Climate Change Data

Champion Iron Limited

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:65,769 tCO2e/year
Scope 1 Emissions:64,769 tCO2e/year
Scope 2 Emissions:440 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:59%
Total Energy Consumption:2,060 TJ/year
Water Consumption:Not disclosed
Waste Generated:3,733 tons/year
Carbon Intensity:8.6 kg CO2e/tonne of iron concentrate produced (2019)

ESG Focus Areas

  • Health, safety and well-being
  • Business ethics
  • Communities, Indigenous groups and human rights
  • Human capital and diversity
  • Energy consumption and climate change
  • Water stewardship
  • Management of mine tailings
  • Wastes and air emissions
  • Biodiversity and ecosystem conservation
  • Product stewardship

Environmental Achievements

  • Reduced GHG emissions by 36% in 2019 compared to 2014 through technological modifications (e.g., replacing oil-fired boilers with hydroelectric power, installing an ore conveyor and tailings pumping system)
  • Recycled over 95% of wastewater collected from facilities in 2019
  • Revegetated 22 hectares in 2019

Social Achievements

  • Contributed just over C$5 million in community investments in 2019
  • Employed over 70 Indigenous workers directly or indirectly for the Bloom Lake Mine in 2019
  • Implemented a managers coaching program in 2019
  • Implemented a diversity and inclusion program in 2019

Governance Achievements

  • 100% compliance with the monitoring program for mine tailings retaining structures in 2019
  • Launched an online training and certification course on the QIO Employee Code of Conduct in 2019

Climate Goals & Targets

Long-term Goals:
  • Maintain efforts to continually strengthen our culture of health, safety and well-being
  • Collaborate on far-reaching initiatives promoting the transition to a low-carbon global economy
  • Develop collaborations and partnerships to mitigate water risks
  • Encourage the creation of a local hub for sustainable waste management
  • Seek to contribute to a better scientific understanding of biodiversity protection
  • Develop collaborations and partnerships for product development to meet future needs
Medium-term Goals:
  • Invest in initiatives focused on shared responsibility for health and safety
  • Revisit training courses and programs for health and safety
  • Seize opportunities to advance innovation and form new partnerships for energy efficiency and GHG reduction
  • Assess water risks and impact of business on water users
  • Deploy necessary leadership to establish partnerships for sustainable waste management
  • Contribute to the conservation of biodiversity
  • Evaluate other production approaches that can add value to the product
  • Evaluate potential impacts of legislative changes on product demand
Short-term Goals:
  • Continue to lay the foundations of our OSH management system
  • Implement the means to develop individuals’ knowledge and skills in terms of health and safety
  • Improve energy efficiency
  • Set up a complete system for monitoring energy consumption and GHG emissions
  • Assess and understand the current state of the host watershed
  • Perfect existing water management practices
  • Refine detailed management plans and tools for tailings management
  • Implement means of communication and performance review for wastes and atmospheric emissions
  • Implement a management system for important aspects of biodiversity
  • Foster innovation to continuously improve process control tools and practices

Environmental Challenges

  • Maintaining Indigenous employment and managing seasonal variations in activities
  • Hiring challenges in the mining sector due to labor shortage
  • Potential risks associated with water, including accidental discharges from extreme floods
  • Potential impacts of climate change on operations and assets
  • Managing wastes and air emissions
  • Potential impacts of activities on biodiversity
Mitigation Strategies
  • Adapted selection approach to hiring to highlight Indigenous strengths and potential
  • Participated in mining job fairs and seminars; established partnerships with recruitment firms
  • Improved infrastructure for collecting precipitation water; refined water balance model
  • Carried out a multi-risk resilience analysis; increased intensity-duration-frequency data of meteorological events in dike design
  • Implemented a recycling and reuse program; developed an environmental management system
  • Implemented a sequential approach (Understand, Avoid, Reduce, Compensate) to protect biodiversity

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Favoring local suppliers, especially Indigenous businesses; providing support to small and medium-sized businesses

Climate-Related Risks & Opportunities

Physical Risks
  • Increased frequency of extreme climatic events (forest fires, heat waves, extreme precipitation)
Transition Risks
  • Regulatory changes; potential additional costs associated with emissions
Opportunities
  • Government incentives for energy-efficiency initiatives and renewable energy sources; opportunities with customers seeking to reduce carbon emissions

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14064-3:2006 (GHG emissions data)

Third-party Assurance: Enviro-Access Inc.

