Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic Contribution
• Human Capital
• Stakeholder Engagement
• Human Rights

Environmental Achievements

• Reduced greenhouse gas emissions from nickel and ferronickel production to 0.176 tonnes of CO2 equivalent per ton of processed ore and from ferroniobium production to 0.006 tonnes of CO2 equivalent per ton of processed ore.
• Recycled approximately 60% of water used in the ferroniobium production process.
• Rehabilitated 171.57 hectares of a total of 258.12 hectares mined at the ferronickel production facility.
• Recovered 151 hectares of a total of 203 hectares occupied by mining-related activities at the ferroniobium facility.

Social Achievements

• Invested R$ 1,338 thousand (US$457 thousand) in community projects, including 67% in cultural projects, 18% in education and youth, and 1% in health and environment.
• Supported the “Nova Vida” Foundation, providing assistance to 160 children and adolescents.
• Established the “Cerrado Guitar Symphony Orchestra” in Niquelândia, involving 150 children.
• Implemented the “Se Liga no Futuro” program in Barro Alto and Ouvidor, involving 5,500 students.

Governance Achievements

• Participated in a pilot test of an international mining activity certification project (MCEP).
• Implemented “Speak-up”, a global corporate communication initiative for reporting ethical concerns.
• Integrated Quality, Environment, Health, and Safety management into a single certified system (ISO 9001:2000, ISO 14001, OHSAS 18001).

Climate Goals & Targets

Environmental Challenges

• Two fatalities occurred in 2004, one involving an employee in Catalão and the other a subcontracted employee in Niquelândia.
• Need to improve change management, risk management, awareness-raising, and personnel training.

Mitigation Strategies

• Focus on people and re-energizing safety culture.
• Implementing the Visible Felt Leadership (VFL) program to intensify visits to operational areas and observe safety attitudes.
• Striving for “zero deviation” to prevent accidents.

Supply Chain Management

Responsible Procurement

• Compliance with legislation governing health, hygiene, occupational medicine, ecological conservation, and environmental impacts.
• Awareness of and full compliance with Anglo's Business Principles.

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Supplier in terms of Quality Assurance (Acesita)
• Best Company in Central-West Region (Exame Magazine)
• Best Company in Mining Sector (Exame Magazine)
• Zero Accident Award (Anglo American plc)
• 1st Place to Anglo Base Metals – Global Gold Category (Anglo American plc)
• 2002 Environmental Management Award (Goiás Environmental Agency)

Environmental Metrics

ESG Focus Areas

• Safety
• HIV/AIDS
• Workforce attraction and retention
• Environmental footprint
• Community relations
• Climate change
• Black economic empowerment

Environmental Achievements

• Achieved upgraded certification to ISO 14001:2004 at all collieries
• Methane capture projects at three Australian operations, reducing greenhouse gas emissions
• Emalahleni water treatment plant (85% complete), transforming wastewater to potable water
• Successful ten-year trial of using mine wastewater for crop irrigation at Kleinkopje colliery

Social Achievements

• 82% of South African workforce participated in voluntary counselling and testing (VCT) for HIV/AIDS
• Anglo Inyosi Coal created, a broad-based black economic empowerment company
• US$3.1 million distributed to various organizations in South Africa through corporate social investment (CSI) program
• Successful Woorabinda Shared Responsibility Agreement, creating sustainable employment for an Aboriginal community

Governance Achievements

• Adherence to Anglo American’s Business Principles and Voluntary Principles on Security and Human Rights
• Participation in Anglo American plc whistle-blowing programme, Speakup
• All Anglo Coal operations certified to ISO 14001 environmental management system standard

Climate Goals & Targets

Environmental Challenges

• Seven fatalities in October and November 2006 due to safety incidents
• High HIV prevalence rate (approximately 16%) among South African employees
• Attracting and retaining a quality workforce
• Minimising ecological footprint (water scarcity, land rehabilitation)
• Climate change (reducing greenhouse gas emissions from coal use)

Mitigation Strategies

• Implementation of Anglo Safety Framework and Anglo Safety Way
• HIV/AIDS prevention and management programmes (VCT, ART)
• Cultural transformation programmes (Yebo Siyaphambili!, People, Performance, Growth)
• Water treatment technologies, wastewater reuse, land rehabilitation projects
• Methane capture, energy efficiency targets (15% energy efficiency and 10% CO2 emission reduction by 2014), carbon pricing sensitivity analyses for new projects

