Lundin Gold Publishes 2025 Annual Report and Sustainability Statement

Lundin Gold publishes first sustainability statement under European reporting standards

Lundin Gold Inc. has released its 2025 annual report alongside its first sustainability statement compliant with European Sustainability Reporting Standards (ESRS). The company operates the Fruta del Norte gold mine in Ecuador, one of the highest-grade producing gold mines globally. This dual publication marks the conclusion of its 2021 to 2025 sustainability strategy and introduces a new framework running from 2026 to 2030.

The ESRS-aligned statement follows requirements under the Swedish Annual Accounts Act. Consequently, Lundin Gold joins a growing number of companies publishing detailed environmental, social, and governance data to meet European regulatory expectations. The company trades on the Toronto Stock Exchange and Nasdaq Stockholm under the ticker LUG.

Swedish companies must now provide sustainability information meeting ESRS criteria as part of annual reporting obligations. For businesses with European operations or investors, this shift represents a material change in disclosure expectations. Moreover, the standards require double materiality assessment, meaning companies must evaluate how sustainability issues affect their business and how their business affects society and the environment.

Five-year strategy delivered measurable safety and local employment gains

Lundin Gold’s 2021 to 2025 sustainability strategy was structured around eight pillars. These included safety, environmental stewardship, community engagement, and governance. The company supported this framework with an impact management system and key performance indicators.

Safety performance improved substantially during the period. The operation recorded zero fatalities and zero lost time incidents throughout 2025. Furthermore, the total recordable incident rate fell to 0.22, representing a 67% improvement from the 0.66 rate recorded in 2024. This achievement came across 8.2 million hours worked.

Local employment increased notably. Direct employees from nearby communities rose to 53% of the workforce, up from a 49% baseline at the strategy’s start. Additionally, local procurement reached $35.7 million, exceeding the original target of $29 million.

Environmental restoration surpassed expectations. The company restored 17.9 hectares of land, beating its 14.5-hectare target a year ahead of schedule. The Fruta del Norte site also achieved ISO 50001 certification for its energy management system. The Magnolia yantzazana conservation program received Wildlife Habitat Council certification, recognizing efforts to protect this endemic orchid species.

Jamie Beck, President and CEO, noted that 2025 was a strong year for sustainability at Lundin Gold. He emphasized that the company met or exceeded targets across its strategy period. The ESRS-aligned statement reflects the rigor applied to measuring and reporting results, he added.

New strategy focuses on workforce value and shared prosperity

The 2026 to 2030 sustainability strategy introduces five core pillars. These are Valued Workforce, Shared Prosperity, Stakeholder Trust, Environmental Stewardship, and Responsible Governance. The framework emerged from a double materiality assessment examining issues from financial and impact perspectives.

This assessment process identifies which sustainability topics matter most to business performance and which reflect the company’s effects on people and the planet. Independent assurance was obtained on a limited basis for the new strategy and accompanying disclosures.

The shift from eight pillars to five represents a more focused approach. However, it maintains emphasis on local economic benefits, worker safety, and environmental management. The new framework aligns with international standards including the UN Sustainable Development Goals and UN Guiding Principles on Business and Human Rights.

Full documentation is available on the company’s website. The annual report, including the sustainability statement, can be accessed through the investor relations section. A standalone sustainability statement is also published in the responsible mining section. Swedish readers can access an ESEF-formatted version meeting local filing requirements.

ESRS compliance responds to European regulatory pressure

The European Sustainability Reporting Standards form part of the Corporate Sustainability Reporting Directive. This directive substantially expands the number of companies required to publish detailed sustainability information. Initially, large listed companies and financial institutions face these requirements. Subsequently, the rules will extend to smaller listed entities and non-European companies with significant EU operations.

For UK businesses supplying European customers or competing for contracts with EU-facing requirements, these standards increasingly set expectations. Major buyers often look for suppliers demonstrating credible sustainability performance through recognized frameworks. Therefore, understanding ESRS structure helps businesses anticipate customer due diligence questions.

