Kumba Iron Ore Ltd

### Policy advocacy

To take a lead on issues that affect our business in a way that is collaborative and aimed at society's wider goals.

##### Milestones and targets

**2020:** **Extended into 2021**
Finalise advocacy action plans in support of key sustainability issues. Provide scholarship and training opportunities for policymakers in regions in which we operate.
**2025:** Regular involvement in priority policy and governance debates.
**2030:** External recognition of our leadership on policy advocacy.

Strong levels of engagement in policy debates.

The Board has delegated responsibility to the Social, Ethics and Transformation Committee (Setco) for the oversight and reporting of Kumba's social, environmental and governance performance. [...] The Setco holds accountability for overseeing how Kumba manages its most material sustainability issues. This includes overseeing that Kumba is a responsible corporate citizen, ensuring that the Company attains its goals relating to the management of safety, health and the environment, as well as social, transformation, permitting, regulatory compliance, risks and opportunities and ethics across the Company. The Committee's responsibilities include developing sustainable development policies and guidelines to manage these focus areas, monitoring performance against key indicators, and facilitating stakeholder participation, co-operation and consultation on key issues. [...] The Setco is chaired by Buyelwa Sonjica and meets four times a year. The Chief Executive is a member of Setco and executive heads of safety, health and environment, corporate affairs and human resources attend the Setco meetings as invitees, to provide updates on the above mentioned critical areas and any other related business of the Committee.

On climate-related issues, the Board has delegated responsibility to the Social, Ethics and Transformation Committee (Setco). This year, the Board and Setco discussions on climate change included a review of Kumba's decarbonisation strategy and roadmap, managing the Company's first stand-alone climate change report, and providing oversight of progress in implementing Kumba's SMP, including specifically its progress on energy and water, and its roll-out of the large-scale solar photovoltaic (PV) farm at Sishen. [...] The Board has traditionally delegated responsibility on climate-related issues to the Setco, which is accountable for overseeing how Kumba manages its most material sustainability issues, including its climate-related impacts, risks and opportunities. The Committee's responsibilities include developing and reviewing climate-related policies and guidelines, monitoring performance against key indicators, and facilitating stakeholder participation, co‑operation and consultation. Matters relating to climate change are included in quarterly reports to the Committee, and as stand-alone items on the agenda where necessary. The Setco Chairperson provides a summary of the Committee's discussions to the Board, which addresses the most material issues raised by the Committee. The Setco is chaired by Buyelwa Sonjica and meets four times a year. [...] In recognition of the increasing expectations on companies in terms of their ESG performance and disclosure, the Board approved the establishment of a Safety, Health and Sustainable Development (SHSD) Committee in November 2022. This Committee was established to enhance and increase our focus on strategy, risk management, monitoring and oversight of all related safety, health and sustainable development matters. The SHSD Committee comprises the following members: Mr TP Goodlace; Ms BP Sonjica; Ms MJ Tsele; Ms ND Zikalala; and Mr A Jeawon. The Committee will assume relevant safety, health and environment-related responsibilities from the Setco and will commence with its remit in February 2023. [...] Any climate-related advocacy that we undertake or that is undertaken on our behalf through a third party, such as an industry association, should be in line with the letter and the spirit of our stated policy positions, and supportive of the goals of the UNFCCC Paris Agreement. We have implemented a model of governance over our advocacy based on transparency, high standards and clear accountability to ensure that such advocacy is conducted in line with our intentions. [...] In addition, through the Anglo American group, we publicly disclose a review of our industry associations. A list of Kumba's membership of industry associations is provided on page 29 where we briefly review the rationale for membership of each association and summarise the findings of a recent assessment of each association's alignment with Anglo American's eight public policy positions on climate change.

