Sibanye Stillwater : CDP Climate Change Response

Sibanye Stillwater - Climate Change 2021

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Sibanye-Stillwater is an independent, global, precious metals mining company producing a unique mix of metals that includes platinum group metals (PGMs) and gold. The mining house is a top tier gold producer, ranking 3rd globally on a gold-equivalent basis, and is also one of the world's largest primary producers of platinum and rhodium. The Group is also a leading global recycler and processor of spent PGM catalytic converter materials, and produces iridium, ruthenium, chrome, copper and nickel as by-products.Sibanye-Stillwater also recently entered the battery metals industry by investing in a lithium hydroxide project in Finland in 2021.

Sibanye-Stillwater has aligned its environmental priority of "improving life through the sustainable use of our natural resources, driving environmental consciousness and continuous improvement, with measured transition to a carbon neutral future" with the Group's environmental, social and governance (ESG) strategy. ESG is core to the 6 strategic focus areas for the Group. Sibanye-Stillwater creates and shares value to improve lives through our business activities. In so doing, we invest in and optimise the responsible use of our capital inputs, to ensure sustained value creation for all stakeholders in the long term.

Sibanye-Stillwater recognises that global warming and associated climate change are realities that require global action. The company is equally committed to contributing to a global solution through deployment of responsible strategies and actions which are outlined in our ESG policy and supporting 'Climate Change' and 'Energy and Decarbonisation' position statements, endorsed by our CEO and published on our website. Notably in 2020, Sibanye-Stillwater published the Group 2040 net-zero emissions target. The target is the outcome of extensive research and considerations of how best to position the Group as both a climate and mining leader. Sibanye-Stillwater has also introduced an interim emission reduction target, starting in 2021, which is linked to executive remuneration.

Furthermore, the Sibanye-Stillwater CARES values underpin our strategy, how we conduct business and interact with stakeholders. In living these values, we show that we care about safe production, our stakeholders, environment, company and our future.

Sibanye-Stillwater operates a number of mining complexes across South Africa and the United States of America, together with a number of smaller mining projects across in the globe. The primary operations are organised in three following segments.

US PGM segment:

The East Boulder and the Stillwater (including Blitz) mines are located in Montana. The Columbus Metallurgical Complex, also located in Montana, which smelts the material mined to produce PGM-rich filter cake, also recycles PGMs from auto catalysts. The US PGM operations primarily produce palladium and platinum (78% palladium and 22% platinum). The PGM-bearing ore mined is processed and smelted to produce a PGM-rich filter cake. A third party refines the filter cake.

Southern Africa PGM segment:

The Kroondal (95.3% stake), Marikana operation (95.3% stake) and Rustenburg operations are located on the western limb of the Bushveld Complex in South Africa, while the Mimosa (50% joint venture) is situated on the southern portion of the Great Dyke in Zimbabwe. Platinum Mile (91.7% stake) is a retreatment facility, which reprocesses tailings arisings from Rustenburg. The primary PGMs produced at the operations in South Africa and Zimbabwe are platinum, palladium, rhodium and gold. The PGM-bearing ore is processed to produce PGMs-in-concentrate, which is processed and refined both by Sibanye-Stillwater's Marikana smelter and Brakpan Precious Metal Refinery and by third parties.

South Africa gold segment:

The Driefontein, Kloof and Cooke surface operations and associated processing facilities are located on the West Rand of the Witwatersrand Basin, while Beatrix is in the southern Free State goldfields. Sibanye-Stillwater also has an interest in surface tailings retreatment facilities located from the East Rand to the West Rand through a 50.1% stake in DRDGOLD Limited.

Sibanye-Stillwater mines, extracts and processes gold-bearing ore at its South African gold operations to produce a beneficiated product, doré, which is then refined at Rand Refinery Pty Ltd into gold bars with a purity of at least 99.5% in accordance with the London Bullion Market Association's standards of Good Delivery. Sibanye-Stillwater holds a 33.1% interest in Rand Refinery, one of the largest refiners of gold globally, and the largest in Africa. Rand Refinery markets and sells refined gold on international markets to customers around the world. DRDGOLD holds an 11.3% share in Rand Refinery.

Sibanye-Stillwater has its primary listing on the JSE, South Africa, where it is included in the FTSE/JSE Responsible Investment Index. The company is also listed on the NYSE, with its shares quoted as American Depositary Receipts.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date	Indicate if you are providing emissions data for past reporting	Select the number of past reporting years you will be providing emissions data
			years	for
Reporting	January 1	December 31	No
year	2020	2020

C0.3

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(C0.3) Select the countries/areas for which you will be supplying data.