The directive requires specific disclosures across environmental, social, and governance dimensions. Environmental reporting covers climate change, pollution, water resources, biodiversity, and circular economy. Social reporting addresses workforce conditions, workers in the value chain, affected communities, and consumers. Governance reporting examines business conduct and corporate culture.

Lundin Gold’s adoption of ESRS ahead of mandatory requirements for many peers signals strategic positioning. Verified metrics and transparent reporting can enhance investor confidence and potentially reduce capital costs. Furthermore, robust disclosure helps differentiate the company in conversations with institutional investors applying sustainability screens.

Gold mining sector faces scrutiny on emissions and biodiversity

Mining companies globally face increasing pressure to demonstrate environmental responsibility. Scope 3 emissions, which occur in the value chain beyond direct operations, represent a particular challenge. For some mining companies, these indirect emissions account for the majority of total carbon footprint.

Energy consumption at mine sites contributes significantly to direct emissions. Lundin Gold’s ISO 50001 certification indicates systematic management of energy use. This standard requires organizations to establish energy policies, set targets, and implement action plans for improvement.

Biodiversity management has become equally critical. Mining operations can disturb ecosystems and affect endemic species. The Wildlife Habitat Council certification for the Magnolia yantzazana program demonstrates third-party validation of conservation efforts. This orchid species exists only in specific Ecuadorian regions, making its protection particularly important.

Restoration of disturbed land addresses legacy impacts. The 17.9 hectares restored exceeds minimum regulatory requirements. Additionally, completing restoration targets ahead of schedule indicates operational capability and resource commitment beyond compliance obligations.

Water management, though not detailed in available summaries, typically represents another material issue for mining operations. Responsible water use and protection of local water resources affect both environmental outcomes and community relations.

Local procurement and employment drive community prosperity

The $35.7 million in local procurement creates direct economic benefits in surrounding communities. This spending supports local businesses, creates secondary employment, and builds regional economic capacity. For communities near extractive operations, these economic linkages often determine whether mining brings shared prosperity or concentrated disruption.

Increasing local employment from 49% to 53% means more households directly benefit from mine wages. This also builds local skills and creates potential for longer-term economic development beyond the mine’s operational life. However, maintaining employment quality and safety standards remains essential for these benefits to materialize meaningfully.

Community engagement extends beyond employment and procurement. Mining operations require ongoing dialogue with affected populations regarding environmental management, land use, and infrastructure impacts. The stakeholder trust pillar in the new strategy acknowledges this dimension explicitly.

For UK businesses considering sustainability commitments in their supply chains, the Lundin Gold approach illustrates measurable local benefit creation. Companies facing sustainable procurement expectations from public sector buyers can reference specific metrics around local employment and spending when demonstrating supply chain responsibility.

Essential information about Lundin Gold’s sustainability reporting

• Lundin Gold Inc. operates the Fruta del Norte gold mine in Ecuador and trades on Toronto Stock Exchange and Nasdaq Stockholm under ticker LUG.
• The company published its first ESRS-aligned sustainability statement in early 2026 as part of its 2025 annual report.
• Safety performance in 2025 included zero fatalities, zero lost time incidents, and a total recordable incident rate of 0.22 across 8.2 million hours worked.
• Local employment reached 53% of direct workforce while local procurement totaled $35.7 million, exceeding the $29 million target.
• Environmental achievements included restoring 17.9 hectares of land, achieving ISO 50001 energy management certification, and obtaining Wildlife Habitat Council recognition for orchid conservation.
• The new 2026 to 2030 sustainability strategy focuses on five pillars: Valued Workforce, Shared Prosperity, Stakeholder Trust, Environmental Stewardship, and Responsible Governance.
• ESRS compliance demonstrates alignment with European Corporate Sustainability Reporting Directive requirements increasingly relevant for companies with EU exposure.

What sustainability reporting developments mean for UK businesses

European reporting standards affect UK companies in several ways. Businesses supplying European customers may face due diligence requests aligned with ESRS categories. Similarly, companies competing for contracts with sustainability criteria need comparable disclosure capabilities.

