Eramet

Board of Directors

The Board of Directors determines the business strategy, examines and approves all decisions on the Group's major strategic lines of action and monitors their implementation. Eramet's strategy aims to promote the Company's long-term value creation by considering the social and environmental challenges of its activities.

Composition

18 members

• Christel BORIES, Chair and Chief Executive Officer
• Émeric BURIN DES ROZIERS, independent director
• Christine COIGNARD, independent director
• François CORBIN, lead director, independent director
• Nathalie DE LA FOURNIÈRE (CEIR), director
• Héloïse DUVAL, director
• Jérôme DUVAL (SORAME), director
• Tanguy GAHOUMA BEKALE, director
• Jean-Yves GILET, director
• Solenne LEPAGE, independent director
• Manoelle LEPOUTRE, director
• Ghislain LESCUYER, independent director
• Miriam MAES, independent director
• Nicolas NOEL, director representing employees
• Franck PECQUEUX, director representing employees
• Arnaud SOIRAT, independent director
• Romain VALENTY, director appointed by the state
• Jean-Philippe VOLLMER, director

Key statistics

• 12 meetings in 2024
• 44% proportion of independent directors (7/16, excluding employee representatives)
• 44% gender balance (7/16, excluding employee representatives)
• 90% average attendance rate of directors at meetings

The work of the Committees and the Board in 2024

The Board relies on the work of four Committees to carry out its duties. During the 2024 financial year, the work more specifically involved:

Board of Directors

In 2024, the Board of Directors continued to pay particular attention to the implementation of the Group's strategic changes and the monitoring of its strategic growth projects (in particular the start of production of the Centenario lithium plant in Argentina).

CSR and Strategy Committee

10 members, including 3 independent members 4 meetings Chair: Miriam Maes

The Committee assists the Board in determining the Group's strategic lines of action in terms of CSR, in particular by monitoring of the CSR Roadmap and the achievement of its objectives. It reviews developments taking place in the Group's markets and the resulting strategic options. In 2024, together with the Audit, Risks and Ethics Committee, it monitored the preparation of the first report on the Group's sustainability information.

In 2024, the committee, with the support of the CSR and Strategy Committee, paid particular attention to monitoring the preparation of the first report on the Group's sustainability information.

Audit, Risks and Ethics Committee

6 members, including 4 independent members 4 meetings

In addition to monitoring the financial reporting process, the Committee also monitors the main risks and implements the appropriate risk management plans.

Appointments Committee

4 members, including 2 independent members 3 meetings Chair: Ghislain Lescuyer

The Appointments Committee leads the process of proposing new directors for appointment by the Board. The Committee conducts an annual review of the independence criteria for independent directors and of the succession planning for key Group management personnel.

Compensation and Governance Committee

6 members, including 3 independent members 3 meetings Chair: Ghislain Lescuyer

The Committee conducts an annual review of the collective criteria for variable remuneration of management executives and the executive corporate officer. It also proposes the terms and conditions of the performance share award plans for the Group's main management executives.

Our strategic focuses

The Group's strategy has two main focuses: to sustainably support global economic development and to contribute to the energy transition.

With a diversified portfolio of assets and world-class mining deposits, Eramet is well-equipped to deliver premium solutions tailored to the demands of this new era of metals. To uphold its corporate purpose, the Group has established and implemented a strategy aligned with the main macroeconomic trends.

Strategic pillars

Growth in metals supporting global economic development

MANGANESE ORE AND ALLOYS | NICKEL | MINERAL SANDS

Continued global economic development should support growth in the demand for metals related to infrastructure (carbon steel), construction (pigments, ceramics) and consumer goods (stainless steels). The initial focus of the strategy is to expand the Group's activities in these robust markets, for which Eramet boasts world-class assets. The Group supplies high-grade ores, enabling its customers to mitigate their carbon impact, along with manganese alloys, boasting one of the best CO2 footprints in the industry.

