Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Increased renewable energy share in indirect energy consumption to 56.2% in 2020 (three consecutive years of increase)
• Restored 230,000 square meters of vegetation at Sandaozhuang molybdenum mine and 220,000 square meters at Shangfanggou molybdenum mine.
• Planted 45,000 native seedlings over 27 hectares in Brazil.
• Implemented water-saving technology at China site, improving water efficiency.
• Completed wastewater treatment project at China site, reusing water in production.

Social Achievements

• Luanchuan County (where CMOC operates) officially removed from China's list of impoverished counties in 2019, with CMOC among China's top 100 poverty alleviation companies in 2020.
• Invested approximately RMB 160 million in community projects across operations (poverty alleviation, public health, education, agriculture, infrastructure, and resettlement).
• Implemented online safety training and quizzes due to Covid-19, reaching over 6,000 employees.
• Launched the "Nossa Terra" program in Brazil, providing technical assistance and training to rural families.
• Completed construction of four schools and donated 600 sets of tables and chairs to 12 schools in DRC.

Governance Achievements

• Formulated a roadmap for a sustainability governance system and a Strategic and Sustainability Committee at the Board level in 2018.
• Established the Sustainability Executive Committee at the executive level in 2019.
• Reviewed and updated nine compliance and sustainability policies applicable to the whole group in 2019.
• Furthered implementation of policies across all business segments and continued to improve its compliance and sustainability framework in 2020.
• Started updating Human Rights Policy and developing Anti-Money Laundering Policy and Data Protection Policy in 2020.
• Revised and published a series of stringent group policies and systems, including a comprehensive risk management system, internal control system, and internal audit system in 2020.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting workforce, international travel, and supply chains.
• Varying sustainability risks across different operational environments (climate, regulations, socio-economic development).
• Increasing scrutiny of sustainability risks in the cobalt supply chain.
• Illegal mining activities in DRC impacting security and human rights.
• Water scarcity at Northparkes mine (mitigated by increased rainfall in 2020).

Mitigation Strategies

• Implemented strict epidemic prevention measures, stockpiled essential supplies, and made appropriate arrangements for personnel.
• Provided epidemic prevention funding and medical supplies to local communities.
• Implemented risk registers at corporate and site levels, developing and implementing action plans for high-ranked risks.
• Conducted self-evaluation against OECD Guidance and RMI's RRA (TFM).
• Strengthened communication and cooperation with stakeholders in DRC.
• Implemented robust product control and custody procedures to ensure responsible sourcing of minerals.
• Engaged with government and military leaders in DRC to communicate human rights policy and request distribution of VPSHR to soldiers.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Environmental and social screening
• Compliance reviews
• Contractor management systems
• HSE pre-qualification vetting
• Due diligence on suppliers of hazardous chemicals
• Annual evaluations of suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (core), HKEX Reporting Guide

Certifications: ISO 14001, OHSAS 18001 (or ISO 45001), ISO 9001

Third-party Assurance: Corporate Integrity Ltd.

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure

Community investments are centered around these SDGs.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced total GHG emissions intensity by 20% compared to 2020
• Restored 381,000 square meters of vegetation at Sandaozhuang molybdenum mine and 152,000 square meters at Shangfanggou molybdenum mine
• Increased proportion of recycled water to approximately 77% of total water usage

Social Achievements

• Invested approximately RMB 190 million in community projects across operations
• Achieved zero fatalities in 2021
• Implemented the first phase of an employee stock ownership plan

Governance Achievements

• Updated Human Rights Policy, Employment Policy, Anti-Money Laundering Policy, and Global Privacy Guidelines
• MSCI upgraded the company’s ESG rating from ‘BBB’ to ‘A’
• Board approved four compliance and sustainable development policies, new environmental goals, a climate change vision, and a biodiversity vision

Climate Goals & Targets

Environmental Challenges

• Uneven global economic recovery amid pandemic disruption
• Heightened geopolitical tensions impacting mineral supply chains
• Extreme weather events highlighting urgent need for climate action
• Illegal artisanal mining around TFM mine concession
• Covid-19 pandemic impacting travel and logistics

Mitigation Strategies

• Improved ESG policy framework and risk management
• Stepped up recruitment and training, building multidimensional incentive structures
• Active community investment policy
• Strengthened engagement and cooperation with stakeholders
• Implemented strict Covid-19 prevention measures across all sites

Supply Chain Management

Responsible Procurement

• Code of Business Conduct
• Supplier Code of Conduct
• Environmental and social screening of suppliers
• Use of third-party platforms for supplier vetting

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Extreme weather events

Transition Risks

• Changes in policies and regulations
• Cost of transitioning to low emissions technologies

Opportunities

• Increased demand for copper and cobalt in renewable energy sector

Reporting Standards

Frameworks Used: GRI Standards (core), SSE Environmental Information Disclosure Guide, HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 9001 (China and Brazil operations)

Third-party Assurance: Corporate Integrity Ltd.

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

CMOC's initiatives contribute to these goals through water recycling, renewable energy use, and emissions reduction efforts.

Awards & Recognition

• Parkes Shire 2022 Australia Day Environmental Award (NPM)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Renewable sources accounted for 38.8% of overall energy consumption in 2022.
• Reduced water use intensity by 10.1% compared to 2021.
• Recycled water accounted for 80.9% of total water consumption.
• Developed a carbon neutral roadmap with ambitious goals to reach peak carbon emissions by 2030 and carbon neutrality by 2050.
• Invested RMB 379 million on environmental protection.

