2019

SUSTAINABILITY FULL REPORT

Letter from

Managing Director & CEO

Thank you for downloading the 2019 Orocobre Sustainability Report.

I am pleased to present this overview of the Company's safety, environmental, social and governance performance in FY19 for the Olaroz Lithium Facility, a year in which we reinforced our mission to become a sustainable, world class supplier of lithium chemicals, placing strategic focus on safety, quality and productivity.

Ensuring the safety of our workforce remains our number one priority, both in current operations and our Stage 2 expansion. We continue to strengthen our safety culture, systems and behaviours through safety leadership programs, integrated management software, enhanced operational risk analyses, and the formation of targeted Safety Committees.

2019 was a challenging year for the lithium industry with supply-demand changes impacting negatively on the market and lithium pricing. This has continued into 2020. These market conditions sharpened our focus on delivering high quality product. Initiatives were undertaken to enhance process stability, final product quality, and customer claims management.

Strategic marketing of our products remains a priority as we work collaboratively with JV partner Toyota Tsusho Corporation (TTC) to secure long-term contracts that will deliver enduring revenue streams.

Equal focus was placed on our operating performance by increasing productivity and decreasing operating costs, in particular targeting improvements in pond management, process stability, and recovery rates, and cost reduction initiatives across the business.

We have also sought to promote efficiencies across all areas of operations, especially regarding energy and water consumption and where possible, the recovery and reuse of these resources.

By maintaining our strategic position as one of the world's lowest cost lithium producers, we can grow our operations through this period of market softness and emerge even stronger when the market corrects over coming years.

Reinforcing the strength of our position and maximising future market share is the Olaroz Lithium Facility's Stage 2 Expansion. The project is fully funded and development activities have progressed steadily over the past 12 months.

Our communities remain central to our operational and development activities, with continuous engagement identifying employment and supply opportunities. The nature of our land use agreement with local communities coupled with complexities associated with traditional livelihoods resulted in our approach to landholder engagement being redefined. We continue to work with all local communities to ensure their quality of life is enhanced by our activities.

Finally, we have increased our focus on talent management, ensuring we have the right people in the right roles to drive the Company forward. This has been supported through a greater focus on development, improvement of internal/ external recruitment processes and a review of our performance management systems to better incentivise employees.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

3

Through commitment and collaboration within our corporate, operational and project teams we were able to make significant progress during FY19 towards becoming a leading and sustainable global supplier of high grade, high value lithium chemicals.

To better communicate our progress year on year we have re-engineered our sustainability reporting approach, providing more in-depth disclosures on the topics of interest to our stakeholders. This has resulted in a delayed disclosure for FY19 but establishes a solid process for clear, timely and comparable reporting in future.

As we progress with construction and commissioning of the Stage 2 Expansion, we will see significant and ongoing on-site activity and, in turn, variability in performance with regards to certain environmental and social metrics. We have defined preliminary targets for FY25 and FY30 for operational performance and will also set targets annually to reflect our combined operational and development activity.

We are currently facing the unprecedented challenge of Covid19 and its impacts on our markets and our operations. We realise this may impact on the delivery of some of our objectives. Our priority in 2020 will be on ensuring the health and safety of our people, our communities and contractors.

Thus far, international and domestic company-related travel has been restricted, bio-security plans have been developed in accordance with industry best practice and national regulations, an emergency committee has been established to coordinate operations, and Board and management are meeting more regularly to define impacts and develop contingencies.

We remain committed to ensuring the safety and sustainability of our operations through this period and will share our experiences in depth in our FY20 Sustainability Report.

I look forward to keeping you informed on the Company's growth throughout 2020.

Martín Pérez de Solay

Managing Director

4 OROCOBRE 2019 SUSTAINABILITY FULL REPORT

About the Report

2019 Sustainability Report

The 2019 Financial Year (FY19) Sustainability Report illustrates the sustainability performance of Orocobre Limited (Orocobre or the Company) as joint venture partner and manager of the Olaroz Lithium Facility.

The report has been prepared in accordance with the GRI Standards (Core) and documents Orocobre's progress against the 10 principles of the UN Global Compact as well as the Company's contributions to the UN Sustainable Development Goals (SDGs).

To indicate the alignment of Orocobre's sustainability initiatives and disclosures with the UN SDGs, SDG icons will be posted at the top of each Management Approach Disclosureto highlight the goals being covered.

* SDG 14 (Life Below Water) is not included as it has no relevance within the context of Orocobre's lithium operations.

As the development and performance of the Olaroz Lithium Facility remain the central focus of Orocobre investors and shareholders, the focus of sustainability reporting remains on SDJ and its activities.

The specific topics addressed in the report were defined based on a detailed materiality process which analysed public announcements and developments, internal documentation and insights shared with Orocobre by numerous stakeholder groups.

This year Orocobre has decided to move away from producing hardcopies of the Sustainability Report, opting to produce a more sustainable and accessible online report that meets a broader range of stakeholder needs.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

5

The 2019 Sustainability Report includes:

  • Overview:a summary of the Company's sustainability approach and performance in FY19.
  • Full Report:more detailed disclosures of its sustainability approach and performance in accordance with GRI Standard requirements. Rather than downloading the full report in its entirety, the Company encourages stakeholders to make use of theReport Builderto download and view only those sections of the report in which they have a specific interest.
  • Performance Data:which clearly presents sustainability data by category in accordance with recognised indicators.
  • Management Approach Disclosures:which outline current management approach to topics of ongoing relevance to the business and its stakeholders.
  • GRI Index:which supports stakeholders to navigate the report by providing the specific location of all the general, standard and topic-specific disclosures defined by the GRI Reporting Standards.

For any questions or feedback regarding this report, please contact Orocobre's Chief Sustainability Officer via sustainability@orocobre.com

Forward Looking Statements

Reports published by the Company contain "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include, but not be limited to, the results of the Olaroz Feasibility Study, the estimation and realisation of mineral resources at the Company's projects, the viability, recoverability and processing of such resources, costs and timing of development of the Olaroz Project, the forecasts relating to the lithium market including market price whether stated or implied, demand and other information and trends relating to any market tax, royalty and duty rates, timing and receipt of approvals for the Company's projects, consents and permits under applicable legislation, adequacy of financial resources, the meeting of banking covenants contained in project finance documentation, production and other milestones for the Olaroz Project, and the Olaroz Project's future financial and operating performance including production, rates of return, operating costs, capital costs and cash flows, potential operating synergies, other matters related to the development of Olaroz and Cauchari.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk that further funding may be required, but unavailable, for the ongoing development of the Company's projects; the possibility that required concessions may not be obtained, or may be obtained only on terms and conditions that are materially worse than anticipated; changes in government taxes, levies, regulations, policies or legislation; fluctuations or decreases in commodity prices; the possibility that required permits or approvals may not be obtained; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; fluctuations or decreases in commodity prices; general risks associated with the feasibility of the Company's projects; risks associated with construction and development/expansion of Olaroz; unexpected capital or operating cost increases; risks associated with weather patterns and impact on production rate and the uncertainty of meeting anticipated program milestones at the Company's projects.

The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things: the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of lithium, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

6 OROCOBRE 2019 SUSTAINABILITY FULL REPORT

Sales de Jujuy

Orocobre's key properties are held by its Argentine operating company Sales de Jujuy S.A. (SDJ, ORE 66.5%) and contain those properties associated with the Olaroz Lithium Facility (Olaroz).

SDJ is the manager of the Olaroz Lithium Facility Joint Venture. The shareholders are Sales de Jujuy Pte Ltd (SDJ PTE) and JEMSE, a mining investment company owned by the provincial government of Jujuy, Argentina. SDJ PTE is a Singaporean company that is the joint venture vehicle for Orocobre and Toyota Tsusho Corporation (TTC).

JointJointVentureVentureStructureStructure

Orocobre

15%*

Toyota Tsusho (TTC)

TTC is the exclusive sales

agent, with Orocobre and TTC

(Australia)

(Japan)

exercising shared decision

72.68%

27.32%

making over marketing,

product allocation and terms.

(SDJ S.A. 66.5%)

(SDJ S.A. 25%)

Sales de Jujuy Pte Ltd

JEMSE

(Singapore)

(Jujuy, Argentina)

91.5% (Common Share)

8.5% (Class B Share)

Project Company - Sales de Jujuy S.A. (SDJ)

(Jujuy, Argentina)

Debt

Guarantee

Lender

Guarantor

(Mizuho)

(JOGMEC)

Olaroz Lithium Facility

Olaroz Lithium Facility

The Olaroz Lithium Facility is located in Jujuy Province in northern Argentina, approximately 230 kilometres northwest of the provincial capital city of Jujuy. The operations are at an altitude of approximately 4,000 metres above sea level and produce lithium carbonate from the Salar de Olaroz brine resource.

Olaroz Lithium Facility currently produces purified and primary grades of lithium carbonate, which are sold into battery, technical and chemical markets.

The Olaroz Lithium Facility was the first large scale brine-based operation to be constructed, commissioned and operated in more than 20 years. Since operations commenced in 2015, over 40,000 tonnes of lithium carbonate have been produced. This milestone is testament to the efforts of the operational team at Olaroz whose development and operating skills provide an on-going competitive advantage for Orocobre as it progresses through the Stage 2 Expansion at Olaroz.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

7

2019 - Third full year of production

A low cost, high margin

Focus on quality,

Strong medium

Forecasted Demand

brine based lithium

productivity

to long-term

Growth 2019 - 2025

carbonate producer

and safety

fundamentals

of 17 to 20% CAGR

Realised price of

World class brine

FID approval to more

Stage 2 Expansion

>US$10,000/t Lithium

resource capable of

than double lithium

underway with

Carbonate Equivalent

supporting multiple

carbonate capacity at

new ponds and site

(LCE) and an average

phases of expansion

Olaroz with a lithium

infrastructure under

Gross Cash Margin of

hydroxide plant to be

construction

58% in FY19

built in Naraha, Japan

The Olaroz Lithium Facility produces a range of lithium carbonate products that are sold into global markets. Demand for lithium chemicals continues to increase as the world's consumers require high quality lithium batteries in applications that are increasingly dominated by state of the art, high performance electric vehicles (EV) and grid power storage applications at residential and commercial scale.

Consumer electronics continue to provide significant underlying demand, but it is the wholesale adoption of EV technology by global auto manufacturers and commercial grade Energy Storage Systems (ESS) that will drive growth in lithium demand over the next decade.

Orocobre is determined to help meet the world's growing demand for lithium through the sustainable development of its assets, including staged expansions of the Olaroz Lithium Facility, and its customer base, maintaining a mix of short and long-term contracts with diversity of both geography and market segments.

Olaroz sells primary and both micronised and non-micronised purified lithium carbonate to a diverse customer base of approximately 100 customers in Asia, Europe and North America. The main markets for primary grade product are the chemical manufacture, ceramic and glass markets, with purified grade typically sold to cathode manufacturers for use in the production of batteries.

This report provides an overview of Orocobre's key sustainability challenges and achievements over the past year and sets its areas for focussed improvement in coming years.

8 OROCOBRE 2019 SUSTAINABILITY FULL REPORT

Highlights

and Commitments

Highlights

Improved our position on

Dow Jones Sustainability Indices (DJSI)

28% improvement in Score

26% improvement in Ranking

39% above Average

Commissioned an

External Risk Management Review

formulating an enterprise-wide risk management framework

Implemented INTELEX

a cloud based environmental, health, safety and quality management system

Commenced a detailed

Human Rights

Risk Assessment

Established a

Sustainability Committee of the Board

responsible for governance of sustainability strategy, risk and performance management

Currently undertaking formal

Climate Risk Assessment

1.2% Reduction in

Operational Water Intensity

to 48.16 m3 per tonne of lithium produced

CO2

Doubled the number of

0.3% Reduction in

Women in Management

Operational

22.2% of SDJ Management Team

Emissions Intensity

to 3.14tCO2-e per tonne

of lithium produced.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

9

Commitments

ACHIEVEDONGOING

1

Health &

Safety

  • Established central safety committee and five subcommittees (training, operational discipline, audit, risk management and incidents investigations)
  • Implemented Intelex - a cloud based environmental, health, safety and quality management system (HSEQ) to enhance safety management/reporting
  • Maintain Total Recordable Injury Frequency Rate (TRIFR) <5.7 through Phase 2 Expansion
  • Intelex to completely replace the existing system for HSEQ management

2

Value Chain

3

Long-Term

Outlook

4

Environment

5

Communities

6

People &

Culture

+ Increased percentage of product

+ Delivery Performance Measure

within specification

+ Supplier Monitoring & Compliance

+ Implemented Supplier Code

of Conduct

+ Improved position on the Dow Jones

+ Further Improve position on the DJSI

Sustainability Indices (DJSI)

+ Leverage further data to better define

+ Enhanced financial reporting

the Salar de Olaroz Resource

+ Integrated energy and emissions

+ Improve visibility and accuracy

into operational Key Performance

of water consumption data

Indicators (KPIs)

across operations

+ Strengthened strategic partnerships

+ Establish a 'Theory of Change'

to advance sustainable development

to improve measurement and

in the region

evaluation of the community

investment strategy

+ Incorporated KPIs and objectives

+ Establish targeted development

into annual performance review

and succession plans

+ Completed cultural evaluation program

+ Enhance transparency through

improved policies, systems

and communications

10 OROCOBRE 2019 SUSTAINABILITY FULL REPORT

Strategy and Objectives

Strategy

Orocobre's Sustainability Strategy supports the Company's approach to financial growth whilst promoting the integrity and wellbeing of the environment and communities where the Company operates.