UN Sustainable Development Goals

  • Goal 3 (Good Health and Well-being)
  • Goal 4 (Quality Education)
  • Goal 5 (Gender equality)
  • Goal 6 (Clean water and sanitation)
  • Goal 8 (Decent work and economic growth)
  • Goal 10 (Reduced inequalities)
  • Goal 11 (Sustainable cities and communities)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 15 (Life on land)
  • Goal 16 (Peace, justice and strong institutions)
  • Goal 17 (Partnerships for the goals)

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

  • High-quality iron concentrate with low impurities, contributing to reduced carbon emissions in steelmaking

Awards & Recognition

  • Rising Star Award at the S&P Global Platts Global Metals Awards (2019); Quebec Job Creator Award (2019)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:56,087 tCO2e/year
Scope 1 Emissions:56,087 tCO2e/year
Scope 2 Emissions:587 tCO2e/year
Renewable Energy Share:64%
Total Energy Consumption:1942 TJ/year
Water Consumption:19.1 Mm3/year
Waste Generated:4050 tons/year
Carbon Intensity:7.3 kg CO2e/tonne of iron concentrate produced in 2020.

ESG Focus Areas

  • Health, safety and well-being
  • Business ethics
  • Communities, human rights and social acceptance
  • Human capital and diversity
  • Energy consumption and climate change
  • Mine tailings management
  • Water stewardship
  • Biodiversity conservation and the precautionary principle
  • Waste and air emissions

Environmental Achievements

  • Reduced annual operational GHG emissions by 36% per tonne of iron concentrate produced since restarting Bloom Lake Mine in 2018.
  • 86% of total water consumption came from reused and recycled water in 2020.
  • 40% of residual materials produced onsite in 2020 was recycled or reused offsite.

Social Achievements

  • Contributed over CAD $5 million in community investments in 2020.
  • Largest mining employer of Indigenous people in the Labrador Trough, with a peak of over 51 Indigenous workers in 2020.
  • Implemented a COVID-19 screening centre at the Bloom Lake Mine, quickly diagnosing and isolating cases.

Governance Achievements

  • Established an Environmental, Social and Governance (ESG) committee.
  • Adopted a whistleblower policy in 2020.
  • Implemented a human rights policy in 2020.

Climate Goals & Targets

Long-term Goals:
  • Foster innovation to improve water management infrastructure.
  • Contribute to a better scientific understanding to protect biodiversity.
  • Encourage the creation of a local hub for sustainable waste management.
Medium-term Goals:
  • Perfect existing water management practices.
  • Assess water risks and the impact of the business on water users.
  • Develop collaborations and partnerships to mitigate shared water risks.
Short-term Goals:
  • Improve energy efficiency and reduce GHG emissions.
  • Implement a complete system to monitor energy consumption and GHG emissions.
  • Establish goals to reduce GHG emissions over the medium and long terms.

Environmental Challenges

  • COVID-19 pandemic impacting health and safety, costs, worker availability, and regulations.
  • Need to expand waste rock and tailings storage areas due to increased production.
  • Attracting and retaining talent in a competitive labor market.
Mitigation Strategies
  • Implemented numerous COVID-19 prevention measures (detailed in Chapter 5).
  • Conducted extensive studies to determine optimal locations for waste rock and tailings storage, considering environmental and social impacts.
  • Offered housing assistance to attract workers, collaborated with recruiting firms, and added air transport drop-off points.

Supply Chain Management

Responsible Procurement
  • Favoring local and Indigenous suppliers.
  • Conducting regular meetings and symposiums with suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme precipitation events and melting snow impacting water management.
Transition Risks
  • Regulatory changes related to GHG emissions.
Opportunities
  • Developing energy-efficient methods and renewable energy projects.
  • Producing high-purity iron concentrate that reduces GHG emissions in steelmaking.

Reporting Standards

Frameworks Used: GRI Basic Option, Mining Association of Canada (MAC) Towards Sustainable Mining (TSM), International Council on Mining and Metals (ICMM)

UN Sustainable Development Goals

  • Goal 3
  • Goal 5
  • Goal 8
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

Champion's initiatives contribute to these goals through various programs and policies related to health, safety, community relations, environmental protection, and ethical business practices.

Sustainable Products & Innovation

  • High-purity iron concentrate reducing energy consumption in steelmaking.

