2023 Sustainability Report

Coronado Global Resources' 2023 Sustainability Report highlights progress in environmental stewardship, safety, community engagement, and workforce diversity, while addressing climate change and ethical business practices.

Summary

• Coronado Global Resources' 2023 Sustainability Report details the company's performance and material risks for the year ending December 31, 2023.
• The company is a leading international producer of high-quality metallurgical coal, essential for steel production.
• In 2023, Coronado generated $2.9 billion in Group Revenue and paid $630 million in corporate taxes, government royalties, and rebates.
• The company increased water reclamation and recycling by 18% in both the US and Australia.
• Coronado's Ventilation Air Methane (VAM) project eliminated 264,850 tonnes of CO2 equivalent emissions.
• The Group TRIR was 0.77 as of December 31, 2023, a 45% year-on-year improvement.
• The company is progressing with expansion projects at Buchanan and Curragh Underground, subject to regulatory approvals.
• Coronado is committed to reducing Scope 1 and 2 greenhouse gas emissions by 30% by 2030.
• The company aims to increase female workforce participation in Australia by 5% by 2025.
• Coronado is actively engaged in initiatives to lower emissions and has made significant strides towards achieving short-term goals.

Sentiment

Score: 7

Explanation: The document presents a balanced view, highlighting both achievements and challenges. While revenue decreased, the company demonstrates a strong commitment to sustainability, safety, and community engagement, resulting in a moderately positive sentiment.

Positives

• Coronado achieved its second-highest revenue performance in history with $2.9 billion.
• The company significantly improved its safety results, with a 45% reduction in the Group TRIR.
• Coronado is investing in decarbonisation technologies, including the successful VAM project.
• The company is committed to fostering a diverse and inclusive workplace.
• Coronado is actively engaged in community support and cultural heritage management.
• The company is progressing with strategic growth projects at Buchanan and Curragh Underground.
• Coronado is focused on asset optimization and capital management to create shareholder value.
• The company is committed to ethical business conduct and risk management.
• Coronado is actively rehabilitating mined land and improving water management practices.
• The company is increasing training hours provided per employee.

Negatives

• Group revenue was down 19% compared to 2022 due to lower average met coal prices.
• The company faced challenges from high inflation, increased taxes and royalties, and weather events in Queensland.
• Coronado experienced some unforeseen geotechnical events in the U.S.
• Coronado's Scope 1 and 2 absolute operational emissions increased by 0.23m tCO2-e compared to 2022.
• The company's Australian operations total waste was greater than the previous year.

Risks

• The company faces economic, competitive, and regulatory factors that could cause actual results to differ materially from forward-looking statements.
• Transition risks under the NZE2050 scenario could significantly impact demand for met coal.
• Physical risks, such as flooding and extreme heat, could disrupt supply routes and damage infrastructure.
• The company faces the risk of not meeting investor, financial, or other key stakeholder groups' expectations, leading to a breach of Coronado's social license to operate.
• There is a risk of operations being impacted by weather-related events potentially resulting in lost production, supply chain disruptions, and increased costs.
• The company faces the risk of being unable to attract and retain employees to an extent that has an impact on production.

Future Outlook

Coronado aims to achieve a production target of 20.5 Mtpa by 2025 and is progressing with expansion projects at Buchanan and Curragh Underground.

Management Comments

• Douglas Thompson, Managing Director and Chief Executive Officer: 'I am pleased to share with you Coronado Global Resources 2023 Sustainability Report, in which we outline the significant progress our business has made to ensure we remain a socially responsible and sustainable miner of high-quality met coal for decades to come.'
• Douglas Thompson, Managing Director and Chief Executive Officer: 'We remain committed to fostering a diverse inclusive workplace across our operations and remain on target with our strategic plans in this area.'

Industry Context

The report highlights the critical role of metallurgical coal in steel production, particularly for renewable energy infrastructure, positioning Coronado as a key player in the transition to a low-carbon future.

Comparison to Industry Standards

• The report references the Global Reporting Initiative (GRI) Standards and the Task Force on Climate-Related Financial Disclosures (TCFD), indicating alignment with international sustainability reporting frameworks.
• The company's commitment to reducing Scope 1 and 2 emissions by 30% by 2030 aligns with industry efforts to decarbonize operations.
• Coronado's engagement with industry associations such as the Queensland Resources Council (QRC) and the Metallurgical Coal Producers Association (MCPA) demonstrates a commitment to industry collaboration and best practices.

Stakeholder Impact

• Shareholders: The report provides transparency on the company's financial performance and sustainability efforts, which can influence investment decisions.
• Employees: The report highlights the company's commitment to safety, health, and diversity, which can impact employee morale and engagement.
• Customers: The report assures customers of the company's commitment to responsible sourcing and sustainability, which can strengthen business relationships.
• Communities: The report demonstrates the company's commitment to community engagement and cultural heritage management, which can foster positive relationships with local communities.
• Suppliers: The report outlines the company's expectations for suppliers to meet sustainability standards, which can influence supply chain practices.

Next Steps

• Continue to progress expansion projects at Buchanan and Curragh Underground.
• Develop a waste reduction strategy.
• Improve TCFD reporting year on year.
• Develop a group Environmental Management System (EMS).
• Develop a tailings management framework.
• Develop a diversity and inclusion framework.
• Implement structured graduate program and a leadership development framework.
• Support employee volunteering in the community.
• Create shared valued opportunities within the communities in which we operate.
• Develop a customer and supplier sponsor partnership program.
• Launch a responsible group procurement policy.
• Increase and promote engagement with Indigenous businesses (in Australia).

Key Dates