal and third-party teams and regulatory agencies.
• Created a COVID-19 committee, eliminated non-essential travel, promoted hygiene and social distancing, increased cleaning, required self-isolation for symptomatic individuals, screened visitors, ordered testing kits, encouraged work from home, and implemented social distancing practices.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Energy & Greenhouse Gas Emissions
• Waste & Tailings Management
• Biodiversity & Mine Closure
• Occupational Health & Safety
• Community Relations & Investments
• Business Ethics, Human Rights & Diversity

Environmental Achievements

• Zero reportable environmental incidents at operations in 2020
• 87% of processing water recycled across all operations in 2020
• More than 7,000,000 m3 of water provided to local communities surrounding the MCSA Mining Complex

Social Achievements

• Zero fatalities
• MCSA Mining Complex celebrated 1 year with zero Lost Time Injuries (LTIs) in September 2020
• Donated ~R$1.1 million of COVID-19 personal protective equipment to local communities
• Invested approximately R$6 million in local socio-economic programs

Governance Achievements

• Formed Climate Change Committee focused on enhancing climate strategy
• Completed and integrated new projects into operations and updated life-of-mine plan at the MCSA Mining Complex that are expected to reduce GHG emissions in the future

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic presented significant challenges globally and in Brazil
• Supply chain disruptions due to the pandemic

Mitigation Strategies

• Implemented extraordinary measures to mitigate the impact of COVID-19 on workforce and operations (restricting non-essential travel, engaging with suppliers, stockpiling consumables, reducing physical interaction, establishing COVID-19 committees, purchasing and donating testing kits and PPE, implementing wellness education and protocols)
• Active operational and financial contingency planning to manage the potential impact of the pandemic

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in rainfall and temperature patterns
• Potential impacts on water availability

Opportunities

• Production of copper, a critical metal for building a de-carbonized world

Reporting Standards

Frameworks Used: GRI, SASB

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity
• Governance
• Health & Safety
• Community Relations
• Environmental Stewardship
• Human Rights
• Responsible Mining

Environmental Achievements

• Achieved zero reportable environmental incidents at our operations
• Maintained a process water recycling rate of greater than 80%
• Advanced reclamation activities in historical mining areas
• Approximately 85% of electricity for the Caraíba copper and Xavantina gold sites comes from renewable sources

Social Achievements

• Expanded the definition of gender diversity in our Diversity Policy to include gender identity and gender expression
• Caraíba Operations created an opportunity bank to help hire women in various roles
• Published a Supplier Code of Conduct
• Amended our Global Human Rights Policy to state that it applies to suppliers, vendors, security providers and other business partners.
• Further developed our Entrepreneurial Management Program to support micro-businesses
• Improved access to health care in the communities near our operations
• Achieved a 90%+ two-dose COVID-19 vaccination rate among our workforce

Governance Achievements

• Became a signatory of the United Nations Global Compact
• Became a public supporter of the Task Force on Climate-related Financial Disclosures (“TCFD”)
• Progressed on the recommendations of the TCFD, including completion of a physical risk scenario analysis of our operations
• Safety and environmental targets made up 20% of the performance-based compensation in our Annual Performance Incentive (“API”) plan

Climate Goals & Targets

Environmental Challenges

• Ongoing challenges with the global COVID-19 pandemic
• Two isolated incidents resulted in the deaths of two colleagues in January 2022
• Increased water consumption at the Caraíba Operations related to higher concentrate production

Mitigation Strategies

• Collaboration with the regional government to implement a vaccination hub at the Caraíba Operations
• Contributed over 19,000 food baskets to members of our community during COVID-19
• Implemented collision avoidance technologies and are fully committed to implementing available technology and infrastructure enhancements to improve the safety and well-being of our workforce
• Implementing new technology-based systems and strategies to prevent future incidents

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Published a Supplier Code of Conduct
• Expanded Health and Safety Policy, CSR Policy and Environmental Policy to apply to suppliers
• Amended Global Human Rights Policy to apply to suppliers, vendors, security providers and other business partners

Climate-Related Risks & Opportunities

Physical Risks

• Climate extremes

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Universal Standards (Core option), SASB Metals and Mining Standard, UN Global Compact

Certifications: ISO 45001 (Xavantina Operations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 6
• Goal 8
• Goal 11
• Goal 12
• Goal 13

See page 81 for details on how initiatives contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Climate Change
• Community Relations
• Diversity, Equity, and Inclusion
• Responsible Mining

Environmental Achievements

• Achieved ISO 14001 Environmental Management certification at Caraíba and Xavantina Operations.
• Achieved an 89% process water recycling rate.
• No water withdrawal from water-stressed areas.
• Provided approximately 8.72 million cubic metres of water to communities near Caraíba Operations.
• Revegetated 13 hectares with native plant species.

Social Achievements

• Achieved ISO 45001 Occupational Health and Safety Management certification at Caraíba Operations.
• Completed over three million hours of construction work at the Tucumã Project with zero lost-time injuries.
• Implemented mental health support programs.
• Implemented work-readiness software at Xavantina Operations (Caraíba implementation on track for 2024).
• Continued to improve access to healthcare in communities near Caraíba Operations (completed renovation and expansion of Curaçá Valley Polyclinic).

Governance Achievements

• Achieved ISO 9001 Quality Management Systems certification at Caraíba and Xavantina Operations.
• Expanded use of data-mining technologies to detect and mitigate modern slavery risks.
• Decreased unresolved human resource complaints by 72%.

Climate Goals & Targets

Environmental Challenges

• Two fatalities at Caraíba Operations.
• Did not achieve LTIFR below the four-year average of 0.56 (LTIFR was 1.00).

Mitigation Strategies

• Paused operations, supported families and communities, and investigated the fatalities, leading to changes including new safety equipment, improved signage and lighting, a revised safety inspection protocol, and an alarm system.
• Implementing the Global Minerals Industry Risk Management (GMIRM) program.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Emphasis on local procurement
• Supplier Code of Conduct requiring adherence to Ero Copper’s Anti-Corruption Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures
• Sustained precipitation
• Extreme precipitation
• Droughts

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Metals and Mining Standard, TCFD (working towards alignment)

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 6 (Clean Water and Sanitation)
• SDG 8 (Decent Work and Economic Growth)

Initiatives such as the Curaçá Valley Polyclinic expansion, water provision to communities, and local employment and procurement contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Incredible Place to Work Award
• Awards from Waste Recycling Cooperative and Association of Small Rural Farmers for Tucumã Project
• Awards for Capribéee cooperative