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferred supplier status for BEE companies in South Africa

Climate-Related Risks & Opportunities

Physical Risks

• Drought conditions in Australia

Transition Risks

• Carbon-constrained future

Opportunities

• Coal seam gas projects
• Monash Energy coal-to-liquids project

Reporting Standards

Frameworks Used: GRI G2 guidelines, GRI G3 guidelines (working towards)

Certifications: ISO 14001, AS 4801 (Australia), OHSAS 18001 (some South African operations)

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Clean synthetic diesel (Monash Energy project)

Awards & Recognition

• Nedbank Capital Green Mining Award (Isibonelo wetland rehabilitation project)
• Jobs Careers Future Award 2006 (Woorabinda Shared Responsibility Agreement)

Environmental Metrics

ESG Focus Areas

• Financial sustainability
• Safety and health performance
• Mineral policy and legislative compliance
• Community impacts and benefits
• Access to, and allocation of, resources

Environmental Achievements

• Water consumption 2% below internal target of 36 million m³ despite a 7% year-on-year increase due to the new Unki Platinum Mine.
• Energy use per refined platinum ounce decreased marginally by 0.8%.
• 13% reduction in waste sent to landfill compared to the 2008 baseline.
• All operations (except Amandelbult) maintained ISO 14001 certification with only three major non-conformances.

Social Achievements

• Project Alchemy, a R3.5 billion black economic empowerment (BEE) community equity-ownership transaction launched.
• 12% of employees were women in 2011 (compared to 10.5% in 2010).
• R187 million spent on corporate social investment projects (63% increase from 2010).
• 800 houses built as part of a 10-year plan to build 20,000 houses.

Governance Achievements

• Received several awards for sustainability programs (Top gender-empowered company, first in environmental reporting in Newsweek Global Green Rankings, fourth in Excellence in Sustainability Reporting).

Climate Goals & Targets

Environmental Challenges

• Employee safety performance deteriorated with 12 fatalities in 2011.
• Lost-time injury-frequency rate increased to 1.27 from 1.17 in 2010.
• 53 new cases of noise-induced hearing loss (NIHL) diagnosed.
• Energy intensity increased by 2.7% compared to 2010.
• CO2 equivalent emissions increased by 4% compared to 2010.
• Three operations lacked approved water-use licenses.
• South Africa's energy sector poses a risk due to potential electricity supply shortfalls.
• Water scarcity is a major concern in South Africa.

Mitigation Strategies

• Launched "Zero harm in action" program to improve safety.
• Implemented various energy efficiency projects (heat pumps, air network optimization).
• Set energy-efficiency targets and plans to meet them.
• Set water-efficiency targets and plans to meet them.
• Developed a water-scarcity-abatement program.
• Engaging with the Department of Water Affairs to obtain water-use licenses.
• Working with Eskom on energy-saving projects.
• Exploring options to maximize use of treated sewage effluent.

Supply Chain Management

Supplier Audits: 20 audits in 2011

Responsible Procurement

• Preferential procurement from HDSAs; focus on local HDSA companies.

Climate-Related Risks & Opportunities

Physical Risks

• Droughts, flooding

Transition Risks

• Carbon tax, regulatory changes

Opportunities

• Development of energy-efficient products (fuel cells).

Reporting Standards

Frameworks Used: GRI G3 Application Level A+

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: PricewaterhouseCoopers (PwC)

Sustainable Products & Innovation

• Ethylene scavenger (E+™) technology; fuel cell technology.

Awards & Recognition

• Top gender-empowered company; ranked first in environmental reporting (Newsweek); ranked fourth in Excellence in Sustainability Reporting.

Environmental Metrics

ESG Focus Areas

• Optimising production
• Stakeholder relationships
• Health and safety
• Environmental impact management
• Compliance

Environmental Achievements

• Reduced absolute energy consumption by 9.2%
• Reduced total new-water consumption from 33.4 million m³ in 2013 to 27.1 million m³ in 2014
• Reduced waste to landfill by 55% since 2008

Social Achievements

• Launched Nkululeko, an employee financial wellness program to assist with debt management
• Increased representation of historically disadvantaged South Africans (HDSAs) to 63% of management
• Invested R236 million in community development in South Africa

Governance Achievements

• Met all Mining Charter requirements for 2014
• Maintained ISO 14001 certification across all operations
• Implemented a responsible sourcing program with suppliers