The Kumba Board, supported by the Audit Committee, has overall accountability for this report. It delegated the responsibility to oversee the reporting process to its Social, Ethics and Transformation Committee, which was assisted by a steering committee comprising executive managers and a dedicated reporting team. The Board collectively reviewed the content of this report and confirmed that it believes this 2022 Sustainability report addresses our material issues, and is a balanced and appropriate presentation of the sustainability performance of the group. The Kumba Board approved this report on 17 March 2023. [...] Looking ahead, Setco welcomes the strategic initiative by the Chairperson of Kumba, Terence Goodlace, to elevate and ensure more focused engagement on Kumba's sustainability issues, with the establishment of a new committee: the Safety, Health and Sustainable Development (SHSD) Committee. The committee will assume relevant responsibilities from the Setco and will commence with its remit in February 2023. [...] During 2022, the Board continued to delegate responsibility to the Setco for the oversight and reporting of Kumba's social, environmental and governance performance. The Setco held accountability for overseeing management of Kumba's most material sustainability issues. These included ensuring that Kumba remains a responsible corporate citizen, and that the Company attains its goals relating to the management of safety, health and the environment, as well as social, transformation, permitting, regulatory compliance, risks and opportunities and ethics across the Company. The Committee's responsibilities included developing sustainable development policies and guidelines to manage these focus areas, monitoring performance against key indicators, and facilitating stakeholder participation, co-operation and consultation on key issues. [...] In recognition of the increasing expectations on companies in terms of their ESG performance and disclosure, the Board approved the establishment of a Safety, Health and Sustainable Development (SHSD) Committee in November 2022. This Committee was established to enhance and increase our focus on strategy, risk management, monitoring and oversight of all related safety, health and sustainable development matters. The SHSD Committee comprises the following members: Mr TP Goodlace; Ms BP Sonjica; Ms MJ Tsele; M A Jeawon and Ms ND Zikalala. The Committee will assume responsibilities related to safety, health and environment which fell within the remit of the Setco. The first meeting of the Committee will be held in February 2023.

Kumba's Board has delegated responsibility for overseeing the Company's approach to managing its climate-related impacts, risks and opportunities to the SHSD Committee. In my role as chair of this Committee, I am pleased to present Kumba's third annual Climate change report. This report presents our assessment of the risks and opportunities that climate change presents for the business, outlines Kumba's climate-related commitments and decarbonisation roadmap, and reviews our performance in delivering on these commitments. [...] The Board has delegated responsibility for overseeing Kumba's climate-related impacts, risks and opportunities to the SHSD Committee. This Committee was established in November 2022 to enhance and increase our focus on strategy, risk management, monitoring and oversight of all relevant safety, health and sustainability-related matters, including climate change. The SHSD Committee assumed responsibilities that were previously assigned to the Social, Ethics and Transformation Committee (Setco) and commenced with its remit in February 2023. The Committee comprises the following members: Mr TP Goodlace (Chairperson), Ms NV Mokhesi, Ms MJ Tsele, Ms ND Zikalala and Mr A Jeawon. [...] The Committee's climate-related responsibilities include developing and reviewing climate-related policies and guidelines, monitoring performance against key climate indicators, and facilitating Board stakeholder engagement, co-operation and consultation on climate issues. Matters relating to climate change are included in quarterly reports to the Committee, and as standalone items on the agenda where necessary. The SHSD Committee Chairperson provides a summary of the Committee's discussions to the Board, which addresses the most material issues raised by the Committee. The Committee is chaired by Mr Terence Goodlace and meets four times a year. [...] Any climate-related advocacy that we undertake or that is undertaken on our behalf through a third party, such as an industry association, should be in line with the letter and the spirit of our stated policy positions, and supportive of the goals of the UNFCCC Paris Agreement. We have implemented a model of governance over our advocacy, based on transparency, high standards and clear accountability, to ensure that such advocacy is conducted in line with our intentions. [...] We are committed to being transparent about our memberships of industry associations and we publish all relevant details of the memberships we have on the Anglo American website. Each entry explains why we are a member of that industry association, any positions of responsibility that Anglo American employees play in the association, and Anglo American's annual financial contribution. This disclosure enables any interested individual to scrutinise details of our memberships and to raise any questions or concerns they may have. We also ensure adherence to all mandatory lobbying registers, both directly and as Anglo American, and we ensure that any consultants working on our behalf do so too.

Contributing our skills and knowledge to the development of responsible public policy

Effective public policy is essential for providing the right framework of drivers and incentives to encourage coordinated, efficient and equitable response measures by all stakeholders. Anglo American is committed to providing our expertise to assist governments and other stakeholders in developing such public policy and regulation. We will:

- Work with industry and regulatory authorities to contribute to the development and implementation of efficient, effective and equitable climate change policies and regulations.

- Advocate policy frameworks which support energy security and encourage research and investments in low carbon technology.

- Encourage co-ordination of a global carbon market and mechanisms which are supportive of low carbon technology and climate adaptation measures in developing nations.

