Climate Change Data

First Majestic Silver Corp.

Climate Impact & Sustainability Data (2019, 2021, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:74,628 tCO2e (Scope 1) + 46,118 tCO2e (Scope 2)
Scope 1 Emissions:74,628 tCO2e
Scope 2 Emissions:46,118 tCO2e
Renewable Energy Share:13% (Hydropower)
Total Energy Consumption:1,534,961 GJ
Water Consumption:1,638,178 m³
Waste Generated:See Key Performance Data, Page 48
Carbon Intensity:0.036 tonnes of CO2eq per tonne of ore processed

ESG Focus Areas

  • Health and Safety
  • Local Communities
  • Environment
  • Governance
  • Human Rights
  • Stakeholder Engagement

Environmental Achievements

  • Recycled over 80% of water used through dry-stack tailings technology
  • 105,730 native plant species planted through reforestation initiatives
  • Progressive reclamation of 2.8 hectares of dry-stack TSF at Santa Elena
  • Reclamation of over 4.6 hectares of decommissioned Cupias tailings storage facility at San Dimas

Social Achievements

  • US$3.8M invested in local community health, infrastructure, access to water and youth programs
  • Over 25,600 medical consultations provided in local communities
  • Total Recordable Incident Frequency Rate improved by 18% over 2018
  • Safety Fairs attracted over 5,000 people from surrounding communities
  • Implementation of Visible Felt Leadership program fostering positive leadership in health and safety

Governance Achievements

  • No confirmed incidents of bribery, fraud or corruption in 2019
  • Formal training on Anti-bribery, Fraud and Corruption Policy begun in 2019
  • Robust Enterprise Risk Management (ERM) Program implemented

Climate Goals & Targets

Medium-term Goals:
  • Complete conversion to LNG at Santa Elena by early 2021
Short-term Goals:
  • Zero fatalities and an additional 20% reduction in reportable injuries in 2020

Environmental Challenges

  • Insecurity in the area and safety concerns for workforce at San Martin mine leading to temporary suspension
  • Operational changes at La Parrilla mine resulting in employee reduction to reduce operating expenses
  • Water stress in operating regions
  • Tailings management risks
Mitigation Strategies
  • Proactive dialogue with local communities and local government to support transition at San Martin and La Parrilla
  • Adoption of dry-stack tailings technology to recover over 80% of water used
  • Regular groundwater testing and monitoring
  • Independent third-party reviews and dam safety inspections of tailings storage facilities

Supply Chain Management

Responsible Procurement
  • Code of Ethical Conduct for all suppliers
  • Prioritizing local procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Water security and drought
Opportunities
  • Improving energy efficiency and switching to low-carbon fuels

Reporting Standards

Frameworks Used: GRI Standards G4 Mining and Metals Sector Disclosures

Certifications: Clean Industry Certification (Industria Limpia) at San Dimas and Del Toro mines

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 13 (Climate Action)

Community investments, water management, energy efficiency, and reclamation initiatives contribute to these goals

Awards & Recognition

  • CSR Business Distinction Award (Distintivo ESR) at San Dimas, La Parrilla, and Santa Elena mines

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:84,217 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:62 kilotonnes/year
Scope 2 Emissions:22.3 kilotonnes/year
Renewable Energy Share:40% (LNG)
Total Energy Consumption:1,395,072 GJ/year
Water Consumption:1,699,259 m3/year
Waste Generated:2.8 million tons/year (tailings)
Carbon Intensity:0.03 tonnes of CO2eq per tonne processed (2021)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced total GHG emissions by 17%
  • Reduced GHG emissions intensity by 10%
  • 100% water recycling rate at processing plants
  • Zero environmental incidents related to mine tailings
  • Transitioned Santa Elena mine from diesel to LNG, significantly reducing GHG emissions

Social Achievements

  • Implemented a new Equity, Diversity, and Inclusion (EDI) policy
  • Established an EDI working group
  • Invested in workplace and community initiatives
  • Total community investments in Mexico increased by 36.4% to $3 million
  • Improved safety performance: Total Recordable Incident Frequency Rate (TRIFR) reduced to 0.93, Lost Time Injury Frequency Rate (LTIFR) reduced to 0.23

Governance Achievements

  • 43% of directors on the board were women
  • 100% of managers completed annual ethics training
  • Established an Environmental, Social, Health & Safety (ESHS) committee (to be active in 2022)

