Sibanye-Stillwater

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

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:620,000 tCO2e/year (Scope 1, 2, and 3)

Scope 1 Emissions:1225,000 tCO2e/year (excluding fugitive mine methane)

Scope 2 Emissions:6,806,000 tCO2e/year (market-based)

Scope 3 Emissions:1,506,000 tCO2e/year

Water Consumption:124,628 Ml/year

Carbon Intensity:0.56 GJ/tonne milled (Group)

ESG Focus Areas

Climate Change
Safety and Health
Socioeconomic Development
Diversity and Inclusion
Governance

Environmental Achievements

Earned an A- rating from CDP for Water Security (first-time participation)
Earned a B rating from CDP for climate change
Achieved ISO 14001:2015 certification for SA gold, SA PGM, and US PGM operations
Implemented an Adaptive management plan as part of the US PGM operations’ GNA
Reduced Scope 1 emissions (including fugitive mine methane) by 2.7%

Social Achievements

Administered one or more doses of COVID-19 vaccine to 80% of employees
Transitioned all employees at our SA gold operations to a medical scheme
Increased total percentage of female employees to 14.4% (2020: 13.3%)
No industrial action recorded across the Group in 2021
Launched the virtual COO round-table initiative

Governance Achievements

Established a Board Investment Committee (BIC)
Restructured the Marikana B-BBEE structure
Improved credit ratings from Moody’s and S&P Global

Climate Goals & Targets

Long-term Goals:

Achieve carbon neutrality by 2040
Net zero emissions by 2050

Medium-term Goals:

Achieve 30% renewable energy by 2030
Reduce reliance of operations on external potable water infrastructure to 10% in water-rich jurisdictions and 40% in water-poor jurisdictions by 2030

Short-term Goals:

Reduce water dependence on the Vaal River System by 15% (2020 baseline)
Achieve SBTi-approved Scope 1 and 2 carbon emissions reduction target of 27.3% by 2025 (2010 baseline)

Environmental Challenges

Inflationary pressures – steel, ammonia, labour and electricity
Ongoing management of the financial impact of the COVID-19 pandemic
Increase in fatal accidents
Short-term challenges at US PGM operations
Security of tenure concerns at the SA PGM Hoedspruit exploration project

Mitigation Strategies

Implemented Group-wide initiatives to limit above inflation cost increases
Targeted safety initiatives, including our “Rules of Life” campaign
Management continues to engage with labour unions and employees to reach agreement on wages
Developed alternative sourcing strategies
Various mitigation measures to fill recruitment gaps

Supply Chain Management

Responsible Procurement

R500 million savings in SA supply chain

Climate-Related Risks & Opportunities

Physical Risks

Changes in precipitation levels and droughts

Transition Risks

Regulatory changes (e.g., South African Carbon Tax Act)

Opportunities

Development of energy-efficient products
Growth in green hydrogen market

Reporting Standards

Frameworks Used: GRI, ICMM, TCFD, UNGC, SBTi

Certifications: ISO 14001:2015, ISO 45001

Third-party Assurance: PwC

UN Sustainable Development Goals

SDG 3
SDG 5
SDG 7
SDG 8
SDG 9
SDG 13
SDG 16
SDG 17

Sibanye-Stillwater's Sustainability strategy aligns with the UN SDGs through various initiatives related to health, gender equality, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, climate action, peace, justice and strong institutions, and partnerships for the goals.

Sustainable Products & Innovation

Green metals (PGMs for emission reduction)
Recycled PGMs

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:7823000 tCO2e

Scope 1 Emissions:495000 tCO2e

Scope 2 Emissions:6190314 tCO2e

Scope 3 Emissions:1137000 tCO2e

Renewable Energy Share:13.9%

Total Energy Consumption:26.5 PJ

Water Consumption:138996 Ml

Waste Generated:208796.5 tonnes

Carbon Intensity:0.48 GJ/tonne milled (Group)

ESG Focus Areas

Climate change
Water management and energy supply
Biodiversity
Tailings management
Waste management
Air quality
Heritage
Land management

