P AN AMERIC AN SIL VER 87 C l i m a t e E n er g y a n d G r e en h o u s e G a s G H G E mi s s i o ns Wh y ar e climat e ener gy and GHG emis sions import ant Climat e chang e is one o f the bigg e s t challeng e s curr ently f acing the glob al c ommunit y Mining is an ener gy int ensiv e indus tr y Mine s c onsume ener gy thr ough e xtr action pr oc e s sing and tr ansport ation o f pr oduct s E ner gy us e p articularly thr ough fuel c ombus tion and electricit y c onsumption c aus e s dir ect and indir ect GHG emis sions which c ontribut e t o climat e chang e C OI e xpect ations ar ound climat e action in the mining indus tr y include r educing the c arbon f ootprint and r e sponding t o pot ential climat er elat ed risk s F or P an Americ an Silv er r educing emis sions and ener gy us e pr o vide s us with c o s t s a ving s and en vir onment al bene ft s be y ond our oper ating boundarie s and c ontribut e s t o the glob al r e spons e t o climat e chang e O ur Appr o ach W e f ormed a Climat e Chang e C ommitt ee with s enior manag ement in 2 01 9 t o o v er s ee implement ation o f the T CFD r ec ommendations and our c ommitment s t o the W orld E c onomic F orum s CE O Climat e L e ader s Allianc e W e c ontinually s e ar ch f or w a y s t o impr o v e ener gy efcienc y at our oper ations and de v elopment pr oject s P r ogr ams and Initiativ e s O ur Timmins oper ations ha v e a dedic at ed E ner gy Manag er who le ads ener gy efcienc y and GHG emis sion r eduction pr ogr ams at tho s e oper ations and maint ains our p articip ation in pr o vincial ener gy inc entiv e pr ogr ams W e c omplet ed the ins t allation o f a ne w mine shaft at B ell Cr eek mine which r educ e s our ener gy us e c omp ar ed t o busine s s as usual W e implement ed pr oject s t o ins t all LED lighting at L a C olor ada impr o v e die s el po w er plant efcienc y at Manantial E spejo and optimiz e the us e o f v entilation f ans at S an V ic ent e which r educ ed ener gy us e c omp ar ed t o busine s s as usual Monit oring and E v aluation T SM E ner gy and Gr eenhous e Gas E mis sions P r ot oc ol Sit e s ha v e s elf as s e s s ed ag ains t the pr ot oc ol and ar e in the pr oc e s s o f implementing action plans E ner gy and fuel monit oring W e monit or ener gy and fuel us e at all oper ations and e s timat e our gr eenhous e g as emis sions on an annual b asis O ur Me xic an and P eruvian oper ations r eport independently c alculat ed gr eenhous e g as in v ent orie s t o national authoritie s P O TE NT I A L R I SK S A N D IM P A C TS R E L A TE D SD G S Climat e chang e ef ect s on loc al c ommunitie s and br o ader s ociet y Ph y sic al risk s o f climat e chang e such as e xtr eme w e ather e v ent s and w at er a v ailabilit y and imp act s on ec o s y s t ems and biodiv er sit y P ot ential ne w c arbon r egulations and rising ener gy c o s t s in the tr ansition t o a lo w c arbon ec onom y