Syrah Resources.

Fair Pay & Worker Respect

As a mining and industrial processing company with significant physical operations in Mozambique and the USA, Syrah Resources is inherently responsible for maintaining safe working conditions, fair compensation, and labor rights for its direct workforce. Syrah Resources (SYR.ASX) demonstrates a strong commitment to worker safety and labor standards, evidenced by its achievement of the IRMA 50 level of performance at its Balama operation, the first in the global graphite industry.

Regarding safety, the company reported a Total Recordable Injury Frequency Rate (TRIFR) of 1.2 in 2023 and 1.6 in 2024. While 2024 saw one significant permanent impairment injury (the first in six years), the rates remain well below industry averages, aligning with the tier for 1.5–1.8 supported by predictive management. In terms of labor violations, the company has a clean record with zero substantiated modern slavery or labor-law violations reported in the 2022, 2023, and 2024 reporting periods. It maintains proactive third-party audits through the IRMA framework and ISO:45001 certification. Retention and engagement are reported as positive. The company explicitly states it experiences "low turnover," which is supported by its high localization rates (98% in Mozambique and 75% in the US Miss-Lou region). Worker engagement is supported by the launch of biennial pulse surveys in 2023, which reported high participation and strong scores in health and safety, indicating a healthy workplace culture (~70/100). While the company utilizes a Collective Labour Agreement (CLA) at its Balama site (which employs the vast majority of its workforce), the specific percentage of the total global workforce covered by collective bargaining was not provided, preventing a tier assignment for that KPI.

Fair Trade & Ethical Sourcing

As a mining company, Syrah Resources operates in a sector with high inherent risks regarding human rights and supply chain transparency, requiring rigorous oversight of its extraction and processing sites. While the company is positioned to support the clean energy transition, its core business does not inherently advance or harm fair trade practices without specific evidence of its supply chain management and community engagement performance. Syrah Resources (SYR.ASX) demonstrates a structured approach to ethical sourcing, particularly through its Balama Graphite Operation in Mozambique and Vidalia facility in the USA. Key findings include: - **Certifications:** The Balama operation achieved the IRMA-50 level of performance, the first graphite operation globally to do so.

While not a traditional 'fair trade' retail certification, it serves as a third-party ethical mining standard. - **Audit Frequency:** IRMA surveillance audits occur every 18 months, with full reassessments every three years. Internal risk reviews are conducted monthly, and security/human rights training for contractors occurs biennially. - **Forced/Child Labour:** The company reported zero substantiated incidents of modern slavery or child labour in its FY2024 Modern Slavery Statement. It maintains a Human Rights Risk Management Framework (HRRMF) and grievance mechanisms. - **Traceability:** Syrah maintains a single chain of custody from mine to customer for its Vidalia products. However, mapping is primarily focused on Tier 1 suppliers (603 total), with the company acknowledging that deeper tiers remain a risk area, placing it in the ~35% mapping range for multi-tier visibility. - **Ethical Clauses:** Approximately 75% of supplier contracts (based on the use of 'Standard Terms and Conditions') include enforceable clauses requiring compliance with the company’s Human Rights Policy and Modern Slavery Statement. A formal Supplier Code of Conduct is slated for FY2025. - **Supplier Diversity:** While specific 'diversity' spend (BIPOC/Minority) is not fully quantified as a percentage of the total US$93.1M procurement budget, the company shows strong local engagement: 98% of the Balama workforce are Mozambican nationals (48% from host communities) and 30% of Vidalia employees are BIPOC. Total community investment stands at US$4.1M.

Honest & Fair Business

The core business of mining and material processing does not inherently advance or harm honest business practices; performance in this value is determined by behavioral evidence such as regulatory compliance, transparency, and governance, rather than the nature of the product itself. Syrah Resources (SYR.ASX) demonstrates a strong commitment to transparency and ethical governance across its mining and processing operations. **Regulatory & Financial Integrity:** There is no evidence of regulatory fines or ethics-related violations in the past three years.

The company maintains a clean record with zero financial restatements mentioned in its 2023 and 2024 reporting cycles. Its consolidated financial statements are audited by PwC, covering the group's operations. **Governance & Policies:** The Board consists of six directors, five of whom are independent (83%), including an independent Chair. The company has disclosed potential conflicts (e.g., J. Caldeira) and established protocols to manage them. Syrah maintains robust Anti-Bribery & Corruption and Whistleblower policies. The whistleblower program includes anonymous reporting channels and material incidents are reported to the Board, though specific resolution metrics are not disclosed. **Third-Party Verification:** Syrah actively seeks independent validation of its ethical and operational claims. Key evidence includes an ongoing independent audit against the Initiative for Responsible Mining Assurance (IRMA) Standard, independent technical reviews of its Tailings Storage Facilities (conducted by firms like TEC3), and a third-party reviewed Lifecycle Assessment (LCA) by Minviro Ltd. Furthermore, the company voluntarily submits Modern Slavery Statements despite falling below the mandatory revenue threshold, indicating a proactive approach to transparency.