## Monitoring and reporting:

Anglo American will continue to measure and report on our Group-wide direct, indirect and product-related emissions and will regularly update our Board, investors, host governments and other relevant stakeholders on our progress in reducing carbon emissions and energy consumption.

External assurance will be carried out on our Group reporting on our energy and carbon performance.

Contributing our skills and knowledge to the development of responsible public policy

Effective public policy is essential for providing the right framework of drivers and incentives to encourage coordinated, efficient and equitable response measures by all stakeholders. Anglo American is committed to providing our expertise to assist governments and other stakeholders in developing such public policy and regulation. We will:

- Work with industry and regulatory authorities to contribute to the development and implementation of efficient, effective and equitable climate change policies and regulations.

- Advocate policy frameworks which support energy security and encourage research and investments in low carbon technology.

- Encourage co-ordination of a global carbon market and mechanisms which are supportive of low carbon technology and climate adaptation measures in developing nations.

## Monitoring and reporting:

Anglo American will continue to measure and report on our Group-wide direct, indirect and product-related emissions and will regularly update our Board, investors, host governments and other relevant stakeholders on our progress in reducing carbon emissions and energy consumption.

External assurance will be carried out on our Group reporting on our energy and carbon performance.

#### Climate change governance

###### Board oversight

Kumba's Board has ultimate responsibility for promoting and safeguarding the long-term success of the business and for ensuring that Kumba acts in the best interest of its stakeholders.

The Board has delegated responsibility for oversight of Kumba's climate-related impacts, risks and opportunities to the SHSD Committee. This Committee was established in November 2022 to enhance and increase our focus on strategy, risk management, monitoring and oversight of all relevant safety, health and sustainability matters, including climate. The SHSD Committee assumed responsibilities that were previously assigned to the Social, Ethics and Transformation Committee (Setco) and commenced with its remit from February 2023. The Committee comprises the following members: Mr TP Goodlace (Chairperson), Ms BP Sonjica, Ms MJ Tsele, Ms ND Zikalala and Mr A Jeawon.

The Committee's climate-related responsibilities include developing and reviewing climate-related policies and guidelines, monitoring performance against key climate indicators, and facilitating stakeholder engagement, co-operation and consultation on climate issues. Matters relating to climate change are included in quarterly reports to the Committee, and as standalone items on the agenda where necessary. The SHSD Committee Chairperson provides a summary of the Committee's discussions to the Board, which addresses the most material issues raised by the Committee. The Committee is chaired by Mr Terence Goodlace and meets four times a year.

Each Board Committee reviews risks pertinent to the Committee, including those related to potential catastrophic events and material sustainability issues, and the Board has oversight of the overall risk management.

Each year, the Board, assisted by the Nominations and Governance Committee, conducts an assessment of the Board's performance and of the appropriateness and effectiveness of its Committees, procedures and processes. In addition, an external assessment is performed every three years that includes personal interviews with individual directors.

A full review of Kumba's governance approach is provided in our **[IR pages 26 to 32. Our sustainability governance performance is](http://www.angloamericankumba.com)** [reviewed in our SR pages 19 to 24.](http://www.angloamericankumba.com)

###### Management structure

Kumba's Chief Executive and the Exco are accountable for the day-to-day sustainability management and performance and all aspects of our overall strategy, including on climate change issues. The Company takes a collaborative approach to ensuring sustainability across the various functions and to delivering on sustainability performance objectives.

Climate change issues fall under the management responsibility of Ms Nandi Sibanyoni, Executive Head of Safety and Sustainable Development and an Exco member. She is supported by a team responsible for managing issues relating to sustainable development, safety, health and the environment. The Executive Head of Corporate Affairs, Dr Pranill Ramchander, is responsible for the public policy, social performance, and engagement aspects of climate change, while the Executive Head of Technical and Projects, Mr Glen McGavigan, is responsible for ensuring that climate change informs Kumba's capital investment projects. Mr Sam Martin, Executive Head of Strategy and Business Development, is tasked with ensuring that climate-related issues inform the Company's strategic discussions and decision-making.

