Climate Change Statement2023

Climate Change
and Decarbonisation
As a dynamic global lithium company, Allkem accepts the international
scientific consensus of the Intergovernmental Panel on Climate Change(IPCC), recognises the 2015 Paris Agreement, and supports its commitment
to limit global average temperature rise to below 2oC and pursue 1.5oC. Thisrequires immediate systematic reductions in global CO2 emissions, to reachcarbon neutrality by 2050.

Allkem supports the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) whichhave been incorporated in the IFRS S2 Climate Related Disclosures Standard. Elements of this Standard are addressedin Allkem’s annual disclosures as identified below.

Governance

Strategy

Risk Management

Metrics and Targets

What are the governanceprocesses, controls andprocedures Allkem uses tomonitor, manage and oversee
climate-related risks andopportunities?

How does Allkem’s businessstrategy respond to climate
related risks and opportunities?

How does Allkem identify,
assess and monitor climate
related risks?

The metrics and targets
developed and implemented
to understand Allkem’s
performance in relation
to climate related risks
and opportunities.

•

Corporate GovernanceStatement•

Board Sustainability
Committee Charter•

FY23 Sustainability
Report - Climate
Change Risk

How are these processes
integrated into, and how dothey inform Allkem’s overallrisk management process?
•

FY23 Annual Report p.29•

Net Zero Action Plan•

Our Purpose•

Our Impact•

FY23 Annual Report
p.14,36-38.

•

FY23 Sustainability
Report - Climate
Change Risk•

Net Zero Action Plan•

Sustainability
Performance Data

Climate Change Strategy
Our Purpose

Our Impact

Allkem produces core materials that are
fundamental for decarbonisation.

Allkem’s strong lithium development pipeline andvertically integrated production base positions us well to
supply this growing market demand. During FY23, 99% of
Allkem’s revenue was from our lithium products. Currently,
on average, approximately 60% of global demand forlithium is from electric vehicle batteries and this increases
to 70% when stationary energy storage systems are also
included4. Based on our customer profile, we estimate that
95% of our products in FY23 contributed to the energy
storage value chain.

In 2023, the World Economic Forum1 ranked ‘Failure to
mitigate climate change’ as the most severe long-termrisk on a global scale as well as the global risk for which
we are the least prepared. To avoid the worst impacts ofclimate change, global warming must be limited to 1.5°C
by achieving net zero global emissions by 2050.
Decarbonisation of road transport is a critical elementof the global net zero transition, accounting for
approximately 16% of the total reductions required by2030 under the International Energy Agency (“IEA”)’s
Net Zero Emissions (“NZE”) Scenario2.
Batteries remain the most efficient, cost effective
and commercially available route to decarbonise roadtransport, as well as to smooth energy dispatch fromintermittent renewable energy sources. Leading auto
manufacturers have made significant investments inlithium-ion battery technology and are committed toelectrifying their fleets. Chinese EV sales and battery
production data continued to show strong growth
Lithium48%
during the financial year. In the 12 months
toCarbonate
June 2023,
Spodumeneand
Concentrate
Chinese EV sales increased 62% year-on-year;
battery43%
production increased 57% year-on-year.
Demand outside
Concentrate
Revenue to grow; EU and Spodumene
China also continued
US EV
sales
(low
grade)
8%for theby Product12 months to June 2023 rose 20% and
50% Carbonate
respectively.
Lithium

Lithium Carbonate 48%
Spodumene Concentrate
43%

Revenueby ProductSpodumene Concentrate(low grade) 8%
Lithium Carbonate(lower grade recovered
product) 1%
Tantalum <1%

Revenueby End Use

Energy Storage 95%
Industrial 5%(lower grade recovered
product) in
1% line withThe demand outlook for lithium is increasing

Tantalumprojections<1%
these global commitments. Lithium demand
from the IEA aligned with a 1.5-degree scenario (“NZE”)
and announced pledges (“APS”) outline the scale ofthe increase in lithium supply required to achieve thistransition3.

