Whole Life Value Optimization of Boral Quarries slide image

Whole Life Value Optimization of Boral Quarries

Cement - carbon Our focus on reducing carbon emissions to remain domestically and globally competitive Berrima Safe Guard Mechanism response CO2e tonnes per tonne of clinker Safeguard Mechanism (SGM) SGM commenced in 2016, legislated framework that limits the emissions of ~215 large industrial facilities (>100ktpa CO2e), covers -28% of national emissions New legislation and rules commencing 1 July 2023 reduces emission requirements exposing Boral to potential penalties without investment With investment Boral can meet emission requirements. Carbon Border Adjustment Mechanism (CBAM) We believe CBAM is absolutely a must to make true inroads into sustainability in Australia and is a second key side of the same coin as Safeguard Mechanism. The Government recognises that Cement (with Steel) is a hard to abate and trade exposed sector and has committed to seriously consider a Carbon Border Adjustment Mechanism Recarbonation With increased awareness and the recognition of the benefits from recarbonation, our cement business should remain below longer term emission targets ■ Broader understanding and awareness of recarbonation remains a significant opportunity for Boral Source: 1. IPCC, 2021: Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change; 1 0.9 0.8 Safe Guard Mechanism emission requirements Berrima emissions 'do-nothing' 0.7 Gap if 'do-nothing' 0.6 Berrima emissions post investments 0.5 Potential Berrima emissions post investments & recarbonation recognition 0.4 0.3 FY24 FY25 FY26 FY27 FY28 FY29 Recarbonation Annual flux (Gt CO₂ yr¹¹) Annual global cement CO2 process emissions uptake via recarbonation 1920-20191 2 (a) 1.6 1.2 0.8 0.4 0 -0.4 -0.8 Process emission 95% CL Net flux 95% CI Uptake -1.2 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 BORAL Building something great 21 21
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