Climate Change Data

Environmental Metrics

ESG Focus Areas

• Our People
• Business Integrity
• Environment
• Responsible Supply Chain

Environmental Achievements

• Zero spills across our marine fleet operations
• Achieved carbon neutrality in all Noble offices worldwide and printed publications since the inception of the Carbon Neutral Project, offsetting more than 1,257,000 tonnes of carbon emissions.
• Scope 1 and 2 GHG emissions decreased by 0.5 million tonnes CO2e

Social Achievements

• Zero fatalities and a reduction in lost time injury frequency rate and total recordable case frequency rate from April-December 2017.
• 77% of new hires were local hires.
• No credible complaints of discrimination reported.

Governance Achievements

• No breaches or non-compliance of applicable laws or regulatory requirements.
• About 67% of employees attended compliance training.
• 8 audits were conducted across Noble Group operations.

Climate Goals & Targets

Environmental Challenges

• Business repositioning and debt restructuring.
• Transition changed the business mix and carbon intensity baseline, making previous targets no longer applicable.
• Data gaps in safety reporting during the second quarter due to new procedures.

Mitigation Strategies

• Regular communication with employees through emails, intranet updates, and town hall meetings.
• Implemented a Group level health and safety policy to consolidate information and streamline reporting.
• Addressed data gaps in safety reporting from the third quarter onward.

Supply Chain Management

Supplier Audits: 8 audits conducted across Noble Group operations in 2017

Responsible Procurement

• Comprehensive due diligence to ensure compliance with economic sanctions laws.
• Conflict Minerals Policy and due diligence framework for minerals traded from the Democratic Republic of Congo and adjoining countries.
• Partnership with market-leading raw materials producers with a strong focus on supply chain integrity and sustainable sourcing.

Climate-Related Risks & Opportunities

Opportunities

• Supply of LNG to meet rising energy demand.
• Alternative fuel development and diffusion of environmentally friendly technologies.

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14064 (GHG emissions)

Third-party Assurance: Ernst & Young (limited assurance)

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 10: Reduced Inequalities

Initiatives supporting education, sustainable energy, and reducing inequality through infrastructure investment and social renewal projects.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved carbon neutrality in all Noble offices worldwide and printed publications in 2019.
• Zero spills overboard in 2019.
• All Noble’s owned ships switched to low sulphur fuel well before the implementation of the International Maritime Organisation’s 2020 rule.

Social Achievements

• Invested over US$540,000 in global outreach and community projects.
• Zero fatal occupational accidents in 2019.
• Launched a flexible benefits programme in Hong Kong in early 2020 (similar to one already in place in Singapore).

Governance Achievements

• Joined the United Nations Global Compact.
• Appointed several new high-calibre board members to strengthen Noble’s commitment to corporate governance.
• Completed 3 audits across the Group and commenced two other audits in 2019.

Climate Goals & Targets

Environmental Challenges

• Increase in employee turnover in 2019, partly due to company repositioning and protests in Hong Kong.
• Managing changes in workforce population during company restructuring.

Mitigation Strategies

• Managed workforce changes with professionalism and open dialogue.
• Cemented the wellbeing of employees through safe workplaces and a culture of good health.

Supply Chain Management

Responsible Procurement

• Conflict Minerals Policy and due diligence framework aligned with Responsible Minerals Initiative and OECD Due Diligence Guidance.
• Responsible Supplier Declaration (pilot in technology metals, planned rollout across Noble).

Climate-Related Risks & Opportunities

Opportunities

• Investment in technology metals and rare earth magnet recycling.
• Supplying cleaner fuel blends and rare earth metals crucial to renewable technologies.

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14064 (Greenhouse gas emissions figures)

Third-party Assurance: Ernst & Young

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Ethical Behaviour
• Good Governance
• Climate Change
• Occupational Health and Safety
• Greenhouse Gas Emissions
• Product Quality
• Human Rights
• Community Relations
• Supply Chain Management
• Business Ethics
• Board Composition
• Systemic Risk Management
• Disaster Management and Recovery
• Employee Engagement and Diversity

Environmental Achievements

• Reduced total carbon emissions (scopes 1 and 2) from 1.1 MtCO2e in 2020 to 0.3 MtCO2e in 2021. This decrease was partly due to exiting freight and chartering and a temporary production halt at Jamalco.
• 99% reduction in international travel in 2021 due to the pandemic, leading to a re-evaluation of business travel needs.
• 100% of minerals traded from the Democratic Republic of Congo and adjoining countries complied with qualified traceability program initiatives in both 2020 and 2021.

