Environmental Management

Water is essential to our operations, and its scarcity and shared nature mean our strategy focuses on recovery, reuse and efficient consumption. In 2025, we used 0.26 m³ of fresh water per tonne of ore processed, against our 2030 ambition of 0.22 m³/tonne. To improve performance, we installed a reverse osmosis plant at Inmaculada, continued reusing 100% of treated domestic wastewater at the Inmaculada and San Jose processing plants, and enhanced water circuit efficiency. Potable water consumption also fell to a record low of 125 litres per person per day. Across all operations, we maintain continuous monitoring of water treatment plants, effluent discharges and key mining infrastructure, tracking around 2,000 environmental parameters each year and carrying out participatory water quality monitoring with authorities and local communities in Peru.

We recognise the environmental risks associated with hazardous and non-hazardous waste and manage them through comprehensive waste management plans aligned with our 2030 ambitions of repurposing 80% of waste generated and limiting domestic waste to 0.90 kg per person per day. To minimise landfill disposal, we prioritise reuse and recycling through initiatives including:

• composting at our mine sites;
• strengthening waste segregation at source through training and awareness; and
• identifying opportunities to reduce waste generation.

We do not generate any radioactive waste.

All waste rock and tailings are managed in accordance with our environmental permits using purpose-built facilities at every site. Wherever possible, we repurpose these materials, including using tailings and waste rock as backfill at the Inmaculada and San Jose underground mines and supplying waste rock from Mara Rosa to a rail company, supporting a circular economy. We operate nine Tailings Storage Facilities (TSFs), whose stability is independently audited every two years. Employees receive training on our TSF management policies, while a monthly TSF Committee, chaired by the COO, oversees the status of all facilities, monitors progress and reviews key risks.

Hochschild's mining units do not generate significant emissions of nitrogen oxides, sulfur oxides, volatile organic compounds (VOCs), mercury, ozone-depleting substances, nor particulate matter. Therefore, these are not directly monitored. However, air quality is assessed at all mining units, at least quarterly, covering each of these pollutants. All measurements consistently meet the environmental quality standards established by the national laws of the countries in which we operate.

We recognise the urgency of addressing climate change and are determined to play our part by continuously reducing our Greenhouse Gas (GHG) emissions. Our aim is to reach net zero GHG emissions by 2050, with an interim target to reduce our GHG Scope 1 and 2 market-based emissions by 30% against a 2021 baseline. 

To achieve this, our efforts are focused on sourcing renewable electricity and transitioning towards low-emissions vehicles as they become readily available, as well as on applying operational changes at our existing mines and operations and the use of offset schemes. 

Details of our approach to managing climate risks and opportunities can be found in the CFD report included in the 2025 Annual Report.

We are committed to protecting biodiversity and natural resources wherever we operate. Guided by our environmental permits and Biodiversity Policy, we conduct detailed baseline studies and monitor flora and fauna twice a year throughout each stage of the life of our operations. Where ecosystems are disturbed, we support rehabilitation and restoration through our mine closure programmes and implement biodiversity compensation plans to manage unavoidable impacts on sensitive habitats. We currently have three active compensation plans.

Beyond our operational activities, we invest in environmental education, cultural heritage and community awareness initiatives, including the Knowledge Trail project. Following a 2025 gap assessment and peer benchmarking exercise to evaluate our readiness for TNFD and CDP nature disclosures, we initiated the TNFD LEAP assessment in 2026.

We are committed to restoring the environment to a safe and stable condition through responsible mine closure. All operations have approved closure and rehabilitation plans tailored to site-specific conditions and aligned with regulatory requirements in Peru, Argentina and Brazil. We report on closure activities across all current and former sites in accordance with applicable regulations.

A dedicated team oversees the delivery of our closure commitments, supported by financial provisions that are reviewed annually and independently validated every three to five years. We also help communities prepare for a sustainable post-mining future by supporting local employment and procurement, strengthening public infrastructure in partnership with local authorities, and providing education and skills development programmes.