Climate Goals & Targets

Environmental Challenges

• Five-month strike at 60% of operations
• Challenging global market conditions
• Labour instability exacerbated by inter-union conflict
• High levels of employee indebtedness
• Security of energy supply

Mitigation Strategies

• Three-year agreement signed with AMCU to conclude the strike
• Cost-effective mine operations to ensure profitability
• Tshiamo (wellness) process to rebuild workplace relationships
• Nkululeko financial wellness program for employees
• Collaboration with Eskom to manage power outages

Supply Chain Management

Supplier Audits: 19 supplier sites audited

Responsible Procurement

• Local procurement policy
• BEE compliance requirements
• Responsible sourcing program

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Emerging carbon regulation
• Increases in energy costs

Opportunities

• Development of fuel-cell technology

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers Inc

Sustainable Products & Innovation

• Fuel-cell technology for rural electrification and mining equipment

Awards & Recognition

• Top ranked mining company on the JSE Socially Responsible Investment (SRI) Index
• Climate Performance Leadership Index
• SAIMM MineSAFE awards

Environmental Metrics

ESG Focus Areas

• Safety and health
• Community benefits
• Environmental stewardship
• Government cooperation and compliance
• Stakeholder engagement

Environmental Achievements

• Energy consumption down 7.2%
• Water consumption down 15.9%
• Waste to landfill down 19.3%
• Zero level 3, 4, and 5 environmental incidents

Social Achievements

• R547 million spent on corporate social investment (including Unki Mine)
• 44% of indebted employees enrolled in Nkululeko financial wellness program
• Improved HIV/AIDS and TB programs with increased ART uptake

Governance Achievements

• Awarded 2016 Best Corporate Governance in Mining in Africa award
• Improved safety performance with best ever fatality-free performance post-May 2015
• Continued progress in aligning with GRI G4 guidelines

Climate Goals & Targets

Environmental Challenges

• Challenging macro-economic environment with depressed commodity prices
• Social unrest and community protests (e.g., Mogalakwena)
• High employee indebtedness
• High absenteeism (8.62%) due to labor instability
• Challenges with waste to landfill target due to contractor management and infrastructure

Mitigation Strategies

• Asset sales and portfolio restructuring
• Modernization of operations and mechanization
• Improved stakeholder engagement and communication
• Nkululeko financial wellness program
• Addressing underlying causes of social unrest through task forces and collaboration
• Improved contractor management and infrastructure development

Supply Chain Management

Responsible Procurement

• Preferential procurement for local and BEE-compliant businesses, supplier development, enterprise development

Climate-Related Risks & Opportunities

Transition Risks

• Emerging carbon regulation, increases in energy costs

Opportunities

• Commercial opportunities in fuel cell markets

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001

Third-party Assurance: PwC

Sustainable Products & Innovation

• Platinum-based fuel cells

Awards & Recognition

• 2016 Best Corporate Governance in Mining in Africa award
• CDP gold certificate for consistent high-level carbon disclosure

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Environment
• Socio-political
• People
• Climate Change
• Water
• Mine Closure
• Responsible Divestment
• Human Rights
• Community Development
• Governance

Environmental Achievements

• ECO2MAN energy- and GHG-reduction programme prevented 4.5 million tonnes of CO2-equivalent emissions; energy savings of 5.8 million GJ, representing energy cost savings of approximately $90 million
• Water-saving projects saved 23 million m3 of water; total new-water consumption decreased by 14% from 222 million m3 in 2015 to 191 million m3 in 2016
• 85% of non-mineral waste recycled by Iron Ore Brazil

Social Achievements

• Eliminated serious non-compliances with internal standards for community issues for the first time; almost halved moderate non-compliances, with overall compliance reaching 84%
• Partnership with Inter-American Development Bank and TechnoServe to enhance enterprise and supplier development efforts in South America
• 24% reduction in total recordable case frequency rate

Governance Achievements

• Achieved full compliance with the UK Corporate Governance Code
• Implemented a new Code of Conduct
• Shareholder resolution supporting strategic climate resilience passed at AGM

Climate Goals & Targets

Environmental Challenges

• Continued commodity price volatility
• High-profile environmental incidents and bribery allegations in the industry
• Steep rise in fatal injuries (11 lives lost)
• Social instability and community unrest in South Africa
• Water scarcity in several operating regions
• Climate change impacts on operations and communities

