Environmental management

OVERVIEW

To steer our dedication to environmental responsibility, we have formulated five Group policy declarations: environmental stewardship (updated in 2021), water stewardship, tailings management, materials and supply chain stewardship (also updated in 2021), and climate change. These policies, in conjunction with our mine closure guideline, outline our primary areas of focus.

Our commitment is grounded in rigorous adherence to local laws and regulations, as well as conformity with various prominent external environmental and reporting standards. We are resolute in our commitment to environmental responsibility, which necessitates averting or, when necessary, mitigating any adverse environmental consequences arising from our operations, with a particular emphasis on our relationships with host communities. Our regional environmental management strategies and proactive engagement and communication with stakeholders regarding environmental concerns bolster this commitment.

In 2021, we undertook an extensive process to identify our principal ESG priorities and create comprehensive strategies to attain ambitious 2030 targets for six of these priorities. In the environmental realm, our key strategic ESG-related priorities encompass:

• Reducing our net Scope 1 and 2 carbon emissions by 30% and absolute emissions by 50% (from our 2016 baseline) and achieving net-zero emissions by 2050 (p68)
• Maintaining a record of zero serious environmental incidents annually (p65)
• Implementing the GISTM across our operations by 2025 and reducing the number of active upstream raised Tailings Storage Facilities (TSFs) from five to three (p71)
• Decreasing our freshwater consumption by 45% from our 2018 baseline and recycling and reusing 80% of our total water usage (p66)

Our unwavering commitment to critical control management consistently results in outstanding performance on our internal environment, health, and safety (EHS) scorecards. For the second consecutive year, all operations have surpassed our internal goal of at least 80% compliance with these scorecards.

Each of our operations holds certification under the ISO 14001 environmental management system, with the exception of Cerro Corona, which does not employ cyanide, yet is certified in accordance with the International Cyanide Management Code.

Group environmental performance

	2021		2020	2019	2018	2017
Environmental incidents (Level 3 – 5)1	–		–	–	2	2
Environmental incidents (Level 2)1	7		12	37	68	83
Water withdrawal (Gℓ)	18.5		21.7	22.3	21.2	33
Freshwater withdrawal (Gℓ)	9.4		10	14.2	14.5	14.8
Water recycled/reused (% of total)	75		71	68	66	57
Total energy use (PJ)	13.90		13.13	12.50	11.63	12.18
Electricity purchased (TWh)	1.28		1.20	1.25	1.28	1.37
Renewable electricity (% of total, excluding hydro)2	4.3		3.2	0.2	–	–
Diesel consumption (TJ)	7,121		6,788	6,973	6,599	6,765
Scope 1 – 2 CO2 emissions (kt)3, 4, 5	1,714		1,606	1,611	1,506	1,611
Scope 3 CO2 emissions (kt)3, 4, 5	542		518	484	484	485
Mining waste and tailings (Mt)	213		200	189	190	212
Gross closure cost estimate (US$m)	510		467	436	400	381

1	Environmental incidents at Levels 1 and 2 refer to minor incidents or non-conformances with minimal or short-term effects. A Level 3 incident indicates limited non-conformance or non-compliance with ongoing but restricted environmental impact. Levels 4 and 5 incidents involve significant non-conformances or non-compliances, potentially leading to long-term environmental damage, posing risks to the company or operation, and having the potential to harm the company's reputation. Our operations also comply with all regulatory environmental reporting requirements in their respective countries of operation.
2	In March 2022, Cerro Corona received certification confirming that its 2021 grid electricity supply was entirely renewable. As a result, 12.5% of Golden Mine Projects' electricity consumption in 2021 came from renewable sources. We will revise our 2021 and previous data once we have conducted a thorough review of this new information.
3	The CO2 emission figures include emissions from our head offices.
4	Scope 1 emissions originate directly from sources managed by the Company, Scope 2 emissions are indirect emissions resulting from the production of electricity used by the Company, and Scope 3 emissions are indirect emissions occurring in the value chain of the Company's activities.
5	We have revised emission data for the Group, West Africa, and the Americas for the years 2016 to 2020 due to updated emission factors in accordance with ISO 14064.