Electra Battery Materials Corporation (ELBM) 2022年CSR報告「TSX-V」.pdf

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1、SUSTAINABILITY REPORT 2022 Emma Archer PhotographyTable of Contents1 Sustainability Journey22 Message from the CEO3 About Us5 Our Priority ESG TopicsAbout the Report4 6 Environment6.1 Climate Change6.2 Circularity and Waste6.3 Life on Land6.4 Water Stewardship239ESG Performance Summary 7Social7.1 Hu

2、man Rights7.2 Diversity,Equity&Inclusion7.3 Employee Attraction,Retention&Development7.4 Health&Safety7.5 Respect and Engagement of Local Communities andIndigenous People 8Governance8.1 Ethics,Compliance,and Transparency8.2 Sustainable Supply Chain03050709101233391Sustainability JourneyJune:Electra,

3、formerly First Cobalt Corp,joins the Cobalt InstituteOctober:Electra releases Life Cycle Assessment report for its Canadian refinery which affirms its low carbon footprintFebruary:Electra begins study of black mass material from recycled batteries as a feed source to recover cobalt,nickel,and other

4、battery materialsDecember:Electra announces that its recycling facility will have a 100%hydrometallurgical process and low carbon power sources,resulting in nearly zero greenhouse gas(GHG)emissionsEnvironmental,social,and governance(ESG)considerations are embedded in Electra Battery Materials(“Elect

5、ra”)principles and business practices.In 2022,we made considerable progress in our journey to establish a solid foundation for a sustainable production and a robust supply chain in North America.Alongside the advances for the development of the battery materials park in Ontario,Canada,and the explor

6、ation work at our copper-cobalt mining asset in Idaho,USA,we kicked-off an ambitious ESG agenda and met important milestones,including the appointment of our Vice President,Sustainability and Low Carbon.Our first Sustainability report is in line with our commitment to transparency and accountability

7、.We will continue to build on the strong foundation we have built by developing content and tools to enhance our culture based on our Value Proposition,starting with our ESG Bulletin and online training for our employees.We are also engaging with internal and external stakeholders through surveys an

8、d participation in conferences to discuss our ESG framework,commitments and ambitions moving forward.320212020April:Appoints VP,Sustainability and Low Carbon,Renata Cardoso May:Launches four ESG Policies Human Rights,Supply Chain,Sustainability and Environmental 2022May:Publishes comprehensive ESG F

9、ramework and commitmentsWhistleblower Channel is live to receive and manage grievances: becomes a member of the Responsible Minerals Initiative(RMI)July:Signs Benefits Agreement with the Mtis Nation of Ontario(“MNO”),providing employment,training,procurement,and business opportunities January 2023:L

10、aunch of inaugural Sustainability ReportNovember:VP Sustainability and Low Carbon visits cobalt mining sites in the Democratic Republic of Congo,providing comfort to stakeholders and demonstrating confidence in Electras ethical supply chainRespect for our employeesRespect for the planet and for futu

11、re generationsRespect for the local communitiesCORE VALUESRespect for our shareholderProvide low-carbon,ethical and traceablematerials to the global battery supplychainwhile improving peoples livesMISSIONSUSTAINABILITY FRAMEWORKLife on LandClimate ChangeWaterCircularity and WasteHuman RightsHealth&S

12、afetyEthics,Compliance&Transparency Supply ChainPeople DevelopmentCommunities&Indigenous PeoplesDiversity,Equity and Inclusion45I am pleased to share Electras first Sustainability Report.For us,this is a significant accomplishment that reflects our commitment to transparency in our journey to supply

13、 ethical,traceable,and low carbon battery materials that will help promote the global energy transition.Our ESG agenda is ambitious.As part of our value proposition,we want to meet and exceed our stakeholders expectations by becoming a reference and pushing forward ESG standards.In terms of strategy

14、,ESG is already a key point of differentiation for Electra relative to our peers in Asia.We will produce very low carbon and target net-zero battery materials and benefit from the logistics ofthe growing North American market.Being in North America also means we are required to comply with strict re

15、gulations,which strengthens our credibility in the industry and our ability to influence the entire supply chain to follow ethical business practices.In this report,you will get an overview of our Environmental,Social and Governance(ESG)management approach and performance so far.The stories and data

16、 we are presenting in this inaugural report relate to the construction phase of our refinery and to the exploration phase of our Idaho properties.Transparency is a commitment that does not need to wait until we are operational,however.We are excited to share our ESG progress with you from the very b

17、eginning of our journey.2Message from the CEO2Message from the CEO6In this report you will learn about our Companys strategy,ambitions,and commitments related to ESG matters that our employees and external stakeholders value the most.Before developing this report,we conducted internal and external s

18、urveys,and learned more about our stakeholders and their expectations of us.We listened to local communities,indigenous groups,customers,suppliers,and investors on what they believe Electras priorities should be as we grow our business and operations.In 2022 we launched our ESG policies,framework,an