Mitigation Strategies

• Sustainably improved cash flow generation and materially strengthened balance sheet through asset disposals
• Launched dedicated safety culture programme; increased safety-critical controls and safety initiatives
• Implemented updated Social Way management standard for community issues
• Developed new water management standard and guidelines; working towards ambitious water savings targets
• Integrated climate risk responses into Operating Model; partnered with UK Met Office on high-resolution climate modelling
• Developed regional approach to development in Limpopo province, South Africa

Supply Chain Management

Supplier Audits: Audits undertaken at six suppliers (30% of total supplier expenditure)

Responsible Procurement

• Responsible Sourcing Standard for Suppliers; self-assessment questionnaires; audit rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Drought
• Increasing temperatures

Transition Risks

• Changes in product demand
• Climate regulation and taxation

Opportunities

• Development of low-emission technologies; increased demand for copper and PGMs in low-carbon economy

Reporting Standards

Frameworks Used: ICMM Sustainable Development Framework, GRI G4 Guidelines and Mining and Metals Supplement, EU Non-Financial Disclosure Directive, UN Global Compact Reporting Framework, UN Guiding Principles Reporting Framework

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• PwC Building Public Trust award for tax reporting

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Environmental impacts and climate change
• Meeting our commitments to governments and society
• Workforce culture and capability
• Operational and cost performance
• Political and regulatory
• Macro-economic environment

Environmental Achievements

• 4.8 million tonnes of carbon-dioxide-equivalent emissions saved
• 6.4 million GJ of energy saved
• Recycling of mixed rubber that was previously sent to landfill (Iron Ore Brazil)
• 88% recycling of non-mineral waste (Iron Ore Brazil)

Social Achievements

• 11% decrease in the recordable injury rate
• 76,000 workforce members participated in HIV testing
• 23% of total supplier expenditure on local procurement
• 120,812 jobs created and maintained through enterprise development programmes

Governance Achievements

• Launched a new Code of Conduct
• More than 3,400 leaders trained to facilitate Code of Conduct engagement sessions
• More than 65 business integrity workshops hosted

Climate Goals & Targets

Environmental Challenges

• Nine fatalities at operations in 2017
• High turnover of front-line supervisors and managers affecting safety performance (Platinum)
• Social instability leading to community unrest (South Africa)
• Water stress at nearly 50% of sites
• Climate variability and extreme weather events
• High salinity and acid rock drainage at some operations
• Potential impacts of climate change on portfolio
• Complexity of environmental impacts, inadequate financial provisioning, lack of cross-disciplinary collaboration and short term operational pressures (mine closure)

Mitigation Strategies

• Significant operational interventions to manage activity risks to end fatal incidents
• Accelerating recruitment process, re-evaluating incentive schemes, wellness programmes (Platinum)
• Working towards ambitious targets for host-community education, health and employment
• Investing in advanced technology and partnerships to contribute positively to water preservation
• Developing regional water plans for high-risk regions
• Using hydrogeological models to identify potential risks related to seepage from tailings dams
• Implementing the new water-management standard and associated reporting requirements
• Undertaking climate-modelling and -adaptation exercises
• Implementing the Anglo American Mine Closure Toolbox and Integrated Closure Planning System
• Developing detailed rehabilitation plans

Supply Chain Management

Supplier Audits: 18 audits (2017)

Responsible Procurement

• Responsible Sourcing Standard for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Floods

Transition Risks

• Changes in demand for thermal coal
• Government policies limiting the sale of internal combustion engine vehicles

Opportunities

• Increased demand for copper, nickel, and PGMs in low-carbon technologies
• Development of energy-efficient products

Reporting Standards

Frameworks Used: ICMM Sustainable Development Framework, Global Reporting Initiative Standards, EU Non-Financial Disclosure Directive, UN Global Compact Reporting Framework, UN Guiding Principles Reporting Framework

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best employee engagement programme award (CorpComms 2017)

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Environment
• Social matters
• Governance
• Climate Change
• Water Management
• Biodiversity
• Human Rights
• Community Development
• Workforce Diversity and Inclusion

Environmental Achievements

• Reduced greenhouse gas emissions by 6.1 Mt CO2e (25% reduction relative to BAU)
• Reduced total energy consumption to 85 million GJ (6.5% reduction relative to BAU)
• Reduced total water withdrawals to 227.5 million m3 (2017: 306.3 million m3)

