Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy
• Water
• Land Use
• Biodiversity
• Communities
• Health and Safety
• Human Rights
• Value Chain
• Governance

Environmental Achievements

• Reduced total GHG emissions (Scope 1 and 2) by 15% compared to 2010.
• Invested over US$1 billion in environmental control and protection.
• Increased percentage of water reused/recycled to 70%.
• Restored 25.2 km² of degraded areas.
• Achieved 73% waste recycling rate.

Social Achievements

• Increased local hiring to 62% of total hiring.
• Reduced global employee turnover from 6% to 4.7%.
• Invested US$250 million in health and safety projects.
• Increased average training hours per employee by 39% to 53 hours/year.
• Increased proportion of women employed by 28% to 12.3%.

Governance Achievements

• Obtained certification for internal controls under the Sarbanes-Oxley Act for the sixth consecutive year.
• Selected as a member of the São Paulo Stock Exchange’s Corporate Sustainability Index (ISE) for the second year in a row.
• Implemented a Global Standard for employee benefits.

Climate Goals & Targets

Environmental Challenges

• Implementing main policies at the same pace as company growth while respecting local cultures.
• Achieving zero harm in health and safety.
• Eliminating education deficits among employees.
• Creating high-quality relationships based on trust with employees globally.
• Managing risks of corruption, especially in the supply chain.
• Ensuring sustainable practices throughout the value chain (child labor, deforestation, etc.).
• Addressing water use conflicts.
• Minimizing land use impacts and conserving biodiversity.
• Managing tailings and waste effectively.

Mitigation Strategies

• Action Plan on Sustainability (PAS) with targets for key indicators.
• Investment in health and safety, including Critical Activities Requirements (RACs).
• Internal and external education programs.
• Global employee survey and action plans to address feedback.
• Internal regulations and training to combat corruption.
• Supplier audits and engagement to promote sustainable practices.
• Water Resources Instruction and flow monitoring plan.
• Biodiversity Management Plans and partnerships for conservation.
• Tailings Dams and Piles Management System (SGBP) and waste reduction projects.

Supply Chain Management

Supplier Audits: 13 suppliers audited for health and safety performance.

Responsible Procurement

• Clauses in contracts to prevent human rights violations.
• Inove Program to develop local suppliers.
• Program of Independent Audits in the Supply Chain for pig iron.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Carbon taxation
• Higher energy prices

Opportunities

• Development of energy-efficient products and processes.
• Carbon credit projects.

Reporting Standards

Frameworks Used: GRI G3, ICMM, UN Global Compact

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Biodiesel production
• Dry processing of iron ore at S11D

Awards & Recognition

• John T. Ryan Trophy (Canada)
• Sustainable Biofuels award (World Biofuels Markets)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Stewardship
• Social Responsibility
• Governance

Environmental Achievements

• Achieved zero significant environmental incidents (SEIs)
• Alamo Dorado mine achieved zero discharge status
• All Mexican mines received Clean Industry Certification

Social Achievements

• Record safety performance with a 15% decrease in lost time injury frequency rate and a 47% decrease in lost time injury severity rate
• Supported 41 communities in five countries through CSR programs
• Improved education for 3,149 students
• Provided 4,600 healthcare consultations
• Strengthened local supply chain at Dolores mine

Governance Achievements

• Implemented a new internal metric for Significant Environmental Incidents (SEI)
• Revised Pan American Silver’s Environmental Policy
• 75% of Board members are independent

Climate Goals & Targets

Environmental Challenges

• Lower silver and metal prices
• One fatal accident at Huaron mine due to rockfall
• Challenges in building project and operating teams due to talent shortage

Mitigation Strategies

• Adjusted business plans to reduce cost structure
• Detailed investigation of fatal accident and implementation of improved procedures
• Support programs at mines and partnerships with educational institutions to mitigate talent shortage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of locally based and certified suppliers for most chemical and fuel inputs

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: Clean Industry Certification (Mexico)

Third-party Assurance: Deloitte (limited to financial indicators)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Socially Responsible Company (ESR) award (Mexico)
• Clean Industry Certification (Mexico)

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Stewardship
• Community Engagement
• Health
• Governance
• Economic Development
• Education

Environmental Achievements

• Achieved zero significant environmental incidents for the second consecutive year.
• Completed a review of the safety of all operating tailings management facilities (TMFs), confirming they are in accordance with best practices.
• Reduced nonconformances by over 50% in environmental audits in Peru and Bolivia.