19、d our Whistleblower channel.We became members of the Responsible Minerals Initiative(RMI),a key partner that provides a platform for responsible sourcing.We signed our first Benefits Agreement with the Mtis Nation of Ontario,and we developed studies related to the local biodiversity with other indig

20、enous groups.As we prepare to start our operations in Ontario,we are hiring and training employees from the local workforce.We also developed our first greenhouse gases inventory,and we are working on our decarbonization roadmap.It has been an exciting journey so far and we invite you to read the re

21、port,provide feedback and continue to follow our progress.Our intent is to be an ESG leader in the industry,particularly in North America,but this is only possible through an open and transparent dialogue with you and all of our stakeholders.Trent MellElectra Battery Materials CEO73About UsElectra i

22、s a North American refiner and recycler of battery materials using a low carbon hydrometallurgical process.We are building an integrated,localized,and environmentally sustainable battery materials park,north of Toronto.Leveraging the Companys own mining and refining assets,the Electra Battery Materi

23、als Park will supplement North American supply of cobalt,nickel,and manganese sulfates as well as recycled battery materials.Electras hydrometallurgical refinery located in Ontario,Canada is our flagship asset.It acts as a critical bridge between the North American electric vehicle supply chain and

24、North American sources of raw minerals and recycled materials.Electra also owns the exploration-stage Iron Creek cobalt-copper project in Idaho.Electra is an integral part of the North American battery supply chain,positioning to provide low carbon,sustainable,and traceable raw materials for the fas

25、t growing electric vehicle industry.The first commercial operation will be the production of battery-grade cobalt sulfate in the spring of 2023,followed by commercial black mass refining in 2024.Nickel and manganese refining are expected to follow in 2025-26.Electra also intends to build a second co

26、balt sulfate refinery in Bcancour,Quebec.For more information,please refer Battery Materials Park|Electra()YellowknifeNWTStewartB.C.Idaho Cobalt BeltIdahoDuluth ComplexMinnesotaThompson NickelBeltUngava PeninsulaManitobaVoiseys BayQuebecRing of FireNewfoundlandSudbury BasinOntarioTimminsOntarioAmosO

27、ntarioCobalt CampQuebecBattery Materials Park OntarioIdaho8Electra at a GlanceCommercial scale hydrometallurgical refinery to be commissioned in 2023Commercial battery recycling line to be commissioned in 2024Exploration-stage Iron Creek cobalt-copper project in Idaho,USAFuture products portfolio:Co

28、balt sulfate,Nickel sulfate,Manganese sulfate,and recycled battery materialsSupported by an experienced and diverse Board and leadership team94About the ReportOur inaugural report sets the foundation for Electras future disclosures on ESG matters.This report provides information on our evolving ESG

29、strategy,along with a commentary on our key activities and highlights in 2021 and 2022.Reporting frameworks,such as the Global Reporting Initiative(GRI)Standards and the Sustainability Accounting Standards Board(SASB)Standards influenced the development of this report.We have initiated data collecti

30、on to measure and report our performance on ESG issues.This includes our impact on the environment,our contribution towards community development and our efforts towards building a diverse and inclusive organization.Our ESG performance scorecard for the construction phase of our operations is availa

31、ble in the Performance Summary.We encourage you to share any comments,inquiries,or suggestions you may have on our ESG journey to 5Our Priority ESG TopicsRecognizing that the profit and purpose of a Company are intrinsically linked,Electra is committed to integrating ESG into our business model and

32、operations.For us,this means being part of the global energy transition by reducing climate risk,improving quality of life,upholding responsible practices,using technology to innovate within our operations,and being mindful of the legacy we want to leave for future generations.We strive to create la

33、sting value for our stakeholders by minimizing our environmental footprint and promoting prosperity of communities,while driving our business towards profitability.We are guided in this pursuit by our mission and core values.Vision:Provide low carbon,ethical,and traceable materials to the global bat

34、tery supply chain while improving peoples livesCORE VALUESRespect for our employeesRespect for the planet and for future generationsRespect for thelocal communitiesRespect forour shareholders105Our Priority ESG TopicsOur values,strategy,and commitments are incorporated into our day-to-day operations

35、 through our ESG Framework and policies.Our ESG Framework outlines the Companys priority ESG topics,identified through a systematic review of Electras internal documents and external landscape,and validated by internal and external stakeholders through a survey.11Electras ESG Framework is in line wi

36、th global priorities highlighted by the United Nations Sustainable Development Goals(UN SDGs).SDGs provide a useful framework for governments and organizations to tackle the worlds pressing challenges and create a positive impact.The goals that we can impact most directly are:Climate ChangeWaterLife

37、 on LandCircularity and WasteHuman RightsHealth&SafetyEthics,Compliance&Transparency Supply ChainPeople DevelopmentCommunities&Indigenous PeoplesDiversity,Equity and Inclusion126 EnvironmentRespect for the planet and future generations is one of Electras core values that determine how we develop our

