Incitec Pivot : 2023 IPL CDP Climate Change Report (2022 IPL FY)

Incitec Pivot CDP Climate Change Questionnaire 2023 Friday, May 19, 2023

Welcome to your CDP Climate Change Questionnaire 2023

(Note: This reporting period aligns with IPL's 2022FY)

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Incitec Pivot Limited (IPL) is a global diversified industrial chemicals company that supplies explosives, industrial chemicals, fertilisers and related services to the mining, infrastructure & construction, chemicals and agriculture industries. IPL has extensive operations throughout Australia, the United States, Canada, Mexico, Europe and Indonesia, including over 30 manufacturing plants, scores of distribution centres and well-established channels to market. The Company employs over 5,000 staff worldwide, including almost 2,000 staff in Australia and over 2,500 staff in North America.

IPL manufactures a range of explosives and fertiliser inputs and products globally. Through the Dyno Nobel brand, IPL is the second largest supplier of explosives in Australia and is a market leader in North America. Products include a complete range of commercial explosives including ammonium nitrate bulk explosives, packaged emulsions and dynamite as well as a range of initiating systems. Services provided include expert technical consulting to customers such as mining companies and their suppliers, quarries and companies supporting the construction industry. In addition, IPL manufactures various industrial chemical products used in water treatment, process manufacturing and other industrial applications.

Through the Incitec Pivot Fertilisers brand (IPF) IPL is Australia's largest supplier of fertilisers, dispatching approximately two million tonnes each year for use in the grain, cotton, pasture, dairy, sugar and horticulture industries. This year, products including ammonium phosphates, ammonia, urea, sulphuric acid and superphosphates were manufactured at five IPL facilities across eastern Australia, including Australia's only ammonium phosphate manufacturing facility. IPL has a long- term commitment to investment in soil nutrition research and its Nutrient Advantage laboratory is industry accredited. As a leading provider of nutrition advice to farmers and customers, IPL promotes the sustainable use and safe handling of its fertiliser products to customers and farmers.

Due to the energy intensity of manufacturing nitrogen-based fertiliser and explosives products, IPL's manufacturing facilities make up ~98% of the Company's global Scope 1 and 2 GHG. Natural gas is used as both a feedstock and an energy source, with ~37% of global GHG arising from the use of natural gas for hydrogen, and ~34% from the use of natural gas for energy to drive chemical reactions and make electricity. ~19% of GHG are N2O process emissions from the manufacture of nitric acid, which is then used to make ammonium nitrate explosives products. Only ~9% of the

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Incitec Pivot CDP Climate Change Questionnaire 2023 Friday, May 19, 2023

Company's global GHG arise from purchased electricity (Scope 2). , major capital investment is required to decarbonise operations.

During this reporting period, the 2022 IPL Financial Year (ending 30 September 2022), IPL's Decarbonisation and Energy Transition Steering Committee continued to work on 4 major projects to progress IPL's Pathway to Net Zero:

1. Moranbah Tertiary Nitrous Oxide (N2O) Abatement: Approved for installation in 2024. Although this facility was built in 2012 with secondary abatement of N2O already in place, this project will deliver IPL's short-term global GHG absolute reduction target of 5% by 2025 through increased abatement of N2O.
2. The Gibson Island green ammonia project aims to achieve a 12% reduction in IPL's global
   GHG through conversion of an existing ammonia plant from natural-gas-for-H2 to electrolysis-of-water-for-H2 using renewable energy (green hydrogen). This is at Front End Engineering Design (FEED) stage and has a A$13.7m Federal Government ARENA grant in conjunction with Fortescue Future Industries (FFI).
3. Waggaman, Louisiana Carbon Capture and Storage (CCS) would achieve a 22% reduction. This project is also at Front End Engineering Design (FEED) stage, with MOUs signed for the transportation and sequestration of the pure CO2 stream generated in the ammonia plant, which requires only drying and compression before sequestration by a third party. Louisiana is an ideal site for CCS due to its geology, its existing CO2 pipeline infrastructure, and a range of potential local partners with experience in using proven technology and management techniques to meet the very stringent regulatory requirements set by the US EPA for Class VI wells. Subject to the successful completion of the FEED study, construction of the carbon capture unit at WALA is expected to begin in 2023 and be completed by the end of 2025. Class VII well approval may take until 2026- 27.
4. Louisiana, Missouri N2O Abatement was under investigation during the reporting period, with at least 11% reduction achievable. This is IPL's only nitric acid plant without some form of abatement already installed.