Social Achievements

• Improved safety performance, achieving a lost time accident frequency of 1.14 per million work hours.
• Launched the Community Development Initiative (CDI) toolkit to better focus community projects.
• Supported various health and education programs in local communities, including medical campaigns, llama breeding projects, and adult literacy programs.
• Exceeded liveable wage for lowest paid employees.

Governance Achievements

• 75% of Board members were independent.
• Implemented a Global Code of Ethical Conduct and a Global Anti-Corruption Policy, with training sessions conducted in several operations.
• No waivers from the Code of Conduct were required for directors or executive officers.

Climate Goals & Targets

Environmental Challenges

• One fatal accident at the Huaron mine due to a low oxygen environment.
• Declining metal prices impacting capital and operating expenditures.
• Challenges in changing existing traditions and cultural practices in some older, complex mines that go against company health and safety standards.
• Legal claims filed in Mexican Agrarian Courts by two Ejido communities relating to land use agreements at Alamo Dorado mine.
• Unauthorized small-scale artisanal mining on claims owned by Pan American in Peru.

Mitigation Strategies

• Full investigation of the fatal accident at Huaron, leading to additional safety measures and employee training.
• Successfully optimized and controlled capital and operating expenditures despite lower silver prices.
• Implemented technical improvements in ground support methods and a company-wide program of training and safety audits in underground mines.
• Continued to foster positive relationships with communities around Alamo Dorado through CSR programs and believes claims are without merit.
• Successfully negotiated the cessation of artisanal mining through mutual agreement with the community and government authorities, and reinstated reclamation works.

Supply Chain Management

Responsible Procurement

• Use of locally based and certified suppliers for most chemical and fuel inputs.
• Focus on developing self-sustaining economies in local communities.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core, GRI Mining and Metals Sector Guidance

Third-party Assurance: External assurance for financial data in audited annual financial statements.

Awards & Recognition

• Corporate Knights Future 40 Responsible Corporate Leaders in Canada (19th place)
• Socially Responsible Company (ESR) Award from CEMEFI (Mexico)
• Clean Industry certification from PROFEPA (Mexico)
• Various safety awards (CAMIMEX, ISEM)

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Employment and Labour Practices
• Environmental Management
• Community Development

Environmental Achievements

• Achieved Zero Significant Environmental Incidents for the third consecutive year.
• Reduced greenhouse gas emissions per tonne of ore processed at several mines.
• Reduced water use intensity from external sources at several mines.
• Successfully completed environmental permitting for La Colorada expansion.
• Received environmental approval for the pulp agglomeration plant at the Dolores mine.
• Improved wastewater treatment facilities at San Vicente and Huaron mines.
• Advanced construction of a power line to Dolores mine, reducing GHG emissions.

Social Achievements

• Received the “Business of the Year” award from the Peruvian Canadian Chamber of Commerce.
• Initiated a three-year nutrition program in Bolivia.
• Launched a formalized CSR social review process.
• Supported 63 schools through infrastructure, materials, and scholarships.
• Provided medical attention to 8,593 people through local health facilities and campaigns.
• Supported 40 local teachers.

Governance Achievements

• Maintained a majority of independent directors on the Board.
• Implemented a Global Code of Ethical Conduct and a Global Anti-Corruption Policy.
• Conducted ethics and compliance training for management and administrative personnel.
• Established a process for reporting ethical, accounting, or audit complaints.

Climate Goals & Targets

Environmental Challenges

• Five fatalities at mines in 2015.
• Challenging market conditions and depressed metal prices.
• Transitioning mines towards closure and reclamation.
• Maintaining community acceptance and trust.

Mitigation Strategies

• Implemented a Serious Accident Reduction Initiative, including intensive training.
• Improved operating efficiencies and maintained positive margins.
• Advanced cost-effective expansion programs at La Colorada and Dolores mines.
• Focused on adding value to long-term assets.
• Continued mechanization of underground mines.
• Ongoing community engagement and consultation.

