Climate Change Report 2021

1 Climate Change Report 202101 Anglo American plc Climate Change ReportScope 3 emissions Mt CO2e2018: Mt CO2e** 2020 Scope 3 data based on updated methodologyScope 2 emissions Mt CO2e2019: Mt CO2eScopes 1 and 2 goalCarbon neutralby 2040 Scope 3 ambition50%reduction by 2040**on a 2020 baselinePortfolio evolution85%of portfolio focused on future enabling productsDelivered against 2020 target29%reduction of emissions by 2019 against projected business as usual (BAU) emissions(1)Re-imagining mining to improve people s livesTackling Climate Change is the defining challenge of our time Understanding the implications for Anglo American is a significant strategic matter for us.

2 But being resilient as a company is not enough. We understand that mining has a critical enabling role to play in providing the metals and minerals needed for a low carbon world. In this context, we are working actively to be part of the solution to Climate Change , because it is the right thing for the long term sustainability of our business, and also the right thing for Change performanceScope 1 emissions Mt CO2e2019: Mt CO2eOther sources of informationMore information about sustainability at Anglo American, including an Excel download of our sustainability data, business unit sustainability reports, and historical reports, can be found in our Integrated Annual Report and online at.

3 @AngloAmerican/angloamericanplc/AngloAme rican/AngloAmerican/AngloAmerican/compan y/Anglo-AmericanContents02 Our business at a glance04 Chairman s statement05 Chief Executive s statement06 Purpose to Value07 Sustainable mining Plan08 Towards a low carbon future10 Delivering on our commitments13 Our approach to Climate -related risk15 Resilience to a C pathway 20 A strategy to deliver a future enabling portfolio22 A clear pathway to operational carbon neutrality26 Our commitment to decarbonising our value chains31 Supporting our communities through a Just Transition 35 Embedded through rigorous governance38 Disclosures related to the recommendations of the TCFD39 Climate Action 100+ Net Zero Benchmark41 Glossary42 Cautionary statementThis Report provides our stakeholders with transparent disclosure of Anglo American s comprehensive approach to Climate Report is aimed at investors, customers, suppliers, governments, non-governmental organisations (NGOs) and those who work for us.

4 In addition to reporting, we use a variety of tools to ensure that we engage with all interested stakeholder groups on Climate Change . In some cases, individual business unit reports are also published and provide greater detail on performance. These are available on the Anglo American website. The Anglo American Integrated Annual Report and Sustainability Report include additional information about the Group s management, operations, financial performance and sustainable Anglo American chairman and chief executive, and the Board s Sustainability Committee have reviewed this Report , which has been approved by the of the reportThe Climate Change Report covers subsidiaries and joint operations over which the Anglo American Group has management control or acts as operator.

5 It does not include independently managed operations, such as Cerrej n, Collahuasi and Samancor, unless specifically stipulated. It also excludes De Beers non-managed joint operations in Namibia and Botswana from our reporting scope, unless specifically stipulated in the reporting. References to Anglo American plcIn this document, references to Anglo American , the Anglo American Group , the Group , we , us , and our are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons.

6 The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces Groupwide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group, but is not responsible for the day-to-day implementation of such policies.

7 Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses. Cover image General worker Heinrich Strong conducting assessments at the Sishen iron ore mine rehabilitation nursery that was established to cultivate indigenous tree seedlings for planting in rehabilitated mine reporting suiteYou can find this Report and others, including the Integrated Annual Report and Sustainability Report , on our corporate more information, annual-reportingFutureSmart mining To deliver on our Purpose, we are changing the way we mine through smart innovation across technology.

8 Digitalisation and discover more about the future of mining , futuresmart-miningScopes 1 and 2 target30%reduction by 2030**on a 2016 baseline(1) 2020 target was 22% reduction against Anglo American plc Climate Change Report03 Anglo American plc Climate Change ReportOur businessOur businessOur business at a glanceAnglo American is a leading global mining company, with a world class portfolio of mining and processing operations and undeveloped resources, with more than 95,000 people working for us around the world, in 15 countries. We provide many of the essential metals and minerals that are fundamental to the transition to a low carbon economy and enabling a cleaner, greener, more sustainable world, as well as meeting the growing consumer-driven demands of the world s developed and maturing economies.

9 And we do so in a way that not only generates sustainable returns for our shareholders, but that also strives to make a real and lasting positive contribution to society as a more information, see our Tax and Economic Contribution Report CanadaUnited KingdomAustraliaSingaporeSouth AfricaZimbabweShanghaiBotswanaNamibiaBra zilColombiaPeruFinlandChile1112112211515 23 Diamonds Copper Platinum Group Metals Iron Ore Metallurgical Coal Thermal Coal Nickel and Manganese Crop NutrientsProduct groupsNorth America800 employees(2)$61 m wages and benefits paid(3)$6 m taxes borne(4)$77 m local procurement spendChile3,800 employees(2)$381 m wages and benefits paid(3)$490 m taxes borne(4)$1,280 m local procurement spendBrazil3,900 employees(2)$137 m wages and benefits paid(3)$163 m taxes borne(4)$1,021 m local procurement spendSouth Africa44,700 employees(2)$1,628 m wages and benefits paid(3)$1,626 m taxes borne(4)$3,115 m local procurement spendEurope2,400 employees(2)$457 m wages and benefits paid(3)$110 m taxes borne(4)

10 $459 m local procurement spendOther Africa4,500 employees(2)$194 m wages and benefits paid(3)$202 m taxes borne(4)$610 m local procurement spendAustralia/Asia2,800 employees(2)$443 m wages and benefits paid(3)$221 m taxes borne(4)$2,355 m local procurement spendPeru400 employees(2)$60 m wages and benefits paid(3)$9 m taxes borne(4)$1,091 m local procurement spendOur overview video gives a complete introduction to what we do and our ambitions for the page 96 of the Integrated Annual Report 2020 for is for year ended 31 December 2020. 1 Climate Action 100+ The dialogue between Anglo American, the Central Finance Board of the Methodist Church, EOS at Federated Hermes and other supporting investors collaborating under Climate Action 100+ began in early 2018, with regular engagement since.