Announcement PDF Australia’s future in bioenergy and renewables Delorean 2024 ESG REPORT Delorean Corporation Limited ACN 638 111 127 Table of Contents Message from the Executive Chair Company Overview 01 Message from Executive Chair 03 About This Report 04 Our Business 05 Sustainability Highlights FY 2024 08 Case Studies 12 Our Impact Framework Material Topics 13 UN SDGs 17 UNGC 19 TCFD and ASRS Standards Bioenergy 32 Bioenergy - A critical part of the global energy transition GRI Disclosures 35 GRI Content Index 44 Glossary 44 References From its early beginnings, Delorean Corporation was founded on key Environment, Social and Governance (ESG) principles. Pioneering Australia’s diversion of organics from landfill and delivering renewable gas, electricity and heat means that Delorean directly delivers on climate action and the clean energy transition. Delorean’s business is, at its core, truly green. Listing on the ASX in 2021 and now with a pipeline of bioenergy infrastructure projects in development and under construction, we fully embrace ESG as a driver of performance and a guideline for our values. This ESG report articulates our impact framework and highlights our sustainability goals and focus areas. It explains how we are going to achieve our ESG aspirations and how we are measuring our progress. Furthermore, this report demonstrates our continued alignment with the Task Force on Climate Related Financial Disclosures (TCFD) and our ongoing commitment to the UN Global Compact (UNGC) through our Communication on Progress report. With the adoption of Delorean’s first ESG strategy in 2022, we fully embrace ESG principles on our journey to Shaping a Cleaner Future. 45 Appendix 1 - TCFD Index 46 Appendix 2 - Delorean Carbon Footprint Report ESG Report | Delorean Corporation Page 1 Message from the Executive Chair (cont.) FY2024 In Focus At a macro level, there is a critical need for Delorean’s bioenergy infrastructure to support Australia’s environmental targets. Delorean has a pivotal role in meeting the country’s energy security objectives, reducing organic waste sent to landfills, while helping customers reduce their emissions and decarbonise hard to abate sectors. Having set our ESG strategy in 2022, Delorean has continued to progress in FY2024 towards its stated Environment, Social and Governance targets to deliver against our adopted UN Sustainable Development Goals. During the year we achieved a cumulative target of circa 185,000 MWh of renewable energy produced since 2015 with circa 407,500 tonnes of waste diverted from landfill in the same timeframe. Adding to this, in FY2024 Delorean commenced construction of the Yarra Valley Water project – the company’s largest food waste to energy plant to date, which will generate 39000kWh of renewable energy each day and further abate 24,700 tonnes of CO emissions per annum. This project will create jobs, support local and regional businesses and stimulate economic growth in adjacent communities. Importantly, during the year we completed our own Scope 1 & 2 GHG assessment and developed our GHG emissions reduction roadmap. Towards our Social targets, in FY2024 Delorean continued to strengthen our partnerships with local stakeholders and provide a diverse and inclusive workplace, where people feel safe and can achieve their career development goals. Our annual survey reported a 92.3% employee job satisfaction and the company had no high risk workplace incidents during the year. We developed an employee wellbeing strategy and implemented physical site office modifications to increase that wellbeing. Governance remains a cornerstone of our business practices. Delorean has a commitment to transparency and ethical decision-making. In FY2024, we maintained our ISO compliance - safety, environment and quality of our services is at the forefront of everything we do. Looking forward into FY2025, Delorean is experiencing business expansion with new bioenergy construction projects coming onstream and delivering long-term social, environmental, and economic benefits. As Delorean continues to build its workforce by the end of next financial year, we remain committed to creating opportunities for employment, training, and business partnerships with First Nations Peoples. We will continue to progress our ESG targets through FY2025. Hamish Jolly EXECUTIVE CHAIR ESG Report | Delorean Corporation Page 2 About This Report This is the ESG Report from Delorean Corporation Limited (Delorean). The report is produced to provide our stakeholders with a transparent account of how we are adopting and integrating ESG at Delorean Corporation, including a review of the ESG topics deemed most material to our company during Financial Year 2024. This report has been produced based on the organisational boundary of Delorean Corporation and with reference to the following Standards: United Nations Sustainable Development Goals (UN