Social Achievements

• 30 employees in 2020 and 33 employees in 2021 moved to different teams or job functions.
• Invested US$176,000 in 2021 (US$125,000 in 2020) in global outreach and community projects.
• Zero fatal occupational accidents in 2020 and 2021.
• Implemented employee wellness programs promoting physical and mental well-being during the pandemic.
• Provided support to families of a contractor who died of Covid-19 related illness.

Governance Achievements

• Implemented a Whistleblower Protection Policy.
• Completed KYC checks and onboarded 1,469 new counterparties in 2020-2021.
• Maintained a high-quality Board of Directors with deep expertise.

Climate Goals & Targets

Environmental Challenges

• Pandemic disruption to product flow and border restrictions.
• Business repositioning and downsizing leading to challenges in maintaining employee morale.
• Climate change impacts and the need to balance growing energy demand in Asia with decarbonization efforts.
• Major fire at Jamalco's powerhouse halting production.

Mitigation Strategies

• Adapted to the pandemic with remote working and video conferencing.
• Facilitated internal mobility and flexible working to support employee career development.
• Offered retention bonuses to retain key employees.
• Rebuilding a combined-cycle gas-fired powerhouse at Jamalco to reduce GHG emissions and ensure energy security.
• Investing in innovative technologies such as rare earth magnet recycling and carbon capture and storage.

Supply Chain Management

Responsible Procurement

• Responsible Supplier Declaration
• Conflict Minerals Policy aligned with Responsible Minerals Initiative and OECD Guidance
• Collaboration with iTSCi Programme and RCS Global Group

Climate-Related Risks & Opportunities

Opportunities

• Investing in technology metals and rare earth magnet recycling.
• Supplying raw materials for electric vehicles, battery storage, and renewable energy production.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001 (Jamalco and Harbour Energy), ISO 45001 (Jamalco and Harbour Energy), ISO 9001 (Jamalco)

Environmental Metrics

ESG Focus Areas

• Climate action
• Human rights
• Employee engagement
• Diversity and equal opportunity
• Compliance, ethics, and governance
• Responsible supply chain
• Data security
• Community investment

Environmental Achievements

• 29% absolute reduction of Scope 1 and 2 emissions in 2022 compared to 2021
• 90% absolute emission reduction on corporate travel and 86% emission reduction per employee in 2022 compared to 2019
• 100% of unavoidable Scope 1 and 2 carbon emissions from our global offices were offset with 274 verified carbon credits
• Investments in thermal coal assets have decreased by 93% since 2015
• Zero spills overboard from our owned and chartered vessels

Social Achievements

• Improved gender balance in leadership positions and prioritised local personnel in the hiring process
• Enhanced internal communication practices with a new internal company blog
• Conducted 60 due diligence visits in high-risk regions to ensure the integrity of our supply chains
• Invested USD40,000 in community investment and disaster relief initiatives
• Significant decrease in employee turnover from 33% in 2021 to 10% in 2022

Governance Achievements

• Implemented a robust risk framework to improve our risk management culture in monitoring, decision making and reporting
• Launched the Supplier Code of Conduct to Noble Resources’ standards, in the supply chain management and procurement process
• Reviewed approach to ESG issues and assessed ESG impact through Noble Resources’ business strategy
• Conducted employee training on compliance and raised awareness on cyber security
• Conclusion of legacy issues related to previous investigations

Climate Goals & Targets

Environmental Challenges

• Conflict in Ukraine
• Rising global inflation and interest rates
• Price volatility
• Increased heatwaves, floods and ongoing Covid-19 outbreaks
• Supply chain disruptions

