Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Health & Hygiene
• Community Relations
• Environmental Management
• Employee Engagement

Environmental Achievements

• 4.82 ECO Score (exceeded target of 4.5)
• 50% reduction in water consumption since 2015
• 60% increase in recycled industrial waste since 2018
• 46% reduction in the generation of solid waste

Social Achievements

• Launched a new scholarship program for young people near Inmaculada mine
• Extended the Travelling Doctor program in collaboration with local authorities
• Supported around 250 businesses with a diversified range of produce, generating over 480,000 soles (approximately US$145,000) in revenue
• Established local community banks to support producers

Governance Achievements

• Implemented the Safety Culture Transformation Plan, resulting in a 40% reduction in LTIFR and a 94% reduction in the Accident Severity Index
• All safety management systems at operating units achieved Level 6 re-certification by Det Norske Veritas GL (“DNV”)

Climate Goals & Targets

Environmental Challenges

• Permitting delays in Peru for exploration projects
• Complex economic environment in Argentina
• Water shortages in San Jose due to severe drought
• Social conflicts and protests in Peru

Mitigation Strategies

• Implemented enhanced systems of monitoring and a program of third-party reviews of Tailings Storage Facilities
• Continued focus on maintaining a low all-in sustaining cost of production and an efficient level of administrative expense
• Flexible hedging policy to mitigate the effect of price movements
• Debt refinancing to strengthen balance sheet
• Increased interaction with local governments and other key stakeholders
• Launch of collaboration with the Julian Baring Scholarship Fund

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Mines & Money 2019 Innovation in Sustainability award

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Management
• Community Relations
• Employee Engagement
• Business Conduct and Ethics
• Respecting Human Rights

Environmental Achievements

• Achieved best ever ECO Score of 5.74 out of 6 (73% improvement since 2015)
• Zero environmental incidents
• 86% water reused and circulated
• 39% reduction in domestic waste generation
• 43% reduction in water consumption per person (compared to 2015)

Social Achievements

• Invested $5.5 million in local communities
• Hired 613 community members in Peru and 260 in Argentina
• Procured $13.3 million worth of goods and services from community-run businesses
• Successfully continued implementation of the Safety Culture Transformation Plan and introduction of an updated action plan known as “Safety 2.0”
• Established mental health support activities and programmes to support employees and their families during the pandemic
• Launched Mujeres de Oro internship programme for women in mining
• Launched Beca Futuro Mujer programme providing scholarships to women from communities

Governance Achievements

• Appointed a Corporate Compliance Officer
• Established a centralised corporate compliance function
• Published the Company’s first standalone Human Rights Policy

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting operations and employee wellbeing
• One fatality at Pallancata mine due to a rock fall
• Increased domestic waste generation due to Covid-19

Mitigation Strategies

• Immediate action to halt Peruvian operations and exploration programmes in March 2020
• Implementation of Covid-19 protocols exceeding official requirements
• Establishment of a Covid-19 Special Committee
• Mental health support programs for employees and families
• Formal investigation of the fatality at Pallancata to identify root causes and implement corrective measures
• Implementation of Safety 2.0 action plan

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement of goods and services from community-run businesses

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and electric vehicle fleet

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Health and Safety Management Systems operating at all mining units achieved Level 6 re-certification by Det Norske Veritas GL

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 13
• Goal 17

Hochschild aligns its efforts with these SDGs to bring about positive social, economic, and environmental outcomes.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Mines and Money award for “Innovation in Sustainability” (2019)
• First place in the Peruvian National Oil and Energy Mining Society’s Sustainable Development Award (2020)
• ProActivo Award 2020 for Connectivity Project

Environmental Metrics

ESG Focus Areas

• Serving our communities
• Protecting the environment
• Promoting health, safety and well-being at work
• Empowering our people
• Ensuring we are a responsible business

Environmental Achievements

• 5.29 ECO Score out of 6
• 48% decrease in domestic solid waste generated since 2015
• 53% reduction in potable water consumption since 2015
• Achieved the “Level 2 Footprint” acknowledgement for measuring and verifying GHG emissions from both the Inmaculada and Pallancata mines

Social Achievements

• $6.15m invested in communities and local governments
• 1,699 total local workforce
• $63.58m value of goods and services procured from local providers
• 536 beneficiaries reached through our Conexión Futuro programme
• 2nd out of 18 mining companies in Peru for best corporate reputation
• 33% female representation at Board level
• 1,564 employees completed the #libredeacoso anti-discrimination training
• Level 7 Health and Safety Management System certification by DNV

Governance Achievements

• Achieved the Anti Bribery Certification of Entrepreneurs for Integrity
• Recognised by the EMIN award (Mining Excellence of the South macro region) in Peru
• TCFD alignment increased reporting transparency of climate-related risks

Climate Goals & Targets

Environmental Challenges

• Three fatal incidents (two contractors, one employee)
• June 2021 tragic traffic accident involving a transport contractor (26 fatalities)
• Climate change risks (intense rainfall in Peru, drought in Argentina)
• Supply chain disruptions

Mitigation Strategies

• Thorough investigations into fatal incidents and implementation of corrective actions
• Installation of additional safety measures on highways, investment in advanced driver cockpit equipment, review of transportation protocols
• Development of a carbon roadmap to become net-zero by 2050
• Implementation of initiatives focused on responsible water management, including installing electro-valves and running communication campaigns