SDGs), UNGC, Global Reporting Initiative (GRI) and TCFD. The 2024 edition outlines the implementation of the Group’s strategy and the actions to share the cleaner future. Delorean acknowledges the Sustainability Disclosure Standards released by the International Sustainability Standards Board (ISSB) in 2023 and the Australian Sustainability Reporting Standards (ASRS) approved by the Australian Accounting Standards Board (AASB) on 20 September 2024. Delorean aims to undertake a thorough review of its sustainability reporting to ensure regulatory compliance and align with best practices in sustainability. ESG Report | Delorean Corporation Page 3 Delorean Corporation Ltd We exist to shape a cleaner future Our Business Delorean Corporation (ASX:DEL) is an Australian bioenergy company, leading the market with commercial production of green energy and in-demand renewable gas. Delorean specialises in the design, build, ownership and management of bioenergy infrastructure and associated power generation and renewable energy retail. Utilising established anaerobic digestion (AD) technology, our facilities process organic waste to generate and monetise renewable energy in the form of electricity, heat and gas. Delorean Corporation is proud to pioneer the development of the bioenergy industry in Australia. Delorean’s anaerobic digestion plants significantly reduce the amount of waste going to landfill, redirecting it towards the production of clean, green energy. Sustainability is at the core of everything we do. Our Footprint Potential * 1.5M tonnes of waste diverted from landfill 970M 3.5M MW of green electricity generated GJ of Green energy generated 135M m3 per annum of biogas produced 1.6M tCO2-e per annum carbon emission avoidance abated through diversion of organics from landfill ~200,000 Equivalent to cars tCO2-e per annum** ~50,000 Equivalent to homes tCO2-e per annum** DELOR EAN IS PROUD TO BE CONTR IBUTIN G TO A SUSTA INABLE AND NET ZERO FUTUR E. ~3.5M trees planted every year** Sustainability impact potential of project pipeline* *Accounts for proposed projects in early-stage engagement / feasibility / development / construction **Based upon 5 most immediate projects in the pipeline (VIC1, SA1, YVW, QLD1 & NSW1) ESG Report | Delorean Corporation Page 4 Sustainability Highlights FY 2024 FY 2024 at a Glance Climate and Emissions Completed Scope 1 & 2 GHG Baseline Assessment Developed a GHG emissions reduction strategy roadmap Continued reporting on renewable energy and renewable natural gas created for individual projects Circularity and Waste Developed partnerships with local feedstock producers to source organic waste for the Company owned infrastructure projects Continued reporting on waste diverted for individual projects AUSTRALIA'S FUTURE IN BIOENERGY & RENEWABLES Local Communities Maintained active communication with local communities Strengthened relationships with key stakeholders to fast-track Delorean’s Bioenergy infrastructure rollout Continued collation of local employment and community reporting metrics Health, Safety and Wellbeing 3 ~185,000 ~407,500 Award winning bioenergy projects completed: Jandakot Bioenergy Plant Blue Lake Milling Bioenergy Plant Ecogas Bioenergy Plant Progress MWh renewable energy produced since 2015 Tonnes reduction in waste sent to landfill since 2015 17 25 92.3 0 Employees Contractors (as of 30 June 2024) (as of 30 June 2024) % employee job satisfaction High risk incidents In Q3 FY2024, Delorean started the construction of the Company’s largest food to waste enegry plant to date: Yarra Valley Water Bioenergy Plant Developed an employee wellbeing strategy Implemented physical office modifications to increase staff wellbeing Continued ongoing investment in employee training and wellbeing initiatives Economic Contribution Facilitated sustainable business growth Continued Research & Development activities across the Bioenergy sector, supporting the energy transition away from fossil fuels. Code of Conduct FY 2024 Financials $27.9M $11.9M $3.1M FY24 Revenue Investment in Construction Projects SA1, VIC1 & Pipeline Wages Paid in FY24 Improved our management systems Continued accreditation compliance ESG Report | Delorean Corporation Page 5 Stakeholders Values and Norms At Delorean, our stakeholders play diverse roles and make varied contributions to the growth and progress of the company. We engage with them regularly in our daily business operations and work towards building strong and trustworthy relationships. Our stakeholder groups comprise of: Our Values Making Seismic Change Growing People We believe that our work is changing the world for the better. We believe in providing the space and mentorship for people to be themselves, and to grow. We challenge the status quo ; We are solutions focused We inspire each other to learn and innovate ; We are open and respectful Sparking Collective Energy Remembering Tomorrow Creating