Work is also underway to establish systems to track and manage scope 3 by FY25, with an IPL Scope 3 Manual completed to assist the business units with tracking and managing their scope 3.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data and indicate whether you will be providing emissions data for past reporting years.

Reporting year

Start date

October 1, 2021

End date

September 30, 2022

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Incitec Pivot CDP Climate Change Questionnaire 2023 Friday, May 19, 2023

Indicate if you are providing emissions data for past reporting years

No

C0.3

(C0.3) Select the countries/areas in which you operate.

Australia

Canada

Mexico

Turkey

United States of America

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

AUD

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

C-CH0.7

(C-CH0.7) Which part of the chemicals value chain does your organization operate in?

Row 1

Bulk organic chemicals

Bulk inorganic chemicals

Ammonia

Fertilizers

Nitric acid

Other chemicals

Other, please specify

Ammonium nitrate (explosives)

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Incitec Pivot CDP Climate Change Questionnaire 2023 Friday, May 19, 2023

C0.8

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your	Provide your unique
organization	identifier
Yes, a Ticker symbol	ASX:IPL
Yes, another unique identifier, please specify	LEI:
IPL has an LEI that is quoted for all derivative trades and is consistent	254900UW2F3BKV6Z9V18
across transactions. (Each debt instrument on issue also has a ISIN
but they differ per debt issue)
Yes, another unique identifier, please specify	INCZY
The American Depository Receipts (ADR) program sponsored by Bank
of New York Mellon is traded on the New York Stock Exchange. The
stock DR symbol is INCZY.

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Incitec Pivot CDP Climate Change Questionnaire 2023 Friday, May 19, 2023

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position or	Responsibilities for climate-related issues
committee
Chief	The CEO is a Board Member and Chair of the IPL Decarbonisation and Energy
Executive	Transition (DET) Steering Committee, which comprises selected executives and other
Officer (CEO)	senior management. The CEO and the DET Steering Committee are responsible for the
	Company's Net Zero Pathway and the strategic management of business risks and
	opportunities related to climate change, including the incorporation of opportunities into
	business strategy.
Board-level	The Audit and Risk Management Committee (ARMC) of the Board has oversight of
committee	climate-related risk management, although the Board retains overall accountability for
	IPL's risk profile. The ARMC reviews risk scenarios, risk analyses and mitigation
	strategies, as well as how climate change-related risks are integrated into IPL's risk
	management processes. There are three key ways in which the ARMC receives
	reporting on climate change-related risks and opportunities:
	1. Via standard risk reporting, which is undertaken at each of the five ARMC meetings
	per year;
	2. The annual Risk Review process with the Executive Team (ET) that informs the
	ARMC on the Group's strategic risks and mitigation plans; and
	3. By exception, other significant events and progress related to the management of
	climate change-related risks are reported to the ARMC as required.
	In addition, the Charter of the ARMC requires IPL's future climate related scenarios to
	be updated every three years and reported to the ARMC.
Board-level	The Health, Safety, Environment and Community (HSEC) Committee of the Board
committee	assists the Board in overseeing the Group's health, safety, environment and community
	(HSEC) performance and governance responsibilities, and the adequacy of the Group's
	HSEC framework. This includes the management and governance of climate change
	issues relating to employee health and safety, such as heat stress and risks to our
	people associated with extreme weather events; emergency planning and response
	procedures for our operations relating to extreme weather events; and the management
	of risks to the environment which are likely to be exacerbated by climate change, such
	as procedures to monitor and plan for an increasing risk of pond overflows and other
	releases to the environment due to increasing or shifting rainfall patterns over time. The
	HSEC Committee also assists the Board in its review and approval of IPL's annual
	Sustainability Report.

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