Kind to Animals

As an industrial mining company, Syrah Resources' large-scale open-pit mining operations inherently involve significant land disturbance and habitat destruction, which negatively impacts local wildlife populations and ecosystems. Syrah Resources (SYR.ASX) is an industrial minerals company focused on graphite mining and processing. Based on the provided evidence, several KPIs are scored as 0 (N/A) because the company's core business model (mining and battery material production) does not involve animal-derived products, animal husbandry, or in-house animal testing operations. Regarding 'wildlife_conservation_impact', the company is tiered at -60. Evidence from the Environmental Impact Assessment (EIA) for the Balama project identifies that the operations are located in areas with high biodiversity, including 11 CITES-listed bird species and 8 mammal species of special concern.

The report explicitly acknowledges that habitat fragmentation from the project leads to elevated mortality for reptiles (tortoises, snakes, monitors) due to road traffic and predators. While the company has recommendations for conserving ecological corridors (inselbergs) and rehabilitating Riparian Woodland, these are presented as mitigation requirements for a 'Category A' project rather than proactive strategic conservation funded by a specific percentage of revenue. For 'animal_testing_policy', the company is tiered at 10. While it does not have a traditional 'cruelty-free' cosmetic-style policy, its achievement of the 'IRMA 50' certification (Initiative for Responsible Mining Assurance) requires compliance with over 400 requirements, including environmental responsibility and social standards. This serves as a comprehensive no-testing framework for its industrial context, where animal testing is not a standard part of graphite processing except where potentially mandated by high-level chemical safety regulations (though no such tests were reported).

No War, No Weapons

Syrah Resources is a mining and materials company focused on graphite for battery anodes; its core business is unrelated to the arms industry, military contracts, or conflict facilitation. Syrah Resources (SYR.ASX) is an industrial minerals company primarily focused on graphite production for the electric vehicle battery market. Regarding 'No War, No Weapons', the company's 2025 Annual Report explicitly identifies graphite as a 'dual-use' product with applications in 'defence' and nuclear sectors.

It also notes that its operations are subject to Chinese export controls on dual-use graphite products. While the company acknowledges these applications, it does not disclose specific revenue figures from defense contracts, leading to a tier of -50 for dual_use_technology (dual-use tech evaluated case-by-case with a majority civilian focus on batteries). The company demonstrates strong alignment with international human rights frameworks. It explicitly states that its approach to mitigating modern slavery and its grievance procedures are guided by the UN Guiding Principles on Business and Human Rights (UNGP), earning a tier of 10 for ungp_alignment. In terms of conflict minerals, Syrah's Balama operation achieved an 'IRMA 50' performance level from the Initiative for Responsible Mining Assurance. The company emphasizes a 'single chain of custody' and 'full auditability and transparency' for its graphite, which is extracted in Mozambique and processed in the USA. This supports a tier of 30 for conflict_minerals_percentage, representing 100% certification with continuous verification. While the company operates in Cabo Delgado, Mozambique—a region experiencing armed conflict—it monitors security risks in line with the 'Voluntary Principles on Security and Human Rights' and participated in the National Peace and Reconciliation Forum. However, there is no evidence of direct arms manufacturing or controversial weapons exposure, resulting in neutral scores for those specific KPIs.

Planet-Friendly Business

As a producer of graphite for lithium-ion batteries, Syrah Resources provides a critical material for the transition to electric vehicles and renewable energy storage, which inherently supports climate action goals. However, as an extractive mining company, its core operations involve significant land disturbance and energy-intensive processing, which necessitates proactive environmental stewardship to mitigate ecological harm. Syrah Resources (SYR.ASX) demonstrates a proactive approach to environmental stewardship, particularly through its downstream integration and transparency. Key findings include: - **Renewable Energy:** The Balama operation utilizes an 11.25 MWp solar and 8.5 MWh battery hybrid system, which displaces approximately 30–35% of annual diesel consumption, placing it in the 30-40% tier for renewables.

