LI-CYCLE HOLDINGS CORP. Environment | Social | Governance | SASB Index | Contact | ||
Table of Contents
- Sustainability Governance and Management
- ESG Policies, Standards and Management Systems
- Contributing to the UN Sustainable Development Goals
- Looking Ahead
Environment
- Our Approach to Enviornment
- Environmental Stewardship
- Water Management
- Waste Management
- Managing Air and GHG Emissions
- Addressing Climate Change
Social
- Health and Safety in Our Workplace
- Training
- Employee Wellness
- Diversity, Equity and Inclusion
- Community Engagement
- Thought Leadership
Li-Cycle 2023 Sustainability Report
Governance
- Corporate Governance
- Human Rights and Modern Slavery
- Enterprise Risk Management
- Information Management and Cyber Security
- SASB Index
55 Contact Information & Forward-Looking Statements
Building on Li-Cycle's inaugural Interim ESG Report, published in March 2023, our 2023 Sustainability Report provides enhanced details of our environment, social and governance (ESG) performance across our business. It also provides insight into how our ESG principles are integrated throughout our operations and showcases how ESG considerations are woven into our daily activities, guiding our behaviours, and influencing our interactions with all stakeholders.
This report has been developed in alignment with the International Financial Reporting Standards' (IFRS) updated Sustainability Accounting Standards Board (SASB) Standards for Waste Management: 2023 and in consideration of the United Nations Global Compact (UNGC) Sustainable Development Goals.
Page 1
Overview | Environment | Social | Governance | SASB Index | Contact |
We Are Li-Cycle | ||
We Are Li-Cycle
Li-Cycle is on a mission to lead the global supply of recycled critical battery-grade materials for a clean energy future. We are committed to supporting the creation of a domestic closed-loop battery supply chain and contributing to the shift towards global decarbonization.
Sustainability and ESG are foundational to who we are as an organization. Together with our employees around the world, we are delivering solutions that offer a sustainable alternative source for critical battery materials through our innovative and patented Spoke & Hub Technologies™.
Vision
Leading the global supply of recycled critical battery materials for a clean energy future.
Our Values
Safety
Safety is our top priority.
Sustainability
Sustainability is at the core of our business. We are committed to advancing our clean technologies.
Integrity
We operate honestly, embrace diversity, and respect our employees and stakeholders.
Mission
Recycle critical materials to create a sustainable closed-loop battery supply chain.
Agility
We drive innovation and effectively respond to opportunities and challenges to deliver winning results.
Li-Cycle 2023 Sustainability Report | Page 2 |
Environment | Social | Governance | SASB Index | Contact |
We Are Li-Cycle | ||
Li-CycleAt-a-Glance
Key Facts
Li-Cycle was founded in 2016 by
Ajay Kochhar and Tim Johnston
Spoke & Hub Technologies™
Li-Cycle Spokes recycle lithium-ion batteries of all forms, sizes, condition and chemistry, as well as manufacturing scrap, to convert them into black mass, which is expected to be processed at our future Hubs to produce critical battery materials.
Listed on NYSE in August 2021
(NYSE: LICY)
Global Presence: North America,
Europe, and Asia
Operational Spokes1: Arizona Spoke,
Alabama Spoke, Germany Spoke,
New York Spoke
Planned Hubs2: Rochester Hub
- Project development plans for the Norway and the France Spokes are currently under review.
- Construction at the Rochester Hub is paused and project is undergoing a comprehensive review. Definitive Feasibility Study work at the planned Portovesme Hub in Sardinia, Italy is paused and the project is currently under review by Li-Cycle and Glencore.
Step 1
Spokes recycle batteries and manufacturing scrap in submerged shredding process to produce black mass.
Step 2
Future Hubs to process black mass to produce critical
battery materials, including battery-grade
lithium carbonate.
Li-Cycle 2023 Sustainability Report | Page 3 |
Environment | Social | Governance | SASB Index | Contact |
Li-Cycle Operations | ||
Li-Cycle Operations and Projects - Spoke and Hub Network
- Construction of the Rochester Hub was paused in October 2023. Li-Cycle is currently conducting a comprehensive review.
SPOKES (Pre-processing recycling facilities)
Generation 3 | Generation 2 |
• Arizona | • New York |
- Alabama
- Germany
Generation 1
- Ontario (operations paused in November 2023)
FUTURE HUBS (Post-processing refining facilities)
- Rochester Hub (construction paused)¹
- The planned Portovesme Hub project in Sardinia, Italy is currently paused and is under review by Li-Cycle and Glencore.
- The planned Line 2 expansion at the Germany Spoke, as well as the planned Gen-3 Spokes in France and Norway, are currently under review.