Supply Chain Management

Responsible Procurement

• Focus on local procurement practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core level, GRI Mining and Metals Sector Guidance

Certifications: Mexican Clean Industry program (for Mexican mines)

Third-party Assurance: External Assurance for audited financial statements

Awards & Recognition

• Business of the Year award from the Peruvian Canadian Chamber of Commerce
• Silver Hard Hat (Casco de Plata) safety award in Mexico (La Colorada mine)

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Employment
• Local Communities
• Training and Education
• Economic Performance
• Community Development and Infrastructure
• Emergency Preparedness
• Competitive Salaries and Local Employment
• Water Stewardship
• Investment in Alternative Economic Opportunities & Activities

Environmental Achievements

• Achieved zero significant environmental incidents.
• Energized a powerline connection to Dolores, reducing greenhouse gas emission intensity from electricity use by at least 25%.
• Reduced water use intensity at Morococha through increased recycling and at Manantial Espejo and Dolores through increased surface water capture.
• Replaced the mine water treatment plant at La Colorada.
• Reduced overall generation of hazardous waste by 25% compared to 2015.

Social Achievements

• Achieved the best health and safety performance record in the company’s history (lowest lost-time accident frequency).
• Invested $6.2 million in CSR programs benefiting local communities.
• Supported 43 schools near mines through infrastructure improvements, materials, and scholarships.
• Supported 62 local teachers through wage supplementation.
• More than 5,000 students received support for primary through tertiary education.
• Successfully finalized and transitioned Project Access in Bolivia to local communities.
• Implemented and monitored a social grievance mechanism program across operations (except Argentina).

Governance Achievements

• Became members of the Mining Association of Canada and committed to implementing its Towards Sustainable Mining framework.
• Adopted the new Global Reporting Initiative Standards for reporting.
• Strengthened stakeholder engagement process.

Climate Goals & Targets

Environmental Challenges

• One fatal accident occurred at San Vicente mine.
• Cost escalations related to inflation in Bolivia.
• Weak metal prices in recent years.
• Closure of Alamo Dorado mine.
• Potential impacts to local communities during mine closures and expansions.

Mitigation Strategies

• Detailed investigation of the fatal accident at San Vicente and implementation of preventative actions.
• Productivity improvements and cost reductions at Huaron and Morococha mines.
• Mine expansions at La Colorada and Dolores to offset production declines.
• Advanced planning and communication for Alamo Dorado mine closure.
• Development of social closure plans and community engagement strategies.

Supply Chain Management

Responsible Procurement

• Use of locally based and certified suppliers for most chemical and fuel inputs.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Core level

Third-party Assurance: External assurance for economic data

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Production and Consumption
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 15: Life On Land
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

The report details how various initiatives contribute to each of the 17 SDGs.

Awards & Recognition

• Corporate Knights Future 40 Responsible Corporate Leaders in Canada (36th place)
• La Colorada received the “Casco de Plata” award for safest underground mine in Mexico.
• CEMEFI Socially Responsible Company (ESR) designation for all Mexican mines.
• Morococha won the “Underground Mining” category in the 20th National Peruvian Safety awards.
• Huaron awarded an honorary plaque in the 20th National Mining Safety awards.
• Pan American Silver received the ‘Business of the Year’ award from the Peruvian-Canadian Chamber of Commerce.
• Pan American Silver Peru was awarded third place in the Entrepreneurial Communities Expo.

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Began implementation of the Towards Sustainable Mining (“TSM”) protocols and guidelines.
• Substantially complete all physical reclamation work at Alamo Dorado and transition to post-closure monitoring and maintenance phase.
• Continued implementation of TSM and complete self-evaluations at all operations.

Social Achievements

• Keeping our workers healthy and satisfied in their jobs, maintaining labour peace, working closely with our communities and host countries to return to them a fair share of the wealth from our mining operations, and mitigating our impact on the environment are core to how we do business.
• Strengthening the production chain of livestock breeding.
• Value adding through the development of alpaca textiles weaving workshops with product commercialization in North America.
• Improving nutrition, focusing on children and women.
• Promoting community health with emphasis on immunizations, optometry, and oral health.
• Promoting tourism and local areas of interest such as the Stone Forest in Huayllay in Peru.
• Encouraging education for children and adults by contributing to teachers’ salaries, and providing continuous support through different scholarships at a local and national level.