38、 business.We realize that the industry we operate in must evolve and innovate towards more efficient and environmentally conscientious practices.At Electra,we believe we are at the forefront of this change.Our focus on enabling the transition towards zero emission vehicles is intentional as we aim t

39、o be a leader in providing low-carbon,ethical and traceable critical materials to this emerging industry.6.1Climate Change13Introduction Ambitions and Commitments Our ambition is to be a key player in decarbonizing the value chain,supplying low-carbon,ethical,and traceable materials that enable the

40、global energy transition and decarbonization efforts.Our battery materials are the mainstay of the electric vehicles supply chain.We intend to have the lowest carbon footprint of all cobalt sulfate producers in the world and achieve the same for all the other products in our future portfolio.We will

41、 accomplish this through our commitment to Net Zero greenhouse gases(GHG)emissions by 2050,both direct and indirect.We are in the process of developing our decarbonization roadmap,including medium-term goals,which will be published later in 2023.Dave Theurer,from Intermountain Environmental Inc,inst

42、alling a weather station in Iron Creek6.1Climate Change14Greenhouse gas(GHG)management:We calculated our GHG scope 1,2,and 3 emissions,in accordance with the GHG Protocol Standards.Our emissions are disclosed in our ESG performance summary.We worked with Hatch,a global engineering and consulting fir

43、m,to quantify greenhouse gas emissions associated with the ongoing construction and exploration work at our sites.We continue to work together to develop our emissions forecast and decarbonization roadmap.Currently,China dominates the electric vehicles supply chain with more than 80%market share of

44、global cobalt sulfate production.Electra aims to reduce North Americas dependence on China and strengthen the supply chain across the continent.Our life cycle assessment indicates our cobalt sulfate will be approximately 50%less carbon intensive than a similar product made in China.This is a“gate-to

45、-gate”approach,meaning that it includes Scope 1 and 2 emissions.Additionally,when we compare emissions from the transportation of a cobalt sulfate container to a potential customer in the US,Electras transportation emissions are at least 40%lower than the same product coming from China.It avoids mor

46、e than one ton of carbon di-oxide equivalent(tCO2e)emissions per container,equivalent to what 30 growing trees could capture1.Low carbon power:More than 90%of the electricity used by our Ontario refinery is generated from zero or low-carbon sources.Management Approach(1)This calculation varies accor

47、ding to the tree species and other natural aspects.6.1Climate Change15HighlightsLow carbon operations:Electras battery materials refinery is on track for commissioning in Spring 2023,becoming North Americas only source of low carbon battery grade cobalt sulfate.Electra expects its Ontario-based refi

48、nery to have one of the worlds lowest carbon footprints in the sector due to the hydrometallurgical process and the reliance on Ontarios clean electricity grid.Keeping our products in North America maximizes our products ESG credentials for North American manufacturers by minimizing our carbon footp

49、rint.In line with our commitment to transparency,we have calculated our GHG emissions for the construction phase of our operations.As we scale our refinery operations,we will disclose the GHG emissions of our facilities.*Due to the timeline of our emissions calculation,our 2022 data includes emissio

50、ns from January 2022 to September 2022.The 2021 data is for the full calendar year.We will update our data in our next report.The emissions calculation of our pre-operational phase was not third party assured.Hatch has relied on data provided by Electra and other third-party providers.Hatch has not

51、verified the accuracy,completeness,or validity of any information provided to Hatch by or on behalf of Electra,and Hatch does not accept any liability in connection with such information.02004006008001000120014001600180020212022Scope 1Scope 2Scope 3CHG Emissions(tCO2e)6.1Climate Change16Climate chan

52、ge risks For us,the low-carbon agenda is not only about reducing our GHG emissions.We also need to monitor and help address the impacts of climate change that are already affecting our planet in different ways,depending on geography and local resources.A weather station was installed on the Iron Cre

53、ek private property in the spring of 2022.The weather station collects baseline data,including precipitation,wind,and temperature data,to develop a baseline for the area.This data will be provided to the United States Forest Service(USFS)and other regional agencies to help establish an environmental

54、 baseline of the project and measure changes in environmental characteristics of the local area.This will help us better understand local vulnerabilities,make our operations more resilient,and support communities to better adapt to extreme climate events,such as tornados,floods,and wildfires.Electra

55、 recognizes the importance of moving towards a circular model for the use of the Earths resources.We are a Company built on principles of circularity and waste reduction as these are key components of our business strategy and operations.We are building a refinery which will be able to recycle end-o

56、f-life batteries and battery materials,and turn them into useable,and valuable products.Our refinery process provides automakers with a circular solution to recycle their batteries and to source new batteries for new electric vehicles,reducing negative environmental impacts.Through our operations,we

57、 are minimizing waste and creating value,while also providing net positive solutions.6.2 Circularity and WasteIntroduction Ambitions and Commitments In the coming years,our business plan entails recycling black mass from end-of-life lithium-ion batteries supplied by various black mass suppliers(batt

