Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Scope 1 GHG emissions were lower in 2016 due to suspended production at Rabbit Lake and curtailed production at US operations. Improvements at Cigar Lake reduced propane consumption.
• Scope 2 GHG emissions were lower in 2016 due to suspended production at Rabbit Lake and curtailed production at US operations. Lower emission factors for electricity also contributed.

Social Achievements

• Continued to hire nearly 50% of northern Saskatchewan employees from local communities.
• All of Cameco’s employees in Canada, the US, Kazakhstan and Australia are represented by OHS committees.
• Maintained a very low LTI rate.

Governance Achievements

• All of Cameco’s operations have preliminary decommissioning plans with adequate funding attached.
• Cameco is committed to compliance with competition and anti-trust laws.

Climate Goals & Targets

Environmental Challenges

• Lower sales revenues in all operating segments due to reduced sales volumes related to market conditions and lower US dollar average realized price.
• Higher unit cost of sales in the uranium segment due to care and maintenance costs and severance costs related to production curtailment.
• Higher administration costs due to increased legal costs and one-time costs related to collaboration agreements.
• Decrease in employee wages and benefits due to a reduction in the annual employee incentive program.
• Overall local procurement spend was down in 2016 due to lower capital spend in northern Saskatchewan and a reduction in spend related to a halt in new development at US operations.

Mitigation Strategies

• Additional controls have been put in place at JV Inkai LLP to enhance the corporate income tax advance submission process.
• Additional controls have been put in place at Cameco to enhance corporate knowledge and procure to pay process with respect to the application of PST in the province.
• Continued to work closely with the province to strengthen knowledge of PST and improve audit results.

Supply Chain Management

Responsible Procurement

• Commitment to using local suppliers codified in procurement policy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social: Labour Practices and Decent Work
• Social: Human Rights
• Society
• Product Responsibility

Environmental Achievements

• Scope 1 GHG emissions were lower in 2017 as compared with previous years as a result of reduced activity and production at some operations.
• Scope 2 GHG emissions were lower in 2017 as compared with previous years as a result of reduced activity and production at some operations.
• Overall, the amount of waste we generated in 2017 was lower than in previous years. This is explained by reduced activity and production at some operations.
• Cameco has been focused on minimizing environmental incidents for many years, and has not had a significant environmental incident since 2008.

Social Achievements

• All of Cameco’s employees in Canada, the US, Kazakhstan and Australia are represented by OHS committees.
• Cameco has a strong safety culture and maintains a safe working environment for all of its employees. Our LTI rate continues be very low, following a stable to somewhat declining trend.
• In 2017, we continued moving forward with our workforce diversity plan with greater focus on education and awareness.
• There were no disputes related to indigenous rights in 2017.

Governance Achievements

• All of Cameco’s operations have preliminary decommissioning plans with adequate funding attached.
• Cameco is committed to compliance with competition and anti-trust laws everywhere we operate.
• Cameco received no significant administrative or judicial fines and non-monetary sanctions, which are not currently under appeal, for failure to comply with laws and regulations in 2017.

Climate Goals & Targets

Environmental Challenges

• In 2017, revenue decreased as a result of reduced sales volume and lower realized prices. Employee wages and benefits were also down as a result of a reduced workforce and lower severance payments. Finally, payments to government were down as a result of tax recoveries in the U.S. relating to NUKEM Inc. and lower tax requirements overall due to reduced profits.
• While our overall local employment numbers decreased once again in 2017 in northern Saskatchewan as a result of corporate wide staffing reductions, we continue to see more than 50% of our workforce hired from the region.
• 2017 saw a decrease in the total value of donations Cameco provided to the communities where we operate due to lower revenues. As a result, infrastructure related investments were also down.
• While Cameco is a significant economic contributor, both directly through salaries, wages, and local procurement, and indirectly through secondary employment and secondary economic activity, this has been impacted in recent years due to changes in our operations and support functions.
• While our overall local procurement spend was down in 2017 due to a lower capital spend throughout the company as a result of a difficult uranium market, the proportion of spend that went to local contractors remained consistent with previous years.
• The total energy consumed by Cameco in 2017 was lower as compared with previous years as a result of reduced activity and production at some operations.
• In 2017, the volume of water withdrawal was lower as compared with historical values. This is associated with a lower volume of cooling water intake from the Port Hope Conversion Facility as well as a lower quantity of water intake from Rabbit Lake, which remained in a safe non-producing state.
• The amount of tailings and process wastes we produce depends primarily on production rates and ore grades. When we expand production our tailings and waste generally increase. This is also the case when ore grades are low since we must process more rock to obtain the same amount of uranium.
• 2017 saw our overall turnover rate decline slightly over 2016, but it was still well above our historical average due to continued poor market conditions which resulted in additional workforce reductions.