- Operations at the Gen-1 Ontario Spoke in Canada were paused in November 2023.
Li-Cycle 2023 Sustainability Report | Page 4 |
Environment | Social | Governance | SASB Index | Contact |
CEO Message to Stakeholders | |||
CEO Message to Our Stakeholders
Ajay Kochhar
President & CEO
Dear Li-Cycle stakeholders, colleagues, and partners,
It has been a dynamic year for Li-Cycle, full of challenges and opportunities alike. While we experienced significant change in 2023, such as the construction pause of the Rochester Hub in late October, our commitment to our core values remains the same. At Li-Cycle, our focus has always been on sustainably recycling and recovering critical battery materials to support the global shift towards electrification.
Sustainability isn't just an element of our business model-it's
engrained in our DNA and is a fundamental part of the overarching purpose that directs our actions and decisions. Our 2023 Sustainability Report reflects this dedication.
In our 2023 Sustainability Report, we detail the progress we've made towards our sustainability objectives over the past year and offer insight into our future priorities. Since our founding in 2016, Li-Cycle has undertaken a sustainability journey. While our business may evolve, our commitment to sustainability will not waver.
Here are some of the key highlights from this year's report:
- Enhanced our robust, integrated, ISO-aligned health, safety, environmental, and quality management system for global implementation across our operations, driving consistency and excellence of our sustainability performance.
- Joined the United Nations Global Compact (UNGC)initiative, a voluntary leadership platform for the development, implementation and disclosure of responsible business practices that reinforces our commitment to sustainable development.
- Implemented a Human Rights Policy, in alignment with International Standards, that formalizes our commitment to upholding human rights, protecting our workers and communities, and ensuring that we adhere to the highest ethical and safety standards in all aspects of our activities.
- Conducted a comprehensive enterprise-wideassessmentto evaluate the risks and opportunities associated with climate change.
- Updated ourVision, Mission and Valuesto better articulate our commitment to safe and sustainable practices.
Li-Cycle 2023 Sustainability Report | Page 5 |
Environment | Social | Governance | SASB Index | Contact |
CEO Message to Stakeholders | |||
- Initiated a review and improvements in our Diversity, Equity, and Inclusion (DEI)programs.
- Launched our first European Spoke facility in Magdeburg, Germany, expanding our responsible battery recycling services more effectively to our global customers.
- Expanded our community engagement and charitable contributionsacross our North American and European operational centres.
- Strengthened our data tracking and reporting capabilities to include enhanced monitoring of environmental, social, and governance metrics, facilitating greater transparency and accountability in our sustainability efforts.
These achievements underscore our shared commitment to sustainability-a commitment that resonates throughout our operations. As the global economy continues its shift towards decarbonization, the demand for sustainably-sourced critical materials for lithium-ion batteries is on the rise, and Li-Cycle is poised to meet this need. Through our global operations and patented technology, Li-Cycle is uniquely positioned to play a pivotal role in the battery supply chain that will drive the global electric future and commitments to net-zero.
To achieve this, we remain focused on investing in environmentally-responsible operations, supported by robust key performance indicators, a commitment to continuous improvement, and a risk-based decision management process that enables us to proactively address challenges and develop solutions in real-time.
At Li-Cycle, we are working to build a better tomorrow, and it's our people who bring this vision to life. Throughout this report, you will see how our teams come together to make a positive impact in the communities where we operate, and how we strive to build an environment where every employee feels accepted, valued, and empowered to succeed.
Thank you for joining us on this journey by exploring this report and learning more about what sustainability means to all of us here at Li-Cycle.
Sincerely,
Ajay Kochhar
President & CEO
Li-Cycle 2023 Sustainability Report | Page 6 |
Our ESG Strategy | Environment | Social | Governance | SASB Index | Contact |
ESG Strategy Overview | Sustainability Governance and | ESG Policies, Standards, and | UN Sustainable Development | Looking Ahead | |
Management | Management Systems | Goals | |||
ESG Strategy Overview
As a leading global lithium-ion battery recycler, Li-Cycle's commitment to sustainability and ESG is at the heart of our business and is operationalized through our integrated HSEQ Management System, with its framework of policies, standards, and procedures.
Our ESG strategy is built upon Li-Cycle'sVision, Mission and Valuesand provides us with a tailored framework to address the Company's existing and future ESG priorities. A main differentiator at Li-Cycle is that sustainability is at the core of our business model, and that sustainable technologies are foundational to our operations.
We have established a comprehensive, integrated, ISO-aligned health, safety, environmental, and quality management system for global implementation across our operations, driving consistency and excellence of our sustainability performance. Our innovative lithium-ion battery recycling technology positions Li-Cycle as a trusted ESG partner in the circular economy. Our "Spoke and Hub" model strategically positions our business to maximize efficiency and reduce emissions associated with transportation distances between operations.