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers confirming acceptance of Hochschild’s Code of Conduct
• Prioritization of ethical decision-making when purchasing goods and services

Climate-Related Risks & Opportunities

Physical Risks

• Intense rainfall affecting tailings facilities in Peru
• Drought affecting processing facilities in Argentina

Transition Risks

• Changing regulations
• Technological advancements
• Legal action
• Market shifts
• Reputational damage

Opportunities

• Increased demand for products and services
• Improved market capitalization
• Fuel-switching/energy saving technologies

Reporting Standards

Frameworks Used: GRI Standards: Core Option, TCFD

Certifications: DNV Level 7 Health and Safety Management System, Celepsa Certification and the triple C Label for renewable energy use

Third-party Assurance: Gaveglio Aparicio y Asociados Sociedad Civil de Responsabilidad Limitada (member firm of PricewaterhouseCoopers International Limited)

UN Sustainable Development Goals

• Goal 6
• Goal 8
• Goal 12
• Goal 13
• Goal 3
• Goal 4
• Goal 5

Hochschild aligns its efforts with the UN SDGs through initiatives related to water management, economic growth, sustainable consumption and production, climate action, health and well-being, education, and gender equality.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EMIN award (Mining Excellence of the South Macro Region) in Peru
• 2nd place in Merco Talento rankings within the mining sector

Environmental Metrics

ESG Focus Areas

• Serving our Communities
• Protecting the Environment
• Ensuring Health and Safety
• Empowering our People
• Guaranteeing we are a Responsible Business

Environmental Achievements

• Launched updated Environmental Management System
• Achieved a B rating in CDP climate change impact report (improvement from previous year and higher than mining industry average)
• 5.27 ECO Score (vs target of 5.00)
• 58% reduction in potable water consumption compared with 2015
• 46% decrease in domestic solid waste generated compared with 2015
• 81% energy from renewable sources

Social Achievements

• Invested approximately $7.0 million in community support (education, connectivity, health, and socio-economic development)
• Provided free medical care to over 2,000 people
• Conducted skills development workshops for 687 students
• Provided ICT training to approximately 500 people
• Local procurement of $119.4 million
• 4% voluntary employee turnover rate
• Decrease in sexual harassment cases compared with 2021 (using ELSA tool)
• Received the ‘Empresa Segura, Libre de Violencia y Discriminación contra la Mujer’ Gold award

Governance Achievements

• Retained Anti-Bribery certification from ‘Entrepreneurs for Integrity’
• Achieved second place among 16 mining companies in the 2022 MERCO Responsabilidad ESG ranking in Peru
• Received the EMIN award for Mining Excellence

Climate Goals & Targets

Environmental Challenges

• Climate change
• Maintaining high safety standards in underground mining
• Sexual harassment in the mining industry

Mitigation Strategies

• Working towards net zero emissions by 2050, setting interim targets for 2030
• Implementing Safety 2.0 and Seguscore to track and improve safety metrics
• Implementing ELSA to assess and address sexual harassment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Updated Supplier Code of Conduct
• Revised Contracts Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Universal Standards, TCFD

Certifications: DNV Level 7 Occupational Health and Safety Management System, ISO 14001:2015 (EMS aligned)

Third-party Assurance: EY Peru

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EMIN award for Mining Excellence
• ‘Empresa Segura, Libre de Violencia y Discriminación contra la Mujer’ Gold award

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Safety
• Community relations
• Gender diversity
• Responsible business conduct
• Human rights

Environmental Achievements

• Achieved the highest ECO Score since its implementation in 2015 (5.76/6)
• Reduced potable water consumption by 60% since 2015
• Reduced domestic waste per person by 52% since 2015
• Became the first mining company in Peru to secure a green loan
• Mara Rosa project will be 100% powered by renewable energy by 2025

Social Achievements

• Increased local employment to 59% of the total workforce
• Increased the proportion of women in leadership roles to 18%
• Hired nine women who completed the “Women of Gold” programme
• Social investments of approximately $8.2 million in Peru and Argentina
• Improved digital inclusion through the “Conexión Futuro” programme

Governance Achievements

• Improved external sustainability ratings
• Established 2030 ESG ambitions
• Launched an updated Environmental Management System (EMS)
• Launched the Seguscore safety indicator
• Implemented a Compliance and Ethics programme in Brazil

Climate Goals & Targets

Environmental Challenges

• Permitting delays at Inmaculada
• Social and political disturbances in Peru
• Lower resource grades at San Jose
• Cost inflation
• Geopolitical and regulatory challenges in South America

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented stringent cost reduction project at Inmaculada
• Executed hedging strategies for future production
• Strengthened social engagement strategy
• Continued dialogue with governmental authorities and communities

Supply Chain Management

Supplier Audits: 100% coverage in Brazil

Responsible Procurement

• Supplier Code of Conduct
• Local purchasing and hiring protocols

Climate-Related Risks & Opportunities

Physical Risks

• Extreme cold
• Intense rainfall flooding
• Drought
• Lightning/Atmospheric Discharge
• High winds

Transition Risks

• Emerging regulations
• Technology advancements
• Market shifts
• Reputation

Opportunities

• Increased demand for precious metals in green technologies
• Improved ESG rating

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

Third-party Assurance: Ernst & Young (EY) Peru

Awards & Recognition

• Sustainability Leadership Award by the Business Intelligence Group
• Sustainable Goiás Award for the Knowledge Trail