Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Customer Focus
• Leadership
• People
• Excellence
• Integrity
• Sustainability

Environmental Achievements

• Restored 5,145 acres of mined lands – 1.4 acres for each disturbed – into wildlife habitat, rangeland, hardwood forests, prime farmland, pastoral land and wetlands.
• Recycled and reused 33,548 megaliters of water, representing 59 percent of total water withdrawn.
• Recycled and reused, including energy recovery, about 72 percent of total waste.

Social Achievements

• Increased spend with minority suppliers by 10 percent over the prior year.
• Committed to advance diversity and inclusion in the workplace through our President and CEO Glenn Kellow signing the CEO Action for Diversity & Inclusion® pledge.
• Contributed more than $1.4 million in philanthropic funding and scholarships.

Governance Achievements

• Governed by a board of directors who offer experience across multiple global tier-one industries, with eight of the nine being independent.
• Contributed more than $0.9 billion in taxes, royalties, levies and fees to federal, state and local governments, including the voluntary disclosure of payments consistent with the Extractive Industry Transparency Initiative in the U.S. and Australia.
• Provided political and lobbying disclosures at the federal and state levels.

Climate Goals & Targets

Environmental Challenges

• The restructuring process created challenges for many stakeholders.
• Cyclone Debbie presented issues like rail outages and port backlogs, holding back shipments of coal.
• Peabody Americas underground and surface mine TRIFR crept up in 2017 over the prior year.

Mitigation Strategies

• Taking action, converting lessons learned into longer-term positives to deliver results and generate value.
• Peabody’s Logistical Team led the industry in coming back on line once infrastructure became operational, expediting deliveries of huge volume shipments to follow through on commitments to customers.
• Each mine across the Americas has put in place an action plan to improve safety results going forward.

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

• 1, 2, 7, 8, 9, 11, 12, 15, 17

Peabody and the products the company supplies – thermal and metallurgical coal – contribute to and support many of the SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best ESG – Responsible Mining Company – Global from Capital Finance International (two consecutive years)
• 2017 Coal Mining Company of the Year from Corporate LiveWire
• Mine Safety and Health Technology Innovation Award from the U.S. National Institute for Occupational Safety and Health
• Communitas Award for Leadership in Ethical and Environmental Responsibility
• Communitas Award for Excellence in Community Service – Community Partnership

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced global greenhouse gas intensity by 7.5 percent
• Restored 2,984 acres of mined land
• Recycled or reused approximately 20% of water withdrawn

Social Achievements

• No fatalities at operated mines in 2019
• Global TRIFR of 1.64 per 200,000 hours worked
• Distributed $1.2 million in philanthropic cash contributions globally
• Implemented inclusive leader and unconscious bias education for over 500 people leaders

Governance Achievements

• Recognized with substantial environmental, social and governance (ESG) achievements by Institutional Shareholder Services and Institutional Investor Magazine
• Received a prestigious Sentinels of Safety Award from the National Mining Association
• Achieved 100 percent completion rate for Code of Business Conduct and Ethics training

Climate Goals & Targets

Environmental Challenges

• Heightened divestment pressures from institutional investors and socially responsible funds
• Increased divestment from fossil fuels by pension funds, insurance companies, surety providers, and commercial banks

Mitigation Strategies

• Outreach initiatives to engage stakeholders and incorporate feedback into long-term objectives
• Advocating for constructive engagement and support of responsible miners
• Aligning with international initiatives such as the UN Global Compact

Supply Chain Management

Responsible Procurement

• Expanded supplier screening process (planned for 2020)
• Development of a formal supplier code of conduct (planned for 2020)

Climate-Related Risks & Opportunities

Transition Risks

• Divestment pressures

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: U.S. National Mining Association’s CoreSafety® framework

Awards & Recognition

• Sentinels of Safety Award
• National Awards from the U.S. Office of Surface Mining Reclamation and Enforcement
• Reclamationist of the Year
• Employer of the Year — Energy and Natural Resources

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Restored nearly one acre for every acre disturbed during mining in 2020.
• Recycled 25% of total water withdrawn in 2020.
• Reduced Scope 1 emissions by approximately 13% compared to 2019 levels.

Social Achievements

• Achieved two consecutive years with no fatal accidents at owner-operated mines.
• Implemented a new learning and development platform providing opportunities to over 1,000 employees.
• Offered various training sessions on inclusion and diversity topics.

Governance Achievements

• Developed and implemented a formal Vendor Code of Conduct.
• 100% completion rate for Code of Business Conduct and Ethics training for active employees.
• Nine of eleven directors are independent under NYSE rules.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted all facets of the business.
• Marginal increase in TRIFR rate to 1.67 incidents per 200,000 hours worked.

Mitigation Strategies

• Worked to position the company against challenges posed by the pandemic.
• Continued actions to address climate change including energy conservation, supporting research in low-emissions projects, engaging with stakeholders, and building awareness to increase access to low-cost electricity.

