Sustainability

Climate change

Climate change is a major global challenge that could have significant impacts on operations, host communities, the resources used in production, the economy and society in general. Taking climate change into account and managing GHG emissions are strategic for the design and operation of mines that we want to be resilient, efficient and profitable in the long term. Extreme weather events such as floods and droughts can disrupt operations and damage infrastructure. Reducing greenhouse gas emissions through the use of renewable energy or improving energy efficiency can reduce operating costs and strengthen our resilience to fluctuations in the cost of oil, while contributing to the global decarbonization effort. Additionally, commitment and actions to reduce the GHG emissions associated with transparent disclosure can enhance the company reputation while increasing access to capital.

Governance

Climate change is subject to the same integrated governance structure for sustainability-related risks and opportunities as outlined in our Sustainability Report.

Board Oversight

The Board of Directors approves Fortuna’s climate change policies such as Fortuna’s Climate Change Position Statement and the Company’s GHG emissions reduction target. In addition, the Board of Directors is involved in the approval of the Company’s annual budget, which includes the annual climate change work plan and any related major capital investment projects.

The Sustainability Committee of the Board of Directors, which includes the chairman, the CEO and three other board members, oversees management’s activities in the area of climate change. The Sustainability Committee Charter explicitly includes oversight of climate change factors and climate change is a standing agenda item at each quarterly meeting of the committee. In particular, the Sustainability Committee monitors the implementation of the climate change strategy and annual work plan, ensuring the review of their performance, especially the progress made in achieving the GHG emissions reduction plan.

The expertise of the Board of Directors regarding sustainability demonstrates their understanding of key environmental issues facing a multi-jurisdictional mining company, including climate change risks and opportunities, social performance, community relations, human rights and governance. The areas of expertise of members of the Board of Directors can be found in our Management Information Circular. Additionally, the Board receives quarterly reports on ESG from an external consultant to ensure they remain up to date on the evolving ESG regulatory and voluntary landscape, including on climate change.

Management Accountability

The CEO and the executive team are responsible for setting the Company’s vision, mission and long-term strategies, as well as overseeing operational excellence, and identifying and mitigating risks. The Senior Vice President of Sustainability (SVP Sustainability), who is part of Fortuna’s executive team, is accountable for sustainability matters, including climate change. In particular, the SVP Sustainability is responsible for managing climate-related risks and opportunities, including proposing a climate change strategy to the executive management and Board of Directors, and establishing and implementing policies, action plans, performance review and reporting processes to manage climate-related issues.

The SVP Sustainability is supported by the HSSEC Corporate Committee in the areas of health, safety, security, environment and the community. The first role of the HSSEC Corporate Committee, which includes Fortuna’s executive and management teams, is to ensure the alignment of corporate sustainability policies, frameworks, standards, goals and work plans throughout Fortuna and its subsidiaries. Climate change is a standing agenda item at each quarterly meeting of the HSSEC Corporate Committee. Details of this committee can be found in the Governance section of our Sustainability Report.

At the regional level, to facilitate regional alignment with our climate strategy and monitor the performance of the climate change work plan, our HSSEC Regional Committees in West Africa and Latin America – led by their respective chief operating officers and supported by the Corporate Director of Health, Safety, Environment and Community – convene monthly to discuss regional operations.

At site level, the country heads or general managers manage operational activities related to climate change as well as risks and opportunities. Each subsidiary conducts a monthly operational and sustainability review, which is presented at the corporate level. Subsidiary management participates in reviewing operational progress, sustainability data, and performance against KPIs and targets outlined in the Subsidiary and Corporate Sustainability Work Plan.

Policies and Standards

Our policies, standards, guidance, strategies and plans are available in the Library section of our website. Fortuna’s approach to climate change is mainly guided by the following:

Our Environmental Policy, which articulates our key environmental commitments.
Our Climate Change Position Statement, which articulates our strategy and approach to climate change and key climate-related commitments.

Strategy

Fortuna is committed to analyzing the risks and opportunities of climate change on our business activities, to integrating climate change factors into our long-term strategic planning and developing short-term tactical climate change action plans. Our approach to climate change management is guided by three key pillars, which align with the climate change factors that were identified in the Climate Change Materiality Assessment as having the greatest potential to influence our Company’s value. The three core pillars of our approach:

Reducing GHG emissions by promoting resource efficiency and increasing the use of renewable energy sources.
Building resilience to the physical risks of climate change at our operations and projects.
Continuously improving the performance of our governance and climate change action plans based on climate change science, regulatory and voluntary frameworks, and international standards.

