Fortescue Ltd

Lobbying Governance

AI Extracted Evidence Snippet Source

###### Governance

###### 05

###### BUSINESS PROCESS

**DELEGATION OF AUTHORITY**

**CHIEF EXECUTIVE OFFICER**

**EXECUTIVE AND MANAGEMENT**

###### INTEGRATED RISK MANAGEMENT

Fortescue recognises that good corporate governance
is critical to the long-term, sustainable success of the
Company and has established a governance framework
to oversee strategic and financial decisions, approve
policies and programs, monitor the management of risks
and opportunities and report on performance.

Climate change has been identified as a critical, strategic
matter and Board oversight of climate-related issues is
managed through this governance framework.

Our overall approach to corporate governance is
explained in the FY21 Corporate Governance Statement,
available on our website at www.fmgl.com.au

###### The Board of Directors

Our Board of Directors (the Board) has ultimate
responsibility for the oversight and approval of all
strategic, risk management and financial investment
decisions, including climate-related matters. The Board
meets quarterly and receives updates on climate-related
matters, and their impact on Fortescue's business, at
each meeting.

Collectively, the Directors have a diverse and relevant
range of skills, backgrounds, knowledge and experience
to ensure effective governance of the business. To the
extent that any skills are not directly represented on the
Board, they are augmented through management and
external advisors. Specific skills and experience of the
Board include understanding the business challenges,
strategy and options associated with managing the risks
of climate change.

Key climate-related decisions made by the Board during
FY21 include:

- Bringing forward our carbon neutral target date by
10 years to 2030.

- Including climate-related KPIs within executive and
management remuneration arrangements.

- Establishing FFI to lead the global energy transition by
developing a portfolio of renewable energy and green
hydrogen projects.

- Defining our decarbonisation pathway and approving
associated expenditure.

- Setting priorities for the reduction of emissions in our
downstream value chain.

The Board also provides oversight of all investment
decisions, ensuring investments are aligned to our
Values and business strategy. Achieving carbon
neutrality by 2030 will require significant investment.

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By taking a forward-looking strategic position, we are
ensuring that our capital investments in decarbonisation
are aligned with strategic decisions, such as fleet renewal.
All capital investments align with our commitments and
targets, including our target for carbon neutrality by 2030.

Our approach to capital allocation is to target a dividend
payout of 50 to 80 per cent of net profit after tax (NPAT).
We also intend to allocate 10 per cent of NPAT to fund
renewable energy growth through FFI and 10 per cent to
other growth opportunities, including within the iron ore
business and other commodities.

Linking funding to NPAT provides a sound financial basis
for capital allocation and will result in a varying amount
made available from year to year. During FY21, Fortescue
delivered a US$10.3 billion NPAT, with an associated
allocation to FFI of US$1,029 million.

###### Audit, Risk Management and Sustainability Committee

The Audit, Risk Management and Sustainability Committee
(ARMSC) is a Board sub-committee consisting of a
minimum of three non-executive directors, in which the
Chair is an independent director and independent directors
form the majority. The ARMSC is responsible for the
oversight of Fortescue's response to climate change and
provides advice and guidance at each quarterly Board
meeting on:

- Developments within industry and regulatory and market
responses to climate change.

- Fortescue's Climate Change Strategy.

- Climate change risk analysis and associated risk
mitigation strategies.

- Emissions reduction targets and related metrics.

- All climate change and emissions reporting and related
disclosures.

- Results of any audits or reviews related to climate change
and emissions reporting.

###### Remuneration and People Committee

We are committed to reducing our emissions and
relevant measures with stretch targets that are formally
incorporated into our Executive and Senior Staff Incentive
Plan (ESSIP) and Long Term Incentive Plan (LTIP) for our
CEO, executives and other senior leaders including those
working on our decarbonisation program.

In FY21, the Remuneration and People Committee approved
targets intended to drive the delivery of decarbonisation
programs and support our industry-leading objective to
achieve carbon neutrality by 2030 including:

- The reduction of Scope 1 and Scope 2 operational
green house gas (GHG) emissions by at least 3 per cent
annually as a pathway to a 26 per cent reduction from
existing operations by 2030.

- Completion of the Chichester Solar Gas Hybrid Project
and Pilbara Energy Connect (PEC) program.

- Decarbonisation of our mobile fleet and fixed plant.

- The advancement of FFI renewable energy and green
hydrogen projects.

Performance against these targets will be reported annually
as part of Fortescue's annual reporting suite and we will
continue to incorporate carbon emissions targets into our
short and long term incentives with measures and targets
reviewed annually by the Board.

###### Climate Change Committee

At the management level, the Climate Change Committee
(CCC) is responsible for monitoring and coordinating our
overall response to climate change, ensuring opportunities
and risks are proactively managed and considered from a
whole of business perspective. The CEO chairs the CCC which
comprises executives and technical experts from across the
business, including Finance, Environment, Investor Relations,
Sustainability, Risk Management, FFI and Strategic Planning.

The CCC met six times in FY21 and provided updates and
advice to the ARMSC at its quarterly meetings on a range
of issues, including:

- Fortescue's emissions reduction target.

- Implementation of our decarbonisation strategy.

- Capital allocation for decarbonisation projects.

- Development of our offsets strategy and its role in
meeting our targets.

###### Day-to-day management

The management of climate change extends across the
business and incorporates areas including Strategic
Planning, Finance, Sustainability, Asset Management, FFI,
Environment, Investor Relations and Risk Management.

Fortescue's Sustainability and Corporate Affairs team is
responsible for the day-to-day management of climate
change matters, including:

- Monitoring developments in global climate change
policy and the regulatory landscape.

- Supporting the CCC and the business to implement
Fortescue's Climate Change Strategy.

- Participating in climate risk assessments.

- Managing climate change disclosure and contributing to
environmental, social and governance (ESG) assessments.

Other key areas across the business include:

- FFI, working to decarbonise our stationary power
generation and pursuing renewable, green hydrogen
and green ammonia opportunities globally.

- Green Fleet Development, a newly created team focused
on researching and developing technical solutions to
decarbonise our haul trucks, trains and other heavy
mechanical equipment.

- Environment, who monitor and forecast our emissions
and manage our use of offsets.

- Investor Relations, who engage with shareholders,
financial organisations and ratings agencies over a wide
range of issues, including how we are managing climate
change risks and opportunities.

- Marketing, who engage with our customers and facilitate
low emissions solutions in our products and across our
downstream value chain.

- Strategy and Risk Management, who consider our
climate scenarios and their implications for our risks
and opportunities.

https://cdn.fortescue.com/docs/default-source/uncategorised/fy21-climate-change-reportfa28682f-117b-4641-88b7-bc79b35a29f5.pdf?sfvrsn=df8d8b5c_1

### 2.1 Selection of memberships

The relevant Chief Executive Officer (CEO), or nominated delegate, oversees memberships with industry associations and is responsible for approving applications. Several criteria are considered in the selection and approval of new memberships.

Criteria considered in the selection and approval of memberships is described in the table below.

**Selection and approval criteria**

Value proposition Benefits of joining and value to Fortescue.

Policies and public positions Alignment of the association's policies and public positions with our
Values, objectives and policy framework, particularly regarding climate
change, environmental stewardship, sustainability, diversity, human rights,
indigenous employment and community engagement.

Conditions of joining and Internal commitment needed to meet conditions of memberships and
ongoing obligations ongoing obligations or standards.

Members Existing members of the association, reputation and potential risks.

Governance Strong governance demonstrating the association's competency, diversity,
skills and experience.

Management Internal dedicated Executive to manage relationship and obligations.

### 2.2 Annual monitoring

We consider our memberships annually to ensure they continue to provide value and align with our Values and objectives. A full list of Fortescue's memberships held as of 30 June 2023 is provided in Section 4.