Real Value We believe that together we are boundless, and our unique strengths ignite collective action. We believe in focusing on the future and our purpose, even in tough times. We believe in delivering high impact projects, that are valuable to Delorean and the wider world. We motivate each other ; We work together dynamically We regularly reflect to learn ; We align with short & long term goals We have a disciplined approach supported by effective processes ; We align business units to strategy We listen and communicate openly for common understanding We are present, prepared, engaged and accountable Our Norms We think creatively to meet the collective purpose We consider our impact on our people We are curious and ask questions FY23 Revenue We are authentic 6. ESG Report | Delorean Corporation Page 6 Delorean Corporation Projects Completed Projects Jandakot Bioenergy Plant COMPLETED PROJECTS EPC CONTRACTS DEL's CURRENT PROJECTS 2024 PIPELINE PROJECTS Blue Lake Milling Bioenergy Plant In Construction Ecogas Bioenergy Plant YVW Bioenergy Plant Shovel Ready, Pending FID VIC1 Bioenergy Plant In Development SA1 Bioenergy Plant NSW1 Bioenergy Plant QLD1 Bioenergy Plant WA2 Bioenergy Plant Portfolio Infrastructure Projects Equivalent to planting 3 Million trees every year LONG-TERM DEVELOPMENT PIPELINE* *Indicative per State not geographically identified DELOREAN OFFICES ESG Report | Delorean Corporation Page 7 Case Study Jandakot (Richgro) Location: Jandakot, Perth WA Start Date: November 2013 Completion Date: January 2015 Client: Richgro Garden Products First facility of its kind in Australia to commercially process mass organic waste integrated with a composter Delorean’s Engineering Division (formerly Biogass Renewables) undertook the development, design, build, commissioning and operational support for the Jandakot Bioenergy Plant – processing commercial and industrial organic waste streams to power generation. Delorean handled all approvals from planning through to the Environmental Protection Act requirements, as well as managing grid connection and sale of the renewable power generated on site. Challenge • • Approximately 32,000 tonnes per annum feedstock directed towards landfill Electricity cost $600,000+ per annum Opportunity • • Introduce a bio-fertiliser to blend with Richgro’s existing product range Reduce electricity cost and supply green energy to grid Sustainability outcomes* Commissioned in 2015 65% of electricity generated exported to the grid 64,000 tonnes CO2 emissions reduction per annum Over 100,000 megawatt hours of renewable energy generated to date Over 200,000 tonnes of waste diverted since operation Sub 4 year payback on capital * Delorean will not provide annual updates on the sustainability outcome data pertaining to third-party EPC projects due to the unavailability of readily accessible data within the company. ESG Report | Delorean Corporation Page 8 Case Study Bordertown (CBH) Location: Bordertown, South Australia Start Date: July 2019 Completion Date: September 2022 Client: Blue Lake Milling (subsidiary of CBH Group) This project is the first of its kind in the world to process ground oat milled fines (GOMF) for power production on site, behind the meter Delorean’s Engineering Division undertook the development and design of a grain milling operation bioenergy plant, with Delorean also contracted to complete the build, commissioning, operation and transfer of the facility. Delorean handled all approvals from planning through to the Environmental Protection Act requirements, as well as managing grid connection and sale of the renewable power generated on site. Challenge • • • Limited energy supply to mill factory, restricting mill growth Approximately 13,000 tonnes oat waste used as filler in cattle feed Electricity cost $960,000+ per annum Opportunity • • Research opportunity to understand if oat waste can be processed in the biogas plant Reduce carbon emissions and generate consistent green energy supply for CBH Sustainability outcomes* Commissioned in 2022 Excess bioenergy generated from biogas plant could power nearby homes Approximately 21,000 tonnes per annum avoided emissions with the use of biogas plant Over 20,000 MWh green energy generated to date. Over 30,000 tonnes oat waste diverted away from landfill to date Over $1mil increase in income from excess energy supplied to grid * Delorean will not provide annual updates on the sustainability outcome data pertaining to third-party EPC projects due to the unavailability of readily accessible data within the company. 