Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and health
• Market conditions
• Repositioned portfolio returns/financial
• Capital allocation
• Ethics, integrity and reputation
• Political and regulatory environment
• Socio-political
• Stakeholder engagement and communications
• Modernisation
• Environment

Environmental Achievements

• Energy consumption down 13%
• Total water used down 1.9%
• Waste to landfill down 3.9%
• 0 level 3, 4 and 5 environmental incidents – target achieved

Social Achievements

• TB-related deaths dropped to four from 63 in 2013
• 86% of HIV-positive employees are on antiretroviral treatment
• Corporate social investment R301.1 million (excludes overhead costs)
• Project Alchemy: Trusts worth R142 million established in five host communities; two more totalling R200 million nearing finalisation
• 72% of discretionary spend with black companies

Governance Achievements

• Adopted and rolled out a revised code of conduct
• Reintroduced a base dividend

Climate Goals & Targets

Environmental Challenges

• Depressed commodity prices and demand
• Skills and education deficiencies
• Growing activism with unrealistic expectations
• Access to water at some mines
• Safety behaviour, available capex
• Changing global economic conditions affect our markets
• Strategically repositioning our portfolio
• Stringent capital allocation and control
• Mining companies face regional and global scrutiny
• Changes in the political environment can impact our business
• Socio-economic conditions
• High community needs, due to high unemployment
• Modernisation is the key way to optimise production
• Minimising harm to the environment

Mitigation Strategies

• Restructured business (removed loss-making production), repositioned portfolio (exited high-cost mines), improved operational performance
• Stringent capital allocation and control will enhance liquidity and generate positive cash flows
• Conforming to formal ethical standards of conduct
• Focus on building sound relationships around our operations
• Engaging with our stakeholders
• Modernisation is the key way to optimise production, increase efficiency and improve safety and health performance
• Minimising harm to the environment is central to our planning, operational and mine-closure activities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preferential procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Framework of the International Integrated Reporting Council, South African Companies Act 71 2008, JSE Listings Requirements, King Report on Corporate Governance for South Africa (King IV), Global Reporting Initiative (Standards 2016)

Certifications: Null

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• PlatAfrica Awards

Environmental Metrics

ESG Focus Areas

• Financial Performance
• Cost Management
• Environmental Sustainability
• Social Investment
• Tax Contribution
• Risk Management
• Governance

Environmental Achievements

• Expenditure on SO2 abatement plant for Polokwane smelter (R0.4 billion in 2018, with a further R2.0 billion planned over the next five years)
• Total rehabilitation and decommissioning provision of R1.9 billion at the end of 2018 (2017: R1.7 billion)

Social Achievements

• Social investment, community development and empowerment spend of R0.6 billion in 2018
• Increased dividend payout ratio to 40% of headline earnings

Governance Achievements

• Rigorous SIB governance process ensuring sustainable capital focused on safety, business continuity, and regulatory compliance
• Active engagement with tax authorities and governments on tax matters

Climate Goals & Targets

Environmental Challenges

• Input cost inflation of 6.6% in 2018
• Inflationary pressures from wage increases and electricity costs
• Volatility in metal prices and exchange rates
• Uncertainty in the global economic outlook

Mitigation Strategies

• Restructuring the company and implementing various initiatives to mitigate costs
• Strict cost control and focus on operational efficiencies to enhance margins and generate sustainable cash flow
• Disciplined capital expenditure
• Focus on low-capex, fast-payback, value-accretive projects

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Climate Change
• Community Development
• Social Investment
• Transformation
• Supplier Development

Environmental Achievements

• Reduced energy intensity by 10% since 2016
• Reduced greenhouse gas emissions by 7% since 2016
• R2.5 billion investment to reduce sulphur dioxide emissions at Polokwane smelter
• Zero major environmental incidents (level 4 to 5) since 2013
• Significant decrease in waste sent to landfill (4,115.96t in 2019 compared to 21,300t in 2016)

Social Achievements

• Zero fatalities at managed mines in 2019
• Reduced total recordable case frequency rate (TRCFR) by more than half in six years
• Reduced employee TB deaths to three in 2019 from 63 in 2013
• 97% of employees know their HIV status, 91% of those infected are on treatment, and 90% have viral load suppression
• R392 million spent on social investment in 2019
• R227 million in dividends paid to community trusts in 2019
• Three-year wage agreement reached with unions in 2019 without strike action
• 6.59% of total payroll spent on training and development in 2019
• Implementation of an employee share ownership plan in 2019
• Extension of financial wellness program (Nkululeko) to 8,863 employees
• Creation of over 1,200 jobs through flagship projects
• Over 10,000 learners benefited from education support program
• 72% of discretionary spend with black-owned and black-empowered suppliers in 2019
• 72 new contracts awarded to host community SMMEs with an estimated value of R435 million

Governance Achievements

• Improved productivity
• Increased representation of designated groups at management levels
• Declaration of a special dividend