Annual monitoring considers alignment with public positions on a range of matters as described in the following table.

### 2.4 Management and policy alignment

The management of each membership falls under the responsibility of the nominated Executive. The nominated Executive is responsible for reviewing the ongoing value of each membership and to assess any potential misalignment in policy position.

Where misalignment is identified, the membership is reassessed according to the criteria outlined in Section 2.1 and must be approved by the CEO or nominated delegate prior to the commencement of the next membership cycle. Where we have a long-standing relationship or determine value in further engagement, we work to influence change rather than walk away. If there is significant misalignment and we are not able to influence or reconcile views, the CEO or nominated delegate may elect to terminate the membership outside the regular membership cycle.

https://cdn.fortescue.com/docs/default-source/corporate-governance/industry-association-reportd67d8852-b0f5-4d87-92bb-f07ae971fe99.pdf

Climate change is a critical, strategic matter and our Board of Directors has ultimate responsibility for the oversight and approval of all climate-related matters. [...] Ensuring our policies and advocacy activities, including engagement with industry associations, aligns with this policy and accelerates the transition towards a zero emissions world. [...] Fortescue's Audit, Risk Management and Sustainability Committee, a subcommittee of the Board of Directors, is charged with the oversight of climate-related matters including implementation and compliance with this policy.

https://cdn.fortescue.com/docs/default-source/corporate-governance/100-po-gh-0003_1.pdf?sfvrsn=89cc8cea_4

Climate change is a critical, strategic matter and our Board of Directors has ultimate responsibility for the oversight and approval of all climate-related matters. [...] Ensuring our policies and advocacy activities, including engagement with industry associations, aligns with this policy and accelerates the transition towards a zero emissions world. [...] Fortescue's Audit, Risk Management and Sustainability Committee, a subcommittee of the Board of Directors, is charged with the oversight of climate-related matters including implementation and compliance with this policy.

https://cdn.fortescue.com/docs/default-source/corporate-governance/climate-change.pdf

###### Governance

Our Board of Directors has ultimate responsibility for the oversight and approval of all strategic, risk management and financial investment decisions, including sustainability and climate-related matters. The Board meets quarterly, receives updates on sustainability and climate-related matters, together with their impact on Fortescue's business, at each meeting.

- The Audit Risk Management and Sustainability

Committee, a sub-committee of the Board is responsible for the oversight of Fortescue's response to climate change and its implementation of the Company's sustainability initiatives.

- The Remuneration and People Committee

responsibilities include overseeing remuneration, diversity strategy, targets, policy and practices including gender pay equity.

At the management level, the Climate Change Committee is responsible for monitoring and coordinating our overall response to climate change and ensuring opportunities and risks are proactively managed and considered. The Sustainability Committee is responsible for implementation of sustainability initiatives and ensuring targets and commitments are met. Both these committees are chaired by the Chief Executive Officer with membership from Executives and Senior Leaders from across the business.

Our Risk Management Framework ensures a consistent approach to the recognition, measurement and evaluation of risks and opportunities, including those related to climate change.

Our latest Corporate Governance Statement and related frameworks and policies, including on climate change and energy, are available on our website: www.fmgl.com.au

https://cdn.fortescue.com/docs/default-source/uncategorised/sustainability-financing-framework_final.pdf?sfvrsn=57ad7159_1

Associations and organisations are assessed against specific criteria before membership is recommended. All memberships require CEO approval. [...] Criteria considered in the selection and approval of memberships: [...] This year we participated in over 50 industry groups and associations, contributing A$1.7 million in fees. Our most significant memberships of FY22 include: [...] Our previous memberships with DomGas Alliance and the New South Wales Minerals Council were discontinued in FY22, as we determined that these organisations were no longer aligned with our policies and public positions. [...] Our FY22 Industry Association Report will be released on 1 October 2022 and will be available at www.fortescue.com

https://cdn.fortescue.com/docs/default-source/announcements-and-reports/2427072-fy22-climate-change-report.pdf

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Our industry association memberships allow us to contribute in a coordinated way to the development of effective policy frameworks and to access information and insights on issues including climate change. During FY21, we participated in over 27 industry groups and associations, contributing USD $577,024 in membership fees. We have listed our top memberships by fee together with our key climate associations below in C12.3b.

Our memberships include state, national and international associations representing mining, extractives and businesses in Australia, many of which have policies that include climate. We engage with associations that help us advance our areas of interest, including climate and energy. Our CEO oversees our memberships and is responsible for approving applications.

Several criteria are considered in selection and approval of memberships:
• Value proposition: benefits of joining and value for money.
• Policies and public positions: alignment of association's policies and public positions with Fortescue's Values and objectives, particularly climate.
• Conditions of joining and ongoing obligations: commitments needed to meet membership conditions and ongoing obligations/standards.
• Members: existing members, reputation and potential risk.
• Governance: strong governance demonstrating the association's competency, diversity, skill and experience.
• Management: dedicated Fortescue representative to manage relationship and obligations.

We consider memberships annually to ensure they continue to provide value and align with our Values and objectives, including our commitment to the Paris Agreement goal of limiting global temperature rise to well below 2°C above pre-industrial levels. In FY21, we took the decision to discontinue our memberships with DomGas Alliance and the New South Wales (NSW) Minerals Council:
• Fortescue has been a longstanding member of the DomGas Alliance. As a result of the increasing gap between Fortescue's position on long-term gas development and that of the Alliance, we withdrew our membership in 2021
• The NSW Minerals Council's continued backing for coal and coal exports does not reflect Fortescue's commitment to climate action. We withdrew our membership to the group effective 30 June 2021.

We do not make political donations to any political party, politician or candidate for public office in any country unless the donation has been approved in advance by the Board.

CDP Questionnaire Response 2022

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

CDP Questionnaire Response 2023

TABLE OF CONTENTS

1 ABOUT THIS REPORT........................................................................................................... 4

1.1 Limitations .............................................................................................................. 4

2 OUR APPROACH TO INDUSTRY ASSOCIATIONS ............................................................. 5

2.1 Selection of memberships..................................................................................... 5

2.2 Annual monitoring ................................................................................................. 5

2.3 Fees ......................................................................................................................... 6

2.4 Management and policy alignment ...................................................................... 6

3 OVERVIEW OF FY23.............................................................................................................. 7

3.1 Five most significant industry memberships by fee .......................................... 7

3.2 Advancements ........................................................................................................ 8

3.3 Policy alignment updates ...................................................................................... 9

3.3.1 FY23 significant differences in policy positions........................................................ 9

3.3.2 FY23 updates in policy positions.............................................................................. 9

3.3.3 FY23 policy alignment review ................................................................................ 10

4 OUR MEMBERSHIPS ........................................................................................................... 11

5 OUR RESEARCH ORGANISATIONS AND PARTNERSHIPS............................................ 23

FY23 Industry Association Report

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1 ABOUT THIS REPORT

This report provides a list of the industry association memberships of Fortescue Metals Group Ltd (Fortescue) and its subsidiaries, and describes how we select, monitor and manage these relationships. This report also provides details of research partnerships and significant research funding.

We are members of a broad range of industry groups and associations, which allows us to contribute in a coordinated way to the development of effective policy frameworks, share best practice and access information and insights on material topics. Participation also provides an opportunity for us to positively influence the association and individual members.

Many industry associations engage in advocacy and lobbying on behalf of members, and we acknowledge the influence these activities can have on policy frameworks. We work to ensure that these actions reflect our own Values and commitments.

Given the nature of membership-based associations and the differing views of members, the policies and commitments of associations may not fully align with our own. Policy alignment is, however, important on critical issues such as climate change, biodiversity and human rights.