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (implied)
Medium-term Goals:
  • Achieve 30% renewable energy by 2030 (implied)
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Legacy sustainability challenges at Jerritt Canyon mine (air quality, water quality, tailings management)
  • Climate change risks (extreme weather, supply chain disruptions)
  • Social conflicts
  • Public health crises
  • Labor shortages
Mitigation Strategies
  • Undertaking studies to evaluate dry-stacked tailings (DST) at Jerritt Canyon
  • Implementing plans to reduce carbon emissions at Jerritt Canyon
  • Improving safety indicators at Jerritt Canyon
  • Increasing the percentage of women at Jerritt Canyon
  • Proactive engagement with communities to address concerns
  • Robust Enterprise Risk Management (ERM) Program

Supply Chain Management

Supplier Audits: 100% of service providers screened on ESG criteria

Responsible Procurement
  • Code of Ethical Conduct
  • Purchasing Policy
  • Prioritizing local procurement (95% of spending on Mexican businesses)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Drought
  • Flooding
Transition Risks
  • Increasing regulations
  • Carbon taxes
Opportunities
  • Growing demand for silver in low-carbon technologies

Reporting Standards

Frameworks Used: GRI Standards (Core), SASB

Certifications: ISO 14001 (EMS consistent with), ISO 31000 (ERM consistent with)

UN Sustainable Development Goals

  • SDG 5 (Gender Equality)
  • SDG 6 (Clean Water and Sanitation)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 13 (Climate Action)
  • SDG 17 (Partnerships for the Goals)

Initiatives contribute to these goals through various programs and activities

Awards & Recognition

  • 2022 Socially Responsible Business Distinction Award (Empresa Socialmente Responsable Award) for three Mexican mines

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Biodiversity & Land Use
  • Carbon & Climate
  • Communities
  • Health & Safety
  • Our People
  • Supply Chain
  • Tailings
  • Water

Environmental Achievements

  • 42% annual reduction in Scope 1 emissions
  • 33% annual reduction in Scope 2 emissions
  • 35% annual reduction in diesel use
  • 38% reduction in total Scope 1+2 emissions
  • 43% annual reduction in the carbon footprint per tonne of ore processed
  • 46% reduction in annual energy use per tonne of ore processed
  • 71% annual reduction in waste rock generated

Social Achievements

  • 51% reduction in Lost Time Injuries since 2022
  • 32% reduction in Reportable Injuries since 2022
  • 17% of young employees are women (up from 5% in 2020)
  • 22% of new hires are women
  • Community support and investment projects directly benefitted nearly 11,000 people, and are available to over 48,000 residents
  • Over $1.2 Million USD invested in community programs and projects

Governance Achievements

  • Improved Sustainalytics performance to 31.0, placing us in the top 38% of the mining industry
  • Score of 31 in S&P Global's 2023 Corporate Sustainability Assessment (above industry average)

Climate Goals & Targets

Long-term Goals:
  • Regularly achieve 0.04 tCO2e/tonne ore carbon footprint by 2035 (20% reduction)
Medium-term Goals:
  • Achieve 0.50 m3/tonne ore water intensity by 2030 (33% reduction)

Environmental Challenges

  • Climate change risks including severe weather events such as storms and droughts
  • Geopolitical changes
  • Social conflicts
  • Public health crises
  • Ongoing health and safety performance
  • Labour shortages
  • Union relationships
  • Security issues such as theft, fraud, and organized crime activity
  • Changes in sea levels affecting ocean transportation
  • Extreme weather events disrupting mining operations
  • Disruptions to supply lines
  • Increasing regulations in response to climate change
  • Temporary reduction in water availability at La Encantada
Mitigation Strategies
  • Robust Enterprise Risk Management (“ERM”) Program
  • Online risk management platform for Mexican mines
  • Converting to Liquified Natural Gas (“LNG”) at La Encantada and Santa Elena
  • Implementing efficiencies in processing and recovery operations
  • Assessing climate change impacts to avoid or mitigate adverse effects
  • Actively drilling to secure additional wellheads at La Encantada
  • Improving water recycling levels from processing
  • Implementing stringent security measures
  • Proactive engagement with local stakeholders

Supply Chain Management

Supplier Audits: Over 300 in 2023

Responsible Procurement
  • Preferential procurement from local suppliers
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Droughts
  • Changes in sea levels
  • Disruptions to supply lines
Transition Risks
  • Increasing regulations
Opportunities
  • Growing demand for precious metals in low-carbon technologies

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Awards & Recognition

  • 2023 Socially Responsible Business Distinction Award (Empresa Socialmente Responsable Award) at San Dimas, Santa Elena, and La Encantada mines