Projected
Lithium
Demandin 2030 Under IEA's
Projected
Lithium
Demandin 2030
Under
IEA's
ClimateDriven Scenarios
ClimateDrivenScenarios
4

Million Tonnes (LCE)

x5.5
3

x3.5

2

1

0

2022

2030 (APS)

2030 (NZE)

On 16 December 2022, we refined our portfolio with thedivestment of Borax Argentina S.A. and the acquisition of
the Maria Victoria tenement in the Olaroz basin. Following
the sale of Borax, 100% of Allkem’s assets and businessactivities are now focused on our lithium growth strategy
and aligned with a lower carbon economy.
According to figures reported by the International Energy
Agency, it is estimated5 that for every one tonne of Lithium
Carbonate Equivalent (“LCE”) we produce and sell into
the electric vehicle (“EV”) value chain, we can contributeto a reduction of around 500 tonnes of greenhouse gas
emissions. This impact is expected to grow as EVs are
increasingly powered by electricity grids transitioning
away from fossil fuels towards renewable energy. With
future uptake in recycling of EV batteries that have reachedtheir end of life, our lithium products have the potential
to continue contributing to even further global emissions
reduction beyond their first use.

1 https://www3.weforum.org/docs/WEF_Global_Risks_Report_2023.pdf
2 https://iea.blob.core.windows.net/assets/6d4dda5b-be1b-4011-9dad-49c56cdf69d1/NetZeroRoadmap_AGlobalPathwaytoKeepthe1.5CGoalinReach-2023Update.pdf p.93
3 IEA 2023. https://www.iea.org/data-and-statistics/data-tools/critical-minerals-data-explorer Licence: CC BY 4.0 Market analysis included in our most recent technical reports
reference scenarios developed by Wood Mackenzie that use demand projections in line with the demand scenarios of IEA APS.
4 Wood Mackenzie 2023
5 https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf p.194 BEV fuel economy BEV battery
40 kWh NMC622. Industry estimate of 0.86kg LCE/kWh.

Climate Change Governance

Board of Directors

Key Management Personnel

Sustainability
Committee

People andRemuneration
Committee

Nomination and
Government
Committee

Audit and Risk
Management
Committee

Independent
Assurance
External Audit
Internal Audit

Executive Leadership TeamThe ASX Listing Rules require the Company to preparea Corporate Governance Statement each year which
discloses the extent to which the Company has followed
the recommendations contained in the 4th edition of
the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations. Our
FY23 Corporate Governance Statement is available on
our website.
Reflecting the importance of sustainability to the company,
Allkem’s Chief Sustainability and External Affairs Officer
reports directly to the CEO and also engages regularly with
Allkem’s Board Sustainability Committee. This Committee
met three times during FY23 and assists the Board in theeffective discharge of its responsibilities in the areas ofsustainability and in particular: safety, health, environment,
community, climate change and human rights. The Charterof Allkem’s Sustainability Committee, and our other Board
Committees are available on the Company website.
Risks, including threats and opportunities identified at thesite level are incorporated in operational risk registers.
Material risks, including those associated with safety,
climate change and human rights are incorporated within
Allkem’s Risk Framework. Allkem’s Board is responsible
for overseeing risk and has assigned accountabilities andresponsibilities for risk management to the Audit and Risk
Management Committee, the Managing Director andexecutive management. Allkem’s Chief Financial Officer isthe custodian of the Risk Management process within theorganisation. The Group risk framework is reviewed at least
annually by the Board Audit and Risk Committee. Key risks
captured in this process are summarised and disclosed inAllkem’s Annual Report.

Links with remuneration
During FY23, 25% of Allkem’s CEO’s allocated short term
incentive (“STI”) performance rights were linked withsustainability focused objectives. These included:••

5% - Finalise Allkem's Net Zero Action Plan
10% - Maintaining expected carbon emissions
intensity across the group

Climate Change Risk
Management
Lithium supply and demand forecasts that Allkem
incorporates in strategic business planning draw on
a range of climate change transition scenarios. These
scenarios are informed by global commitments and actions
including those designed to limit the rise in global warming
temperatures to 1.5°C and avoid the worst effects ofclimate change. The clear message from these transition
scenarios is that the world requires substantially morelithium from both hard rock and brine sources, as well as
recycling, to supply the increasing demand from electricvehicles.
We assess our assets for physical climate related risks
during planning and approvals processes and continue tomanage risks associated with acute and chronic variationsin climate through operational phases. Within the last
three years, Allkem has completed climate change risk
assessments at the facility level for projects in Argentina
and Canada. These assessments incorporate scenarios forphysical risk based on the Representative Concentration
Pathways (“RCP”) 8.5 and 4.5. The Transition scenarios
are the International Energy Agency (“IEA”) scenarios
reflecting ‘Announced Pledges’ and ‘Net Zero by 2050’.
These scenarios reflect those that inform our ongoing
market analysis and internal carbon price values.

