Incitec Pivot Ltd

The IPL Board oversees IPL's climate change strategy, performance and governance responsibilities. The IPL Climate Change Policy was adopted by the Board during 2019, and the IPL Board Charter and the Audit and Risk Management Committee Charter formally enshrine Directors' roles in relation to the strategic management and oversight of climate change related issues. Climate-related issues are integrated into the Board's review and guidance of business strategy, major plans of action, risk management policies, major capital expenditures and acquisition and divestiture decisions. This includes oversight of the application and use of IPL's internal carbon pricing model. [...] Each year IPL commissions an independent review of the alignment between our climate change policies and those of the industry associations of which we are a member. These annual reviews form part of our ongoing industry association monitoring activities. Following feedback from stakeholders regarding our method of review, this year IPL has introduced a new method that we believe will cater to those important stakeholders and provide transparency for our shareholders. [...] As part of the 2023 review, IPL formalised a framework for governance of our memberships of associations, including guidance where a difference in publicly stated climate change policy has been identified. This enables an open dialogue between IPL and the industry association, including an exchange of information on any identified difference.

Our Decarbonisation and Energy Transition Committee, also chaired by our MD&CEO and comprising members of our Executive Management Team, is responsible for developing our Net Zero Transition Pathway and strategically managing business risks and opportunities relating to climate change. IPL's Climate Change Policy was adopted by the Board in 2019, to oversee climate change strategy, performance and governance responsibilities. For more information on our management of climate change risks and opportunities please visit our 2022 Climate Change Report. [...] Our Ethics Committee, comprising executives and senior management from across the business, ensures: −ethical policies and practices are implemented as a standardised practice; −changes to policies or standards related to ethical behaviour are discussed and implemented; −appropriate procedures are in place to monitor and report on compliance with these standards; and −training needs and materials with respect to ethical standards and behaviour are reviewed. [...] Dyno Nobel also participates in trade and industry organisations such as the IME (Institute of Makers of Explosives). These professional and industry connections are important to our regulatory risk management, and we ensure that key employees across our business, those who are closest to our customers and markets, are kept abreast of regulatory developments.

As part of the 2023 review, IPL updated the method of review and formalised a framework for governance of our memberships of associations, including guidance where a difference in publicly stated climate change policy has been identified. This enables further engagement with industry associations as appropriate. In 2024, the review assessed the alignment between IPL and the energy and climate change positions of 19 Member Associations in the following areas: [...] Each year IPL commissions an independent review of the alignment between our climate change policies and those of the industry associations of which we are a member. These annual reviews form part of our ongoing industry association monitoring activities.

Launch of Sustainability Steering Committee

In 2021, we launched the IPL Sustainability Steering Committee, chaired by our Managing Director and CEO (MD&CEO) and comprising executive management members. The committee provides executive oversight of the sustainability strategy and direction on the management of non-financial (ESG) issues material to the long-term financial sustainability of the IPL Group. This includes driving change across our business, enhancing our sustainability monitoring, as well as exploring trends and opportunities for improvement.

The IPL Decarbonisation and Energy Transition Committee was also launched this year. Chaired by IPL's MD&CEO and consisting of executive management membership, the committee is responsible for the development of IPL's Net Zero Pathway and the strategic management of business risks and opportunities relating to climate change.

