Climate Change Data

Nouveau Monde Graphite Inc.

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1546 tCO2e/year
Scope 1 Emissions:210.3 tCO2e/year
Scope 2 Emissions:1.3 tCO2e/year
Scope 3 Emissions:1334 tCO2e/year
Renewable Energy Share:37%
Total Energy Consumption:33,008 GJ/year
Water Consumption:0.71 ML/year (operational withdrawal)
Waste Generated:22 tons/year (non-mineral, non-hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Community Engagement
  • Indigenous Relations
  • Health and Safety
  • Diversity and Inclusion
  • Governance
  • Responsible Mining
  • Circular Economy

Environmental Achievements

  • Offsetting entire historical emissions
  • Commissioned Phase-1 purification facility producing carbon-neutral spherical purified graphite (SPG) at 99.99% purity
  • Developed a proprietary, hydrofluoric acid-free purification process
  • Committed to an all-electric open-pit mine at Matawinie, projected to reduce CO2 emissions by over 300,000 tonnes over the mine’s lifespan
  • Achieved 0 spills qualifying as a non-compliance with environmental laws or regulations

Social Achievements

  • Signed collaboration agreement with Lithion Recycling for recycled graphite recovery and transformation
  • Signed collaboration agreement with Caterpillar for development of an all-electric mining fleet
  • Donated $53,912 in sponsorships to local organizations
  • Developed a territory integration plan to enhance the area around the Matawinie Mine site and improve the region’s tourism and educational offer
  • Implemented a Complaint Management Policy, resolving 2 complaints within 24 hours

Governance Achievements

  • Joined the United Nations Global Compact initiative
  • Endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)
  • Received an A2 sustainability rating from Moody’s
  • Established ESG functions at the Board of Directors and executive levels
  • Released its first Climate Action Plan

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2030
Medium-term Goals:
  • Maintain or improve the Company’s A2 sustainability rating
  • Transition to Net Zero by 2030
  • Partner with at least 3% of Indigenous-owned suppliers by 2025
  • Engineer low-carbon infrastructure and deploy all-electric fleet by year 5 of Phase 2 of the Matawinie Mine
Short-term Goals:
  • Progressively increase diversity representation on the Board of Directors and Management Team by 2025
  • Achieve an OSHA recordable incident rate below 2 by 2025
  • Conduct a life cycle analysis on NMG’s graphite materials by 2022
  • Adopt a water stewardship policy by 2023
  • Certify 100% of suppliers’ compliance with Supplier Code of Conduct by 2023
  • Increase biodiversity leadership by ensuring compliance with protocols, launching site reclamation initiatives, and identifying opportunities for additional ecosystem compensation projects by 2023
  • Provide training on Indigenous awareness and unconscious bias to 100% of employees by 2023

Environmental Challenges

  • Supply chain disruptions due to global events (pandemic, war in Ukraine)
  • Tight labor market
  • Potential impacts on biodiversity and water resources
  • Managing risks associated with community rights and interests
Mitigation Strategies
  • Meticulous planning of mining and environmental engineering
  • Active engagement with local community and Atikamekw First Nation
  • Implementation of mitigation hierarchy for biodiversity (avoidance, minimization, restoration, offset)
  • Integrated water management system
  • Complaint Management Policy
  • Community outreach programs
  • Indigenous outreach program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct
  • Emphasis on local content and Indigenous business participation

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Electrification of mining operations

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 8 (Decent work and economic growth)

NMG's activities contribute to these goals through the production of green battery materials, responsible mining practices, community engagement, and commitment to carbon neutrality.

Sustainable Products & Innovation

  • Carbon-neutral SPG
  • Proprietary purification technology

Awards & Recognition

  • Entrepreneur of the Year Award (Québec Mineral Exploration Association)
  • Mining Magazine’s Future Fleets Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:644 tCO2e
Scope 1 Emissions:444 tCO2e
Scope 2 Emissions:4 tCO2e
Scope 3 Emissions:195 tCO2e
Renewable Energy Share:61%
Total Energy Consumption:19,358 GJ
Water Consumption:0.09 ML
Waste Generated:44 tons

ESG Focus Areas

  • Climate Action
  • Responsible Mining
  • Indigenous Relations
  • Stakeholder Engagement
  • Workforce Development
  • Governance

Environmental Achievements

  • Maintained carbon-neutral balance through reduction efforts and verified carbon credits.
  • Adopted a Water Stewardship Policy.
  • Implemented environmental program, site reclamation initiatives, biodiversity protection and monitoring, and identified additional ecosystem compensation opportunities.
  • No major environmental incidents.

Social Achievements

  • Provided training on Indigenous awareness and unconscious bias to 95% of employees.
  • Partnered with 1.4% of suppliers that are Indigenous-owned, hire Indigenous labor, and/or subcontract to Indigenous businesses.
  • 0 complaints of harassment.
  • 1,342 hours of training on health and safety provided.

Governance Achievements

  • Implemented an enterprise risk management (ERM) framework.
  • Completed a gap analysis against the Towards Sustainable Mining (TSM) protocols.
  • 0 whistleblowing for violations or unethical conduct.
  • 0 incidents of corruption.

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions by 2030
Medium-term Goals:
  • Transition to Net Zero by 2030.
  • Implement 100% of initiatives to minimize land-use change at Matawinie Mine by 2060.
  • Use 99% of renewable energy in 2030.
Short-term Goals:
  • Reduce Phase-2 operations’ Scope 1 emissions by 30% in 2030, 65% in 2035, 100% in 2040.
  • Reach a cradle-to-gate GWP of 1.1 kg of CO2 per kg of CSPG by 2030.

Environmental Challenges

  • Achieving a recordable incident rate below 2 (OSHA calculation).
  • Confirming 100% of suppliers' adherence to the Supplier Code of Conduct.
  • Progressively increasing diversity representation on the Board and Management Team.
  • Partnering with at least 3% of Indigenous-owned suppliers.
Mitigation Strategies
  • Increased attention to slippery surfaces and raising awareness and training of workers.
  • Incorporating ESG criteria into supplier selection and management.
  • Implementing initiatives outlined in the Diversity, Equity and Inclusion (DEI) action plan.
  • Advancing targeted efforts to integrate Indigenous businesses and workers in procurement practices.

Supply Chain Management

Supplier Audits: 86% of active suppliers confirmed adherence to the Supplier Code of Conduct.

Responsible Procurement
  • Supplier Code of Conduct
  • ESG criteria integrated into tendering process
  • Annual disclosure on modern slavery risks.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (heavy rain, ice storms, drought, heat waves, wildfires)
  • Damage to infrastructure
  • Supply chain disruptions
  • Transportation delays
Transition Risks
  • Increased cost of raw materials
  • Increased electricity prices
  • Fossil fuel price fluctuations
Opportunities
  • Increased demand for low-emission products
  • Development of energy-efficient products
  • Recycling battery materials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, UN Global Compact

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 8 (Decent work and economic growth)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 13 (Climate action)
  • Goal 17 (Partnerships for the goals)

NMG's initiatives contribute to these goals through carbon-neutral production, local economic development, sustainable technologies, climate action, and collaboration with stakeholders.

Sustainable Products & Innovation

  • Proprietary thermochemical purification technology
  • New types of precursors and coating technologies
  • High electrochemical performance graphite-based composites
  • Advanced graphite transformation technologies
  • Recovery and value-added transformation of recycled graphite