In accordance with the UN Sustainable Development GoalsOrocobre seeks to promote the global transition to a low-carbon future, reduce operational impacts on the environment, and improve the quality of life for local communities.

The Company's Sustainability Strategy is thus centred on the provision of high-quality, battery- grade lithium to the global market, operational excellence, and strategic community investment.

The Strategy is based on the understanding that the Company can only grow within the limits set by society and the environment. At a societal level, effective engagement with Company stakeholders is key to bringing about the changes that promote market growth, enable operational progress, and support social licence. At an environmental level, understanding the local and global environmental trends and limits over the short, medium and long term provides the Company with critical insights and opportunities to optimise and sustain its products, operations and communities now and in the future.

T N E M N O R

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EMISSIONS WASTE

RESOURCESNATURAL

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PEOPLE

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COMMUNITIES

SOCIETY

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NOMY

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

11

VISION: To be a sustainable, world class supplier of lithium chemicals

Responsible Product

Sustainable Operations

To be the supplier of choice

To maintain the highest

for quality lithium chemicals

levels of safety, efficiency

that promote the global

and resilience and the

transition to a low-carbon

lowest operating costs in

economy.

the industry.

Thriving Communities

To cultivate thriving,

resilient communities that are autonomous and self- sustaining.

ENVIRONMENT

E

N

V

I

R

N

M

E

O

N

E

T

A

M

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T

GLOB

A

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P

V

J

ITY

AL

U

Q

IR

A

RS

TO

S

E

V

IN

EMISSIONS WASTE

U

S

R

E

S

E

N

D

T

C

O

D

U

R

P

EMISSIONS

WASTE

NATURAL RESOURCES

WATER

ENERGY

PEOPLE

S

T

U

P

C

L

U

P

O

D

Y

C

H

R

A

P

SAFETY

I

PRODUCTIVITY

N

QUALITY

O

S

P

E

N

RATIO

E

M

P

L

O

YE

ES

N

A

T

UR

AL

R

ES

OU

RC

ES

BI

ODI

VE

RSI

RESOURCES

TY

RS

SUPP

LIE

NATURAL

WATER ENERGY PEOPLE

C

L

O

S

A

N

O

N

T

C

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A

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T Y

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S

UP

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S

P

ERATION

Y

M

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G

RE

EN

T

COM MUN TI IES

NM

IRO

S OCI ETY

V

EN

ES

VIC

STEM

SER

ECOSY

OPERATIONAL

SHARED

COMPETITIVE ADVANTAGE

VALUE

EXCELLENCE

Low Carbon

Safety

Health

High Quality

Quality

Education

Strategic Marketing

Productivity

Empowerment

Transparency

Production and Natural

Resources

UN Sustainable Development Goals

Orocobre is committed to advancing the UN Sustainable Development Goals (SDGs) through its products, the effective management of its operations, and strategic community investment in the regions in which it operates.

Operations

The Company sets clear environmental and social objectives and fosters a culture of collaboration and continuous improvement to drive sustainable development.

Community

The CommunityInvestment Strategy defines how Orocobre manages, monitors and reports performance against community-based sustainable development commitments.

Products

Orocobre services a wide range of customers in an extensive value chain; however, the primary focus of activity

is in the development of battery grade lithium chemicals to fuel the transition to a low-carbon economy.

12 OROCOBRE STRATEGY AND OBJECTIVES

The following provides an overview of the Company's commitments and contributions to the UN SDGs, based on its current footprint, activities, and initiatives delivered in collaboration with the government and local communities.

Empowering local communities through financial inclusion, microfinance and effective management of natural resource benefits.

Supporting local agricultural producers to overcome climate challenges and establish sustainable production systems.

Protecting the health, safety and wellbeing of the workforce.

Promoting the health and wellbeing of local communities.

Poviding training and

Providing access to quality

development for the

education to employees and

workforce.

local communities.

Ensuring gender diversity within the workforce and along the supply chain.

Empowering women in the communities to engage, develop and lead.

Reducing water consumption and managing water-related ecosystems.

Promoting greater community access to clean water and sanitation.

Exploring opportunities for renewable energy generation.

Supporting the provision of clean and affordable energy to communities.

Providing the lithium required to enable transition to a low carbon future.

Prioritizing local employment and engaging and developing local suppliers.

Stimulating entrepreneurship and economic growth in the local communities.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 13

Innovating and upgrading

to ensure sustainable,

Providing local communities

efficient and resilient

with internet access.

operations.

Providing income

Promoting non-project

strategies through local

related revenue generation

employment and local

opportunities.

procurement.

Respecting and

Promoting the resilience of

preserving cultural and

people and built

natural heritage across all

environment within local

aspects of the operation.

communities.

Ensure efficient use of

natural resources,

effective waste

management, sustainable

procurement practices,

and regular sustainability

reporting and non-

financial accountability.

Ensuring operational

Supporting the resilience

resilience and adaptive

and adaptive capacity of

capacity to climate-

local communities to

related events.

climate-related events.

Protecting the biodiversity

of the region in which it

operates and ensuring

responsible rehabilitation.

Ensuring transparency

Supporting the

and access to remedy

administrative capacity of

across operations.

local institutions.

Establishing solid relationships with governments, communities and developing multi- stakeholder partnerships in response to shared sustainable development challenges.

* Goal 14 (Life Below Water) is not included as it has no relevance within the context of the Company's activities.

14 OROCOBRE STRATEGY AND OBJECTIVES

Sustainability Framework

Orocobre's Sustainability Framework outlines the core structure of the Company's sustainability performance management system.

Governance

Continuous Improvement

Stakeholder Engagement

Risk Management

Environment

Community

People

Health & Safety

Supply Chain

Customer

Policies, Guidelines, Performance Standards

Targets and KPIs

Limits and Controls

Plans and Procedures

Assessments and Audits

Projects

Operations

Joint Ventures

Being a young company in the early stages of both its operational and sustainability journey, Orocobre acknowledges that attaining industry-leading sustainability credentials will take time, focus and incremental improvements across every area of the business.

The Sustainability Framework provides a roadmap of core elements that will be systematically strengthened over coming years.

Orocobre is taking a staged approach to sustainability management and reporting by establishing solid management fundamentals as a priority and then developing meaningful metrics and controls. This will enable the Company to ensure targeted, accurate and consistent monitoring of sustainability performance across the organisation.

Orocobre understands the importance of quantitative targets and Key Performance Indicators (KPIs) and is committed to setting these at the appropriate time.

As the Company is still refining and stabilising its production processes, expanding its operations, and implementing centralised sustainability reporting systems, targets and KPIs will remain qualitative rather than quantitative until an assured sustainability performance baseline is defined in 2020.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 15

5 Year Plan

To provide investors with a clear indication of the activities and timelines Orocobre envisages for complete implementation of its Sustainability Framework, as well as the external benchmarks that it will be using to objectively evaluate its progress, the Company has developed the following 5-year plan.

16 OROCOBRE STRATEGY AND OBJECTIVES

FY20 Objectives

In order to drive continued focus on improved sustainability performance and maintain momentum across all parts of the business, the Company defined the following objectives for FY20.

FRAMEWORK COMPONENT

FY20 OBJECTIVE

ENVIRONMENT

∙ Continue to reduce operational water and emissions intensity

∙ Assurance of environmental data

∙ Finalise Theory of Change to 2030 and strategic investment

COMMUNITY

and collaboration plan to support implementation

∙ Introduce systems and processes to improve social impact

measurement and reporting

PEOPLE

∙ Finalise Organisational Talent Mapping

∙ Enhance Diversity and Inclusion metrics and performance.

∙ Strengthen health and safety reporting and performance

HEALTH & SAFETY

∙ Promote effective use of lead and lag indicators.

∙ Prepare for certification shift from OHS18001 to ISO45001

SUPPLY CHAIN

∙ Improve local supplier performance

∙ Promote local supplier development

CUSTOMER

∙ Enhance communication and engagement between customers

and operational teams.

GOVERNANCE

∙ Strengthen management reporting and engagement with

Board Sustainability Committee

STAKEHOLDER ENGAGEMENT

∙ Enhance quality and visibility of engagement practices and

outcomes with diverse stakeholder groups.

RISK MANAGEMENT

∙ Finalize detailed stages of the Human Rights and Climate Risk

Assessments

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 17

FY19 Focus

Stakeholder Engagement

Orocobre maintains formal engagement channels with all key stakeholders, working collaboratively to address issues as they arise.

Topics raised through engagement channels are reviewed and categorised at the end of each Financial Year to identify issues of greatest significance across Orocobre's stakeholder groups.

For more information, refer to theStakeholder Relations Management Approach Disclosure.

Institutional

Stakeholders who

impact, or are impacted by, the organisation at a regional, national or international level

L

A

N

External

Stakeholders who

we respect and

consider but do not

E

actively engage with

T

on a regular basis

X

E

R

U

N

Long-Term Outlook

Communities

T

A

I

L

O

N

A

L

R

E

T

N

I

Internal

Stakeholders who

work within the

organisation to deliver

on our objectives

People

Stakeholders

& Culture

Value Chain

Environment

L

O

N

A

I

T

A

R

E

P

O

Operational

Stakeholders who

impact, or are impacted by, our operations and activities at a local level

18 FY19 FOCUS

Materiality

To determine the material topics and issues for disclosure in this FY19 Sustainability Report, Orocobre undertook a detailed materiality process.

Orocobre's materiality process is composed of 3 core stages:

In FY19, the issues identified through engagement with investors, customers, employees and communities were consolidated, prioritised and then gauged against issues of greatest relevance to Orocobre.

This process highlights a series of discrete issues that were specifically relevant to Orocobre's performance during the reporting year, thereby informing the content to be covered in the Sustainability Report.

In FY19 the material issues identified for disclosure in the Sustainability Report were:

The materiality process also enables Orocobre to reaffirm, update and reprioritise its Sustainability Focus Areas. These are topics of ongoing relevance to Orocobre's operations based on their significance to our stakeholders and our business.

Disclosures relating to Orocobre's management of specific Sustainability Focus Areas are available on the Company's website.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 19

Materiality Matrix

PRIORITY ISSUES BY STAKEHOLDER GROUP

INVESTORS

  • Market conditions and macro issues impacting lithium price
  • Production and operational performance
  • Financial reporting to facilitate appropriate valuations and peer comparisons
  • Product quality and impact on product pricing
  • Management of climate impacts on production
  • Securing long-term contracts

COMMUNITIES

  • Water consumption and community access to water
  • Monitoring, verification + communication of data
  • Impacts on fauna due to lack of water, pasture, and company movements in the grazing fields
  • Waste and effluents - management on site and in the communities
  • Long-termagreement requests from indirect impact communities.
  • Land use agreements between the community and landholders
  • Projects supporting culture and traditional livelihoods
  • Updates on Expansion: work planning, work execution, staff income, service contracting.

PEERS

  • Community Investment
  • Gender Diversity
  • Water + Waste
  • Biodiversity
  • Safety
  • Community Engagement
  • Governance and Risk
  • Employee Training and Development

CUSTOMERS

  • Product quality and price
  • Customer Satisfaction with product delivery
  • Product Responsibility / product stewardship
  • Ethics and Governance
  • Energy and emissions profile of product
  • Safety Performance of the operations
  • Human Rights

20 FY19 FOCUS

Health and Safety

Strengthening Safety Culture and Performance

Strengthening Safety Culture & Performance

Workforce health and safety is the number one priority for Orocobre, particularly as Stage 2 Expansion activities intensify.

Orocobre maintains a 'zero harm' approach when it comes to the safety of employees, project contractors and local communities. The Company is committed to reducing workplace risks and incidents and has implemented an enhanced safety management system (Intelex) which is expected to provide both operational efficiencies and improved safety performance.

Intelex - a cloud based environmental, health, safety and quality management system - provides a centralised repository of policies and procedures, enabling real-time reporting of safety observations/ incidents and tracking of all incidents through cause-based investigations.

The construction phase of the Stage 2 Expansion is resulting in increased site activity and therefore an increased risk of safety incidents. Orocobre remains focussed on managing and mitigating these risks as effectively as possible through augmented training, engagement and control systems for employees and contractors.

Job hazard assessments are completed by all workers before undertaking any task. Supervisors have been trained to evaluate and assess the job hazard assessments and to approve them with their teams and any contractors operating in their area.

New projects and initiatives on site pass through a 'HAZOP' and/or a 'What if?' process to evaluate potential risks and impacts. A 'Management of Change' process is also in place to ensure risks, impacts and opportunities are considered across all areas and departments as a result of any change initiative.

In FY19, Orocobre recorded only a slight increase in incident frequency rates despite the increased activity.

Employees

2017

2018

2019

TRIFR

3.2

2.9

3.3

LTIFR

3.2

2.9

3.3

Contractors

TRIFR

3.9

2

3.3

LTIFR

3.9

2

3.3

Total Workforce

TRIFR

3.4

2.5

3.3

LTIFR

3.4

2.5

3.3

SafetyafetyLeadershipLeadership

Orocobre continued with DuPont's Safety Leadership and Culture program during FY19, developing stronger ownership of safety responsibility across all levels of the business.

