Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Responsibility
• Governance
• People
• Health and Safety
• Social Performance
• Environment

Environmental Achievements

• Fourth consecutive year of reducing “open” area via land rehabilitation activities, with over 800 hectares of land rehabilitated.
• Successfully relinquished environmental obligations for two mining tenements in the South West of Western Australia.

Social Achievements

• Maintained Aboriginal employment target level of 20 percent at Jacinth-Ambrosia, maintaining 26 percent during the idling period.
• Exceeded Aboriginal representation targets at Jacinth-Ambrosia

Governance Achievements

• Published its first voluntary Tax Transparency Report.
• Commenced a human rights review to examine potential human rights risks and impacts.

Climate Goals & Targets

Environmental Challenges

• Continuation of low-cycle market conditions and disappointing financial performance.
• The idling of the Jacinth-Ambrosia mining operation and a progressive transition to rehabilitation for the United States operations.
• Reduction in employee numbers impacting gender diversity.
• Acquisition of Sierra Rutile changing Iluka’s risk profile and requiring integration of safety and risk mitigation frameworks and Code of Conduct.

Mitigation Strategies

• Set public performance targets for 2017 and 2018 to strengthen sustainability framework and mitigate risks.
• Implemented new Iluka standard for Social Performance and commenced alignment plans at all sites and projects.
• Developed a human rights work program.
• Investing approximately US$60 million over the next two years on operational and safety performance improvement measures at Sierra Rutile.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Local procurement supporting community businesses wherever practicable.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, ICMM sustainable development principles

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Platinum award from Western Australia’s Water Corporation (Narngulu operation)
• Waterwise Champions (Narngulu operation)
• Water Corporation’s Waterwise Business of the Year 2016 (Narngulu operation)

Environmental Metrics

ESG Focus Areas

• Safety
• Anti-bribery and corruption
• Alignment to Iluka’s Code of Conduct
• Land rehabilitation
• Human rights
• Diversity
• Community engagement
• Environmental performance
• Economic contribution
• Tax transparency
• Biodiversity
• Water stewardship
• Energy efficiency
• Greenhouse gas emissions
• Mineral waste management
• Product stewardship

Environmental Achievements

• Completion of 230 hectares of rehabilitation
• Reduction in potential occupational exposure to noise and airborne contaminants at Australian sites

Social Achievements

• Awarded the South Australian Premier’s Community Excellence Award for Social Inclusion
• Increased female participation at executive level to 33%
• Improved hazard reporting at Sierra Rutile

Governance Achievements

• Incorporated into 2017 DJSI Australia Index for leading sustainability performance
• Increased weighting of sustainability related objectives within the incentive payment structure from 10% to 15%

Climate Goals & Targets

Environmental Challenges

• Increase in Total Recordable Injury Frequency Rate (TRIFR) from 4.4 to 4.8
• $90 million increase in the rehabilitation provision for closed operations in the United States
• Challenges in communicating hazards and incidents across the Sierra Rutile workforce due to varying literacy levels
• Noise exposure remaining a potential risk across all Australian sites
• Managing legacy issues associated with historic mineral waste management practices

Mitigation Strategies

• Continued focus on preventing injuries and remaining fatality-free
• Proactive engagement with regulatory agencies to assess rehabilitation program changes
• Adoption of forms using different media to convey messages (pictures, ticks, crosses)
• Focus on reducing noise exposure included in sustainability performance improvement targets
• Programs in place to ensure appropriate management of legacy issues

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Inclusion of human rights clauses in standard purchase order terms and conditions and master goods and services contracts

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, Mining and Metals Sector Disclosure Supplement

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• South Australian Premier’s Community Excellence Award for Social Inclusion
• Winner of the “Systems and People” category at the Western Australian Department of Mines, Industry Regulation and Safety Awards for Excellence

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Our People
• Our Communities
• Environmental Stewardship
• Governance and Integrity
• Value Creation

Environmental Achievements

• Rehabilitated 584 hectares of land at current and former mine sites
• Increased water reuse and recycling to 3 times the total volume of water withdrawn
• Recycled over 3000 tonnes of ‘demolition’ infrastructure and superfluous redundant equipment
• Completed the $14 million South Capel Remediation Project