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:83,918 tonnes of CO2e/year
Scope 1 Emissions:83,387 tonnes of CO2e/year
Scope 2 Emissions:531 tonnes of CO2e/year
Renewable Energy Share:53%
Total Energy Consumption:2,403 TJ/year
Water Consumption:13.5 Mm3/year (returned)
Waste Generated:8,745 tonnes/year (excluding tailings and waste rock)
Carbon Intensity:10.7 kg CO2e/tonne of iron concentrate produced

ESG Focus Areas

  • Employee Health, Safety and Well-being
  • Energy and GHG Management
  • Tailings Management
  • Business Ethics
  • Engagement with First Nations
  • Water Stewardship
  • Economic Prosperity of the Company
  • Engagement with Stakeholders
  • Social Acceptability
  • Waste Management
  • Local Economy
  • Biodiversity Conservation
  • Responsible Consumption and Production
  • Protection of Cultural Heritage
  • Employment Equity and Equal Opportunity
  • Human Resources Management and Engagement
  • Leadership Policies and Directives
  • Training and Skills Development
  • Board Composition
  • Procurement

Environmental Achievements

  • Reduced GHG emissions by 36,000 tonnes of CO2e annually since recommissioning Bloom Lake in 2018
  • Reused or recycled 93% of mining wastewater
  • Site restoration - 17 hectares of revegetated area
  • Developed a new blasting recipe to reduce emissions intensity

Social Achievements

  • Completion of Phase II project creating an additional 400 permanent quality jobs
  • National Truth and Reconciliation Day declared a company holiday
  • Established an ESG Board Committee
  • Community Investment of $5.2 million
  • Sourcing from Regional Suppliers of $393 million
  • Sourcing from Indigenous Suppliers of $47.1 million

Governance Achievements

  • Established an ESG Committee of non-executive directors
  • Aligned activities with the Mining Association of Canada’s (TSM) initiative
  • Working to align with the Task Force on Climate-Related Financial Disclosures (TCFD)

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
  • Collaborate to promote a low-carbon economy
  • Work with communities on integrated emergency management
  • Contribute to better scientific understanding of biodiversity protection
Medium-term Goals:
  • Reduce GHG emissions by 40% by 2030 (2014 baseline)
  • Advance innovation in emission reduction
  • Support Indigenous partners’ socio-economic development
  • Support local initiatives for innovation and development
  • Review post-operation rehabilitation with stakeholders
Short-term Goals:
  • Improve energy efficiency
  • Finalize GHG emission reduction goals
  • Develop and refine talent management processes
  • Engage with Indigenous partners and communities
  • Develop intercultural programs
  • Revise closure plan for Phase II expansion

Environmental Challenges

  • Global pandemic creating a challenging operating environment
  • Increased workforce for Phase II expansion project
  • Potential for increased extreme weather events impacting operations
  • Potential for forest fires damaging infrastructure
  • Potential for dike failure from extreme precipitation events
Mitigation Strategies
  • Implemented rigorous safety rules and protocols
  • Operated on-site COVID-19 testing laboratory
  • Upgraded meteorological equipment and adopted new operating procedures
  • Expanded fire protection team
  • Incorporated climate change scenarios into infrastructure planning

Supply Chain Management

Supplier Audits: Expanded contractor audit program from 5 to 10 contractors

Responsible Procurement
  • Responsible Procurement Policy (adopted February 2021)
  • Prioritization of local and Indigenous suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Forest fires
  • Heat waves
  • Flooding
  • Dike failure
Transition Risks
  • Regulatory changes
  • Market shifts
  • Energy security
Opportunities
  • Extended operating season
  • Energy savings from reduced winter heating
  • Accelerated vegetation restoration

Reporting Standards

Frameworks Used: GRI Standards: Core Option (2016), GRI G4 Mining and Metals Sector Disclosures, SASB Metals & Mining Industry Standard, TCFD reporting framework

Certifications: ISO 14001 (implied), ISO 45001 (implied), ISO 50001 (in progress)

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 7: Affordable and Clean Energy
  • SDG 8: Decent Work and Economic Growth
  • SDG 11: Sustainable Cities and Communities
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action
  • SDG 15: Life on Land
  • SDG 16: Peace, Justice and Strong Institutions
  • SDG 17: Partnerships for the Goals

Contributions detailed throughout the report

Sustainable Products & Innovation

  • High-purity iron ore concentrate reducing emissions in steelmaking

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:97,943 tCO2e/year
Scope 1 Emissions:85,483 tCO2e/year
Scope 2 Emissions:662 tCO2e/year
Renewable Energy Share:53%
Total Energy Consumption:2,984 TJ/year
Water Consumption:14,766 m3/year
Waste Generated:7,735 tons/year
Carbon Intensity:9.8 kg CO2e/tonne of iron concentrate

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Community Relations
  • First Nations Relations
  • Environmental Stewardship
  • Health and Safety
  • Human Rights

Environmental Achievements

  • Improved usage of recycled water year on year to 96%, while significantly increasing production
  • Revegetated 15.2 hectares of area
  • No occurrence of any major environmental issues

Social Achievements

  • 100% of employees completed First Nations cultural awareness training
  • Initiated an emergency fund to support a non-profit organization
  • Developed an ambitious compensation plan for the loss of fish habitat