This program is targeted at Senior and Middle Management positions and seeks to promote effective safety communication and leadership across all areas of the business. As part of the program, the Company established a central safety committee and five subcommittees to provide better control and follow-up of safety issues.

Central Safety Committee (led by the Operational Management Team): meets once a month and reviews security indicators, action plans and accountability to ensure continuous improvement.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 21

Sub-Committees (each led by two managers and middle management representatives): meet between 2 to 4 times a month to progress their specific work plans as outlined below.

  • Behavioural Observations: develop teams of observers and ensure observation targets are adopted and achieved across Operations and Expansion.
  • Incident Management: deploy methodology and strengthen leadership accountability in the investigation and analysis of accidents and incidents.
  • Risk Management: create quantitative risk matrices and establish a baseline for process risk analysis.
  • Operational Discipline: ensure appropriate training and certification for specific jobs and verify compliance.
  • Training: ensure that leadership teams train their employees in work procedures.

It is anticipated that an additional subcommittee will be created in FY20 to specifically address contractor-related issues.

For more information about the Company's Health and Safety performance, please refer to the Management Approach Disclosureand Performance Data.

Case Study: Defensive Driving

Due to an observed increase in vehicular accidents within and around Sales de Jujuy's operations, the Company decided to deliver a defensive driving course for all employees required to manage a vehicle.

This Defensive Driving course introduced participants to defensive driving techniques that could be directly applied to enhance their safety on the roads. The course lasts 12 hours and consists of two components:

Theoretical: addressed reaction timing, night driving, difficult terrain and the capabilities of 4x4s and other vehicle types.

Practical: involved exercises on a designated driving course using standard Company vehicles, and simulations of extreme situations so that the driver can practice and apply defensive driving techniques.

The Defensive Driving course was delivered 3 times with a total of 102 people participating.

The Company also enlisted six employees in a Train-the-Trainer program so that they could continue to provide defensive driver training to Company employees and contractors.

The Train-the-Trainer course enhanced the theoretical knowledge and practical skills of participants through the application of different driving techniques. The course lasted 48 hours and included both theoretical and practical components. All six participants became CESVI approved instructors, a certification that lasts three years.

22 FY19 FOCUS HEALTH AND SAFETY

Value Chain

Product Quality

The Olaroz Lithium Facility currently produces purified and primary grades of lithium carbonate, which are sold into battery, technical and chemical markets.

Throughout FY19 SDJ focussed on improving operational process controls to enhance product quality. In addition, feedback was sourced from customers across the European Union (EU) and Asia so that plant operators could improve responsiveness to customer's specification requirements.

One specific quality improvement project developed in FY19 for implementation in FY20, will enhance the product packaging process to address customer feedback regarding the quality of delivered product.

By focusing on the sustained delivery of high-quality product, the Company aims to enhance customer relationships and secure long-term contracts.

Quality remains a key strategic focus area, along with productivity and safety. Planned FY20 improvement initiatives include:

  • Continue reducing product impurity levels to meet or exceed customer expectations
  • Reduce variability and improve market perception of product quality.
  • Implement further product packaging improvements

For more information about the Company's product quality please refer to its Quality Assurance Management Approach Disclosureand Performance Data.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 23

Supply Chain Control & Capability

To enhance product quality, workplace safety and operational productivity, Orocobre needs to maintain both visibility and control of its suppliers.

Quality of feedstock materials can impact the chemical production processes and in turn, the quality of the final product. The operational team is working to better control production inputs and processes so that quality and consistency of Orocobre's products can be further enhanced.

Contractor safety performance was a core focus during FY19. Contractor inductions and certifications were streamlined with evaluations now conducted at the SDJ office (in San Salvador de Jujuy) prior to arrival at the Olaroz Lithium Facility. This eliminated administrative tasks for onsite safety teams, ensuring all necessary safety training and certifications are approved prior to arrival. A Supplier Code of Conduct was introduced in FY19 outlining minimum standards required for all suppliers, including adherence to Orocobre's suite of social and environmental policies.

The focus for FY20 is:

  • Enhance controls to ensure supplier compliance with performance standards
  • Capacity building programs to support local suppliers' compliance with these standards
  • Review criteria for the selection of suppliers to ensure the Company upholds its commitments to quality, cost, social and environmental performance.

Breakdown of FY19 Suppliers and Procurement Spend by Region

For more information about the Company's Supply Chain approach please refer to its Supply Chain Management Approach Disclosureand its Performance Data.

24 FY19 FOCUS VALUE CHAIN

Long Term Outlook

Market Conditions

Market conditions are a material issue for our business. Quarterly updates on market conditions are provided in regular ASX quarterly reportspublished on the Orocobre website. Annual reviews are provided in the Company's Annual Reports, available on the Orocobre website.

In response to difficult market conditions in FY19, the Company focussed on improving recovery rates, optimising reagent use and improving logistic efficiency. Operational reviews identified opportunities to improve plant equipment availability, minimise downtime and reduce soda ash consumption.

In addition to these cost-related initiatives, Orocobre continued to pursue strategies to mitigate price pressures. The Company explored various partnership structures, contract lengths and pricing mechanisms.

The formation of a Joint Marketing Committee in FY19 composed of Orocobre and TTC representatives provided the framework for ongoing product and customer development collaboration.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 25

Environment

Operational Efficiency

Since commercial production commenced at the Olaroz Lithium Facility in 2016 the Company has remained focussed on minimising water and energy consumption.

As energy is a critical component of operational costs, opportunities were sought to reduce consumption both in the short and long term.

This includes heat capture technology as part of future energy contracts. Heat capture technology would involve harnessing the heat produced through electricity generation and it then being utilised in the production processes.

There was increased demand for information regarding the carbon and water intensity of operations from the Company's customers and the subsequent battery production chain. New regulation in the EU has lowered the acceptable emissions profile for vehicle manufacturers' products which in turn generated a stronger focus on securing low carbon technology suppliers.

As demonstrated in the following charts, total groundwater extraction in FY19 increased due to Stage 2 Expansion construction activities. This resulted in an increase in the Olaroz site intensity of water use, however this is expected to normalise at the completion of the Stage 2 Expansion.

Process energy consumption and energy intensity remained relatively stable and increased in line with production, however overall site fuel consumption and emissions increased due to higher diesel consumption which are also related to construction activities. These metrics would also be expected to normalise upon completion of Stage 2 construction.

Global concerns regarding water scarcity have led to an increase in requirements for companies to provide more transparent disclosure regarding current and future water use. Orocobre continues to clearly demonstrate it has one of the lowest emissions and water intensity profiles amongst global lithium producers.

It is important to note that Orocobre does not extract any freshwater for its operations. It extracts only highly brackish groundwater (unfit for human consumption or any agricultural use) which is treated onsite (via reverse osmosis) to provide process water. The Company currently withdraws only one-third of the water it is legally permitted to extract and does not operate in any areas identified as water stressed. Water management initiatives will remain a key focus for the organisation.

Includes immaterial amount of additional electricity consumed by Stage 2 Expansion construction personnel in camp and office facilities.

Heat intensity refers to process heat which is only used in operations. Electricity includes additional electricity consumed by Stage 2 Expansion construction activities and personnel on site and in office facilities.

26 FY19 FOCUS ENVIRONMENT

Emissions inventory methodology in accordance with GHG Protocol was introduced in FY18. FY17 data only included material emissions sources: electricity generation, process heat and transport.

Critical Infrastructure

FY19 has seen a significant increase in the number of personnel onsite primarily due to the increase in activities associated with the Stage 2 Expansion.

Orocobre has therefore been ensuring adequate site-based infrastructure is in place to manage the additional waste and effluents generated.

An additional sewage treatment plant (STP) was installed in FY18, and this has been made fully operational in FY19 with the installation of additional storage tanks and improved STP management.

General waste is normally disposed at the Jujuy waste disposal facility; however, its limitations required the implementation of additional local solutions which meet national environmental standards. This has enabled SDJ to maintain high standard waste disposal practices.

Orocobre will maintain a strong focus on waste and effluent management as expansion activities ramp up and the number of staff onsite continues to increase.

The highly brackish groundwater extracted at Olaroz is not suitable for human consumption or any agricultural use.

For more detailed information about Orocobre's Environmental Performance, please refer to the management approach disclosures for Biodiversity,Climate,Energy and Emissions,Water and Effluents, and Waste, and to the Environmental Performance Data.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 27

Communities

Supporting Changing Dynamics

Following three years of commercial production and over a decade of sustained community investment via the Company's Shared Value program, noticeable change is taking place within the local communities.

The ten communities are benefiting from greater levels of local employment and procurement, improved access to energy and communications infrastructure, enhanced educational and

recreational facilities and increased income-generating capacity. (See Community Investmentand Empowermentdisclosures, Case Studiesand the Communities Performance Datafor more

detailed information.)

That said, challenges still arise and engagement methods continue to evolve in response to community stakeholder needs and changing community dynamics.

In FY19, as the Company's expansion activities required community consultation on sensitive topics including land use, local employment and supply contracts, Orocobre was compelled to assume a mediation role between community representative bodies and other community stakeholders. This was a unique situation and one which prompted the drafting of the

Landholder Cooperation Policy.

Orocobre has a conclusive land easement agreement with the community of Olaroz Chico to undertake production and expansion activities at the Olaroz Lithium Facility. While Orocobre's land access is assured on that basis, community engagement activities in FY19 highlighted the need to acknowledge traditional landholder boundaries and agreements and support the community of Olaroz Chico in maintaining a strong relationship with its members and neighbours.

Increased focus on employment and contract opportunities has seen commercial interests dominate community negotiations and decision-making. Orocobre is mindful of ensuring the communities' needs and interests are being given priority over specific commercial interests and will continue to work collaboratively with communities to safeguard traditional customs and values.

TraditionalTraditionalLivelihoodsLivelihoods

Another core focus has been traditional livelihoods, with Orocobre being called on to respect, protect and promote these in different circumstances.

The easement agreement with Olaroz Chico provides Orocobre with access to land required for operations in exchange for a series of investment and engagement commitments and defined direct payment figures based on theoretical production values.(See Community Investmentdisclosure for more information).

While no one inhabits the land defined in the agreement, there were members of both Olaroz Chico and Huáncar communities that had traditionally used the land for livestock grazing.

Orocobre worked closely with these affected land users to reach an agreement and develop a suitable Livelihood Restoration Plan, ensuring their quality of life would not be negatively impacted.

A Landholder Cooperation Policywas prepared outlining the Company's commitment to respecting, protecting and promoting traditional livelihoods in these situations.

The Company continues to promote traditional livelihoods through its Shared Value program, including the Vicuña Shearing Projectunderway in Olaroz Chico, the Fibre Spinning Projectunderway with artisanal women in Huancar, and the Recycled Walls Projectto support local agricultural producers across the Puna.

Orocobre worked closely with affected land users to reach an agreement and develop a suitable Livelihood Restoration Plan, ensuring their quality of life would not be negatively impacted.

28 FY19 FOCUS COMMUNITIES

Community Data

Community Investment

$776,524

$884,995

$901,952

$900,000

Strategic Community

$9,665

$800,000

Investment

Land Rental Payments

$700,000

$356,292

$264,600

Grants and Donations

Investment

$553,500

$600,000

$500,000

Commercial Initiatives

Community

$400,000

Management Costs*

$300,000

*Management Costs include

$505,375

$519,038

salaries, administrative costs

$200,000

$344,988

and other overheads associated

with management of the

$100,000

Shared Value department.

$0

$6,549

$3,464

2017

2018

2019

Community Empowerment

Local Community Suppliers

Local Community Employees

20

50

200

18

45

180

16

40

160

USD

14

35

140

12

30

120

Millions

10

25

100

8

20

80

6

15

4

10

60

2

5

40

0

0

20

2016

2017

2018

2019

0

Procurement Spend

Number of Suppliers

60%

50%

40%

30%

20%

10%

0%

2016

2017

2018

2019

Local Community

Proportion of

Employees

Total Workforce

For more information about the Company's approach to Communities, please refer to the Community Engagement,Community Empowermentand Community Investmentdisclosures. and to the Community Performance Data.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 29

Shared Value Cases

Orocobre's Shared Value programs are developed collaboratively with local communities. The Company facilitates the process and empowers communities to achieve their objectives. Orocobre's Shared Value team work closely with local stakeholders and utilises cross-sectoral partnerships to develop programs that contribute directly to the achievement of the UN SDGs.

For more information, refer to the Case Studiessection of our online Report.

Leveraging the Circular

Providing technology,

Promoting sustainable

Working collaboratively

Economy to promote

advisory and market

agricultural practices

with local stakeholders

community nutrition,

access to empower

that protect biodiversity

to establish quality

agriculture and housing.

women and

and develop revenue

education pathways

CASE STUDY

maximise income.

streams.

in the region.