South Africa

United States of America

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

ZAR

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

C-MM0.7

(C-MM0.7) Which part of the metals and mining value chain does your organization operate in?

Row 1

Mining

Gold

Platinum group metals

Processing metals

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of	Please explain
individual(s)
Board-level	At Sibanye-Stillwater, the Social, Ethics and Sustainability Committee (SESC) as well as the Risk Committee, both Board-level committees, are responsible for addressing climate-related issues. The
committee	SESC is a statutory committee which assists the Board in guiding and monitoring the Group's performance in relation to corporate citizenship, environmental, social and governance factors, the
	Sustainable Development Goals and sustainability and ethics, which includes climate-related issues. The Environmental, Social and Governance Committee, constituted in 2019, is dedicated to
	reviewing sustainability issues. This committee reports into the SESC. The Risk Committee oversees risk management on behalf of the Board. The committee is responsible for ensuring the Group
	sustainability by evaluating and overseeing implementation of efficient risk management processes and controls to identify, monitor and mitigate risks and to act on opportunities identified. Climate-
	related issues are integrated as part of the risk management and opportunity identification processes. We are cognisant that climate change is impacting on environmental conditions at our operating
	sites to an increasingly greater extent. For example, water scarcity may have a more substantial effect on our South African operations, while extreme weather events such as increasingly intense
	winter storms may be experienced at our United States operations. In line with this, notable examples of climate-related decision made by the SESC in 2020 include adoption of the 2040 net-neutral
	target as well as the decision to develop of a Tailings Management Working Group, mandated to design and implement a Group tailings management framework aligned to the requirements of the
	Global Industry Standard for Tailings Management and the ICMM. Climate change impact mitigation and adaptation are key components of a comprehensive Group tailings management framework.
	Another example is the SESC's climate-related decision to consider a broader water management strategy across our SA operations that will enable water deficits to be offset by water surpluses in
	other districts. Our aim is to ensure efficient and effective utilisation of water resources with minimum impact on surrounding water resources and ensure water availability for affected ecosystems,
	surrounding communities and our operations.

C1.1b

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(C1.1b) Provide further details on the board's oversight of climate-related issues.

Frequency	Governance	Scope of	Please explain
with	mechanisms	board-
which	into which	level
climate-	climate-	oversight
related	related issues
issues are	are integrated
a
scheduled
agenda
item
Scheduled	Reviewing and	<>	The Board is responsible for evaluating, determining and ensuring the implementation of corporate strategy and policy. The Board defines the strategic policy intent and
- all	guiding	Applicabl	objectives of the Company as a business enterprise as well as its values and approves the mission, vision and strategy of the company. The Board satisfies itself that the
meetings	strategy	e>	strategy and business plans do not give rise to risks that have not been thoroughly assessed by management and considers sustainability as a business opportunity that
	Reviewing and		guides strategy formulation. The Group's strategy is consistent with integrated thinking, which links different capitals and ensures sustainable outcomes. Notably, the
	guiding major		'Natural Capital' resource incorporates climate-related matters, which are thus considered at the highest levels of the organisation. The Board participates in an annual
	plans of action		strategy session, in which the Group's strategy, assessed risks and opportunities are deliberated. Progress of implemented strategies are also considered, to ensure
	Reviewing and		alignment with Group values with a view to ensuring the long term success of the Group. For example, the Board is actively pursuing strategic opportunities in mining metals
	guiding risk		that aid in the global low-carbon transition. Accordingly, the Group entered the battery metals industry in 2021 by investing in a lithium hydroxide project in Finland. The
	management		Social, Ethics and Sustainability Committee, a Board-level committee, assists the Board in monitoring the fulfilment of this mandate. It is a statutory committee which assists
	policies		the Board in guiding and monitoring the Group's performance in relation to corporate citizenship, environmental, social and governance factors, the SDGs as well as
	Setting		sustainability and ethics matters, which include climate-related issues. The Committee meets on a quarterly basis and reports directly to the Board of Directors. The
	performance		quarterly Social and Ethics Report and the ESG Board reports include climate change risks and opportunities affecting the company, major climate-related management
	objectives		plans and performance on objectives and targets. An example of governance oversight in 2020 on climate change matters included the endorsement of a 2040 Group-wide
	Monitoring		carbon neutral target. Sibanye-Stillwater has also committed to a Group target to reduce absolute Scope 1 and 2 GHG emissions by 27% by 2025 from a 2010 base year.
	implementation		The SBTi approved the Group target, demonstrating that our emissions reduction targets conform to the required science-based calculation methodology and further
	and		contribute to the global climate change challenge. In addition, Sibanye-Stillwater's board has endorsed the Group-wide Environmental, Sustainable Development, Carbon
	performance of		Management, Water Management, Tailings Stewardship Policy and ESG Policy. In 2021 position statements related to: Climate Change, Waste Management, Energy and
	objectives		decarbonisation, Water Health, Biodiversity, Water Conservation and Water Demand Management, Air Quality, Heritage and Socio-economic closure were finalised.
	Overseeing
	major capital
	expenditures,
	acquisitions
	and
	divestitures
	Monitoring and
	overseeing
	progress
	against goals
	and targets for
	addressing
	climate-related
	issues
	Other, please
	specify (The
	Board
	contributes to
	and approves
	the mission,
	vision and
	strategy of the
	company)

