Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• Shipping disruptions due to COVID-19
• Strict environmental investigations and closures in China
• Rising power costs affecting graphite production
• Power shortages in China
• Difficulties in shipping graphite, squeezing producer margins
• Getting the processing right for battery-grade graphite
• Qualifying graphite for the lithium-ion supply chain

Mitigation Strategies

• Mines reopening as markets recover from COVID-19
• Chinese production ramping up to meet demand
• Increased imports of flake graphite by China
• Syrah Resources reopening its Balama graphite operation
• Development of downstream production of spherical graphite with low/zero HF outside China

Supply Chain Management

Responsible Procurement

• Battery/EV consumers wanting sustainable supply chains

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Sustainability
• Community Development
• Stakeholder Engagement

Environmental Achievements

• ISO:14001 certification at Balama
• Lower carbon emissions footprint of natural versus synthetic graphite
• Implementing initiatives to lower carbon footprint further

Social Achievements

• Balama and Vidalia quarter end Total Recordable Injury Frequency Rate (“TRIFR”) was 0.0
• No positive COVID-19 cases reported at Balama
• Robust Community Development and Stakeholder Engagement Strategy

Governance Achievements

• ISO:45001 certification at Balama
• ISO:9001 certification at Vidalia
• Critical Risk Management Framework embedded across the Group
• Sustainability frameworks guided by GRI, UN Sustainable Development Goals, and International Council on Mining and Metals

Climate Goals & Targets

Environmental Challenges

• Disruption in container shipping market impacting ability to match Balama production and sales with customer demand

Mitigation Strategies

• Focus on re-establishing fines shipments to the Chinese battery supply chain

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, United Nations Sustainable Development Goals, International Council on Mining and Metals

Certifications: ISO 45001, ISO 14001, ISO 9001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Corporate Governance

Environmental Achievements

• Developed the proprietary EcoGrafTM purification process, a non-hydroflouric acid (HF) process, significantly cleaner than the environmentally unfriendly HF processing commonly used in China.

Social Achievements

• Implemented a US$7.5 million community investment package in Tanzania, including a Resettlement Action Plan (RAP), upgraded infrastructure and community facilities, new housing, and assistance with micro-enterprises.

Governance Achievements

• The Company's activities are being developed to respect and adhere to EU regulations regarding battery manufacture to promote sustainability, including responsible sourcing, carbon footprint declaration, traceability, and recycling.

Climate Goals & Targets

Environmental Challenges

• Concerns about Tanzania's mining laws and previous government policies affecting foreign investment.
• Securing development funding for Epanko and Kwinana projects.

Mitigation Strategies

• Positive changes in Tanzanian government policies under the new President, Samia Suluhu Hassan, aimed at attracting foreign investment.
• Well-advanced debt finance negotiations with Export Finance Australia and KfW-IPEX-Bank for the EcoGrafTM and Epanko projects respectively.

Supply Chain Management

Responsible Procurement

• Offtake agreements with German and Japanese customers.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• EcoGrafTM purified spherical graphite