2024 ESG Report | Delorean Corporation Page 9 Case Study Reporoa (Ecogas) Location: Reporoa, New Zealand Start Date: March 2021 Completion Date: June 2023 Client: Pioneer / Ecogas This project is New Zealand's first commercial scale anaerobic digestion plant Delorean’s Engineering Division undertook the development, design and the construction of an organic waste to bioenergy plant. This facility takes food organics from the Auckland City Council collections, with the energy produced supplying a major greenhouse operation. Challenge • • Approximately 75,000 tonnes per annum feedstock directed towards landfill High heating and CO2 costs for the greenhouse operation Opportunity • • Reduce waste and carbon emissions and generate consistent green energy supply Reduce electricity cost and supply green energy to grid Sustainability outcomes Commissioned in 2023 Over 10,000 MWh green energy generated to date. Excess bioenergy generated from biogas plant will power nearby homes Over 100,000 tonnes organic waste diverted away from landfill to date Approximately 135,000 tonnes per annum avoided emissions with the use of biogas plant Increase in income from excess energy supplied to grid * Delorean will not provide annual updates on the sustainability outcome data pertaining to third-party EPC projects due to the unavailability of readily accessible data within the company. 2024 ESG Report | Delorean Corporation Page 10 Case Study Yarra Valley Water Location: Lilydale, Melbourne VIC Start Date: January 2024 Completion Date: Early 2025 Client: Yarra Valley Water One of the largest food waste to energy facilities of its kind in Victoria to commercially process mass organic waste Delorean Corporation’s Engineering Division is contracted for the design, construction, operation and maintenance of Yarra Valley Water’s (YVW) second food waste to energy plant at Lilydale, Victoria. This new facility will be diverting approximately 55,000 tonnes of food waste from landfill each year and generating over 39,000 Kilowatt hours of electricity per day. Yarra Valley Water’s new Lilydale facility will supply the adjacent sewage treatment plant, and the co-located Recycled Water Pump Station, with surplus energy exported to the grid. Challenge • Yarra Valley Water is striving to transition to 100% renewable electricity and achieve carbon neutrality in 2025 Opportunity • • Facility will accept and process an average of 200m3/day of organic waste using anaerobic digestion. The Lilydale project will help address climate change and the depletion of finite resources like water and energy Sustainability outcomes* Construction commenced in 2024 Surplus energy generated from biogas plant will be exported to the grid ~ 39,000 kWh of renewable energy generated per day ~ 55,000 tonnes of waste diversion per annum ~ 24,700 tonnes CO2 emissions reduction per annum Increase in income from excess energy supplied to grid * Delorean will not provide annual updates on the sustainability outcome data pertaining to third-party EPC projects due to the unavailability of readily accessible data within the company. ESG Report | Delorean Corporation Page 11 Our Impact Framework - Corporate Based on our purpose of, “Shaping a cleaner future,” our impact framework is centered on our contribution to the United Nations Sustainable Development Goals. Our ESG Focus Areas Delorean is using the criteria below to evaluate the company's sustainability and ethical practices. Our ESG Pillars Our Purpose “Shaping a cleaner future” Human Capital Natural Capital Emissions, energy efficiency, waste Social Capital Environment Our Vision Our Mission To build, own and operate the largest portfolio of commercially successful renewable energy infrastructure in Australia and New Zealand, measured by the value of developed assets and quantity of renewable electricity, heat and gas produced. Governance Business Ethics & Code of Conduct Board diversity & governance Risk mitigation Stakeholder engagement Economic contributions Employees, contractors To be recognised as Australia and New Zealand’s leading emerging renewable energy generator and retailer, led by our fast growing bioenergy infrastructure footprint. Material Topics Communities, suppliers, clients Intellectual Capital Technology, innovation Sustainability at Delorean Constructed Capital Delorean’s projects produce renewable energy whilst reducing the volume of waste going to landfill. Our business is built upon technology that is carbon neutral. Financial Capital DEL Bioenergy Plants Revenue, EBITDA Climate action Renewable energy Waste management Greenhouse gas (GHG) emissions Climate risk Emergency preparedness Social Diversity, inclusion, gender Health & safety Workforce wellbeing Community relations Supply chains Job creation WASTE CLIMATE 56% of Australia’s total greenhouse gas emissions are the result of energy generation and organic waste (1) 7.6 Million tonnes of food across the supply and consumption chain wasted every year, at a cost of $36.6 billion annually (2) ESG Report | Delorean Corporation Page 12 UN SDGs Tracking Project Impact The UN SDGs provide a powerful aspiration for improving our world and providing a better future for all (3). Developed in 2015, all 193 member states of the United Nations