Social Achievements

• Improved total recordable case frequency rate (TRCFR) by 16% to 2.66 (2017: 3.17)
• Launched GemFair™ program to create a secure and transparent route to market for ethically sourced artisanal and small-scale mined diamonds
• Increased proportion of women in senior management roles from 15% to 21%

Governance Achievements

• Full compliance with the UK Corporate Governance Code (2016)
• Completed external evaluation of the Board, its committees, and individual directors
• Strengthened balance sheet, reducing net debt by $1.7 billion

Climate Goals & Targets

Environmental Challenges

• Five fatal incidents at managed operations (all in South Africa)
• Pipeline spills at Minas-Rio iron ore operation resulting in fines and production loss
• Third-party rail constraints impacting iron ore production at Kumba
• Water scarcity at 70% of operations
• Political and regulatory uncertainty in operating countries
• Potential for corruption in some operating countries
• Unplanned operational stoppages
• Cybersecurity threats
• Declining ore grades
• Increased competition from synthetic diamonds

Mitigation Strategies

• Launched Elimination of Fatalities Taskforce
• Assessed pipeline integrity and reviewed maintenance strategy at Minas-Rio
• Improved product quality at Kumba to maximize value of railed tonnes
• Implemented catchment-based approach to water management
• Active engagement with governments and stakeholders
• Comprehensive anti-bribery and corruption policy and program
• Implementation of Operating Model
• Employed specialist third party to oversee network security
• Investment in technology and innovation (FutureSmart Mining™)
• Comprehensive strategy to mitigate risk of synthetic diamonds

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Standard for Suppliers
• Local Procurement Policy
• Inclusive procurement strategies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Framework

UN Sustainable Development Goals

• UN's 2030 Sustainable Development Goals

The Sustainable Mining Plan is aligned with the UN SDGs

Environmental Metrics

ESG Focus Areas

• Ethical business practices and corporate governance
• Sustainable development integration into decision-making
• Human rights
• Risk management
• Health and safety
• Environmental performance
• Biodiversity conservation
• Responsible product lifecycle management
• Community development
• Stakeholder engagement and reporting

Environmental Achievements

• Launched concurrent rehabilitation strategy to establish leadership in land stewardship
• Implemented Anglo American Mineral Residue Standard for safe waste disposal
• Aligned SHE Way with ISO 14001 for environmental management system improvement

Social Achievements

• Launched TEAM+ to promote team collaboration and shared goals
• Established Global Workforce Advisory Panel for employee engagement
• Updated Social Way framework, incorporating Socio-Economic Toolbox guidance
• Expanded Mine Closure Toolbox to include social transition focus
• 8,500 employees trained on Code of Conduct
• 39,000 employees responded to employee engagement survey
• 15,000 employees responded to diversity and inclusion survey

Governance Achievements

• Launched Purpose statement “Reimagine mining to improve people’s lives”
• Redefined and rebranded six company values
• Implemented Business Integrity Policy and 11 Prevention of Corruption Procedures
• No political donations made in 2019
• Launched Bullying, Harassment and Victimisation policy

Climate Goals & Targets

Environmental Challenges

• Managing material sustainable development risks and opportunities
• Addressing stakeholder expectations regarding sustainability performance
• Ensuring compliance with evolving regulations (e.g., REACH, Korea REACH)
• Rehabilitating mines to leave a positive environmental legacy
• Reducing backlog of disturbed land requiring rehabilitation

Mitigation Strategies

• Implementation of sustainability standards (SHE Way, Social Way, etc.)
• Use of Group Technical Standards for managing specific sustainability issues
• Responsible sourcing program for suppliers
• Concurrent rehabilitation strategy
• Continuous risk management through Anglo American Operating Model

Supply Chain Management

Responsible Procurement

• Anglo American Responsible Sourcing Standard for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ICMM Assurance Procedure, GRI Standards (self-declared application level)

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• Trusted corporate leader
• Healthy environment
• Thriving communities

Sustainable Mining Plan goals aligned with UN Sustainable Development Goals

Environmental Metrics

ESG Focus Areas

• Safety and Health
• Environment
• Socio-political
• People
• Climate Change
• Biodiversity
• Water
• Circular Economy
• Community Relations
• Socio-economic Development
• Human Rights
• Governance
• Ethical Value Chains

Environmental Achievements

• 8% energy consumption saving by 2020 against business as usual (BAU) projection
• 34% GHG emissions saving by 2020 against BAU projection
• 10% reduction in freshwater abstraction
• 80% of annual targets achieved on journey to full implementation of Social Way V3.0 by end-2022
• Zero Level 4 or Level 5 environmental incidents