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s)	Reporting	Responsibility	Coverage of	Frequency of reporting to the board on
	line		responsibility	climate-related issues
Chief Executive Officer (CEO)	<>	Both assessing and managing climate-related risks		Quarterly
	Applicable>	and opportunities
Other, please specify (Executive Vice Presidents - SA Gold; SA PGM	<>	Both assessing and managing climate-related risks		Quarterly
and US PGM segments)	Applicable>	and opportunities
Other, please specify (Sustainability Vice Presidents - SA Gold; SA PGM	<>	Both assessing and managing climate-related risks		Quarterly
and US PGM segments)	Applicable>	and opportunities

C1.2a

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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).

Below Board-level, our CEO carries the highest-level management position with responsibility for climate-related issues for the Group. The CEO reports directly to the Board on a quarterly basis. The embedding of our values, underpinning our corporate culture and driving decision-making throughout the organisation is led by the CEO and senior leadership, supported by the Board. The Social, Ethics and Sustainability Committee and the Risk Committee, both Board-level committees, have a role in advising on our climate change response strategies. The Committees provide strategic direction and oversight. Our CEO provides leadership in the area of policy and strategic direction and provides the Board with comprehensive information, analysis and advice on all aspects of the business, which includes climate-related issues. The responsibilities of our CEO include endorsement of our carbon management policy statement; 2040 carbon neutral target, interim year-on-year emission reduction targets (initiated in 2021) and the commitment to contributing to a global climate solution through the deployment of responsible strategies which filters down to the operations.

Rationale for assigning responsibility for climate-related issues at management level to the CEO: the CEO, in conjunction with the respective Executive Vice Presidents, leads and manages daily operations and is therefore able to report important climate-related issues identified at operational level to the Board where strategic decisions are made (bottom-up approach). At the same time, the CEO's mandate is to guide the efficient and correct implementation of strategy as approved by the Board (top-down approach).

At the US PGM, SA Gold and SA PGM operations, the Executive Vice President carries the overall responsibility for climate-related issues at the respective operations, specifically the monitoring and reporting thereof. His/her responsibilities include assessment of the regulatory framework and changes therein, annual monitoring and performance assessments against both the longer 2040 carbon neutrality target and the new interim target, and progress on emission reduction initiatives. At the US PGM operations, the monitoring and reporting tasks are delegated via the Vice President - Legal, Environment and Governmental Affairs, who sits below the Executive Vice President, who reports to the Group Social, Ethics and Sustainability Committee on a quarterly basis, or where board oversight is sought.

At the SA Gold and SA PGM Operations, the Executive Vice Presidents delegate these tasks to their respective environmental department through the Senior Vice President: Environment. The Senior Vice President: Environment reports to the Executive Vice Presidents who then report to the Social, Ethics and Sustainability Committee on a quarterly basis, or where board oversight is sought.

Rationale for assigning management responsibility for climate-related issues to the Executive Vice President of the respective operations: they are responsible for providing an enabling environment to achieve emissions reductions throughout the business. At the US PGM operations, the combined responsibilities of the Vice President - Legal, Environment and Government and the Sibanye-Stillwater leadership ensure alignment with the Group climate change strategy. At the SA Gold and SA PGM operations, Sibanye-Stillwater climate change issues are best monitored through the environmental department, who escalate important findings directly to the Board, which are integrated into the broader enterprise risk management process.