To support this approach, Fortuna expects all its directors, officers and employees to uphold its commitment towards proactive actions regarding the use of renewable energy sources and low-carbon emission technologies, the adoption of efficient and innovative behaviours and solutions, strengthening the awareness and capacities of our teams.

Other key elements of our Climate Change Strategy include implementing a fit-to-purpose governance framework, conducting regular corporate-level climate change materiality assessments, integrating climate-related risks into our Enterprise Risk Management processes, defining clear and achievable targets and aligning climate-related disclosure with recognized international reporting standards.

Risk Management

We conducted a corporate-level Climate Change Materiality Assessment where we assessed the materiality of the TCFD’s climate-related risks and opportunities based on the potential and likelihood for the climate change factor to impact Company value over the short (0 to 1 year), medium (1 to 5 years) or long term (5+ years). Continuing to assess and develop our understanding of how climate change could impact our organization is an important component of our climate change strategy if we want to adapt our decision-making to the evolving business and physical environment. For more details on our latest Materiality Assessment, refer to our Sustainability Report.

In 2023, Fortuna engaged a third-party expert, S&P Global Market Intelligence’s Sustainable 1, to conduct an assessment of the Company’s exposure to key climate-related risks under a range of potential future climate-related scenarios (including a scenario that reflects a high carbon price where global average temperatures are successfully limited to 2°C and a scenario that reflects a significant increase in global average temperatures to 3.3°C–5.7°C). This work was designed to supplement our Climate Change Materiality Assessment that Fortuna undertook and enhance the Company’s understanding of its exposure to its most material climate-related risks and opportunities. All of Fortuna’s operating mine sites were included in the analysis as well as the Diamba Sud Project.

Climate Change Scenario Analysis

The 2023 climate change scenario analysis is based on key assumptions outlined in the following table.

Scenario	Key Assumptions
IEA Net-Zero Scenario (High Carbon Price)	Scenario is expected to result in global average temperatures being limited to 1.5°C by 2100. Assumes that the global economy achieves net-zero emissions by 2050. Assumes the following carbon prices in 2050: Advanced economies with net-zero pledges: US$250/tonne. Emerging/developing economies with net-zero pledges: US$200/tonne. Other emerging/developing economies with no net-zero pledges: US$80/tonne. Other emerging/developing economies: US$55/tonne. Assumes that the energy mix in 2050 will be approximately 90% renewable. Assumes a GDP annual growth rate of 2.6% and a global population of 9.7 billion in 2050.
IEA Stated Policies Scenario (Low-Carbon Price)	The scenario does not result in the goals of the Paris Agreement (i.e., limiting increase in global average temperatures to 2°C) being achieved and expected to result in global average temperatures reaching 2.4°C by 2100. Reflects policies that are actually in place or that have been announced. Assumes the following carbon prices in 2050: Advanced economies with net-zero pledges: US$126/tonne. Emerging/developing economies with net-zero pledges: US$101/tonne. Other emerging/developing economies: US$47/tonne. Countries with no stated policies: US$6/tonne. Assumes that the energy mix in 2050 will be approximately 71% renewable. Assumes a GDP annual growth rate of 2.6% and a global population of 9.7 billion in 2050.
Medium Emissions SSP2-4.5	Scenario is expected to result in global average temperatures rising to 2.1°C–3.5°C by 2100. GHG emissions stabilize at current levels until 2050 and then decline to 2100.
High Emissions SSP5-8.5	Scenario is expected to result in global average temperatures rising to 3.3°C–5.7°C by 2100. Low mitigation scenario where GHG emissions triple by 2075.

Regarding physical risks, our scenario analysis identified eight climate hazards, such as drought, extreme temperatures, and flooding under medium (SSP2: 2.1°C–3.5°C) and high (SSP5: 3.3°C–5.7°C) emissions scenarios. These risks are location-specific, requiring ongoing assessment of asset exposure and resilience.