Mitigation Strategies

• Improving operational efficiency is part of our strategy to effectively manage costs and remain competitive through these low times, while positioning the company and our stakeholders to benefit as the market improves.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Tailings Management
• Relationships with Indigenous Peoples and Local Communities
• Diversity and Inclusion
• Occupational Safety and Health
• Corporate Governance
• Business Ethics and Integrity
• Responsible Supply Chain
• Cybersecurity
• Tax Transparency

Environmental Achievements

• Achieved best ever safety performance as measured by Total Recordable Injury Rate (TRIR) with zero lost-time injuries.
• Community Based Environmental Monitoring Program (CBEMP) awarded the Towards Sustainable Mining® Community Engagement Excellence Award by the Mining Association of Canada.
• Port Hope conversion facility saved approximately 2,000 MWh of electricity annually since 2013.

Social Achievements

• Established a $1 million COVID-19 Relief Fund benefiting 67 projects in Saskatchewan and a $250,000 fund for Ontario communities.
• Achieved 83% public support in Saskatchewan and gold certification under the Progressive Aboriginal Relations program.
• 51% of employees in Northern Saskatchewan are Residents of Saskatchewan’s North.

Governance Achievements

• Ranked 31st out of 211 companies in the Globe and Mail’s Board Games 2020 for board diversity.
• 100% of new employees completed the Code of Conduct and Ethics orientation course.
• Litigation with Canada Revenue Agency fully resolved in Cameco's favor.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions.
• Climate change impacts on operations (extreme weather, wildfires).
• Regulatory risks related to GHG pricing and regulation.
• Green taxonomies potentially excluding nuclear energy.
• Technology risks from disruptive lower-emission technologies.
• Reputational risks from insufficient transparency on climate issues.

Mitigation Strategies

• Proactive suspension of production at several operations and introduction of additional safety protocols.
• Flood analysis and barrier construction at Port Hope Conversion Facility.
• Improved energy management and initiatives to reduce energy consumption.
• Advocating for nuclear energy's inclusion in green financing.
• Digital transition initiative to improve operational efficiencies.
• Improved emissions data compilation and internal reporting.

Supply Chain Management

Supplier Audits: Third-party audits of critical suppliers every three years on average; drum supplier audits every five years; transportation provider audits every two years.

Responsible Procurement

• Supplier Code of Conduct and Ethics.
• Northern Preferred Supplier Program (Saskatchewan).

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires

Transition Risks

• GHG regulation and pricing
• Green taxonomies
• Technology risks
• Reputational risks

Opportunities

• Rising demand for electricity
• Increased uptake of net-zero goals
• Support for nuclear energy
• Need for life extension of aging nuclear reactors
• Support for small modular reactors (SMRs)

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Awards & Recognition

• Towards Sustainable Mining® Community Engagement Excellence Award
• Towards Sustainable Mining® Excellence Awards

Environmental Metrics

ESG Focus Areas

• Air quality
• Climate-related physical risks
• Decommissioning/closure
• GHG emissions and energy use
• Tailings management
• Transition to a low-carbon economy
• Waste
• Water
• Inclusion and diversity
• Occupational safety and health
• Product and transportation safety
• Public safety
• Relationships with Indigenous Peoples and local communities
• Business ethics and integrity
• Corporate governance
• Cybersecurity
• Tax transparency

Environmental Achievements

• Achieved a 1,190 MWh reduction in electricity use annually through energy efficiency efforts.
• Incurred zero significant environmental incidents or environmental fines.

Social Achievements

• Achieved the best safety performance in company history, with the lowest TRIR.
• Developed and delivered 15 online courses focused on building digital skills in northern Saskatchewan communities, with ~200 individuals enrolled.
• More than 90% of employees participated in virtual culture workshops.

Governance Achievements

• Established an inclusion and diversity committee.
• 100% of all employees completed the Code of Conduct and Ethics refresher course.
• 100% of all employees completed the information security course.
• Completed an internal audit of Microsoft Office 365 Security Configuration.

Climate Goals & Targets

Environmental Challenges

• Extreme wildfire season in Saskatchewan.
• COVID-19 pandemic impacting operations.
• Increased operating costs due to GHG pricing and regulations.
• Potential exclusion from green taxonomies.
• Technology risks related to disruptive lower emissions technologies.
• Reputational risks related to climate change.
• Cybersecurity threats.

Mitigation Strategies

• Strong safety and emergency preparedness practices minimized wildfire disruption.
• Implemented additional safety protocols to protect workforce during the pandemic.
• Improved energy management and projects to reduce energy consumption.
• Advocating for nuclear energy's inclusion in green financing.
• Digital transition initiative to improve operational efficiencies.
• Improved emissions data compilation and internal reporting.
• Comprehensive cybersecurity program aligned with NIST and CIS frameworks.

Supply Chain Management

Supplier Audits: Third-party audits of critical suppliers every three years on average; quality audits of drum manufacturers every five years; audits of transportation providers every two years.

Responsible Procurement

• Supplier Code of Conduct and Ethics; preference for local suppliers; Preferred Northern Contractors (PNCs) in northern Saskatchewan.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires
• Chronic changes in weather patterns

Transition Risks

• GHG regulation and pricing
• Green taxonomies
• Technology risks
• Reputational risks

Opportunities

• Rising demand for electricity
• Increased uptake of net-zero goals
• Uranium as an important mineral for energy transition
• Renewed commitment to nuclear energy
• Need for life extension of aging nuclear reactors
• Support for small modular reactors

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 18th out of 222 companies in the Globe and Mail’s Board Games 2021.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Indigenous Relations
• Safety
• Community Investment

Environmental Achievements

• Established a target to achieve a 30% absolute reduction in total Scope 1 and 2 GHG emissions levels by 2030, using 2015 as a baseline.