Social Achievements

• Launched Social Way 3.0, a new integrated social performance management system
• 80% of Social Way 3.0 roll-out milestones met by end 2020
• 23% of Social Way 3.0 requirements fulfilled by end 2020
• Increased female representation in senior management positions to 27% (target: 33% by 2023)
• Increased female representation in management positions to 27% (2019: 24%)
• $10.0bn spent with local suppliers (2019: $9.1bn)
• 137,777 jobs supported by enterprise development initiatives (2019: 132,082)

Governance Achievements

• New Group tax strategy approved by the Board
• Updated SHE Policy focusing on achieving a ‘zero mindset’

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic causing disruptions to operations and supply chains
• Two work-related fatalities at managed operations
• Three fatalities at independently managed joint operations
• One Level 3 water incident at PGMs business
• Challenges in meeting water reduction targets due to drought conditions and increased production
• Challenges in meeting biodiversity targets due to Covid-19 restrictions
• Challenges in achieving zero waste to landfill targets

Mitigation Strategies

• Implemented WeCare programme to protect employee and community health and well-being
• Implemented various safety interventions to reduce injury frequency rates
• Launched Elimination of Fatalities programme
• Implemented remote data monitoring for environmental management
• Developed and implemented Social Way 3.0
• Developed and implemented a virtual supplier assessment protocol
• Developed a Group Materials Stewardship Strategy

Supply Chain Management

Supplier Audits: 4 on-site assessments in 2020

Responsible Procurement

• Responsible Sourcing Standard
• Supplier self-assessment questionnaires
• Third-party on-site assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Declining internal combustion engine manufacturing

Opportunities

• Development of energy-efficient products
• Growth in demand for metals and minerals needed for a low-carbon economy

Reporting Standards

Frameworks Used: ICMM Sustainable Development Framework, GRI Standards, EU Non-Financial Disclosure Directive, UN Global Compact Reporting Framework, UN Guiding Principles Reporting Framework

Certifications: ISO 45001, ISO 14001

Third-party Assurance: IBIS Consulting

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through various programs and commitments

Sustainable Products & Innovation

• Polyhalite fertilizer (Woodsmith project)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety and health
• Environment
• Socio-political
• Climate Change
• Biodiversity
• Water
• Circular Economy
• Social Performance
• Human Rights
• Responsible Supply Chain Management
• Business Conduct
• Socio-economic contribution
• Collaborative Regional Development
• Governance

Environmental Achievements

• Reduced GHG emissions (Scopes 1 and 2) by 8% compared with 2020.
• Achieved 100% renewable electricity supply across operations in Brazil, Chile, and Peru.
• 983 hectares reshaped at open cut operations in 2021.
• Achieved 83% water efficiency (recycling and reuse) across the Group.

Social Achievements

• Launched refreshed SHE Way V2, including new technical specifications and toolkit for best practices.
• Made up to $30 million available to support global Covid-19 vaccine rollout.
• Established several Remote Health Operation Centres to manage Covid-19 and ‘long Covid’.
• Implemented Social Way 3.0, achieving 49% of requirements in 2021.
• Launched CircuLab, an internal circular economy incubator.
• Expanded Collaborative Regional Development programmes.

Governance Achievements

• Refreshed Board composition.
• Implemented a new Risk and Assurance Governance Framework.
• Launched a new Emergency Management Standard.
• Updated SHE Policy and SHE Way V2.
• Deployed the first integrated Compliance Management System.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting operations and communities.
• Plateauing injury rate after years of improvement.
• Material supply and labour issues impacting rehabilitation work.
• Challenges in achieving full Social Way 3.0 implementation.
• Uncertainty around longer-term impacts of climate change.

Mitigation Strategies

• Implemented WeCare programme for Covid-19 response.
• Increased focus on building safety capability and supporting safe behaviours.
• Implemented action plans to address gaps identified in rehabilitation plans.
• Launched comprehensive learning programme for Social Way 3.0.
• Developed proprietary climate change scenarios to assess resilience.

