Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Economic
• Social
• Environmental

Environmental Achievements

• Reduced SO2 emissions by 35% at MolymetNos plant.
• Implemented investment plan focused on controlling and reducing emissions at MolymetNos.
• Achieved a 64.2 GJ reduction in energy use across subsidiaries.
• Recycled 46,000 tons of waste.
• 41% recirculation of water in processes.
• Zero lost time injuries at Molynor and Molymet Germany.

Social Achievements

• Defined Molymet's Purpose: "To create value for the evolution of humanity, through products developed by people who think about the wellbeing of the planet."
• Launched Zero Solid Industrial Waste initiative.
• Molymex celebrated its 9th anniversary with the distinction of Socially Responsible Company by the Mexican Center for Philanthropy.
• 25,400 hours of employee training delivered.
• Implemented the LEAN Management philosophy.

Governance Achievements

• Developed Corporate Sustainability Strategy.
• Created Corporate Sustainability Committee.
• Recertified responsible conduct through ASIQUIM.
• Evaluated feasibility of building a windmill in Sadaci.
• Started searching for advisors to develop a corporate Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact while increasing processing capacity.
• Managing risks associated with water and energy consumption.
• Addressing challenges related to the environment and maintaining operational continuity.
• Addressing the need for a complete Scope 3 emissions analysis.

Mitigation Strategies

• Investing in technologies to reduce water and energy consumption.
• Implementing a Comprehensive Risk Management System.
• Implementing the LEAN methodology for continuous improvement.
• Developing a Corporate Sustainability Strategy.
• Investing in projects to reduce emissions and improve efficiency.

Supply Chain Management

Supplier Audits: 2,962 suppliers globally; Evaluated 271 of 279 suppliers at Molynor; monthly evaluation of suppliers at Molymex; social evaluation of new suppliers at Sadaci.

Responsible Procurement

• New Purchasing, Services and Authorization Policy aimed at homogenizing criteria and ensuring equal opportunities for contract awards.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes; use of molybdenum in renewable energy infrastructure.

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 12
• 15
• 16

Contribution to SDGs detailed in the report for each material topic.

Sustainable Products & Innovation

• Molybdenum and rhenium alloy in metallic powder format; arsenic removal from copper concentrates.

Awards & Recognition

• Molymex distinction of Socially Responsible Company by the Mexican Center for Philanthropy.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced SO2 emissions by 59% and SO2 concentration by 64% through modernization of roasting gas cleaning plant 3 (R-PLG3) and optimization of the Emergency SO2 Absorption System.

Social Achievements

• Launched Sustainable Leadership Program, “Value What’s Good” Recognition Program, Employee Relations Policy, and Alcohol and Drugs Policy.
• Supported a local athlete from San Bernardo and Fundación Clínica Familia.

Governance Achievements

• Established MolymetNos S.A. as a subsidiary, separating industrial activity from corporate activity.
• Implemented a shareholder portal on Molymet's website.
• Created a Corporate Shareholders Registry.

Climate Goals & Targets

Environmental Challenges

• Sharp price variations in main products (molybdenum and rhenium), rising from US$13/lb to US$30/lb.
• Russian invasion of Ukraine impacting fuel prices and food security, affecting main markets.
• Political and business context developments.

Mitigation Strategies

• Anticipated circumstances by sending finished products to main consumption centers to reduce impact of increased transportation costs.
• Unprecedented commercial and financial effort to ensure optimal commercial and risk positions.
• Implemented the 2030 Sustainability Agenda.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Biodiversity
• Employee Relations
• Community Engagement
• Diversity, Equity, and Inclusion (DEI)
• Supply Chain Sustainability
• Innovation
• Governance

Environmental Achievements

• Installation of a wind turbine at Molymet Belgium, providing 80% of its electricity from renewable sources.
• Completion of photovoltaic projects at Molymet's Chilean Corporate and R&D buildings.
• MolymetNos and Molynor achieving 100% renewable electricity consumption.
• 81% reduction in SO2 emissions compared to permitted limits in 2023.
• 40% voluntary reduction of SO2 emissions at MolymetNos by 2025.

Social Achievements

• Formalization of Corporate Diversity, Equity, and Inclusion (DEI) Policy.
• Commitment to paying a Living Wage to all employees (implementation from 2024).
• Formalization of Corporate Policy of Social Management and Community Engagement.
• Establishment of the Molymet Bursary program in collaboration with Universidad de Los Andes.
• Successful (near) resolution of collective bargaining with Union 2 at Molynor.

Governance Achievements

• Formalization of Tax Policy aligned with Molymet's Purpose and Values.
• Change of structure: Corporate Vice Presidency of Risk & Compliance now reports to the Directors and Auditing Committee.
• Welcomed the first woman to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Water scarcity
• Gradual climate change regulations
• 62-day strike at Molynor.

Mitigation Strategies

• Medium and long-term plans for water intensity and carbon footprint reduction.
• Short-term action plans to ensure operational continuity.
• Investment in renewable energy sources.
• Developed lines of action to address gaps identified in the 2021 Labor Relations Index (LRI) evaluation.

Supply Chain Management

Supplier Audits: 100% of new suppliers evaluated using social criteria in 2023; Molymex and Molymet Belgium also evaluated environmental criteria.

Responsible Procurement

• Purchasing, Services & Authorization Policy
• Human Rights Policy
• Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Gradual climate change regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Dow Jones Sustainability Index (DJSI), Stakeholders Sustainability Index (SSIndex), EcoVadis, UN Sustainable Development Goals (SDGs), Mining Council Principles, ISO 26000:2010

Certifications: ISO 45001:2018, ISO 14001:2015, ISO 9001:2015, ISO 50001:2018, AS9100:2016, Molybdenum Mark, I-REC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The 2030 Sustainability Agenda aligns with 9 of the 17 UN SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EcoVadis Gold Medal (Molymex)
• Top 5% in Corporate Sustainability Assessment (CSA) in Metals & Mining
• 1st place in “Community Relations and Emergency Response” (MolymetNos)
• Recognition as one of the most innovative companies for women in Mexico (Molymex)