Governance Achievements

  • Updated Remuneration, People and Governance Committee charter to include oversight and monitoring of Champion’s diversity and inclusion efforts
  • Updated Sustainability and Indigenous Affairs Committee charter to include oversight and monitoring of issues related to climate change
  • Achieved 80% Level A or Compliant in the first Towards Sustainable Mining (“TSM”) external verification

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Develop methodology for calculating Scope 3 emissions
  • Achieve 100% compliance with the MAC tailings management governance model
Short-term Goals:
  • Reduce GHG emissions by 40% by 2030 (based on 2014 emission intensity)
  • Increase recycled water to 80% (target) and 90% (optimal)

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic
  • Increased need for labor and equipment due to Phase II expansion
  • Increased water consumption due to deeper mining and expansion of employee housing
Mitigation Strategies
  • Established a COVID-19 testing laboratory (later closed but maintained infrastructure)
  • Implemented improvements through Talent Learning Management System (LMS) platform
  • Increased use of recycled water in ore treatment process
  • Upgraded two water collection basins

Supply Chain Management

Responsible Procurement
  • Responsible Procurement Policy
  • Prioritizing local and First Nations suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Forest fires
  • Heat waves
  • Extreme precipitation
  • Potential dike failure from extreme precipitation
Transition Risks
  • Regulatory changes
  • Energy security
Opportunities
  • Longer summers could positively influence energy consumption
  • Production of high-purity iron ore for green steelmaking

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Metals & Mining Industry Standard, TCFD reporting framework

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through renewable energy use, GHG emission reduction, job creation, and collaboration with First Nations communities.

Sustainable Products & Innovation

  • High-purity iron ore for green steelmaking
  • Direct Reduction Pellet Feed (DRPF) product

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:126,786 tCO2e/year
Scope 1 Emissions:125,617 tCO2e/year
Scope 2 Emissions:1,169 tCO2e/year
Renewable Energy Share:56%
Total Energy Consumption:3,708 TJ/year
Water Consumption:16.42 Mm3/year
Waste Generated:8,019 tons/year
Carbon Intensity:8.95 kg CO2e/tonne of iron concentrate produced

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Community Relations
  • Indigenous Relations
  • Health and Safety
  • Environmental Stewardship

Environmental Achievements

  • Greenhouse gas (“GHG”) emissions per tonne of iron ore concentrate produced declined by 8.7% year-over-year
  • Increased recycled water consumption, including 99% of water reused at Bloom Lake
  • Mapped the value chain emissions and established a Scope 3 assessment methodology

Social Achievements

  • Successfully ratified a new 5-year collective bargaining agreement
  • Record health and safety statistics for workers in the 2023 calendar year
  • 50% increase in donations and sponsorship year-on-year, focused on the Company’s local communities operations

Governance Achievements

  • Added additional oversight for sustainability matters as a responsibility of the Board of Directors
  • Reviewed, assessed and updated all of the Company’s sustainability policies
  • Updated SIA Committee charter to include oversight of biodiversity

Climate Goals & Targets

Long-term Goals:
  • Become carbon neutral by 2050
Medium-term Goals:
  • Reduce greenhouse gas emissions intensity at Bloom Lake by 40% by 2030
Short-term Goals:
  • Reduce water consumption; Achieve 90% or above reused/recycled water
  • Achieve above 'A' ratings and 100% compliance with the Mining Association of Canada's tailings management

Environmental Challenges

  • Potential interruption of rail services due to flooding, forest fires, and extreme heat
  • Risk of flooding at the mine site
  • Potential impact of a storm or flood at the port
Mitigation Strategies
  • Completed a climate physical risk assessment of the Company's operations
  • Integrated identified risks into our comprehensive risk register
  • Implemented risk mitigation measures identified in the forest fire risk assessment

Supply Chain Management

Supplier Audits: Business reviews of critical suppliers

Responsible Procurement
  • 80% of procurement spend allocated to suppliers located in Québec; 95% in Canada
  • Responsible Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Interruption of rail services due to flooding, forest fires, extreme heat
  • Flooding at the mine site
  • Storm or flood at the port
Transition Risks
  • Regulatory changes related to GHG emissions, energy efficiency
Opportunities
  • Longer summers positively influencing energy consumption

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Metals & Mining Industry Standard, TCFD reporting framework

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through GHG emission reductions, renewable energy use, job creation, and community partnerships

Sustainable Products & Innovation

  • Direct Reduction Pellet Feed (DRPF) iron ore

Awards & Recognition

  • Mining Association of Québec award for community relations
  • Quebec’s Chamber of Commerce award for community involvement