Climate Change Data

Environmental Metrics

ESG Focus Areas

• Good Governance
• Welfare of our Employees
• Safe Workplace
• Protecting the Environment
• Empowering Communities

Environmental Achievements

• HMC’s coral nursery initiative achieved a 90% survival rate of coral fragments.
• TMC launched “DiSCUBA,” a program to promote diving and responsible mining.
• RTN used bioreactor technology to convert biodegradable waste into organic fertilizers.

Social Achievements

• No employee job losses or pay cuts due to the pandemic.
• Over PhP60 million spent on supplying communities with PPE and food during COVID-19.
• Two subsidiaries received the Presidential Mineral Industry Environment Award.

Governance Achievements

• Formal ESG process established.
• Participation in the Towards Sustainable Mining (TSM) program.
• No data breaches recorded in 2020.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing supply chain disruptions and health concerns.
• Lower sales volume of limonite ore.
• Fluctuation of metal prices.

Mitigation Strategies

• Activated incident management teams at every mine site.
• Provided communities with PPE and food during COVID-19.
• Implemented work-from-home arrangements and flexible work set-ups.

Supply Chain Management

Responsible Procurement

• Accreditation process requiring Safety, Environmental, and Regulatory compliance.
• Prioritization of local suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Sustainability Accounting Standards Board (SASB) – Metals and Mining sector, AccountAbility principles

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: GCSS Inc.

Awards & Recognition

• Presidential Mineral Industry Environment Award (PMIEA)
• Platinum Achievement Award
• ASEAN Mineral Awards
• Top Prompt Remitting and Reporting Private Employers
• PH-EITI Transparency Award
• Top 20 Early Taxpayers

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved a record of sorts by winning the highest recognition in every category of the PMIEA (Presidential Mineral Industry Environment Awards) at Hinatuan Mining Corporation.
• RTN, TMC, CMC and HMC have all been awarded the PMIEA.
• RTN launched “Towards 5M Trees for Palawan”
• CMC developed its own Sargassum Liquid Fertilizer (SLF) using sargassum seaweed debris.

Social Achievements

• Rio Tuba operation's host municipality (Bataraza) became a first-class municipality and the richest in the MIMAROPA region.
• Taganito operation's host municipality (Claver) is on the cusp of becoming a city.
• Total spending on CSR + SDMP (PhP 529.56 million)
• Directly employed 2,534 people.
• Excellent labor relations with existing CBA agreements with unions at four major operations.
• TMC, RTN, CMC, and HMC received DOLE Safety Seal certifications.
• CMC received DOLE Certification as a child labor-free establishment.

Governance Achievements

• Incorporated reference to ESG into the Company Vision statement.
• Established a robust Enterprise Risk Management (ERM) system.
• No incidents of corruption or Labor Code violations reported.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Unfavorable weather conditions.
• Upkeep and maintenance of aging gensets.
• Fluctuation of metal prices.
• Risks associated with community rights and interests.
• Delays in FPIC (Free and Prior Informed Consent) process due to local elections and COVID-19 pandemic.

Mitigation Strategies

• Implemented temporary work scheduling and stringent health protocols.
• Realigned initiatives to mitigate COVID-19 impact on communities.
• Regular and proper maintenance of gensets.
• Enterprise Risk Management (ERM) system to identify, measure, and manage risks.
• Proactive community engagement and communication.
• Continued community engagement work and negotiations with ICCs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritization of local suppliers.
• Accreditation process with environmental performance criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons

Transition Risks

• Not disclosed

Opportunities

• Development of renewable energy projects.

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: GCSS Inc.

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 6
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 17

NAC's Sustainability Framework aligns ESG initiatives with the UN SDGs, focusing on five key pillars where it can contribute meaningful impact.

Sustainable Products & Innovation

• Sargassum Liquid Fertilizer (SLF)

Awards & Recognition

• Multiple PMIEA awards across subsidiaries
• National Awardee of the 2021 Search for Outstanding Labor-Management Cooperation for Industrial Peace (TMC)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions (avoided 47,324 tCO2e)
• 80.59% of total waste diverted from disposal
• 114.8 million kWh renewable energy generated
• 73 ha Land rehabilitated
• 269 ha Land reforested
• 1 million seedlings planted

Social Achievements

• ₱200.4 million spent on social development and management programs (SDMP) and CSR, including ₱17.5 million for indigenous peoples
• 88,715,956 safe manhours
• 62,799 training hours for employees
• 100% return-to-work rate after parental leave
• 206 Indigenous people hired
• ₱65 million spent on relief goods

Governance Achievements

• Creation of a board-level Sustainability Committee
• Improved Sustainalytics risk rating (from Severe to High Risk)
• Two Golden Arrows for ASEAN Corporate Governance Scorecard
• Establishment of Anti-bribery and Anti-corruption Policy
• Creation of the Sustainability Charter

Climate Goals & Targets

Environmental Challenges

• Inclement weather impacting operating efficiency
• Global fuel price spikes and inflationary pressures
• Supply chain disruptions
• Data security risks related to work-from-home setups

Mitigation Strategies

• Water Management Plan with conservation policies and practices
• Solid waste management plan with upcycling and waste management technologies
• Supply Chain Management Approach using an accreditation process including environmental performance
• Implementation of VPN for work-from-home users, DocuSign for e-signatures, and Microsoft 365 for communications and collaboration

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Accreditation process incorporating environmental performance; preference for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Unfavorable weather conditions

Transition Risks

• Energy policy changes

Opportunities

• Renewable energy development

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB, UNGC, TCFD

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: SGV & Co.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• ASEAN Mineral Awards (RTN)
• Presidential Mineral Industry Environment Awards (PMIEA) (RTN, TMC, CMC, HMC)
• ICD Golden Arrows (NAC)
• Best Basic Materials Company in the Philippines (FinanceAsia)