Mitigation Strategies

• Asset-light strategy to mitigate direct physical climate and transitional risks
• Flexible chartering approach
• Investment in a circular supply chain for rare earth magnets
• Offsetting direct emissions of global offices with verified carbon credits
• Collaboration with long-term sourcing partners on traceability programmes in conflict-affected regions
• Strengthening collaboration with suppliers to address various issues

Supply Chain Management

Supplier Audits: 60 due diligence visits/year

Responsible Procurement

• Supplier Code of Conduct
• Responsible Supplier Declaration
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals

Climate-Related Risks & Opportunities

Physical Risks

• Increased heatwaves, floods

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Investment in rare earth magnet recycling

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD

Certifications: ISO 14001 (vessel)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Facilitating the trade of essential energy products and raw materials in Asia; supporting Asia’s baseload power generation and energy transition

Sustainable Products & Innovation

• Recycled rare earth magnets

Environmental Metrics

ESG Focus Areas

• Climate Action
• Energy and GHG Emissions
• Human Rights
• Employee Engagement
• Diversity and Equal Opportunity
• Compliance, Ethics, and Governance
• Responsible Supply Chains
• Data Security

Environmental Achievements

• 35% absolute reduction of Scope 1 and 2 emissions in 2023 compared to 2022
• 85% absolute emission reduction on corporate business travel and 77% emission reduction per employee in 2023 compared to 2019 pre-pandemic levels
• 100% of unavoidable Scope 1 and 2 carbon emissions from our global offices were offset with 200 verified carbon credits
• First production of recycled neodymium-iron-boron (NdFeB) magnets in the UK using commercial-scale magnet manufacturing equipment.

Social Achievements

• Increased the percentage of females in leadership and senior management roles to 33% (from 25% in 2022)
• Engaged employees through wellness initiatives and volunteering opportunities
• Extended paternity leave benefits in Singapore and Hong Kong
• Staff contributed over 110 hours of volunteer service

Governance Achievements

• Established an ESG Committee to strengthen governance of sustainability efforts
• Launched a Compliance Portal on the intranet to provide easier access to compliance resources
• Conducted employee training on compliance and raised awareness on cybersecurity

Climate Goals & Targets

Environmental Challenges

• Drought and low water levels impacting barging and hauling activities
• Heavy rainfall resulting in suspension of suppliers’ mining production and transport networks
• Increase in regulatory mandates on current products and chartering services
• Costs of reducing emissions to meet the International Maritime Organisation’s lower GHG emissions requirements
• Substitution of fossil fuels products to lower emissions options
• Social disapproval and negative perception towards the fossil fuel sector

Mitigation Strategies

• Build a diversified portfolio of offtake and marketing arrangements with producers
• Factor the impact of extreme weather events in the trading strategy
• Engage in back-to-back agreements with suppliers and customers
• Leverage physical contract position and financial derivatives to safeguard against commodity price volatility
• Consciously locate offices in energy-efficient buildings
• Monitor the development of carbon and climate-related policies
• Seek the most economical and environmentally suitable solutions when chartering third parties’ vessels
• Invest in new low carbon value chains (e.g., recycled rare earth magnets)
• Invest in oil blending capacity to supply biodiesel
• Support energy coal customers to meet their emission targets by supplying alternative fuels (e.g., ammonia)
• Obtain capital from banks understanding local needs
• Engage talent with interest in commodities through lectures and speaking opportunities at universities

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct incorporating sustainability criteria (human rights, labor management, occupational health and safety, environmental responsibility, business ethics, and social responsibility)

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Heatwave
• Tropical cyclone

Transition Risks

• Increase in regulatory mandates
• Costs of reducing emissions
• Substitution of fossil fuels
• Social disapproval

Opportunities

• Investment in new low carbon value chains
• Investment in oil blending capacity to supply biodiesel
• Supporting energy coal customers to meet their emission targets by supplying alternative fuels

Reporting Standards

Frameworks Used: GRI Standards, Singapore Stock Exchange's 27 core ESG metrics, IFRS SDS, SASB Standards (Professional & Commercial Services Industry)

Certifications: ISO 14001 (for vessel technical manager)

UN Sustainable Development Goals

• Various UN SDGs mentioned throughout the report

The report maps Noble Resources' activities against the UN SDGs for reference.

Sustainable Products & Innovation

• Recycled rare earth magnets