###### Assurance

We have internal and external review and assurance programmes in place to ensure that priority catastrophic and sustainability-related risks (including climate-related risks) are identified and that adequate controls are in place. Operational risk audits are conducted on a rotational basis. Kolomela and Sishen conduct annual selfassessments against the requirements of the Social and SHE Ways and group technical standards. We develop and implement site-specific action plans to address areas requiring improvement, tracking the close-out of all actions. Regarding external assurance, Sishen and Kolomela operations assure their compliance with ISO 14001: 2015, the environmental management systems standard, and with ISO 45001, the occupational health and safety management systems standard. Key sustainability data – including Kumba's scope 1 and 2 GHG emissions, and Anglo American's scope 3 emissions – are externally assured as part of the assurance process. (Further details on our 2023 assurance processes are provided in our SR)." [...] "###### Advocacy activities

We are committed to being transparent about our political engagement. We prohibit political donations in any circumstances, either directly or through third parties. Our dealings with governments and parliaments focus primarily on the practical detail of obtaining and maintaining our licence to operate in line with our Code of Conduct, although we will also express our opinion on broader mining policy issues when called to do so. We believe we have a right and responsibility to speak up as an accountable member of society; at the same time, we are opposed to any system where corrupt practices can result in unfair advantage.

Any climate-related advocacy that we undertake or that is undertaken on our behalf through a third party, such as an industry association, should be in line with the letter and the spirit of our stated policy positions, and supportive of the goals of the UNFCCC Paris Agreement. We have implemented a model of governance over our advocacy, based on transparency, high standards and clear accountability, to ensure that such advocacy is conducted in line with our intentions.

We are committed to being transparent about our memberships of industry associations and we publish all relevant details of the memberships we have on the Anglo American website.[2] Each entry explains why we are a member of that industry association, any positions of responsibility that Anglo American employees play in the association, and Anglo American's annual financial contribution. This disclosure allows any interested individual to scrutinise details of our memberships and to raise any questions or concerns they might have. We also ensure adherence to all mandatory lobbying registers, both directly and as Anglo American, and we ensure that any consultants working on our behalf do so too. A list of Kumba's membership of industry associations is provided in an Appendix on page 33.

In addition to publishing these memberships, Anglo American commissions a biennial independent analysis of the alignment between Anglo American's standards and policies and those of the industry associations, of which we are a member. This analysis includes an assessment of each association's alignment with Anglo American's eight public policy positions on climate change relating to: climate science; the Paris Agreement (scope 1 and 2); scope 3; offsetting; carbon pricing / market mechanisms; transparency/disclosure; adaptation; and just transition.

This latest independent review, completed in February 2023, identified seven differences on policy positions relating to climate change that the consultants considered "material differences"; these differences were found in seven of the 131 memberships across the Anglo American group. This demonstrates that in the vast majority of cases, the industry associations of which Anglo American is a member are either aligned with our approach, or do not take a position on some or all of the policy positions we have detailed with respect to climate change. Of the seven organisations where "material differences" were identified, two are organisations that Kumba is a member of, namely Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) (see box on the right).

Following the identification of the seven material differences across all of Anglo American's memberships, the group took the following actions:

- Informed the relationship owner for each industry association of the highlighted material difference
- Assessed what action should be taken with the relationship owner

- Engaged with the relevant industry associations

Through this process, we concluded that none of the "material differences" highlighted should result in changes in the status of our membership with any of the organisations this year. Nevertheless, the substance of the analysis is a helpful input into our ongoing engagement with each association.

We believe we have the right and the responsibility to make our positions known to governments on any matters which affect our employees, shareholders or the communities associated with our operations. We subscribe to the Voluntary Principles on Security and Human Rights.

Contributing our skills and knowledge to the development of responsible public policy

Effective public policy is essential for providing the right framework of drivers and incentives to encourage coordinated, efficient and equitable response measures by all stakeholders. Anglo American is committed to providing our expertise to assist governments and other stakeholders in developing such public policy and regulation. We will:

- Work with industry and regulatory authorities to contribute to the development and implementation of efficient, effective and equitable climate change policies and regulations.

- Advocate policy frameworks which support energy security and encourage research and investments in low carbon technology.

- Encourage co-ordination of a global carbon market and mechanisms which are supportive of low carbon technology and climate adaptation measures in developing nations.

## Monitoring and reporting:

Anglo American will continue to measure and report on our Group-wide direct, indirect and product-related emissions and will regularly update our Board, investors, host governments and other relevant stakeholders on our progress in reducing carbon emissions and energy consumption.

External assurance will be carried out on our Group reporting on our energy and carbon performance.