We welcome the views of our stakeholders, please forward any comments on this to sustainability@fmgl.com.au

1.1 Limitations

The views and conclusions expressed in this report are those of Fortescue. We have endeavoured to provide a consistent and fair summary of the positions of each association included within this report as well as their alignment with our Values and commitments. The nature of the review necessitates interpretation, judgement and opinion.

This review is largely based on publicly available information such as reports, websites, policy submissions and media sources.

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2 OUR APPROACH TO INDUSTRY ASSOCIATIONS

We define industry associations as organisations that support and protect the rights of a particular industry or trade group and the people who work in that profession. We define membership as one where we have joined as a corporate member and pay an annual subscription fee or dues.

2.1 Selection of memberships

The relevant Chief Executive Officer (CEO), or nominated delegate, oversees memberships with industry associations and is responsible for approving applications. Several criteria are considered in the selection and approval of new memberships.

Criteria considered in the selection and approval of memberships is described in the table below.

Selection and approval criteria

Value proposition Policies and public positions Conditions of joining and ongoing obligations Members Governance Management Benefits of joining and value to Fortescue.

Alignment of the association's policies and public positions with our Values, objectives and policy framework, particularly regarding climate change, environmental stewardship, sustainability, diversity, human rights, indigenous employment and community engagement.

Internal commitment needed to meet conditions of memberships and ongoing obligations or standards.

Existing members of the association, reputation and potential risks.

Strong governance demonstrating the association's competency, diversity, skills and experience.

Internal dedicated Executive to manage relationship and obligations.

2.2 Annual monitoring

We consider our memberships annually to ensure they continue to provide value and align with our Values and objectives. A full list of Fortescue's memberships held as of 30 June 2023 is provided in Section 4.

Annual monitoring considers alignment with public positions on a range of matters as described in the following table.

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Issue Commitment/policy position

Climate and energy We are committed to being a leader in addressing the global challenge of climate change and have set industry-leading targets to achieve Real Zero within our

terrestrial iron ore operations in the Pilbara by 2030, and to achieve net zero

emissions across our value chain by 2040. We expect our industry associations to accept the scientific consensus as assessed by the Intergovernmental Panel on Climate Change (IPCC) and to reflect our commitment to climate action, taking steps to realise the goal of the Paris Agreement.

Human rights We are committed to respecting and promoting the human rights of all people including our employees, the communities in which we operate, those within our supply chains and those who may be impacted by our activities. We expect the same standard from our industry associations.

Biodiversity We take a precautionary approach to environmental management and implement the mitigation hierarchy to avoid, minimise, rehabilitate and offset impacts across all our activities. We aim to achieve a net positive impact on biodiversity.

Innovation and technology Fortescue has transformed the global iron ore industry and will now apply the same innovation, cutting-edge technology and project excellence to transform the global carbon product emitting industry. We select our industry groups and associations to forward our vision of developing technology solutions for hard to decarbonise sectors.

2.3 Fees

Memberships often come with associated fees. Depending on the type or organisation, fees may be a standard charge or based on membership categories, production values or revenue. Membership fees paid in FY23 totalled A$2.0 million. Details of our top five memberships by fee are summarised in Section 3.

2.4 Management and policy alignment

The management of each membership falls under the responsibility of the nominated Executive. The nominated Executive is responsible for reviewing the ongoing value of each membership and to assess any potential misalignment in policy position.

Where misalignment is identified, the membership is reassessed according to the criteria outlined in Section 2.1 and must be approved by the CEO or nominated delegate prior to the commencement of the next membership cycle. Where we have a long-standing relationship or determine value in further engagement, we work to influence change rather than walk away. If there is significant misalignment and we are not able to influence or reconcile views, the CEO or nominated delegate may elect to terminate the membership outside the regular membership cycle.

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3 OVERVIEW OF FY23

During FY23, Fortescue participated in over 70 industry groups and associations, contributing A$2.0 million in fees (ex. GST). Our five most significant memberships of FY23 by fee value (ex. GST), are summarised below. These memberships represent 63 per cent of our total membership spend in FY23.

3.1 Five most significant industry memberships by fee

Chamber of Minerals and Energy Western Australia (CME)………………………………………….A$571,627

The CME is the representative body for the resources sector in Western Australia. It is a member-funded, not-for-profit organisation that leads policy development on issues impacting the sector. It also promotes the value of the sector to the community and provides engagement and collaboration opportunities for members. As a member, we have access to events, publications and the opportunity to participate in committees/reference groups that focus on issues including climate and energy.

Fortescue has also been collaborating in CME's Digital Technologies Program since FY22. This program delivers curriculum aligned content for students in Pre-Primary to Year 10, incorporating online and offline activities to help students build skills in automation and data science through real-world scenario challenges. Our collaboration includes a commitment of $250,604 across 3.5 years in total to contribute together with other CME members to fund the development and implementation of this digital technologies education initiative.

Port Hedland Industries Council (PHIC)……………………………………….…………………………A$380,000

The resources industry in the Pilbara and the economic infrastructure of the port of Port Hedland is critical to economic growth for Western Australia. The PHIC works collaboratively to support the industry of Port Hedland and provides a forum for information sharing to minimise impacts on the community. As a member, Fortescue will continue to invest in the future of Port Hedland and support the community through a range of programs.

Australian Resources and Energy Employer Association (AREEA)……….………………………A$129,000

AREEA is the national representative for Australia's resources, energy and supply industry employers. It is Australia's largest national resources and energy industry employer group. AREEA assists with commercial and operational issues within the sector. Membership provides a network and connection to the industry.

A Fortescue representative sits on the AREEA Board Reference Group (BRG). The BRG is longstanding advisory group, informing policy directions, responses to industry threats and making the industry a better place to invest and employ.

Business Council of Australia (BCA)………………………………………………………………………A$90,000

The BCA supports sustainable economic growth and advocates for policy settings that are in the national interest. They provide a forum for the CEOs of Australia's largest companies to promote economic growth and social progress in the national interest. Members determine works programs and policy positions through participation in committees, task forces and the Board. We remain an active member and participant in BCA's Raising the Bar Project (implementation of Indigenous procurement targets).

Amira Global…………………………………………………………………………………………………….A$70,000

Amira is an independent global not for profit organisation representing members from the resources industry seeking to enhance, sustain and deliver transformational research and development, innovation and implementation to the benefit of society.

Their focus is to build global collaborations between members to solve industry-wide challenges. Through Amira collaborations, members can share and leverage research and development costs and access to intellectual property benefits at a fraction of the cost and reduced risk.

Fortescue is currently participating in two active projects. The first is a technical research project related to mineral exploration for copper porphyry deposits that is co-funded by several industry and research partners (P1249). Fortescue has committed to funding A$50,000 per annum for a total of five years to 2027. The second is the Iron Ore Standards Committee (P1214), supporting Standards Australia to ensure that iron ore standards remain up to date, scientifically rigorous, and aligned with global best practices. The project runs for two years to 2025. Fortescue has committed a total contribution of $47,000 to the project. We attend regular project meetings and are active participants. Results are confidential to the sponsors for three years following the end of the project, unless otherwise agreed.

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3.2 Advancements

We also engage with groups, associations and consortiums that help us advance our areas of interest. In FY23, this included a focus on climate, biodiversity and sustainability.

Taskforce on Nature-related Financial Disclosures (TNFD) Forum

Taskforce on Climate Related Financial Disclosures (TCFD)

CFO Coalition for the SDG's

The TNFD is an initiative aimed at promoting the integration of nature-related risks and opportunities into financial reporting and decision-making. In FY23, Fortescue joined the TNFD Forum to actively contribute to the work and mission of the Taskforce.

We also commenced a pilot assessment for several of our sites, using the LEAP integrated assessment process for nature-related risk and opportunity management. The outcomes of the pilot assessments will contribute to our understanding of nature-related dependencies and impacts for the pilot sites, which include operational iron ore facilities in the Pilbara, the Ivindo Iron Belinga project in Gabon and a US-based green hydrogen project in the early stages of development through Fortescue Energy. The pilot will also inform planning for future disclosures aligned with the TNFD framework, following its completion.

