Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and safety
• Communities & Human Rights
• Employment
• Environment and Biodiversity
• Emissions, Wastes and Effluents
• Governance

Environmental Achievements

• Recycled or reused water increased to 26% of our process water used in FY2019 compared to 14% in FY2018.
• Reagent optimisation within the concentrator plant at Mt Weld led to a significant reduction in diesel combustion, further reducing greenhouse gas emissions.
• Completed the Mt Weld Tailings Dam Questionnaire in response to the Investor Mining & Tailings Safety Initiative.
• Significant trials to improve tailings storage capacity via mud-farming have seen consolidation of tailings greatly improve.

Social Achievements

• Lynas Malaysia was awarded a Gold medal CSR rating by EcoVadis, ranking among the top 5% of organisations evaluated.
• Lynas Malaysia celebrated the achievement of one-year LTI free.
• Lynas Malaysia was awarded a Gold class award for 2018 by the Malaysian Society for Occupational Safety and Health.
• Direct community investment expenditures across our operations were approximately AU$385,000.

Governance Achievements

• Became a signatory to the United Nations Global Compact (UNGC).
• Established a Supplier Sustainability Policy and Code of Conduct.
• All buyers in Lynas’ procurement team received Supply Chain & Sustainable Procurement Training.
• Supplier sustainability requirements have been integrated into our ISO-based standard procedures.

Climate Goals & Targets

Environmental Challenges

• Intermittent water supply issues in 2018.
• Increased fuel and electricity usage contributing to an increase in carbon emissions due to operational expansion and increased production.

Mitigation Strategies

• Constructed a larger, third water storage pond.
• Installed a dedicated water flow meter to precisely monitor water consumption.
• Implemented initiatives to minimise energy usage, such as preferring rail transportation to truck and procuring inputs from local suppliers.

Supply Chain Management

Supplier Audits: Supplier audits have commenced.

Responsible Procurement

• Supplier Sustainability Policy and Code of Conduct
• Supply Chain & Sustainable Procurement Training for procurement team
• Integration of supplier sustainability requirements into ISO-based standard procedures
• Priority given to development of capable local supply chains

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC, ASX Corporate Governance Council, Corporate Governance Principles and Recommendations, 3rd Edition

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Third-party Assurance: No additional external assurance has been sought

Sustainable Products & Innovation

• Condisoil (soil conditioner - commercialisation paused)

Awards & Recognition

• Malaysia Best Employer Brand Award Certification
• Gold class award for 2018 by the Malaysian Society for Occupational Safety and Health

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Communities & Human Rights
• Environment & Biodiversity
• Product Stewardship
• Governance

Environmental Achievements

• Achieved a result of 4.36m3 of permeate water per tonne of ore in FY19 at Mt Weld, exceeding the target.
• Zero environment-related incidents in FY20.
• Reduction in total tailings volume stored at Mt Weld despite increased tailings deposition from operations due to increased stored density of tailings through the utilization of AMC technology.

Social Achievements

• Lynas Malaysia celebrated one year LTI free on 8th July 2019.
• Local employees represent 97% of Lynas Malaysia’s workforce.
• Direct community investment expenditures across our operations were approximately AU$345,000.

Governance Achievements

• Lynas Malaysia operating licence renewed for three years to March 2023.
• Received a “Gold” CSR rating from EcoVadis.
• Received an ‘A’ ESG rating from MSCI.

Climate Goals & Targets

Environmental Challenges

• Slight increase in water consumption in FY20 at Mt Weld due to inefficiencies from temporary industry shutdowns arising from COVID-19.
• Overall rise in emissions in 2019 due to inefficiencies during production ramp-up to meet increased demand.

Mitigation Strategies

• Improving water recycling will continue to be a key project in FY21.
• Initiatives implemented to minimise energy usage, including scoping a hybrid power station at Mt Weld.
• Prefer rail transportation to truck to reduce emissions.

Supply Chain Management

Supplier Audits: Commenced in 2019 for all current suppliers; existing suppliers reevaluated every three years.

Responsible Procurement

• Lynas Group Supplier Sustainability Policy and Code of Conduct; requires suppliers to respect employee rights, institute strong health and safety and environmental protection standards, and establish zero-tolerance policies against corruption and bribery; avoid conflict minerals.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns, particularly the potential effect on water supply

Transition Risks

• Geopolitical factors
• Political risks and government actions
• Energy transition to renewables

Opportunities

• Transition to a low-carbon economy

Reporting Standards

Frameworks Used: GRI Standards: Core option, Mining & Metals Sector Supplement, UNGC, ASX Corporate Governance Council, Corporate Governance Principles and Recommendations, 3rd and 4th Editions, TCFD

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Third-party Assurance: No additional external assurance

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Lynas' operations and products contribute to these goals through various initiatives detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Gold Class award for 2018 from the Malaysian Society for Occupational Safety and Health
• Best in CSR Award in the Lang International Awards