Physical Risk Scenarios

Transition Risk Scenarios

RCP 8.5, high-impact scenario

IEA Announced Pledges Scenario (“APS”)—(~2°C aligned scenario)

This pathway results in global average temperatures likely
to increase beyond 4°C by 2100 relative to pre-industrial
temperatures. Under this scenario, significant changes in thefrequency and intensity of acute and chronic physical risks
occur by mid-century.
RCP 4.5, lower impact, intermediate stabilisation scenario
This represents a moderate mitigation scenario aimed atminimising the costs of achieving significant emission reductions.
RCP 4.5 is likely to result in global temperature increases limited
to around 3°C.
“Risks associated with large-scale singular events or tipping
points, such as ice sheet instability or ecosystem loss from tropicalforests, transition to high risk between 1.5°C—2.5°C (medium
confidence) and to very high risk between 2.5°C—4°C (lowconfidence)”.6

This scenario considers climate commitments made bygovernments around the world. The IEA Announced Pledges
Scenario includes projected carbon pricing of USD $135/tonne
CO2 in advanced economies by 2030 and USD $40 tonne CO2 inemerging markets and developing economies7. By 2040 carbon
prices are estimated to reach USD $175. Demand for lithiumincreases by around 3.5 times compared to 2022 levels by 2030
in this scenario8.
IEA Net Zero Emissions by 2050 Scenario (“NZE”)—(~1.5°C aligned scenario)
This scenario presents a pathway to effective climate mitigation
which sees global CO2 emissions reach net zero by 2050. The NZE
scenario includes projected carbon pricing of USD $140/tonne
CO2 in advanced economies by 2030 and USD $90 tonne CO2 inemerging markets and developing economies. By 2040,
advanced economy carbon prices reach USD $205. This scenario
results in an increase in global temperatures limited to 1.5°C
above pre-industrial levels by 2100. Demand for lithium increases
by around 5.5 times compared to 2022 levels by 2030 in the NZE
scenario7.

The focus is now on consolidating our approach to climate
risk assessment consistently for project planning andoperations, supply chain, communities, adaptation andmitigation activities, and investment in R&D, across eachsite, and with Allkem’s Group level Risk Framework.
Allkem uses an internal carbon price for evaluating risk
and opportunities of long-term investment decisions,
including the development of our Net Zero Action Plan.
We continue to review the most appropriate carbon prices
to implement in planning decisions across different
geographies and timeframes. We consider that (in theabsence of an actual carbon price and guidance in thegeography where we are operating), the projected values
in the IEA APS and NZE Scenarios are appropriate guides.
Based on these considerations, internal carbon prices
implemented for long term planning decisions during
FY23 were based on the following values:•

US$50/ tCO2-e (short term)•

US$100/ tCO2-e (up to 2030)•

US$140/ tCO2-e (2030-2040)•

US$175/ tCO2-e (2040-2050)

Allkem’s Group level Risk Framework takes material
risks from site level and corporate risk registers into
consideration and is reviewed at least annually by the
Board Audit and Risk Committee. For risks contained in
the FY23 Group level Risk Framework, we have carried out
further assessment to incorporate potential impacts inthe medium to longer term under various climate change
scenarios. The high-level outcomes of this exercise,bringing together the findings of previous standalone
climate change risk assessments, are summarised in thetable overleaf. This process will form the foundation forfurther integrated consideration of temporal changes inlikelihood and consequence levels as a result of climatechange across our growing business.

6 IPCC 6th Assessment Synthesis Report (March 2023) https://www.ipcc.ch/report/ar6/syr/downloads/report/
IPCC_AR6_SYR_LongerReport.pdf p. 77.
7 IEA 2022a Global Energy and Climate Model Documentation, https://iea.blob.core.windows.net/assets/
ff3a195d-762d-4284-8bb5-bd062d260cc5/GlobalEnergyandClimateModelDocumentation2023.pdf
p.20, License: CC BY 4.0
8 IEA 2023. https://www.iea.org/data-and-statistics/data-tools/critical-minerals-data-explorer Licence:
CC BY 4.0

Physical Climate Risks(Chronic
physical risk)

NaturalDisaster—Major
Environmental
events(Acutephysical risk)•

Risk that climate change, combined with inappropriate resource use impacts water sourcesthat supply our sites.

