Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• People
• Community
• Environment

Environmental Achievements

• Improved waste management practices at all major Australian sites (e.g., double-skin containers for lube storage, biodegradable cleaner use, redesigned wash pad workshop grid)
• Water captured, cleaned, and reused in all Australian wash bay facilities; Canadian wash bays use rainwater

Social Achievements

• TRIFR improved by 39% in FY13
• Established the Global HSE Forum
• Increased adoption of behaviour-based safety approaches
• Implemented new training management system
• Delivered leadership development program in Australia and Canada
• Implemented initiatives from the Diversity Action Plan
• Established two national partnerships in Australia (Clontarf Foundation and Lifeline Australia)
• Improved employee satisfaction (32% improvement since 2010)

Governance Achievements

• Development of a new monthly sustainability reporting tool for the Emeco Board

Climate Goals & Targets

Environmental Challenges

• Decline in the number of Personal Performance Plans (PPPs) conducted across Australian and Canadian businesses
• Downturn in resources markets leading to a review and prioritisation of training activity
• Need to improve the consistency and efficiency of environmental data collection and reporting processes
• Lack of systems to reliably capture waste and water usage data globally

Mitigation Strategies

• Reviewing reasons for decline in PPPs
• Limiting external training to focus on job-critical HSE, licence to operate, and essential technical/professional training
• Implementing a new monthly sustainability reporting tool to improve data collection and sharing
• Setting a target to improve waste and water reporting approaches in FY14

Supply Chain Management

Supplier Audits: Audit of contractor compliance was carried out

Responsible Procurement

• Strategies and processes were developed to improve risk management in the areas of HSE, human resources, legal, commercial and procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3 Guidelines

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

• Energy and greenhouse gas emissions
• Energy Efficiency Initiatives
• Incidents and Spills
• Labor Practices and Decent Work
• Employment
• Training and education
• Occupational health and safety
• Human Rights
• Society
• Community
• Product Responsibility
• Customer satisfaction

Social Achievements

• Emeco Nationally Recognized Training program

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Safety
• Waste Management
• Workforce Diversity

Environmental Achievements

• No significant environmental incidents reported.

Social Achievements

• Lost Time Injury Frequency Rate (LTIFR) reduced from 1.1 to 0.0.
• Total Recordable Injury Frequency Rate (TRIFR) decreased from 5.6 to 2.2.
• No fatalities recorded.
• Gender pay gap for base salary less than WGEA industry comparison group (8.7% vs 19.8%).

Governance Achievements

• Workplace Gender Equality Agency report submitted.

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions
• Waste management

Mitigation Strategies

• Continued development of robust systems and processes to support operational needs and ensure safe working conditions.
• Implementation of resources to support Core Risk Control Protocols (CRCPs).
• Environmental Management Policy outlines commitment to legislative compliance and proactive environmental initiatives to minimize waste.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Employee Development
• Diversity & Inclusion
• Environmental Management
• Risk Management

Environmental Achievements

• No significant environmental incidents reported.

Social Achievements

• Lost Time Injury Frequency Rate (LTIFR) reduced from 0.6 to 0.0.
• Increased number of apprentices by 40%.
• Permanent full-time workforce grew from 452 to 510.
• Female representation in the recruitment selection process increased by 12% to 76%.
• 49% of new hires into non-trade roles were women.
• 100% of those who took maternity leave returned to work within 12 months.
• Overall female representation increased from 11.1% to 15.2%.

Governance Achievements

• Continued to manage material exposures to economic, environmental and social sustainability risks in accordance with its risk management framework.

Climate Goals & Targets

Environmental Challenges

• Total Recordable Injury Frequency Rate (TRIFR) increased from 1.2 to 4.6, although 85% of recordable injuries were medically treated injuries with immediate return to work.
• Managing environmental hazards (pollutants, hazardous chemicals, noise, respiratory irritants).

Mitigation Strategies

• Implementation of training, risk assessments and increased supervision of the workforce.
• Continued development of core risk control protocols and safe work procedures.
• Strengthened partnership with vendors on safety.
• Bottom-up review of Safe Work Method Statements.
• Using dust suppression products, hydrocarbon management, and proactive spill prevention.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ongoing relationship management with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

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

• Safety
• Environmental Management
• Modern Slavery
• Workforce Diversity
• Employee Development
• COVID-19 Response

Environmental Achievements

• No significant environmental incidents reported.