CASE STUDY

CASE STUDY

CASE STUDY

Pastos Chicos, Puesto Sey,

Coranzulí, Susques

Huáncar

Olaroz

Olaroz

UN SDGs: 2, 11, 12

UN SDGs: 1, 5, 8, 9

UN SDGs: 10, 15

UN SDGs: 4, 17

Government Payments

Royalty and Other Government Payments

$ USD

Provincial Royalty

1,694,533

Other Provincial and Municipal Taxes

196,567

Other National Taxes

2,551,283

Employment Taxes Paid by Sdj

2,861,811

Total Paid by SDJ

7,304,194

Provincial Withholding Tax to Local Business

1,757,491

National Withholding Tax on Salaries

1,221,370

National Withholding Tax to Local Business

9,586,231

Total Withhheld by SDJ

12,565,092

*Based on statutory rules SDJ is require to withhold applicable taxes to both employees and small businesses and submit such proceeds to the local authorities on a monthly basis.

Orocobre works closely with local stakeholders and utilises cross-sectoral partnerships to develop programs that contribute directly to the achievement of the UN SDGs.

30 FY19 FOCUS COMMUNITIES

People and Culture

Talent Management

During FY19, Orocobre's main employee focus was getting the right people in the right roles to enhance the productivity, quality and safety of operations.

Given the increase in operational and construction activity onsite, the total number of employees has grown substantially. Employee headcount has increased 51%, with new hires up from 20% in FY18 to 37% in FY19. The turnover rate dropped significantly, being just 7.3% in FY19 compared to 13.3% in FY18.

Internal and external recruitment processes have been enhanced to target highly skilled candidates for specialist tasks.

The Company anticipates an increase in turnover in FY20 as teams are consolidated and optimised, as well as a decrease in full-time employee headcount per tonne of lithium carbonate produced.

The Company also foresees an increase in employee development activities. Employee growth and development pathways are currently being reviewed to ensure employees are given ample opportunity to develop, advance and excel in their roles.

To support the development of the workforce, Orocobre is implementing a new online learning management system which will provide specific training to Company employees. This system is being used for all onsite inductions and for core training on Safety and Code of Conduct policies. The system will be expanded to include training for all employees in FY20.

Performance Management

Performance Management

To enhance productivity and performance of operational teams, Orocobre has introduced a new Performance Management System that places greater focus on individual performance and the achievement of specific objectives.

Previously, performance evaluation and short-term incentive appraisal was based predominantly on departmental and Company performance, with only 20% based on individual performance. By increasing the individual component to 50%, Orocobre seeks to generate greater individual responsibility for key objectives that contribute to overall performance.

Employees are now required to define and agree on a series of quantifiable objectives with their managers and undertake regular performance reviews throughout the year to track their progress.

To support this process, Orocobre continues to explore and implement appropriate software and systems that promote data visibility and allow real-time performance monitoring.

The implementation of systems such as Intelex facilitates tracking of performance by department and the inclusion of objectives, limits and quotas for performance in areas of shared responsibility such as environmental, safety and quality.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 31

Culture Evaluation Program

In FY18, Orocobre noted that while employee engagement scores were increasing, employee participation in the survey was low.

Rather than undertaking another survey in FY19, Orocobre decided to undertake a detailed evaluation of workplace culture to identify any issues contributing to the decline of participation rates.

The evaluation, facilitated through external consultants, comprised two components: a qualitative component which involved interviews with employees across all parts of the Company; and a quantitative component which required employees to respond to a series of questions that indicate the perceived cultural performance of the Company against an established benchmark.

The employee interviews identified the existing culture of the organisation and values (both positive and negative) that underpin that culture.

The cultural evaluation indicated shared values of loyalty, commitment, respect and teamwork all contribute positively to the Company's corporate culture.

Areas identified as requiring greater focus in FY20 included: the creation of a 'one team' mentality to unite all departments and activities; greater transparency regarding performance, decision making and opportunities; enhanced safety focus; and performance management.

People Data

Workforce breakdown

Senior Managers

Middle Managers

Operators

Total

Male

Female

Local

Provincial

National

International

<30

30 - 50

>50

8

6

2

6

2

3

5

2017

67

53

14

21

23

22

2

7

54

7

207

180

27

121

53

32

112

83

11

282

239

43

142

76

60

4

119

140

23

11

9

2

8

3

8

3

2018

92

78

14

5

40

44

3

8

77

7

206

176

30

133

48

25

88

108

10

309

263

46

138

88

77

6

96

193

20

18

14

4

11

7

11

7

2019

105

88

17

5

41

54

5

12

82

11

344

294

50

175

105

64

151

175

18

467

396

71

180

146

129

12

163

268

36

85%

15%

39%

31%

28%

3%

35%

57%

8%

Local 39%

<30 35%

Regional 31%

Male 85%

Local

Gender

Age

30 - 50 57%

National 28%

Female 15%

Employment

Diversity

Diversity

>50 8%

International 3%

32 FY19 FOCUS PEOPLE AND CULTURE

Turnover

45

14%

40

12%

35

30

10%

25

8%

20

6%

15

4%

10

5

2%

0

0%

2017

2018

2019

New Hires

Voluntary Turnover

Involuntary Termination Overall Turnover Rate

Voluntary Turnover Rate

Involuntary Termination Rate

Total

Male

Female

Local

Provincial

National

International

<30

30 - 50

>50

2017

42

40

2

27

6

8

1

24

16

2

2018

63

47

16

18

23

21

1

17

44

2

2019

175

147

28

51

55

62

7

66

97

12

New Hires by Region

New Hires by Gender

New Hires by Age

175

150

125

100

75

50

25

0

175

150

125

100

75

50

25

0

175

150

125

100

75

50

25

0

2017

2018

2019

2017

2018

2019

Local

Provincial

National

International

Male

Female

2017

2018

2019

<30

30-50

>50

For more information about the Company's approach to People, please refer to the Employee Engagement,Training and Development, and Diversity and Inclusiondisclosures, and to the People Performance Data.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 33

Governance and Risk

Governance

The Orocobre Board comprises eight Directors with significant public company management experience and strong backgrounds in exploration, project development, operations management, financial markets, accounting and finance. The Directors bring diversity of experience from different industry sectors and geographies.

In addition to these Directors, Orocobre also has an Executive Leadership Team that are responsible for all areas of the business.

Supporting the Board are a series of Committees, each with defined Charters and responsibilities.

Orocobre has created a Sustainability Committee of the Board, responsible for the governance of the Sustainability strategy, risk, performance management and reporting.

The Sustainability Committee has oversight on a number of areas including health and safety, environmental and social topics. Authority for these areas is delegated to the Company's Chief Sustainability Officer who is required to monitor sustainability risks and performance and provide regular updates and reports to both the Executive Leadership Team and the Sustainability Committee.

The Sustainability Committee provides guidance on the sustainability strategy of the organization, engages in the review of formal social and environmental risk assessments, and is responsible for the ultimate review and approval of the Company's annual sustainability report. The Sustainability Committee also oversees stakeholder concerns as presented in monthly reports and as part of the annual materiality process.

For more information, please refer to the Governance Management Approach Disclosureand Governance Performance Data

Additional documentation, including the code of conduct, charters for the operation of the Board and its committees, and other key policies supporting the Governance Framework, is fully disclosed on the Corporate Governance page of Orocobre's website.

34 GOVERNANCE AND RISK

Risk Management

Enterprise Risk Framework

Within its operations in Argentina, the company is aligning with Risk Management standard ISO 31000 as part of its Integrated Management System, to enable a comprehensive approach to risk across all areas of activity.

During FY19 the Company commissioned an external risk management review to formulate a comprehensive enterprise-wide risk management framework based on the principles ISO 31000. The structure facilitates continuous improvement of Orocobre's risk management capability, with roles and responsibilities of varying degrees of accountability at all levels of the organisation.

Orocobre considers risk an inherent component of all business activities that can be minimised with effective identification and management strategies. The framework was developed on the basis that everyone involved with the Company's activities (e.g. employees, contractors, partners etc.) should be risk-aware, identify and manage sources of risk, and communicate incidents. Where risk presents itself as an opportunity or is connected to an opportunity, the business follows a structured risk process to determine the risk versus reward relationship.

For more information on Orocobre's Risk Framework, please refer to the Risk Management Approach Disclosure.

General Risk Overview

General Risk Overview

The Company has in place risk management policies and systems to mitigate these risks wherever possible, including monitoring ongoing exploration results, monthly review of operational results and continued discussions with Orocobre's partners and the government of Argentina.

The Company continues to identify and monitor the environmental, social and governance risks and opportunities associated with its activities and implement action and initiatives accordingly.

The organization also acknowledges that many of these risks and opportunities are dependent on, or affected by, third part activity - be it government, suppliers, or other operators in the region.

As such, a central component to the Company's risk and opportunity management approach lies in regular and proactive engagement with third parties.

The following is a breakdown of Orocobre's risk register, categorised in terms of environmental, social and governance risks.

Some of these challenges require a long-term approach, while others can start to be addressed immediately. The Company acknowledges that this is only its third year of production and as such there is still much to learn, adapt and refine over the coming years.

Orocobre is firmly committed to effectively minimising and mitigating these risks (and any others that may arise) whilst capitalising on opportunities to deliver transformative societal change, be it in the support of global energy transitions, or local socio-economic development.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 35

Environmental Risks

OPERATIONS

STAKEHOLDERS

PRODUCT

OPPORTUNITY

Resource and Process Performance

The increase of Mineral Resources through drilling outside the currently definedMineral Resource.

The optimisation of plant performance and the associated production rate ramp-up.

The application of new technologies to improve overall system recovery.

Benefit associated with higher evaporation rates resulting from climate change and consequent potential positive impacts onproduction rates.

Energy, water & biodiversity

Development of strong localpartnerships to enhance community access to clean and affordable energy, cleanwater, and biodiversity.

Low carbon future

The continued growth and rate of growth in the demand for electric vehicles and the economic viability ofelectric vehicles relative to internal combustion engine vehicles.

RISK

Environmental impact on production

Risks associated with adverse weather patterns resulting from climate change and consequent potential negative impacts on production rates.

Damage, destruction or impact on plant, other physical assets or supply chain e.g. by on/offsite natural disaster, fire or explosion.

The Resource

The current size of the Mineral Resource at Olaroz and the current lack of Reserves (as defined under the JORC Code) or the inability to expand operations beyond current committed projects.

The brine grade and quality of the brine feedstock.

Non-ORE managed assets

Environmental or other accident/disaster at a non- Orocobre managed joint venture or investment.

Government licenses & permits

Argentina sovereign risk both at a national and provincial level and the political and financial risks typically associated with developing countries including reliance on government for the grant and renewal of mining concessions, environmental permits and water access rights.

Environmental impact on communities

Our activities might impact on the local environment in such a way as to affect the local communities.

Perceptions of our impact on environment

Stakeholder perceptions of our environmental impact may differ to our actual performance and generate reputational and social licence issues.

Environmental impact on distribution

Supply chain disruption due to natural disaster.

New low-carbon alternatives

The development and adoption of new battery technologies that may rely on inputs other than lithium.

36 GOVERNANCE AND RISK

Social Risks

OPPORTUNITY

OPERATIONS

STAKEHOLDERS

PRODUCT

Diversity

Community Quality of Life

Enhance Supplier

Performance

Benefits of a diverse and

Initiatives to enhance quality

inclusive workforce,

of life of local communities

Development of local supply

including innovative

through strategic investment

capability to promote local

approaches, collaborative

and collaboration with

economic development and

solutions, and positive,

government, NGOs and local

demonstrate social

productive work

stakeholders.

responsibility of product

environment.

supply chain.

Local Workforce

Local communities engagedand trained as local workforce to operate and manage the facility.

RISK

Health and Safety

Ineffective management of health and safety resulting in injury/loss of life as well as operation, financial, reputational or regulatory implications.

Industrial Action

Labour disputes

Talent Management

The retention of key employees and availability of a skilled local workforce.

The loss of one or more key management or the inability to replace staff creating gaps in knowledge, experience and relationships.

Community Safety

Increased activity, movement of people and transportation through local communities negatively impacts the health and safety of inhabitants.

Social Licence

Loss of support by local communities and activism challenging Orocobre's "social licence" due to actual or perceived concerns.

Local Government Relations

The ongoing working relationship between SDJ and the Province of Jujuy (JEMSE).

Product Quality

Production of in- specification product as required by customers for Stage 1 & Stage 2.

Product Quantity

Not achieving the design production rates for Stage 1 and Stage 2.

Industrial Action

Supply chain disruption due to commercial failure of operator, industrial action or other cause.

Joint Venture Relationship

The on-going mutually beneficial relationship with joint venture partner, marketing partner and significant shareholder Toyota Tsusho Corporation or the risk of misalignment of interests.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 37

Governance Risks

OPPORTUNITY

OPERATIONS

STAKEHOLDERS

PRODUCT

Multiple Phases of Expansion

Collaborative Projects

Competitive Advantage in

Long life asset with

Unique operation delivering

Growing Market

significant potential for

positive economic, social and

Strong environmental and

higher levels of production.

environmental impacts locally

social performance

and globally presents

differentiates the Company

opportunities for innovative

from its brine-based peers.

collaboration.

RISK

Corruption

Actual or alleged fraudulent or corrupt activities involving company assets.

Stage 2 Expansion

Not delivering on time and on budget the construction and commissioning of the Stage 2 Expansion of Olaroz.

Failing to achieve set performance targets for Stage 2 Olaroz expansion due to incorrect selection of technology, wrong planning assumptions, performance of contractors/subcontractors, incorrect operational assumptions, poor construction management etc.

Mismanagement

Inadequate, strategic and corporate planning leading management and the business to allocate time, effort and resources into the wrong priorities and initiatives.