- **Lifecycle Analysis:** The company has conducted independent, third-party reviewed Life Cycle Assessments (LCAs) meeting ISO 14040/14044 standards for its core products (Balama natural graphite and Vidalia AAM), covering its primary product lines. - **Environmental Compliance:** Syrah reports zero significant environmental incidents or major non-compliances at its Balama operations for the 2024 and 2025 reporting periods. - **Transparency & Standards:** Balama is the first graphite operation globally to achieve the IRMA 50 level of performance. The company also maintains ISO 14001 and ISO 45001 certifications. It has published its first mandatory Climate Statement aligned with AASB S2 (TCFD-aligned) standards, including scenario analysis. - **Supply Chain:** The company maintains a "single chain of custody" from the Balama mine to the Vidalia facility, providing high transparency for Tier 1-3 impacts, which is a leadership position in the graphite sector. - **Social & Transition:** Syrah supports a "Just Transition" through its Balama Professional Training Centre (488 graduates) and local employment targets (98% in Mozambique). It also implements the Sustainable Income Generation Activities (SIGA) program to support local livelihoods. - **Biodiversity:** While the company operates a cashew seedling nursery, evidence of a portfolio-wide biodiversity strategy or large-scale restoration (covering >1% of land) is currently limited to pilot-scale descriptions.

Respect for Cultures & Communities

As a mining company operating in Mozambique, Syrah Resources is inherently in scope for community impact, land rights, and potential displacement issues. While their product supports the energy transition, the mining process itself carries significant risks to local communities, requiring ongoing monitoring of their FPIC and social license to operate. Syrah Resources (SYR.ASX) demonstrates a complex relationship with its host communities in Mozambique, characterized by significant local economic integration alongside severe operational disruptions due to historical grievances. **Community Protest & Displacement:** The company faced significant community opposition starting in late September 2024, leading to a nine-month shutdown of the Balama mine and a declaration of force majeure in December 2024.

These protests were driven by historical land resettlement grievances from farmers relocated between 2014 and 2016. While the company has a Resettlement Action Plan (RAP) and reached a tripartite agreement in April 2025 to resolve the dispute, the severity of the disruption (zero production for three quarters) and the persistence of the grievances warrant a -80 for protest severity and -30 for displacement disputes. **Local Employment & Procurement:** Syrah performs strongly in local economic contribution. As of March 2025, 97-98% of its Mozambican workforce are national citizens, with approximately 45-50% recruited directly from the eight host communities. The company has also trained nearly 500 community members through its professional training center. This documented majority local hire supports a tier of 30. **Grievance Resolution & Revenue Sharing:** The company has established structured grievance mechanisms and a Local Development Committee (LDC) to oversee community investments. While it reached a formal agreement to resolve the 2024/25 protests, the long duration of the conflict suggests room for improvement in resolution speed (-20). Regarding revenue sharing, while there is no verified percentage-based equity sharing, the company has a documented Local Development Agreement (LDA) with the government, resulting in over $4 million in direct community investments (schools, boreholes, and agricultural programs) and a cumulative $598 million contribution to the national economy.

Zero Waste & Sustainable Products

As a producer of active anode material for lithium-ion batteries, the company provides a critical component for energy storage technologies that enable the electrification of transport, which is a key pillar of circular economy and sustainable product lifecycles. Syrah Resources (SYR.ASX) demonstrates a structured approach to waste management across its Balama (Mozambique) and Vidalia (USA) operations, guided by '3R' (Reduce, Reuse, Recycle) principles and ISO 14001 certification.

For the waste_diversion_rate, data from Q2 2024 shows that out of 108.5 tonnes of non-hazardous waste at Balama, 68.3 tonnes (approximately 63%) were diverted from landfill through recycling (28t) and composting (40.3t). This aligns with the 'advanced waste management' tier. Waste reduction initiatives are robust, including the use of balers for graphite super sacks, composting organic waste for onsite nurseries, and repurposing wood and scrap metal for local communities (over 30 tonnes in Q4 2022). Hazardous waste is managed through a formal program involving regular training and secure storage, though significant volumes are still incinerated (78.1t in Q2 2024), placing it in the 'active reduction' tier. Regarding single-use plastics, the company has established programs at both major sites, installing water purification systems and providing reusable bottles to substantially reduce plastic bottle consumption. Compliance is a strong point; the company reports zero significant environmental incidents or non-compliances at its Tailings Storage Facilities (TSF) over the past three years. Waste reduction targets are company-wide, notably evidenced by the 100% completion of the 70-action GISTM alignment plan for tailings in 2025. Customer and community education is present but limited to basic awareness sessions and 'Mine Open Doors' programs for local communities near the Balama site.