Social Achievements

• Lost Time Injury Frequency Rate (LTIFR) remained at 0.0
• Total Recordable Injury Frequency Rate (TRIFR) decreased from 4.6 to 2.9
• Number of apprentices increased by 47%
• Female representation in the recruitment process was successfully achieved 65% of the time.
• 35.5% of new hires into non-trade roles were women.
• 95.1% of new employees participated in diversity training.
• 100% of those who took maternity leave returned to work within 12 months.

Governance Achievements

• Board approved human rights policy implemented.
• Supplier Code of Conduct addressing modern slavery concerns implemented.
• Updates to Supplier and purchasing terms imposing obligations on suppliers regarding compliance with the modern slavery regime.
• Internal training for the supply team on the modern slavery regime delivered.

Climate Goals & Targets

Environmental Challenges

• Material economic risks (outlined in the Annual Report)
• Environmental hazards (pollutants, hazardous chemicals, noise, respiratory irritants)
• Safety threats to the workforce and community
• COVID-19 pandemic impact on operations and workforce

Mitigation Strategies

• Risk management framework for economic, environmental, social, and COVID-19 risks.
• Environmental risk inspections and compliance with environmental protection legislation.
• Core Risk Control Protocols (CRCPs) and Lifesaving Rules to manage safety risks.
• Swift and thorough COVID-19 response with policies concerning travel restrictions, social distancing, isolation, hygiene, and response plans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct, updates to supplier and purchasing terms

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

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

• Safety
• Modern Slavery
• Environmental Management
• Workforce Diversity
• Decarbonisation

Environmental Achievements

• No significant environmental incidents reported in FY21

Social Achievements

• Lost Time Injury Frequency Rate (LTIFR) remained at 0.0
• Total Recordable Injury Frequency Rate (TRIFR) decreased from 2.9 to 2.1
• No fatalities recorded across Emeco operations for FY21
• Increased number of apprentices from 50 to 63
• Launched Project Align to improve employee engagement and retention

Governance Achievements

• Established procedures to ensure suppliers are aware of their obligations under Emeco’s Supplier Code of Conduct
• Instituted more stringent supplier screening processes

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on operations and recruitment
• Meeting ambitious target of increasing female employees by 10% in FY21 was not achieved

Mitigation Strategies

• Swift and thorough COVID-19 response with policies concerning travel restrictions, social distancing, isolation and hygiene
• Continued commitment to supporting and increasing diversity through initiatives like diversity training and flexible work arrangements

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Modern Slavery
• COVID-19 Response
• Employee Development
• Diversity and Inclusion
• Environmental Management
• Economic Risk Management
• Supply Chain

Environmental Achievements

• No significant environmental incidents reported.

Social Achievements

• Zero Lost Time Injury Frequency Rate (LTIFR) and a Total Recordable Injury Frequency Rate (TRIFR) of 1.9.
• Increased number of apprentices by 37.5% to 88.
• Increased workforce by 23% from 1,128 to 1,390.
• Increased proportion of female employees in the workforce by 10%.

Governance Achievements

• Reviewed key policy documents including Emeco’s Human Rights Policy and Supplier Code of Conduct.
• Refined onboarding processes and introduced amendments to the RAPID Questionnaire.
• Introduced new procedures for labour hire suppliers.
• Rolled out modern slavery training for key individuals.

Climate Goals & Targets

Environmental Challenges

• Challenging labour market
• Modern slavery risks in supply chain (though assessed as relatively low)
• COVID-19 impacts on workforce and operations

Mitigation Strategies

• Investment in employee skills development
• Multi-pronged strategy to mitigate modern slavery risks (including policy review, onboarding process refinement, new procedures for labour hire suppliers, and training)
• Swift and thorough COVID-19 response with policies concerning travel restrictions, social distancing, isolation and hygiene, response plans, and support services for employees.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• RAPID Questionnaire

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Modern Slavery
• Diversity and Inclusion
• Community Engagement
• Environmental Management

Environmental Achievements

• No significant environmental incidents as defined by Emeco’s Environmental Management Plan in FY23.