Intellectual Property

The loss of intellectual property or commercially sensitive information from cyber security breaches, employees (or ex-employees), theft or other causes

Operating Costs

The expected operating costs including fluctuations in the energy and reagent cost and the comparison of these costs to the operating costs of competitors.

Financial Obligations

The meeting of all relevant banking covenants in respect to the operation of Olaroz.

Changes in Legislation

Changes in government taxes, levies, regulations, policies or legislation.

Local Economy

Sudden changes in the local financial system that may affect the operations.

The impact of high rates of inflation on local costs

The ongoing impact of devaluation of the ARS.

Meeting Investor

Expectations

Benefits from future acquisitions may not be realised or unanticipated costs may occur during and after integration.

There may not be an active, liquid trading market for Orocobre securities.

The Orocobre securities price can fluctuate significantly and investors may not be able to sell their shares for the value of which they were purchased.

Board of Orocobre has not yet decided if/when it will declare dividends.

Distribution of financial benefits

Distribution of financial benefits is ineffective or perceived to be ineffective, thus placing strain on the Company's social licence.

Product Price

Fluctuations or decreases in product prices and currency.

Market Competition

Increasing competition from competitors and the prices for the commodities sold by the Company.

Competitors may develop more effective and successful products impacting sales and profitability the loss of one or more large customers

Global Economic Downturns

Adverse conditions in the global economy and financial markets or downturns in customers end markets, including the impact of natural disasters, climate change, pandemics and other major adverse events.

Marketing Capability

Ineffective marketing of Olaroz production due to lack of experience or resources leading to suboptimal commercial outcomes.

Investor Confidence

The quality of operational and financial management information leading to inaccurate forecasting and loss of confidence in the Company.

38 GOVERNANCE AND RISK

Targeted Risk Assessments

Standalone risk assessments are conducted in accordance with existing policies for areas requiring specific methodological approaches such as Climate and Human Rights. These assessments are conducted independently but considered in conjunction with Orocobre's enterprise risk management framework.

Climate

Climate

Orocobre is currently undertaking its first formal Climate Risk Assessment.

The objective is to provide the Company greater understanding of climate-related risks and opportunities, so that they can be integrated into strategic, managerial and operational decision-making. The assessment of Orocobre's exposure to climate-related risks and opportunities is based on the Company's portfolio of assets, products and markets evaluated against a series of global climate scenarios.

The Climate Risk Assessment is a foundational step in understanding and quantifying the impacts of changing climate on its business strategy and financial performance.

The Assessment is being conducted in 2 stages:

  • Stage 1 involves desktop research and internal stakeholder engagement to evaluate the transitional and physical climate risks and opportunities on the Company's critical functions under different climate scenarios and across different timeframes.
    Critical functions include:
    • market demand and access to markets
    • built assets
    • supply and distribution routes
    • access to competitive and reliable inputs
    • people and workplace
    • regulatory compliance, license to operate and geopolitical stability
    • access to capital and insurance.
  • Stage 2 involves a more detailed review of the high priority risks and opportunities identified in Stage 1 and will provide clear strategies and frameworks for control and optimization action over the coming years.

A more detailed update will be provided in FY20 based on the outcomes and findings of that assessment.

For more detailed Climate Risk information, please refer to the Climate Management Approach Disclosure.

Human Rights

Human Rights

Orocobre has commenced a detailed Human Rights due diligence process, to be conducted in 2 Phases.

  1. Assessment of Contextual Issues: evaluating the overarching human rights issues of relevance based on Orocobre's industry, operations, location and supply chain.
  2. Identification of Salient Issues: evaluating the salient human rights issues based on more detailed evaluation of risks and impacts through on-site assessment and extensive stakeholder engagement.

Phase 1 of the due diligence process is now complete. An expert human rights consultancy facilitated a desktop analysis of internal and external source documentation as well as a series of internal stakeholder interviews with members of Orocobre's Executive and Operational Management teams. Human rights issues were analysed and prioritized based on the Severityof the potential impact on the humans affected, and Relevanceof the risk for the company.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 39

The table below indicates the contextual human rights issues that

emerged as having greatest potential impact on people and the greatest relevance for Orocobre given the nature of its operations and the jurisdictions in which it operates.

ISSUE

SIGNIFICANCE

High MediumLow

Labour Rights

Health and Safety

Gender based discrimination

Harassment

Freedom of association

Access to employment opportunities

Supply Chain

Decent working conditions in global supply chain

Decent working conditions in local supply chain

Environmental Impact

Access to water

Public health and environmental impact

Indigenous Peoples

Free, Prior and Informed Consent

Social and cultural identify, customs and traditions

Land

Right to livelihood and access to natural resources

Ownership and access to land use

Cumulative Impacts

Access to water

Right to an adequate standard of living

Access to Remedy

Access to remedy

Security

Life, Freedom and security; Opinion and expression

Bribery and Corruption

Decent working conditions; Adequate standard of living

The assessment also identified the following three areas as opportunities to promote access to human rights, acknowledging that Orocobre already demonstrates actions and initiatives in each of these areas.

  • Community Development: Including inclusive socio-economic development; access to basic services such as energy, education and health; participatory methodologies and inclusion of vulnerable populations; partnership with the government to avoid replacing the role of the state.
  • Local Economic Empowerment: Promote local employment, both direct and indirect, through business management, entrepreneurship training and capacity building programs. Adapt to the opportunities that arise based on local traditions and culture.
  • Natural Resource Governance: support efforts for the government and local communities to exert greater control over their natural resources and its revenues, be it through international initiatives like the EITI or local programs.

For more Human Rights information, please refer to the Human Rights Management Approach Disclosure.

40 GOVERNANCE AND RISK

Memberships and Affiliations

In addition to its involvement with industry bodies and associations, Orocobre seeks to align with recognised external initiatives that will support a robust and holistic approach to sustainability management and disclosure.

Orocobre operates in accordance with industry standards, and maintains certified management systems for Environment, Quality and Health & Safety.

Externalrnal InitInitiativesatives

Membershipsberships and

Certifiedified ManagemManagementnt

and Associations

Systems

Associati ns

s

Other Management

SystemsOther Management Systems

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 41

References and Links

Report Section

Source or Link

Sustainability Report Overview

Overview Document

Health and Safety

Quality Assurance

Energy and Emissions

Water and Effluents

Waste

Biodiversity

Climate

Community Engagement

Management Approach

Community Empowerment

Disclosures

Community Investment

Diversity and Inclusion

Employee Engagement

Training and Development

Supply Chain

Stakeholder Relations

Risk Management

Governance and Ethics

Human Rights

Tax and Financials

Health and Safety

Value Chain

Economic Performance

Performance Data

Environment

People

Communities

Governance

GRI Index

GRI Index

Artisan Development Program

Baccalaureate Program

Case Studies

Raising Recycled Walls Program

Vicuña Shearing Program

Community Infrastructure Program

42 MEMBERSHIP AND AFFILIATIONS

Case

Studies

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 43

Raising Recycled Walls

Strategic Alignment with Sustainable Development Goals (SDGs)

∙

∙

∙

44 CASE STUDIES

Executive Summary

Description of the Initiative

∙

∙

∙

∙

∙

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 45

Indicators

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

Partnerships

46 CASE STUDIES

Updates

  1. By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.
  2. By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women,
    indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non- farm employment.
  3. By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase
    productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.
  4. By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease
    the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations.
  5. By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 47

Artisan Development Huancar Fibre Spinning

Strategic Alignment with Sustainable Development Goals (SDGs)

∙

∙

48 CASE STUDIES

OROCOBRE LIMITED CASE STUDY - ARTISAN DEVELOPMENT HUANCAR FIBRE SPINNING

Executive Summary

Description of the Initiative

•

•

•

OROCOBRE LIMITED CASE STUDY - ARTISAN DEVELOPMENT HUANCAR FIBRE SPINNING

49

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

Indicators

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

Partnerships

Updates

50 CASE STUDIES

ii

iii

iv

v

vi

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 51

Community Infrastructure

Strategic Alignment with Sustainable Development Goals (SDGs)

∙

∙

∙

52 CASE STUDIES

OROCOBRE LIMITED CASE STUDY - COMMUNITY INFRASTRUCTURE

Executive Summary

Description of the Initiative

proposal

OROCOBRE LIMITED CASE STUDY - COMMUNITY INFRASTRUCTURE

53

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

Indicators

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

Partnerships

54 CASE STUDIES

OROCOBRE LIMITED CASE STUDY - COMMUNITY INFRASTRUCTURE

Updates

Olaroz

OROCOBRE LIMITED CASE STUDY - COMMUNITY INFRASTRUCTURE

55

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

Puesto Sey

San Juan De Quillaques

56 CASE STUDIES

OROCOBRE LIMITED CASE STUDY - COMMUNITY INFRASTRUCTURE

Jama

Pastos Chicos

Huancar

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 57

Catua

58 CASE STUDIES

OROCOBRE LIMITED CASE STUDY - COMMUNITY INFRASTRUCTURE

Regional Baccalaureate Program

Strategic Alignment with Sustainable Development Goals (SDGs)

∙

∙

∙

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 59

OROCOBRE LIMITED CASE STUDY - REGIONAL BACCALAUREATE PROGRAM

Executive Summary

Description of the Initiative

OROCOBRE LIMITED CASE STUDY - REGIONAL BACCALAUREATE PROGRAM

60 CASE STUDIES

Indicators

∙

∙

∙

∙

∙

∙

∙

∙

∙

Partnerships

Updates

OROCOBRE LIMITED CASE STUDY - REGIONAL BACCALAUREATE PROGRAM

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 61

62 CASE STUDIES

Sustainable Vicuña Shearing

Strategic Alignment with Sustainable Development Goals (SDGs)

∙

∙

∙

OROCOBRE 2019 SUSTAINABILITY FULL REPORT

63

OROCOBRE LIMITED CASE STUDY - SUSTAINABLE VICUÑA SHEARING

Executive Summary

Description of the Initiative

∙

∙

OROCOBRE LIMITED CASE STUDY - SUSTAINABLE VICUÑA SHEARING

64 CASE STUDIES

Indicators

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

∙

Partnerships

Updates

OROCOBRE LIMITED CASE STUDY - SUSTAINABLE VICUÑA SHEARING

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 65

66 CASE STUDIES

Performance

Data

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 67

Health and Safety

Key Performance Indicators (KPIs)1

General KPIs

Workforce Safety

2017

2018

2019

Total Recordable Injury Frequency Rate (TRIFR)1

3.4

2.5

3.3

Lost‐Time Injury Frequency Rate (LTIFR) 2

3.4

2.5

3.3

  1. TRIFR: number of lost time, medical treatment, restricted work and fatality incidents per million man hours worked.
  2. LTIFR: number of lost time injuries per million man hours worked

Note: LTIFR and TRIFR rates have been identifical due to Argentine authority automatically assigning 10 days leave in the event of medical treatment. In future, we will be reporting a Lost Time rate based on the medical assessment of each incident, to gain a more constructive insight into incident trends and severity.

Performance Data

Workplace Safety

Safety Performance

Workforce safety performance (per million man hours)

2017

2018

2019

Total Recordable Injury Frequency Rate (TRIFR)1

3.4

2.5

3.3

Lost‐Time Injury Frequency Rate (LTIFR) 2

3.4

2.5

3.3

Severity Rate3

67.1

177.2

35.9

Fatalities

0

0

0

Employee safety performance

Total Recordable Injury Frequency Rate (TRIFR)

3.2

2.9

3.3

Lost‐Time Injury Frequency Rate (LTIFR)

3.2

2.9

3.3

Severity Rate

86.4

284.2

14.3

Fatalities

0

0

0

Contractor safety performance

Total Recordable Injury Frequency Rate (TRIFR)

3.9

2

3.3

Lost‐Time Injury Frequency Rate (LTIFR)

3.9

2

3.3

Severity Rate

19.6

145.1

48.7

Fatalities

0

0

0

Workforce Safety Data per 200,000 man hours

2017

2018

2019

Recordable Incident Rate (RIR)

0.7

0.5

0.7

Lost‐Time Injury Rate (LTIR)

0.7

0.5

0.7

Severity Rate

13.4

35.4

7.2

Note: Restatement of employee and contractor data from previous reports (including FY19 Annual Report) following detailed review and categorisation of 2017‐2019 health and safety data. Injury rates are subject to change over time as we improve our health and safety management and reporting methodologies, and as case classifications change in accordance with applicable regulatory requirements.