adopted “Agenda 2030.” This is a global plan of action based around 17 interlinked SDGs to achieve a better and more sustainable future for all people and for the world by 2030. As we grow and expand our footprint of company owned and operated bioenergy assets, we are committed to measuring and managing our positive impact on climate and waste at a project level through our Project Impact Indicators (Table 2). Table 2: Delorean’s Project Impact Indicators * As a renewable energy provider, Delorean is positioned to positively impact several of the SDGs. In its 2017 publication, the World Biogas Association estimated that biogas can help solve challenges related to nine of the seventeen Sustainable Development Goals(4) . Delorean has identified our most significant contributions are to four SDGs as outlined in the table below (Table 1). Table 1: Delorean’s contribution to UN SDGs Sustainable Development Goal Delorean’s technology and infrastructure generates renewable green gas, heat, and electricity that powers communities and industry. Bioenergy is a practical, affordable, and direct alternative to other fossil fuel sources. Delorean’s projects support both rural and urban communities and provide the triple benefit of renewable energy, sustainable waste management and organic fertilisers to support food production. Delorean’s solutions provide a practical, scalable, and impactful way for communities and organisations to responsibly deal with organic waste. The energy and fertiliser produced closes the loop on responsible consumption and production. Delorean’s operations generate a reliable, low-carbon source of energy that is a direct replacement for fossil fuels today. Circular waste management also avoids the release of harmful methane emissions from organic waste in landfill. PROJECT IMPACT INDICATOR MEASUREMENT METRIC WASTE RECYCLED/REUSED Waste throughput (feedstock volumes) thousand tonnes p.a. (KTPA) WASTE RECYCLED/REUSED Liquid digestate recycled/reused (landfill avoided) thousand m3 p.a. (KM3PA) WASTE RECYCLED/REUSED Solid digestate recycled/reused (landfill avoided) thousand tonnes p.a. (KTPA) RENEWABLE NATURAL GAS CREATED Renewable natural gas created TJ’s p.a. RENEWABLE ENERGY GENERATED Renewable energy generated MWhs p.a. Delorean Corporation Contributions Reducing dependence on fossil fuel-based energy sources by providing an alternative in biogas. Utilising locally produced waste and crops to generate energy for rural and remote communities. Storing biogas to produce energy when required. Reducing GHG emissions by using biogas- based renewable energy in commercial buildings, homes, and industry. Preventing the spread of diseases through collection and proper management of organic waste. Improving sanitation and hygiene through decentralised and local treatment of biosolids. Providing solutions to achieve the environmentally sound management of wastes throughout their life cycle. 120,000 TPA. WASTE RECYCLED/REUSED 44,100MWhs p.a. RENEWABLE ENERGY CREATED Reducing waste through recycling and reuse. Providing solutions sustainable practices. for companies to adopt Reducing carbon dioxide emissions by replacing fossil fuel-based energy sources with biogas. Reduction of methane and other potentially harmful emissions from organic waste in landfill. Reduction of methane and generation of renewable energy from food and other organic wastes. 0 TJ’s p.a. RENEWABLE NATURAL GAS CREATED * Delorean will not provide annual updates on the project impact data pertaining to third-party EPC projects due to the unavailability of readily accessible data within the company. ESG Report | Delorean Corporation Page 13 Material Topics Circularity and Waste Environment Climate and Emissions We close the loop on organic waste, diverting it from landfill and turning it into green energy that powers communities and industry. We are proud to contribute to a net zero future. Our business is built upon technology that is carbon neutral. Delorean’s business, at its core, is truly green and our purpose is to help shape a cleaner future. The Company is a pioneer in diverting Australia’s organics away from landfill and towards delivering renewable gas, electricity, and heat to commercial and retail customers. By doing so, Delorean delivers direct positive impacts on climate action and the clean energy transition. Delorean has achieved accreditation for ISO14001:2015, which highlights our management of environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability. Our accreditation ensures continual environmental performance through monitoring, auditing and reviews. Delorean is at the forefront of organic waste management in Australia, diverting it from landfills and harnessing its potential for green energy production, thus closing the loop on organic waste and powering both communities and industries. With less than 60% of organic waste recycled each year, as highlighted