Li-Cycle has achieved significant progress in advancing our ESG strategy in 2023. Based on active engagement with key stakeholders in 2022, we have continued to operationalize our ESG strategy to align with the Company's business strategy, focused on the identified material areas outlined in greater detail in the following section. In this manner, we have been able to progress focused improvements in the areas wherein we have the most potential impact.
Additionally, in recognition of the importance of transparently communicating our performance against globally-accepted frameworks, we have benchmarked the Company's ESG disclosures against the International Financial Reporting Standards' (IFRS) updated Sustainability Accounting Standards Board (SASB) Standards for Waste Management: 2023.
Li-Cycle 2023 Sustainability Report | Page 7 |
Environment | Social | Governance | SASB Index | Contact |
ESG Strategy Overview | Sustainability Governance and | ESG Policies, Standards, and | UN Sustainable Development | Looking Ahead | |
Management | Management Systems | Goals | |||
Li-Cycle's ESG strategy is built upon several foundational pillars:
- Embedded Commitment: We have ingrained a company-wide dedication to ESG and sustainability, seamlessly woven into our core values and policies, and vigorously championed by Li-Cycle leadership.
- Risk-BasedApproach: Our sustainability decision-making is guided by a risk- based methodology, allowing us to proactively address challenges, seize opportunities, and enhance long-term value creation. Notably, we assess climate change-related risks and opportunities in alignment with TCFD principles.
- Robust Management Framework: We employ a strong ESG management and corporate governance framework, ensuring effective oversight and accountability. This framework is informed by a comprehensive understanding of our materiality assessment, identifying key areas for improvement.
- Integrated Management System: Our processes are firmly grounded in a well- established ISO-aligned management system, covering health, safety, environment, and quality (HSEQ), providing a solid foundation for our ESG initiatives.
- Sustainability KPIs: We have established clear sustainability Key Performance Indicators (KPIs) within our corporate objectives, focusing on health and safety, environment, and communities, to drive performance improvements. Key metrics disclosed in this report include Total Recordable Incident Frequency
Rate (TRIFR), scope 1 and 2 GHG emissions, waste, water, and environmental incidents.
Li-Cycle 2023 Sustainability Report
- Commitment to Continuous Improvement: We are dedicated to ongoing enhancement and refinement of our ESG and sustainability approach, continuously striving for improved performance and outcomes. A detailed overview of our ESG strategy is provided in the following pages.
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Environment | Social | Governance | SASB Index | Contact |
Materiality Assessment | Sustainability Governance and | ESG Policies, Standards, and | UN Sustainable Development | Looking Ahead | |
Management | Management Systems | Goals | |||
Materiality Assessment - Identifying our Focus Areas
In 2023, we continued to progress our ESG strategy according to the areas of materiality identified in the 2022 assessment, helping us maintain consistency in our approach while evolving our initiatives.
alignment among internal and external stakeholders, identifying health and safety as the top priority for Li-Cycle. As Li-Cycle evolves as a business, we remain committed to upholding our ESG goals and will conduct future updates of the materiality assessment at a set cadence to reaffirm that material topics and key priorities align with our overall ESG strategy and priorities.
Li-Cycle 2023 Materiality Matrix
Led by third-party consultancy, the 2022 assessment involved extensive consultation with both the Company's internal and external stakeholders. Key stakeholder groups, such as the Board of Directors, executives, employees, advocacy organizations, customers, and investors, were involved in the assessment and provided critical feedback used in the determination of study outcomes.
The materiality assessment encompassed a broad spectrum of sustainability topics, including those identified as core under SASB's Waste Management Industry - Sustainability Accounting Standard. Key topics were thoroughly reviewed and prioritized based on their perceived impact on Li-Cycle's business and the influence they hold over external stakeholders.
Impact on Business
Good Governance
Community Engagement
Emissions | |
Climate | Health & Safety |
Change | |
Employee Wellness |
Waste Management
Labour Standards/Diversity & Inclusion Environmental Stewardship
As shown in the Materiality Matrix, the analysis of internal and external stakeholder responses led to the prioritization of material topics across three categories: crucial risks and opportunities (highly material), strong considerations (material), and topics slated for monitoring due to anticipated increased importance over time (important). The findings revealed consistent
Data Protection & Cybersecurity
Impact on External Stakeholder
Environment | Social | Governance |
Li-Cycle 2023 Sustainability Report | Page 9 |
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Li-Cycle Holdings Corporation published this content on 21 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2024 21:02:31 UTC.
