Climate Change Data

Environmental Metrics

ESG Focus Areas

• Using technology and information to enhance operational performance and to minimise the impact on the environment
• Ongoing focus on employee safety, development, values and wellbeing
• Improving the quality of life of communities surrounding our operations

Environmental Achievements

• TSFs vegetated (66 ha in 2020)
• Land lodged with the National Nuclear Regulator (NNR) for approval for redevelopment (27 ha in 2020)
• Reduced potable water consumption (659 Ml in 2020 from 732 Ml in 2019)
• Increased water recycled in the process (20,838 Ml in 2020)
• Reduced Scope 1 CO2 emissions (6,923 tonnes in 2020 from 8,488 tonnes in 2019)
• Reduced total carbon emissions (372,025 tonnes CO2e in 2020 from 416,324 tonnes CO2e in 2019)

Social Achievements

• Total socio-economic development spend (R32.5 million in 2020)
• Total discretionary spend with BBBEE companies (68.8% in 2020)
• Empowered around 3,331 participants with skills and infrastructure to produce healthy food through the Broad-based Livelihoods Programme
• Provided maths, science and accountancy programmes to 686 learners

Governance Achievements

• Established an Independent Tailings Review Board in 2018
• Group-wide policy on the management of TSFs is under review
• Implemented an Internal Tailings Performance Management System

Climate Goals & Targets

Environmental Challenges

• Eskom power supply
• Availability of water
• Social unrest
• Extreme weather
• Social license to operate
• COVID-19 impacts

Mitigation Strategies

• Refer to pages 34-39 and 32-33 of the Annual Integrated Report for details on risk mitigation

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Reporting Standards

Frameworks Used: International Integrated Reporting Council Reporting Framework, GRI standards, King IV Report on Corporate Governance for South Africa, 2016, JSE Limited Listings Requirements, Companies Act of South Africa Limited (Act No.71 of 2008)

Environmental Metrics

ESG Focus Areas

• Transformation and economic empowerment
• Equality
• Environmental and sustainability standards
• UN Global Compact Principles
• OECD recommendations on corruption
• Employment Equity Act
• Broad Based Black Economic Empowerment Act
• Environment, health, and public safety
• Labour and employment

Environmental Achievements

• Reduced decommissioning liabilities through environmental rehabilitation payments

Social Achievements

• Paid full salaries and benefits to all employees during temporary COVID-19 suspensions
• Contained the spread of COVID-19 within its operations

Climate Goals & Targets

Environmental Challenges

• Temporary operational halt due to COVID-19 lockdown
• Ekurhuleni Metropolitan Municipality Electricity Tariff Dispute

Mitigation Strategies

• Developed a detailed process for recommencement of limited operations to sustain infrastructure and safeguard employees
• Consulted with the Department of Mineral Resources and organised labour
• Made payments for electricity consumption under protest while pursuing legal action

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS), Companies Act of South Africa, United Nations Global Compact Principles, Organisation for Economic Co-operation and Development recommendations

Third-party Assurance: KPMG Inc

Environmental Metrics

ESG Focus Areas

• Using technology and information to enhance operational performance and to minimise the impact on the environment
• Create a values driven culture of employee safety, empowerment, diversity and inclusivity
• Improving the quality of life of communities surrounding our operations

Environmental Achievements

• Reprocessing mine dumps and redepositing waste onto tailings storage facilities, cleaning environmentally sensitive areas and freeing up land for redevelopment
• 66% of process water is recirculated at Ergo
• All water harvested from Driefontein 4 TSF used at FWGR (approximately 60% of process water requirements)
• 105.0 ha of TSFs vegetated in 2021
• 88 ha of rehabilitated land lodged with the National Nuclear Regulator (NNR) for clearance for redevelopment in 2021
• Reduced total carbon emissions from 416,324 tonnes CO2e in 2019 to 412,145 tonnes CO2e in 2021

Social Achievements

• Spent R36.8m on various community projects and youth education programmes
• Broad-based Livelihoods Programme equipped around 4,500 participants with skills and infrastructure to produce healthy food, generate an income, grow a business and trade in fresh produce
• Provided extra classes in mathematics, science and accountancy to high school pupils at seven schools

Governance Achievements

• Group-wide review of TSF management policy to align with best practice
• Internal Tailings Performance Management System (TPMS) for dedicated data collection, storage and processing
• Quarterly drone and satellite surveillance of TSFs
• Independent Tailings Review Panel to replace Review Board

Climate Goals & Targets

Environmental Challenges

• Eskom power failure and rising electricity prices
• Social unrest
• Increased crime
• Social licence to operate
• Extreme weather
• Water cost and availability

Mitigation Strategies

• Refer to pages 45-52 and 40-44 of the Annual Integrated Report for details on risk mitigation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 50.2% discretionary spend with BBBEE companies in 2021

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Eskom power failure and rising electricity prices

Opportunities

• Self-generation of power through solar PV plant and battery storage facility

Reporting Standards

Frameworks Used: International Integrated Reporting Council Reporting Framework, GRI standards, King IV Report on Corporate Governance for South Africa, 2016, JSE Limited Listings Requirements, Companies Act of South Africa Limited (Act No.71 of 2008), UN SDGs, World Gold Council Responsible Gold Mining Principles (WGC RGMPs)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7, 8, 9, 10, 11, 12, 13, 17

