POWERING the energy transition in a sustainable way
NMG strives to support the transition to a decarbonized world by producing active anode materials for batteries. Our business model is geared toward climate opportunities with a focus on the energy revolution market while integrating high ESG standards that ensure the responsible production, from ore to advanced materials, of environmentally friendly graphite products.
Already carbon neutral, we are working toward attaining Net Zero by 2030, within established boundaries.
We firmly believe that this approach is essential to protect the environment and provide a sustainable future for generations to come.
Maintain our carbon-neutral status and transition to Net Zero by 2030 (scope 1, scope 2 & portion of scope 3).
Target in progress
Design low-carbon infrastructure, deploy our all-electric fleet by Year 5 of Phase 2 of the Matawinie Mine, and adopt clean energy sources and technologies throughout our operation as they become available.
Target in progress
Reduce our Scope 1 emissions intensity relative to the projected base year.
Target in progress
Conduct a life cycle assessment of NMG’s graphite-based materials by 2022 to understand and proactively manage all impacts of our production model.
Target achieved
OUR CLIMATE STRATEGY
Our Climate Action Plan details our approach through key GHG emission reduction measures, an innovative offset strategy, and our commitment to proactive and transparent disclosure.
In line with Paris Agreement targets, NMG intends to ensure the carbon neutrality of its past, present and future operations and achieve Net Zero by 2030 for its direct (Scope 1), energy (Scope 2), and significant indirect (some Scope 3) emissions.
We have put carbon neutrality at the heart of our business strategy. While our ability to maintain a carbon-neutral footprint and market Net Zero products is critical for our market segment, we also seek to proactively manage the social acceptability of our operations, our ability to attract and retain workers, climate risks, and existing and future regulatory requirements.
Source reduction
Clean energy
By leveraging Québec’s clean and abundant hydropower (0.6 kg CO2 eq/MWh, Hydro-Québec, 2021), NMG is committed to adopting renewable energy sources throughout its operations and processes.
Electrification
Responsible mining
We are minimizing land use changes at the Matawinie Mine through the sustainable engineering of infrastructure, tailings co-disposal, in-pit filling, and progressive site reclamation.
Internalized carbon cost
By accounting for negative externalities from GHG emissions in our projects’ development and operations, we can better assess the long-term consequences of our business decisions and move to the adoption of sustainable solutions.
R&D
Evolving in a very effervescent sector, NMG is actively engaged in the optimization of its processes, technological research, and the development of the next generation of battery materials. Close collaboration with universities, governments, technology transfer centers, and industry partners complements our internal R&D efforts to enhance our environmental practices, manufacturing techniques, and product offerings.
Innovative internal management
NMG involves its teams and value chain in minimizing its environmental impact, for example, through sustainable mobility practices and responsible procurement. The Company also promotes a culture of continuous improvement at all levels.
Recycling
We work with battery recyclers to develop effective graphite recycling processes. We plan to eventually include recycled material in our production of anode material to further reduce the environmental footprint of our solutions.
Energy efficiency and sustainable infrastructure
Our technical, R&D and environmental teams work hand in hand to design energy-efficient operations and processes.
Green alternatives
NMG is evaluating and testing the use of bio-based products to replace fossil fuels both in its processes and for transportation and machinery in the lead-up to the deployment of zero-emission solutions.
The mine of the future
The energy transition is accelerating. As demand for battery materials soars, it is time to move into high gear. We are embarking on a journey to re-invent a centuries-old industry and help drive the transition to a sustainable world. Through our collaboration with Caterpillar, we are developing the mine of the future thanks to an all-electric fleet powered by renewable energy. While our graphite materials may be going full circle, we are moving fast ahead.
Proactive offsetting
NMG is committed to maintaining a carbon-neutral footprint alongside its reduction efforts at the source. Our approach sets out the adoption of best practices based on our vision of sustainable development and on material issues for our stakeholders.
Nature-based solutions
We are developing projects using natural methods to absorb carbon dioxide (CO2) from the atmosphere, such as reforestation and ecosystem restoration. Not only is this approach effective in sequestering carbon but it also benefits biodiversity and local communities.
Technological advances
We are also assessing the use of carbon capture and storage (CCS) technologies to develop sequestration projects directly at our operating sites or in partnership with our communities.
Progressive offset strategy
In addition to developing a portfolio of offset projects, our offset strategy involves purchasing credible and verifiable carbon credits from projects that truly help reduce and/or sequester atmospheric carbon. When purchasing carbon credits, our selection criteria prioritize climate and social impacts as well as recognized certification. NMG is committed to implementing this strategy in a diligent and transparent way.
Disclosure and leadership
We believe that being truly transparent about our activities and their impacts is essential. We adopt recognized and stringent accounting protocols to measure our emissions and involve our value-chain suppliers with a significant impact on our carbon footprint.
