Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Environmental Stewardship
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Zero recordable health and safety incidents.
• Phase 1 greenhouse gas (GHG) emissions are low compared with other emission intensities reported or derived from lithium hydroxide production facilities.
• Green hydrogen manufacture is being fast-tracked, which could lead to integrated Phase 1 Scope 1 and 2 emissions falling by 60% to best-in-class performance of c. 3.0tCO2-e/t LCE.
• Water use for the vertically-integrated project lithium hydroxide production is estimated at just 33m3/t LCE, with 85% of water designed to be recycled for the Namibian operations.
• Land use footprint in Namibia maximises use of previously disturbed mining areas. The UAE plant occupies just 5.7 hectares.

Social Achievements

• Over 800 direct and indirect jobs are planned to be created in the Karibib district for the Phase 1 operations.
• Community initiatives: a business registration and entrepreneurship workshop for women and youth was held in Otjimbingwe, Namibia; and fire and water trailers were acquired to service the Karibib site and local farmer community.
• Supported the Tukwafela Sewing project with an Industrial Sewing Machine and Materials.

Governance Achievements

• Lepidico scores in the top 5% of all ASX listed companies in gender equality ratings by “Ellect”.
• Lepidico complies with all ASX Principles of Good Corporate Governance and Best Practice Recommendations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 related impacts causing delays in pilot plant trials and FEED completion.
• Securing permits and approvals.
• Arranging a full project funding package.
• Scrub fires remain a significant risk during dry seasons.

Mitigation Strategies

• Incorporated process design improvements based on pilot plant trials and optimized procurement.
• All permits in place for Karibib.
• Binding offtake agreement signed with Traxys.
• Discussions well advanced with debt financiers.
• Revisions to procedures implemented to prevent scrub fire recurrence.

Supply Chain Management

Responsible Procurement

• Optimized procurement based on local UAE sourcing.

Climate-Related Risks & Opportunities

Physical Risks

• Scrub fires

Transition Risks

• Stringent GHG emissions standards.

Opportunities

• Green hydrogen use to reduce emissions.

Reporting Standards

Frameworks Used: GRI Standards (future goal)

Certifications: IRMA (working towards)

Sustainable Products & Innovation

• Lithium hydroxide with low GHG emissions.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Safety
• Community Engagement
• Governance

Environmental Achievements

• Zero reportable environmental incidents maintained since inception
• Water abstraction well below allowable limit
• Establishment of air quality monitoring stations at Karibib operations
• Refinement of water quality monitoring processes

Social Achievements

• Zero health and safety incidents
• AUD 260,420 community investment (including emergency maternity unit, sanitary pads for girls, sports development, urban agriculture training)
• AUD 2,110,548 local procurement (Namibia)

Governance Achievements

• Establishment of the Board Sustainability and Risk Committee
• Implementation of Speeki application for anonymous reporting
• Staff retraining on Corporate Code of Conduct, Anti-Bribery and Corruption Policy, and Whistle-blower Protection Policy

Climate Goals & Targets

Environmental Challenges

• Securing finance for Phase 1 project transition to construction
• Developing a comprehensive sustainability strategy and climate change roadmap

Mitigation Strategies

• Development of Sustainability Strategy, including climate change roadmap
• Completion of materiality assessment and climate risk assessments
• Completion of Human Rights Review
• Setting up standards for Sustainability Integrated Management System

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste
• Employee Health and Safety
• Diversity, Equity & Inclusion
• Human Rights
• Community Development
• Economic Return
• Technology
• Research and Development
• Sustainability Excellence
• Corporate Governance
• Stakeholder Engagement

Environmental Achievements

• Developed a decarbonisation strategy with targets for Scope 1 and 2 emissions.
• Used 8 MWh of energy.
• Used 10,010 Ml of water.
• Generated 1,830 tonnes of non-hazardous waste.
• Successfully trialled using gypsum-rich residue as a construction material.

Social Achievements

• Maintained a strong health and safety record with zero fatalities and injuries.
• Invested AUD 27,200 in community development.
• Spent AUD 929,004 on local suppliers.
• Opened a new maternity unit in Otjimbingwe, Namibia.

Governance Achievements

• Published its inaugural sustainability report.
• Developed and implemented a human rights due diligence process.
• Implemented an anti-bribery and anti-corruption policy.
• Implemented a whistleblower policy.

Climate Goals & Targets

Environmental Challenges

• Market volatility in the lithium market.
• Increased scrutiny on sustainable practices within the renewable energy value chain.
• Potential physical climate risks (extreme heat, wildfires, water stress, sea-level rise, coastal flooding).
• Potential transition risks (increased investor pressure to decarbonize, increased insurance costs, carbon pricing, social pressure to decarbonize).

Mitigation Strategies

• Developing a decarbonisation strategy.
• Implementing water stewardship practices.
• Developing a waste management plan.
• Implementing a climate risk assessment and mitigation plan.
• Engaging with stakeholders to address concerns.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Wildfires
• Water stress
• Sea level rise
• Coastal flooding

Transition Risks

• Increased investor pressure to decarbonize
• Increased insurance costs
• Carbon pricing
• Social pressure to decarbonize

Opportunities

• Demonstrating low carbon footprint of products.
• Reducing carbon footprint through decarbonisation strategy.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, TCFD, ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 13
• SDG 6
• SDG 7
• SDG 12
• SDG 15
• SDG 8
• SDG 9
• SDG 3
• SDG 5
• SDG 10
• SDG 4
• SDG 11

Lepidico's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• L-Max® and LOH-Max® process technologies

Awards & Recognition

• Not disclosed