Climate Change Data

Arcadium Lithium plc

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:112,614 tonnes CO2e
Scope 1 Emissions:92,748 tonnes CO2e
Scope 2 Emissions:19,866 tonnes CO2e
Renewable Energy Share:1.3%
Total Energy Consumption:2,104,115 GJ
Water Consumption:3,289,463 m3
Waste Generated:5,515,293 kg
Carbon Intensity:2.4 tonnes CO2e/product tonne produced

ESG Focus Areas

  • Climate Change
  • Water Stewardship
  • Waste Reduction
  • Occupational Health & Safety
  • Community Development
  • Diversity, Equity & Inclusion
  • Responsible Sourcing
  • Corporate Governance

Environmental Achievements

  • Achieved a 41.98% decrease in waste disposed intensity against the 2019 baseline.
  • Reduced power consumption by 30% at the Zhangjiagang plant by installing variable frequency controllers on cooling water recirculation pumps.
  • Completed Life Cycle Assessments (LCAs) for Lithium Carbonate and Lithium Hydroxide.

Social Achievements

  • Achieved a Total Recordable Incident Rate (TRIR) of 0.11 for employees.
  • Launched a three-month mental health awareness campaign.
  • Expanded the Community Relations program in Argentina, investing $429,000 in health, nutrition, education, training, and community development.
  • Created 162 jobs aligned with the Local Employment Policy.

Governance Achievements

  • Achieved a Gold rating from EcoVadis, placing Livent in the top 5% of assessed companies.
  • Implemented the Supplier Sustainability Policy.
  • Began a third-party assessment using the Initiative for Responsible Mining Assurance (IRMA) Standard.

Climate Goals & Targets

Long-term Goals:
  • Achieve overall carbon neutrality by 2040 (Scope 1, 2 and 3).
Medium-term Goals:
  • Reach Lithium Carbonate production capacity in Argentina of 100,000 metric tons by the end of 2030.
  • Reduce greenhouse gas (GHG) intensity by 30% across Livent operations by 2030.
  • Transition 30% of the company’s energy mix to renewable sources by 2030.
Short-term Goals:
  • Increase Lithium Hydroxide production capacity to 55,000 metric tons by end of 2025.
  • Add 20,000 metric tons of Lithium Carbonate production capacity by end of 2023.

Environmental Challenges

  • Uncertainty regarding the physical impacts of climate change on operations.
  • Increased energy and water intensity due to expansion activities.
Mitigation Strategies
  • Developed an operational framework to achieve 2030 and 2040 sustainability goals, including GHG, water, and waste reduction.
  • Incorporated sustainability considerations into expansion project planning.
  • Exploring opportunities to improve the renewable energy mix and reduce emissions.
  • Implementing water reuse/recycling optimization technologies to reduce water intensity.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Sustainability Policy
  • Supplier Sustainability Program
  • Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in rainfall, storm patterns, water shortages, and temperatures.
Transition Risks
  • Stringent customer and regulatory requirements to accelerate GHG reduction.
Opportunities
  • Expanded business opportunities due to growing concerns about climate change and related regulations.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

Third-party Assurance: ERM CVS

Sustainable Products & Innovation

  • LIOVIX® lithium metal product

Awards & Recognition

  • EcoVadis Gold rating

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:115,272 tonnes CO2e
Scope 1 Emissions:103,465 tonnes CO2e
Scope 2 Emissions:11,807 tonnes CO2e (market-based)
Scope 3 Emissions:273,135 tonnes CO2e
Renewable Energy Share:1%
Total Energy Consumption:2,203,665 GJ
Water Consumption:3,320,211 m3
Waste Generated:5,829,548 kg
Carbon Intensity:2.4 tonnes CO2e/Product tonne produced (2022)

ESG Focus Areas

  • Climate Change
  • Water Stewardship
  • Waste Reduction
  • Community Relations
  • Occupational Health & Safety
  • Diversity, Equity & Inclusion
  • Human Rights
  • Responsible Sourcing
  • Corporate Governance

Environmental Achievements

  • Reduced waste disposed intensity by 40.88% against the 2019 baseline.
  • Completed ISO-compliant LCAs for 23 products ahead of schedule.
  • Purchased 23,698 MWh of I-RECs, resulting in Zhangjiagang plant using 100% renewable electricity for the second year in a row.
  • Completed the onsite phase of the voluntary IRMA independent assessment of operations at Salar del Hombre Muerto, Argentina.

Social Achievements

  • Maintained strong safety performance with zero fatalities and a TRIR of 0.18 for employees and 0.12 for contractors.
  • Improved community engagement and development work in Argentina with increased local hiring and economic investment.
  • Strengthened supply chain checks and human rights training for all employees.
  • Invested in employees based on findings of the Global Employee Engagement Survey.
  • Advanced DE&I program, resulting in notable improvements in gender and racial diversity in key roles.

Governance Achievements

  • Completed first ever global Scope 3 screening of GHG emissions and initial disclosure of global NOX and SOX air pollutants.
  • Implemented new grievance mechanisms in Argentina.
  • All executives had sustainability goals tied to performance assessments and compensation.

