Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Socio-economic
• Permitting

Environmental Achievements

• Computer models were used to predict the quality of waters that would flow from the mining, processing and co-disposal areas. Activities in these areas, site water drainage and the filling of the open pit with water after closure were considered in the assessment of site water quality predictions.
• An Environmental Impact Statement (EIS) was prepared to summarize the costs and benefits of the SMPP, including potential impacts and mitigation measures. Based on the work completed, no significant long-term negative environmental impacts are anticipated to result from the construction, operation or closure of the SMPP.
• In February 2014, the Saskatchewan Minister of Environment issued a decision approving the construction and operation of the SMPP.

Social Achievements

• Employment and small business opportunities will be offered preferentially to Tłįchọ and Aboriginal personnel, wherever possible.
• The NICO Project will increase the amount of money in the area through additional wages and business activities, with secondary benefits such as improved roads and spending.
• Improved roads in the area will give residents better access to services and goods that previously were difficult to obtain.

Governance Achievements

• In January, 2013, Fortune received a recommendation for approval of the environmental impact assessment for the NICO Project from the Mackenzie Valley Environmental Assessment Review Board.
• Fortune reports that it has also received approval for the Project to proceed from the federal minister of Aboriginal Affairs and Northern Development and from the Tłįcho aboriginal government.
• Fortune is now in the process of securing its Class A Water Licence and Land Use Permit, as well as the other more minor permits required to construct the mine, processing plant and associated infrastructure.

Climate Goals & Targets

Environmental Challenges

• Caribou and water quality have been identified as the most important community concerns related to the environment.
• Traffic associated with the proposed all-season Project access road could affect the behaviour and movement of wildlife, including caribou.
• Metal concentrations in surface waters resulting from mine dust settling and runoff were identified as potentially resulting in water quality guideline exceedences in some small lakes and ponds immediately adjacent to the area of the mine and processing plant.

Mitigation Strategies

• The CDF will be contained by a perimeter dyke comprising a prism of mine rock at least 25 metres thick.
• Five seepage collection ponds (SCP) will be constructed downstream of the CDF at topographically low areas, to intercept any tailings water that may seep through the perimeter dyke.
• The permanent cover system will be designed to prevent erosion and potential transport of tailings solids, to reduce infiltration and to prevent contact between tailings and surface runoff.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CIM

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Governance

Environmental Achievements

• During the Reporting Period, the carbon dioxide emissions (comparable prices) per output value of RMB 10,000 (operating income) of the Company’s domestic enterprises decreased by 8.97% year on year.
• All pollution prevention and control facilities of each key enterprise were all running normally and steadily, and the production was running in an orderly and well-managed manner, effectively ensuring that the emission standards were met.

Social Achievements

• MCC Real Estate ranked 36th among the Top 100 Real Estate Developers in China with its brand value jumping to RMB 30.6 billion and has been ranked among the Top 10 in Profitability and Stability of Top 100 Real Estate Developers in China for seven consecutive years, and has also been awarded the “Annual Social Responsibility Enterprises of Property Services in China”, “Outstanding Real Estate Product Capability Enterprise in China”, “Real Estate Operation Outstanding Enterprise with Chinese Characteristic – Urban Development Operator”, and “China Real Estate Annual Poverty Alleviation Benchmark Enterprise”.
• The Company allocated RMB 7,980,000 of assistance funds to designated targets of poverty alleviation, and completed consumption assistance of RMB 20,303,400.

Governance Achievements

• The Board was awarded the “Golden Round-table • Award for Special Contribution to Corporate Governance”; the Company was awarded 2022 China Top 100 Forum “Top 100 Enterprise Award”, China “Golden Redbud” Best Listed Company, and was selected in the first Forbes China ESG50 list, the “Excellent ESG Practice Cases of Listed Companies”, the “Best Practice for 2021 Annual Report Presentation” by China Listed Companies Association, and Xinhua Credit “Jinlan Cup” ESG Corporate Governance Practice Pioneer Case.
• The Company was once again rated Class A (the top class) Listed Company for SSE Information Disclosure for six consecutive years.

Climate Goals & Targets

Environmental Challenges

• The international political and economic situation was complex.
• The three-fold pressure from “contracting demand, supply shocks and weak expectations” has posed increasing impact on the economic operation and slowed down the economic recovery.
• The real estate market faced serious challenges due to the crises of suspension of projects and broken capital chains of many real estate companies.
• The downward pressure on the global economy continues to mount with increasing risk of recession and sharply increasing geopolitical tensions, reshaping the industrial chain and supply chain pattern becomes the theme.

Mitigation Strategies

• The Company takes the four major business segments as the breakthrough point, collects information on, tracks and analyzes macro-economic and industrial policies in a timely manner, accurately and deeply grasps the spirit of the policy documents, and improves judgment and accuracy of future trends.
• The Company will prudently evaluate macroeconomic and policy risks, identify, analyze and evaluate possible significant risks in its areas of responsibility in combination with changes in the internal and external environment, make appropriate adjustments to its business strategies, fully utilize and explore positive development conditions, and ensure stable development of the Company.
• The Company will further accelerate the transformation from a “property developer” to a “city operator” and from focusing on “commodity attributes” to highlighting “livelihood attributes”.
• The Company paid close attention to policy directions and market changes, strengthened dual control of financing, enhanced coordination and operation, continued to optimize its financing structure, attracted low-cost capital, and improved the efficiency of capital utilization.

