Climate Change Data

Nickel Industries Limited

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

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:2,101,051 tCO2e/year
Scope 1 Emissions:940,808 tCO2e/year
Scope 2 Emissions:1,086,944 tCO2e/year
Scope 3 Emissions:20,828 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:18,248,403 GJ/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:64.99 tCO2e/t Ni eq.

ESG Focus Areas

  • Economic Development
  • Environmental Stewardship
  • Social Responsibility

Environmental Achievements

  • Hengjaya Mine received a 'Blue PROPER' rating, indicating 100% compliance with environmental regulations.
  • Supported mangrove and watershed rehabilitation in Central Sulawesi, covering 1,781 Ha and planting over 2 million trees.
  • Reduced GHG emissions from 2,219,322 tCO2e in 2020 to 2,101,051 tCO2e in 2021.
  • Reduced energy consumption by 830,028 GJ compared to 2020.
  • Installed 450 KWp solar panels at Hengjaya Mine, projected to reduce diesel consumption by 31 million liters over 25 years.

Social Achievements

  • Achieved five million working hours without a lost-time injury at Hengjaya Mine (until October 2021).
  • Supported various education, health services, infrastructure, social, cultural, and religious programs.
  • Funded 18 projects from eight surrounding villages.
  • Increased total training hours at Hengjaya Mine by over 300% compared to 2020.
  • Maintained an 11% employee turnover rate at Hengjaya Mine in 2021.

Governance Achievements

  • Published an Anti-Bribery and Corruption Policy.
  • No reports of corruption or human rights violations in 2021.
  • Appointed its first sustainability manager in Indonesia.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Develop a decarbonisation roadmap.
  • Improve 'Blue PROPER' rating to 'Green PROPER' or 'Gold PROPER'.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic impact on operations.
  • Incomplete datasets for GHG inventory.
  • Lack of specific emission factors for IMIP electricity grid.
Mitigation Strategies
  • Adapted business processes and operations effectively to the pandemic.
  • Used assumptions and extrapolations to address incomplete datasets.
  • Used a market-based approach for emission factors where specific data was unavailable.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Hiring 100% local and national suppliers at the mining site.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products
  • Transition to renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB for Metals and Mining Standard, TCFD for selected disclosure indicators

Certifications: Null

Third-party Assurance: Social Responsibility (SR) Asia

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Nickel matte products for electric vehicle batteries.

Awards & Recognition

  • Blue PROPER Award (Hengjaya Mine)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:3,584,263 tCO2e/year
Scope 1 Emissions:1,770,086 tCO2e/year
Scope 2 Emissions:1,814,177 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:32,875,172 GJ/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:63.93 tCO2e/t Ni eq. in 2022

ESG Focus Areas

  • Economic Development
  • Environmental Stewardship
  • Social Responsibility
  • Ethical Business Practices

Environmental Achievements

  • Hengjaya Mine awarded a Green PROPER rating by the Indonesia Ministry of Environment and Forestry.
  • Received seven trophies at the Environmental and Social Innovation Awards 2022.
  • Earned a silver award at the Asia Sustainability Reporting Rating 2022.
  • Implemented a solar power system at Hengjaya Mine, reducing fuel consumption.

Social Achievements

  • Reduced the number of occupational accidents at Hengjaya Mine, Hengjaya Nickel, and Ranger Nickel compared to previous years.
  • Prioritised local workforces and suppliers, stimulating local economic growth.
  • Implemented various community development programs appreciated by the Morowali government.

Governance Achievements

  • Established a Sustainability Committee to oversee sustainability objectives.
  • Featured in the top half of ESG performers worldwide in the Metals & Mining Industry according to S&P Global.

Climate Goals & Targets

Long-term Goals:
  • Mitigate transition risk toward low-carbon technologies.
  • Implement a mechanism to offset carbon emissions during the transition period.
Medium-term Goals:
  • Invest in renewable energy options and technology.
  • Conduct feasibility studies on switching from coal to natural gas.
Short-term Goals:
  • Optimise fuel and energy consumption.
  • Develop GHG inventory and mitigation strategies.

