Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Resource Governance
• Human Rights
• Our People
• Stakeholder Engagement
• Impact Investing

Environmental Achievements

• Collected, treated, and discharged effluents at exploration camp in compliance with required standards, with minor exceedance related to sewage treatment
• Developed wildlife rescue plan
• Developed partnership with Conservation International Ecuador

Social Achievements

• Initiated education, training and upskilling initiatives to improved local hiring opportunities
• Conducted structured and participatory engagement and roundtables, which helped structure relevant CR program
• Established grievance mechanism and fairly addressing grievances recorded

Governance Achievements

• Disclosed material payments to Government of Ecuador
• Through Lundin Foundation, provided training to journalists, local government and agencies
• Implemented a grievance mechanism aligned with good international practice

Climate Goals & Targets

Environmental Challenges

• Minor exceedance related to sewage treatment at exploration camp
• Artisanal mining activities within concessions interfering with planned operations, introducing environmental and health risks, contributing to potential conflict over land access, and raising security concerns
• Educational and training gaps in the Project’s area of influence

Mitigation Strategies

• Implementing improvements to sewage treatment plant to ensure full compliance
• Formulated a strategy for artisanal mining within our concessions, including consultation with government agencies, local authorities, public safety bodies, neighboring communities, and the artisanal miners themselves
• Developed a series of educational and training programs, including an accelerated high school program for adult learners, and initiatives to support up-skilling, vocational training, and certification for our local community members and their businesses

Supply Chain Management

Responsible Procurement

• Instituted a subsidized pre-qualification and certification process for locally-based small businesses and suppliers
• Expressed a preference for companies that can demonstrate local value creation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2016) Core option

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 1 (No Poverty)
• Goal 15 (Life on Land)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 16 (Peace Justice and Strong Institutions)

Initiatives focused on education and training, inclusive procurement, economic diversification, and resource governance.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic Impact
• Transition to Construction
• Water Quality
• Safe Working Conditions
• Biodiversity Conservation
• Social License to Operate
• Human Rights

Environmental Achievements

• Rescued and relocated over 35,000 flora and fauna specimens during clearing and monitoring
• Installed additional water treatment units (8 & 9) to improve water quality performance.
• 40 percent reduction in the size of the processing plant compared to the feasibility study.

Social Achievements

• More than 60% of Lundin Gold’s workforce was from the Province of Zamora Chinchipe.
• Routinely spending more than $1 million per month through local procurement with small local businesses.
• Accelerated high school diploma program nearing completion with over 200 adults participating.
• Established community-based water monitoring program with 24 participants.

Governance Achievements

• Joined the UN Global Compact in March 2018.
• Received a UN Global Compact SDG8 Award for work with Catering Las Peñas and the Lundin Foundation.

Climate Goals & Targets

Environmental Challenges

• Increased incident frequency rate during the first month of construction.
• Growing camp size and increase in construction activities necessitated installation of additional water treatment units to improve water quality performance.
• Negative media coverage attributed to the increasing number and scope of mining projects in Ecuador.

Mitigation Strategies

• Diligent efforts of site-based team and company-wide commitment to safety resulted in three consecutive months with zero incidents.
• Installation of additional water treatment units.
• Proactive engagement with stakeholders through community roundtables and media outreach.

Supply Chain Management

Responsible Procurement

• Inclusive procurement strategy prioritizing local and national vendors
• Subsidized pre-qualification and certification assistance
• Simplified contracting and expedited payment terms for local suppliers
• Nexo incubator program for local SMEs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Core option, UN Global Compact

UN Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth)

Impact investments focused on education, training, inclusive procurement, and economic diversification.

Awards & Recognition

• UN Global Compact SDG8 Award

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Economic Performance
• Occupational Health and Safety
• Non-Discrimination
• Security Practices
• Rights of Indigenous Peoples
• Local Communities
• Socioeconomic Compliance
• Biodiversity
• Greenhouse Gas Emissions
• Effluents and Waste
• Environmental Compliance
• Procurement Practices

Environmental Achievements

• Partnership with Conservation International - Ecuador for community-based water monitoring and environmental stewardship
• Biodiversity Action Plan in place for Fruta del Norte

Social Achievements

• Cooperation agreement with the Shuar Federation of Zamora Chinchipe updated in 2019
• Dedicated team to help manage the formalization of artisanal miners
• Community engagement programs at Fruta del Norte

Governance Achievements

• No socio-economic non-compliance during 2019
• No significant incidents of discrimination

Climate Goals & Targets

Environmental Challenges

• Managing impacts on local communities
• Addressing environmental and social risks associated with artisanal mining
• Balancing economic development with environmental protection

Mitigation Strategies

• Regular meetings with local leaders and stakeholders
• Implementation of a grievance mechanism
• Collaboration with Conservation International
• Dedicated team to support artisanal miner formalization

Supply Chain Management

Responsible Procurement

• Policy on Local Suppliers
• Accountability of Local Suppliers
• Code of Conduct
• Capacity building programs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: No assurance provided.