In November 2022, Fortescue became a public supporter of the Taskforce on Climate-related Financial Disclosures (TCFD).

We have aligned our climate reporting with the TCFD recommendations since 2019 to ensure climate-related risk is consistently factored into our investment decisions. We continue to focus on our approach to managing climate risk and are proud to be a public supporter of the TCFD.

Fortescue is a signatory to the United Nations Global Compact CFO Principles on Integrated SDG Investments and Finance, and a member of the Advanced Group of the CFOs Coalition for the SDGs.

In September 2022, our former CFO, Ian Wells, spoke at a panel at the SDG Investment Forum in New York discussing the alignment of corporate investments to UN priorities for SDG investments. Fortescue will again be attending this annual event in September 2023, to be hosted by the New York Stock Exchange.

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3.3 Policy alignment updates

There have been several updates to our industry association memberships resulting from our policy alignment review.

3.3.1 FY23 significant differences in policy positions

No misalignments were confirmed during FY23. Two potential misalignments were, however, identified during the year, with one resolved and one remining under investigation.

Under Investigation

One membership remains under investigation into FY24 for perceived continued advocacy of ill-defined green hydrogen classification. Outcomes of this investigation and subsequent engagement will be detailed in the FY24 Industry Associations Report.

Resolution

One membership was determined to be of value for further engagement. We will continue to work on influencing change rather than walk away. Policy alignment has, however, been updated from "Generally aligned" to "Partially aligned" and is detailed further in the updates below.

3.3.2 FY23 updates in alignment and policy positions

Three status updates were recorded during FY23 as detailed below.

Geothermal Association of Kenya (GAK)

Fortescue is a member of the Geothermal Association of Kenya (GAK) which brings together public and private sector stakeholders to increase national investment in geothermal projects and share industry knowledge. In previous years, Fortescue considered GAK to be "Generally aligned". GAK does not have a strong stance on climate action or the protection of human rights in the renewable energy industry.

During FY23, Fortescue identified a potential misalignment with the association after a member of GAK's Board was linked to a geothermal company accused of violating the principle of Free, Prior, and Informed Consent (FPIC).

Fortescue is committed to respecting and promoting the human rights of all people including our employees, the communities in which we operate, those within our supply chains and those who may be impacted by our activities. We acknowledge and respect the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the human rights principles it upholds, including the principle of FPIC. We expect the same standard from our industry associations.

Following internal investigation, Fortescue can and will use our place within this association to advocate for our position, including our commitment to the principle of FPIC. We will continue to work on influencing change.

For these reasons, Fortescue now considers the GAK to be a "Partially aligned" membership.

The Corporate Tax Association (CTA)

Fortescue is a member of the Corporate Tax Association (CTA). In previous years, the CTA was considered "Generally aligned" with our core business values. Fortescue is now taking a harder stance on climate action such that to be considered "Generally aligned", a membership organisation must now demonstrate a strong commitment to supporting climate action and/or actively supporting progress in other areas of sustainability such as human rights or equal opportunity and diversity. For this reason, we updated our membership with the CTA to be considered "Partially aligned".

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Society of Gas as a Marine Fuel (SGMF)

Fortescue is a member of the Society of Gas as a Marine Fuel (SGMF). SGMF promotes sustainable developments in the marine fuel industry however remains largely supportive of LNG (liquefied natural gas) as a sustainable and competitive fuel source. For this reason, Fortescue has updated its alignment in FY23 to be "Partially aligned" rather than "Generally aligned" as was the case in previous years. We will continue to monitor our ongoing policy alignment.

3.3.3 FY23 policy alignment review

Our membership policy alignment review undertaken in FY23 found that we hold 77 active memberships with industry associations globally as of 30 June 2023. Our review showed that of these memberships, 37 are considered "Generally aligned" to Fortescue's Values and commitments. The remaining 40 are considered "Partially aligned". No memberships are considered as misaligned with our Values and commitments.

Compared to FY22, we have joined as members to an additional 25 Associations, while we have ceased our membership during this year with two Associations. No membership was terminated due to policy misalignment.

Organisations are deemed to be generally aligned where they demonstrate a clear synchronisation with at least one of our areas of interest. For example, we expect our industry associations with a climate policy to reflect our commitment to the Paris Agreement and the goal of limiting global temperature rise to 1.5 degrees Celsius above pre-industrial levels. Three of our five significant memberships are deemed as generally aligned.

Many of our memberships with industry associations are considered partially aligned with our Values and commitments. This reflects the fact that our areas of interest and commitments are varied, as well that many of our memberships are with organisations focused on a specific industry, trade or purpose that does not take a position on such areas. For example, if an association has no stance on climate they are considered as partially aligned. Two of our five significant memberships are considered as partially aligned as they do not have a climate policy in place. We will continue to engage with organisations that are considered partially aligned with our Values and commitments and will continue to advocate for our areas of interest and high-priority issues.

We consider an industry association as misaligned where they demonstrate a policy or stance that is at odds with the future that we as Fortescue are working to build, whether that be through climate action, human rights, biodiversity or technology. None of our industry association memberships were deemed as misaligned during this review.

We remain in communication with all our memberships and will continue to foster good relationships and drive progress in our areas of interest going forward. Full results of our policy review are shown in the membership table in Section 4.

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4 OUR MEMBERSHIPS

Our list of memberships as of 30 June 2023 is provided below. This list does not include those memberships held by non-operated joint ventures or recent acquisitions (none during FY23). We do not include professional bodies, think tanks, non-membership relationships or government initiatives, forums and committees within this list.

♦ GVaelnueersalalyndalcigonmemdiwtmithenotusr ♦ VPaarlutieasllyaanldigcnoemdmwiittmheonutrs ♦ Manisdacliogmnemditwmiethnotsur Values

Association

♦ American Chamber of Commerce in Australia ♦ Amira Global ♦ Ammonia Energy Association

Jurisdiction Purpose

Australia Promotes the development of business relationships between Australian and the United States to facilitate trade, commerce and investment. It provides networking opportunities to connect business, government and industry leaders. AmCham committees and board members develop positions on issues affecting members, including trade, tax, and industry standards.

Engagement

Fortescue is a corporate member.

International Independent global not for profit organisation representing members from the resources industry seeking to enhance, sustain and deliver transformational research and development, innovation and implementation to the benefit of society.

International Represents the full value chain of ammonia energy, dedicated to promoting the use of ammonia as a zero-emission fuel.

Fortescue is a member. We have continue to be involved in two technical research projects across different parts of the business: P1249 Characterising, optimising, and exploring complex orebodies and P1214 MN-002 - Iron Ore Standards Committee. Each co-funded by several industry and research partners. Our sponsorship includes our attendance at meetings during the year, funding for research and access to results, historical research and data.

FFI is a gold member.

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Association

♦ Association of Mining and Exploration Companies (AMEC) ♦ Australasian Railway Association ♦ Australia China Business Council (ACBC)

Jurisdiction Purpose

Australia Australia and New Zealand Australia and China Supports increased exploration, discovery and mining opportunities in Australia. The group is an important advocacy voice for the diverse Australian mining and exploration sector.

Peak body for the rail sector in Australia and New Zealand, and advocates for more than 170 member organisations across the rail industry. Supporting their members on the transition to net-zero by 2050, in line with the Paris Accord.

National not-for-profit membership organisation with branches in every State and Territory. Its purpose is to encourage Australia-China trade investment. Many of their members are exporters to China, have operations in China or are service providers assisting other firms achieve success in Australia-China business. ACBC are the premier bilateral business organisation in Australia dedicated to the Australia-China economic relationship.