•

This could also present an opportunity when compared with other lithium producers as Allkem
sites are located in areas of lower water risk (including under the RCP8.5 scenario
up to 2030—based on WRI Water Risk Atlas9).

•

Risk that climate change impacts brine reserves and/or evaporation ponds.

•

Risk for brine reserves could also increase due to more companies operating in the samebasins with a low level of coordination in terms of potential environmental impact.

•

Increased temperatures and/or wind could also increase efficiency of brine evaporation
ponds.

•

Climate change can lead to more frequent and severe extreme natural disaster weather events,
such as storms, floods and wildfires.

•

These events can disrupt mining operations and projects, damage infrastructure, and disrupt
the transportation of key raw materials, finished products, and project inputs.

•

Can also impact the safety of our communities and workforce.

Risk/Opportunity

Impact on surface
and subsurface
water bodies andbrine reserves

Description

Risk

Risk

Description

Lithium productprice risk andmarket changes
in the lithium
industry•

The demand outlook for lithium is increasing in line with global commitments to migrate tolower emissions transport and energy solutions in response to climate change. (Increases byaround 5 times compared to 2021 levels by 2030 in Announced Pledges Scenarios. IEA’s NZE
Scenario projects demand increasing by around 8 times in 2030 compared to 2021 levels.)•

Allkem’s strong lithium development pipeline and vertically integrated production basepositions us well to supply this growing market.

•

Reaching our Net Zero Emissions goal in operational scope 1 and 2 emissions by 2035 will
demand increasing efforts and technology innovation but will also reduce exposure to carbon
prices implemented in different regions.

•

Maintaining/increasing recognition as a low emissions lithium supplier will also present an
opportunity with customers in the EV value chain.

Net Zero Transition(including ESG
regulations
such as carbon
price/tax)

9 https://www.wri.org/applications/aqueduct/water-risk-atlas/

Risk/Opportunity

Risk

Opportunity

Transition Climate Change Risk

Net Zero Action Plan
Allkem has a Board approved target of Net Zero for
operational scope 1 and 2 GHG emissions by 2035. Ouroriginal Net Zero commitment was made in 2021 withrespect to the Olaroz Stage 1 and Stage 2 developments for
Orocobre. Following completion of the merger with Galaxy
Resources Ltd in August 2021 we expanded the scope ofthe commitment to include all of Allkem’s assets.

Due to Allkem’s planned growth in lithium production,baseline absolute emissions estimates continue toincrease in the short to medium term as new andexpansion projects come online. With no GHG mitigation
measures in place, baseline emissions were estimatedto reach a steady state of approximately 500kt/year(”total annual baseline GHG emissions”).

Based on this expanded commitment, during FY23 wedeveloped our first action plan towards achieving thisgoal. Projected GHG baseline emissions (scope 1 and 2)
were estimated for the period from 2022-204510. Thisbaseline included projected emissions from existing
operations and projects as of the beginning of FY23.

Main operational emissions sources include fossil fueluse for onsite machinery, electricity, and process heatgeneration. Emissions are also associated with reagent use
at our lithium carbonate plants. To provide further context,
the main sources of Allkem’s scope 1 and 2 operationalemissions during FY23 are summarised below:

AllkemFY23
FY23Lithium
LithiumProduction
ProductionOperational
OperationalGHG
GHGEmissions
EmissionsSources
Sources
AllkemDieselTransportation

Reagent Use
CO2 at Olaroz

2%4%DieselElectricity
Generation

Natural Gas
Process Heat
Generation

13%
14%
23%

Natural Gas
Electricity
Generation

44%

DieselOn-siteConsumption*

OlarozMt Cattlin Operations*e.g. haul trucks and mine equipment

Olaroz (Stage 1)
34%/46,100

Allkem FY23
Total Scope 1 & 2
GHG Emissions~135 ktCO2e

Olaroz (Stage 2 Expansion)
13%/17,100
Mt Cattlin
41%/54,900
Sal de Vida
12%/16,000

10 Note that these estimates include Olaroz Stage 1, 2 and 3, Sal de Vida 1 and 2,
and James Bay mine. Estimates were made prior to the updated technicalstudies and do not include the Mt Cattlin mine life extension announcement.

Diesel 57%

Allkem FY23
Total Energy Use~2,000 TJ

Natural Gas 43%

A significant outcome of our net zero action plan projectis the development of a Net Zero Analytical Planning Tool.
As we increase our lithium production, we will continue to
use this tool to evaluate the viability of proposed emissions
reduction projects.