Social Achievements

• No work-related fatalities or new reported cases of occupational illness.
• Invested approximately RMB 290 million in education, healthcare, economic development, infrastructure, and resettlement projects.
• 90.3% of CMOC's workforce received training, with each employee receiving an average of 22.7 hours of training.
• Joined the United Nations Global Compact (UNGC).

Governance Achievements

• Appointed an ESG Vice President and established a new ESG department.
• Incorporated ESG performance into strategic goals.
• Maintained an “A” rating from MSCI ESG Ratings.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (heat waves, high rainfall, drought, forest fires) impacting operations.
• Supply chain disruptions.
• Increased scrutiny of sustainability risks in the cobalt supply chain.
• Illegal artisanal mining in the DRC.
• Weaknesses in KFM's management system and talent pool.

Mitigation Strategies

• Developed a carbon neutral roadmap with a US$1.5 billion investment pledge.
• Updated ESG strategy to address changing expectations and regulatory requirements.
• Implemented a three-tier ESG management framework.
• Strengthened due diligence of upstream suppliers.
• Engaged with government and military leaders to address human rights risks associated with military deployment in the DRC.
• Provided extensive support to KFM site to facilitate the development of effective management and environmental protection strategies.
• Conducted human rights due diligence assessment at TFM.

Supply Chain Management

Supplier Audits: Annual evaluations of suppliers, monthly assessments in Brazil.

Responsible Procurement

• Supplier Code of Conduct
• ESG-related criteria in supplier onboarding and evaluation
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (intense rainfall, storms, drought)

Transition Risks

• Changes in policies and regulations
• Cost of transitioning to low-emission technologies

Opportunities

• Increased demand for metals in the renewable energy sector

Reporting Standards

Frameworks Used: GRI Standards, HKEX Reporting Guide, SSE Environmental Information Disclosure Guide

Certifications: ISO 14001, ISO 45001, ISO 9001 (China and Brazil)

Third-party Assurance: Corporate Integrity Ltd.

UN Sustainable Development Goals

• Goal 1 (No poverty)
• Goal 2 (Zero hunger)
• Goal 3 (Good health and well-being)
• Goal 4 (Quality education)
• Goal 5 (Gender equality)
• Goal 6 (Clean water and sanitation)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

CMOC's community investment and sustainability initiatives contribute to these goals.

Sustainable Products & Innovation

• Organic fertilizer from phosphate tailings in Brazil

Awards & Recognition

• National Green Mines (Sandaozhuang and Shangfanggou mines)
• Workforce and Workplace Relations Innovation Award (NPM)
• NSW Women in Mining Gender Diversity Champion Award 2022 (NPM)
• Gender Diversity Champion in Australian Resources for 2022 (NPM)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Spent RMB 252 million on environmental protection.
• Published the CMOC Carbon Neutral Roadmap and Action Plan.
• Increased the share of energy from renewable sources.
• Reclaimed 198.5 hectares of land.

Social Achievements

• Resolved the TFM royalties dispute.
• Successfully initiated two world-class projects in the DRC.
• Published its inaugural standalone ESG report.
• TFM published the Policy on Safeguarding Vulnerable Groups.
• TFM community department helped 1,415 local residents secure stable employment.
• KFM held over 100 recruitment campaigns, creating approximately 2,000 jobs for local residents.
• 93.9% of CMOC's workforce received training, with each employee receiving an average of 23.4 hours of training.

Governance Achievements

• Published the Responsible Production and Sourcing Policy.
• MSCI ESG Ratings upgraded CMOC's rating from “A” to “AA”.
• Published the CMOC Carbon Neutral Roadmap and Action Plan.
• Implemented the updated version of our Group-wide Comprehensive Risk Management System.

Climate Goals & Targets

Environmental Challenges

• Volatile global landscape and substantial development tasks.
• Increased scrutiny from stakeholders.
• Need to invest more resources in strategic planning and daily management to improve environmental performance.
• Inadequate assessment and tracking of social impacts.
• Need to improve systems and processes in business integrity and contractor management.
• Safety incidents in 2023.

Mitigation Strategies

• Unveiled the Carbon Neutral Roadmap and Action Plan.
• Conducted carbon assessments and formulated the CMOC 2030 Peak Carbon Emissions Implementation Plan.
• Strengthened strategic guidance at the Group level and improved management practices across our various operations.
• Implemented the updated version of our Group-wide Comprehensive Risk Management System.
• Implemented risk registers, tracking critical risks, and monitoring sources of material risks.
• Implemented a four lines of defense risk management framework.
• Strengthened collaboration across all parts of the organization.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Production and Sourcing Policy
• Supplier Code of Conduct
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Landslides
• Droughts
• Storms

Transition Risks

• Carbon pricing
• Market signals
• Regulatory scrutiny
• Product substitution

Opportunities

• Growing demand for low-carbon products and services
• Increased business resilience due to the growth in alternative energy sources

Reporting Standards

Frameworks Used: GRI Standards, HKEX Reporting Guide, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Corporate Integrity Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• National Green Mines (Sandaozhuang mine and Shangfanggou molybdenum mine)
• Best Practice Award from the China Association for Public Relations
• Gold rating by Ecovadis (IXM)