Given the calibre of these assets, the growth in these metals will primarily occur through organic growth, by improving the use of current assets and their productivity.

Sustainably develop critical metals for the energy transition

LITHIUM | NICKEL FOR BATTERIES | BATTERY RECYCLING

At the same time, the demand for metals used in electrification (primarily for electric mobility and energy storage), which participate in decarbonising global economies, is seeing exponential growth. The second strategic focus relates to the expansion of the portfolio into metals essential for the energy transition. Leveraging the substantial mineral resources of the Centenario salt flat (Argentina) for lithium and the Weda Bay mine (Indonesia) for nickel, the Group aims to establish itself as a leading player in metals for the energy transition.

Deploy an exemplary responsible approach

In 2024, Eramet's corporate social responsibility was enhanced by a new CSR roadmap called "Act for Positive Mining". At the heart of this initiative lies a vision: to go beyond environmental and social management and foster, wherever possible, a positive impact for the Group's stakeholders and ecosystem, promoting a proactive and responsible approach centred on the continuous improvement of our practices. The roadmap is organised around three ambitions, encompassing all of Eramet's responsibilities and interactions, and is broken down into ten objectives for 2024-2026 and three objectives for 2035.

Creating value via operational excellence

Eramet is deploying the Eramet Production System (EPS) in its subsidiaries to improve the productivity of operations and sustain positive results in terms of safety. The EPS is based on proven techniques for improving operational performance that aim to establish the best operational standards and the adoption of these standards by all employees. The objective is to maximise value creation by making the best use of resources and production tools, and to take full advantage of the Group's leading geological potential.

Business model

Our purpose

Become a reference for the responsible transformation of the Earth's mineral resources for "living well" together.

Our value creation

Employees

• 100% employees covered by the Eramet Global Care social protection agreement
• 71%: employee commitment rate measured in the 2024 survey

Customers

• Major industrial customers in 47 countries
• Deployment of EraTrace (traceability platform) on the mineral sands activity and on the European production of manganese alloys

Suppliers

• Over 150 EcoVadis assessments completed
• More than 55% domestic purchases

Shareholders and investors

• €1.6 billion market capitalisation at 31/12/2024
• Proposed dividend of €1.50 per share for 2024
• €814 million adjusted EBITDA (excluding SLN) in 2024

Local communities and regions

• €16 million: community investment and sponsorship expenses including €11 million for the Group and €5 million for PT Weda Bay Nickel
• €440 million: taxes paid to states and local governments

Environment

• 68% of the electricity consumed in 2024 came from a low-carbon source (renewable and nuclear energy)
• Our biodiversity commitments validated by Act4nature and Business for nature
• 10% reduction in our scopes 1 and 2 CO2 emissions between 2023 and 2024 (2024 carbon footprint: 2.6 MtCO2eq)

Stakeholders

Dialogue with each stakeholder is ensured by the departments responsible for the topics of interest, such as finance, social impact and human rights, sales, public affairs, communication, human resources and ESG performance. These departments are in direct contact with the correspondents and liaise with the various governance bodies through their regular reporting.

Major risks

The risk factors mentioned below were identified in the 2024 risk mapping. A description of these risks and the associated management measures is provided in Chapter 4.5.

Risk management model

The risk management model is founded on dedicated and integrated governance based on the three lines of defence model, and is applied at every level of the business.

Governance Bodies

• Board of Directors
• Audit, Risks and Ethics Committee, Appointments Committee, CSR and Strategy Committee, Compensation Committee, Executive Committee

Three Lines of Defence

1st line of defence

• Operational managers
• Functional managers excluding control functions

Responsible for assessing and reducing risks, in particular by implementing a control system, allowing better control of activities.

2nd line of defence

• Departments responsible for areas of expertise dedicated to organising the risk control system (risk management, internal control, insurance, ethics and compliance, legal etc.)

Responsible for the risk control systems of the various business lines.

3rd line of defence

AUDIT INTERNE

Provide independent, objective assurance for any issue connected with the control of the Group's main processes.