Opportunity 2

We have identified a series of preliminary GHG mitigation
opportunities designed to reduce initial projectedbaseline emissions. These opportunities have a total directemissions mitigation potential of approximately 60% when
fully implemented. These projects have focused on proventechnology and are primarily based on transitioning awayfrom fossil fuels for electricity generation on site, as well as
increasing the efficiency of process heat generation.

•

Incorporates increased electricity generation from solar
PV.

•

Combined heat and power diesel plant to increase
efficiency of required heat generation and further reduce
process emissions.

•

During FY23, this project was in the detailed engineering
stage. Further investigations are being conducted todetermine the feasibility of battery storage systems at
this elevation.11•

Initial estimates are that when fully implemented,
this opportunity could reduce total group level annual
baseline GHG emissions by around 17%. Lower energy
costs associated with PV generation are also estimatedto contribute to annual savings of approximately
US$12 million.

Each of the mitigation and offset opportunities currently
included in our Net Zero Plan, and the estimatedcontribution towards reducing projected annual baseline
emission are outlined below.

Sal de Vida Power Purchase Agreement (“PPA”)
Hybrid Generation Plant—Solar Photovoltaic (“PV”)
and Combined Heat and Power (“CHP”)

Net Zero
Zero Summary
Net
Summary

Opportunity 3
Sal de Vida Natural Gas Supply

-62%

-46%
Baseline
Emissions

Mitigation
Opportunities•

Involves building a 39 km Natural Gas Pipeline to
replace diesel used at the Sal de Vida CHP plant. Natural
gas is a more efficient, cheaper and lower emission fuelthan diesel.

•

This opportunity is in the engineering stage. Further
studies are underway to confirm value, price andschedule.

•

Early estimates are that this opportunity could reduce
annual total baseline emissions by a further 4%. Subject
to detailed engineering, the capital expenditure for theconstruction of the Gas Pipeline is estimated to bearound US$ 31 million. Annual savings in fuel costs are
estimated to be approximately US$10 million.

OffsetOpportunities

Mitigation Opportunities
Opportunity 1

Additional Electrification Opportunities

Olaroz Lithium Facility (Sales de Jujuy) Combined Heatand Power (“CHP”)

Olaroz Lithium Facility (Sales de Jujuy)•

Full commissioning of the heat recovery system at
Olaroz, utilising heat produced by the generation ofelectricity for process heat requirements. This will
reduce the amount of natural gas used per tonne oflithium carbonate produced.

•

This project is now in the commissioning stage.

•

The CHP project is estimated to contribute to potential
annual savings of around US$2.5 million (pre-tax), withcapital expenditure estimated at around US$13 million.
This opportunity has the potential to reduce total annual
baseline GHG emissions by 7-10%, from FY24.

•

Further opportunities to increase renewable electricity
use at the Olaroz Lithium Facility have also been
identified including:–

Options for connecting the Olaroz Lithium Facility to
the electricity grid. This would enable the purchase ofrenewable electricity from existing suppliers–

Installation of electric boilers

These opportunities are in the desktop study phase.
Early estimates for these projects show potential forfurther GHG emissions reductions of around 31% of
the total annual baseline GHG emissions.

11 The initial contract for this power purchase agreement was signed in October 2023, prior to the publication of this report.

Offset Opportunities

Ongoing projected emissions estimates will continue to berefined throughout project planning and approvals phases,
and as new technology becomes available. Allkem’s new
projects and expansion projects are being designed
considering the group level net zero target.

We have also identified potential for generating offsetsthat exceed the remaining GHG emissions throughdeveloping an onsite photovoltaic plant. This would
remove the need to purchase electricity from the gridand also create a potential surplus to sell to other usersof the electricity grid.

Scope 3 emissions

Next steps
To reach ambitious global net zero goals, new technology
will be required to address difficult to abate emissions.
We continue to research and monitor the development of
evolving solutions. These include opportunities for further
electrification of mine site machinery to utilise lower
emissions electricity generation. Opportunities to increase
the efficiency of the capture and reuse of process reagentsand associated emissions are also being investigated.

To align our net zero target with the Science Based
Target Initiative, we also need to address our material
scope 3 emissions. We report our scope 3 emissions
for each operation and continue to expand the sources
included in our calculations. Through this investigation
we have identified areas where we can focus efforts toencourage further emissions reduction within our value
chain. The graphs below compare the operational scope
1, 2 and 3 emissions from our hard rock and brine-based
lithium operations. This year, each operation produced
approximately 16kt of LCE.