Our GHG emissions balance and our climate management are disclosed annually through our ESG Report and our CDP disclosure. These reporting mechanisms enable our stakeholders to consult and compare our performance and allow us to establish an accountability structure that drives continuous improvement and ensures correlated compensation.
We also support sectoral initiatives aimed at harmonizing disclosure and bringing about concerted actions in the fight against climate change.
CDP leads a global voluntary disclosure system on environmental impact management, with carbon disclosure as its flagship program. NMG reports its carbon balance, reduction targets and initiatives, as well as its climate resilience since 2022.
NMG fully supports the Mining Association of Canada’s TSM standard, a collaborative program to improve mining practices toward greater sustainability.
NMG is an active member of the GBA, an initiative of the World Economic Forum that aims to establish a circular and sustainable battery value chain. NMG is contributing to the development of the GBA Battery Passport by establishing ESG standards and traceability mechanisms for battery materials and components.
We are also taking part in the Government of Canada’s Net Zero Challenge, which encourages businesses across the country to achieve net zero emissions by 2050. By working with public and private stakeholders, we are helping to meet Canadian and global climate targets.
OUR PERFORMANCE
The success of our climate action is multifactorial. It depends on our individual and corporate efforts, but also on global progress toward decarbonization.
To assess our performance, we measure the commitment of our teams and business partners, our carbon balance, our GHG reduction initiatives, our offset strategy, and NMG’s governance of its climate risks and opportunities.
Leading the industry
An independent life cycle assessment of our graphite materials has shown that NMG’s production is among the cleanest in the world.
Our business model and value-added processing ecotechnologies are set to generate advanced materials with an exceptionally low climate change impact that is up to 11 times smaller than that of benchmarked production.
GWP of NMG’s CSPG
LCA of Natural Graphite-Based Products Manufactured by NMG, CT Consultant, July 2022.
Natural graphite industry
China
14.1 Kg CO2 eq per kg
Mozambique / U.S.
6.1 Kg CO2 eq per kg
Sweden
3.1 Kg CO2 eq per kg
Streamlined Life Cycle Assessment Study of Global Anode Grade Natural Graphite Manufacturing, Minviro, March 2022.
Our climate commitment in action
NMG documents its performance and discloses its results on a range of ESG criteria according to the standards of the Global Reporting Initiative and the Sustainability Accounting Standards Board, in line with the recommendations of the Task Force on Climate-Related Financial Disclosures.
The Company’s ESG Report outlines our management approach in different ESG areas including climate change and details our GHG emissions and offsets through verified carbon credits.
NMG also discloses its climate results through the CDP.
Our annual balance: GHG emissions and offsets
NMG’s annual calculation of GHG emissions includes emissions from the combustion of hydrocarbons and our industrial processes (Scope 1), the use of hydropower for all sites (Scope 2), and emissions from the internal transportation of goods, direct emissions from our subcontractors for project construction, exploration activities, and employee business travel.
In line with its pledge to be carbon neutral, NMG has offset its historical emissions (2012 to 2020) with 2,151 verified emission reduction credits from certified Québec projects that follow best offset practices.
For 2021, NMG purchased 1,600 credits from the Abatolamby project in Madagascar, a solar energy conversion project, certified under the Verified Carbon Standard (VCS), one of the world’s most stringent protocols.
NMG retired 1,229 certified credits from the VCS program to offset its 2022 emissions. The credits are associated with the Ambatolampy solar photovoltaic power plant project in Madagascar, the Rimba Raya Biodiversity Reserve in Indonesia, and the forest plantation on degraded grasslands in the Guanaré Forest in Uruguay.
For its 2023 balance, NMG has purchased 660 VCS-certified carbon credits that support the conservation of 10,614 hectares of boreal forest in Québec’s Abitibi region and forest plantations on 21,298 hectares of degraded lands previously subject to extensive grazing in the Guanaré Forest in Uruguay.
| Emissions | 2012-2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| Scope 1 | 247 | 210 | 267 | 444,2 |
| Scope 2 | 12 | 1 | 2,6 | 4,3 |
| Scope 3 | 1,891 | 1,334 | 959 | 195,2 |
| Subtotal | 2,150 | 1,545 | 1,229 | 644 |
|
Offsets |
– 2,151 |
-1,600 |
-1,229 |
-660 |
| TOTAL | -1 | -55 | 0 | -16 |
In tune with our environment
We prioritize open dialogue to guide, enhance and align our climate efforts. This approach instills sensitivity, resilience and ambition in our business strategy to support our long-term climate performance.
Questions and feedback on NMG’s sustainability efforts are most welcomed; you may contact Julie Paquet, our Vice President, Communications & ESG Strategy.