♦ Australia Indonesia Business Council (AIBC) ♦ Australia Japan Business Cooperation Committee ♦ Australia Japan Business Council ♦ Australia Korea Business Council ♦ Australian Airports Association Australia and Indonesia Non-profit business association that supports the promotion and facilitation of trade and investment between Australia and Indonesia.

International Promotes and increases business opportunities and strengthens ties between Australia and Japan for the benefit of Members as well as the broader community.

Australia and Japan Australia and Korea Australia Promotes business opportunities and strengthens ties between Australia and Japan for the benefit of its members as well as the broader community.

Supports the commercial success of Australian businesses entering the Korean market and helps members achieve their business strategy in Korea.

National voice for Australian airports and represents interests of more than 330 airports and aerodromes across Australia.

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Engagement

Fortescue is a full member.

Fortescue is a member.

Fortescue is an active member. Our Group Manager China Relations sits on the ACBC WA Executive Committee, Resources Committee and Culture and Media SubCommittee. In FY23, the Chairman of ACBC National spoke at the Boao Forum for Asia which Fortescue is the strategic partner and Senior Business Leaders Forum initiated by Fortescue. Fortescue also participated in ACBC first trip to China in three years (post COVID travel restriction).

FFI is a national corporate member.

FFI is a member.

Fortescue is a corporate member. In FY23, we attended multiple AJBCWA functions to advance business relationships.

FFI is a member.

Fortescue is a member.

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Association Jurisdiction Purpose

♦ Australian Association of Graduate Employers (AAGE) ♦ Australian Business Aviation Association Australia Represents organisations that recruit and develop Australian graduates. It is run by employers for employers. Current membership comprises around 330 employers, including a variety of large and small organisations across a wide range of industries in both the private and public sectors.

Australia Non-profit organisation that was formed to act as a collective voice for the Business Aviation community in Australia.

♦ Australian Hydrogen Council Australia Supports the development of the hydrogen industry, with members from across the hydrogen value chain.

♦ Australian Institute of Management WA (AIMWA) ♦ Australian Pipelines and Gas Association ♦ Australian Resources and Energy Employer Association (AREEA) Australia Provides innovative and industry focused education. (Western Australia) Australia Represents Australasia's pipeline infrastructure comprising of Gas, oil, slurry, water & other products. It promotes interests of pipeline industry and has an important role in research programs & industry standards and guidelines. It is also involved in activities like developments in hydrogen as a fuel. APGA supports a net zero emission future for Australia by 2050.

Australia Assists with commercial and operational issues within the resource and energy sector.

♦ Baltic Exchange International Represents a global community of shipping interests and provides a framework for its members to commit to high standards of business practice.

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Engagement

Fortescue is a full member.

Fortescue holds an Operating Membership.

Fortescue is a corporate member. A Fortescue representative acts as Director and Deputy Chair on the Council.

Fortescue is a Corporate Gold Member.

FFI is a corporate member.

A Fortescue representative sits on the AREEA Board Reference Group (BRG). The BRG is a significant and longstanding advisory group, informing policy directions, responses to industry threats and taking advantage of opportunities to make the industry a better place to invest and employ. A Fortescue representative also sits on the People & Culture Advisory Board.

Fortescue is a member.

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Association

♦ Bell Bay Advanced Manufacturing Zone (BBAMZ) ♦ Business Council of Australia (BCA)

Jurisdiction Purpose

Australia (Tasmania) Supports growth, investment and business diversification in northern Tasmania.

Australia Supports sustainable economic growth and advocates for policy settings that it believes are in the national interest. It provides a forum for the CEO's of Australia's largest companies to promote economic growth and social progress in the national interest.

♦ BusinessNZ Energy Council New Zealand Advocating for a sustainable, affordable, and secure energy system. The BusinessNZ Energy Council (BEC) is a crosssection of leading energy-sector business, government and research organisations taking a leading role in creating a sustainable, equitable and secure energy future. BEC represents the World Energy Council (WEC) in New Zealand. BEC is a brand of BusinessNZ, New Zealand's largest business advocacy body. Together with its members, BEC is shaping the energy agenda for New Zealand and globally.

♦ Canadian Hydrogen and Fuel Cell Association Canada Advances the commercialization of hydrogen and fuel cell technologies in Canada to transition to a net-zero economy by 2050.

♦ Centre for Exploration Targeting (CET) UWA International Multidisciplinary research team that develop innovative technical solutions to address problems in the mineral exploration industry.

♦ CFO Coalition for the SDG's International Addresses the financial gap in meeting the UN SDGs by 2030, re-envisioning the role of CFOs as the architects of long-term sustainable value creation. The Coalition brings together CFOs to accelerate aligning corporate investments with the SDGs.

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Engagement

FFI is a member.

Fortescue is a member. Our CEO is active in our membership and will attend meetings and events throughout the year. Occasionally, attendance will be delegated to other members of our Executive team as appropriate. We remain an active member and participant in BCA's Raising the Bar Project (implementation of Indigenous procurement targets).

FFI is a member.

Fortescue is a member.

Fortescue is a corporate member.

Fortescue is a signatory member. Our former CFO, Ian Wells, spoke at a panel at the SDG Investment Forum in New York, September 2022. Our former GM Sustainability also spoke at the Forum held in Malaysia November 2022.

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Association Jurisdiction Purpose

♦ Chamber of Commerce and Industry of Western Australia (CCIWA) Australia Provides advice and advocates for business on local and national policy frameworks.

♦ Chamber of Minerals and Energy Western Australia Australia (Western (CME) Australia) Contributes to policy development relevant to the mining sector, promotes the value of the sector to the community and facilitates collaboration in Western Australia. CME is an important and united voice for the diverse resource and energy sector in Western Australia.

♦ Clean Energy Council (CEC) Australia Advocates the acceleration of Australia's clean energy transition.

♦ Clean Fuel Ammonia Association Japan and international Seeks to establish a value chain that extends from the distribution of CO2-free ammonia to the use of it, conducting studies on technological and economic assessment, in developing policy proposals, and in promoting international collaboration.

♦ Climate Leaders Coalition Australia Supports the Paris Agreement commitments with members required to set public declaration targets and take voluntary action on climate change.

♦ Committee for Economic Development of Australia (CEDA) Australia Supports a dynamic economy, provision of world class essential services, economic and social participation and opportunity.

♦ Committee for Perth Australia Champions Perth's growth and development. (Western Australia) ♦ Corporate Tax Association Australia Advocates for an internationally competitive and robust corporate tax system where large corporates meet their tax obligations in a timely and transparent manner.

♦ Economic Alliance of Lewis County United States Public-private partnership whose goal is to contribute to the economic vitality of the Lewis County community by increasing the number of jobs and improving the local quality of life.

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Engagement

Fortescue is a member.

Fortescue is an ordinary member. During FY23, we continued to support CME's Digital Technologies Program.

Fortescue is a corporate member.

Fortescue is an associate member.

Fortescue is a member.

Fortescue is an ELEVATE member.

Fortescue is a gold member.

Fortescue is a member company.

FFI is a member.

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Association

♦ Esperance Chamber of Commerce ♦ First Movers Coalition ♦ Flight Safety Foundation ♦ Freight and Trade Alliance Australia ♦ Fuel Cell and Hydrogen Energy Association (FCHEA)

Jurisdiction Purpose

Australia Serves as the voice of private enterprise in Esperance. (Western Australia) International Harnesses purchasing power of companies together with innovative carbon removal technologies to decarbonise seven 'hard to abate' sectors that currently account for 30% of global emissions, including steel and shipping. The First Movers Coalition is a public-private partnership between the US State Department, through Special Presidential Envoy for Climate John Kerry, the World Economic Forum and is supported by the US Department of Commerce. It works across sectors and collaborates with leading climate experts and mission-aligned organizations as a platform to accelerate and scale collective impact.

