ESG Statement

During the last 12 months, Concord Resources Limited (“Concord”) focused on achieving a meaningful roadmap for proactive Environmental, Social, Governance (“ESG”) initiatives, whilst delivering on the objectives set out in its 2021 statement. As many global economies emerged from strict Covid-19 measures and slowly opened up, Concord’s ESG efforts over the last 12 months looked to build upon its existing framework, whilst maintaining its forward-looking strategy in ESG matters. With a greener global economy in ever greater focus, Concord is well positioned to serve its customers and play an active role in supplying them with the metals and materials required to support the demand for energy transition products and renewable projects.

Scope 1,2 & 3 Operational Carbon Footprint

Concord calculated its operational carbon footprint during calendar year 2021.  The methodology chosen to measure carbon emissions at Concord follows the internationally recognised standard ISO 14064.  The operational carbon footprint covers Concord’s ‘operational emissions’ including Scope 1 (Direct emissions), Scope 2 (Indirect Emissions) and Scope 3 (Other Indirect Emissions) but excludes Concord’s Scope 3 Supply Chain emissions which have been calculated separately.  

Concord’s operational carbon footprint for the calendar year 2021 amounted to 152.5 tCO2e, with 45% arising from energy in the buildings where Concord’s offices are located.

It is also generally expected that, in addition to reporting gross emissions (in absolute terms), companies will also report on at least one intensity ratio (relative emissions).  Turnover or revenue is the typical metric used and using this metric, in 2021, Concord generated relative emissions of 28.9tCO2e/$b.

Carbon Chain – Scope 3 Supply Chain Emissions                   

Concord’s work with Carbon Chain has advanced positively and huge progress has been made in handling data. This progress means that Concord is now able to measure and disclose its Scope 3 Supply Chain emissions as well as that of Concord’s customers. This is an extremely encouraging development both for Concord’s internal ESG goals but also for the data Concord can provide to stakeholders. Extraction and refining of traded commodities represented the majority of Concord’s supply chain emissions, accounting for 96% of those emissions in 2021.  Transport of traded goods contributed 4%.  Sourcing choices thus represent the most impactful opportunity to reduce emissions. 

The majority of Concord’s Scope 3 supply chain emissions came from primary aluminium production, with an average intensity of 11.6 tCO2e/tonne aluminium traded. This relates both to Concord’s focus upon aluminium trading (it was Concord’s most traded commodity in 2021) and the high average emissions intensity of aluminium production, which is dominated by the smelting step. 

However, aluminium also presents the greatest opportunity for abatement - the lowest carbon aluminium traded in 2021 had a footprint of 2.98 tCO2e/tonne produced (​​Alma, Quebec), whilst the highest was 19.29 tCO2e/tonne produced (Kazakhstan Aluminium Smelter JSC). Copper cathode and alumina trades also represented major sources of emissions. Alumina refining produces relatively low emissions (0.746 tCO2e/tonne of alumina refined on average in 2021) but Concord traded a large volume (1,894,846 tonnes). 

To put this into context, in 2021, Concord’s total supply chain emissions was 12.2million tCO2e, for 3.39million tonnes of metal, represented by 4238 trades with an average carbon intensity of 3.60 tCO2e/tonne traded. Concord will continue to work closely with Carbon Chain and review the data that we are able to extract but these results represent a milestone in both supply chain emission Scope 3 reporting and ESG commitments.

Clear Sky Limited

In late 2021, Concord established a carbon trading company called Clear Sky Limited with one of its close partners merging industry knowledge and trading experience. Clear Sky will provide businesses with integrated carbon solutions, enabling them to reach their reduction targets.  Carbon offset markets will play a vital role in the progression towards carbon reduction for Concord’s customers. This will be particularly important for industries where emissions cannot be eliminated or reduced merely through investment and/or operation optimisations. Clear Sky will offer various products tailored to individual customers’ needs to achieve these reduction goals. These include advisory services, voluntary carbon offsets, renewable energy credits and risk management. The Clear Sky venture has great potential for Concord to enhance its ESG strategic position in the industry.

Companies have a responsibility for their employees, as well as a responsibility for their impact on the societies in which they operate – for instance, in terms of working conditions, labour rights and diversity.  Responsible metals sourcing is fundamental to Concord’s business strategy and this commitment is evidenced with its OECD Supply Chain Policy and its involvement with the UN Global Compact. In addition to the principles encompassed in the OECD Supply Chain Policy and the UN Global Compact, other guidelines which are upheld by Concord in this area include relevant Conflict Minerals regulations and Modern Slavery laws.

OECD Supply Chain Policy

Concord has long had a policy addressing responsible sourcing expectations, having having implemented its OECD Supply Chain Policy for a Responsible Global Supply Chain of Minerals from Conflict Affected and High-Risk Areas in June 2020.  This Policy helps Concord to identify and mitigate salient health, safety, social and environmental risks in its supply chain.   Responsible sourcing is an undisputed area of focus for Concord when supplying commodities to customers. 

Sustainability

Concord continues its membership in the Aluminium Stewardship Initiative (“ASI”).  Concord is proud to support the mission and work of ASI which creates a global sustainability benchmark in the aluminium industry and enables firms like Concord to continuously re-assess impact and add value to the environment in which we all operate.

Reporting/Disclosures

In 2021, Concord continued to enhance both its mandatory and non-mandatory reporting requirements which, in the UK, includes complying with the Streamlined Energy and Carbon Reporting (“SECR”) requirements.   Concord also seeks to adopt non-mandatory reporting where relevant and feasible. 

EcoVadis

During 2021, Concord also undertook the EcoVadis Corporate Responsibility Rating Assessment and was awarded the Silver Rating. This is a yearly assessment and Concord aims to improve its score card for 2022 and beyond. 

Concord has reviewed the different areas of its business where it seeks to expand and improve in its ESG initiatives during 2022.   We approach the next 12 months with a renewed commitment to engage with stakeholders and to raise our ESG ambitions even higher:

1. EcoVadis re-assessment:
   Seeking to improve the score by at least 5 marks. 
2. Carbon Chain:
   Expand the Carbon Chain offering to include creation of a dashboard for management and a quarterly Scope 3 supply chain emissions report to the Board. 
3. TCFD Reporting Alignment: (TCFD preparation/ Climate Scenario Analysis):
   Initiate the climate change scenario analysis that will inform future TCFD disclosures.
4. UN Sustainable Development Goals:
   Identify 2-3 UN Sustainable Development Goals against which Concord can align its business.
5. Customer and Supplier Due Diligence:
   Initiate review of Top 10 Customers and Suppliers – enhanced due diligence and policy assessment