Aligned to core purpose and overall strategy

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Reversing the environmental legacy of early mining
• Limiting and reducing impact on natural resources
• Improving the quality of life of affected communities
• Tailings Storage Facility (TSF) safety
• Employee safety, empowerment, diversity and inclusivity
• Sustainable land use

Environmental Achievements

• 58 ha of TSFs vegetated (2021: 115 ha)
• 1 ha of land lodged with the National Nuclear Regulator (NNR) for approval for redevelopment (2021: 16 ha)
• Reduced total carbon emissions (tonnes CO2e): 414,835 (2021: 412,145; 2020: 372,025)
• Reduced CO2e per gold kilogram produced: 72.5 tonnes CO2e/gold kg (2021: 72.0; 2020: 68.6)
• Approximately 54% of process water requirements met through recirculation
• First phase of a 40MW solar farm project under development, aiming to reduce carbon footprint by approximately 154,000 tonnes of CO2e per annum

Social Achievements

• R38.3 million spent on various community projects and youth education programmes
• Broad-based Livelihoods (BBL) Programme equipped around 8,000 participants with skills and infrastructure to produce healthy food and generate income
• 783 impoverished households able to earn approximately R10,000 per year from tunnel production
• 518 community members on learnerships (2021: 317; 2020: 310)
• 398 learners benefited from maths, science and accountancy programmes (2021: 662; 2020: 686)

Governance Achievements

• Group-wide review of TSF management policy to align with best practice
• Internal Tailings Performance Management System implemented
• Quarterly drone and satellite surveillance of TSFs
• External Independent Tailings Review Panel established
• Monitoring of UN Global Compact principles, OECD recommendations, Employment Equity Act, and Broad-Based Black Economic Empowerment Act

Climate Goals & Targets

Environmental Challenges

• Worsening security conditions
• Eskom supply failure and rising electricity prices
• Social unrest
• Social license to operate
• Extreme weather
• Water cost and availability

Mitigation Strategies

• Refer to the Annual Integrated Report 2022, pages 62 and 48-54 for details on risk mitigation strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Total discretionary spend with B-BBEE companies (61% in 2022)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Eskom supply failure and rising electricity prices

Opportunities

• Self-generation of electricity through solar power

Reporting Standards

Frameworks Used: Integrated Reporting Framework, Global Reporting Initiative (GRI) standards, King IV Report on Corporate Governance for South Africa, 2016, JSE Limited Listings Requirements, Companies Act of South Africa (Act No. 71 of 2008)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligned with eight UN SDGs; details not specified in report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Transformation and economic empowerment
• Equality
• Environmental and sustainability standards
• UN Global Compact Principles
• OECD recommendations on corruption
• Global Industry Standards on Tailings Management
• UN SDGs
• Employment Equity Act
• Broad Based Black Economic Empowerment Act

Environmental Achievements

• 60MW solar farm with 160MWh battery energy storage facility approved (Phase II)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Deterioration of the national power utility and failing electricity grid
• Above inflationary increases in costs relating to reagents, diesel, electricity, steel related products and security

Mitigation Strategies

• Development of a 60MW solar farm with 160MWh battery energy storage facility

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: International Financial Reporting Standards (IFRS)

Certifications: Null

Third-party Assurance: BDO South Africa Inc

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental regeneration
• Climate security
• Social commitment
• Governance

Environmental Achievements

• Commissioned and connected a solar photovoltaic (PV) facility to the national grid, generating 13,113,650 kWh of energy in FY2024 (10% of Ergo's consumption). By FY2025, it will contribute approximately half of Ergo’s energy consumption.
• Reduced potable water usage by 83% over 10 years.
• Rehabilitated 477 hectares of land through tailings reclamation.

Social Achievements

• SED spend of R357 million over 10 years.
• Focus on poverty alleviation, youth education, and improved quality of life in host communities.
• Increased diversity in mining workforce; women in mining increased from 60% to 76% between 2016 and 2024.

Governance Achievements

• Compliance with JSE and NYSE standards.
• Alignment with World Gold Council’s RGMPs and GISTM.
• Implementation of Internal Tailings Performance Management System (TPMS).

Climate Goals & Targets

Environmental Challenges

• Regulatory (permitting) uncertainty and delays
• Gold price and currency fluctuation
• Potential for social unrest
• Tailings storage capacity
• Managing mega TSFs
• Potable water scarcity and access and cost of secondary water sources

Mitigation Strategies

• Significant investment in water technology to reduce potable water usage and maintaining closed water circuits.
• Construction of a new mega FWGR RTSF to world-class standards.
• Expansion of Ergo’s Brakpan/Withok TSF.
• Decarbonising operations through PV facility and potential wheeling options.
• Internal funding of capex, largely through cashflows.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Potable water scarcity and access and cost of secondary water sources

Opportunities

• Transition to renewable energy

Reporting Standards

Frameworks Used: World Gold Council’s Responsible Gold Mining Principles (RGMPs), Global Industry Standards on Tailings Management (GISTM)