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KRR: CA

Sustainability

Strategy

Karora’s ESG Position Statement

At Karora, Environmental, Social, and Governance (ESG) factors are directly linked with our core strategic objectives. The way that we manage ESG factors has a direct link to the success of our business. ESG factors can have significant impacts on our operations, employees, contractors, suppliers, local communities, and ultimately, the long-term value of our company. While they are inextricably linked, our Vision, Mission, and Values directly reinforce our approach and commitment to ESG.

Our ESG Commitment

We support the objectives of the Paris Agreement and the Glasgow Climate Pact and recognize the critical role of the global mining sector in providing the metals necessary for the transition to low carbon energy. The management of ESG factors is in strong alignment with our overall commitment to safe and responsible mining, to strong governance, and to enhancing the role of the minerals and metals sector to support global sustainable development.

We believe that transparency and accountability to our investors and other stakeholders are important. We are committed to adhering to market-leading, investor-preferred ESG disclosure approaches.  To this end, we have adopted leading ESG reporting frameworks –  the Sustainability Accounting Standards Board (SASB) Standards and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) – for our annual ESG and climate change reporting. 

Governance and Oversight of ESG Factors

Karora’s Board of Directors oversees the company’s ESG program and all related sustainability matters. During its quarterly meetings, the Board reviews the status of Karora’s various ESG initiatives, considers related recommendations, and provides input as to the overall direction of the program.

The Board is supported in its responsibility for oversight of Karora’s ESG program by the Senior Vice President (SVP), Technical Services and Sustainability. The SVP, Technical Services and Sustainability has the highest level of management accountability for ESG and is responsible for identifying, assessing, and managing Karora’s ESG risks and opportunities, including those related to climate change. The SVP, Technical Services and Sustainability reports to the Board on ESG and sustainability issues on a quarterly basis and works closely with Karora’s Chairman and CEO on ESG-related matters. As a topic of high priority for Karora, the Chairman and CEO is actively involved in the development and implementation of Karora’s ESG strategy.

Our ESG Approach

The following pillars align with the strategic ESG factors that were identified as having the potential to impact the future of our company and that are of most importance to our investors and other stakeholders, as determined by a formal ESG materiality assessment. To support these foundational pillars, we expect all employees, officers, Board members, and, to the extent feasible, consultants, contractors, and representatives of Karora, to be committed to our objective to be an ESG leader by upholding the following commitments:

GOVERNANCE
  • ESG is a key priority for the Board of Directors and senior management and is embedded into our corporate culture and strategic decision-making.
  • We will continue to maintain strong governance structures which incorporate ESG factors, including Board oversight of ESG factors, Board expertise, and ongoing education on ESG.
  • We will seek to enhance our structure for senior management accountabilities on ESG, including improved consideration of ESG objectives into senior management’s performance.
  • We will maintain regular reporting on ESG factors from senior management to the Board.

STRATEGY
  • We are committed to identifying ESG risks and opportunities with the potential to impact company value and strategic objectives over the short, medium, and long term on an ongoing basis, as our exposure evolves over time.
  • We will ensure sufficient allocation of budget required to maintain regulatory compliance on ESG factors.
  • We will strive to capture ESG opportunities, including evaluating and implementing new technologies to improve our ESG performance.

RISK MANAGEMENT
  • We will annually review our ESG materiality assessment to ensure that key ESG factors are monitored on an ongoing basis, and that ESG factors are identified, assessed, and prioritized.
  • We will identify opportunities to enhance the integration of material ESG risks into our Enterprise Risk Management (ERM) processes, and identify actions necessary to mitigate ESG risks.

METRICS AND TARGETS
  • We set an objective to become one of the world's first net zero junior gold mining companies. As a first step towards achieving this commitment, we have established an interim target to reduce our absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 20% by 2030, compared to a 2024 forecasted business-as-usual baseline. Our initial focus is on Scope 1 and 2 emissions reduction opportunities at our operations, with Scope 3 emissions reductions to be considered over time.
  • We commit to annually publishing a GHG emissions inventory and reporting our progress toward our Scope 1 and 2 2030 emissions reduction target. We will quantify and report on Scope 3 using a phased approach over time.
  • We will set additional and increasingly ambitious ESG-related targets as we improve our ESG data collection and reporting processes.

REPORTING AND DISCLOSURE
  • We will report on our ESG performance in alignment with SASB’s Metals & Mining Standard.
  • We will report on our climate change performance in alignment with the TCFD recommendations using a phased approach, ensuring that our climate-related disclosure meets or exceeds criteria set out by forthcoming climate-related disclosure regulations.
  • We will enhance our incorporation of ESG-related disclosure into regulatory filings, including a discussion of the financial materiality of ESG-related factors on the organization.
  • We will strive to continually improve our disclosure of decision-useful ESG- and climate-related information over time.