99%95% of FY23 revenue
was from the saleof products thatof FY23 revenue contributed to thewas from lithium energy storage
value chain.
products

James Bay (100%)

Our Strategy to produce
lithium sustainably
Allkem’s Sustainability Strategy aligns ourbusiness activities with our purpose andassists Allkem in creating long term value.

Naraha (75%)

StageEngineeringStage

Commissioning

Type

Hard rockTypeProductSpodumene
concentrate

LiOH
conversion facility

ProductHydroxide

We have defined what success looks like foreach of these areas of our strategy and put inplace metrics to measure our progress.

Health, safety& wellbeing

Enablers

First Nations &Pueblos Originarios
partnerships

GovernanceRisk management

Diversity &inclusion

alpit
Ca

Allkem is a speciality lithium company with a diverse global
portfolio of high-quality brine and hard rock lithium assets.

Community
capacity building

anmHu

FY23 Sustainability Report
Executive Summary

Our Purpose is to produce core materials
that are fundamental for decarbonisation

Strategy Diagram

SharedValueOur Impact

To read more
about Allkem’s
FY23 Sustainability
Performance, you
can access ourFull Sustainability
Report andPerformance Data
Spreadsheet here.
Sustainability Report2023

PurposeInformation
security

PurposeAllkem produces corematerials fundamental
for decarbonisation

Respecting
Human rights
Future readyworkforce

Payment/tax
transparency
Sustainable
Value Chain

Climate change
response
Innovation,
R&D

Tailings, waste& emissions

Land use &biodiversity
Water & resource
efficiency

Renewables &energy efficiency

N a t u r al C a p it al

FY23 Highlights
TorontoThis year, Allkem has been included in the S&P
Global Sustainability Yearbook. This means that
our Corporate Sustainability Assessment score isin the top 15% of the industry.

MontrealAllkem Limited
Metals & Mining

Developing our Net Zero Plan
Allkem has a Board approved target of Net Zerofor scope 1 and 2 GHG emissions by 2035 andduring FY23 we developed our first action plan
towards achieving this goal. The plan identifies
a series of high impact GHG mitigation projects.

Strengthening Communications
and Public Affairs
Established Allkem’s Public Affairs Department
to support the business establishing strong
stakeholder relationships to address regulatory
measures relevant to the sector.

Strengthening transportation safety
BrisbaneSydneyPerthBuenos Aires

Sal de Vida (100%)

Mt Cattlin (100%)Stage

Construction

Stage

Operating

TypeBrine

TypeHard rock

Product

Carbonate

ProductSpodumene
concentrate

IFC Sustainability Linked and Green Loanfor Sal de Vida

Olaroz (66.5%)
Stage

Operating/development

Type

Brine

Product

Carbonate

Key
Operating Asset

Cauchari (100%)Stage

Early studies

Type

Brine

For information on Reserves andResource estimates, see Allkem ASX
Release Allkem confirms material
growth profile underpinned by 40
Mt Resource, 25th September 2023

Development Asset

Signed just following the end of this reporting
period in July 2023. This is the first IFC financing
in lithium mining and the first time a greenfieldmining project's finance has been structures as asustainability linked and green loan. This process
required extensive external validation of our high
ESG standards against IFC’s globally recognised
environmental and social performancerequirements. We have also committed tosustainability performance measures forrenewable energy, GHG emissions intensity
and workforce diversity during the operational
phase of the project.

At Olaroz and Sal de Vida, we created a new
department focused on managing roadsafety risks. This department is implementing
improvements in vehicle safety critical controls,
new road safety protocols and training for road
users from our operations, contractors,
and local communities.

Addressing Human Rights andModern Slavery risk
Allkem’s Modern Slavery Working Group,
including representatives of sustainability,
procurement and compliance teams
from Australia, Canada and Argentina,
developed Allkem’s group level
Modern Slavery Standard.

OfficeAllkem FY23 Sustainability Report | Executive Summary1

Agreements with traditional owners

FY23 Value Creation
Our performance against key metrics of our sustainability strategy are highlighted below
demonstrating how we generate value for our stakeholders, which contributes to the long term
sustainability of our business.
Purpose: produce core materials that are fundamental for decarbonisation

Sectors

InputsFinancial Capital
See Allkem FY23
Annual Report

Business Activities

Financial

US$568.4 m
Capital expenditure

Group level
functions

1352

24%

Payment/tax transparency

Employees

FemaleCommunity capacity building
First nations & Pueblos
Originarios partnerships

48%
Local community
employees (Mt Cattlin)

71%
Human CapitalLocal Province
employees (Olaroz)

Health, safety& wellbeing

NaturalDiversity & inclusion
Future ready workforce

494 km2

Land used for
operational activities

Natural Capital
Water & resource efficiency

CorporateDevelopment

Tailings, waste& emissions
Land use & biodiversity

0%of water from areasof high water stressJames Bay: Preliminary Development Agreement signed with Cree Nation of Eastmain and Cree Nation Government in2019 to be replaced by an Impact Benefit Agreement (“IBA”) before construction initiatedSal de Vida: Informed Consultation and Participation engagement process. Have established relationships of trust andongoing dialogue along with agreements for social investment.