  1. TRIFR: number of lost time, medical treatment, restricted work and fatality incidents per million man hours worked.
  2. LTIFR: total incidents resulting in lost time by million man hours worked
  3. Severity rate: number of lost or restricted work days per million man hours

Health and Wellbeing

Health Services

Occupational Ilnesses 1

2017

2018

2019

Occupational illnesses related to the Company's operations

0

0

0

Incidents of work‐related ill health

0

0

0

Health Assessments

New site‐based workforce that received pre‐work medical assessments 2

100%

100%

100%

Site‐based workforce that received an annual medical assessment 3

100%

100%

100%

  1. Health evaluations are conducted annually to identify potential illnesses. As yet, no occupational illnesses or incidents of work‐related ill health have been identified for the Olaroz Lithium Facility.
  2. All new contractors and employees are required to complete a medical assessment prior to accessing the Olaroz Lithium Facility
  3. All workers involved in site‐based activities are required by law to undergo a periodic (annual) medical assessment

68 PERFORMANCE DATA

Value Chain

Key Performance Indicators (KPIs)1

General KPIs1

2017

2018

2019

Lithium Carbonate Production (t)

11,862

12,470

12,605

Process Capability Index 2,3

NA

52%

80%

Claims Index (%) 3,4

NA

0.58%

0.87%

Community Suppliers as % of Total Supplier Base (by number)

4%

4%

5%

Community Suppliers as % of Total Supplier Base (by contract value)

15%

14%

13%

  1. Sales de Jujuy exclusively
  2. Process Capability Index: % of Analytes with Cpk > 1
  3. Data not available for 2017
  4. Claimed Product / Total Product Dispactched

Performance Data

Production

Production

2017

2018

2019

Lithium Carbonate Production (t)

11,862

12,470

12,605

Core Input Materials

2017

2018

2019

Soda Ash Consumption (t)

36,314

41,157

38,368

Lime Consumption (t)

30,063

45,176

51,005

Customers

Product Quality

2017

2018

2019

Process Capability Index

NA

52%

80%

Satisfaction

2017

2018

2019

Number of claims / 1000 dispatches 2

NA

23.4

39.3

Claims Index (%) 2,3

NA

0.58%

0.87%

  1. Process Capability Index: % of Analytes with Cpk > 1
  2. Data not available for 2017
  3. Claimed Product / Total Product Dispactched

Suppliers

Supplier Base

2017

2018

2019

Local Communities

28

29

43

Provincial

166

176

181

National

448

461

523

International

44

42

53

Percentage of Total Suppliers

2017

2018

2019

Local Communities

4%

4%

5%

Provincial

24%

25%

23%

National

65%

65%

65%

International

6%

6%

7%

Percentage of Total Procurement Spend

2017

2018

2019

Local Communities

15%

14%

13%

Provincial

22%

26%

27%

National

56%

54%

49%

International

7%

6%

11%

Supplier Performance

2017

2018

2019

Breach of Supplier Code of Conduct1

NA

NA

NA

‐ Suppliers sanctioned

NA

NA

NA

‐ Suppliers terminated

NA

NA

NA

New suppliers screened using environmental criteria 2

NA

NA

NA

New suppliers screened using social criteria 2

NA

NA

NA

  1. Supplier Code of Conducted was established in FY19. Methodology for tracking and measuring training and compliance not yet complete.
  2. Methodology for quantifying new suppliers screened not yet established. Contract‐specific screening criteria is used when inviting vendors to provide products or services. The criteria incorporate social, environmental and financial factors and consider vendor capability, reputation and performance in the marketplace including

reference validation.

69

Economic Performance

Key Performance Indicators (KPIs)1

General KPIs

2017

2018

2019

Revenues

$

120,064,797

$

148,881,700

$

124,683,826

Profit / Loss (before tax)

$

51,778,289

$

64,851,774

$

19,978,938

Tax and other payments to government 2

$

9,575,594

$

10,509,395

$

19,869,286

Economic Value Retained

$

40,139,470

$

60,929,446

‐$

24,114,270

  1. Sales de Jujuy operations exclusively. All values in USD.
  2. Argentina exclusively

Performance Data

Economic Value Generated and Distributed

Direct Economic Value Generated

2017

2018

2019

Sales Revenue

$

120,064,797

$

148,881,700

$

124,683,826

Other Revenue

$

‐

$

14,666

$

‐

Direct Economic Value Generated

$

120,064,797

$

148,896,366

$

124,683,826

Economic Value Distributed

2017

2018

2019

Operating Costs 1

‐$

42,859,176

‐$

44,429,927

‐$

48,495,985

Employee wages and benefits

‐$

14,460,451

‐$

15,314,652

‐$

15,143,414

Payments to providers of capital

‐$

12,601,361

‐$

17,350,015

‐$

64,287,564

Total payments to government

‐$

9,575,594

‐$

10,509,395

‐$

19,869,286

‐ Payments to government in Argentina

‐$

9,575,594

‐$

10,509,395

‐$

19,869,286

Community investments

‐$

428,745

‐$

362,931

‐$

1,001,847

Economic Value Distributed

‐$

79,925,327

‐$

87,966,920

‐$

148,798,096

Economic Value Retained

2017

2018

2019

Economic Value Retained

$

40,139,470

$

60,929,446 ‐$

24,114,270

1 Excludes impairment loss of US $ 3.4M as at June 30, 2019.

Tax

2017

2018

2019

Corporate income tax paid on a cash basis

‐

‐

‐

Corporate income tax accrued on profit / loss

‐$

18,655,345

‐$

21,942,696

‐$

17,726,050

Difference between tax accrued and tax due

‐$

18,655,345

‐$

21,942,696

‐$

17,726,050

Argentina

2017

2018

2019

Provincial Royalty

$

167,515

$

1,641,172

$

1,694,533

Other provincial and municipal taxes

$

1,474,137

$

132,995

$

196,567

Other national taxes

$

57,277

$

849,644

$

2,551,283

Employment taxes paid by SDJ

$

2,122,897

$

1,486,995

$

2,861,811

Total Paid by SDJ

$

3,821,826

$

4,110,806

$

7,304,194

Provincial withholding tax to local business

$

636,729

$

582,780

$

1,757,491

National Withholding tax on salaries

$

5,117,039

$

550,341

$

1,221,370

National withholding tax to local business

$

‐

$

5,265,468

$

9,586,231

Total Withhheld by SDJ1

$

5,753,768

$

6,398,589

$

12,565,092

1 Based on statutory rules SDJ is require to withhold applicable taxes to both employees and small businesses and submit such proceeds to the local authorities on a monthly basis

Financial Assistance from Government

2017

2018

2019

Tax relief and tax credits 1

‐$

6,450,107.00 ‐$

7,590,806.00 ‐$

4,856,304.00

1 Puna Refund.

70 PERFORMANCE DATA

Environmental Performance

Key Performance Indicators (KPIs)1

General KPIs

2017

2018

2019

Total greenhouse gas emissions (Scope 1 & 2) (tCO2‐e) 1

29,375

39,228

47,756

Operational emissions intensity (tCO2‐e/t) 2

2.48

3.15

3.14

Water extraction (m3)

485,300

607,609

691,324

Operational water intensity (m3/t) 3

40.98

48.73

48.16

Waste generated (t)

108.95

126.67

181.50

  1. Sales de Jujuy exclusively
  2. Intensity value based on total emissions by tonne of lithium produced. Only considers operational emissions to ensure comparability over time.
  3. Intensity value based on total water extraction by tonne of lithium produced. Only considers water extraction for operations to ensure comparability over time.

Performance Data

EHS Management & Compliance

Notices of violation (NOVs)/citations

2017

2018

2019

Environmental

0

0

0

Safety

0

0

0

Fines

Environmental fines paid

$0

$0

$0

Number of environmental fines

0

0

0

Safety fines paid

$0

$0

$0

Number of safety fines

0

0

0

Energy

Energy Consumption

2017

2018

2019

Electricity (GJ)

335,643

311,527

330,401

Heat (GJ)

209,249

298,880

296,295

Total Energy Consumption (GJ)

544,892

610,406

626,696

Electricity Intensity (GJ/t)

28.30

24.98

26.21

Heat Intensity (GJ/t)

17.64

23.97

23.51

Energy Intensity (GJ/t)

45.94

48.95

49.72

Fuel Consumption

2017

2018

2019

Natural Gas (GJ)1

544,892

610,407

626,696

Diesel (Stationary) (GJ)2

‐

14,084

21,152

‐ Operations

‐

14,084

12,897

‐ Expansion

‐

‐

8,255

Diesel (Transport) (GJ)2,3

‐

47,664

145,666

‐ Operations

‐

47,664

44,670

‐ Expansion

‐

‐

100,996

Petrol (Transport)

‐

222

0

Total Fuel Consumption (non‐renewable)

544,892

672,377

793,514

‐ Operations

‐

61,748

684,263

‐ Expansion

‐

‐

109,251

NOTE: Restatement of figures from 2018 report due to methodology changes

  1. Natural Gas: m3 to GJ conversion factor of 0.03451
  2. Diesel: L to GJ conversion factor of 0.0366
  3. Increase in Transport Diesel attributable to Stage 2 Expansion and increased construction activity on site.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 71

Emissions

Carbon Emissions

GHG Emissions Summary*

2017

2018

2019

Scope 1 greenhouse gas emissions (tCO2‐e)

29,375

39,206

47,719

‐ Operations

29,375

39,206

39,507

‐ Expansion

‐

‐

8,213

Scope 2 greenhouse gas emissions2 (tCO2‐e)

‐

22

37

‐ Operations

‐

22

27

‐ Expansion

‐

‐

10

Scope 3 greenhouse gas emissions3 (tCO2‐e)

‐

12,145

13,818

Scope 1+2 ‐ Total emissions intensity4 (tCO2‐e/t)

0.17

3.15

3.79

Scope 1+2 ‐ Operational emissions intensity5 (tCO2‐e/t)

2.48

3.15

3.14

Production (t)

11,862

12,470

12,605

Scope 1 Emissions (as % of total Scope 1 emissions)*

2017

2018

2019

Natural gas (for electricity generation)

62%

45%

39%

Natural gas (for processes)

38%

43%

35%

Stationary Diesel

‐

3%

3%

Transport Diesel

1%

10%

23%

Transport Petrol

‐

0%

0%

Petroleum based oils and greases

‐

0%

0%

Scope 2 Emissions (as % of total Scope 2 emissions)*

2017

2018

2019

Purchased electricity ‐ Jujuy office

‐

100%

73%

Purchased electricity ‐ Expansion office

‐

‐

27%

Scope 3 Greenhouse Gas (GHG) Details (tCO2‐e)*

2017

2018

2019

Waste generated in operations (emissions from disposal and treatment)

NA

196

283

Employee business travel 6

NA

132

261

Purchased goods and services7

NA

5,680

5,295

Fuel and energy‐related activities not included in Scope 2 8

NA

6,136

7,980

Capital goods9

NA

NA

NA

Upstream transportation and distribution

NA

NA

NA

Downstream transportation and distribution10

NA

NA

NA

Employee commuting

NA

NA

NA

GHG emissions from use of sold products

NA

NA

NA

End‐of‐life treatment of sold products

NA

NA

NA

Total

NA

12,145

13,818

  • Complete emissions inventory methodology in accordance with GHG Protocol was introduced in FY18. Emissions reporting in FY17 included only our material emissions sources: electricity generation, process heat, and transport.
    2 Reported using Scope 2 location‐based value in accordance with the Greenhouse Gas Protocol.
    3 Tracking of our Scope 3 emissions began in 2018
    4 Intensity value based on total emissions on site (Operations + Expansion) by tonne of lithium produced.
    5 Intensity value based on total emissions by tonne of lithium produced. Only considers operational emissions to ensure comparability over time. 6 Business Travel: Emissions calculated based on km travelled and short, medium and long‐haul flight emissions factors.
    7 Emissions associated with the production of soda ash, and with the provision of water at Jujuy offices.
    8 Extraction, production, and transportation of fuels and energy purchased or acquired 9 Construction materials and services
    10 Transportation and distribution of lithium carbonate from plant to ports (road/rail) and from ports to customers (ship) NA: Not available.
    Note: We will expand coverage of our Scope 3 emissions over �me to include those not currently available.

72 PERFORMANCE DATA

Water

Water Extraction by Source (m3)

2017

2018

2019

Groundwater1

485,300

607,609

691,324

‐ Operations

485,300

607,609

607,057

‐ Expansion

‐

‐

84,267

Water Intensity (m3/t)

2017

2018

2019

Total Water intensity (m3/t)2

40.91

48.73

54.85

Operational Water intensity (m3/t)3

40.91

48.73

48.16

Production (t)

11,862

12,470

12,605

Water Risk by Region (m3)

Olaroz ‐ Current4

Low

Medium

High

Water Stress

691,324

‐

‐

Overall Water Risk

681,324

‐

‐

Olaroz ‐ Future5

Water Stress

691,324

‐

‐

Overall Water Risk

681,324

‐

‐

Water Discharges

2017

2018

2019

Water bodies affected by water discharges and/or runoff 6

0

0

0

NOTE: Olaroz does not extract any fresh water for use in operations.

  1. The ground water extracted is highly saline and not suitable for human consumption or agricultural use.
  2. Intensity value based on total water extraction (Operations + Expansion) by tonne of lithium produced.
  3. Intensity value based on operational water extraction by tonne of lithium produced. Only considers water extraction for operations to ensure comparability over time.
  4. Based on the WRI Aqueduct Tool "Water Risk Atlas".

Low: 0‐2 (<20%) includes Low and Low‐Medium; Medium: 3 (20‐40%) includes Medium‐High; High: 4‐5 (>40%) includes High and Extremely High

5 Based on the WRI Aqueduct Tool "Water Risk Atlas" Pessimistic Future Outllook: Projected Change in Water Stress value to 2030.

