12 OUR APPROACH TO SUSTAINABILITY of global nickel SUPPLY IN 2025 used to manufacture stainless steel 62% Centaurus considers sustainability fundamental to long-term value creation and integrates ESG considerations into all aspects of strategy, risk management and operational planninga. ESG INTEGRATION We believe that integrating ESG considerations from the outset of project development is essential for creating resilient and long-term value. Our approach includes: > Strategic planning: ESG is a core component of our strategic planning process, informing decisions on capital allocation, project design and growth opportunities. > Risk management: sustainability-related risks, such as climate change, community relations, and environmental approvals, are integrated into our company-wide enterprise risk management framework. Nickel plays a critical role in modern economies and the global energy transition. Its biggest use is in producing metal alloys, with approximately 62% of global nickel production currently used to manufacture stainless steel. More recently, nickel is seen as one of the key industrial metals powering the clean energy revolution because of its use in the production of lithium-ion (Li-ion)batteries. Future production from Jaguar is expected to contribute to technologies supporting decarbonisation and energy storage. Centaurus recognises the global concern over climate change and is committed to the drive towards energy efficiency and the adoption of strict carbon emissions targets by international governments. We actively promote the continued interest in renewable energy technologies involving batteries and energy storage. Enabling clean energy solutions is central to Centaurus’ efforts to tackle climate change. In late 2021, the Company adopted a formal ESG policy framework. This framework is based on the recommendations and principles of two internationally recognised ESG authorities: > Towards Sustainable Mining (TSM) Principles > Principles of Responsible Investment (PRI) The TSM standard, developed by the Mining Association of Canada (MAC), is a globally recognised sustainability program that supports mining companies in managing key environmental and social risks. It provides a set of tools and indicators to drive performance and ensure that key mining risks at any operation are managed responsibly. The most important Mining Associations in the Brazilian mining industry, IBRAM and Agency for Development and Innovation of Brazil’s Mining Sector (ADIMB), have both endorsed and promote the TSM Principles. Centaurus is an active member of both associations. Adoption of these principles is voluntary, yet the Company sees wide-reaching benefits in how we manage and report community relations, environmental sustainability, and the health and safety of our employees and the community. A summary of the guiding Principles of TSM, and how Centaurus is tracking against these, is presented at the end of this Sustainability Report. The PRI defines responsible investment as a strategy and practice to incorporate environmental, social and governance factors in investment decisions and active ownership. The PRI is a global organisation that encourages and supports the uptake of responsible investment practices within the investment industry. It was created as an investor initiative in partnership with the United Nations Environment Programme (UNEP) Finance Initiative and the UN Global Compact. Centaurus’ ESG program combines the TSM and PRI principles to guide our actions throughout the exploration, development and operational phases of all our projects. Since the Company started business in Brazil, our approach to exploration and project development has been based on a commitment to sustainability. Along this journey, we have learned important lessons and our approach to sustainability has evolved as we learn more about the minerals we target, their use in combating climate change and the country and communities in which we operate. Our approach to sustainability can be divided into four key focus areas – Environment, People, Community and Governance. We continue to evolve our governance frameworks to ensure that integrity across all our business functions remains robust, and that our actions are ethically, socially and environmentally right for all our stakeholders.
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