GOLD  $US/OZ $ NYSE:OR  $ TSX:OR    $
Corporate Responsibility

Message to our Stakeholders

Sustainability is, and always has been, an integral part of Osisko’s corporate philosophy. When this core management group built the Canadian Malartic mine in our predecessor company, we did so by being on the forefront of sustainability practices. We have taken those same core values with us into the business strategy that underpins our present-day royalty and streaming company.

 

Release of the 2020 ESG Report – Growing Responsibly

With the release of its ESG report, Osisko’s objective is to facilitate ongoing discussions of our risk management processes and help stakeholders assess our relative exposure to, and performance managing, ESG issues. In addition to a discussion of corporate governance practices, the report provides a focused review of how Osisko assesses potential investments through its diligence process and monitors existing assets to ensure the Corporation is well positioned to deliver growth responsibly.

We are pleased to offer this inaugural snapshot of our ESG approach and welcome your feedback as we enhance our ESG practices and disclosure.


The royalty and streaming model requires a nuanced discussion of how ESG risks are managed and performance is disclosed. Unlike our operating partners, we mainly have indirect exposure to these risks, and in this report, we are careful to distinguish between direct and indirect exposure without evading our responsibility.

To that end, our initial report takes into account the spirit of frameworks such as SASB and GRI. We believe in the value of these frameworks and we expect to integrate a framework more formally into future reports. We are assessing the most appropriate fit given the unique nature of a mining royalty company.

Our goal is to facilitate discussions about our risk management processes and help stakeholders assess our relative exposure to, and performance managing, material ESG risks. Mining has inherent risk and incidents happen despite the best efforts of our operating partners. In this report we discuss the many aspects that are working well and, equally important, we include examples of how our process worked when challenges were faced.

The way we mitigate these risks is through our upfront due diligence process to assess new opportunities and by actively managing risk exposure across our existing portfolio. The bulk of this document explains how we systematically do this.

Having been founded in 2014, we benefit from a portfolio of relatively newer assets. These newer operations take advantage of advances in mining technology as well as typically more upfront investment to manage environmental and social concerns, all of which help to reduce our overall risk profile. Contractually, we also benefit from modern agreements where we have enhanced rights and protections across ESG areas.

In addition, the vast majority of our assets are based in advanced economies where the regulatory and business environment support better risk management.

Across our portfolio we have partnered with quality operators who have a track record of operating responsibly. The strength of our partners was further on display this year as they managed their operations effectively while protecting their employees and communities from the effects of COVID-19.

While our exposure to most ESG risks is mainly indirect, it is also true that our revenue is generated from operations that produce CO2 emissions and have other environmental impacts. The drive to net zero is as relevant for us as it is for our operating partners. We are actively evaluating options to off-set our direct and indirect emissions.
One such example is our recent partnership with a new carbon credit streaming company where we can extend our existing streaming business model to help promote decarbonization initiatives.

Sincerely,

Sean Roosen
Executive Chair of the Board of Directors

Sandeep Singh
President and Chief Executive Officer