Type of Risk	Risks	Time Horizon	Description of Potential Financial Impact
Acute Physical Risk	Coastal Flood River Flood Pluvial Flood Tropical Cyclone Wildfire	Short Medium Long	Climate change is expected to continue to cause an increase in the frequency and intensity of extreme weather events. Potential for decreased revenue and increased costs due to operational shutdowns from extreme weather events. Potential for decreased revenue and increased capital expenditures due to damage to facilities, infrastructure and/or critical elements of the supply chain.
Chronic Physical Risk	Extreme Heat Water Stress Drought	Medium Long	Climate change is expected to continue to cause an increase in average global temperatures and cause changes to weather patterns. Potential for decreased revenue and increased costs due to ongoing and/or worsening drought conditions. Potential for increased capital expenditures to build new infrastructure to address resource shortages.

While Fortuna has low exposure to physical risks, drought poses the highest relative risk, particularly at the Séguéla site. Long-term risks remain low, with financial impacts estimated at less than 10% of total asset value. To enhance resilience, we’ve implemented climate change mitigation initiatives across our operations, for more details refer to our Sustainability Report.

Regarding transition risks, we assessed the financial impacts of carbon pricing under various scenarios, finding that Fortuna’s profit margins and earnings remain resilient through 2050. The following table provides an overview of potential impacts of climate-related transition risks and the time horizon over which they may impact our business.

Type of Risk	Time Horizon	Description of Potential Financial Impact
Policy and Legal Risk	Short Medium Long	Mining operations can be energy-intensive and generate significant direct GHG emissions. Potential for increased costs due to carbon pricing, increased expenditures and impacts to earnings due to regulatory efforts to reduce GHG emissions.
Reputational Risk	Medium Long	Evolving public climate change sentiment can negatively impact industry perceptions and threaten the Company’s social license to operate. Potential for additional costs required to increase engagement efforts with stakeholders. Potential for decreased revenue and increased costs associated with delays due to community protests. Potential for increased human capital-related costs due to decreased ability to attract and retain employees. Potential challenges accessing capital and/or adequate insurance.
Technology Risk	Medium Long	Mining companies are increasingly developing and using emerging technologies (e.g., renewable energy, battery storage, data and analytics, energy-efficient technologies, advanced processes). Potential for increased capital expenditures and costs to pilot, adopt and deploy new technologies. Potential for decreased competitiveness if adoption of technology lags industry peers.
Market Risk	Medium Long	Changing consumer preferences and reduced demand for high-emitting products and services. Potential for increased operational costs due to changing input prices of raw materials (e.g., fuel, water).

Regarding climate-related opportunities, Fortuna is well-positioned to leverage emerging opportunities, including new technologies, government incentives, and operational efficiencies, as the global economy transitions to lower-carbon emissions. The following table provides an overview of climate-related opportunities and the time horizon over which they may be available to the Company.

Opportunity	Time Horizon	Description of Potential Financial Impact
Resource Efficiency	Short Medium Long	Achieving greater resource efficiency and lowering operational costs by optimizing transportation, production and distribution processes; ultimately minimizing waste and energy consumption across the supply chain. Improved brand reputation by reducing resource use and minimizing environmental impact, signalling a commitment to sustainability that resonates with customers, investors and other key stakeholders.
Energy Source	Medium Long	Global adoption of clean energy technologies is accelerating as costs fall and storage capabilities improve. Potential to reduce operating and/or compliance costs by using lower-emission energy sources. Reputational benefits from using lower-emission energy sources.
Resilience	Medium Long	Development of adaptive capacity to respond to the physical and transition risks of climate change. Minimize the potential for operational disruptions and capital expenditures due to extreme weather events or changing weather patterns.
Products and Services	Long	Providing low-emissions products and services to meet changing consumer preferences. Potential for increased revenues by capitalizing on growing demand for responsibly produced, low-emissions minerals and metals. Potential for increased revenues by capitalizing on demand for minerals and metals that support the transition to a lower-carbon economy (e.g., copper, nickel, lithium).
Markets	Long	Opportunities to access new funding and financing through public-sector incentives (e.g., low-carbon investment funds) and innovative financing arrangements (e.g., sustainability-linked loans, green bonds). Potential for increased access to capital or reduced costs.

Climate Risk Management

Climate change risks are integrated into our Enterprise Risk Management (ERM) program, ensuring consistent identification, assessment and reporting of risks across all operations. Since 2022, our risk matrix includes climate change considerations, evaluating risks from operational, financial, reputational, social, health and safety, and environmental perspectives.

Our ERM process involves periodic workshops and quarterly interviews with site leaders and corporate functions, including the sustainability team. Risks are assessed using a bottom-up approach, with information flowing from local managers to country heads, regional leadership and senior management. Quarterly risk reports are shared with local, regional and senior management, while the board receives a global risk update.