International Independent, international and impartial non-profit that exists to champion the cause of aviation safety.

Australia Represents the supply chain sector in bringing together importers, exporters, customs brokers, freight forwarders, logistics service providers and industry groups to form an influential advocacy alliance ensuring members are at the forefront of all emerging supply chain issues.

International Represents more than eighty-five leading organizations advancing production, distribution, and use of innovative, clean, safe, and reliable hydrogen energy. For over 30 years FCHEA has provided a consistent industry voice to policymakers and regulators, driving support at the federal and state level. Their educational efforts promote the environmental and economic benefits of hydrogen energy and fuel cell technologies.

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Engagement

FFI is a member.

Fortescue and FFI are a founding member of this ambitious climate initiative and Fortescue has been selected as one of 55 member companies worldwide to join this prestigious Coalition.

Fortescue is a corporate member ('Small' membership category).

FFI is an affiliate member.

FFI is a Principal Member Company.

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Association

♦ Geothermal Association of Kenya ♦ Gladstone Engineering Alliance (GEA) ♦ Global Compact Network Australia (GCNA) ♦ H2 Korea ♦ Hydrogen Council ♦ Hydrogen UK

Jurisdiction Purpose

Kenya Australia (Queensland) National umbrella body bringing together stakeholders in the geothermal sector in Kenya for a common goal. Encouraging, facilitating and promoting coordination of activities related to local and worldwide research, development, and application of geothermal resources. It is a non-political, non-governmental and non-profit organization. GAK is an affiliate member of the International Geothermal Association (IGA).

Links business with opportunity for sustainable growth and diversity for the Gladstone region. GEA is well-established organisation operating since 2003 and is committed in assisting the engineering, manufacturing and supply chain services within the Gladstone Region to meet world best practice for its skills, proficiency, capability and quality of work.

Australia Australian, business-led network of the UN Global Compact. As the principal sustainability initiative in Australia, the UNGCNA brings together participants of the UN Global Compact, including several of Australia's leading companies, civil society organisations and universities to advance responsible business and the private sector's contribution to sustainable development.

South Korea Leading advocate for the development of a low-carbon hydrogen economy in Korea and globally. It functions to bring together government and private sector to expand hydrogenrelated industries, improve policies and advance industry knowledge.

International Advocates a long-term ambition for hydrogen to foster the clean energy transition for a better, more resilient future.

United Kingdom Committed to supporting the development of hydrogen solutions and the transition to Net-Zero through a collaborative approach.

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Engagement

FFI is a corporate member. In June FY23, FFI presented at the GAK Annual General Meeting among attending various other events hosted by GAK throughout the year.

FFI is a member. In FY23, FFI received the Gladstone Engineering Innovator Award for demonstrating innovation in seeking out new business opportunities, improvements, efficiencies and technological development. Fortescue has presented at the annual conference for the past two years and will be presenting again in September 2023.

Fortescue is a business participant and a member of GCNA's Modern Slavery Community of Practice (COP). We also participated in GCNAs SDG Ambition Business Accelerator, Business and Human Rights Accelerator, and Climate Accelerator during FY23.

FFI is a member.

Fortescue is a supporting member.

Fortescue is an Executive member.

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Association Jurisdiction Purpose

♦ IChemE Safety Centre (ISC) International Not-for-profit multi-company subscription-based industry consortium focussed on improving process safety. They share, analyse and apply safety-related thinking.

♦ Infrastructure New Zealand New Zealand Advances best practice development of world-class transport, energy, water, telecommunications, and social infrastructure for all New Zealanders.

♦ International Hydropower Association (IHA) ♦ Kenya Private Sector Alliance (KEPSA) International Advances sustainable hydropower.

♦ KCahrarmatbhear&ofDCisotmricmtserce and Industry (KDCCI)

Australia (Western Australia) Supports and promotes economic growth and development in the Karratha region through advocacy, networking, business support, events and workshops and community engagement.

Kenya Apex organisation for the private sector in Kenya. It brings together local and foreign business associations, chambers of commerce, professional bodies, corporates from multinational companies, medium, SMEs, and start-ups from all sectors of the economy to enable them to speak with one voice when engaging government, development partners and other stakeholders.

♦ Launceston Chamber of Commerce (LCC) ♦ MakeUK Australia (Tasmania) United Kingdom

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Leads business efforts to grow existing industries, recruit new companies and develop an active entrepreneurial environment to create quality jobs and a diverse economy.

Represents manufacturing organisations in the United Kingdom, providing business support, industry insights, and driving change to improve sustainability practices in manufacturing and support the transition to net-zero.

100-RP-AD-0032 Fortescue is a corporate member.

Engagement

FFI is a member.

FFI is a member.

Fortescue is a corporate member.

FFI is a corporate member.

FFI initiated a green hydrogen subsector board within the energy sector board and co-chairs alongside a second company in Kenya.

FFI has led discussions and actively participate in the development of a green hydrogen strategy for Kenya financed by the European Union.

KEPSA members have contributed to FFI's local content studies that will inform a local content plan in Kenya.

FFI is a member.

Williams Advanced Engineering, a Fortescue company, is a member.

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Association

♦ Mineral Deposit Research Unit at the University of British Columbia ♦ Namibia Green Hydrogen Association (NamGHA) ♦ National Association of Women in Operations (NAWO) Newman Chamber of ♦ Commerce and Industry (NCCI) ♦ New Zealand Hydrogen Council (NZHC) ♦ Noongar Chamber of Commerce and Industry

Jurisdiction Purpose

Canada Focused on solving mineral exploration-related problems and training highly qualified persons. A collaborative joint-venture between the minerals industry and The University of British Columbia, corporate members benefit from research, training and education to contribute to a smarter and more successful industry.

International Provides a platform for private sector entities to engage with each other as well as with the Government of the Republic of Namibia (GRN). Guides the sustainable development of the industry and associated legislation and regulatory framework. Promotes local job creation and associated regional economic development.

Australia Advocates for gender balance. It is the leading national network for women in operations, actively led and resourced by an inclusive multi-industry community of industry professionals and an experienced executive team.

Australia (Western Australia) Business and innovation hub to foster innovation and development pathways across the Pilbara and beyond.

New Zealand Supports a low emissions future using renewable hydrogen as an integral part of New Zealand's evolving energy needs.

Australia (Western Australia) Business advocacy group for Aboriginal owned businesses in Western Australia. They support contact between Aboriginal owned businesses and the broader WA business community. Their mission is to build the economic capacity and wealth of Aboriginal people.

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Engagement

Fortescue is a corporate member and in FY23, remain sponsors of a project looking at better ways to explore for one particular style of copper deposit that accounts for the majority of global copper production and inventory. Sponsorship of the project amounts to $30,000 per annum. This project commenced 1 July 2022.

FFI is a member.

Fortescue is a corporate member.

Fortescue is a member.

FFI is a member. A Fortescue representative acts as a Director on the Council.

Fortescue is an associate member and corporate partner.

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Association

♦ Onslow Chamber of Commerce and Industry (OCCI) ♦ PIANC - World Association for Waterborne Transport Infrastructure ♦ Port Hedland Chamber of Commerce and Industry (PHCCI) ♦ Port Hedland Industries Council (PHIC) ♦ Ports Australia ♦ Pride in Diversity

Jurisdiction Purpose

Australia (Western Australia) Promotes the interests of its members in the business community and provides a range of services to generate positive outcomes for commercial and professional organisations. Through the endeavours of the Chamber and its members, it encourages cooperation to benefit the interests of the wider community and secure positive outcomes for the town of Onslow.

International Provides technical guidance for a sustainable waterborne transport infrastructure to ports, marinas and waterways. PIANC membership is worldwide and open to everyone.