Environmental Achievements

Achieved an A- score for 2022 CDP climate change submission
Achieved a B- score for 2022 CDP water submission
Submitted Forest CDP for the first time
Limited greenhouse gas (GHG) emissions below the carbon budget
Put 23ML per day back into the Integrated Vaal river system
Significant cumulative reduction of 4,061 Ml of potable water from the 2020 baseline at SA operations (37% reduction)
Positive improvement in biodiversity footprint for East Boulder mine (13%) and Stillwater mine (10%)
Reduced scope 1 emissions by 1.6%
Reduced scope 2 market-based emissions by 9.0%
Reduced scope 3 emissions by 24.5%
Reduced reliance on the Vaal River System by 15% compared to 2020 baseline
Completed closure plan for the MET complex
Installed a moving bed bioreactor at East Boulder Mine to improve water quality
Achieved 96% AEL compliance at SA gold operations and 100% at SA PGM operations
74.8% of general waste at SA operations recycled, reused or refurbished
32,910 tonnes of building rubble diverted from landfill at SA PGM operations and 63,538 tonnes at SA gold operations
Achieved GISTM compliance for 18 out of 21 active TSFs
55% of tailings produced in the US reused for backfill

Social Achievements

Pilot project at Beatrix operations making unused property available for livestock husbandry for local community members and employees
Engagement with livestock owners regarding illegal roaming on Beatrix mine property
Developed closure and rehabilitation plans for all operations, including supporting social closure plans
Successfully executed demolition of surface infrastructure at several sites
Rehabilitated Middelvlei opencast pits

Governance Achievements

Implemented Decipher (a cloud-based tailings management platform) across all operations
Implemented online carbon inventory platform
Implemented electronic waste data capturing system
Aligned climate change, energy, and decarbonisation position statements to ICMM, UN SDGs 7 and 13, and UNFCCC
Aligned reporting and disclosures to TCFD recommendations
Participated in discussions with Minerals Council and National Treasury regarding Phase 2 of the Carbon Tax Act

Climate Goals & Targets

Long-term Goals:

Group carbon neutral by 2040; net zero by 2050

Medium-term Goals:

Development of regional energy solutions to lower relative carbon intensity
Leveraging new technologies for step change reductions in GHG profiles
Planning and trialling large-scale storage and green hydrogen technologies
Roll-out of the carbon offset strategy
Completion of a climate change risk scenario analysis aligned to TCFD requirements
Roll-out and embedding of automated carbon and waste inventories
Ensure alignment of TSF governance requirements with GISTM

Short-term Goals:

Re-alignment and roll-out of key environmental and sustainability targets for 2023
Integration of new assets and projects in terms of sustainability/environmental alignment and standardisation
Reset Group decarbonisation pathway aligned to SBTi
Achieve a 40-45% real risk reduction in Residual Risk Ratings by end of Q4 2023 for all identified environmental risks
Limiting GHG emissions to below the 2023 stated carbon budgets
Achieve water use intensity targets for SA gold and PGM operations
Reduce overall reliance on the Integrated Vaal River System
3% reduction of closure liability from the 2022 base year
Establish baselines to qualitatively measure % loss/gain based on hectare equivalents measured in annual BDP
Development and setting of science-based limits for discharges
Drive the implementation of the Waste management hierarchy and introduction of the concept of a circular waste economy
Maintain ISO 140001 certification at various operations

Environmental Challenges

Physical impact of climate change at US operations
Geographical concentration of SA operations with majority of scope 2 emissions stemming from coal-based utility provider
Delays in International Cyanide Management Code certification
South African Carbon Tax Act
Eskom load curtailment
Land claims delaying SA gold solar PV project
Eskom grid access process and environmental permits delaying wind projects
Supply chain delays affecting US PGM water treatment plant improvements
Illegal activities impacting water quality at Cooke operations
Erroneous and unachievable water use licence limits
Acid mine drainage risk at SA gold operations