Our approach to climate risk management considers:

Existing climate regulations in Canada and in the countries where we operate.
Industry guidance (e.g., Mining Association of Canada, International Council on Mining and Metals (ICMM), World Gold Council).
Climate change disclosure standards like Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), and International Financial Reporting Standards (IFRS) S2.
Peer disclosures and emerging regulations, such as the U.S. Securities and Exchange Commission’s (SEC) climate disclosure rules and updates from the Canadian Securities Administrators (CSA) and Canadian Sustainability Standards Board (CSSB).
International standards, including the Intergovernmental Panel on Climate Change (IPCC) and Greenhouse Gas Protocol.

Metrics and Targets

As part of our strategy and commitments contained in our Climate Change Position Statement, Fortuna announced its objectives, metrics and targets concerning its greenhouse gas (“GHG”) emissions reduction pathways in 2024. To this end, Fortuna:

Has set a target to reduce Scope 1 and Scope 2 GHG emissions by 15% in 2030, compared to “business as usual” (“BAU”) forecast GHG emissions in 2030 if no intervention measures were taken.
Is committed to supporting the global ambition of net-zero GHG emissions by 2050 through investing in technology, energy efficiency initiatives and renewable energy over the long term, where such investments are reliable, affordable and competitive.

2030 GHG Emissions Reduction Target

We aim to reduce our absolute Scope 1 and Scope 2 GHG emissions by at least 15% compared to our projected BAU emissions scenario in 2030. Based on our 2022 Life of Mine (LoM) estimates, if no intervention measures were taken, our Scope 1 and Scope 2 emissions in 2030 would reach 136,500 tonnes of carbon dioxide (tCO₂). Our target is to lower this to 116,000 tCO₂, representing a reduction of 20,500 tCO₂ (or 15%). This target will be updated when Fortuna’s assets and their LoM change significantly.

To reach this goal, Fortuna set four priority initiatives at our mine sites:

Mine	Initiative	Outcome
Séguéla, Côte d’Ivoire	Provide renewable energy to the operation.	Construction and implementation of a solar power plant by 2025. GHG emissions expected to decrease by approximately 3,700 tCO₂ per year.
Lindero, Argentina	Provide renewable energy to the operation.	Construction and implementation of a solar power plant by 2025. GHG emissions expected to decrease by approximately 10,820 tCO₂ per year.
Caylloma, Peru	Provide low-carbon electricity to the operation.	In 2022, Caylloma switched to an energy supplier that provides electricity from 100% renewable energy sources. GHG emissions expected to decrease by approximately 8,860 tCO₂ per year.
Caylloma, Peru	Optimization of mine paste fill plant.	Construction and modernization of new paste fill plant will avoid use of truck haulage of tailings for plant feed. GHG emissions expected to decrease by approximately 420 tCO₂ per year.

Through the implementation of these four initiatives, Fortuna expects to be able to achieve a cumulative reduction in GHG emissions estimated at over 160,000 tCO₂ equivalents (“tCO₂e”) between 2022 and 2030 compared to its forecasted emissions.

Long-term Objectives to 2050

Considering the current estimated LoM of its operations, Fortuna is committed to supporting the global ambition of net-zero GHG emissions by 2050 through investing in technology, energy efficiency initiatives and renewable energy over the long term, where such investments are reliable, affordable and competitive. Examples include, where possible, enhancing its low-carbon power supply, fuel switching to use more electricity and/or low-carbon fuels and incorporating demand management strategies and battery storage.

Monitoring, Reviewing and Reporting of GHG Emissions

Fortuna is committed to monitoring the GHG emissions of each of its mines on a monthly basis and to periodically review progress against its GHG emissions reduction target and its pathway, alongside the monitoring of its other sustainability targets. The Company will also monitor and assess its exposure to climate-related risks and opportunities considering the evolving voluntary and regulatory landscape.

The Company’s progress towards reaching its GHG emissions reduction target and forecasts will be reviewed at least annually to ensure the most up to date and accurate information is considered. This includes potential internal factors such as operational changes and business growth, evolving climate-related risks and opportunities, regulatory landscape and market expectations, and other external factors impacting Fortuna’s climate change strategy and commitments.

Reporting on performance will be conducted on at least an annual basis in the Company’s Sustainability Report and on its website or Interactive Analyst Center.