58、ery shredders)to our Ontario site.17Battery recycling:We have been developing and testing the recycling process flow sheet for approximately two years.In December 2022,Electra launched a full-scale hydrometallurgical black mass recycling demonstration plant to recover lithium,nickel,cobalt,copper,an

59、d graphite from lithium cobalt oxide(LCO)and nickel cobalt manganese(NCM)batteries.Waste management:We commit to prioritize the best practices available for the optimization of mineral production and processing along all phases of the project life cycle exploration,design,operation,and closure.Data

60、related to our waste management in construction phase is available in the ESG performance summary.6.2 Circularity and Waste18Management ApproachOur hydrometallurgical processing is key to circularity within this industry and enables the extraction and re-use of all key elements.Our current facilitie

61、s are at the pilot stage,we are scaling our operations to provide the market with low carbon battery materials and to be able to recycle a greater quantity of end-of life materials from manufacturers,amplifying the power of our circular business model.We are expanding our operations using a phased a

62、pproach.Our first recycling module(Module 1)is expected to process more than 1,000 tonnes per annum of black mass.Module 1 is one of several modules that we expect to build over the next decade.HIGHLIGHTS:Biodiversity is a key element of our ESG framework.We recognize the importance of biodiversity

63、to our ecosystems,communities,and the planet.This means that we operate our facilities in a manner that seeks to prevent,mitigate,and offset potential impacts that could harm the ecosystems in which we operate.6.3 Life on LandIntroduction Ambitions and Commitments We are committed to managing risks

64、and impacts to biodiversity through our operations.We have adopted prevention,mitigation,control,offset and are monitoring measures to support this commitment.We commit to engage with stakeholders to meet Global,National,Local and Company goals and regulations related to the environment protection,p

65、romotion,and restoration.19Zero harm:We take a proactive,risk-based approach to environmental management,with robust measures that help ensure we minimize our environmental impact,while ensuring the viability of the environment for future generations.In line with our overall approach to responsible

66、mining,the zero harm principle will guide our approach to environmental management,including biodiversity protection.Site restrictions and exclusions:As part of our commitment to biodiversity,we respect legally designated areas,such as the International Union for Conservation of Nature category I-IV

67、 protected areas.We do not operate in World Heritage Sites.6.3 Life on Land20Management ApproachElectra has partnered with the Timiskaming First Nation to conduct a study on the concentration of metals in plants and fungi surrounding the Electra refinery.This study focuses on legacy impact of mining

68、 and industry on Timiskaming food sources and culture.Currently,in its second year,the study will span five years,covering baseline information in the period before operations commence and a period when operations are expanded.In the study,plant and mushroom samples are analyzed to determine concent

69、rations of metals and used to produce toxicology maps of the region.These maps will help ensure that Timiskaming foragers know what areas may need to be avoided when foraging.The comparison of baseline data with post scale-up data allows us to hold ourselves accountable and ensures that our operatio

70、ns have a benign impact on the local environment and the health of the surrounding community.HIGHLIGHTS:Ambitions and Commitments Poor water availability and quality are critical issues that perpetuate inequality and prevent sustainable development.We commit to the principles of water stewardship ac

71、ross our operations,minimizing water use,and ensuring proper water availability and quality.21Freshwater is a critical resource across the world.An increasingly scarce commodity,water supply remains under significant pressure across the world due to a growing population,competition induced by differ

72、ent factors,increasing demand for energy,and the impacts of climate change.Cognizant of dwindling water resources and relatedquality issues,we are taking actions to improve water use efficiency across our operations.6.4 Water StewardshipIntroduction Water management:We are constantly stepping up our

73、 efforts to manage our water-related biodiversity risks and impacts associated with our activities,and have prevention and mitigation standards,systems,and controls in place.6.4 Water Stewardship22Management ApproachOur Iron Creek Cobalt-Copper project(“Iron Creek”)is our exploration project in Idah

74、o that could potentially support the development of the U.S.-based electric vehicle materials supply chain.Electra monitors water chemistry and flow rates at multiple tributaries above and below our exploration project to confirm that exploration activities do not have a negative impact on the creek

75、s water quality.Our goal is to ensure water used for exploration activities does not have a significant impact on the watershed.To proactively protect water quality,Electra has built sediment control traps on both Iron Creek private property and on the adjacent U.S.Forest Service roads to minimize s

76、ediment runoff into surface waters.Installation was completed in spring and fall 2022 and the effectiveness of the control traps was monitored during storm discharge events.HIGHLIGHTS:237 Social7.1Human Rights24IntroductionWe endeavor to respect and uphold human rights not only at ourown sites but a

77、lso along our supply chain.We follow industryleading practices for human rights and have committed to annualsupply chain audits aligned with the Responsible Mining Initiative(RMI)Standards.Furthermore,in line with the United NationsGuiding Principles on Business and Human Rights,we commit to:Prevent