in the National Waste Report, this current way of living is unsustainable and poses significant detrimental impacts on both human health and the environment. Delorean’s circular approach directly advances climate action and the transition to clean energy. Delorean's impactful contributions include the development of award-winning projects such as the Jandakot Bioenergy plant, the Blue Lake Milling Bioenergy Plant, and the Ecogas Bioenergy plant in New Zealand. These projects have yielded two significant positive outcomes: the reduction of landfill waste and the generation of clean energy, exemplifying our commitment to sustainable waste management and renewable energy production. Over 400,000 tonnes waste diverted Over 180,000 MWh energy produced Around 21.51 tCO2-e p.a. of Scope 1 & 2 emissions produced FY 2024 Highlights Completed Scope 1 & 2 GHG Baseline Assessment Developed a GHG emissions reduction strategy roadmap Continued reporting on renewable energy and renewable natural gas created for individual projects To date, through Carbon Neutral Plant a Tree Program, Delorean has funded the planting of Over 3,050 Trees FY 2025 Steps FY 2024 Highlights FY 2025 Steps Develop a comprehensive plan to measure and Developed partnerships with local feedstock Strengthen and continue building address Scope 3 greenhouse gas (GHG) producers to source organic waste for the relationships with organic feedstock producers emissions. Company owned infrastructure projects Continue reporting on waste diverted for Continue reporting on renewable energy and Continued reporting on waste diverted for individual projects renewable natural gas created for individual individual projects projects Expand DEL’s renewable energy portfolio ESG Report | Delorean Corporation Page 14 Social Health, Safety and Wellbeing Local Communities We provide a workplace culture where the health, safety and wellbeing of our team, our stakeholders and communities is prioritised. We deliver projects for local and regional communities that enhance resilience and create prosperity. One of Delorean’s core principles is to “Create Real Value”, and we believe in delivering high impact projects that are both valuable and sustainable to the wider community. We are committed to responsibly managing all our operations and fostering positive, long-term relationships with the communities in which we operate. Our goal is to achieve practical and sustainable outcomes that benefit everyone involved. DEL adheres to all regulatory and compliance requirements pertaining to project consultation and approvals. This includes engagement with the community and stakeholders under required compliance requirements and regulations to establish an inclusive planning approach to our project work. The purpose of regular communication with local communities is to be transparent about our operations, and to build trust that the interests and safety of communities remain a priority. Key Community Stakeholder Groups In order to maintain transparency with in the vicinity of DEL Projects communities in the vicinity of our - Local communities - Local council authorities - Waste producers - State government agencies - Environmental agencies - Energy sector participants submit queries, questions and requests bioenergy assets, our stakeholders can regarding the company's construction and operational processes to info@deloreancorporation.com.au We are determined to develop a safety culture that is recognised as amongst the “best in industry” that will meet the performance expectations of our stakeholders. ISO 45001 certification affirms our dedication to a safe and healthy work environment for all stakeholders and signifies our ongoing efforts to continually monitor and improve overall health and safety performance. All individuals working on Delorean project sites are required to undergo compulsory induction and onsite training. Additionally, all Delorean projects have Project Management Plans, which serve as comprehensive procedures for our Project Managers, Supervisors, Suppliers and Contractors. These plans cover various aspects of a project, such as: - Dust Management - Safety Management - Fatigue Management - Emergency Management - Project Environment Management - Workplace Health & Safety - Anaerobic Digestion Facility Management - Project Risk Management - Project Change Management - Traffic Management - Quality Management Delorean's clients are provided with these project specific plans as part of our stakeholder engagement strategy. The Company’s internal audit system monitors the relevance of the data within these plans during the life cycle of the project. We recognise that Delorean's continued success is dependent upon attracting and retaining the best people. We nurture an environment that fosters: - The growth of each employee - Open and respectful behaviour Our Employee Wellbeing Strategy centers on key 3 pillars: Work, W