Low: 0‐2 (<20%) includes Low and Low‐Medium; Medium: 3 (20‐40%) includes Medium‐High; High: 4‐5 (>40%) includes High and Extremely High

6 The Company does not have water run‐off or effluent discharges to water bodies.

Waste

Waste Generated by Type (t)

2017

2018

2019

Non‐Hazardous

94.35

107.81

156.83

Organic

54.27

57.07

74.41

Recyclable

15.77

18.06

28.79

Non‐recyclable

24.31

32.68

53.63

Hazardous

14.6

18.86

24.67

Total Waste Generated

108.95

126.67

181.5

Non‐Hazardous Waste by Disposal Method (t)

Landfill

78.58

89.75

128.34

Recycled

15.77

18.06

28.79

Hazardous Waste by Disposal Method (t)

Recovery

5.44

4.36

‐

Treatment and Disposal

11.82

14.53

24.67

Spills

Significant spills1

0

0

0

1 We have had minor spills which we have reported in our annual sustainability disclosures, but none that are significant.

Biodiversity

Biodiversity Impact

2017

2018

2019

Number of sites used for production, extraction or plantation activities

1

1

1

Total land area of production sites (ha)

18,000

18,000

18,000

Land area used or impacted by Company's activities and installations 1

1,529

1,529

1,529

Number of sites assessed and mapped for biodiversity (past 5 years)

1

1

1

Total land area of said sites (ha)

18,000

18,000

18,000

Operational sites that contain or are adjacent to globally or nationally important

0

0

0

biodiversity area2

  1. Figure refers to total anticipated land coverage for Company‐related assets as disclosed in the 2017 EIA Addenda (Stage 2 Expansion).
  2. Operational site is not located within a national or international protected area. The 18,000ha is located within the Olaroz‐Cauchari reserve.

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 73

People

Key Performance Indicators (KPIs)*

General KPIs

Headcount

2017

2018

2019

Total SDJ Headcount

282

309

467

ORE Corporate Headcount1

11

16

16

Diversity & Inclusion

2017

2018

2019

Women on the ORE Board

13%

13%

13%

Women in ORE executive roles2

0%

14.3%

9.1%

Women in SDJ senior management roles3

25%

18%

22%

Local Community Employment

39%

45%

39%

Engagement

2017

2018

2019

Response rate to the Employment Engagement Survey4

59%

53%

‐

Engagement Score on Employment Engagement Survey

99%

99%

‐

  • Sales de Jujuy exclusively, unless stated otherwise.
  1. These figures do not relate to SDJ data and are provided for indicative reference only.
  2. "Executive" refers to members of the ORE Leadership Team. These figures do not relate to SDJ data and are provided for indicative reference only.Percentage change from 2018 to 2019 due to increase in size of Executive Team.
  3. "Senior Management" is defined as SDJ General Manager and direct SDJ reports.
  4. An Engagement Survey was not conducted in 2019. This was to avoid survey fatigue given that a Cultural Review, involving extensive employee engagement, was undertaken in 201 NOTE: ORE Total Workforce breakdown (including ORE and BRX) can be found in ORE's Corporate Governance Statement

Performance Data

Workforce Data

Total Workforce

2017

2018

2019

Total SDJ Headcount

282

309

467

ORE Corporate

11

16

16

Workforce Breakdown

Activity

2017

2018

2019

Operations

282

293

425

Expansion

‐

16

42

Contract type

2017

2018

2019

Full Time Contract

282

309

467

‐ Permanent

278

289

422

‐ Fixed Term

4

20

45

Part Time / Casual

0

0

0

Employment category

2017

2018

2019

Executives1

2

Managers

8

11

16

Middle Management

67

92

105

Operators

207

206

344

Gender

2017

2018

2019

Men

239

263

396

Women

43

46

71

Region

2017

2018

2019

Local2

142

138

180

Regional3

76

88

146

National

60

77

129

International

4

6

12

Age

2017

2018

2019

<30

119

96

163

30‐50

140

193

268

>50

23

20

36

  1. Executive figures indicate SDJ employees involved in ORE Executive Meetings. For all workforce calculations they are considered SDJ Management.
  2. Local refers to employees from the 10 local communities
  3. Regional refers to employees from the Province of Jujuy (excluding 10 local communities)

74 PERFORMANCE DATA

Diversity & Inclusion

GENDER DIVERSITY

Women in Workforce (% by contract type)

2017

2018

2019

Full Time Contract

15.2%

14.9%

15.2%

‐ Permanent

14.4%

13.8%

13.5%

‐ Fixed Term

75.0%

30.0%

31.1%

Part Time / Casual

0

0

0

Total Female Employees

43

46

71

Women in Workforce (% by employment category)

2017

2018

2019

Executives1

0%

Managers

25.0%

18.2%

22.2%

Middle Management

20.9%

15.2%

16.2%

Operators

5.3%

14.6%

14.5%

CULTURAL DIVERSITY

Local Community Employees (% by contract type)

2017

2018

2019

Full Time Contract

39.4%

44.7%

38.5%

‐ Permanent

39.9%

47.8%

40.5%

‐ Fixed Term

0%

0%

20.0%

Part Time / Casual

0

0

0

Total Local Community Employees

111

138

180

Local Community Employees (% by employment category)

2017

2018

2019

Executives

0%

0%

0%

Managers

0%

0%

0%

Middle Management

31.3%

5.4%

4.8%

Operators

58.5%

64.6%

50.9%

PARENTAL LEAVE

Parental Leave

2017

2018

2019

Employees Eligible for Parental Leave

13

24

22

‐ Male

8

22

19

‐ Female

5

2

3

Employees that Took Parental Leave

13

24

22

‐ Male

8

22

19

‐ Female

5

2

3

Parental Leave Return Rate

2017

2018

2019

Returned from Parental Leave

13

24

22

‐ Male

8

22

19

‐ Female

5

2

3

Left following Parental Leave

0

0

0

‐ Male

0

0

0

‐ Female

0

0

0

Return Rate (6 months)

100%

100%

100%

Retention Rate (12 months)

100%

100%

100%

1 Executive figures indicate SDJ employees involved in ORE Executive Meetings. For all calculations they are considered SDJ Management, not Executive.

Compensation

Employee Compensation

2017

2018

2019

Total compensation paid to employees/payroll, including benefits

$14,460,451

$15,314,652

$15,143,414

Executive Employee Ratio

2017

2018

2019

Ratio of annual total compensation for highest paid individual in the country to the

5.04

4.78

5.98

median annual total compensation for all employees in the country

Ratio of percentage increase in annual total compensation for the organisation's

highest‐paid indiivudal to the median percentage increase in annual total

1.19

0.68

0.43

compensation for all employees

Gender Salary Ratio

2017

2018

2019

Senior Managers

1

0.91

0.86

Middle Managers

0.96

0.97

0.89

Operators

0.92

0.92

1.03

Ratio Total Employees

0.96

0.93

0.93

75

Turnover

Headcount

2017

2018

2019

Number of Employees

282

309

467

Turnover Rates

2017

2018

2019

Overall turnover rate1

10.3%

13.3%

7.3%

Voluntary turnover rate

7.4%

6.5%

5.1%

Involuntary termination rate

2.8%

6.8%

2.1%

1 Includes all types of turnover, including restructuring.

Turnover by Gender*

2017

2018

2019

Male

NA

9.1%

5.8%

Voluntary turnover rate

NA

5.5%

4.1%

Involuntary termination rate

NA

3.6%

1.7%

Female

NA

4.2%

1.5%

Voluntary turnover rate

NA

2.9%

1.1%

Involuntary termination rate

NA

1.3%

0.4%

Turnover by Region*

2017

2018

2019

Local1

NA

1.9%

1.7%

Regional2

NA

5.5%

1.9%

National

NA

5.5%

2.8%

International

NA

0.3%

0.9%

Turnover by Age*

2017

2018

2019

<30

NA

8.7%

1.3%

30‐50

NA

4.2%

5.4%

>50

NA

0.3%

0.6%

  • Breakdown of turnover data not available for FY17
  1. Local refers to employees from the 10 local communities
  2. Regional refers to employees from the Province of Jujuy (excluding 10 local communities)

New Hires

New Hires

2017

2018

2019

Total New Hires

42

63

175

Hire rate*

14.9%

20.4%

37.5%

New Hires by Gender

2017

2018

2019

Male hires

40

47

147

Male hire rate

14.2%

15.2%

31.5%

Female hires

2

16

28

Female hire rate

0.7%

5.2%

6.0%

New Hires by Region

2017

2018

2019

Local hires1

27

18

51

Local hire rate

9.6%

5.8%

10.9%

Regional hires2

6

23

55

Regional hire rate

2.1%

7.4%

11.8%

National hires

8

21

62

National hire rate

2.8%

6.8%

13.3%

International hires

1

1

7

International hire rate

0.4%

0.3%

1.5%

New Hires by Age

2017

2018

2019

Number of hires <30

24

17

66

<30 hire rate

8.5%

5.5%

14.1%

Number of hires 30‐50

16

44

97

30‐50 hire rate

5.7%

14.2%

20.8%

Number of hires >50

2

2

12

>50 hire rate

0.7%

0.6%

2.6%

  • Percentage of new hires in the total onboard head count; regular employees only.
    1 Local refers to employees from the 10 local communities
    2 Regional refers to employees from the Province of Jujuy (excluding 10 local communities)

76 PERFORMANCE DATA

Employee Engagement

Employee Engagement Survey

2017

2018

2019

Response rate to the Employment Engagement Survey

59%

53%

‐

Engagement Score on Employment Engagement Survey1

99%

99%

‐

Note: Engagement Survey was not conducted in 2019 to avoid survey fatigue: a Cultural Review, involving extensive employee engagement, was undertaken in 2019

1 The Engagement Index is a composite that averages scores measured from three aspects: "Engaged," "Enabled," and "Energized."

Freedom of Association and Collective Bargaining

2017

2018

2019

Percentage of workers covered by Collective Bargaining Agreeements

40%

36%

41%

Learning and Development

Training and Education1

2017

2018

2019

Hours of training for all employees

NA

NA

12,951

Average training hours per employee

NA

NA

27.73

Total investment in training (USD)

NA

NA

$

83,333

Average investment per employee (USD)

NA

NA

$

178

Total training courses

NA

NA

48

Training and Education (by gender)

Male employees total training hours

NA

NA

11,076

Average training hours per male employee

NA

NA

27.97

Female employees total training hours

NA

NA

1,875

Average training hours per female employee

NA

NA

26.41

Performance Reviews

2017

2018

2019

Percentage of employees who have received a formal performance evaluation

100%

100%

100%

Overall achievement of stated objectives 2

100%

100%

82%

Achievement of stated objectives (by employment category)

Executive3

NA

NA

Senior Management

100%

100%

Middle Management

100%

100%

Operators

100%

100%

Stated objectives achieved (by gender)

Male

100%

100%

Female

100%

100%

  1. New methodology for tracking and measuring employee training hours implemented in 2019. All data shown is for the period from January to June 2019 only.
  2. In FY19 there were changes to the performance objectives process, defining more targeted and challenging organizational and individual objectives.
  3. Executive positions are held at ORE level - not applicable for SDJ.

NA 67% 73% 75%

74%

72%

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 77

Communities

Key Performance Indicators (KPIs)1

General KPIs

2017

2018

2019

Community Investment

$

511,924

$

528,703

$

348,452

Easement Agreement 1

$

264,600

$

356,292

$

553,500

1 Agreement with direct impact community only: Olaroz Chico

Performance Data

Community Empowerment

Local Communities' Revenue

2017

2018

2019

Salaries and benefits paid to local community employees (USD) 1

NA

$

1,940,616

$

2,582,784

Value of supply contracts awarded to community suppliers (USD)

$

4,876,439

$

6,798,099

$

18,328,599

Easement Agreement 2

$

264,600

$

356,292

$

553,500

1

Salary breakdown for local community employees not available for FY17

2

Agreement with direct impact community only: Olaroz Chico

Local Communities' Share in Revenue

2017

2018

2019

Local communities represented in SDJ's FTE1 Headcount

142

138

180

Local community businesses with SDJ supply contracts

28

29

43

Local Communities' Rights

2017

2018

2019

Incidents of violations involving rights of communties or indigenous peoples

0

0

0

1

FTE = Full time employee

Community Investment

Community Investment (by Activity)

2017

2018

2019

Grants and Donations

$

6,549

$

‐

$

3,464

Strategic Community Investment

$

505,375

$

519,038

$

344,988

Commercial Initiatives

$

‐

$

9,665

$

‐

Total Investment

$

511,924

$

528,703

$

348,452

Community Investment (by Input)

2017

2018

2019

Cash grants and contributions

$

398,594

$

510,862

$

345,252

In‐kind donations

$

113,330

$

17,840

$

2,869

Valuation of employee volunteer time

‐

‐

$

331

Total Investment

$

511,924

$

528,702

$

348,452

Management Costs

$

524,354

$

564,417

$

375,781

Total Investment (incl. Management Costs)

$

1,036,278

$

1,093,119

$

724,233

Other Community Contributions

2017

2018

2019

Easement Agreement 1

$264,600

$356,292

$553,500

Total Cash Value of Community Contributions2

$776,524

$884,994

$901,952

1

Agreement with direct impact community only: Olaroz Chico

2

Total community investment (excl. management costs) including Olaroz Agreement

78 PERFORMANCE DATA

Governance

Key Performance Indicators (KPIs)1

General KPIs

2017

2018

2019

Independent Directors ‐ Full Board

88%

75%

63%

Attendance ‐ Full Board

96%

95%

97%

Average tenure

6

6

6

1 Sales de Jujuy operations exclusively

Performance Data

Corporate Governance

2017

2018

2019

Total Directors on Board

8

8

8

‐ Non‐Executive Directors

7

7

7

‐ Female Directors

1

1

1

Average tenure (years)

