Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic

Environmental Achievements

• Increased water recirculation to a record 97%
• Reduced specific water consumption by over 30% between 2016 and 2018
• Reduced specific greenhouse gas emissions from 1.09 tCO2e/t in 2017 to 0.93 tCO2e/t in 2018
• Completed construction of a new tailings dam using modern techniques to prevent pollution and maximize safety
• Developed a process to recover niobium from metallurgical slag, increasing productivity and efficiency

Social Achievements

• Created five committees to assist the Board of Directors in decision-making processes
• Revised Job Classification and Salary Policy
• Invested R$4.763.000 in activities and projects in Araxá, focusing on children, youth, and adolescents in education, health, sports, and culture
• Implemented a private pension plan with contributions from both CBMM and employees
• Maintained a zero occupational illness rate

Governance Achievements

• Revised Code of Ethics and Conduct
• Implemented online compliance training for all employees
• Launched a Compliance Program with policies on freebies, gifts, hospitality, third-party contracting, and donations
• No cases or legal actions related to corruption in 2018
• Initiated work on new policies for conflict of interest, anti-corruption, and interactions with public officials

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to increased ferroniobium production
• Maintaining high water recirculation rates despite increased production
• Managing the tailings dams and ensuring their safety
• Addressing the challenges of a volatile domestic market

Mitigation Strategies

• Implemented energy conservation initiatives resulting in savings of 250,710.23 GJ
• Improved water portal system and maintained 97% water recirculation
• Periodic technical verifications, inspections, geotechnical monitoring, and maintenance of tailings dams
• Maintained investments in the fixed income segment to mitigate market volatility

Supply Chain Management

Supplier Audits: Annual audits performed at key suppliers

Responsible Procurement

• Requires certificates from main suppliers
• Monitors purchasing practices via internal and external audits
• Negotiates longer-term contracts for raw materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO/IEC 27001

Third-party Assurance: PricewaterhouseCoopers Auditores Independentes

Environmental Metrics

ESG Focus Areas

• Climate change
• Natural resource management
• Local community development
• Ethics, governance, and transparency
• Occupational health and safety

Environmental Achievements

• 96.4% water recirculation
• 77% of energy comes from renewable sources
• Reduced water consumption by three times compared to 2009 to produce a ton of niobium products.

Social Achievements

• BRL 46 million invested in infrastructure and services in the community
• Low employee turnover rate
• 85% employee engagement rate

Governance Achievements

• Implementation of a unified Risk Matrix in a digital platform
• Launch of the Compliance Partners program
• First edition of Compliance Day

Climate Goals & Targets

Environmental Challenges

• Low rainfall resulting in the water dam not reaching its maximum volume
• Increased waste generation due to increased production

Mitigation Strategies

• Initiatives to replace LPG and diesel with renewable sources
• Optimization projects in the consumption of inputs and contracts with third parties including clauses on best environmental practices

Supply Chain Management

Supplier Audits: Annual audits of major service providers

Responsible Procurement

• Traceability of raw materials and inputs, qualification certifications

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions for the energy and mobility sectors

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO/IEC 27001, ABNT 17025, NBR ISOMEC, NADCAP, AS9100, ISO 45001

Third-party Assurance: PricewaterhouseCoopers Ltda.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Niobium products for batteries, steel alloys, iron alloys, special products

Awards & Recognition

• CBMM Science and Technology Award
• Charles Hatchett Award

Environmental Metrics

ESG Focus Areas

• Environmental performance
• Social performance
• Corporate governance

Environmental Achievements

• Reduction of emissions in the industrial park
• Recirculation of 96.6% of the water volume
• Achievement of the GHG Protocol Gold Seal in Brazil

Social Achievements

• Investment of R$ 39 million in social actions in Araxá, benefiting more than 370,000 people
• Approval of the Social Responsibility Policy
• Achievement of ISO 37001 certification for the anti-bribery management system

Governance Achievements

• Creation of the Legal, Institutional Relations and ESG directorate
• Implementation of the Independent Tailings Review Board (CIRR)

Climate Goals & Targets

Environmental Challenges

• Maintaining high capacity to invest in innovation
• Maintaining a high level of work quality aimed at the safety of employees and third parties
• Maintaining the high level of dam management
• Disseminating the commitment to ethics and integrity to all layers of the organization
• Investing in employee development and work experience
• Maintaining high efficiency in water recirculation
• Maturing the emissions inventory process and building a clear plan for decarbonization
• Developing partnerships and investing in social initiatives

Mitigation Strategies

• Structuring actions in our industrial plant aiming at reducing emissions
• Continuous reviews of internal processes to reduce water consumption
• Implementation of the Independent Tailings Review Board (CIRR)
• Online training for third parties to reinforce adherence to the Code of Ethics and Conduct
• Wellbeing programs with the support of social workers
• Decarbonization plan including fossil fuel replacement technologies and fleet electrification

Supply Chain Management

Supplier Audits: 1,032 high-risk and 1,167 low-risk partners in 2023

Responsible Procurement

• Prioritization of local suppliers
• Third Party Hiring Policy with due diligence for high-risk suppliers
• Code of Ethics and Conduct training for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB indicators

Certifications: ISO 37001, ISO 14001, ISO 45001, ISO 9001, ISO 27001

Third-party Assurance: PwC

UN Sustainable Development Goals

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

Niobium's properties contribute to lighter, stronger, and more energy-efficient materials, supporting various SDGs.

Sustainable Products & Innovation

• Battery-grade Niobium oxides
• Niobium-based molecule with fungicidal properties

Awards & Recognition

• GHG Protocol Gold Seal
• ISO 37001 certification
• Various industry awards (details in report)