South32 Ltd. · ASX:S32
South32 — ESG Presentation (October 2021)
37 slides from South32's sustainability presentation, Oct 18, 2021
Slide 1: 2021 South32 Sustainability Briefing
18 October 2021 South32 Limited (Incorporated in Australia under the Corporations Act 2001 (Cth)) (ACN 093 732 597) ASX / LSE / JSE Share Code: S32 ADR: SOUHY ISIN: AU000000S320 south32.net 2021 SOUTH32 SUSTAINABILITY BRIEFING South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) will be hostin
Slide 2: Sustainability Briefing
SUSTAINABILITY BRIEFING 18 October 2021
Slide 3: Acknowledgment of Country and Sustainability Strategy
SUSTAINABILITY ACKNOWLEDGMENT AND STRATEGY OF COUNTRY Graham Kerr
Slide 4: Agenda
AGENDA 1. Delivering on our purpose 2. Our approach to sustainability 3. Protecting and respecting our people 4. Addressing climate change KAREN WOOD GRAHAM KERR KELLY O’ROURKE Chair Chief Executive Officer Chief Legal and External Affairs Officer 5. Operating ethically and responsibly 6. Partnering
Slide 5: Important Notices
IMPORTANT NOTICES • This presentation should be read in conjunction with the “2021 Sustainable Development Report” released on 3 September 2021, which is available on South32’s website (www.south32.net). Figures in italics indicate that an adjustment has been made since the figures were previously r
Slide 6: Our Purpose
OUR PURPOSE To make a difference by developing natural resources, improving people’s lives now and for generations to come We are trusted by our owners and partners to realise the potential of their resources SLIDE 5
Slide 7: Our Strategy
OUR STRATEGY Our purpose is underpinned by a simple strategy UNLOCK OPTIMISE the full value of our business through our IDENTIFY our business by working people, innovation, and pursue opportunities safely, minimising our projects and technology. to sustainably reshape our impact, consistently busine
Slide 8: Our Sustainability Pillars
OUR SUSTAINABILITY PILLARS Our approach to sustainability focuses on five interconnected pillars that are material to our business and stakeholders, and which support the United Nations Sustainable Development Goals SLIDE 7
Slide 9: Protecting and Respecting Our People
PROTECTING AND RESPECTING OUR PEOPLE By providing a safe, secure and inclusive workplace we are unlocking the full potential of our people We remain committed to three key areas that have guided our response from the beginning of the pandemic Our response to COVID-19 Keeping our people safe and well
Slide 10: Addressing Climate Change
ADDRESSING CLIMATE CHANGE We are decarbonising our operations, reshaping our portfolio and supporting the transition to a low carbon future Since demerger we have: Committed to supporting the objectives of the Paris Agreement Set our long-term goal of net zero operational carbon emissions by 205
Slide 11: A Portfolio for a Low Carbon Future
A PORTFOLIO FOR A LOW CARBON FUTURE We are actively reshaping our portfolio to increase our exposure to commodities important in a low carbon future South32 FY21 Underlying EBITDA2,3 Commodities Applications Portfolio opportunities 3% Multiple projects in execution at Cerro Matoso to Used in electri
Slide 12: Our Operational Carbon Emissions
OUR OPERATIONAL CARBON EMISSIONS Our carbon emissions are concentrated in four operations and this is where our focus lies Scope 1 and 2 carbon emissions (% FY21, excluding SAEC and TEMCO) Mozal Aluminium Worsley Alumina Primary source Consumption of carbon anodes in Primary source Combustion of ene
Slide 13: Our Approach to Climate Change
OUR APPROACH TO CLIMATE CHANGE A simple approach that is embedded within our strategy Decarbonising our operations Reshaping our portfolio Efficiency projects Low-carbon energy Reshaping our portfolio through the lens of our climate commitments To reduce our emissions and target other benefits The t
Slide 14: Our Decarbonisation Plans
OUR DECARBONISATION PLANS A three phased approach to decarbonising our major exposures Medium-term Long-term Short-term 50% by 20351 Net zero by 2050 Natural gas Processing Worsley Alumina Efficiency projects Coal to natural gas to renewables technologies Hillside Aluminium AP3XLE feasibility study
Slide 15: Worsley Alumina
WORSLEY ALUMINA Transitioning to lower carbon energy for steam generation Efficiency projects A (a) PFS for the mud-washing project expected to complete in H2 FY22 Progressing pipeline of projects through study phases Low-carbon energy Energy demand is driven by need for steam in the Bayer process(a
Slide 16: Hillside Aluminium
HILLSIDE ALUMINIUM Working to identify options to secure green electricity and a sustainable future for the smelter Hillside Aluminium carbon emissions Efficiency projects An efficient smelter Electricity from Targeting further gains in energy efficiency, with Hillside’s performance operating at car
Slide 17: Illawarra Metallurgical Coal
ILLAWARRA METALLURGICAL COAL An assessment of options is underway to determine the preferred pathway for Illawarra Metallurgical Coal Development options Decarbonisation plans Following the NSW Independent Planning Commission (IPC) refusal of our application for Dendrobium Next Domain (DND) in Q3 FY
Slide 18: Our Scope 3 Carbon Emissions
OUR SCOPE 3 CARBON EMISSIONS Our focus is on partnerships, industry engagement and innovation to address value chain emissions Scope 3 carbon emissions Scope 3 carbon emissions (Mt CO2-e) (% FY21, excluding SAEC and TEMCO) SAEC and TEMCO were 42% of our FY21 We continue to assess a Scope 3 target wi
Slide 19: Our Capital Management Framework