Environmental Metrics

ESG Focus Areas

• Biodiversity
• Climate Change & GHG
• Community Development & Community Relations
• Governance
• Health and Safety
• Human Rights
• Labour Relations
• Supply Chain
• Water Management
• Diversity, Inclusion & Equity
• Ethics
• Indigenous Relations
• Local Employment & Procurement
• Tailings & Waste Rock Management

Environmental Achievements

• Reduced GHG emissions intensity per tonne of ore milled to 0.05 tCO2e/t and per ounce of gold produced to 0.20 tCO2e/oz
• 79% renewable electricity
• 12% tailings repurposed
• 42% non-hazardous waste recycled

Social Achievements

• 100% of security personnel received formal human rights training
• 12% of spending on local suppliers
• Community investments of $4,063,000

Governance Achievements

• Board Diversity Policy adopted targeting 30% female directorship by 2023
• Quarterly review of economic, environmental, and social topics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic halting operations for three months
• Supply chain disruptions due to the pandemic
• Compliance with labour regulations related to COVID-19

Mitigation Strategies

• Renegotiated terms and conditions with suppliers
• Resumed operations progressively
• Addressed community concerns through structured dialogue

Supply Chain Management

Supplier Audits: 165 suppliers assessed

Responsible Procurement

• Local Procurement Policy
• Contracts with provisions to maximize local employment and purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core Option, GRI G4 Mining and Metals Sector Disclosures

Certifications: Null

Third-party Assurance: No external third-party assurance was sought.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Established GHG emissions intensity baseline of 35.01 tonnes (t) CO2 equivalent (CO2 eq) per kilotonne of ore milled and 0.12 t CO2 eq per ounce of gold produced in 2021.
• In the lowest quartile of carbon emitters in the gold sector based on ounces of gold produced and average for underground mines based upon tonnes of ore milled.

Social Achievements

• On Earth Day, Lundin Gold employees planted 200 trees in locations across Ecuador
• Ongoing community investment with an increased focus upon community-level climate impacts and supporting adaptation.

Governance Achievements

• Amended its governing charter to explicitly set out the Board’s responsibility for oversight of climate change risks.
• Reconstituted its Environment, Health and Safety Committee as the Health, Safety, Environment and Sustainability Committee (HSES Committee) to oversee climate-related risks and opportunities.
• Integrated climate performance metrics into executive compensation.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events and risks posed to infrastructure (TSF, road network, flooding, erosion).
• Increased levels of groundwater and associated risks for underground mining operations.
• Potential damage to key offsite infrastructure (ports, airports, etc.).
• Transition risks associated with policy changes in Canada and Ecuador (emissions reductions, carbon pricing, increased disclosure requirements).
• Community impacts due to changing government policies (e.g., fuel subsidies).

Mitigation Strategies

• Hydrological studies, mapping of alternative routes and infrastructure, erosion control strategies, monitoring of water levels, updated hydrogeological model.
• Implementation of Lundin Gold’s Climate Change Strategy, transparency of climate change data, stakeholder engagement.
• Ongoing monitoring of Ecuadorian and international policies, integration of possible taxation into corporate planning process.
• Tracking of new policies, active engagement with regulatory agencies, diplomatic representatives and industry bodies, commitment to implementing TCFD recommendations.
• Assessment of new technologies for electrification, increased use of renewable energy, offset opportunities with local benefits, greater integration of circular economy innovations, greater use of virtual meetings and travel reductions.

Supply Chain Management

Responsible Procurement

• Incorporating climate considerations into vendor screening and engaging with vendors regarding climate goals.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding, erosion, increased groundwater levels, damage to offsite infrastructure

Transition Risks

• Carbon pricing, emissions trading schemes, increased disclosure requirements, policy changes in Canada and Ecuador

Opportunities

• Electrification of equipment, efficient energy usage, renewable power sources, improved concentrate shipment, integration of climate considerations into vendor selection, carbon offsets, green gold market focus

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDG 13 (Climate Action)

Alignment of reporting to SDG 13.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Infrastructure
• Community Well-Being
• Environmental Stewardship
• Health and Safety
• Human Rights
• Lasting Economic Opportunities
• Responsible Resource Governance

Environmental Achievements

• Recalculated 2021 Scope 1 and 2 GHG emissions resulting in a reduction of approximately 1,167 tCO2e from our recalculated 2021 total emissions of 30,767 tCO2e.
• Achieved 74% recycling and reuse of non-hazardous waste (exceeding the 61% target).
• 12% per-capita water use reduction registered in 2022 (288 litres/per day/per capita achieved).