Governance Achievements

• Our Board recognizes that financial and operating performance is inextricably linked to corporate social responsibility.
• The health and safety of our workers is discussed at each meeting.
• Our discussions of capital allocation include community sustainability projects and environmental impacts.

Climate Goals & Targets

Environmental Challenges

• Navidad project in Argentina remains stalled due to a ban on open pit mining in the province of Chubut.
• Local opposition to mine development projects has arisen periodically in some of the jurisdictions in which we operate, and such opposition has at times been violent.
• Armed robberies of doré in Mexico.

Mitigation Strategies

• Efforts to engage local residents and government representatives around the Navidad project, as well as other citizens of Chubut and Argentina.
• Institut ed a number of additional security measures and a more frequent shipping schedule in response to robberies in Mexico.
• Renewed insurance policy to mitigate some of the financial loss that would result from such criminal activities in the future.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Silver has become a vital part of today’s energy revolution in clean energy (e.g., photovoltaic panels).

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Ross J. Beaty appointed to The Order of Canada and inducted to the Business Laureates of British Columbia Hall of Fame. Inducted into Canada’s Mining Hall of Fame.

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Working Conditions
• Socio-economic Impact
• Opportunities for Communities
• Grievance Mechanism
• Emergency Preparedness
• Behavior of Security Personnel
• Diversity
• Water
• Climate Change
• Tailings Management
• Human Rights

Environmental Achievements

• Zero significant environmental incidents
• Reduced non-recyclable hazardous waste generation at silver segment operations by 25%
• Reduced water use from external sources at San Vicente mine
• Increased water recycling at Morococha mine
• Successfully transitioned Alamo Dorado to post-closure
• More than 360,000 trees planted at Dolores and La Arena

Social Achievements

• Zero significant social conflicts
• Increased COI participation in annual survey from 645 to 1146
• Improved hygiene, sanitation, and living conditions at San Vicente
• Supported 16 long-term socio-economic development programs
• Helped over 8,000 students acquire quality education
• Settled Garcia v. Tahoe Resources Inc. case

Governance Achievements

• Implemented a new Human Rights Policy
• Appointed a Human Rights Officer
• Completed independent tailings dam safety reviews at all operating facilities
• Submitted data to the Investor Mining and Tailings Safety Initiative

Climate Goals & Targets

Environmental Challenges

• Integrating Tahoe Resources assets, including instilling Pan American Silver’s values and sustainability approach at new operations
• Two employee fatalities at Morococha and Manantial Espejo mines
• Political and economic instability in operating regions
• Addressing on-going disputes at La Colorada and Escobal
• Maintaining a skilled, engaged, and diverse workforce
• Climate change risks
• Water scarcity
• Tailings management
• Corruption risks

Mitigation Strategies

• Leveraging synergies and sharing best practices
• Implementing the Mining Association of Canada’s Towards Sustainable Mining (TSM) protocols
• Formalizing approach to human rights
• Investing in initiatives to make host communities more resilient to climate change
• Implementing measures to prevent similar accidents
• Developing a more systematic approach to managing sustainability objectives and risks
• Implementing projects to improve stormwater runoff control
• Improving water management and mine closure systems
• Implementing a new Human Rights Policy and appointing a Human Rights Officer
• Conducting independent tailings dam safety reviews
• Improving crisis management systems
• Implementing a behavior-based safety program
• Providing training and capacity building
• Implementing a Supplier Code of Conduct
• Strengthening relationships with ESG investors

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Local hiring and procurement
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Impacts on water availability

Transition Risks

• New carbon regulations
• Rising energy costs

Opportunities

• Development of energy-efficient products and processes
• Silver's role in renewable energy

Reporting Standards

Frameworks Used: GRI Standards: core option and GRI Mining & Metals Sector Disclosures, Towards Sustainable Mining (TSM) protocols

Certifications: Null

Third-party Assurance: Internal review

UN Sustainable Development Goals

• Not disclosed

Programs contribute to various SDGs, details available on company website.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Dolores mine received Chairman’s Safety Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• No significant environmental incidents at our operations.
• Corporate environmental audit on La Colorada operation with no material issues identified.
• Safe management of tailings facilities during mine suspensions related to the COVID-19 pandemic.

