Centerra Gold : 2021 ESG Report (7MB)

2021

Environmental,

Social and

Governance Report

Introduction Governance Environment Social Performance Data

Table of Contents

3	INTRODUCTION
	CEO Annual Message	3
	About Centerra Gold	4
	Operational and Asset Map	5
	About This Report	6
	2021 COVID-19 Response Statement	7
	Our Approach to Responsible Mining	8
	2021 ESG Highlights	9
	Mapping to the UN Sustainable Development Goals	10

11	GOVERNANCE
Our Approach	12
	Board Oversight of ESG Factors	12
	Skills Matrix	13
	Continuous Education	13
	Executive and Senior Leadership Commitment	14
	ESG Safeguards and Risk Management	15
	Business Conduct and Ethics	15
	Whistleblower Program	15
	Annual Transparency Reporting on Government Payments	16
	Performance	16

17	ENVIRONMENTAL STEWARDSHIP
Environmental Compliance	18
	Climate Change	19
	Energy Management	23
	Air Quality	24
	Water Stewardship and Management	25
	Waste Management	27
	Biodiversity	32

36	SOCIAL PERFORMANCE
Our Approach	37
	Security, Human Rights and Rights of Indigenous Peoples	37
	Labour Relations	42
	Community Relations	49
	Performance: Strategic Social Investment and Donations	52
	Performance: Local Procurement	53
	Workforce Health and Safety	56

60	PERFORMANCE DATA
Sustainability Accounting Standards Board (SASB) Index	61
	Task Force on Climate-related Financial Disclosures (TCFD) Index	63

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Information contained in this Report that are not statements of historical facts, and the documents incorporated by reference herein, may be "forward-looking information" for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties, assumptions and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. For a detailed discussion of such risks and other factors, see the Company's most recent Management's Discussion and Analysis (MD&A) and Annual Information Form, both of which are available on SEDAR at www.sedar.com. Although Centerra believes that the assumptions inherent in these forward-looking statements are reasonable, the reader should not place undue reliance on these statements. Centerra disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

PRESENTATION NOTE

This 2021 ESG Report is prepared in respect of the 2021 financial year. Readers are cautioned that, in May 2021, the government of the Kyrgyz Republic illegally seized control of the Kumtor Mine and therefore Centerra is no longer in control of the Kumtor Mine or the ESG policies, procedures and initiatives relating to the Kumtor Mine. Reference is made to the Company's public disclosure available on SEDAR at www.sedar.com.

2021 Environmental, Social and Governance Report  Centerra Gold

Introduction

Governance

Environment

Social

Performance Data

CEO Annual Message

At Centerra, being a responsible miner is at the core of everything we do.

Despite the challenges brought forth by the COVID-19 pandemic, ensuring the health and safety of our workforce continues to be our top priority. Putting people first has enabled our global crisis management team to remain focused on protecting our employees and contractors with effective precautions and diligent protocols. Since the start of the pandemic, we have continued to provide social and financial support to local communities while maintaining efficient operations.

As active members of the World Gold Council, we believe the Responsible Gold Mining Principles (RGMPs) demonstrate our commitment to responsible mining and help hold us accountable to key Environmental, Social and Governance (ESG) priorities in our sector. Over the past few years, our team's dedication toward implementing the RGMPs has allowed us to improve internal systems, proactively identify and manage risks, and increase our overall performance with various stakeholders and local communities. In 2021, we successfully completed Year 2 RGMP assurance and are on track to achieving conformance with the RGMPs before the end of 2022.

Our commitment to strengthen our ESG performance is reflected in several achievements in 2021, which I would like to highlight.

First, we made extraordinary progress on our global diversity, equity and inclusion (DE&I) strategic plan, along with progress toward regional DE&I strategies. Across the organization, 18% of leadership roles globally are held by women. Although this is already above the industry average, we would like to see this number increase in the coming years due to our focused efforts around diversity in the workplace. Additionally, Indigenous representation across our British Columbia operations increased by 2% to 18% and is 50% higher than the Canadian average across the mining industry.

Through our partnership with the Canadian Centre for Diversity and Inclusion (CCDI), our regional sites completed a range of employee DE&I surveys, focus groups, leadership assessments and interviews for our global "current state" inclusivity assessment project. This follows the work we did in 2020 on unconscious bias education, diversity and inclusion fundamentals training and our sponsorship of International Women in Mining (IWiM). Through our DE&I journey, our goal is to foster a workplace and culture where people can connect, belong, grow and bring their authentic selves to work each and every day.