The double materiality concept represents a significant shift from traditional risk-based reporting. Financial materiality asks how sustainability issues affect company performance. Impact materiality asks how company operations affect people and environment. Both perspectives require systematic assessment and disclosure.

For SMEs without mandatory reporting obligations, understanding these frameworks helps anticipate customer expectations. Large corporations implementing ESRS often cascade requirements through supply chains. Therefore, suppliers benefit from familiarizing themselves with key disclosure areas before formal requests arrive.

The Lundin Gold approach demonstrates several principles applicable across sectors. First, measurable targets enable credible performance tracking. Second, third-party certification adds verification to self-reported data. Third, exceeding targets builds stakeholder confidence more effectively than merely meeting minimum requirements.

Businesses developing their own sustainability strategies can learn from the pillar-based structure. Identifying priority areas through materiality assessment focuses resources on issues that matter most to stakeholders and business resilience. Furthermore, aligning with recognized standards like ISO certifications or UN frameworks provides external reference points.

Energy management deserves particular attention. ISO 50001 certification requires systematic approaches to reducing consumption and improving efficiency. For manufacturing businesses and operators of substantial facilities, structured energy management supports both cost control and emissions reduction.

Local economic impact metrics increasingly appear in tender requirements and customer questionnaires. Tracking local employment percentages, regional procurement spending, and community investment demonstrates tangible contributions beyond core business activity. These metrics particularly matter for businesses operating in specific regions or communities.

Biodiversity and nature-related reporting will likely expand following the Taskforce on Nature-related Financial Disclosures framework. Companies with land use impacts or dependence on natural resources should begin assessing nature-related risks and dependencies. The Wildlife Habitat Council model used by Lundin Gold offers one approach to demonstrating proactive biodiversity management.

Reporting standards continue evolving across jurisdictions

The UK government has indicated intentions to align corporate reporting with international sustainability disclosure standards. The International Sustainability Standards Board, established by the IFRS Foundation, published its first standards in 2023. These focus on climate-related and general sustainability disclosures.

Different jurisdictions adopt varying approaches to mandatory sustainability reporting. The EU pursues comprehensive requirements through the Corporate Sustainability Reporting Directive. The UK currently applies a mix of climate-related financial disclosures for listed companies and large private companies alongside streamlined energy and carbon reporting.

This evolving landscape creates challenges for businesses operating across multiple markets. However, core elements remain consistent: governance, strategy, risk management, and metrics. Companies building reporting capabilities around these pillars can adapt to specific frameworks as requirements crystallize.

Independent assurance adds credibility to sustainability reporting. Lundin Gold obtained limited assurance on its new strategy and disclosures. Limited assurance provides moderate confidence in reported information through inquiry and analytical procedures. Reasonable assurance, similar to financial audit standards, involves more extensive verification but remains less common for sustainability data.

For businesses beginning sustainability reporting, starting with internally reviewed data and progressing toward external assurance represents a pragmatic path. Initially, focus on measuring and tracking key metrics consistently. Subsequently, consider external verification as reporting matures and stakeholder expectations increase.

Sector-specific guidance continues developing. Mining, manufacturing, agriculture, and financial services face distinct sustainability issues. While general frameworks provide structure, understanding material topics for your sector ensures reporting addresses relevant concerns rather than generic checklists.

Where to find additional guidance on sustainability reporting

The UK government provides resources on sustainability and climate change reporting requirements through the Department for Business and Trade. These cover mandatory disclosures for different company types and sizes.

The Financial Reporting Council publishes guidance on sustainability reporting standards and best practice applicable to UK businesses. This includes information on climate-related financial disclosures and broader ESG reporting.

Companies exploring carbon reporting and net-zero program development need frameworks appropriate to their size and sector. Understanding reporting requirements helps avoid gaps when customers or regulators request sustainability information.

The European Financial Reporting Advisory Group maintains detailed information about ESRS standards including sector-specific guidance as it develops. Businesses with European operations or customers can access technical documentation and implementation resources.

For questions about developing sustainability strategies appropriate to your business, professional advice helps navigate the expanding landscape of standards, frameworks, and disclosure expectations.