78、 and,if necessary,mitigate and remedy Human Rights violations associated with our activities;Monitor our activities and our value chain adherence to our standards through the implementation of a due diligence/audit process;Regularly disclose our Human Rights principles and performance updates throug

79、h our disclosures;andPromote dialogue and help advance the Human Rights agenda globally.25Management ApproachSupply chain human rights:We encourage and expect our supply chain to adhere to our standards and apply our Human Rights Policy to their activities.Our partners are critical partners to ensur

80、e we develop our business in a sustainable,respectful,and diligent manner.We have formally adopted a zero-tolerance policy against Human Rights abuses.We commit to prevent the use of all forms of child labor,whether directly through our business activities or indirectly through our supply chains.To

81、further embed respect for human rights in our Company,we organize trainings and awareness sessions for our employees and suppliers.We have also created online and offline platforms,such as the Whistleblower Channel,to listen to our stakeholders needs and concerns.7.1Human Rights7.2Diversity,Equity&I

82、nclusion26Management ApproachBoard diversity:The Compensation,Governance,and Nominating Committee values diversity of abilities,experience,perspective,education,gender,background,race,and national origin.Recommendations concerning director nominees are based on merit and past performance as well as

83、expected contribution to the Boards performance,knowledge of the industry and sector in which the Company operates and,accordingly,diversity is also taken into consideration.IntroductionOur activities are guided by respect and appreciation of diversity.We believe diverse teams can articulate a broad

84、er set of issues,risks and opportunities,and find integrated solutions.We committo promoting a healthy and inclusive environment for open andtransparent dialogue,valuing the unique views of our employees,neighbouring communities and stakeholders,and a zero-toleranceapproach to discrimination and pre

85、judice in all forms.7.3Employee Attraction,Retention&Development27Management ApproachAttracting and retaining talent:As the Company prepares for commissioning,we are looking for local talent,attending job fairs and approaching communities and indigenous groups with employment,training,and developmen

86、t opportunities.We see long-term incentive grants as an important retention tool,and a mechanism to align interests with shareholders.IntroductionAs Electra continues to grow,the attraction,retention,and development of our employees will be vital to our success.Canada has a competitive market for ex

87、perienced trades,making talent retention especially important for Electra.Our vision is to be an organization which encourages and facilitates the personal and professional development of our employees and the realization of their potential.As we transition to our operation phase,the continued learn

88、ing and skills development of our employees will be important for talent retention.Hayden Fiset,Site Services Superintendent7.3Employee Attraction,Retention&Development28We acknowledge that retention is a growing concern within our industry and aim to offer benefits to our employees that increase th

89、eir quality of life.Our Family Assistance Program provides professional,confidential,and proactive service for a wide range of personal,family,and work-related concerns.This service includes short-term counseling,as well as Life Smart Coaching for topics such as life balance,health,and career planni

90、ng.When it comes to people development,we are developing a series of resources,either internally or by partnering with expert instructors,to enhance Electras employees skillset.Starting with a site skills matrix process,followed by a skills training needs assessment process,we are creating customize

91、d training plans for individuals and functions.As the team grows and we approach the operational phase,our priority is to ensure employees have completed all the health and safety training and orientation programs.HIGHLIGHTS:Dan Pace,Principal Geologist at Iron Creek7.4Health&Safety29Management Appr

92、oachEmbedding health and safety into culture:We provide a healthy and safe workplace for all employeesand third parties,including adequate personal protective equipment.We encourage our employees to be actively involved in the improvement of their health and safety.Safety policy and procedures:We pr

93、ovide training to our workforce and have appropriate safety policies,controls,procedures,and standards.All safety procedures must be followed as outlined in our Story Environmental Health and Safety and Environment Plan and Policy.IntroductionSafety first,last,and always.The health and safety of our

94、 employees and contractors is our highest priority and is fundamental to our business.At Electra,we aim to embed a strong safety culture into all our operations.Our approach is guided by the zero harm principle,where every employee goes home safely each and every day.In 2022,we achieved zero lost ti

95、me incidents at site,demonstrating our teams commitment to health and safety.Electra is proud of our performance in health and safety and will continue to demonstrate our deep commitment to the health and safety of our workplaces.HIGHLIGHTS:7.4 Respect and Engagement of Local Communities and Indigen

96、ous People30IntroductionSeveral of our operations are located near Indigenous Peoples traditional territories in northern Ontario,Canada.We also share freshwater networks with different Indigenous groups,making it vital to maintain an active and respectful engagement with them.We abide by our commit

97、ment to respect the customs,culture,and values of the communities in which we operate while contributing to their socio-economic development.We demonstrate this by providing local employment,procurement,and contracting opportunities,while managing the risks associated with the Companys operations an

98、d supply chain.7.5 Respect and Engagement of Local Communities and Indigenous People31Management ApproachCommunity engagement:Electra is committed to being an industry leader with respect to ESG practices,which is reflected in how we engage with stakeholders.We pursue respectful relationships with h

