CLIMATE CHANGE

STATEMENTJULY 2021

Statement on

Climate Change
As a dynamic global lithium carbonate supplier and an established producerof boron, Allkem accepts the international scientific consensus of theIntergovernmental Panel on Climate Change (IPCC), recognises the 2015 Paris
Agreement, and supports its commitment to limit global average temperaturerise to below 2°C and pursue 1.5°C. This requires immediate systematicreductions in global CO2 emissions, to reach carbon neutrality by 2050.
Allkem acknowledges that climate change is a sharedglobal challenge that requires collaborative action andengagement. Allkem is committed to the reduction ofglobal greenhouse gas emissions and the transition of its
business to net-zero emissions by 2035 considering scope
1 and 2 emissions.
Allkem’s products, operations and communities are
impacted by the physical and transitional risks andopportunities presented by a changing climate.
These include:
Demand for lithium products growing withincreased demand for electric vehicles andenergy storage systems.
Changing weather patterns could impact areasof food production, generating higher demand
for fertiliser that uses borates produced by theCompany.
Natural evaporation forms a critical partof Allkem’s lithium production process,making the Company’s productivity naturally
dependent on climatic variables including solar
energy availability.
Increasing expectations from investors,
communities and other stakeholders to better
understand operations’ impact and response to
climate change, generating higher demand for
information and improved communication tomaintain reputation.
Notwithstanding the physical and transitional risks thata changing climate presents, Allkem identifies climatechange as a strategic opportunity to support the world’sincreasing requirements for clean, secure and affordableenergy.

allkem.co

As a lithium and boron chemical producer supporting thetransition to a low-carbon economy, Allkem recognises
the need for large reductions in global greenhouse gas
emissions and will be seeking ongoing opportunities toreduce the emissions-profile of the Company’s activities.
Allkem’s greenhouse gas emissions data and progress
towards reduction targets are disclosed annually in theEnvironmental Performance Data.

Task Force on Climate-related
Financial Disclosures (TCFD)
In 2020, Allkem developed a roadmap for reporting
integrated climate change risks and opportunities inline with the Recommendations of the TCFD. The TCFD
provides a framework to better understand physical andtransition climate-related risks.
Allkem has laid solid groundwork for climate management
in recent years, establishing emissions inventory
procedures and climate due diligence processes inalignment with global methodologies and best practice.
Over the next three years Allkem will work to: strengthen
the foundations of its climate risk approach; embed andintegrate climate-related risks, targets and metrics intocross-departmental systems and processes; and innovate,
mitigate and adapt to enhance the Company’s strategicand operational resilience to climate change.
In May 2021, Allkem declared its support for the Task
Force on Climate-related Financial Disclosures (TCFD),
joining more than 2,000 organizations in demonstrating acommitment to building a more resilient financial systemand safeguarding against climate risk through better
disclosures.
Annual updates on the Company’s climate-related
actions and initiatives are disclosed in Allkem’s Climate
Management Approach Disclosure, with any material risks
and opportunities disclosed in the Annual Report.