OUR CAPITAL MANAGEMENT FRAMEWORK Our disciplined approach to capital allocation can deliver shareholder value and support our climate commitments ROIC • Decarbonisation projects assessed on a range of factors including emissions abatement, return on investment and value at risk • US$40-50M targeted
Slide 20: Commodities for a Low Carbon Future
COMMODITIES FOR A LOW CARBON FUTURE Demand for most of our commodities would grow significantly with the uptake of low carbon technologies FY21 Underlying 2029-2050 average commodity demand EBITDA2,3 in 1.5°C scenario vs. base case10 0 100 200 Base and 43% Nickel precious metals Zinc Copper Silver L
Slide 21: Aluminium and Alumina
ALUMINIUM AND ALUMINA Aluminium is a key metal for a low carbon future Aluminium intensity in the auto sector will continue to rise as vehicle fleets move to electric Demand Power infrastructure and renewable energy will see increased utilisation of aluminium Aluminium to benefit from elimination of
Slide 22: Manganese
MANGANESE Ongoing requirement in steel production and recycling, and rapidly growing battery market Manganese demand supported by modest rise in primary steel demand Demand With rising electric vehicle production and batteries penetration, manganese demand in batteries is expected to become more mat
Slide 23: Operating Ethically and Responsibly
OPERATING ETHICALLY AND RESPONSIBLY Respecting human rights is at the core of our sustainability approach We respect all internationally recognised human rights Our approach We focus our efforts on people most vulnerable to harm Completed five human rights impact assessments on our communities in th
Slide 24: Partnering with Local Communities
PARTNERING WITH LOCAL COMMUNITIES We invest in our local communities, in collaboration with them, to reflect their priorities FY21 community investment11 US$22.2M Protecting and Addressing Operating ethically Partnering with Managing our respecting our people climate change and responsibly local com
Slide 25: Our Approach to Cultural Heritage
OUR APPROACH TO CULTURAL HERITAGE We have a critical role to play in preserving cultural heritage across our global footprint We are implementing improvement Our approach is aligned Our senior leaders are actions identified in our review of with global standards responsible for cultural heritage cul
Slide 26: Managing Our Environmental Impact
MANAGING OUR ENVIRONMENTAL IMPACT We are committed to protecting natural resources as well as the surrounding ecosystems Our approach is centred on promoting better water use, effective catchment management and improved water security Water We have taken action to address our exposure to water risk,
Slide 27: Summary
SUMMARY Our purpose is to make a difference by developing natural resources, improving people’s lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources We are committed to We aim to create enduring Sustainable development is managi
Slide 28: Q&A
Q&A For more information please refer to our 2021 Annual Reporting Suite We will now be opening the session up to questions If you would like to ask a question please pause the broadcast and click the link for audio questions Note that there may be a short delay in switching between the broadcast an
Slide 29: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 30: Building a Sustainable Future
BUILDING A SUSTAINABLE FUTURE Sustainable development has been a focus since demerger Achieved first short-term carbon emissions target Announced new 50% reduction target Established values, policies Completed review of and frameworks at demerger Set initial water targets for cultural heri
Slide 31: Our Board
OUR BOARD We have a skilled, experienced and diverse board to provide oversight of sustainability Board composition Sustainability board skills matrix Gender diversity 38% Male Female 62% Risk management Health and safety Environment and climate change Region of nationality 13% Australia South Afric
Slide 32: Remuneration Framework
REMUNERATION FRAMEWORK We have enhanced our remuneration framework to align with our commitment to decarbonise and reshape the portfolio We have increased the sustainability and finance weightings We have modified our long-term incentive plan to include in our STI, with no LTI overlap performance on
Slide 33: Our Approach to Water
OUR APPROACH TO WATER We are taking action to address our exposure to water risk, investing in infrastructure and minimising our impact We have set contextual water targets Our operations exposed to water stress(a) • Worsley Alumina: 10% reduction in water demand by FY28 • Hillside Aluminium: improv
Slide 34: Our Approach to Tailings Management
OUR APPROACH TO TAILINGS MANAGEMENT We view the safe and reliable management of tailings dams as part of our license to operate 27 tailings dams across our operated sites Our approach is consistent with We are implementing the Global Industry • Average height 20.9 m ICMM and ANCOLD guidelines Standa
Slide 35: Our Approach to Tailings Management
OUR APPROACH TO TAILINGS MANAGEMENT Our operations use various techniques We have undertaken significant work to We use state-of-the-art monitoring tools to achieve dry and dense tailings understand the properties of our tailings to proactively manage our dams Operational performance dashboard infor
Slide 36: Footnotes
FOOTNOTES 1. Compared to our FY21 baseline of 20.7Mt. The FY21 baseline is actual emissions of 21.6Mt less South Africa Energy Coal and TEMCO (0.9Mt) which were divested in the period. The baseline will be adjusted for any other material acquisitions or divestments. 2. Underlying EBIT is profit befo
Slide 37: South32
SOUTH32