Social Achievements

• Increased Aboriginal employment to 7% (close to 30% at Jacinth-Ambrosia operations)
• Made over $1.6 million in voluntary contributions and statutory payments for social and economic development
• Implemented COVID-19 site controls and supported local initiatives maintaining Sierra Rutile’s operational continuity
• Launched Safe Production Leadership programme focusing on safety leadership and capability

Governance Achievements

• Implemented a company-wide efficiency programme to improve business processes and cost effectiveness
• Published a stand-alone Tax Transparency Report for 2020
• Published the first Modern Slavery Statement

Climate Goals & Targets

Environmental Challenges

• COVID-19 impacted market demand, operational and supply chain continuity, and key project progression
• Maintaining operational continuity at Sierra Rutile during the COVID-19 pandemic
• Meeting diversity targets of 30% female and 8% Aboriginal participation in the Australian workforce

Mitigation Strategies

• Implemented protective measures including risk-based infectious disease management plans and mental health programmes
• Established on-site quarantine and isolation facilities in Sierra Leone and provided community support
• Implemented a company-wide efficiency programme
• Continued to implement leadership development programmes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for local businesses where practical
• Evaluation of suppliers on health, safety, environment, technical, service, innovation and value criteria
• Supplier self-assessment questionnaire for new vendors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Temperature changes
• Changes in access to water

Transition Risks

• Impact of future carbon pricing on production and operational costs, supply chain and markets

Opportunities

• Increased utilisation of renewable energy
• Increased utilisation of Iluka’s by-products
• Improved market position due to higher demand for Iluka’s products
• Entry into the rare earths market

Reporting Standards

Frameworks Used: GRI Standards, ICMM Sustainable Development Principles, TCFD recommendations

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 9
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Iluka’s initiatives and activities contribute to all 17 SDGs. The report highlights contributions to Goals 3, 4, 9, 12, 13, 15, and 17.

Sustainable Products & Innovation

• Activated carbon
• Monazite-zircon concentrate from Eneabba

Awards & Recognition

• South Australian Premiers award for Health and Safety

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Management
• Community Relations
• Indigenous Relations
• Human Rights
• Climate Change
• Diversity & Inclusion

Environmental Achievements

• Rehabilitated 574 hectares of land.
• Received the Golden Gecko Award for environmental excellence for the Flora Restorer.
• Achieved relinquishment of environmental obligations at the Wagerup mineral sands mine.

Social Achievements

• 18% decrease in Serious Potential Injury Frequency Rate (SPIs).
• Launched Iluka’s first Supplier Code of Conduct.
• Contributed $1.0 million in community investments.
• 20% employment of Far West Coast Peoples at Jacinth-Ambrosia.

Governance Achievements

• Successfully demerged Sierra Rutile.
• Established a Sustainability Committee.
• Concluded a $1.25 billion strategic risk-sharing agreement with the Australian Government.

Climate Goals & Targets

Environmental Challenges

• Increase in Total Recordable Injury Frequency Rate (TRIFR), mainly due to soft tissue injuries.
• Global inflation impacting labour, consumables, fuel, and transport costs.
• Supply chain disruptions.
• Climate change impacts on water availability.

Mitigation Strategies

• Increased visible presence of senior leaders at operational sites; early physiotherapy intervention.
• Maximising the proportion of renewable energy supply; energy efficiency gains.
• Disciplined responses to market instability; focus on sustainable pricing.
• Suitable management and mitigation measures to ensure sustainable water use.

Supply Chain Management

Responsible Procurement

• Iluka’s Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on water availability

Transition Risks

• Evolving global climate change policy

Opportunities

• Development of energy-efficient products
• Supply of critical minerals for a lower carbon economy

Reporting Standards

Frameworks Used: GRI Standards

Sustainable Products & Innovation

• Eneabba Rare Earths Refinery
• Zircon purification process

Awards & Recognition

• Golden Gecko Award for environmental excellence
• Virginia Mineral Mine Safety Award