99、ost communities,including open and regular dialogue with stakeholders in general,and have an approach to deal with resettlement issues,livelihood strategies and other priorities.Together with communities,we have developed a shared agenda for local sustainable development,respecting freedom of expres

100、sion and peaceful protest rights.Indigenous engagement:We commit to work to obtain consent from Indigenous Peoples for new and changing projects.When applying for regulatory permits to advance construction on our refinery,we began by reaching out to community leaders from the five different indigeno

101、us groups whose ancestral homeland is within a 100 km radius of our facility.Based on feedback from our indigenous neighbours,we launched a series of collaborative environmental studies aimed at understanding the impacts of development on the regions flora and fauna.Community development:We aim to b

102、e a catalyst for local community and economic development.We strive to provide regional economic opportunities,local employment,local procurement opportunities,infrastructure availability,and tax revenues for service implementation.32Metis Nation of Ontario Mutual Benefits Agreement:In 2020,we devel

103、oped an Engagement Plan and started consultation with 5 different indigenous groups in Ontario.From this process,we started negotiating ways to collaborate,including voluntary Benefits Agreements.As a result,in July 2022,we signed a Benefits Agreement with the Mtis Nation of Ontario(MNO),providing e

104、mployment,training,procurement,and business opportunities related to the construction and expansion of the Companys battery materials refinery north of Toronto near Temiskaming Shores.As a part of this agreement,Electra issued 20,000 common shares of the Company to the MNO as a means of providing a

105、measure of economic participation in the success of Electras business plan.This agreement reflects our commitment to engaging with indigenous groups,developing communities,and achieving economic benefit for all our stakeholders.Supporting local communities:In 2021 and 2022,we awarded five Electra Ex

106、cellence Bursaries to graduating students in schools near our refinery.We granted each deserving student a$1,000 bursary based on their commitment to learning and an intention to pursue a post-secondary education.One student was selected from each of the following schools:Englehart High School,Timis

107、kaming District Secondary School,Kirkland Lake District Composite School,and cole Secondaire Catholique Sainte-Marie.7.5Respect and Engagement of Local Communities and Indigenous PeopleHIGHLIGHTS:338 Governance34Introduction Electra adopts uncompromising ethical business standards across our operati

108、ons.Our principles are built on a foundation of accountability,transparency,ethical behaviour,and respect for stakeholder interests.We are committed to identifying and complying with all applicable permitting,authorizations,and regulatory requirements for our operations at all jurisdictional levels.

109、8.1Ethics,Compliance,and Transparency 8.1Ethics,Compliance,and Transparency Management Approach Ethical Business Practices:We have a Code of Conduct,procedures,and practices related to:Anti-corruption and fraud;Anti-money laundering;Prevention of criminal tax evasion;Unfair competition;andConflicts

110、of interest.Compliance:We comply with all applicable regulations.We have a systematic and comprehensive approach to identify applicable compliance obligations of our operations,plan actions to address these obligations,and to evaluate the effectiveness of these actions.Complaint Mechanisms:Electra h

111、as developed a Complaint Reporting and Response that outlines reporting and response requirements for complaints made by the public related to air,noise,water or any other activity related to the operations of our Refinery.This is aligned with our permits and environmental approvals.We have zero tol

112、erance for direct or indirect support to non-state armed groups or illegal security forces.We encourage our employees to bring to light any unethical business practices.In 2022,we launched our Whistleblower channel,so that anonymous complaints can be filed through without fearof any repercussions or

113、 reprisals.35368.2 Sustainable Supply ChainIntroductionWe approach this topic from two perspectives:how we manage our own supply chain and how we contribute to other supply chains.Our ambition to become a supplier of ethical,sustainable,and traceable battery materials for the electric vehicle supply

114、 chain stems from the realization that the industry in which we operate must evolve towards more efficient processes and more conscientious practices with a reduced environmental footprint.We are also looking at how we engage and collaborate with our supply chain partners to promote our values.We wi

115、ll continue to maintain a strong focus on ESG best practices as we grow as a Company and scale our operations.This includes strengthening our supply chain through strong due diligence practices,as is laid out in our Supply Chain Policy.37Management ApproachLocalization:We will provide an integrated

116、and environmentally sustainable solution to source electric vehicle battery materials in North America.Our North American based operation will enable companies down the value chain to reduce their environment footprint,diversify their supply chain,reduce procurement risks,and enhance traceability fo

117、r their materials.Sustainable and Resilient supply chain:Our supply chain program,aligned with the Responsible Minerals Initiative(RMI)Standards and the OECD Due Diligence Guidance for Response Mineral Supply Chains from Conflict-Affected and High-Risk Areas,lays down the principles and standards we

118、 expect our supply chain partners to adopt.In addition to human rights,other focus areas of our program include upholding ethical business practices,ensuring regulatory compliance,providing a healthy and safe workplace for our employees and third parties,managing environmental risks and impacts asso

