Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Health and Safety
• Sustainability
• Produced water reuse and recycling

Environmental Achievements

• Iodine production utilizes a produced brine stream which, without Iofina, would simply be disposed of along with the contained iodide. Isolation of this valued resource from a produced stream is an extremely environmentally friendly method in contrast to other major US based iodine production, which requires the drilling of new brine wells that serve no other purpose than iodine production.
• Iofina Chemical received its first industry Performance Award for excellence in EHS&S practices.
• Iofina Chemical finished 2021 with no lost time accidents.

Social Achievements

• Iofina is committed to the highest standards of safety for our employees and our community.
• All Iofina employees are engaged in practices to continually improve safety and reduce environmental impact.
• Iofina has also implemented further safety initiatives throughout the COVID-19 pandemic to protect its employees.
• Iofina’s ‘Iofina Gives Back’ program supports local charities.

Governance Achievements

• The Directors continue to acknowledge the importance of high standards of corporate governance.
• The Group’s Corporate Governance Statement is found on page 26 of this report.
• The Board believes that effective corporate governance assists us in the delivery of our corporate strategy, the sustainable generation of shareholder value and the safeguarding of our stakeholders’ long-term interests.

Climate Goals & Targets

Environmental Challenges

• Lower brine supply from oil and gas partners impacted iodine production.
• Unprecedented extreme freezing weather conditions in Oklahoma required IR to suspend all iodine production operations for approximately two weeks in February 2021.
• Challenges were potential shortages of raw materials and unprecedented price increases and freight surcharges.
• Decline in overall brine production by partners, caused by curtailed oil and gas operators’ budgets during the pandemic and a shift toward fiscal discipline within the oil and gas sector.

Mitigation Strategies

• Developed long-standing relationships with multiple suppliers for chemicals and raw materials.
• Utilized long-term supply contracts, open lines of communication and excellent inventory management to work with suppliers to ensure continuity of supply and the best possible prices.
• Successfully executed a plan to protect employees and winterize IOsorb® plants during freezing conditions.
• Actively collecting brine samples and evaluating multiple geographic locations for potential IOsorb® plant locations.
• Working with oil and gas partners to implement plans to maximize brine input and iodine output.

Supply Chain Management

Responsible Procurement

• Iofina Chemical has long term relationships with many of its suppliers.
• When possible, Iofina Chemical sources materials from multiple suppliers to reduce risk.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

Certifications: Chemstewards®

Sustainable Products & Innovation

• Recycling iodine and other products from customers’ chemical waste streams

Awards & Recognition

• Chemstewards® award for resource management and waste minimization

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Sustainability
• Community Investment
• Diversity & Inclusion

Environmental Achievements

• Minimized energy consumption and waste generation through equipment upgrades and process improvements.
• Zero reportable releases and no lost time incidents across all facilities in 2022.

Social Achievements

• Iofina Chemical received SOCMA ChemStewards Performance Awards in 2021 and 2022.
• Iofina Chemical obtained ISO 9001:2015 certification in 2022.
• Launched 'Iofina Gives Back' program to support local communities.
• Partnered with Northwestern Oklahoma State University for internship programs.

Governance Achievements

• Adopted the Quoted Companies Alliance Corporate Governance Code.
• Implemented policies including Whistleblowing, Anti-Fraud, Anti-Corruption, Share Dealing, and AIM Rules Compliance.

Climate Goals & Targets

Environmental Challenges

• Higher levels of employee churn due to a competitive US labor market.
• Brine supply to IOsorb® plants can be affected by regulatory changes and adjustments to partners' saltwater disposal systems and oil production programs.
• Inflationary cost increases for iodine production and Iofina Chemical plant.
• Potential decline in brine availability if partners do not maintain or increase hydrocarbon production.

Mitigation Strategies

• Improved brine water supply consistency through collaboration with oil and gas partners.
• Implemented strategies to minimize the effect on brine availability due to regulations.
• Initiatives to improve employee retention, including hiring a new Maintenance Supervisor and adding monthly online safety training.
• Investigating alternative brine sourcing opportunities to have better control of brine supply at future sites.

Supply Chain Management

Responsible Procurement

• Sourcing materials from multiple suppliers to reduce risk.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

Certifications: ISO 9001:2015 (Iofina Chemical)

Awards & Recognition

• SOCMA ChemStewards Performance Awards (Iofina Chemical)

Environmental Metrics

ESG Focus Areas

• Environmental Health and Safety
• Community Investment
• Diversity & Inclusion
• Sustainable Practices
• ESG tenets

Environmental Achievements

• Reduced energy consumption (Electricity (kWh) 11,404,278; Natural gas (CCF) 67,281 for 1267 MT of goods produced in 2023 compared to 2022: Electricity (kWh) 11,390,576; Natural gas (CCF) 70,945 for 1496 MT of goods produced)
• Iofina Chemical improved a process to remove a raw material input and reduce the time to create a batch of the material, which will improve the overall environmental impact of production
• Zero Lost Time Incidents (LTIs) for the Group in 2023 and for over three years

Social Achievements

• Zero Lost Time Incidents (LTIs) for the Group in 2023 and for over three years
• Launched 'Iofina Gives Back' program supporting local communities through donations and sponsorships
• Partnered with Northwestern Oklahoma State University and the OCAST Intern Partnership Program

Governance Achievements

• Adopted the 2018 Quoted Companies Alliance Corporate Governance Code
• Implemented several policies including Whistleblowing Policy, Anti-Fraud Policy, Anti-Corruption and Bribery Policy, Share Dealing Code, and AIM Rules Compliance Policy
• Separation of CEO and Non-Executive Chairman roles

Climate Goals & Targets

Environmental Challenges

• Inflationary pressures on raw materials, labor, and energy
• Declining demand for some iodine derivatives
• Challenges in the timing and costs associated with the building of IO#9 plant
• Risk of declining brine availability due to changes in partners' hydrocarbon production
• Increased regulations

Mitigation Strategies

• Strategies to stabilize costs from inflationary pressures
• Shifting resources towards better opportunities in the raw iodine market
• Documented and learned lessons from IO#9 construction to apply to future plants
• Investigating alternative brine sourcing opportunities
• Long-term relationships with many suppliers and sourcing from multiple suppliers when possible

Supply Chain Management

Responsible Procurement

• Sourcing from multiple suppliers to reduce risk

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Certifications: ISO 9001:2015 (Iofina Chemical), Chemstewards® (Iofina Chemical)

Third-party Assurance: UHY Hacker Young LLP