Supply Chain Management

Supplier Audits: 163 self-assessment questionnaires completed (2021)

Responsible Procurement

• Responsible Sourcing Standard
• Supplier self-assessment questionnaire
• Third-party on-site assessments
• Informed 365 platform for supplier self-assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic shifts in climate patterns

Transition Risks

• Changes in demand for products
• Regulatory changes
• Technological changes

Opportunities

• Development of low-carbon products and services
• Growth in demand for future-enabling metals and minerals

Reporting Standards

Frameworks Used: ICMM Sustainable Development Framework, GRI Standards, EU Non-Financial Disclosure Directive, UN Global Compact Reporting Framework, UN Guiding Principles Reporting Framework

Certifications: ISO 45001, ISO 14001, IRMA, RJC, Copper Mark

Third-party Assurance: IBIS Consulting

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

Initiatives aligned with Sustainable Mining Plan and various programmes supporting health, education, economic development, and environmental protection.

Sustainable Products & Innovation

• POLY4 polyhalite fertiliser
• Green hydrogen-powered haul truck

Awards & Recognition

• Ranked number 11 on Inclusive Companies’ Top 50 Inclusive Employers in the UK

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water
• Safety
• Health
• Social Performance
• Community Development
• Human Rights
• Governance
• Ethical Value Chains

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions by 9% to 13.3 Mt CO2e in 2022 (compared to 14.5 Mt CO2e in 2021).
• Reduced fresh water withdrawals by 3% to 35,910 ML in 2022 (compared to 36,888 ML in 2021).
• Secured 100% renewable electricity for Australian operations from 2025.
• All South American operations will be powered by 100% renewable energy from 2023.
• Achieved 82% completion of total closure rehabilitation work at Victor mine by the end of 2022.

Social Achievements

• Launched Living with Dignity Hub in South Africa to address harmful workplace behavior.
• Supported 114,534 jobs through socio-economic development programs since 2018.
• Implemented Social Way 3.0 at 66% of sites by the end of 2022.
• Launched Moquegua Crece, a collaborative regional development partnership in Peru.
• 87% of employees received heart health scores and reports by the end of 2022.

Governance Achievements

• Improved integrated Compliance Management System (CMS).
• Updated Code of Conduct and nearly 40% of supporting Group policies.
• Implemented Risk and Assurance Governance Framework.
• Aligned Group Technical Standard with Global Industry Standard on Tailings Management (GISTM).

Climate Goals & Targets

Environmental Challenges

• Two work-related fatalities at managed operations in 2022.
• Increased incidents of gender-based violence in some operating areas.
• Climate change impacts affecting operations and communities.
• Supply chain disruptions affecting rehabilitation work.
• Complex permitting environment leading to delays.

Mitigation Strategies

• Emphasis on safety vigilance and employee reporting of unsafe situations.
• Establishment of Living with Dignity Hub and other initiatives to address GBV.
• Climate change scenario analysis to assess physical and transition risks.
• Development of alternative sourcing strategies for rehabilitation materials.
• Improved internal permitting procedures and collaborative stakeholder engagement.

Supply Chain Management

Supplier Audits: 216 suppliers completed self-assessment questionnaires (2022)

Responsible Procurement

• Responsible Sourcing Standard for Suppliers
• Modern Slavery Act compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Changes in demand for products
• Regulatory changes

Opportunities

• Growth in demand for metals and minerals supporting green transition

Reporting Standards

Frameworks Used: ICMM Mining Principles, GRI Standards, EU Non-Financial Disclosure Directive, UN Global Compact Reporting Framework, UN Guiding Principles Reporting Framework, TCFD

Certifications: ISO 14001, ISO 45001, Responsible Jewellery Council, Copper Mark

Third-party Assurance: IBIS Consulting

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Metals and minerals supporting green transition

Awards & Recognition

• Brandon Hall Award for best advance in compliance training
• SAGEA award for No.1 Mining & Resources Employer of Choice
• UK’s Disability Smart Awards 2022
• UK's Top 50 most inclusive companies

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Social
• Governance
• Biodiversity
• Rehabilitation
• Climate Change
• Water Reduction
• Community Support
• Responsible Mining

Environmental Achievements

• Reduced GHG emissions (Scopes 1 & 2) to 12.5 Mt CO2e in 2023 from 13.3 Mt CO2e in 2022. On track to reduce absolute GHG emissions by 30% by 2030.
• Reduced fresh water withdrawals by 22% against the 2015 baseline (48,666 ML). On track for 2030 target of 50% reduction.
• 100% renewable energy across South American operations.
• 100% renewable energy across Australian operations (by 2025).
• Significant progress towards the delivery of solar and wind power to operations via Envusa Energy.
• Implementation of large-scale VAM abatement technology in Australia.
• Enhanced operational methane capture and utilisation programme implemented in Australia.