Social Achievements

• Earned the “Great Place to Work” recognition (89% of 1454 employees considered Lundin Gold a great place to work).
• 90% high school graduation rate at the local school (2020-2022).
• 71% of university graduates from Rings 1 and 2 were employed or self-employed in 2022.
• Implemented two campaigns against drug and alcohol abuse and one against domestic violence.

Governance Achievements

• 2022 “Say-on-Pay” vote had over 99% approval for the second year in a row.
• Maintained 33% female membership on the Board.
• No non-conformities found during 12 inspections by Ecuadorian authorities.

Climate Goals & Targets

Environmental Challenges

• Illegal mining activities (125 points identified across concessions).
• Addressing concerns from the El Pindal community regarding a landslide and tailings storage facility management.

Mitigation Strategies

• Proactive measures to address illegal mining including ground inspections, drone flights, and meetings with government authorities.
• Arranged a visit to FDN for the El Pindal community to address their concerns.

Supply Chain Management

Supplier Audits: 38 site inspections and two formal environmental audits of artisanal mining operations.

Responsible Procurement

• Prioritizes engagement of local suppliers; aims to increase spending and types of products sourced from local businesses; contracts highlight expectation of local sourcing.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core Option, GRI G4 Mining and Metals Sector Disclosures, SASB Metals and Mining Industry Standards, Mining Local Procurement Reporting Mechanism (LPRM) Core Option, TCFD

Certifications: Null

Third-party Assurance: No external third-party assurance

UN Sustainable Development Goals

• Not disclosed

Aligned Strategy with the SDGs to meaningfully contribute to Ecuador’s 2030 Agenda.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• First place at the Occupational Health and Safety: Turning Effort into Recognition (SSOTER) 2022 Awards; award from the Peruvian Institute of Mining Safety.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Community Infrastructure
• Community Wellbeing
• Health and Safety
• Human Rights
• Lasting Economic Opportunities
• Responsible Resource Governance

Environmental Achievements

• Reduced per-capita water usage by 13%
• Recycled/reused 90% of non-hazardous waste
• Restored 3.4 hectares of land
• Climate Change emissions intensity of 0.08 tco2e/oz gold produced

Social Achievements

• Achieved a 97% high school graduation rate in Ring 1
• 62% of university graduates from Ring 1 and Ring 2 were employed
• Total Recordable Incident Rate of 0.24 (per 200,000 hours worked)
• 89% of employees consider Lundin Gold to be a “Great Place to Work”

Governance Achievements

• Achieved 44% female representation on the Board of Directors
• Zero instances of non-compliance with our Anti-Bribery Policy
• Increased perception of responsible mining and governance among FDN stakeholder visits by 60%

Climate Goals & Targets

Environmental Challenges

• Finding economically viable opportunities to reduce emissions further
• Supply challenges with the national electricity power supply leading to increased diesel consumption
• Prolonged drought conditions in Ecuador impacting power supply and emission factors
• Inefficiencies in the carbon offset market

Mitigation Strategies

• Developing a work plan for 2024 to research offset options and refine offset strategy
• Increased reliance on diesel generators to avoid blackouts
• Engaging with the Ministry of Environment, Water and Ecological Transition regarding climate ambitions
• Developing a portfolio of internally developed carbon offsets
• Implementing emissions inventory management software

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Standard form contract for most procurement activities
• Supplier mapping exercise to identify modern slavery risks
• Mandatory modern slavery risk training for supply chain and human resources teams

Climate-Related Risks & Opportunities

Physical Risks

• Changes to long-term weather patterns
• Damage to facilities
• Increased operating costs
• Lack of insurability of assets
• Service and supply chain interruptions
• Suspension of operations
• Loss of gold production
• Tailings storage facility overtopping
• Landslides
• Loss of electricity supply
• Flooding of camp
• Damage to key infrastructure
• Reduced site access or availability of transport routes

Transition Risks

• Availability of low-emission mining equipment
• Emission reduction requirements
• Restrictions on heavy industry
• Energy costs
• Insurance impacts
• Reduced demand for gold
• Reduced investor appetite for mining

Opportunities

• Assessment of new technologies for electrification
• Increased use of renewable energy
• Offset opportunities with additional local benefits
• Greater use of virtual meetings
• Market focus on emissions profile of gold production

Reporting Standards

Frameworks Used: ESRS, TCFD, GRI, SASB, UN SDGs

Certifications: ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• SSOTER Honorary Award for Excellence in Occupational Health and Safety Management
• UN Global Compact – Ecuador award in the SDG 5 Gender Equality category
• Socially Responsible Company Distinction from CERES Ecuador