Kumba's Board has delegated responsibility for overseeing the Company's approach to managing its climate-related impacts, risks and opportunities to the SHSD Committee. In my role as chair of this Committee, I am pleased to present Kumba's third annual Climate change report. This report presents our assessment of the risks and opportunities that climate change presents for the business, outlines Kumba's climate-related commitments and decarbonisation roadmap, and reviews our performance in delivering on these commitments. [...] The Board has delegated responsibility for overseeing Kumba's climate-related impacts, risks and opportunities to the SHSD Committee. This Committee was established in November 2022 to enhance and increase our focus on strategy, risk management, monitoring and oversight of all relevant safety, health and sustainability-related matters, including climate change. The SHSD Committee assumed responsibilities that were previously assigned to the Social, Ethics and Transformation Committee (Setco) and commenced with its remit in February 2023. The Committee comprises the following members: Mr TP Goodlace (Chairperson), Ms NV Mokhesi, Ms MJ Tsele, Ms ND Zikalala and Mr A Jeawon. The Committee's climate-related responsibilities include developing and reviewing climate-related policies and guidelines, monitoring performance against key climate indicators, and facilitating Board stakeholder engagement, co-operation and consultation on climate issues. Matters relating to climate change are included in quarterly reports to the Committee, and as standalone items on the agenda where necessary. The SHSD Committee Chairperson provides a summary of the Committee's discussions to the Board, which addresses the most material issues raised by the Committee. The Committee is chaired by Mr Terence Goodlace and meets four times a year. [...] Any climate-related advocacy that we undertake or that is undertaken on our behalf through a third party, such as an industry association, should be in line with the letter and the spirit of our stated policy positions, and supportive of the goals of the UNFCCC Paris Agreement. We have implemented a model of governance over our advocacy, based on transparency, high standards and clear accountability, to ensure that such advocacy is conducted in line with our intentions. We are committed to being transparent about our memberships of industry associations and we publish all relevant details of the memberships we have on the Anglo American website.[2] Each entry explains why we are a member of that industry association, any positions of responsibility that Anglo American employees play in the association, and Anglo American's annual financial contribution. This disclosure enables any interested individual to scrutinise details of our memberships and to raise any questions or concerns they may have. We also ensure adherence to all mandatory lobbying registers, both directly and as Anglo American, and we ensure that any consultants working on our behalf do so too. A list of Anglo American's membership of industry associations is provided here: **www.angloamerican.com/~/media/Files/A/Anglo-American-Group-v9/** **PLC/sustainability/our-strategy/industry-associations.pdf**

### Policy advocacy

To take a lead on issues that affect our business in a way that is collaborative and aimed at society's wider goals.

##### Milestones and targets

**2020:** **Extended into 2021**
Finalise advocacy action plans in support of key sustainability issues. Provide scholarship and training opportunities for policymakers in regions in which we operate.
**2025:** Regular involvement in priority policy and governance debates.
**2030:** External recognition of our leadership on policy advocacy.

Strong levels of engagement in policy debates.

#### Climate change governance

###### Board oversight

Kumba's Board has ultimate responsibility for promoting and safeguarding the long-term success of the business and for ensuring that Kumba acts in the best interest of its stakeholders.

The Board has delegated responsibility for oversight of Kumba's climate-related impacts, risks and opportunities to the SHSD Committee. This Committee was established in November 2022 to enhance and increase our focus on strategy, risk management, monitoring and oversight of all relevant safety, health and sustainability matters, including climate. The SHSD Committee assumed responsibilities that were previously assigned to the Social, Ethics and Transformation Committee (Setco) and commenced with its remit from February 2023. The Committee comprises the following members: Mr TP Goodlace (Chairperson), Ms BP Sonjica, Ms MJ Tsele, Ms ND Zikalala and Mr A Jeawon.

The Committee's climate-related responsibilities include developing and reviewing climate-related policies and guidelines, monitoring performance against key climate indicators, and facilitating stakeholder engagement, co-operation and consultation on climate issues. Matters relating to climate change are included in quarterly reports to the Committee, and as standalone items on the agenda where necessary. The SHSD Committee Chairperson provides a summary of the Committee's discussions to the Board, which addresses the most material issues raised by the Committee. The Committee is chaired by Mr Terence Goodlace and meets four times a year.