External Assurance Providers

(STATUTORY AUDITORS, OTHERS)

Substances of concern and substances of very high concern

Approach and Methodology

Eramet has undertaken an initial mapping of raw materials and products used in its industrial processes, as part of its commitment to responsible management of the value chain and in compliance with the CSRD directive and ESRS standards. This approach focuses primarily on substances of concern (SoC) and substances of very high concern (SVHC), identified according to European regulatory frameworks.

The company, mindful of changing regulatory expectations and best practices in non-financial reporting, intends to expand this mapping in the coming years. The objective is to gradually expand its scope, in particular by integrating products outside the core business that could be used in secondary applications.

Substances of Concern (SoC)

A substance of concern (SoC) refers to any substance that may have negative effects on human health or the environment, and listed in Annex VI of the CLP Regulation. Appendix II of the ESRS, and more specifically Table 2, defines a substance as any chemical element and its compounds.

From a regulatory point of view, Eramet's finished products contain Nickel (Ni), which meets the criteria for a substance of concern (SoC). However, the Nickel ore present in the Group's operations is not a substance of concern as such, as it is a raw material integrated in a mineral matrix and not in an isolated chemical form. During the extraction phase, the Nickel ore has a low Nickel content (approximately 1%). Then, during the production phase, part of the ore is transformed into Ferro-Nickel (FeNi), used in various industrial applications. Another part of the ore is sold directly to customers in raw form, without further processing.

Nickel is a strategic metal with a wide range of industrial applications, including:

• Batteries and energy transition: A key element in Lithium-ion batteries used in electric vehicles and renewable energy storage. Demand for it is growing strongly with the global energy transition
• Stainless steel: Strengthens resistance to corrosion, essential for construction, infrastructure and automotive industries

As part of the CSRD requirements, Eramet assessed the amount of Nickel contained in ferroalloys and particularly in Ferro-Nickel (FeNi).

Nickel in Ferro-Nickel (SoC) - Quantitative Data

The data for the total quantities of Nickel that leave the Company's facilities in the form of discharge emissions are indicated in the previous section chapter on air and water pollution.

Substances of Very High Concern (SVHC)

Coal Tar Pitch is an essential component of electrodes used in silico-manganese, ferro-manganese and ferro-nickel production furnaces. When used in furnaces, Coal Tar Pitch breaks down, releasing hazardous substances, in particular Polycyclic Aromatic Hydrocarbons (PAHs), in industrial fumes.

Coal Tar Pitch (SVHC) - Quantitative Data

Management and Mitigation Measures

Coal Tar Pitch Management

Eramet is actively working on the continuous improvement of its filtration systems to minimize potential discharges, in particular by:

• Implementing strict measures to limit emissions related to the use of Coal Tar Pitch through advanced filtration systems that capture the emissions generated by the Group's furnaces
• Safely processing and storing dust from filtering to minimize any environmental impact

Aware of the challenges related to the use of Coal Tar Pitch, Eramet is also actively exploring more sustainable alternatives. Tests to replace Coal Tar Pitch-based electrodes with alternatives without this substance have begun in Norway. In 2024, 12% of our electrodes used are Coal Tar Pitch free.

Chemical Management Approach

Consistent with its commitments in terms of environmental and social responsibility, Eramet is committed to replacing substances of very high concern (SVHC) with less hazardous alternatives, while maintaining a high level of industrial performance and safety.

The Group's approach to chemical substances is based on:

• An analysis of the products used, ensuring a detailed understanding
• The proactive integration of regulatory requirements in terms of monitoring occupational exposures and assessing chemical risks, transforming them into a continuous improvement approach
• A life cycle analysis of products to improve understanding and limit the environmental and health impacts related to their transformation and end use

Data Limitations

Eramet acknowledges methodological limitations for substances of very high concern in its first-time ESRS application. The percentage of net turnover generated by products and services that are or contain substances of concern is compulsory for the 2027 reporting and is not yet disclosed.