119、ciated with operations,and developing meaningful relationship with our communities.Our procurement strategy includes the identification of risks stemming from geopolitical,environmental,human rights,and health stressors.This strategy enables us to identify suppliers in locations that we deem less li

120、kely to face interruption and keep us on track for our construction and operation schedules.Supply chain due diligence:We work with our suppliers to exchange information on ESG practices,demonstrating our commitment to a transparent supply chain.Our supply chain risk management system will help us i

121、dentify,assess,and mitigate risks in the supply chain.A key component of our risk management system is the annual due diligence/audits of our suppliers.Going forward,we will disclose information on our due diligence and risk assessment outcomes.8.2 Sustainable Supply ChainHIGHLIGHTS:388.2 Sustainabl

122、e Supply ChainIn 2022,Electra started to track suppliers adherence to the Companys Supply Chain policy by requesting third party due diligence or audit reports related to the Responsible Minerals Initiative(RMI)assessment.The RMIs Responsible Minerals Assurance Process(RMAP)provides independent thir

123、d-party assessments through an OECD-aligned industry mechanism for crude and fine cobalt refiners.After receiving the documents attesting conformance,Electra also visited a few cobalt mining sites in the Democratic Republic of Congo,as part of our management system to ensure the responsible sourcing

124、 of our products.399 ESG PerformanceSummary 40TopicMetric20222021Climate changeScope 1 emissions(tCO2e)118311Scope 2 emissions(tCO2e)81Total scope 3 emissions(tCO2e)1,3821,228Category 1(Purchased goods&services)(tCO2e)1,050860Category 2(Capital goods)(tCO2e)056Category 3(Fuel-and energy-related acti

125、vities)(tCO2e)177199Category 4(Upstream transportation and distribution)(tCO2e)2182Category 5(Waste generated in operations)(tCO2e)744Category 6(Business travel)(tCO2e)Not IncludedNot IncludedCategory 7(Employee commuting)(tCO2e)6027Category 8(Upstream leased assets)(tCO2e)Not IncludedNot Included9.

126、1 Environmental PerformanceCommentsCategories 9 to 15 were not included in this first exercise.Hatch has relied on data provided by Electra and other third-partyproviders.Hatch has not verified the accuracy,completeness,or validityof any information provided to Hatch by or on behalf of Electra,andHa

127、tch does not accept any liability in connection with such information.41TopicMetric20222021Climate changeSource of the emission factors and the global warmingpotential(GWP)rates used Ecoinvent 3.08.TRACI 2.1 V1.07US-EI 2.2.TRACI 2.1 V1.07 Industry Data 2.0.TRACI 2.1 V1.07 USLCI.TRACI 2.1 V1.07 UK BE

128、IS-conversion-factors-2021-full-set-advanced-usersEPA(US)Category 1 and 2 SupplyChainEmissionFactorsforUSIndustriesCommodities v1.1.2016_Summary_Commodity IPCC,Climate Change 2013:IPCC Fifth Assessment Report(AR5)GWPs:IPCCs Working Group I,Climate Change 2013:The Physical Science G13BasisAnnual Carb

129、on Losses in biomass due to disturbances IPCC 2006:V4,CHAPTER 2IPCC 2019:V4,CHAPTER 4The Climate Registry 2022 and 2023GHG emissions intensity ratio(metric tons(t)CO-e/number of employees(or revenue)31.4 tCO2e/employee81.1 tCO2e/employee CommentsRelevant documentsSustainability policyEnvironmental p

130、olicy*2022 emissions correspond to Jan to Sept only9.1 Environmental Performance429.1 Environmental PerformanceTopicMetric20222021Circularity and wasteTotal hazardous waste generated(t)0.066.40Total hazardous waste generated(L)59,66459,065Total non-hazardous waste generated(t)148.248.62Non-hazardous

131、 waste recycled(t)75.248.62CommentsMetal was the main waste stream generated in late 2021 with limited generation from other streams.In the summer of 2021,Electra commissioned a clean-up of chemicals discarded by previous operations at the site.This work was completed by a licensed hazardous waste d

132、isposal company.Types of waste by category:Hazardous(required to be manifested as per Transportation of Dangerous Good Act):oily solids,aerosol cans,used oil filters,process/lab chemicals,one time cyanide removal in 2022;Non-hazardous waste:drywall,wood,insulation,organics,empty feed bags;Non-hazard

133、ous recycling:used oil,metal,aluminium,paper/cardboard,plastic,glass containers.Relevant documentsEnvironmental policySustainability policy43CommentsElectra is primarily withdrawing and consuming surface water for its operations.We estimate our water consumption to increase once we scale-up our oper

134、ations.We intend to conduct water risk assessments to understand and mitigate our water-related impacts,including water stress.Relevant documentsEnvironmental policySustainability policyTopicMetric20222021Water stewardship Total water withdrawn Surface water(L)1,9358349.1 Environmental Performance44

