Climate

Anglo Asian Mining has developed a climate governance framework to integrate
climate-related risks and opportunities into its business and investment decisions. This framework is overseen directly by the Board of Directors (the “Board”) and permeates through senior management down to the operating sites.

In the first quarter of 2024, the Group established a governance structure dedicated to overseeing climate risks. This involves integrating climate considerations into the Group’s strategy and risk management, along with developing specific climate related metrics to track performance. The climate governance strategy of Anglo Asian Mining is designed to be adaptable, evolving alongside the Group’s strategies and plans to manage climate-related risks and opportunities and to encompass broader sustainability-related risks and opportunities. This aligns with the global trend towards more rigorous and transparent standards for climate-related disclosures and centres around a clearly defined governance model, incorporating climate considerations at all organisational levels.

The Board delegates climate oversight responsibilities to the Sustainability Committee, which is responsible for developing the strategic vision for sustainability and climate issues, and guiding its implementation once approved by the Board. The responsibilities of the sustainability committee include review and approval of decarbonisation strategies, ensuring appropriate management of climate-related risks and opportunities and direction and approval regarding mitigation and adaptation measures. It also supports training and awareness programmes related to climate change for both corporate and site teams and provides strategic direction on broader sustainability topics. This governance is implemented across three levels.

Board level – Focus is on ensuring appropriate oversight and management of climate risks. The Board reviews policies pertaining to climate change and evaluates their effectiveness in integrating climate considerations into the business strategy. The Board also provides approvals for significant strategic or financial initiatives recommended by management to address climate-related risks and opportunities:

Management level – Responsible for the identification, assessment, and management of climate risks as well as execution of strategies formulated by the Board and ensuring adherence to policies approved by the Board. This includes managing the day-to-day implementation of climate change initiatives, ensuring the effectiveness of emission reduction measures and making recommendations for ensuring a climateresilient business through adaptation and mitigation. Whilst the Board delineates the Group’s stance on climate change, risks, and opportunities, the management team is charged with their actual implementation.

Site operations level – Responsibilities revolve around managing performance, compliance, and mitigation of climate change risks. This includes pinpointing and addressing site-specific risks and opportunities, executing relevant policies, reducing greenhouse gas emissions, complying with environmental standards, and managing local risks, including the formulation of emergency response plans. Precise data collection and reporting on emissions and impacts are vital for effective management oversight. Moreover, engaging with local communities to address climate concerns, support regional climate resilience, and fostering sustainability initiatives are key aspects of site-level operations.

Climate strategy

To effectively address climate change challenges, Anglo Asian Mining is initiating the development of a climate strategy. This strategy, aligned with the Group’s climate change policy, concentrates on three fundamental objectives: managing climate risks, seizing opportunities, and boosting resilience. It is organised around three central pillars, each essential to the strategy’s overall effectiveness and alignment with the company’s goals and values.

Efficiency and operational resilience: In 2024, the Group identified and included physical and transition risks associated with climate change in a corporate climate risk register, which is reviewed biannually. This register not only identifies risks but also evaluates their financial implications. Based on this, Anglo Asian Mining has developed mitigation strategies to improve operational resilience, focusing on securing a stable power supply, optimising emission performance, and prioritising strategic projects. This approach is essential for enhancing energy efficiency and reducing the carbon footprint. The Group is developing monitoring capabilities and emission tracking to establish practical decarbonisation targets. Key initiatives already undertaken like connecting the Gedabek site to the national power grid and installing a reverse osmosis water purification plant demonstrate the Group’s dedication to reducing environmental impact and promoting sustainability.

Adaptation and business resilience: Anglo Asian Mining’s strategy for adaptation involves a comprehensive understanding of climate change’s dual impact on operations and finance, as well as guiding strategic growth plans. The Group is a producer of gold, silver, and copper and recognises the increasing demand for copper, especially in clean technology applications. In response, the Group has developed plans to expand copper production, acknowledging its vital role in the low-carbon transition and aligning with global trends towards sustainable resources.

Transparency and governance: Emphasising the need for clear and transparent reporting, Anglo Asian Mining is working towards alignment with the TCFD recommendations, aiming for full compliance in the near future. The responsibilities of the TCFD have now been transferred to the International Sustainability Standards Board within the IFRS foundation. However, TCFD provides the base platform parameters to develop sustainability platforms. This commitment to transparency is a key aspect of the Group’s governance processes and forms a crucial part of the overall climate strategy. This strategy serves as a framework for Anglo Asian Mining to understand and manage the various aspects of climate change, emphasising efficient energy management and acknowledging the need to reducing the carbon footprint of the business. It also focuses on preparing the Group and its communities for the long-term impacts of climate change, ensuring that these considerations are integral to strategic decision-making.

Risk Management

Further details about Anglo Asian Mining’s risk management approach to climate change is given in its annual report for the year ended 31 December 2023.