Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Carbon emissions
• Energy use

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Climate Goals & Targets

Environmental Challenges

• spike in the price of lithium
• overall business uncertainty and weaker trading conditions in all but the building and construction sectors
• sales were negatively affected in certain areas such as North America

Mitigation Strategies

• tight financial control
• exploitation of new markets
• strengthening its position in Europe – especially in Germany
• major upgrade of the Melbourne Precious Metals plant
• commitment to carry more buffer stock of raw materials to ensure our customers do not suffer any supply interruption issues

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Carbon Emissions
• Energy Use

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Governance Achievements

• The Group’s Corporate Governance Statement for the year ended 30 June 2017

Climate Goals & Targets

Environmental Challenges

• Ongoing fallout from the collapse of the mining exploration sector
• Geo-political uncertainty involving China and the USA
• Increased demand for lithium placed cost pressures on our core flux business
• Serious downturns in the operations of some of our customers
• Weak conditions in the North American market

Mitigation Strategies

• A number of cost saving initiatives have been implemented to ensure this division remains profitable and competitive
• Tight financial controls
• Maximising the output from the newly installed equipment in Melbourne
• Seeking to profitably exploit new markets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Corporate Governance

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Social Achievements

• Not disclosed

Governance Achievements

• The Board has noted the increasing focus upon introducing and maintaining higher standards of corporate governance for listed public companies

Climate Goals & Targets

Environmental Challenges

• The Company’s share price has languished between 16-22 cents per share.
• Activity in the second half was slower than the first, which was mainly linked to a lower level of mining exploration activity, as reflected in lower Consumable product sales.
• The Scancia flux factory in Quebec was closed in October 2017 and the equipment was shipped to the division’s main factory in Perth.
• The Germany office is still in a loss position.

Mitigation Strategies

• Measures are being implemented to improve sales and profitability.
• The production plant was recommissioned during the second half and is now in full-scale production. It is expected that the new micro-beads flux product offering will allow XRF to expand its market share in FY19.
• Our current expectation is still that the office will be breaking even on a monthly basis within this calendar year.

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Carbon emissions
• Energy use

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Climate Goals & Targets

Environmental Challenges

• The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to report greenhouse gas emissions and energy use. For the measurement period 1 July 2018 to 30 June 2019 the directors have assessed that there are no current reporting requirements, but the Company may be required to do so in the future.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Carbon emissions reduction
• Energy use reduction
• Compliance with National Greenhouse and Energy Reporting Act 2007

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on product orders and sales (Capital Equipment business)
• Short-term impact of COVID-19 on Precious Metals fabrication business orders
• Slowdown in some markets during June quarter due to strict lockdown measures in South Africa, Latin America, Europe, and parts of Asia

Mitigation Strategies

• Continual optimisation of business operations and costs
• Government wages subsidies received
• Reduction in operational costs and higher proportion of direct sales to end-users in Capital Equipment division
• Adjustments to working arrangements to keep employees safe during COVID-19

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Carbon emissions reduction
• Energy use reduction
• Compliance with National Greenhouse and Energy Reporting Act 2007

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic is ongoing and while it had limited financial impact for the consolidated entity up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date.

Mitigation Strategies

• Our international offices in Europe and Canada are able to service customers effectively, during a time of increasing demand.

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Carbon emissions reduction
• Energy use reduction
• Compliance with National Greenhouse and Energy Reporting Act 2007

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Social Achievements

• In March 2023, shares valued at $1,000 were issued to employees eligible to participate in the Company’s employee share scheme, which included the Chief Financial Officer.

Governance Achievements

• The Group’s Corporate Governance Statement for the year ended 30 June 2023 can be found at www.xrfscientific.com/corporate-governance.

Climate Goals & Targets

Environmental Challenges

• Volatile lithium input price
• Lithium chemicals continued to increase in price during the year due to demand from the EV sector.
• Working capital requirements from the lithium price increases began to stabilise during the second half

Mitigation Strategies

• Active management of lithium purchases, stock and flux sales prices supported our margins and ensured that the business performed well during the challenging lithium market conditions.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• xr-Tab binder tablets
• xrTGA

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Carbon emissions
• Energy use
• National Greenhouse and Energy Reporting Act 2007

Environmental Achievements

• Wherever possible, carbon emissions have been limited, and new production techniques adopted to reduce energy use.

Social Achievements

• In March 2024, each employee eligible to participate in the Company’s employee share scheme (including the Chief Financial Officer) received shares valued at $1,000.

Governance Achievements

• The Group’s Corporate Governance Statement for the year ended 30 June 2024 can be found at www.xrfscientific.com/corporate-governance.

Climate Goals & Targets

Environmental Challenges

• Challenges of managing the impact of a falling lithium input price.
• Poor result from our German office due to weaker local economic conditions.

Mitigation Strategies

• An ongoing focus on product quality, new product and production process initiatives, and customer service.
• Ongoing work in our Melbourne plant to enhance production technology, broaden our range of customised products and improve product quality.

Supply Chain Management

Climate-Related Risks & Opportunities