Neo’s 2022 ESG Data

GRI 1

This report uses the framework provided by GRI 1: Foundation 2021 reports in accordance with the GRI standards.

GRI 2-1

Information on organization details is outlined in section About Us (page 5-7).

GRI 2-2

Entities included in Neo’s sustainability reporting include:

• Neo Performance Materials ULC

• Neo Rare Metals (Oklahoma), LLC

• Buss & Buss Spezialmetalle GmbH

• NPM Silmet OU

• Zibo Jiahua Advanced Materials Resources Co., Ltd.

• Jiangyin Jiahua Advanced Material Resources Co., Ltd

• Magnequench (Tianjin) Company Limited

• Magnequench Magnetics (Chu Zhou) Co., Ltd.

• Magnequench (Korat) Co., Ltd.

GRI 2-3

Reporting period: Jan 1st, 2022 – Dec 31st, 2022

Publication date: October 15, 2023

Contact email: v.tsianos@neomaterials.com

GRI 2-4

Information on 2021 Scope 1 & Scope 2 GHG emission data restatement is outlined in section Air Quality and Emissions (page 60-61).

GRI 2-5

Executive team reviews report and data

HESS committee is heavily involved in review and assurance of sustainability report.

Internal ESG team reviews and audits ESG report.

Report is not externally assured. Third party data collection process.

GRI 2-7

Information on employee is outlined in section Employees (page 65).

GRI 2-8

Number of contractor employees are calculated by dividing total contractor work hours by standard annual work hours of a full-time employee (2080 hours).

GRI 2-9

The board of director structure is outlined in section Corporate Governance (page 84).

GRI 2-11

The board of director structure is outlined in section Corporate Governance (page 84).

GRI 2-14

The company’s Health, Environment, Safety, and Sustainability (HESS) Committee, which is composed of members of the Board of Directors, is responsible for overseeing the integration of sustainability principles into everyday business operations. Among their roles is the assessment of HESS targets and objectives set forth by the management, keeping track of progress towards these goals, and suggesting necessary adjustments. The Board members serving on this committee have thoroughly examined this report, and their feedback has been incorporated into this document.

More information on the board’s HESS Committee is outlined in section Corporate Governance (page 84).

GRI 2-16

Information on Neo’s communication policies and mechanisms is outlined in section Communication of Critical Concerns to Highest Governance Body (page 90).

GRI 2-17

Information on advancing ESG knowledge of Neo’s highest governance body outlined in section Sustainability Report Context and Methodology (page 35) .

GRI 2-18

Information Neo’s various board committees are outlined in section Board Committee (page 85).

GRI 2-19

Information on Neo’s ESG-linked executive compensation is outlined in section ESG-linked Executive Compensation (page 86).

GRI 2-22

Statement on sustainable development by the Board of director’s Chair and the Chief Executive Officer are included (page 11).

GRI 2-23

Information on Neo’s policy commitments for responsible business conduct and respect to human rights is outlined in the Ethical Business Practices section (page 89), and the following documents:

• Whistleblower Policy

• Code of Business Conduct and Ethics

• Anti-Corruption and Anti-Bribery Policy

GRI 2-24

Information on Neo’s governance strategy on policy commitments is outlined in section Corporate Governance (page 87).

GRI 2-26

Information on Neo’s communication policies and mechanisms is outlined in section Communication of Critical Concerns to Highest Governance Body (page 89).

GRI 2-27

Information on compliance with laws and regulations is outlined in section Compliance with Laws and Regulations (page 94).

In April 2022, the Linzi District Emergency Management Bureau detected safety infractions at Neo’s Zibo, China facility. The cited violations included inadequate protective covering for a pump motor and non-compliant warning signage, both of which fall short of the jurisdiction’s safety standards. Consequently, the company received an administrative penalty of 9,000 RMB.

GRI 2-28

Information on membership and associations are outlined in section Membership & Associations (page 97).

210a.1

GRI 2-29

Neo’s approach to stakeholder engagement is outlined in section Stakeholder and Public Engagement (page 95).

GRI 2-30

Information on collective bargaining agreements is outlined in section Collective Bargaining (page 68).

GRI 3-1

Process to determine material topics outlined in Materiality section (page 37)

GRI 3-2

List of material topics (page 37)

GRI 3-3

Management of material topics outlined in materiality section (page 37)

GRI 302-1

Energy management and consumption outlined in energy management section (page 46)

SASB Summary:

• Total energy consumed: 1.05 million GJ

• Grid electricity: 32.42%

• Renewable: 24.37%

• Self generated energy: 0.14%

130a.1

GRI 303-1

Neo’s strategy to protecting water resources and interacting with water as a shared resource are outlined in Water and Effluents section (page 50).

GRI 303-2

Neo’s management of water discharge-related impacts outlined in Management of Water Discharge-Related Impacts (page 56).