Australia (Western Australia) Voice for business and industry in Port Hedland. The group is an a-political, independent association with a powerful business network of more than 400 members.

Australia (Western Australia) Provides a forum for information sharing to grow industry and minimise the impacts on the Port Headland community.

Australia Peak body representing the Port sector and associated maritime services in Australia. Ports Australia runs crossfunctional working groups to bring together professionals, government and industry to discuss emerging issues and best practice. This informs learning, policy advocacy, and opportunities to improve trade, build skills, and develop a more sustainable Port industry.

Australia Employer support program for LGBTQ workplace inclusion specialising in HR, organisational change and workplace diversity. Pride in Diversity publishes the Australian Workplace Equality Index (AWEI), Australia's national benchmarking instrument for LGBTQ workplace inclusion from which Top Employers for LGBTQ people is determined.

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Engagement

Fortescue is a member.

FFI is a corporate member.

Fortescue is a member. In FY23, Fortescue sponsored the Aboriginal Business Award at the PHCCI Business Excellence Awards 2023.

Fortescue is one of eight members of the PHIC. As a member, Fortescue will continue to invest in the future of Port Hedland and support the Port Hedland community through a range of programs.

Fortescue is an associate member. In FY23, we attended multiple working groups hosted by Ports Australia including Engineering and Asset Management, Logistics, Port Operations, Port Security, and Work Health and Safety.

Fortescue is a corporate member. Fortescue representatives attend quarterly member round table meetings and networking events with other PID members, has access to downloadable resources, attends periodical hosted webinars related to LGBTQIA+ days of significance and has access to a relationship manager who provides 6 hours of facilitation/advice sessions.

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Association Jurisdiction Purpose

♦ Race 2 Zero Coalition International Rallies leadership and support from businesses, cities, regions, investors for a healthy, resilient, zero carbon recovery that prevents future threats, creates decent jobs, and unlocks inclusive, sustainable growth.

♦ Rail Industry Safety and Standards ♦ Society of Gas as a Marine Fuel (SGMF) ♦ South Australian Chamber of Mines and Energy (SACOME) ♦ South Australian Hydrogen Hubs Incorporated (SA-H2H) ♦ Supply Nation Australia and New Zealand Supports and works hand in hand with the Australian and New Zealand rail industry to provide the essential tools rail organisations need - good practice Standards, Codes of Practice, Guidelines and Rules.

International Promotes safety and industry best practice in the use of gas as a marine fuel.

Australian (South Australia) Leading advocacy organisation for the resources sector in South Australia. It contributes to policy development relevant to the exploration and mining sector, promotes the value of the sector to the community, and facilitates collaboration between industry, the service sector and government in South Australia.

International Not-for-profit multi-company subscription-based industry consortium focussed on improving process safety. They share, analyse and apply safety-related thinking.

Australia Supports the development of policies that encourage spend with the Indigenous business sector.

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Engagement

Fortescue and FFI formally joined the UN Race to Zero Coalition ahead of the 2021 COP26 climate summit in Glasgow. Following a stringent due diligence process to be approved as a signatory for The Climate Pledge and to become a member of the UN Race to Zero, Fortescue is one of the only major mining companies in the world to meet the criteria for approval.

Engagement with the Race 2 Zero Coalition is concentrated at UN events including Climate Week at the UN General Assembly and the annual COP assembly organized by the UNFCCC.

Fortescue is a member.

FFI is a member.

Fortescue is a member. A Fortescue representative sits on the SACOME Council.

FFI is a member.

Fortescue is a member.

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Association

♦ Sustainable Markets Initiative (SMI) - Hydrogen Taskforce ♦ Taskforce for Nature Based Financial Disclosures Forum (TNFD Forum) ♦ Tasmanian Minerals, Manufacturing and Energy Council (TMEC).

♦ The Australian and New Zealand Chamber of Commerce in Japan ♦ The Climate Pledge

Jurisdiction Purpose

International Business leaders have formed a Taskforce as part of the Sustainable Markets Initiative (SMI) to support accelerating the deployment of hydrogen as one of the decarbonization tools critical to achieving global net-zero emissions.

International Developing and delivering a risk management and disclosure framework for organisations to report and act on evolving nature-related risks.

Australia (Western Australia) Promotes the development of sustainable exploration, extraction and processing, energy, advanced manufacturing and associated supply chain sectors within Tasmania.

International Independent, non-profit organisation that has been dedicated to the development of commerce between Australia, New Zealand and Japan since 1972.

International Co-founded by Amazon and Global Optimism in 2019, the climate pledge is a commitment to achieving Net-Zero carbon by 2040 with over three hundred signatories.

♦ The Fertiliser Institute International Leading representative of the fertiliser industry in the United States. TFI functions primarily to advocate for fair regulation and legislation, to share industry knowledge and insights, and promote initiatives for environmental stewardship.

♦ Voluntary Principles Initiative International Multi-stakeholder initiative that promotes the implementation of a set of principles that guide companies on providing security for their operations while respecting human rights. Comprised of governments, key international NGOs, and companies in the industries of extracting, harvesting, developing natural resources, or energy, members strengthen their capacity to address complex security and human rights issues in business operations around the world.

♦ Washington State Green Hydrogen Alliance (WGHA) International Working to ensure families and businesses benefit from an affordable, zero-carbon alternative fuel source made in Washington State.

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Engagement

Fortescue is a supporting company and our representative sits on the Taskforce.

Fortescue is a member.

FFI is a member.

FFI is a Sliver Member.

Fortescue is a signatory. As part of our Pledge commitments, we publish and annual Climate Change Report to measure and report out greenhouse gas emissions on a regular basis.

Fortescue is a recent member. Onboarding will take place in FY24.

Fortescue is an Engaged Member.

FFI is a member.

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5 OUR RESEARCH ORGANISATIONS AND PARTNERSHIPS

We are actively collaborating for commercialisation of the technologies required to decarbonise our operations, create green hydrogen and green ammonia, and are applying these solutions across hard-to-abate sectors such as shipping and iron and steel production.

Given the considerable challenge in achieving these goals, we have initiated a range of partnerships with research organisations, not for profit organisations and consortiums to accelerate this work. We also fund research for other key areas of interest, including biodiversity and environmental stewardship. A selection of our partnerships during FY23 is provided below.

In FY23, we contributed over A$10.5 million to science and technology research and over A$4.6 million to biodiversity and conservation research. The below table documents these partnerships for FY23. We consider all our research organisations and partnerships for FY23 to be generally aligned with our Values and commitments.

♦ GVaelnueersalalyndalcigonmemdiwtmithenotusr ♦ VPaarlutieasllyaanldigcnoemdmwiittmheonutrs ♦ Manisdacliogmnemditwmiethnotsur Values

Organisation Jurisdiction Purpose

Selection of agreements and partnerships (focus: climate and human rights action)

♦ Arctic Circle Foundation Inc Iceland, International Icelandic non-profit. The 2023 Arctic Circle Assembly will take place in October 2023, with 2000 participants from 60 countries. Attendance will provide key networks for FFI to develop Nordic projects, with FFI having attended in 2022.

♦ CFO Principles on Integrated SDG Investments and Finance International Four principles that supplement the UN Global Compact's 10 Principles and provide guidance to companies as they transition towards sustainable development and seek to mobilize corporate finance and investments to achieving the SDGs.

Engagement

FFI is a global partner, contributing for the purposes of convening the annual Arctic Circle Assembly in Reykjavik, Iceland, and other Forums held globally.

Fortescue is a signatory.

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Organisation

♦ Cooperative Research Centre for Transformations in Mining Economies (CRC TiME)

Jurisdiction Purpose

Australia Focused on mine closure to achieve successful land use transition, CRC TiME brings together over 70 partners across all stakeholder groups who are contributing their networks, time and knowledge to enable change.