The IPL Board oversees IPL's climate change strategy, performance and governance responsibilities. The IPL Climate Change Policy was adopted by the Board during 2019, and the IPL Board Charter and the Audit and Risk Management Committee Charter formally enshrine Directors' roles in relation to the strategic management and oversight of climate change-related issues. Climate-related issues are integrated into the Board's review and guidance of business strategy, major plans of action, risk management policies, major capital expenditures and acquisition and divestiture decisions. This includes oversight of the application and use of IPL's internal carbon pricing model. [...] During 2022 we engaged a specialist third party to conduct a review of our memberships of associations focusing on the climate positions of relevant associations. The review formed part of our ongoing industry association monitoring activities and assessed the alignment between the views of these associations and IPL in the following areas: → The Paris Agreement, and Net Zero by 2050 (which IPL supports); → Climate Change Policy and position on climate risk (IPL acknowledges, assesses and reports on climate risks in line with TCFD guidelines); and → Active investigation of, or support for, lower-emissions technologies and other pathways to reducing or offsetting emissions (which IPL is actively engaged in). Associations were assessed as: The Member Association's position is in line with IPL's, or is more progressive than IPL's. The Member Association's position is not in line with IPL's but it is also not contrary to IPL's stated position, OR IPL's position is more progressive than its Member Association. The Member Association does not have a position in relation to the topic but IPL does, OR IPL's position is significantly more progressive than its Member Association. Our next review will be conducted in 2023.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]The IPL Climate Change Policy states that "We support the international climate agreement developed at the 2015 Paris Conference of Parties, as well as the Nationally Determined Contributions of the countries in which we operate.
We believe carbon pricing can be an effective tool in reducing greenhouse gas emissions and advocate for a global, technology-neutral approach which delivers real reductions fairly and equitably. " IPL conducts its engagement activities in line with this statement and in order to reach our Net Zero ambition by 2050. The IPL Climate Change Policy was endorsed by the Board and describes how the management of climate change-related issues is incorporated into the Company's six Strategic Agenda Value Drivers.

Day-today management of Company affairs and the implementation of the corporate strategy and policy initiatives are formally delegated to the Managing Director and CEO. Responsibility for climate change strategy and governance resides with the Executive Team, advised by the Corporate Sustainability Manager, The Carbon Pricing Steering Committee (CPSC, which is Chaired by the Corporate Sustainability Manager) and the Decarbonisation and Energy Transition Steering Committee. The DETSC is tasked with developing the Company's Net Zero Pathway and to manage the risks and strategic opportunities associated with climate change. The DET Steering Committee comprises the following selected executives, aligning actions and engagement with policy, company strategy, financial performance and financial processes for the Company:
• The CEO Chairs the DETSC and, as the person with Board delegated authority to implement the corporate strategy and policy initiatives, is responsible for managing climate-related issues.
• The CFO is a member of the DET SC due to the financial and strategic aspects of the management of climate change.
• The Chief Technology Development Officer (CTDO) is a member due to his expertise in developing low carbon products and services.
• The VP Strategic Projects in tasked with the development of IPL's Net Zero Transition Plan and projects to support it.
• As per IPL Policy, no statements are made to external parties without IPL legal review. This legal review ensures that all statements align with IPL strategies approved by the Board. These statements include, but are not limited to, formal submissions regarding proposed government policies, statements to media organisations and formal statements to trade associations

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, but we plan to have one in the next two years

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]The IPL Climate Change Policy states that "We support the international climate agreement developed at the 2015 Paris Conference of Parties, as well as the Nationally Determined Contributions of the countries in which we operate. We believe carbon pricing can be an effective tool in reducing greenhouse gas emissions and advocate for a global, technology-neutral approach which delivers real reductions fairly and equitably.

# 5. Membership and climate review of industry associations

## Introduction
Membership of industry associations is an important part of our advocacy work, enabling us to monitor industry issues and collaborate with other organisations in specific areas. This appendix provides a review of our membership of industry associations, with a specific focus on climate change advocacy.

## Key Considerations
In 2022, we undertook a structured review to assess our affiliation with various industry associations. The key considerations were:
- Consistency of the associations' climate change policies with our own.
- Influence and credibility of the associations in shaping policy.
- Implications for our reputation.
- Alignment with our strategic objectives.

## Review Process
The review process was structured as follows:
1. **Identification** of relevant associations.
2. **Analysis** of climate policy positions.
3. **Consultation** with internal stakeholders.
4. **Decisions** regarding membership status or continued engagement.
5. **Disclosure** of our assessment and consequent actions.

The review highlighted several associations with which our positions are fully aligned, some with partial alignment, and a few whose positions diverge from ours.

## Review Outcomes
Our review identified actions in three main categories:
1. **Fully Aligned:** Continued engagement and collaboration.
- Examples: Association A, Association B.
2. **Partially Aligned:** Engaged but continue monitoring.
- Examples: Association C, Association D.
3. **Not Aligned:** Review membership status.
- The
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