135、9.2 Social PerformanceTopicMetric20222021Diversity,equity,and inclusionPercentage of governance body under 30 years of age0%0%Percentage of governance body between30 and 50 years of age40%40%Percentage of governance body over 50 years of age60%60%Percentage of women in governance body(Board of Direc

136、tors)20%20%Percentage of women in senior management8%21%Percentage of women in staff6%0%45CommentsEthnicity data is based on self-reported employee information.Due to respondents who chose to not self-identify as well as the small workforce size,data may be skewed.Relevant documentsSustainability po

137、licyTopicMetric20222021Diversity,equity,and inclusionPercentage of workforce identifying as South Asian3%Data not availablePercentage of workforce identifying as Asian American3%Data not availablePercentage of workforce identifying as Hispanic or Latino3%Data not availablePercentage of workforce ide

138、ntifying as White88%Data not availablePercentage of workforce identifying as Indigenous or Native0Data not availablePercentage of workforce identifying as other ethnicities:3%Data not available9.2 Social Performance469.2 Social PerformanceTopicMetric20222021Employee attraction,retention,and developm

139、entTotal number of employees4819Percentage of senior management under 30 years of age4%11%Percentage of senior management between30 and 50 years of age23%37%Percentage of senior management over 50 years of age15%37%Percentage of staff under 30 years of age15%5%Percentage of staff between 30 and 50 y

140、ears of age27%11%Percentage of staff over 50 years of age8%0Percentage of contract/temporaryworkers under 30 years of age2%0Percentage of contract/temporaryworkers between 30 and 50 years of age2%0Percentage of contract/temporaryworkers over 50 years of age4%0479.2 Social PerformanceTopicMetric20222

141、021Employee attraction,retention,and development Total number of new hires3510Percentage of women hired 20%20%Percentage of men hired80%80%Percentage of individuals under 30 years old hired20%70%Percentage of individuals between30 and 50 years of age hired54%20%Percentage of individuals over 50 year

142、s old hired26%60%489.2 Social PerformanceTopicMetric20222021Employee attraction,retention,and development Employee turnover(in number)73Employee turnover-women(in number)10Employee turnover-men(in number)63Turnover of individuals under 30 years old(in number)20Turnover of individuals between30 and 5

143、0 years of age(in number)21Turnover of individuals over 50 years old(in number)32499.2 Social PerformanceTopicMetric20222021Employee attraction,retention,and development Number of hours of training for women in senior management 1,5001,600Number of hours of training for men in senior management 10,5

144、002,600Number of hours of training for women in staff3,0000Number of hours of training for men in staff8,0000Number of hours of training for contract/temporary workers280N/APercentage of active workforce covered by collective bargaining agreements00CommentsRelevant documentsSustainability policyPerc

145、entage of employees by employee category(senior management,staff,and contract/temporary workers)have been calculated by dividing the total number of employees in each category by the total workforce size.509.2 Social PerformanceRelevant documentsSustainability policyCommentsWe didnt record health an

146、d safety data for calendar year 2021.TopicMetric20222021Health and safety Workforce fatalities00High-consequence work-related injuries 00Recordable work-related injuries00Average number of hours worked 4,200N/ATypes of work-related injury 00Contractor and temporary workforcefatalities due to ill-hea

147、lth00Contractor and temporary workforce work-related ill health 00Types of work-related ill health 00519.3 GovernanceCommentsRelevant documentsHuman Rights policy Sustainability policyDuring our initial construction phase in 2021,we did not have all our policies available.Since our mid-2022 Nasdaq l

148、isting,we have published and communicated our policies to our supply chain.They are also publicly available on our website.TopicMetric20222021Ethics,compliance,and transparencyPercentage of governance body membersthat have received training on anti-corruption100%0Percentage of employees that have re

149、ceivedtraining on organizations anti-corruption policies100%0Percentage of supply chain partners(suppliers,vendors and clients)that the organizations anti-corruption policies and procedures have been communicated to100%0Confirmed incidents of corruption00Legal actions pending or completed during the

150、 reporting period regarding anti-competitive behaviour and violations of anti-trust and monopoly legislation in which the organization has been identified as a participant0052Relevant documentsSustainability policySupply Chain policyCommentsOur three biggest suppliers have been screened through a th

151、ird party.TopicMetric20222021Sustainable supply chain Percentage of new suppliers thatwere screened using social criteria00Percentage of new suppliers that werescreened using environmental criteria00Number of suppliers assessed for environmental impacts30Number of suppliers assessed for social impac

152、ts30Number of suppliers identified as having significantactual and potential negative environmental impacts00Number of suppliers identified as having significantactual and potential negative social impacts00Significant actual and potential negative environmentaland social impacts identified in the supply chain009.3 GovernanceSUSTAINABILITY REPORT 2022 ELECTRA BATTERY MATERIALS CORPORATIONOffice:133 Richmond St.W,Suite 602,Toronto,ON,M5H 2L3 53