Social Achievements

• Implementation of area specific inductions for mining industry hazards and controls.
• Implementation of new equipment specific mobile plant operator training manuals.
• Review and update of Emeco’s Risk Management Framework to reflect changes in legislation.
• Increased percentage of female employees in the workforce.
• 25 apprentices graduated, 83 currently in training.
• Project Align's Community Grant program awarded 23 grants.
• Renewed commitment as a Partner to Lifeline WA.

Governance Achievements

• Emeco’s inaugural ESG Strategy was endorsed by the Board of Directors in February 2023.
• Formation of an ESG Committee to oversee ESG initiatives.
• Engagement of a Risk and Compliance Superintendent to enhance Risk Management processes.
• Development and implementation of a new Hazard Identification and Risk Management Training package.

Climate Goals & Targets

Environmental Challenges

• Increase in Total Recordable Injury Frequency Rate (TRIFR) from 1.9 to 2.9.
• One Lost Time Injury (LTI) recorded in May 2023.
• Workforce reduction due to operational site closures.

Mitigation Strategies

• Strengthened focus on critical control management and safe choices.
• Increased leadership field interactions and inspections.
• Close management of support team structures to ensure lean and fit-for-purpose workforce.
• Investment in training and development to improve capability and maintain employer of choice status.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Supply Chain
• Modern Slavery
• Diversity and Inclusion
• Community Engagement

Environmental Achievements

• Reduced Scope 1 emissions (diesel fuel) by 7% from FY23 to FY24 (3178 tCO2e to 2978 tCO2e)
• Reduced Scope 2 emissions (electricity) by 4% from FY23 to FY24 (2750 tCO2e to 2474 tCO2e)
• Developed a Climate Change Position Statement
• Commenced measuring carbon footprint (GHG emissions)

Social Achievements

• Reduced Total Recordable Injury Frequency Rate (TRIFR) from 3.21 in FY23 to 2.8 in FY24
• Achieved a Lost Time Injury Frequency Rate (LTIFR) of 0.0 in FY24
• No fatalities recorded in FY24
• Developed inaugural Reconciliation Action Plan
• Community grants totalled approximately $120,000 in FY24 (up from $62,000 in FY23)
• Developed a “People and Workplace Culture Discussion” module on Myosh platform
• 13 leadership development visits with 34 sessions conducted

Governance Achievements

• Appointment of a female non-executive director to the Board
• Reshaped supply chain and procurement function to a more centralised structure
• Working to reduce reliance on reactive purchasing and focus on a smaller, more proactively managed pool of suppliers
• Improved governance and efficiency of procurement-to-pay process
• Continuously improving human rights and modern slavery governance framework

Climate Goals & Targets

Environmental Challenges

• Estimating Scope 3 emissions (indirect emissions from diesel fuel usage in heavy mining equipment and iron/steel production in machinery parts)
• Managing economic and business risks (outlined in the Business Risks statement within the annual report)
• Maintaining workforce stability and quality in a changing market with increasing demand for skilled labor
• Reducing dependency on subcontracted labor

Mitigation Strategies

• Developing methodologies with customers and suppliers to refine Scope 3 emissions estimates
• Investing in training and development of employees
• Focusing on retention and growth of permanent, skilled workforce
• Working to define and strengthen relationships with preferred suppliers
• Consolidating supplier base and putting a greater portion of spend under negotiated supply contracts
• Assessing feasibility of introducing solar generation to reduce reliance on network electricity

Supply Chain Management

Responsible Procurement

• Reshaping supply chain and procurement function to a more centralised structure
• Standardising practices across all business units
• Clearly categorising goods and services purchased
• Rationalising supplier base
• Increasing maturity in managing key supply arrangements
• Identifying major suppliers and working to define and strengthen relationships with preferred suppliers
• Reducing reliance on reactive purchasing
• Focusing on purchasing from a smaller, more proactively managed pool of suppliers
• Identifying and including First Nations owned or operated suppliers

Climate-Related Risks & Opportunities

Opportunities

• Reducing reliance on network electricity through solar generation
• Improving energy efficiency and waste reduction

Reporting Standards

Frameworks Used: Possibly Australian Sustainability Reporting Standards (ASRS) in the future

Sustainable Products & Innovation

• Emeco Operating System (EOS) OT Platform to manage fleet, improve performance and safety, reduce fuel burn and emissions