6

6

6

Separate Chairman of the Board and CEO

Yes

Yes

Yes

Number of countries/cultures represented

4

4

4

Independent Directors ‐ Full Board1

88%

75%

63%

‐ Audit and Risk Committee 2

100%

100%

67%

‐ Remuneration Committee 3

100%

100%

100%

‐ Related Party Committee 4

‐

100%

84%

‐ Sustainability Committee 5

‐

‐

‐

Number of Board meetings scheduled or held

14

11

10

Attendance ‐ Full Board6

96%

95%

97%

‐ Audit and Risk Committee 2

80%

56%

93%

‐ Remuneration Committee3

100%

100%

100%

‐ Related Party Committee 4

‐

100%

93%

‐ Sustainability Committee5

‐

‐

‐

Independent Performance Review

Yes

Yes

Yes

Board Review and Approval of Sustainability Report

Yes

Yes

Yes

Shareholder support of the advisory vote on executive compensation

89%

96%

95%

  1. Masaharu Katayama, Richard Seville and Martin Perez de Solay are all considered non‐Independent Directors. Masaharu Katayama joined the Board in 2018 following T
  2. Audit & Risk Committee has 3 members and meets 3 times a year
  3. Remuneration Committee has 3 members and meets once a year
  4. Created in 2018, the Related Party Committee has 7 members and meets 4 times a year
  5. Created in 2019, the Sustainability Committee has 3 members. Meeting schedule commences 2020.
  6. Meetings held in person or via teleconference

Ethics

Code of Conduct

Employees1

2017

2018

2019

Percentage of employees who have read and signed the Code of Conduct

100%

100%

100%

Percentage of employees trained on Code of Conduct

NA

NA

100%

New employees trained on Code of Conduct

NA

NA

88

Hours given on training of Code of Conduct

NA

NA

22

Employees trained on grievance channels

NA

NA

58

Hours of training on grievance channels

NA

NA

58

Employee training on Human Rights policies or procedures

NA

NA

NA

Third Parties2

2017

2018

2019

Suppliers trained on the Code of Conduct

NA

NA

NA

Business Partners trained on the Code of Conduct

NA

NA

NA

Breaches3

Concerns brought to the company's attention regarding Code of Conduct issues

NA

‐

‐

Allegations investigated for noncompliance with company policy

NA

1

2

Ratio of substantiated allegations to concerns/issues raised

NA

100%

100%

Employees dismissed due to substantiated corporate policy violations

NA

1

2

Employees who received disciplinary actions as a result of substantiated concern

NA

1

2

1 2017 and 2018 not available. New methodology for tracking and measuring employee training implemented in FY19. Data shown is for the period from January to June 2019 only.

2

Methodology for tracking Supplier and Business Partner training on Code of Conduct yet to be implemented.

79

3

Tracking of Code of Conduct breaches and disciplinary actions began in 2018.

GRI / UNGC

Index

80 GRI / UNGC INDEX

GRI Standards and UNGC Contents Index

Foundations

GRI

Disclosure

Location or comments

UNGC Additional location

Gri 100: General Disclosures

Organizational profile

102-1

Name of the organization

About the Report

102-2

Activities, brands, products, and services

About the Report

102-3

Location of headquarters

About the Report

102-4

Location of operations

About the Report

102-5

Ownership and legal form

About the Report

102-6

Markets served

About the Report

Supply Chain MAD

102-7

Scale of the organization

About the Report

102-8

Information on employees and other workers

FY19 Focus

Principle 6

Diversity and Inclusion MAD

102-9

Supply chain

FY19 Focus

Supply Chain MAD

102-10

Significant changes to the organization and its supply chain

FY19 Focus

102-11

Precautionary Principle or approach

Sustainable Development Policy

Principle 7

102-12

External initiatives

Memberships and Affiliations

Stakeholder Relations MAD

102-13

Membership of associations

Memberships and Affiliations

Strategy

102-14

Statement from senior decision-maker

Letter from the CEO

102-15

Key impacts, risks, and opportunities

Governance and Risk

Risk Management MAD

Ethics and Integrity

102-16

Values, principles, standards, and norms of behavior

FY19 Focus

Principle 10 Governance and Ethics MAD

102-17

Mechanisms for advice and concerns about ethics

Governance and Ethics MAD

Principle 10

Governance

102-18

Governance structure

Governance and Risk

Governance and Ethics MAD

Stakeholder Engagement

102-40

List of stakeholder groups

FY19 Focus

Stakeholder Relations MAD

102-41

Collective bargaining agreements

Diversity and Inclusion MAD

Principle 3

People Performance Data

102-42

Identifying and selecting stakeholders

FY19 Focus

Stakeholder Relations MAD

102-43

Approach to stakeholder engagement

FY19 Focus

Stakeholder Relations MAD

102-44

Key topics and concerns raised

FY19 Focus

Reporting Practice

102-45

Entities included in the consolidated financial statements

Anuual Report

102-46

Defining report content and topic Boundaries

About the Report

102-47

List of material topics

FY19 Focus

102-48

Restatements of information

About the Report

102-49

Changes in reporting

About the Report

102-50

Reporting period

About the Report

102-51

Date of most recent report

Orocobre web

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 81

102-52

Reporting cycle

About the Report

102-53

Contact point for questions regarding the report

About the Report

102-54

Claims of reporting in accordance with the GRI Standards

About the Report

102-55

GRI content index

GRI Index

MaterialMaterialTopicsTopics

GRI

Disclosure

Location or comments

UNGC Additional location

Gri 200: Economic disclosure

Economic Performance

103-1

Explanation and Boundaries

Tax and Financials MAD

103-2

Management Approach

Tax and Financials MAD

201-1

Direct economic value generated and distributed

Tax and Financials MAD

Economic Performance Data

201-2

Financial implications and other risks and opportunities

Governance and Risk

Principle 7

Risk Management MAD

due to climate change

201-4

Financial assistance received from government

Economic Performance Data

Market Presence

103-1

Explanation and Boundaries

Diversity and Inclusion MAD

103-2

Management Approach

Diversity and Inclusion MAD

202-1

Ratios of standard entry level wage by gender compared

People Performance Data

to local minimum wage

202-2

Proportion of senior management hired from the local

Diversity and Inclusion MAD

People Performance Data

community

Indirect Economic Impacts

103-1

Explanation and Boundaries

Community Investment MAD

103-2

Management Approach

Community Investment MAD

FY19 Focus

203-1

Infrastructure investments and services supported

Community Investment MAD

Case Studies

203-2

Significant indirect economic impacts

Community Investment MAD

Community Performance Data

Procurement Practices

103-1

Explanation and Boundaries

Supply Chain MAD

103-2

Management Approach

Supply Chain MAD

204-1

Proportion of spending on local suppliers

Supply Chain MAD

Community Performance Data

Gri 300: Environment Disclosure

Energy

103-1

Explanation and Boundaries

Energy and Emissions MAD

Environment Performance Data

103-2

Management Approach

Energy and Emissions MAD

Environment Performance Data

302-1

Energy consumption within the organization

Energy and Emissions MAD

Principle 8,9 Environment Performance Data

302-3

Energy intensity

Energy and Emissions MAD

Principle 8,9 Environment Performance Data

302-4

Reduction of energy consumption

Energy and Emissions MAD

Principle 8,9 Environment Performance Data

Water

103-1

Explanation and Boundaries

Water and effluents MAD

103-2

Management Approach

Water and effluents MAD

303-1

Water withdrawal by source

Water and effluents MAD

Principle 8

303-2

Water sources significantly affected by withdrawal of

Water and effluents MAD

Principle 9

water

303-3

Water recycled or reused

Water and effluents MAD

Principle 8 Environment Performace Data

82 GRI / UNGC INDEX

GRI

Disclosure

Location or comments

UNGC

Additional location

Biodiversity

103-1

Explanation and Boundaries

Biodiversity MAD

103-2

Management Approach

Biodiversity MAD

304-1

Operational sites in, or adjacent to, protected areas and

Biodiversity MAD

Principle 8 Environment Performance Data

areas of high biodiversity value

Emissions

103-1

Explanation and Boundaries

Energy and emissions MAD

103-2

Management Approach

Energy and emissions MAD

305-1 Direct (Scope 1) GHG emissions

Energy and emissions MAD

Principle 7 Environment Performance Data

305-4

GHG emissions intensity

Energy and emissions MAD

Principle 8

Environment Performance Data

305-5 Reduction of GHG emissions

Energy and emissions MAD

Principle 8

Effluents and Waste

103-1

Explanation and Boundaries

Water and effluentes MAD

Waste MAD

103-2

Management Approach

Water and effluentes MAD

Waste MAD

306-1 Water discharge by quality and destination

Water and effluentes MAD

Principle 8

FY19 Focus

306-2 Waste by type and disposal method

Waste MAD

Principle 8 Environment Performance Data

306-3

Significant spills

Non applicable. The Company does not discharge any water.

306-4 Transport of hazardous waste

Waste MAD

Principle 8

306-5 Water bodies affected by water discharges and/or runoff

Non applicable. The Company does not discharge any water.

Environmental Compliance

103-1

Explanation and Boundaries

Biodiversity MAD

Water and effluentes MAD

103-2

Management Approach

Biodiversity MAD

Water and effluentes MAD

307-1Non-compliance with environmental laws and regulations

No fines related to this indicator during FY19.

Environment Performance Data

Supplier Environmental Assessment

103-1

Explanation and Boundaries

Supply Chain MAD

103-2

Management Approach

Supply Chain MAD

308-1

New suppliers that were screened using environmental

Value Chain Performance Data

Principle 8

criteria

308-2

Negative environmental impacts in the supply chain and

Value Chain Performance Data

Principle 8

actions taken

Gri 400: Social

Employment

103-1

Explanation and Boundaries

Employee engagement MAD

Training & Development MAD

103-2

Management Approach

Employee engagement MAD

Training & Development MAD

401-1 New employee hires and employee turnover

People Performance Data

Principle 6

401-2

Benefits provided to full-time employees that are not

Not applicable. They company does not have part-time employees.

provided to temporary or part-time employees

401-3

Parental leave

Employee engagement MAD

Principle 6 People Performance Data

Occupational Health and Safety

103-1

Explanation and Boundaries

Health and Safety MAD

H&S Performance Data

103-2

Management Approach

Health and Safety MAD

FY19 Focus

403-1 Occupational health and safety management system

Health and Safety MAD

FY19 Focus

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 83

GRI

Disclosure

Location or comments

UNGC

Additional location

Occupational Health and Safety

403-2

Hazard identification, risk assessment, and incident

Health and Safety MAD

investigation

403-3

Occupational health services

Health and Safety MAD

403-4

Worker participation, consultation, and communication on

Health and Safety MAD

occupational health and safety

Training and Education

103-1

Explanation and Boundaries

Training & Development MAD

103-2

Management Approach

Training & Development MAD

404-1 Average hours of training per year per employee

People Performance Data

Principle 6

404-2

Programs for upgrading employee skills and transition

Training & Development MAD

People Performance Data

assistance programs

404-3

Percentage of employees receiving regular performance

People Performance Data

Principle 6

and career development reviews

Diversity and Equal Opportunity

103-1

Explanation and Boundaries

Diversity & Inclusion MAD

103-2

Management Approach

Diversity & Inclusion MAD

405-1 Diversity of governance bodies and employees

Diversity & Inclusion MAD

Principle 6

FY19 Focus

405-2 Ratio of basic salary and remuneration of women to men

People Performance Data

Principle 6

Rights of Indigenous Peoples

103-1

Explanation and Boundaries

Human Rights MAD

Community Investment MAD

103-2

Management Approach

Human Rights MAD

Community Investment MAD

411-1

Incidents of violations involving rights of indigenous

No incidents during 2019.

Principle 1 Community Performance Data

peoples

Human Rights Assessment

103-1

Explanation and Boundaries

Human Rights MAD

103-2

Management Approach

Human Rights MAD

412-1

Operations that have been subject to human rights

Human Rights MAD

Principle 1,4 Governance & Risk

reviews or impact assessments

412-2 Employee training on human rights policies or procedures

Governance Performance Data

Principle 1-6

Local Communities

103-1

Explanation and Boundaries

Community Investment MAD

Community Engagement MAD

103-2

Management Approach

Community Investment MAD

Community Engagement MAD

413-1

Operations with local community engagement, impact

Community Performance Data

Case Studies

assessments, and development programs

413-2

Operations with significant actual and potential negative

Community Engagement MAD

Principle 1

impacts on local communities

Supplier Social Assessment

103-1

Explanation and Boundaries

Supply Chain MAD

103-2

Management Approach

Supply Chain MAD

414-1 New suppliers that were screened using social criteria

Value Chain Performance Data

Principle 1-6

414-2

Negative social impacts in the supply chain and actions

Value Chain Performance Data

Principle 2,5

taken

84 GRI / UNGC INDEX

OROCOBRE 2019 SUSTAINABILITY FULL REPORT 85

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Orocobre Limited published this content on 11 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2020 02:49:03 UTC