Each Board Committee reviews risks pertinent to the Committee, including those related to potential catastrophic events and material sustainability issues, and the Board has oversight of the overall risk management.

Each year, the Board, assisted by the Nominations and Governance Committee, conducts an assessment of the Board's performance and of the appropriateness and effectiveness of its Committees, procedures and processes. In addition, an external assessment is performed every three years that includes personal interviews with individual directors.

A full review of Kumba's governance approach is provided in our **[IR pages 26 to 32. Our sustainability governance performance is](http://www.angloamericankumba.com)** [reviewed in our SR pages 19 to 24.](http://www.angloamericankumba.com)

###### Management structure

Kumba's Chief Executive and the Exco are accountable for the day-to-day sustainability management and performance and all aspects of our overall strategy, including on climate change issues. The Company takes a collaborative approach to ensuring sustainability across the various functions and to delivering on sustainability performance objectives.

Climate change issues fall under the management responsibility of Ms Nandi Sibanyoni, Executive Head of Safety and Sustainable Development and an Exco member. She is supported by a team responsible for managing issues relating to sustainable development, safety, health and the environment. The Executive Head of Corporate Affairs, Dr Pranill Ramchander, is responsible for the public policy, social performance, and engagement aspects of climate change, while the Executive Head of Technical and Projects, Mr Glen McGavigan, is responsible for ensuring that climate change informs Kumba's capital investment projects. Mr Sam Martin, Executive Head of Strategy and Business Development, is tasked with ensuring that climate-related issues inform the Company's strategic discussions and decision-making.

###### Advocacy activities

We are committed to being transparent about our political engagement. We prohibit political donations in any circumstances, either directly or through third parties. Our dealings with governments and parliaments focus primarily on the practical detail of obtaining and maintaining our licence to operate in line with our Code of Conduct, although we will also express our opinion on broader mining policy issues when called to do so. We believe we have a right and responsibility to speak up as an accountable member of society; at the same time, we are opposed to any system where corrupt practices can result in unfair advantage.

Any climate-related advocacy that we undertake or that is undertaken on our behalf through a third party, such as an industry association, should be in line with the letter and the spirit of our stated policy positions, and supportive of the goals of the UNFCCC Paris Agreement. We have implemented a model of governance over our advocacy, based on transparency, high standards and clear accountability, to ensure that such advocacy is conducted in line with our intentions.

We are committed to being transparent about our memberships of industry associations and we publish all relevant details of the memberships we have on the Anglo American website.[2] Each entry explains why we are a member of that industry association, any positions of responsibility that Anglo American employees play in the association, and Anglo American's annual financial contribution. This disclosure allows any interested individual to scrutinise details of our memberships and to raise any questions or concerns they might have. We also ensure adherence to all mandatory lobbying registers, both directly and as Anglo American, and we ensure that any consultants working on our behalf do so too. A list of Kumba's membership of industry associations is provided in an Appendix on page 33.

In addition to publishing these memberships, Anglo American commissions a biennial independent analysis of the alignment between Anglo American's standards and policies and those of the industry associations, of which we are a member. This analysis includes an assessment of each association's alignment with Anglo American's eight public policy positions on climate change relating to: climate science; the Paris Agreement (scope 1 and 2); scope 3; offsetting; carbon pricing / market mechanisms; transparency/disclosure; adaptation; and just transition.

This latest independent review, completed in February 2023, identified seven differences on policy positions relating to climate change that the consultants considered "material differences"; these differences were found in seven of the 131 memberships across the Anglo American group. This demonstrates that in the vast majority of cases, the industry associations of which Anglo American is a member are either aligned with our approach, or do not take a position on some or all of the policy positions we have detailed with respect to climate change. Of the seven organisations where "material differences" were identified, two are organisations that Kumba is a member of, namely Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) (see box on the right).

Following the identification of the seven material differences across all of Anglo American's memberships, the group took the following actions:

- Informed the relationship owner for each industry association of the highlighted material difference
- Assessed what action should be taken with the relationship owner

- Engaged with the relevant industry associations

Through this process, we concluded that none of the "material differences" highlighted should result in changes in the status of our membership with any of the organisations this year. Nevertheless, the substance of the analysis is a helpful input into our ongoing engagement with each association.

