Li-Cycle Publishes 2023 Sustainability Report

Rhea-AI Summary

Li-Cycle Holdings Corp. (NYSE: LICY) has released its 2023 Sustainability Report, highlighting significant achievements and future ESG (Environmental, Social, and Governance) initiatives. The report emphasizes enhanced ESG performance metrics, zero critical safety or environmental incidents since inception, a diversion of 84% of materials from landfills, and no Scope 1 emissions from recycling processes. Additionally, the company has joined the United Nations Global Compact and set a Board gender diversity target of 30%. Li-Cycle also issued its first Modern Slavery Report, compliant with Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act.

Positive

• Enhanced ESG performance metrics and transparency.
• Zero critical safety, environmental, and community incidents since inception.
• Diverted 84% of managed materials from landfills.
• Produced no Scope 1 emissions through recycling processes.
• Completed enterprise-wide climate change risk and opportunity assessment.
• Joined the United Nations Global Compact.
• Implemented a formal Human Rights Policy.
• Procured renewable energy for Germany Spoke.
• Implemented over 180 employee-led safety improvements in North America.
• Achieved 30% Board gender diversity target.

Negative

• Sustainability and Modern Slavery Reports are largely qualitative, with quantifiable financial data.
• No immediate financial impact or revenue figures provided.

Report showcases Li-Cycle’s key sustainability achievements and planned ESG initiatives

TORONTO--(BUSINESS WIRE)-- Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Company”), a leading global lithium-ion battery resource recovery company, is pleased to announce the publication of its 2023 Sustainability Report.

Building on Li-Cycle’s inaugural 2022 Interim Environmental, Social, and Governance (ESG) Report, the Company’s 2023 Sustainability Report provides a look back at the progress the Company has made over the past year and offers enhanced details of its ESG performance and planned initiatives. Li-Cycle is also pleased to announce the publication of its inaugural 2023 Modern Slavery Report, in compliance with Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act.

The 2023 Sustainability Report demonstrates how Li-Cycle’s ESG principles are integrated throughout its operations and how ESG considerations are integral to the Company’s business, guiding its overall strategy. It was developed in alignment with the updated Sustainability Accounting Standards Board (SASB) Standards for Waste Management: 2023, and in consideration of the United Nations Global Compact (UNGC) Sustainable Development Goals.

The full 2023 Sustainability Report can be found here: 2023-Li-Cycle-Sustainability-Report.pdf

The full 2023 Modern Slavery Report can be found here: Li-Cycle-Modern-Slavery-Report-2023.pdf

Li-Cycle’s 2023 Sustainability Report Highlights:

• Strengthened data tracking and reporting capabilities to include enhanced monitoring of ESG metrics, facilitating greater transparency and accountability.
• Incurred zero critical safety, environmental and community incidents since the Company’s inception.
• Diverted 84% of the materials the Company managed at its operations from landfills.
• Produced no Scope 1 emissions as a result of the Company’s recycling processes.
• Completed a scenario-based, enterprise-wide climate change risk and opportunity assessment.
• Enhanced its robust, integrated, International Organization for Standardization (ISO)-aligned health, safety, environmental, and quality management system across its operations.
• Joined the UNGC, the world’s largest voluntary corporate sustainability initiative.
• Implemented a Human Rights Policy that formalizes Li-Cycle’s commitment to upholding human rights, protecting workers and communities, and ensuring the Company operates to the highest ethical and safety standards.
• Procured all electricity for its Germany Spoke from renewable energy sources.
• Implemented over 180 employee-led safety improvements at its North American Spokes, resulting in safer and more productive work environments.
• Achieved Board gender diversity target of 30%, reflecting Li-Cycle’s ongoing commitment to building an inclusive and equitable corporate culture.
• Expanded its community engagement across the Company’s North American and European operations.

“Sustainability is much more than just an element of our business model – it's ingrained in our DNA and is a fundamental part of our overarching business strategy and purpose,” said Ajay Kochhar, President and CEO of Li-Cycle. “We are pleased to publish both our 2023 Sustainability Report and our 2023 Modern Slavery Report, which demonstrate the dedication and commitment of our global team to these key areas. Our commitment to our core values remains steadfast and our focus has always been on recycling and recovering critical battery materials in a safe, responsible, and environmentally friendly manner. Li-Cycle is uniquely positioned to play a pivotal role in the creation of a more circular and localized battery supply chain that will help drive the global transition to net-zero.”

Moving forward, Li-Cycle will be focused on refining and expanding its existing ESG programs, while continuously improving the Company’s data collection and reporting systems. The Company expects to align with the Taskforce on Climate-Related Financial Disclosures (TCFD) in 2025. Recommendations of the TCFD seek to enhance the amount and quality of the information reported in corporate disclosures on climate change issues.

Modern Slavery Report

Li-Cycle’s inaugural 2023 Modern Slavery Report was prepared pursuant to the requirements of Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act for the financial year ending December 31, 2023, on the steps taken to uphold human rights and prevent exploitation throughout the Company’s business activities in Canada and elsewhere. The 2023 Modern Slavery Report outlines the actions that Li-Cycle has taken to combat forced labour and child labour across its supply chains. The Company recognizes that modern slavery and human trafficking are grave violations of human rights and it is strongly committed to preventing and mitigating potential risks associated with these practices.

About Li-Cycle Holdings Corp.

Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company. Established in 2016, and with major customers and partners around the world, Li-Cycle’s mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. The Company leverages its innovative, sustainable and patent-protected Spoke & Hub Technologies™ to recycle all different types of lithium-ion batteries. At our Spokes, or pre-processing facilities, we recycle battery manufacturing scrap and end-of-life batteries to produce black mass, a powder-like substance which contains a number of valuable metals, including lithium, nickel and cobalt. At our future Hubs, or post-processing facilities, we plan to process black mass to produce critical battery-grade materials, including lithium carbonate, for the lithium-ion battery supply chain. For more information, visit https://li-cycle.com/.

Forward-Looking Statements

Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as “believe”, “may”, “will”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “could”, “plan”, “potential”, “future”, “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: Li-Cycle’s planned ESG initiatives; Li-Cycle’s commitment to upholding human rights, protecting workers and communities, and ensuring the Company operates to the highest ethical and safety standards; Li-Cycle’s commitment to building an inclusive and equitable corporate culture; Li-Cycle’s focus on recycling and recovering critical battery materials in a safe, responsible, and environmentally friendly manner; Li-Cycle’s position in the creation of a more circular and localized battery supply chain that will help drive the global transition to net-zero; Li-Cycle’s future focus on refining and expanding its existing ESG programs, while continuously improving its data collection and reporting systems; the expectation that Li-Cycle will align with the TCFD in 2025; and Li-Cycle’s commitment to prevent and mitigate potential risks associated with modern slavery and human trafficking. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the timing, scope and cost of Li-Cycle’s projects; the processing capacity and production of Li-Cycle’s facilities; Li-Cycle’s ability to source feedstock and manage supply chain risk; Li-Cycle’s ability to increase recycling capacity and efficiency; Li-Cycle’s ability to obtain financing on acceptable terms; Li-Cycle’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners; general economic conditions; currency exchange and interest rates; compensation costs; and inflation. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.

These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.

Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle’s inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle’s inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub as anticipated or at all, and other future projects including its Spoke network expansion projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle’s history of losses and expected significant expenses for the foreseeable future as well as additional funds required to meet Li-Cycle’s liquidity needs and capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; risk and uncertainties related to Li-Cycle’s ability to continue as a going concern; uncertainty related to the success of Li-Cycle’s cash preservation plan and related past and further workforce reductions; Li-Cycle’s inability to attract, train and retain top talent who possess specialized knowledge and technical skills; Li-Cycle’s failure to oversee and supervise strategic review of all or any of the Li-Cycle’s operations and capital project and obtain financing and other strategic alternatives; Li-Cycle’s inability to service its debt and the restrictive nature of the terms of its debt; Li-Cycle’s potential engagement in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle’s current or future facilities becoming inoperative, capacity constrained or disrupted, or lacking sufficient feed streams to remain in operation; the potential impact of the pause in construction of the Rochester Hub on the authorizations and permits granted to Li-Cycle for the operation of the Rochester Hub and the Spokes on pause; the risk that the New York state and municipal authorities determine that the permits granted to Li-Cycle for the production of metal sulphates at the Rochester Hub will be impacted by the change to MHP and the reduction in scope for the project; Li-Cycle’s failure to materially increase recycling capacity and efficiency; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to maintain and increase feedstock supply commitments as well as secure new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for “green” energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle’s products; changes in the volume or composition of feedstock materials processed at Li-Cycle’s facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle’s expected revenues for the Rochester Hub are expected to be derived significantly from a limited number of customers; uncertainty regarding the sublease agreement with Pike Conductor Dev 1, LLC related to the construction, financing and leasing of a warehouse and administrative building for the Rochester Hub; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavorable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle’s intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle may be subject to cybersecurity attacks, including, but not limited to, ransomware; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or its failure to develop and maintain a proper and effective internal control over financial reporting; the potential for Li-Cycle’s directors and officers who hold Company common shares to have interests that may differ from, or be in conflict with, the interests of other shareholders; and risks related to adoption of Li-Cycle’s shareholder rights plan and amendment to the shareholder rights plan and the volatility of the price of Li-Cycle’s common shares. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the sections titled “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation—Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 10-K and the sections titled “Part II. Other Information—Item 1A. Risk Factors” and “Part I. Financial Information—Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation—Key Factors Affecting Li-Cycle’s Performance” in its Quarterly Reports on Form 10-Q, in each case filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement.

Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle’s assessments as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240523595575/en/

Investor Relations & Media

Louie Diaz

Sheldon D'souza

Investor Relations: investors@li-cycle.com

Media: media@li-cycle.com

Source: Li-Cycle Holdings Corp.

FAQ

What are the key achievements in Li-Cycle's 2023 Sustainability Report?

The report highlights enhanced ESG metrics, zero critical incidents, diversion of 84% of materials from landfills, no Scope 1 emissions, and reaching a 30% Board gender diversity target.

What is Li-Cycle's stock symbol?

Li-Cycle's stock symbol is LICY.

When did Li-Cycle release its 2023 Sustainability Report?

Li-Cycle released its 2023 Sustainability Report in October 2023.

What is the focus of Li-Cycle's 2023 Modern Slavery Report?

The report focuses on combating forced labor and child labor in compliance with Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act.

What ESG initiatives has Li-Cycle planned for the future?

Li-Cycle plans to refine and expand its ESG programs and align with the Taskforce on Climate-Related Financial Disclosures (TCFD) by 2025.

How does Li-Cycle contribute to sustainability?

Li-Cycle contributes by enhancing ESG performance metrics, diverting materials from landfills, producing no Scope 1 emissions, and sourcing renewable energy.