Teck has set short- and long-term goals to reduce Scope 1, 2 and 3 emissions.

Our Scope 1 and 2 commitments:

• Achieve net-zero greenhouse gas (GHG) emissions across our operations by 2050.
• Reduce the carbon intensity of our operations by 33% by 2030, compared to a 2020 baseline.
• Achieve net-zero Scope 2 emissions by 2025.

Our Scope 3 commitments:

• Ambition to achieve net-zero emissions by 2050.
• Partner with customers and transportation providers to establish low-emission supply chain corridors for the transportation of our products and support a 40% reduction in shipping emission intensity by 2030 for shipping we contract.

We are evaluating and monitoring a wide range of technologies and implementing emissions reductions solutions to reduce our future cost exposure to increasing carbon taxes and other climate-related risks. Our evaluations include technical and financial considerations and are ranked based on their marginal abatement costs. This approach facilitates the prioritization of options that are the most cost-effective, while balancing cost efficiency with commercial, technological, and execution risk.

Mobile equipment emissions from the combustion of diesel is the largest source of emissions at Teck. Our approach to emissions reductions in this space is broad, including consideration of mature technologies and low-carbon fuels such as renewable diesel that have been developed in industries beyond mining — with consideration given to piloting equipment where use in mining extends the proven capabilities of the technology. In parallel, some solutions that we require are applicable only to mining and may require support from Teck to accelerate development. To accelerate these solutions in a cost-effective manner, we are evaluating and, in some cases, participating in, opportunities to collaborate with other mining companies or equipment manufacturers.

The majority of Teck’s process and stationary emissions originate from our Trail Operations, where the use of carbon is essential for the lead smelting process. Carbon plays a key metallurgical role in metals production and, today, there are limited alternatives. One option Teck is evaluating is the use of carbon capture at our Trail Operations to test the viability of capturing GHG emissions that could eventually be used or stored. The carbon capture pilot project at our Trail Operations’ metallurgical complex operated from late 2023 to Q3 2024. The pilot plant separated CO2 from flue gas at Trail Operations at a rate of one tonne per day.

Teck is also evaluating options for local geological storage of the captured CO2 in the Trail area. Adopting carbon capture and storage at scale will depend on the technical success of the piloting work for capture and storage as well as the overall financial viability of the project. In parallel, Teck is advancing preliminary front-end engineering design (pre-FEED) studies on electrification and low-carbon fuels as alternatives to, or complements to, carbon capture and storage.

Teck’s priority is to pursue emissions reductions at our operations. Where there are limitations in our ability to avoid, eliminate or reduce our Scope 1 and 2 emissions, we will consider the use of offsets to support our GHG reduction targets. Our ambition is to meet our GHG reduction goal by having carbon offsets represent less than 10% of our actions, or less than 100,000 tonnes of CO2e. Only offsets that can demonstrate additionality, rigorous quantification and third-party verification will be considered by Teck. Our evaluations will also consider offset attributes, such as permanence, the risk of leakage, and interactions with environmental and social dimensions of any offset project. Teck will transparently disclose any use of carbon offsets against our GHG reduction commitments.