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Letter from our Chairman & CEO
Welcome to the Lynas Rare Earths ESG Report for the 2022 financial year
As an ethical and environmentally responsible supplier of rare earth materials, we know that our environmental, social and governance (ESG) performance matters to you our shareholders, as well as to our people, customers, communities and other stakeholders. That is why we are proud to present this review of our performance in the 2022 financial year and our objectives for the year ahead.
The safety of our people and our communities is always our first priority and in the first half of FY22 we faced new challenges from the COVID-19 pandemic at our operations in Malaysia and in the second half this extended to Western Australia with the omicron wave of the pandemic. COVID-19 health and hygiene protocols were enhanced and maintained at each operating site during the year to support the wellbeing of team members as well as their families and communities.
The FY22 year also saw an enhanced focus on climate change and the energy transition. Significantly for Lynas, we launched our Greenhouse Gas (GHG) Policy and committed to the Science Based Targets initiative in September 2021.
Like many industrial and chemical manufacturing operations, we recognise that the transition to cleaner energy sources will be challenging and cannot happen overnight. However, as a science based business, we are committed to playing our part.
This year we completed scoping work on our GHG emissions profile and commenced planning on our site based GHG reduction strategies, including plans to move from a diesel-fired power station at our remote Mt Weld site to a gas and then hybrid renewable solution as part of our planned Mt Weld capacity expansion.
In line with our commitment to consider GHG emissions as part of business strategy and decision making, this year the capital expenditure procedure was updated to ensure that the effect of a project on Greenhouse Gas emissions is considered before capital expenditure is approved.
Lynas also has an important role to play in the clean energy transition through the products we produce which are critical inputs to green supply chains including hybrid and electric vehicles and wind turbines. There was a significant uplift in demand for electric vehicles and wind energy during the year and Lynas is accelerating our growth plans to meet customer needs.
This 2022 ESG Report builds on the initiatives undertaken in FY21 to enhance our reporting and align with the World Economic Forum’s common metrics initiative. We were pleased that these enhancements were well received by our shareholders and other stakeholders, and we continue to enhance our ESG reporting, including via our Taskforce for Climate-related Financial Disclosures (TCFD) reporting and our annual Modern Slavery Statement.
We look forward to updating you on our continued progress in FY23.
Kathleen Conlon
Chairman
Amanda Lacaze