Spodumene to Lithium Hydroxide—Mt Cattlin Value Chain GHG Emissions (tCO2e)

Spodumene to Lithium Hydroxide—Mt Cattlin Value Chain GHG Emissions (tCO2e)020,000 Cattlin
40,00080,000100,000
Spodumene to Lithium Hydroxide—Mt
Value 60,000
Chain GHG
Emissions(tCO2e)120,000

Purchased Goods
and Services
Purchased Goods
and Services
Upstream ProcessingofFuel and Energy
Upstream Processing of
FuelTransportand Energy
UpstreamofGoods and Services
Upstream Transport ofGoods andServices
Operational
Emissions(Mt Cattlin Scope 1 & 2)
Operational Emissions(Mt Cattlin Scope
1 & 2)
Downstream
Transportof
Spodumene Concentrate
Downstream Transport ofDownstreamof
SpodumeneProcessing
Concentrate
Spodumene Concentrate into
Lithium
Hydroxide
Downstream
Processingof
Spodumene Concentrate into
Lithium Hydroxide

020,0004%
1%40,00060,00080,000100,000

120,000

140,000

160,000

180,000

140,000

160,000

180,000

4%

1%
<1%
<1%

20%
20%

12%
12%

63%
63%

Mt Cattlin Scope 1&2 GHG Emissions

Mt Cattlin Scope 3 GHG Emissions

Mt Cattlin Scope 1&2 GHG Emissions

Mt Cattlin Scope 3 GHG Emissions

Brine
Value
Chain
GHG
Emissions(tCO2e)BrinetotoLithium
LithiumCarbonate—Olaroz
Carbonate—Olaroz
Value
Chain
GHG
Emissions(tCO2e)0
20,00060,00080,000Brine to Lithium Carbonate—Olaroz
Value 40,000
Chain GHG
Emissions(tCO2e)100,000
Purchased Goods
and Services
Purchased Goods
and Services
Upstream Processing ofFuel and Energy
Upstream Processing ofFuel and Energy
Upstream Transport ofGoods and Services
Upstream Transport ofGoods and Services
Operational Emissions(Olaroz Scope 1 & 2)
Operational Emissions(Olaroz Scope 1 & 2)
Downstream Transport of
Lithum Carbonate
Downstream Transport of
Lithum Carbonate

020,00040,00060,00080,000

52%
52%

7%
7%
7%
7%
32%
32%
1%
1%

Olaroz Scope 1&2 GHG Emissions

Olaroz Scope 3 Ghg Emissions

Olaroz Scope 1&2 GHG Emissions

Olaroz Scope 3 Ghg Emissions

100,000

120,000

140,000

160,000

180,000

120,000

140,000

160,000

180,000

Metrics and Targets
The following short term, intermediate and long-term emissions targets have been designed, considering Allkem’s
projected growth and net zero by 2035 target:
KPIs

FY23

FY23

FY24

FY28

FY35

Olaroz Lithium Facility

Value

TargetTargetTargetTargetOperational Emissions Intensity
Scope 1+2 (tCO2-e/t)

2.8

3.25

3.25

<3.0

012

Renewable energy (% of processelectricity and heat)

0

0

0

50

100

Mt Cattlin

Value

TargetTargetTargetTargetEmissions Intensity Scope 1+2(tCO2-e/t LCE)

3.35

2.36

3.6

3.6

NA

Sal de Vida

Value

TargetTargetTargetTargetEmissions intensity Scope 1+2(tCO2-e/t)

NA

NA

NA

1.913

012

Renewable energy (% of processelectricity and heat)

0

0

0

4013

70

Value

TargetTargetTargetTarget

NA

NA

NA

0.875

012

James Bay

Emissions intensity (tCO2-e/tLCE)

Further information relating to our scope 1, 2 and 3 emissions and water use at the facility level are reported in
our annual Sustainability Reports and Performance data available on our website.

12 Includes offsets
13 Target linked to IFC fundingForward Looking Statements
Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause
the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking
statements, including but not limited to, the risk of further changes in government regulations, policies or legislation, risks that further funding may be required, but are unavailable, forthe ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing ofmineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones
at the Company’s Projects; and risks associated with general economic conditions. Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, theCompany disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations
in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any
circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matterof this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.

allkem.co