E5-4 Resource inflows (Incoming resources)

The diagram below provides a simplified illustration of the inflows and outflows of resources at the Group's industrial plants.

Inflow resources mainly consist of:

• Raw materials: mainly ore and reducing agents
• Secondary materials: materials from the circular economy (waste produced by another plant, biofuel, etc.). The recycling by a plant of its own waste and by-products is not taken into account in the calculation.

Determination of inflow resources

The scope used is that of the metallurgical transformation sites. Mining activities are excluded because the purpose of these sites is to supply raw material (manganese and nickel).

The inflow resources taken into account include the raw materials loaded into the furnaces to produce metal alloys (ferromanganese, silicomanganese and ferro-nickel). These materials fall into three main categories:

• Sources of metal consisting of crude ore, sinter ore or rich slag. Manganese and nickel are both on the list of critical raw materials.
• Reducing agents such as coke and coal.
• Additional manufacturing resources required for manufacturing: silicon, chemical corrector (dolomite, magnesia).

Waste and co-products generated by other production sites are considered as inflow resources from the circular economy. The waste/by-products subject to internal recycling are excluded from the scope. The quantities used for the calculation are obtained either by weighing or by means of a material balance.

2024 Results

In 2024, the audit carried out for the Group's processing plants shows that:

This figure is dependent on many factors, such as the metal content of the ore or market opportunities. Thus, with a low metal content (around 2%) and a geographically isolated position (in New Caledonia), which is unfavourable to industrial ecology actions, SLN does not use significant quantities of secondary materials. In contrast, the Norwegian Kvinesdal plant used 41% of secondary inflow resources in 2024 thanks to co-products available locally from other ferro-alloy plants.

Waste

Waste Management Approach

Eramet's decarbonisation strategy includes the optimisation of existing assets and the development of new technologies in partnership with peers, academics and suppliers. The Group's decarbonisation trajectory depends on its ability to develop cross-functional, multi-year structuring projects, including the recovery of plant by-products as provided for in the CSR roadmap.

The Group promotes the circular economy through proper management of waste rock and tailings, ensuring the safety of local residents and employees, minimizing environmental impacts and promoting reuse in a circular economy approach (including water-based tailings). Four projects are being carried out on this subject at GCO, in New Caledonia, at SLN and at Comilog. The Group's roadmap contains targets on these subjects.

Eramet is committed to reducing the consumption of resources required for its activities and promoting eco-design to reduce environmental impacts throughout the product life cycle. This includes preventing the production of waste, in accordance with the waste management hierarchy, recovering waste otherwise, promoting non-toxic life cycles and, where appropriate, properly managing hazardous waste (with the exception of waste rock and tailings). The Group is developing recycling mechanisms that enable more efficient use of resources.

Waste Risk Profile

Potential negative impacts on the environment and the population exist due to a limited or inadequate waste and/or hazardous waste management system or the inability to prevent the generation of waste. Risks are related to waste management and the implementation and/or non-compliance with stricter regulations and standards in terms of the circular economy. However, economic opportunities exist, particularly related to waste reduction, in particular the recovery of plant by-products as provided for in the CSR roadmap.

Mining Waste Management

Potential negative impacts of waste rock and tailings (including aqueous tailings) exist, particularly on the safety of local residents and employees, as well as on the environment. Risks relate to the management of residues and potential accidents as well as the implementation and/or non-compliance of stricter regulations and standards in terms of the circular economy. Economic opportunities are related to the reduction of tailings waste.

Hazardous Materials Management

Potential negative impacts on the environment and the population exist due to a limited or inadequate waste and/or hazardous waste management system. The Group works to ensure the collection, treatment and disposal of waste, reduce, minimize and/or eliminate the quantity and toxicity of hazardous materials used, stored or disposed of, and prevent potential threats to the environment from hazardous waste that present substantial or potential risks to health and the environment.