FY23 Outputs and Outcomes
Financial

130,982 dmt
16,703 t

Lithium carbonate

US$1,207.8 m
RevenueProjectDevelopment
Hard RockOperations

US$6,773 m
Market capitalisation

Shared

US$186 m
Fees, taxes & royalties paid

Brine Operations

US$40 mDownstream
Operations andPartnerships

Local supplier contracts

1.98 0.6 0
LTIFR

50,000

Mt Cattlin water
operational intensity(spodumene concentrate)

Investors

42.9 m3/t

Olaroz water operationalintensity (lithium carbonate)678 t01476 t0Wastedisposed

Waste
recycled

Customers/
Suppliers

Surfacewaterdischarge

Reportableenvironment
incidents

Communities/
Government/
Regulators

0.4 tCO2e/t
2.8 tCO2e/t

HumanTRIFR

1.19 m3/t

Mt Cattlin GHG operational
intensity (spodumeneconcentrate)

US$14 mLocal community
employee salaries

Sales andMarketingof Products

NaturalScope 1&2 GHG emissions

US$40 mProcurement

Stakeholders

134,700 tCO2e

Withholding taxes

1.4 million m3
Total water withdrawal

Mt Cattlin: Native Title Claim Wide Mining Agreement with the Wagyl Kaip and Southern Noongar People

Spodumene concentrate

Human
Shared Value

Olaroz: Olaroz Chico Participation Agreement updated & Easement Agreement signed with El Toro community in FY23Fatalities

Employee training hours

Employees &Contractors

Olaroz GHG operationalintensity (lithium carbonate)

197 kt 2.53 Mt
Tailings

Precipitated &harvested salts

Nature/NGOs

Allkem FY23 Sustainability Report | Executive Summary2

Implementing Shared Value initiatives
We continued to build capacity in collaboration with local communities
by supporting training and infrastructure development and reportingtransparently on taxes and payments.

~US$54 m>US$1 m

local employee salaries
and supply contracts

in community infrastructure,grants and donations

Sales de Jujuy—Local Community Employees
350
300

Mt Cattlin•

250
200150•

Sal de Vida

Funding for community projects
through ‘Pitch your Project’ and‘Believe in Yourself’ programs•

New university course to develop
local lithium knowledge and skills•

Local agriculture programs

Annual Community Day•

Community medical support

Sales de Jujuy—Local Community Employees

100

350

50300

Local food production projects

250

Vicuña management

0Olaroz••

James Bay200• MyGreen Footprint—Community
2014
2015
2016

2017

150 Sustainability InitiativeOperators•

100

Continuing regular engagement
developing Impact Benefit Agreement
to ensure positive long-term outcomes
2018
2019
2020
2021
for communities
•2022

2023

Analyst/Middle Management

Continuing education program

500
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

SalesOlaroz—Local
deOperators
Jujuy—LocalCommunity
Employee—EducationLevels Levels
Community
Employee—Education
Analyst/Middle
Management

Sales de Jujuy—Local Community Employee—Education Levels

9%

17%

34%

16%

49%
17%

17%

34%
49%

9%
16%

17%

26%

26%

26%70%
66%

26%

90%

70%

66%

40%
25%

40%

25%

20142014
Completed Secondary Education

2017
2017

2020*

2020*

Currently enrolled in/completing Secondary Education

5%

5%

2023

20232025—Target"Our goal has always been
to create bonds of trust,
relationships with thecommunities, prioritising
their participation in our90%
projects and actions.
I'm proud of working at
the company, to bewelcomed with suchlove due to all the work."
Carmen Benitez—Allkem Shared Value Team
(pictured above)

Left: Sustainable Vicuña Management
Program in Olaroz
Above left: Local Food Production Projectswith Olaroz and Sal de Vida communities
Above: Mt Cattlin Community Day

2025—Target

Completed only Primary Education

CompletedSecondary Education
Currently enrolled in/completing Secondary Education
Currently enrolled in further studies beyond Secondary School

Completed only Primary Education

Currently enrolled in further studies beyond Secondary School

Allkem FY23 Sustainability Report | Executive Summary3