Social Achievements

• Adoption of an Inclusion and Diversity Policy.
• 17.3% increase in the percentage of new female hires and promotions.
• Increased representation of women on the Board of Directors.
• $2.0 million donation towards food, hygiene, medical supplies, and PPE for local communities.
• 3-year, $1.5 million partnership with UNICEF Canada for health and education in Latin America.
• Social audit of Manantial Espejo operation with no material issues identified.
• Became signatories to the United Nations Global Compact.

Governance Achievements

• Established an ESG Committee comprised of cross-departmental senior and executive management representatives.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused mine suspensions and restricted capacities, impacting production and costs.
• Two fatalities at Huaron and La Colorada mines.
• Community disputes related to water distribution (La Arena), La Colorada (Mexico), and Escobal (Guatemala).

Mitigation Strategies

• Implemented comprehensive COVID-19 protocols at all operations.
• Launched "PAAS Listens" program to support workforce mental health.
• Thoroughly investigated fatal accidents and implemented preventative measures.
• Working to resolve community disputes.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, resource shortages, changes in rainfall, water shortages, extreme temperatures

Transition Risks

• Greenhouse gas emission regulations, energy efficiency regulations

Opportunities

• Increased demand for metals in new technologies

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 11% compared to the 2021 base case
• Reduced water consumption by 10% compared to the 2021 base case
• Achieved a net positive impact of 85 hectares of rehabilitated or restored land

Social Achievements

• 100% of employees and contractors received training on the first module of our “Building Respect Together” program
• Completed the construction of Cachachi Primary School near Shahuindo
• Completed renovations at the health center in Colonia Orion near La Colorada mine

Governance Achievements

• 480 key employees completed anti-corruption training
• 100% of Board members, officers, executives, and senior management were certified under the Anti-Corruption Policy and the Code of Ethical Conduct
• Renewed and amended a $500 million credit facility to include a pricing component linked to ESG performance

Climate Goals & Targets

Environmental Challenges

• Four fatalities occurred at operations during 2021
• COVID-19 pandemic impacted workforce deployment, production, costs, and capital projects
• Cost pressures, supply chain disruptions, and shipment delays persisted

Mitigation Strategies

• Completed a third-party assessment of progress made under a behavior-based safety system in Peru
• Partnered with UNICEF Canada’s GiveAVax campaign to provide COVID-19 vaccines
• Implemented comprehensive protocols to slow the spread of COVID-19

Supply Chain Management

Supplier Audits: Nearly 400 tier 1 critical suppliers screened; another 250 in process; 80% of expenditures covered

Responsible Procurement

• Supplier Code of Conduct requiring compliance with laws, Pan American Silver’s policies, ethical and environmentally responsible conduct, and respect for community rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Impacts on water availability
• Changes in rainfall and temperature patterns

Transition Risks

• Regulatory changes
• Market shifts
• Reduced access to finance
• Supply chain challenges
• Reputational risks

Opportunities

• Increased demand for silver and base metals in low-carbon technologies

Reporting Standards

Frameworks Used: GRI Standards, SASB Standard, TCFD reporting framework, UN Global Compact

Third-party Assurance: Internal review at on-site and corporate office levels

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 12
• 13

Goals aligned with 2022 Sustainability Goals to maximize positive impact

Awards & Recognition

• 2021 Sustainable Development Award (Peru)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 14% reduction in water use compared to the 2022 base case
• 9% reduction in energy use compared to the 2022 base case
• 19% reduction in GHG emissions compared to the 2022 base case, mainly due to renewable electricity supply for Dolores and La Colorada since May 2022
• Zero significant environmental incidents

Social Achievements

• LTIF rate of 0.74 per million hours worked
• $14.7 million of community investment budget executed
• 100% of our workforce was trained on Module 2 of the "Building Respect Together" program

Governance Achievements

• 432 key employees were trained on Anti-Corruption policy
• 167 critical suppliers were assessed using our due diligence system