♦ Green Hydrogen Catapult International Global initiative whose goal is to drive a massive green hydrogen scale-up by 2026. Launched in 2020 with the convening support of the UN's High Level Climate Action Champions.

♦ Green Hydrogen Organisation (GH2) International Promotes the sustainable production and use of green hydrogen.

♦ Green Hydrogen Taskforce Australia and Germany Australian-German business coalition formed in 2022 to move on green energy through serious investment and working with government to achieve goals together. The Taskforce is a collaborative effort between FFI and leading German energy, industrial, and technology companies including, Covestro, E.ON, Linde, Luthardt, SAP, Schaeffler, thyssenkrupp Nucera, and thyssenkrupp Uhde.

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Engagement

Fortescue is a major participant in CRC TiME. In FY23, we participated in and co-sponsored a number of projects, including research into: increasing bio-available plant nutrients in mineral waste; improved prediction, remediation and closure of acid and neutral metalliferous drainage sites by examination of mine waste behaviour at the meso-scale; practices, techniques and procedures employed to quantify mine closure costs and benefits and associated mine closure risk; and water management associated with open pit mines.

FFI is one of ten members.

Fortescue provides an annual donation. Our Chairman is a founding member and sits on the GH2 Board.

FFI is a partner in this coalition.

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Organisation

♦ H2Global Stiftung ♦ Human Rights Resources and Energy Collaborative (HRREC) ♦ Qlimate ♦ Science Based Targets initiative (SBTi) Sparc Hydrogen ♦ (University of Adelaide)

Jurisdiction Purpose

Germany (International) Australia Double auction mechanism which promotes the European import of Green Hydrogen and its derivatives – e.g., green methanol and green ammonia – from extra-EEA countries. H2Global is now aiming at becoming the "extra-EU import arm" of the European Hydrogen Bank and is having strong political back-up from Germany. This is proved by the growing fund that this mechanism will be managing: after a first auction worth €900 million held at the beginning of 2023, a next tender is being prepared (ideally by the end of 2023) in excess of €3.5 billion.

An additional and parallel function is also supporting the transfer of knowledge through research coordination, Foundation events, and policy advocacy.

Provides a mechanism for mining, energy and resource organisations to share learnings and define best practice.

United States Using quantum computing to develop and scale endto-end climate technologies. Qlimate is building partnerships with governments, non-profits and the private sector to drive innovation and make progress towards achieving net-zero.

International Partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi call to action is one of the We Mean Business Coalition commitments.

Australia (South Australia) Seeks to accelerate net zero emission supply chains through research and development of technologies to produce hydrogen from renewable energy.

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Engagement

FFI was one of the first donors to enter the mechanism. Our engagement is constituted mainly of two streams: (a) advocacy effort and (b) off takers engagement. In the first stream, FFI is trying amongst other things to lose the strict pre-qualification criteria made to facilitate grey hydrogen incumbents. In the second stream, FFI is taking the opportunity of plenary meetings to keep the contact, discuss and aim at signed terms sheet with willing off takers (e.g. Covestro, E.ON, SEFE), as well as to lead the collaboration in joint advocacy efforts (e.g. Covestro, E.ON, Gasunie, RWE, Vopak).

We are a founding member of the collaborative (formerly WAMSC - Western Australia Modern Slavery Collaborative). We have representatives on the Shipping, Supply and Remedy work streams.

FFI was a partner of the program up to May 2023.

Fortescue is committed to the Net-Zero Standard and Business Ambition for 1.5°C.

Joint Venture Partnership.

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Organisation

♦ United Nations Global Compact

Jurisdiction Purpose

International World's largest corporate sustainability initiative. Provides support and guidance to corporations on responsible and sustainable business practices.

♦ TCFD Supporter International Helps companies integrate climate-related risks and opportunities into financial reporting and decision-making.

♦ World Economic Forum International International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas. Forum Partners are leading global companies developing solutions to the world's greatest challenges. They are the driving force behind the Forum's programmes.

Selection of biodiversity and conservation contributions

♦ Harry Butler Institute, Murdoch University (HBI) taxonomic research Australia (Western Australia) The Harry Butler Institute, Murdoch University (HBI) in collaboration with psbrands GmbH, Fürth (Germany) (www.psbrands.de) is developing the Fauna Portal (www.faunaportal.org), an online identification platform that aims to provide a nomenclaturally stable, parataxonomic framework and tools for the identification of undescribed species in Australia, largely invertebrates.

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Engagement

Fortescue is a signatory to the UNGC. We are also an active participant in the Global Compact Network Australia (GCNA) and a member of GCNA's Modern Slavery Community of Practice (COP).

Fortescue is a supporter.

Fortescue is a partner. Fortescue is also a member of WEF's First Mover Coalition. The WEF Annual Meeting 2023 was attended by our Chairman.

Fortescue provides funding.

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Organisation

♦ The Western Australian Biodiversity Science Institute (WABSI)

Jurisdiction Purpose

Australia (Western Support for subterranean fauna research. Australia) ♦ WA Parks Foundation Australia (Western Australia) ♦ Frontier SI Australia (Western Australia) Partnership for biodiversity and connection with nature.

Remote sensing for groundwater-dependant vegetation.

Selection of science and technology development contributions

♦ Australian National University ♦ Commonwealth Scientific and Industrial Research Organisation (CSIRO) ♦ Curtin University ♦ Deakin University Australia (ACT) Seeks to accelerate net zero emission supply chains through research and development of green hydrogen technologies.

Australia Australia's national science agency and innovation catalyst. Seeks to accelerate net zero emission supply chains through research and development of hydrogen technologies, and to accelerate opportunities for low carbon iron ore production through research and development activities.

Australia (Western Australia) Seeks to accelerate net zero emission supply chains through research and development of hydrogen technologies. Also seeks to accelerate opportunities for low carbon iron ore production through research and development activities.

Australia (Victoria) Seeks to accelerate opportunities for low carbon iron ore production through research and development activities.

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Engagement

During FY23, Fortescue continued funding including for the Conservation Systematics of Western Australians Subterranean Fauna: Taxonomy of Subterranean Pseudoscorpions Project 2023-2025. Also co-investment in the Western Australian Biodiversity Science Institute with funding for WABSI to implement research priorities.

Fortescue is a sponsor.

Fortescue provides contributions as part of the Frontier SI Collaborative Research Project that identifies and monitors groundwater-dependent vegetation in the Pilbara region via earth observation data.

Collaborative research and development.

Collaborative research and development.

Collaborative research and development.

Collaborative research and development.

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Organisation

♦ Jupiter Ionics (Monash University) ♦ National Renewable Energy Laboratory (NREL) ♦ University of Western Australia

Jurisdiction Purpose

Australia (Victoria) Seeks to accelerate net zero emission supply chains through research and development of ammonia technologies.

United States Australia (Western Australia) Seeks to accelerate opportunities for low carbon iron ore production through research and development activities.

Seeks to accelerate net zero emission supply chains through research and development of hydrogen technologies. Also seeks to accelerate opportunities for low carbon iron ore production through research and development activities.

FY23 Industry Association Report 100-RP-AD-0032

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Engagement

Collaborative research and development as project partner in Australian Government's Cooperative Research Centres – Project scheme.

Collaborative research and development.

Collaborative research and development.

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DOCUMENT CONTROL

FY23 Industry Association Report

Status IFU - Issued for Use Author Sustainability Team Checked or Squad Review# (if applicable) Squad Check to all relationship managers Holly Knight, Group Manager Environment and Sustainability Approved Todd Clewett, Director External Affairs Access to this document Public (access to all) Next Review Date 30-Jun-24 (if applicable) 28-Aug-23 Signature Signature Signature

FY23 Industry Association Report 100-RP-AD-0032

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Engagement/Advocacy Report