Climate Goals & Targets

Long-term Goals:
  • Achieve overall carbon neutrality by 2040 (Scope 1, 2 and 3).
Medium-term Goals:
  • Reach Lithium Carbonate production capacity of 100,000 tonnes at Salar del Hombre Muerto by the end of 2030.
  • Transition 30% of the company’s energy mix to renewable sources by 2030.
  • Reduce GHG intensity by 30% across Livent operations by 2030.
Short-term Goals:
  • Double Lithium Hydroxide production capacity to 55,000 tonnes by the end of 2025.
  • Reduce water intensity by 10% to 30% across Livent operations by 2030.

Environmental Challenges

  • Potential physical impacts of climate change on operations (changes in rainfall, water shortages, extreme weather events).
  • Stringent customer and regulatory requirements to accelerate GHG and water use reduction initiatives.
  • Significant portion of total emissions from Scope 3 emissions.
Mitigation Strategies
  • Developing solutions to reduce the use of natural gas and diesel in electricity production at Fénix facility.
  • Assessing ways to connect operations to green energy grids.
  • Optimizing existing processes.
  • Conducting a global Scope 3 screening of GHG emissions.
  • Purchasing green power and using I-RECs and carbon offsets.

Supply Chain Management

Supplier Audits: Critical suppliers audited every three years; Bottleneck/Leverage suppliers every five years; Routine suppliers as needed.

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Sustainability Policy
  • Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in rainfall
  • Water shortages
  • Extreme weather events
Transition Risks
  • Stringent customer and regulatory requirements
Opportunities
  • Growth of electric transportation and shift away from fossil fuels

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, IATF 16949

Third-party Assurance: ERM CVS

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • LIOVIX® lithium metal formulation

Awards & Recognition

  • Benchmark Mineral Intelligence ESG ranking – Benchmark Approved
  • EcoVadis Gold sustainability rating (three years in a row)
  • Livent U.K. received the 2022 Chemicals Northwest Operational Excellence Award, the 2022 Chemical Industries Association (CIA) Skills Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Allkem: 129,879 metric tons CO2e (Scope 1 & 2); Livent: 118,576 metric tons CO2e (Scope 1 & 2)
Scope 1 Emissions:Allkem: 129,708 metric tons CO2e; Livent: 104,509 metric tons CO2e
Scope 2 Emissions:Allkem: 172 metric tons CO2e; Livent: 14,067 metric tons CO2e (market-based)
Scope 3 Emissions:Allkem: 464,131 metric tons CO2e; Livent: 258,965 metric tons CO2e
Renewable Energy Share:Allkem: 0.02%; Livent: 1%
Total Energy Consumption:Allkem: 1,936,938 GJ; Livent: 2,266,289 GJ
Water Consumption:Allkem: 1,667 ML; Livent: 3,422,624 m3
Waste Generated:Allkem: 2,116 metric tons; Livent: 7,039 metric tons
Carbon Intensity:Allkem: 2.06 metric tons CO2e/t LCE; Livent: 2.39 metric tons CO2e/product ton produced

ESG Focus Areas

  • Climate Change
  • Natural Capital
  • Shared Value
  • Human Capital
  • Sustainable Supply Chain
  • Governance

Environmental Achievements

  • Completed first "cradle to grave" LCA for lithium carbonate produced at Olaroz, incorporating analysis of environmental impact beyond shipment.
  • Completed LCA of Livent’s lithium metal formulation, LIOVIX®, demonstrating less material use and smaller environmental footprint than conventional Lithium-Ion batteries.
  • Recycled 52.3% of waste at Allkem and 38.7% at Livent.

Social Achievements

  • Launched organization-wide learning management systems (LMS) at Allkem and Livent.
  • Over 400 Allkem employees participated in the Leadership Academy program.
  • Livent’s Black Employee Network ERG hosted a professional networking event at the 49th Annual National Society of Black Engineers Conference.

Governance Achievements

  • Established a Corporate Responsibility Committee reporting to the Board’s Audit Committee to monitor compliance with the Code of Ethics.
  • No incidents involving violations of rights of communities or indigenous peoples at Allkem or Livent in 2023.
  • No significant fines or non-monetary sanctions for non-compliance with laws and/or regulations at Allkem or Livent in 2023.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve at least 26% women employees at Sal de Vida project by 2030.
Short-term Goals:
  • Implement new DE&I governance approach and structure.
  • Increase percentage of women in manufacturing roles.

Environmental Challenges

  • Managing effluents, air emissions, and waste in remote locations.
  • Addressing climate-related risks to operations (heat stress, water stress, extreme weather events).
  • Maintaining water availability in light of increasing demands and climate variability.
Mitigation Strategies
  • Implementing guidelines from ANCOLD, DMIRS, CDA, and TSM for tailings management.
  • Conducting climate risk assessments considering physical risks under different emissions scenarios.
  • Implementing comprehensive water monitoring programs and using hydrogeological models to optimize water withdrawals.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Communicating Code of Conduct to key suppliers.
  • Including clauses in master supply agreements outlining expectations for mitigating modern slavery risks.

Climate-Related Risks & Opportunities

Physical Risks
  • Heat stress
  • Water stress
  • Extreme weather events
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO

Third-party Assurance: Allkem: Ernst & Young; Livent: ERM CVS

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • LIOVIX® printable lithium formulation.

Awards & Recognition

  • Livent Bessemer City awarded Business of the Year 2023.
  • Arcadium Lithium Bromborough finalist for 2024 Chemicals Northwest Corporate Social Responsibility Award.