Climate Goals & Targets

Environmental Challenges

• Three fatalities at Huaron, Dolores, and La Arena mines
• High levels of workforce absenteeism due to the Omicron variant of COVID-19
• Global inflationary cost pressures
• Social disputes at La Colorada and Escobal
• Extreme precipitation events causing damage to infrastructure

Mitigation Strategies

• Implementing new safety measures and working with a third-party consultant to incorporate the “do safety differently” concept
• Easing stringent COVID-19 protocols
• Securing renewable energy sources for Mexican operations
• Proactive engagement with the UN Human Rights office and affected families at La Colorada
• Participating in the ILO 169 consultation process for Escobal
• Developing action plans to manage extreme precipitation risks, including infrastructure upgrades and revised water management plans

Supply Chain Management

Supplier Audits: 167 critical suppliers assessed in 2022; 72% coverage

Responsible Procurement

• Supplier Code of Conduct
• Third-party supplier due diligence system
• Minimum screening standards for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Impacts on water availability
• Changes in rainfall and temperature patterns

Transition Risks

• Regulatory changes
• Market shifts
• Reduced access to finance
• Supply chain challenges
• Reputational risks

Opportunities

• Increased demand for silver and base metals in green technologies

Reporting Standards

Frameworks Used: GRI Standards, SASB Standard, TCFD reporting framework

Third-party Assurance: Internal review at both on-site and corporate office levels

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 12
• SDG 13

Company goals aligned with prioritized SDGs to maximize positive impact.

Awards & Recognition

• Blue Certificate from the Peruvian National Water Authority (La Arena and Shahuindo)
• Third-place award in the Environment category from the Chamber of Industry of Guatemala (Escobal)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Tailings Facilities and Waste Management
• Energy and GHG Emissions
• Biodiversity and Land Use
• Mine Closure and Rehabilitation
• Health and Safety
• Relationships with Communities and Indigenous Peoples
• Socio-Economic Contributions
• Security Practices
• Human Capital Development
• Inclusion and Diversity
• Business Ethics

Environmental Achievements

• Reduced GHG emissions by over 85,000 t CO2Eq (23% of the 2023 base case)
• Reduced water withdrawn for use by over 170,700 m3 (1% of the 2023 base case)
• Reduced non-recycled/non-reused non-rock waste by over 740 tonnes (7% of the 2023 base case)
• Rehabilitated over 89 hectares across operations

Social Achievements

• Zero fatalities
• LTIF rate of 0.69
• LTIS rate of 40
• No new social disputes
• Resolved 91% of medium and high-risk grievances
• 24.1% of new hires were women
• Retained 92.4% of women employees
• 100% of security employees and contractors trained in human rights

Governance Achievements

• 32.5% of senior management's performance-based compensation tied to ESG metrics
• Trained 1,142 key employees on the Anti-Corruption policy
• Assessed 198 critical suppliers using the due diligence system
• Completed three external TSM verifications

Climate Goals & Targets

Environmental Challenges

• Production shortfalls at La Colorada due to ventilation constraints
• Increased security risks across operating countries
• Greater government regulatory risks
• Water availability in arid climate of El Peñon
• Water quality at Cerro Moro due to natural salinity
• Differences in water balance calculations at Acquired Mines
• Dust from transport trucks on gravel roadways

Mitigation Strategies

• Completed new ventilation shaft at La Colorada (completion of exhaust fan installation expected mid-2024)
• Expanded country-level risk assessment processes to all Acquired Mines
• Developing an enterprise-level risk management system (implementation planned for 2024)
• Adapting to legal and regulatory requirements in Brazil and Chile
• Adopting Pan American Silver methodologies for water balances
• Implementing dust suppression systems and methods
• Engaging with affected communities and local authorities to implement and improve mitigation measures

Supply Chain Management

Supplier Audits: 198 new critical suppliers assessed (26% of total)

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Extreme precipitation
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Reputational risks

Opportunities

• Increased demand for silver and base metals in green technologies

Reporting Standards

Frameworks Used: GRI Standards, SASB Metals & Mining Sustainability Accounting Standard, TCFD

Awards & Recognition

• Nevada Excellence in Mine Reclamation Award (Austin Gold Venture Mine)