Social Achievements

• Supported 20 northern students with the Cameco Northern Saskatchewan Scholarship.
• Held its fourth annual Step Up for Mental Health run/walk event, raising over $1.9 million.
• Expanded training courses for Residents of Saskatchewan’s North (RSN) and introduced a work experience program for them in Cameco’s northern Saskatchewan operations.
• Achieved a year-end workforce representation of 15.3% women and 50.9% Indigenous peoples at its northern Saskatchewan operations.

Governance Achievements

• Underwent an independent, third-party effectiveness assessment in 2022, focusing on succession planning.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical events (e.g., unrest in Kazakhstan, Russian invasion of Ukraine)
• Climate-related risks (impacts not specified)
• Managing climate-related risks and decarbonizing operations.

Mitigation Strategies

• Developed a low-carbon transition strategy with actionable steps to decarbonize operations and manage climate-related risks.
• Established a target for 30% absolute reduction in Scope 1 and 2 emissions by 2030.
• Adjusted production plans to meet increased demand and address supply chain concerns.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD

Environmental Metrics

ESG Focus Areas

• Climate
• Environment
• Social
• Governance

Environmental Achievements

• 16% reduction in water withdrawals compared to 2022
• Completed tailored decarbonization pathways for all operationally controlled sites
• Achieved Level A for all tailings facilities in all indicators of the Mining Association of Canada’s Towards Sustainable Mining Tailings Management Protocol

Social Achievements

• 50% of workforce at northern Saskatchewan operations were Indigenous
• 74% of services at northern Saskatchewan operations procured from northern-owned local businesses
• Provided 18 three-month paid work experience placements for Indigenous individuals (13 women)

Governance Achievements

• 100% of employees completed Code of Conduct and Ethics e-learning course
• 100% of employees completed the information security course
• Completed one internal audit on a cybersecurity-related topic

Climate Goals & Targets

Environmental Challenges

• Missed total recordable injury rate safety target for a second year in a row (TRIR was 2.30)
• Nearly half of all injuries related to sprains and strains
• Less experienced workforce due to extensive recruitment and favorable economic conditions

Mitigation Strategies

• Hired expert to conduct 100 ergonomic assessments
• Required supervisors to perform job task observations (over 4,600 completed)
• Developed safety improvement plan focused on training and coaching for supervisors and a safety campaign for 2024

Supply Chain Management

Supplier Audits: Every 1-3 years for critical suppliers (e.g., hydrogen fluoride, drum manufacturers, transportation providers)

Responsible Procurement

• ISNetworld for contractor screening
• CSA N299 standard for fuel services suppliers
• Supplier Code of Conduct and Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Increased precipitation and heavy rainfall
• Wildfires
• Higher average temperatures, more extreme heat and longer heatwaves

Transition Risks

• More stringent GHG regulations
• Clean electricity regulation
• Trade-offs between increasing production and meeting GHG reduction targets
• Investor and society expectations around climate
• Pace of development and access to technology

Opportunities

• Rising demand for electricity
• Increasing uranium production
• Expanding reach in the nuclear fuel cycle
• Participation in SMR growth
• Advocating for nuclear power
• Supporting electrification
• Increased uptake of net-zero goals
• Uranium considered a critical mineral
• Clean electricity regulation
• Emerging interest in mineral reuse and recycling

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP (PwC) - Limited assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• YWCA Saskatoon’s Women of Distinction award (Daley McIntyre)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Environmental management system certified to ISO 14001 and ISO 45001; quality management system certified to ISO 9001.
• BTP at MPP anticipated to be completed by end of 2024 to mitigate waste exceedances.

Social Achievements

• JV Inkai finances projects and provides goods and services to support the Suzak district’s social infrastructure.
• JV Inkai finances training and development of Kazakhstan personnel; RUC imposes local content requirements on JV Inkai with respect to employees, goods, works and services.

Governance Achievements

• Implementation Agreement (2017) restructured JV Inkai, increasing annual production limit and extending RUC term.

Climate Goals & Targets

Environmental Challenges

• Procurement challenges for sulphuric acid used in ISR process.
• Issues related to availability of adequate construction services, leading to delays in expansion projects.
• Potential challenges in procuring sufficient drilling services to meet Ramp-up production targets.
• Geopolitical situation causing transportation risks in the region, impacting product delivery timing.

Mitigation Strategies

• KAP actively pursuing alternative sources of sulphuric acid.
• JV Inkai investigating opportunities for continual improvement related to optimization of operating costs.
• Discussions ongoing between Cameco and Kazatomprom regarding additional supplemental agreements to address delays.

Supply Chain Management

Responsible Procurement

• RUC imposes local content requirements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CIM Definition Standards, GKZ System, KAZRC Code

Certifications: ISO 14001, ISO 45001, ISO 9001