Adbri : Net Zero Emissions Roadmap

Acknowledgment of Country

We acknowledge the Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands and waters of Australia. We recognise their continuing custodianship of Country and culture and pay respect to their Elders past, present and emerging.

01

• 02 Introduction & overview

• 02 Our Net Zero Emissions Roadmap

• 03 A message from our leaders

• 04 Our business at a glance

• 06 Our manufacturing processes

• 09 Net zero emissions goal

• 10 Our indicative pathway to net zero emissions by 2050

• 12 Short-term 2024 targets

• 14 Medium-term 2030 targets

• 18 Long-term 2050 goal

• 19 Action plan and decarbonisation levers

• 20 Reduce emissions

• 24 Create new products

• 25 Collaborate with key partners

• 26 Our external environment

• 27 Our investment and reporting

• 27 Investing in our action plan and decarbonisation levers

• 27 Offsets

• 27 Reporting

• 28 Our approach

• 28 Climate Change Position Statement

• 28 Our Sustainability Framework

• 29 Task Force on Climate-Related Financial Disclosure (TCFD)

• 30 Our emissions

• 30 Clinker, cement, concrete and masonry

• 30 Lime

• 30 GHG emissions

• 31 Historical performance

• 34 Assurance

Disclaimer

This document has been prepared for the purpose of providing investors in Adbri Limited with information regarding the Company's long-term planning with respect to its climate change response. The Net Zero Emissions (NZE) Roadmap contains forward-looking statements and statements of opinion. These may include statements regarding climate change, transition scenarios, external enablers (including technology commercialisation, policy support, market support for lower carbon products, raw materials availability and energy availability), and actions of third parties. Such statements may be identified by the use of terminology including, but not limited to, `intend', `aim', `project', `see', `anticipate', `estimate', `plan', `objective', `believe', `expect', `commit', `may', `should', `need', `must', `will', `would', `continue', `forecast', `guidance', `trend' or similar words.

Any such statements speak only at the date of this Roadmap. Readers are cautioned not to place undue reliance on such statements, particularly in light of the long-time horizon which this Roadmap discusses and the inherent uncertainty in possible policy, market and technological developments in the future. No representation or warranty is made regarding the accuracy, completeness or reliability of the forward-looking statements or opinion, or the assumptions on which either is based. All such information is, by its nature, subject to significant uncertainties outside of the control of the Company, and actual results, circumstances and developments may differ materially from those expressed or implied in this Roadmap. There are also limitations with respect to scenario analysis, and it is difficult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate. Except as required by applicable laws or regulations, the Company does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events.

To the maximum extent permitted by law, the Company and its officers do not accept any liability for any loss arising from the use of the information contained in this Roadmap.

The information included in this Roadmap is not investment or financial product advice. Before making an investment decision, you should seek appropriate financial advice, which may take into account your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

Unless otherwise stated, the emissions data contained in the NZE Roadmap is reported as financial year (FY) 30 June, consistent with regulatory reporting requirements. Adbri's financial year is 31 December.

02

Introduction & overview

For personal use only

Our Net Zero Emissions Roadmap

Scope 1 and 2 emissions

7%

absolute reduction target by FY24 vs FY19

4%

reduction achieved since FY19

32%

reduction achieved since FY10

Cement

20%

reduction in cement emissions intensity kg CO2e net/tonne of cement from a FY20 baseline of 557kg CO2e net/tonne

Our actions

Reduce

emissions

-

Improve process and energy efficiency

• - Increase use of alternative fuels

• - Increase use of supplementary cementitious materials (SCMs)

• - Grow expertise in breakthrough technologies

Lime

10%

reduction in lime emissions intensity kg CO2e/tonne of lime from a FY20 baseline of 1,100kg CO2e/tonne

Create

new products

-

Develop new SCMs

• - Innovate and develop lower carbon products

• - Launch Environmental Product Declarations (EPDs) to inform choice

• - Create product awareness to grow market demand

Electricity

100%

zero emissions electricity from a FY20 baseline of zero

Collaborate

with key partners

-

Technology partners: innovation across our operations

• - Customers: new product specifications

• - Governments: policy settings

• - Suppliers: inputs into our processes

• - Joint venture partners: knowledge sharing and shared goals

Net zero emissions

Adbri Net Zero Emissions Roadmap

For personal use only

A message from our leaders

"Achieving our goal of net zero emissions by 2050 is a priority for Adbri in delivering shareholder value. We are committed to taking decisive action on climate change in line with the expectations of our shareholders, customers and community."

Raymond Barro, Chairman

Adbri is a pioneering Australian manufacturing company. Since 1882, we have been Building a Better Australia by providing cement, lime, aggregates, concrete and masonry products to our customers and communities. Our success is tied to the sustainable growth of the Australian economy and the materials we produce are integral to supporting that growth.

Adbri's goal is to achieve net zero emissions by 2050, in line with the Paris Agreement. This is our first Net Zero Emissions (NZE) Roadmap and it sets out the targets and actions we will progress as we strive to decarbonise our business. The Roadmap builds on our strong performance to date - a 32% reduction in operational GHG emissions since FY10, with more than $50 million invested in projects delivering abatement outcomes over the past decade.

The NZE Roadmap has been guided by the scenario analysis disclosed in our Task Force on Climate-Related Financial Disclosures (TCFD) reporting in our 2020 Sustainability Report. The analysis highlighted that the building, construction and materials sectors have a critical role to play supporting Australia's transition to a low carbon economy.

Adbri operates two emissions-intensive and hard-to-abate processes: the integrated manufacture of clinker and cement; and lime production that are critical to the economy. We believe that a strong Australian manufacturing sector is important for our country's future, especially following increased supply chain risks, and are committed to finding solutions to reduce our operational emissions from our manufacturing processes. Importing clinker would be an easy solution to reduce our Scope 1 emissions, however it would increase Scope 3 emissions and not reduce global emissions.

We have initially set medium-term targets for Scope 1 and Scope 2 emissions and intend to set a Scope 3 emissions target in the future. Our priority is to reduce emissions within our operations that meet our targets, rather than relying on offsets. Offsets may have a role to play if there are any residual emissions.

The Australian Government's Low Emissions Technology Statement 2021 identified low emissions cement as one of its emerging technologies helping address Australia's key challenges, including decarbonising and expanding Australia's manufacturing base and supporting jobs.

We cannot advance climate change action alone. Government policy that creates the right framework for change is critical, coupled with real industry action and customer shifts. We are exploring options to expand our partnerships that accelerate the commercialisation of breakthrough technologies at scale needed for us to achieve our NZE goal.

We believe that success in implementing our NZE Roadmap can deliver value to shareholders, help us maintain the trust of our stakeholders, retain and attract employees while securing access to capital, resources and markets long into the future.

We will work diligently to implement our NZE Roadmap and will share our progress. We welcome all of our stakeholders to join us on this very important journey.

Managing Director & CEO

Chief Sustainability & People Officer

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