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Golden Round-table • Award for Special Contribution to Corporate Governance”, 2022 China Top 100 Forum “Top 100 Enterprise Award”, China “Golden Redbud” Best Listed Company, Forbes China ESG50 list, “Excellent ESG Practice Cases of Listed Companies”, “Best Practice for 2021 Annual Report Presentation”, Xinhua Credit “Jinlan Cup” ESG Corporate Governance Practice Pioneer Case

Environmental Metrics

ESG Focus Areas

• Climate Action
• Land Regeneration
• Biodiversity Protection
• Inclusion & Diversity
• Health & Well-being
• Education & Training
• Workers’ Rights
• Environmental Impact Management
• Local Economic Development
• Human Rights
• Corporate Governance
• Transparency
• Traceability

Environmental Achievements

• Grid extended to Maninge Nice pit and Sierra camp at MRM, reducing diesel reliance. New solar-powered lighting plants commissioned at MRM. MRM achieved a 280% increase in rehabilitated land (3.8 hectares). Kagem increased trees planted by 10,000 to 17,500, revegetated 5.5 hectares of waste dumps. MRM completed a water conservation project capturing 544.5 megalitres of water.
• Kagem became the first company in Africa to be certified to the ESG Clarity platform.

Social Achievements

• MRM completed a 31-week mental health outreach program with 5,114 calls made to staff. Kagem built a new gym and sports courts. Both mines increased the proportion of host country nationals in management positions. MRM saw a 26% increase in women employed, Kagem a 48% increase. Kagem launched the Lumpuma Multi-Purpose Co-operative Society. MRM's VTC trained 210 people (including 24 women) in various vocational skills. Kagem signed an MOU for the Chapula Vocational Training Centre.
• MRM and Kagem established functioning Operational Grievance Mechanisms (OGMs) compliant with UNGPs.

Governance Achievements

• Comprehensive review and consolidation of the Group Policy Manual completed. Enhanced internal process for auditing potential non-conformances with Group policies established. Gemfields became a full member of the Voluntary Principles Initiative (VPI).

Climate Goals & Targets

Environmental Challenges

• Lower production of premium emeralds and rubies at Kagem and MRM. Insurgency in northern Mozambique. Illegal mining activity at both Kagem and MRM. Weaker luxury market impacting Fabergé sales. Inflationary pressures increasing costs.
• Termination of exploration license in Ethiopia (later reinstated).

Mitigation Strategies

• Withdrawal of November 2023 higher-quality emerald auction at Kagem. Increased security measures at MRM. Engagement with Mozambican authorities and local communities to address illegal mining. Cost optimization measures implemented. Construction of a second processing plant at MRM to increase capacity. Continued exploration and development of other assets.

Supply Chain Management

Responsible Procurement

• Data collection from a limited selection of suppliers in 2023, with plans to expand in 2024.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Unseasonal rainfall
• High humidity and heat
• Water scarcity

Transition Risks

• Increased energy costs
• Regulatory changes

Opportunities

• Reduced rainfall simplifying mining operations (if water scarcity is mitigated).

Reporting Standards

Frameworks Used: TCFD, King IV, IFRS, GRI, UNGPs, VPSHR

Certifications: ISO 14001:2015 (Kagem), ISO 45001:2018 (Kagem), ISO 9001:2015 (Kagem), ESG Clarity (Kagem), Responsible Jewellery Council (Fabergé)

Awards & Recognition

• ESG Clarity certification (Kagem)

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Safety
• Community engagement
• Water & Resources
• Risk & Compliance
• Health, Safety & Wellbeing
• Employment Attraction & Retention

Environmental Achievements

• Improved water security
• Improved waste management
• Minimising environmental footprint through resource efficiency
• Implementation of TOMRA XRT Ore Sorting, reducing energy consumption and greenhouse gas emissions

Social Achievements

• Launched employee well-being programs
• Improved employee retention
• Increased local employment
• Community investment initiatives
• Partnership with JCU to bring on PhD students
• Ongoing sponsorship and donations to local state schools

Governance Achievements

• Regular reviews of ESG related Governance policies
• Implementation of Modern Slavery Statement, Whistleblower Policy, Human Rights Policy, Diversity & Inclusion Policy, Anti-Bribery & Corruption Policy, Grievance Process Policy, and Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Integration of Saloro into operations
• Recruitment challenges
• Adverse weather conditions (Tropical Cyclone Jasper)
• Supply chain disruptions
• Global uncertainty and events (e.g., COVID-19 pandemic)
• Tungsten market volatility

Mitigation Strategies

• Debottlenecking program at Saloro
• Cost-plus basis for contractors initially, transitioning to owner-operator model
• Proactive measures and quick actions to minimize cyclone-related downtime
• Developed alternative sourcing strategies
• Implementation of robust environmental and safety practices
• Strong balance sheet and strategic partnerships

Supply Chain Management

Responsible Procurement

• Prioritising local suppliers (58% of spending in Queensland)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding)

Reporting Standards

Frameworks Used: ICMM, GRI, UN SDGs, Australian Climate Related Financial Disclosures, TCFD

Certifications: ISO 14001 (Saloro), ISO 45001 (Saloro)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Green aggregates

Awards & Recognition

• Finalist in Project Controls Expo Sustainability project of the year