Group Technical, headed by the Chief Technical Officer (CTO) provides technical support to the operations, and is a dedicated central function whose objective is to formulate and accelerate Group-wide climate change and decarbonisation strategies. The Chief Technical Officer (CTO) reports to the Chief Executive Officer (CEO), and supports the CEO in key decision-making by ensuring that strategic climate-related objectives translate into operational initiatives. This takes place in conjunction with the Senior Vice President (SVP): Sustainability and the SVP: Environment, who oversee the integration of sustainability and environmental considerations, respectively, across the business.

The SVP: Sustainability oversees and drives overall sustainability within the Group including strategic issues on climate change. The SVP: Environment, reports into the CTO and is responsible for setting and driving the strategic direction on a range of environmental issues, including our climate change response and GHG emissions reduction strategy. The SVP guides and supports the operational Executive Vice Presidents (EVPs) and SVPs in driving strategic climate change objectives, ESG objectives and long- term environmental incentives.

The management, budgeting and operational compliance activities reside with each of the EVPs for the SA gold, SA PGM and US PGM operations respectively.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?

	Provide incentives for the management of climate-	Comment
	related issues
Row	Yes	This forms part of the overall incentive scheme for the company and is linked to our performance management system. Performance
1		assessments are held annually.

C1.3a

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(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).

Entitled to	Type of	Activity	Comment
incentive	incentive	inventivized
Board/Executive	Monetary	Behavior	Sibanye-Stillwater's Board of Directors are monetarily rewarded for values-baseddecision-making through which Sibanye-Stillwater is able to achieve the Group's
board	reward	change related	strategic objectives. Our incentive system also aims to actively support the associated change in leadership behaviour which is required for value-based decision-
		indicator	making. Accordingly, Sibanye-Stillwater has linked executive remuneration with a new, interim operational emission reduction target which was initiated in 2021. This
		Other (please	target is interim to the Group's broader 2040 net-neutral target. The interim target aims to reduce the 2021 Group-level scope 1 and 2 emissions by 1.5% relative to a
		specify)	2020 baseline adjusted for COVID-19 production impacts. This target will increase in subsequent years to align to the medium-term SBTi target and long-term carbon
		(Environmental	neutrality target.
		performance)
Corporate	Monetary	Emissions	Sibanye-Stillwater's corporate executive team is rewarded for cost reduction optimisations, including efficiencies from reducing energy consumption, emissions
executive team	reward	reduction	reduction and risk mitigation and management. In addition, Sibanye-Stillwater's corporate executive team receives external recognition for climate change related
		project	efforts in the form of awards, such as the CDP Climate A-List, Dow Jones Sustainability Index leader, FTSE Green Revenues Index listing and Carbon Rankings by
		Emissions	Environmental Investment Organisations. This type of recognition provides additional incentives that have the potential to positively change behaviours and attitudes to
		reduction	environmental stewardship.
		target
		Energy
		reduction
		project
		Efficiency
		project
		Behavior
		change related
		indicator
Energy	Monetary	Energy	Sibanye-Stillwater's energy managers, also known as engineering managers, are monetarily rewarded for meeting energy, emission reduction targets and generating
manager	reward	reduction	business related to the Group climate change strategy. The performance indicator is the implementation of projects resulting in effective energy and carbon emission
		project	reductions. Engineering (Energy) Management's balance scorecards are related to these performance indicators.
		Efficiency
		project
Environmental,	Monetary	Energy	Sibanye-Stillwater's environment/sustainability managers are monetarily rewarded for identifying and managing (on a continuous basis) risks and opportunities related
health, and	reward	reduction	to climate change (the indicator is whether relevant risks and opportunities have been identified and communicated to the Senior Management) and meeting emission
safety manager		project	reduction targets. The Environmental Managers' balanced scorecards are related to the performance indicators presented above.
		Efficiency
		project

C2. Risks and opportunities

C2.1

(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?

Yes

C2.1a

(C2.1a) How does your organization define short-, medium- and long-term time horizons?

	From	To	Comment
	(years)	(years)
Short-	0	5	Sibanye Stillwater conducted a TCFD scenario-analysis and developed a low carbon plan. This timeframe was used in the aforementioned processes and informs the company's
term			risk and opportunity assessment process.
Medium-	5	10	Sibanye Stillwater conducted a TCFD scenario-analysis and developed a low carbon plan. This timeframe was used in the aforementioned processes and informs the company's
term			risk and opportunity assessment process.
Long-term	10	15	Sibanye Stillwater conducted a TCFD scenario-analysis and developed a low carbon plan. This timeframe was used in the aforementioned processes and informs the company's
			risk and opportunity assessment process.

C2.1b

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