Supply Chain Management

Responsible Procurement

• Formal Vendor Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development and deployment of HELE and CCUS technologies

Reporting Standards

Frameworks Used: SASB for coal

Certifications: CORESafety®

Awards & Recognition

• Wyoming Department of Environmental Quality Excellence in Mining Reclamation Award

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Biodiversity & Environmental Impact
• Emissions
• Waste
• Energy Use
• Water
• Human Capital Management
• Diversity & Inclusion
• Health & Safety
• Human Rights
• Supply Chain Management
• Community Involvement
• Risk Management
• Ethics
• Board Composition
• Cybersecurity
• Whistleblower Protection
• Political Contributions

Environmental Achievements

• Achieved final bond releases approved on over 3,000 acres of reclaimed land, including full permit release at the Big Sky Mine in Montana
• Approximately $12 million of U.S. reclamation bond releases approved and restored more than 2,300 acres in the year.
• Scope 1 and 2 emissions have decreased by over 20 percent since 2019, and over 35 percent overall since 2018
• Increased renewable energy usage in electricity consumed by almost 37 percent since 2019
• Twenty five percent of the total water withdrawn was recycled in 2022.

Social Achievements

• Workforce achieved its lowest annual global injury rate ever, with three of our operations reporting zero incidents.
• Launched a new leadership development training program in 2022.
• Peabody’s company-sponsored Employee Assistance Program is available to all employees and their immediate families.
• Six weeks of paid parental leave at 100 percent base pay as the primary caregiver or two weeks of paid parental leave at 100 percent base pay as the secondary caregiver, after the birth or adoption of a child (U.S.)
• 18 weeks of paid parental leave at 100 percent base pay as the primary caregiver or two weeks of paid parental leave at 100 percent base pay as the secondary caregiver of a newborn or recently adopted child (Australia).

Governance Achievements

• Peabody became a signatory to the UN Global Compact in 2019.
• 99 percent of salaried employees completed Business Conduct and Ethics training in 2022.
• Annual anti-corruption and anti-bribery training is required for salaried employees.

Climate Goals & Targets

Environmental Challenges

• Labor shortage posing a risk to operating effectively and meeting customer needs.

Mitigation Strategies

• Review of every salaried role to ensure competitive compensation, increased use of Individual Development Plans, enhanced learning and development opportunities, company-wide employee recognition scheme, revised employee service awards, enhanced medical coverage options, partnership with WhereFit, and strengthening the Employee Referral Program.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct outlining expectations for environmental compliance, labor standards, and human rights.

Climate-Related Risks & Opportunities

Opportunities

• Emission reduction projects
• Renewable energy development

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, UN Global Compact

Awards & Recognition

• Newsweek’s 2023 Greatest Workplaces for Diversity (five stars)

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Energy Use
• Biodiversity & Environmental Impact
• Waste
• Water Use & Management
• Human Capital
• Diversity & Inclusion
• Health & Safety
• Human Rights
• Supply Chain Management
• Community Involvement
• Risk Management
• Ethics
• Board Composition
• Cybersecurity
• Whistleblower Protection
• Political Contributions

Environmental Achievements

• Reduced Scope 1 and Scope 2 GHG emissions by 15 percent from 2018 baseline.
• Reclaimed approximately 3,200 acres of land.
• Gained final bond release approval on 2,600 acres.
• Pre-funded all long-term mine closure and reclamation obligations.
• U.S. reclamation efforts exceeded targets by 25 percent.
• Bear Run Mine received the Indiana Excellence in Mining Reclamation Award.

Social Achievements

• Achieved second lowest annual global injury rate in 2023.
• Australian operations achieved a record low injury rate.
• Two Peabody employees received Reclamationist of the Year and Pioneer in Reclamation awards.
• Raised $91,857 for the Movember Foundation and PCFA.
• Successfully trialed a remote-controlled dozer at Coppabella Moorvale Joint Venture to improve safety.
• Twentymile Mine received the Sentinels of Safety Award for the second year in a row.
• Wambo Mine won the Hunter Valley Mines Rescue Underground Competition for the 13th time in 15 years.
• Spent approximately $15.6 million with underrepresented vendors.

Governance Achievements

• Successfully pre-funded the full cost estimates for Peabody’s final reclamation liabilities.
• No cybersecurity breaches resulting in loss of privacy, data or company information.

Climate Goals & Targets

Environmental Challenges

• Achieving net-zero emissions by 2050.
• Managing water resources in varying climates.
• Maintaining a diverse workforce.
• Cybersecurity threats.

Mitigation Strategies

• Setting incremental, measurable emission reduction targets.
• Implementing water conservation and recycling practices.
• Investing in talent pipelines and diversity initiatives.
• Implementing a robust cybersecurity strategy and training.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct outlining expectations for environmental compliance, labor standards, and human rights.

Climate-Related Risks & Opportunities

Opportunities

• Development of renewable energy sources on reclaimed mine land; investment in low-emission technologies.

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: CORESafety®

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Peabody's initiatives contribute to these goals through emission reductions, reclamation efforts, community engagement, and responsible resource management.

Awards & Recognition

• Indiana Excellence in Mining Reclamation Award
• Sentinels of Safety Award