Centerra recognizes the important role the mining sector has in driving climate action. As a company, our GHG emissions

intensity from our two operating sites decreased by 30% to

0.35 tonnes of CO2 equivalent per ounce (tCO2e), which is well below the industry average of 0.67 tCO2e. With the exclusion of the Kumtor operation from our portfolio, the Company's overall GHG emissions are now markedly lower, having decreased by 74% year-on-year.

Over the course of 2021, we continued to develop our Task Force on Climate-related Financial Disclosures (TCFD) with the objective of evaluating the Company's resilience to climate change and identifying and mitigating climate-related risks that could negatively impact our operations. Through our work, we will determine practical solutions to decarbonize our operations, improve energy efficiency and ultimately reduce our overall environmental footprint.

Centerra's overall reportable injury performance trend remains on a path of continuous improvement as we strive toward our goal of Zero Harm. In 2021, we met our number one safety objective of zero fatalities. We also realized a reduction in the total number of reportable injuries, with 27 in 2021 compared to 37 in 2020; although due to the fewer hours worked in 2021, this translated into a slightly higher Total Reportable Injury Frequency Rate (TRIFR) of 0.69 compared to 0.66 in 2020. As always, we will continue to prioritize and focus our efforts on improving our safety performance and culture as we progress on our journey towards Zero Harm.

I want to acknowledge our global team's resilience and dedication toward progressing our ESG strategy. Together, we will continue to improve our sustainability performance; I look forward to the meaningful initiatives and accomplishments in the coming year.

(Signed)

Scott Perry

President & Chief Executive Officer

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Introduction

Governance

Environment

Social

Performance Data

About Centerra Gold

Centerra Gold Inc. ("Centerra" or the "Company") is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties worldwide. Centerra operates two mines, the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. In 2021, Centerra produced 308,141,059 ounces of gold and 73.8 million pounds of copper.

We believe that how we conduct business and how all employees act in fulfilling their job responsibilities are fundamental to achieving our vision to build a team-based culture of excellence that responsibly delivers sustainable value and growth. While Centerra's ultimate objective is to deliver value to our shareholders, integrity and ethics will be the foundation for everything we do. In endeavouring to achieve our vision we will follow our core values of:

The Company also has two properties in the exploration stage, the Kemess Underground Gold Property in British Colombia, Canada, and the Goldfield District Project in Nevada, United States of America (USA). The Company owns exploration properties in Canada, the USA and Türkiye and has options to acquire exploration joint venture properties in Canada, Finland, Türkiye and the USA. The Company owns various assets within its Molybdenum Business Unit, particularly the Langeloth Metallurgical Facility in Pennsylvania, USA, and two primary molybdenum mines currently on care and maintenance, Thompson Creek Mine in Idaho, USA, and the Endako Mine (75% ownership) in British Columbia, Canada.

At Centerra, we are focused on quality assets defined by low cost, long life and sustainable robust margins and returns. We recognize that environmental stewardship and social performance are not only the right things to do but that are key to achieving this strategy. Being a responsible miner is one of our key values. For Centerra, this means putting our people first, creating and sharing economic value in the countries and communities where we operate, and protecting our surrounding natural environment.

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4	2021 Environmental, Social and Governance Report  Centerra Gold

		Introduction	Governance	Environment	Social	Performance Data

Operational and Asset Map

CANADA

						OPERATION			MOLYBDENUM ASSET
				3	MOUNT MILLIGAN MINE	1		ENDAKO MINE: Care
						Au, Cu			and Maintenance
									75% Mo
				4	DEVELOPMENT
				KEMESS: Underground
						and East Projects
						Au, Cu
		4
	3
1						USA			TÜRKIYE
					DEVELOPMENT	7	OPERATION
	2				5	GOLDFIELD: Goldfield	ÖKSÜT MINE
					District Project		Au
5		6	7			Au
			MOLYBDENUM ASSET
		2
				THOMPSON CREEK MINE:
						Care and Maintenance
						Mo
				6	LANGELOTHMOLYBDENUM ASSET
						METALLURGICAL FACILITY

Mo

  OPERATIONS

  DEVELOPMENT

MOLYBDENUM

ASSETS

Our visionis to build a team-based culture of excellence that responsibly delivers sustainable value and growth. Our objective is to build shareholder value by maximizing the potential of our current properties and leveraging our financial strength and experience to acquire new long-life,low-cost projects.

5	2021 Environmental, Social and Governance Report  Centerra Gold