Mitigation Strategies

Developing regional carbon neutrality pathways
Accelerating decarbonisation efforts
Developing several energy solutions to mitigate energy security risk
Securing SIP status for renewable energy projects
Overcoming land claim issues for solar PV project
Implementing demand-side energy management interventions
Planning capital improvements to water treatment plants
Implementing action plans to improve water quality
Seeking approval for rewatering at Ezulwini to cease discharge
Implementing a five-year dust management plan at Rustenburg and Kroondal sites
Developing a long-term strategy for increased water flows at US PGM operations
Installing moving bed bioreactors at US PGM operations
Implementing the recommendations of the TCFD
Incorporating projections for future carbon tax liabilities
Participating in discussions with government and industry bodies

Supply Chain Management

Responsible Procurement

Engagement with value chain partners on emission targets and decarbonisation plans

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather (Montana flooding)
Rainfall exceeding TSF design

Transition Risks

South African Carbon Tax Act
Regulatory changes
Market risks associated with being a high emitter

Opportunities

Development of renewable energy projects
Recycling of spent autocatalysts

Reporting Standards

Frameworks Used: CDP, TCFD, ICMM, UN SDGs, GHG Protocol, ISO 14001, GISTM, BDP

Certifications: ISO 14001:2015, ISO 50001 (Sandouville)

Third-party Assurance: PwC

UN Sustainable Development Goals

SDG 6 (Clean water and sanitation)
SDG 7 (Affordable and clean energy)
SDG 9 (Industry, innovation and infrastructure)
SDG 13 (Climate action)
SDG 15 (Life on land)

Initiatives contribute to these goals through water conservation, renewable energy development, waste reduction, climate change mitigation, and biodiversity protection

Awards & Recognition

2021 Energy Project of the Year (Driefontein shaft 8 project)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

Decarbonisation
Capital allocation
Profitability

Environmental Achievements

Group decarbonisation accelerated with three renewable energy projects providing 267MW of solar and wind energy, financed through a third-party power purchase agreement (PPAs) which assists with capital preservation. These projects will provide approximately 15% of our SA electricity requirements and enables the Group to reduce its scope 2 emissions.

Social Achievements

5 Equivalent of 1.5% of declared dividends allocated to Sibanye-Stillwater Foundation NPC – 5 established in H2 2021 (registered H2 2023) total allocation to date of R212m (US$11m ). R42m (US$2m) utilised from the Sibanye Foundation for projects at the SA and EU regions

Governance Achievements

Governance of our financial performance and reporting is overseen and monitored by the Audit Committee, on behalf of the Board.

Climate Goals & Targets

Environmental Challenges

Earnings and cashflow impacted by steep decline in PGM commodity prices
Lower medium to long term prices (PGM and nickel), operational constraints, above inflation increases and deferral of the Burnstone project to preserve cash in terms of the Group’s Capital allocation framework, resulted in an impairment of R47.5bn (US$2.6bn) across the Group
Loss for the period of R37.4bn (US$2bn) compared to a profit of R19.0bn (US$1.2bn) for 2022
Localised operational challenges in South Africa (a factor in load curtailment and copper cable theft) continued to impact production, as did the floods and heavy rainfall at both our Century zinc retreatment operation and Sandouville nickel refinery.

Mitigation Strategies

Focus on meeting production targets, capitalise on cost saving initiatives and responsibly preserve cash on our balance sheet.
US$500m convertible bond provides financial flexibility at reasonable cost, partially designated to fund the Reldan acquisition and the balance to enable further delivery on our strategic growth objectives
Cost-saving initiatives included the closure of Kloof 4 shaft, the further repositioning of US PGM operations for ongoing decline in 2E basket price, the deferral of capital investment in Burnstone project and the restructuring at our SA PGM operations which resulted in the closure of Simunye shaft, rightsizing of Siphumelele and Rowland shafts, with the conditional operations at 4 Belt shaft.
Implementation of non-debt sources of financing and/or liquidity including pre-pays and streams
Implementing cost saving initiatives and capital preservation in light of a challenging operating environment