Social Achievements

• Exceeded 2023 target of 33% women in management, achieving 34%.
• Supported 139,308 off-site jobs in 2023 (cumulative since 2018).
• Implementation of Social Way management system.
• Robust Stakeholder Engagement framework established.

Governance Achievements

• ESG targets integrated into Long-Term Incentive Plans (LTIPs).
• SHE and ESG targets included in annual bonus schemes for all employees.
• 14 operations assured against recognised responsible mine certification systems (target of 19 by 2025).

Climate Goals & Targets

Environmental Challenges

• Achieving zero work-related fatal injuries (3 fatalities in 2023).
• Full implementation of Social Way 3.0 by end of 2022 (behind schedule).
• Reducing Scope 3 emissions (50% reduction ambition by 2040).

Mitigation Strategies

• Independently led investigations with Subject Matter Experts to improve safety.
• Strengthened site supervision, improved onboarding of contracted workforce, and human-centered design of work processes.
• Investment in innovative technology and design to improve safety.
• Implementation of various initiatives to reduce water abstraction and GHG emissions.
• Driving scope 3 emissions reduction within sphere of influence and control.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Development of renewable energy supply for sites

Environmental Metrics

ESG Focus Areas

• Safety
• Climate Change
• Water Management
• Socio-economic Development
• Ethical Value Chains
• Biodiversity
• Community Engagement
• Air Quality

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 26% relative to peak emissions in 2019
• Reduced freshwater usage by 22% below the 2015 baseline
• 100% renewable electricity across South American operations since 2021
• Reduced fresh water use by almost 50% since 2015 in Chilean operations
• Los Bronces reuses about 90% of water used in mining process
• Commitment to UN to become water resilient at Los Bronces by 2030
• Secured desalinated water supply for Los Bronces from 2026
• Collahuasi desalination plant under construction to reduce freshwater abstraction by 60%
• Hydraulic Dewatered Stacking technology at El Soldado recovers around 80% of water
• Chile’s first Blue Carbon initiative launched
• Acquired 11,000-hectare Los Nogales Sanctuary for biodiversity conservation
• Supported creation of a National Park in the Rio Olivares area

Social Achievements

• Supported over ~140,000 jobs outside of mines
• 14 operations underwent third-party audits against responsible mine certification systems (including IRMA, with six receiving IRMA 75)
• Extensive engagement with community and local government at Quellaveco (Dialogue Table)
• Los Bronces Integrated project citizen participation processes
• Aligning with principles of the Escazú Agreement in Chile
• Modelo Pionero program supporting 41 schools and over 16,000 students
• Smiles for Life program awarded “Smile Grant 2024” by World Dental Federation
• Emerge program supporting over 5,000 entrepreneurs
• EmpleaT Programme facilitating job transitions
• National Accountability and Sustainability Forum launched

Governance Achievements

• Five times more first-line safety verification events for contractors than when program was first introduced
• Commitment to offsetting 150% of Los Bronces Integrated project's total emissions per year

Climate Goals & Targets

Environmental Challenges

• Two fatalities in the PGMs business in 2024
• Challenges in bringing on new copper supply (sustainability and permitting, water and community issues)
• Climate change impacts (droughts and unusual precipitation in Chile)
• Sustained price increases of supplies
• Evolving societal expectations
• Complex geopolitical context
• Air pollution in Santiago

Mitigation Strategies

• Focus on operational leaders' field engagements, plan-do-check-act principle, and Contractor Performance Management program to improve safety
• Innovative approach to sustainability and license to operate issues (Quellaveco)
• Adapting operations to climate change impacts (water sourcing, project design)
• Collaborations and partnerships to address sustainability challenges
• Citizen participation processes and alignment with Escazú Agreement
• Technological innovation (Coarse Particle Recovery, Hydraulic Dewatered Stacking)
• Desalination plants (Los Bronces and Collahuasi)
• Integrated Remote Operation Centre (IROC) and autonomous trucks to improve productivity, safety, and reduce emissions
• Initiatives to offset emissions and reduce air pollution in Santiago (e.g., replacing wood-burning heaters)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Unusual precipitation

Reporting Standards

Frameworks Used: IRMA

Certifications: Copper Mark (Chilean operations), Energy management certifications

Awards & Recognition

• Smile Grant 2024 (Smiles for Life program)