Environmental Challenges

  • Physical risks from extreme weather events and changing weather patterns.
  • Transition risks from policy changes promoting low carbon, technology shifts, and reputational challenges.
  • Potential for disruptions in operations due to increased disasters.
Mitigation Strategies
  • Water management plans, water recycling, and contingency plans for extreme climate disasters.
  • 'Future Energy' collaboration framework to transition to renewable energy sources.
  • Greening operations and facilities to avoid carbon tax, building reputation as a clean nickel producer, expanding markets for high-grade nickel.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Prioritising local suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Changes in weather patterns
Transition Risks
  • Policy changes
  • Technology shifts
  • Reputational challenges
Opportunities
  • Supplying ore to battery manufacturers.

Reporting Standards

Frameworks Used: GRI Standards, SASB for Metals and Mining Standard, TCFD for selected disclosure indicators

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Social Responsibility (SR) Asia

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Nickel matte

Awards & Recognition

  • Seven trophies at the Environmental and Social Innovation Awards 2022
  • Silver award at the Asia Sustainability Reporting Rating 2022
  • Green PROPER rating for Hengjaya Mine

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:6,633,819 tCO2e/year
Scope 1 Emissions:3,193,569 tCO2e/year
Scope 2 Emissions:3,440,250 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:59,345,846 GJ/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:64.65 tCO2e/tonne of Ni (2023)

ESG Focus Areas

  • Environmental Stewardship
  • Economic Development
  • Social Responsibility
  • Ethical Business Practices

Environmental Achievements

  • Hengjaya Mine received the Green PROPER award for the second consecutive year with the highest score in Indonesia’s nickel sector.
  • Signed an Operation Lease and Service Agreement (OLSA) with PT Sumber Energi Surya Nusantara (SESNA) for a 200-MWp solar project.
  • Added Electric Vehicles (EVs) to the haulage fleet at Hengjaya Mine.
  • Positive final investment decision to invest in Excelsior Nickel Cobalt (ENC), a next-generation HPAL project.

Social Achievements

  • Achieved 16,718,448 LTI-free man-hours across all projects.
  • Partnership with The Cross Sector Development Partnership to support social development projects.
  • Memorandum of Understanding with Hasanuddin University Makassar to provide scholarships to indigenous students.

Governance Achievements

  • No fines for non-compliance with laws and regulations in 2023.
  • No legal actions reported for anti-competitive behavior, anti-trust, and monopoly practices.
  • Established a Sustainability Committee to oversee sustainability policies and practices.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • 50% reduction in carbon intensity by 2035.
  • Energy transition through strategic investments in renewable energy.
Short-term Goals:
  • Optimizing fuel and energy consumption.

Environmental Challenges

  • Economic risks (market volatility, operational risks)
  • Environmental risks (climate change, resource management)
  • Social risks (community relations, social harmony)
Mitigation Strategies
  • Sufficient funding and monitoring cash flow forecasts.
  • Environmental management programs and initiatives.
  • Community initiatives and stakeholder engagement.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Engagement with local suppliers (22% of total vendors/suppliers at Hengjaya Mine).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Long-term shifts in weather patterns
Transition Risks
  • Policy changes
  • Technology shifts
  • Reputational risks
Opportunities
  • Development of energy-efficient products
  • Supplying ore to battery manufacturers

Reporting Standards

Frameworks Used: GRI Standards, SASB: Metals and Mining Standard, IFRS Sustainability Disclosure Standards

Certifications: ISO 45001:2018 (Occupational Health and Safety Management System), ISO 14001:2015 (Environmental Management System)

Third-party Assurance: SR Asia Indonesia

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Nickel matte
  • MHP

Awards & Recognition

  • Green PROPER rating (Hengjaya Mine)
  • Most Promising Transition Award
  • Nusantara CSR Awards
  • Indonesian Sustainable Development Goals (ISDA) award
  • Environmental and Social Innovation Awards (ENSIA)