GRI 303-3

Neo’s facilities located in water stress regions include Sillamäe, Estonia; Sagard, Germany; Tianjin, China, and Zibo City, China.

Water withdrawal information is outlined in section Water and Effluents (Page 50)

SASB Summary:

• Total water withdrawn:

• Percentage of water withdrawn from non-freshwater sources:

• Total water consumption:

• Water withdrawn in High or extremely high stress regions as
a percentage of total water withdrawn:

• Water consumed in High or Extremely High Stress regions as
a percentage of total water consumed:

• Number of incidents of noncompliance associated with water
quality permits, standards, and regulations: 0

• Neo’s most significant water management risks are outlined in
section: Water and Effluents (Page 50)

140a.1

140a.2

140a.3

GRI 303-4

Water discharge information is outlined in section Water and Effluents (Page 50).

GRI 303-5

Water consumption information is outlined in section Water and Effluents (Page 50).

*(negative) values and instances where total water consumption from all areas are lower than total water consumption in water stress regions are indications that one or several plants may have water as by-product discharge.

GRI 305-1

Total Scope 1 GHG emissions include CO2, CH4, N2O, and HFCs.

2021 Scope 1 GHG was revised. Further explanations and information on Scope 1 emissions is outlined in section Air Quality and Emissions (page 57).

SASB Summary:

• Covered under emissions-limiting regulations: 0%

• Neo is currently developing its long-term and short-term strategy
to manage scope 1&2 emissions.

GRI 305-2

Total Scope 2 GHG emissions include CO2, CH4, and N2O.

2021 Scope 2 GHG was revised. Further explanations and information on Scope 2 emissions is outlined in section Air Quality and Emissions (page 57)

GRI 305-7

Other HAPs include ammonium hydroxide, HCl, NH3, CO, nitric acid, fluorine, and gaseous fluorides converted to fluorine.

Further information on NOx, SOx, and other significant air emissions is outlined in section Air Quality and Emissions (page 57)

120a.1

GRI 306-2

Our Tianjin, China facility diverted 179 tons of magnesia, crucibles, and pouring tanks to manufacturers for recycling and refurbishing.

Working with its customers, our Tianjin facility collected and recycled 42,847 packaging cans, 0.4 tons of wooden pallets, and 85.46 tons of magnetic product wastes.

(page 61)

GRI 306-3

Waste generated and related information is outlined in section Waste (page 61)

SASB summary:

• Hazardous waste generated: 4,965 metric tons

150a.1

GRI 306-4

Waste disposal and related information is outlined in section Waste (page 62).

Waste neither disposed nor diverted from disposal are temporarily stored on-site.

SASB summary:

• Hazardous waste recycled: 57%

150a.1

GRI 401-1

GRI 403-1

Information on occupation health and safety management system is outlined in section Occupational Health and Safety Management System (page 68).

GRI 403-2

Information on hazard identification, risk assessment, and incident investigation is outlined in section Hazard Identification and Risk Assessment (page 70).

GRI 403-3

Information on Occupational health services is outlined in section Occupational Health Services (page 71).

GRI 403-4

Information on worker participation, consultation and communication on occupational health and safety is outlined in section OHS-Related Worker Participation, Consultation, and Communication (page 72).

GRI 403-5

Information on worker training on occupational health and safety is outlined in section Worker Training on OHS (page 73).

GRI 403-8

Information on workers covered by an occupational health and safety management is system outlined in section Worker Covered by OHS Management System (page 73).

GRI 403-9

Information on work related injuries is outlined in section Work Related Injuries (page 74).

LTIR and TRIR are calculated based on 200,000 hours worked.

SASB summary:

• Total recordable incident rate: 0.36

• Total fatality rate for direct employees: 0

• Total fatality rate for contract employees: 0

320a.1

GRI 403-10

Information on work-related ill health outlined in section Work-Related Ill Health (page 75).

SASB summary:

• Occupational illness at Neo was 0 in the trailing three
years (2020-2022)

320a.2

GRI 404-1

Information on average hours of training per year per employee is outlined in section Training (page 67).

GRI 405-1

Information on diversity of governance bodies and employees is outlined in sections Employees (page?) and Corporate Governance (page 67& page 84).

GRI 406-1

Information on incidents of discrimination and corrective actions taken are outlined in section Anti-Workplace Harassment and Anti-Discrimination (page 91).

GRI 408-1

Neo’s stance on human rights protection is outlined in section Human Rights Protection and Promotion (page 88).

GRI 409-1

Neo’s stance on human rights protection is outlined in section Human Rights Protection and Promotion (page 88).

GRI 411-1

Information on incidents of violations involving indigenous peoples is outlined in section Rights of Indigenous Peoples (page 68).

GRI 416-2

Information on health and safety of products and services is outlined in section Commitment to Product Safety (page 82).

Omissions

Additional SASB