The Board has delegated responsibility to the Social, Ethics and Transformation Committee (Setco) for the oversight and reporting of Kumba's social, environmental and governance performance. [...] The Setco holds accountability for overseeing how Kumba manages its most material sustainability issues. This includes overseeing that Kumba is a responsible corporate citizen, ensuring that the Company attains its goals relating to the management of safety, health and the environment, as well as social, transformation, permitting, regulatory compliance, risks and opportunities and ethics across the Company. The committee's responsibilities include developing sustainable development policies and guidelines to manage these focus areas, monitoring performance against key indicators, and facilitating stakeholder participation, cooperation and consultation on key issues. [...] The Setco is chaired by Buyelwa Sonjica and meets four times a year. The Chief Executive and executive heads of safety, health and environment, corporate affairs and human resources attend the Setco meetings as invitees, to provide updates on the above mentioned critical areas and any other related business of the committee.

The Board has delegated responsibility to the Social, Ethics and Transformation Committee (Setco) for the oversight and reporting of Kumba's social, environmental and governance performance. [...] The Setco holds accountability for overseeing how Kumba manages its most material sustainability issues. This includes overseeing that Kumba is a responsible corporate citizen, ensuring that the Company attains its goals relating to the management of safety, health and the environment, as well as social, transformation, permitting, regulatory compliance, risks and opportunities and ethics across the Company. The committee's responsibilities include developing sustainable development policies and guidelines to manage these focus areas, monitoring performance against key indicators, and facilitating stakeholder participation, cooperation and consultation on key issues. [...] The Setco is chaired by Buyelwa Sonjica and meets four times a year. The Chief Executive and executive heads of safety, health and environment, corporate affairs and human resources attend the Setco meetings as invitees, to provide updates on the above mentioned critical areas and any other related business of the committee.

On climate-related issues, the Board has delegated responsibility to the Social, Ethics and Transformation Committee (Setco). This year, the Board and Setco discussions on climate change included a review of Kumba's decarbonisation strategy and roadmap, managing the Company's first stand-alone climate change report, and providing oversight of progress in implementing Kumba's SMP, including specifically its progress on energy and water, and its roll-out of the large-scale solar photovoltaic (PV) farm at Sishen. [...] The Board has traditionally delegated responsibility on climate-related issues to the Setco, which is accountable for overseeing how Kumba manages its most material sustainability issues, including its climate-related impacts, risks and opportunities. The Committee's responsibilities include developing and reviewing climate-related policies and guidelines, monitoring performance against key indicators, and facilitating stakeholder participation, co‑operation and consultation. Matters relating to climate change are included in quarterly reports to the Committee, and as stand-alone items on the agenda where necessary. The Setco Chairperson provides a summary of the Committee's discussions to the Board, which addresses the most material issues raised by the Committee. The Setco is chaired by Buyelwa Sonjica and meets four times a year. [...] In recognition of the increasing expectations on companies in terms of their ESG performance and disclosure, the Board approved the establishment of a Safety, Health and Sustainable Development (SHSD) Committee in November 2022. This Committee was established to enhance and increase our focus on strategy, risk management, monitoring and oversight of all related safety, health and sustainable development matters. The SHSD Committee comprises the following members: Mr TP Goodlace; Ms BP Sonjica; Ms MJ Tsele; Ms ND Zikalala; and Mr A Jeawon. The Committee will assume relevant safety, health and environment-related responsibilities from the Setco and will commence with its remit in February 2023. [...] Any climate-related advocacy that we undertake or that is undertaken on our behalf through a third party, such as an industry association, should be in line with the letter and the spirit of our stated policy positions, and supportive of the goals of the UNFCCC Paris Agreement. We have implemented a model of governance over our advocacy based on transparency, high standards and clear accountability to ensure that such advocacy is conducted in line with our intentions. [...] In addition, through the Anglo American group, we publicly disclose a review of our industry associations. A list of Kumba's membership of industry associations is provided on page 29 where we briefly review the rationale for membership of each association and summarise the findings of a recent assessment of each association's alignment with Anglo American's eight public policy positions on climate change.

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?[…]Kumba is a member of associations, either directly in our own right and/or through the Anglo American group. For each association, we briefly review the rationale for membership, and we present the findings of a recent independent assessment of the association's alignment with Anglo American's eight public policy positions on climate change. A copy of this assessment and Anglo American's response to this is available at: https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group-v5/PLC/sustainability/our-strategy/anglo-american-industry-association-audit.pdf.