Climate Goals & Targets

Environmental Challenges

• Eskom power shortages
• Strike action at Mototolo
• Operational challenges at Amandelbult and Mototolo
• Community protests at Mototolo resulting in lost production days
• Lack of employment and procurement opportunities in host communities
• Ongoing lack of municipal service delivery
• Rock-fall risk-mitigation measures at Zwartfontein pit

Mitigation Strategies

• Risk training and critical control management
• Reporting and learning from high-potential incidents
• Continued engagement with communities, local government officials, and police
• Delivery on social and labour plans (SLPs)
• Investment in new mining equipment and trucks at Mogalakwena
• Mining exposed ore tonnage area at Mogalakwena
• Transitioning mining from Tumela upper section to Dishaba lower section at Amandelbult
• Improved underground mining efficiencies at Unki
• Addressing adverse geological features at Mototolo
• Comprehensive review of tailings storage facilities

Supply Chain Management

Responsible Procurement

• 72% of discretionary spend with black-owned and black-empowered suppliers

Climate-Related Risks & Opportunities

Awards & Recognition

• Top employer in the mining sector

Environmental Metrics

ESG Focus Areas

• Good Governance
• Safety and Health
• Thriving Communities
• Healthy Environment

Environmental Achievements

• Reduced GHG emissions by 22% against business-as-usual projections
• Reduced energy consumption by 11% below year-end target
• Reduced freshwater abstraction by 2%
• Increased water recycling to 60%
• Achieved zero level 4 and 5 environmental incidents
• Achieved zero waste to landfill for all waste streams with reuse/recycled solutions

Social Achievements

• 80% of management comprises historically disadvantaged South Africans
• Women make up 25% of management and 20% of the workforce
• R803 million total social spend
• R3.8 billion host community procurement
• Implemented WeCare programme totalling R500 million for Covid-19 relief

Governance Achievements

• Prime rating from ISS
• Improved Sustainalytics ranking
• ESG leader among top 5 platinum and precious metal peers by FTSE Russell
• Maintained inclusion in Bloomberg Gender-Equality Index

Climate Goals & Targets

Environmental Challenges

• Covid-19 affecting stakeholder engagement and socio-economic development project delivery
• Illegal artisanal and small-scale mining
• Municipal instability and limited capacity to deliver services
• Unstable socio-political landscape
• Increased demands for procurement opportunities
• Water security issues
• High unemployment and poverty
• Increased community demands
• Land access and resettlement issues
• Regulatory compliance risk
• Energy security/unreliable power supply
• Lack of municipal capacity and service delivery
• Skills shortage
• Gender-based violence
• Cyber-risk
• Rising energy and carbon tax
• Long-term security of reliable and adequate supply of electricity
• Uncertainty on emerging carbon-pricing policies

Mitigation Strategies

• Developed and implemented comprehensive response plans to mitigate Covid-19 impacts
• Implemented tailored five-year plans in response to group, business unit and local priorities
• Dedicated teams responsible for executing strategy and plans for advancing local procurement; managing human rights issues; and supporting the financial and mental wellbeing of the workforce
• Ongoing investment in community education and improving healthcare systems
• Focus on market development
• Commitment to alternative and renewable energy
• Stringent responsible-sourcing policies across the extended supply chain
• Stringent responsible-sourcing policies across the extended supply chain
• Increased levels of support to mining communities
• Advocacy activities at board and leadership levels
• Stringent responsible-sourcing policies across the extended supply chain
• Investment in digitisation and automation, requiring workforce development
• Specific initiatives to ensure Anglo American Platinum and its workforce are properly enabled and protected
• Commitment to becoming a carbon-neutral business
• Initiatives focused on creating waterless mining operations
• Integrated and embedded critical-resource management plans
• Predictive environmental monitoring
• Implementation of roadmap for achieving group goals of 30% reduction in energy intensity and GHG emissions by 2030 and carbon neutrality by 2040
• Implementation of a large-scale solar PV plant

Supply Chain Management

Supplier Audits: 50% of Anglo American Platinum operations with third-party audits against recognised responsible-mine certification system by 2025

Responsible Procurement

• Anglo American responsible sourcing standard for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Rising energy and carbon tax
• Uncertainty on emerging carbon-pricing policies

Opportunities

• Development of energy-efficient products
• Growth in renewable power generation
• Opportunities for emerging applications, including hybrid and hydrogen fuel cell electric vehicles

Reporting Standards

Frameworks Used: International Integrated Reporting Council Framework, South African Companies Act 71 of 2008, JSE Listings Requirements, King Report on Corporate Governance for South Africa 2016 (King IV), GRI Standards 2016, Anglo American plc group safety and sustainable development indicators

Certifications: ISO 14001, IRMA 75 for Unki Mine

Third-party Assurance: Independent auditor’s assurance report

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Sustainable mining plan aligns with and contributes to these goals

Sustainable Products & Innovation

• Green hydrogen
• Sulphuric acid from SO2 abatement

Awards & Recognition

• CDP 'A' list for climate change and water security

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Stewardship
• Waste Management
• Occupational Health and Safety
• Human Rights
• Community Relations
• Responsible Sourcing
• Diversity and Inclusion
• Ethical Business Conduct

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2021, AccountAbility AA1000AP (2018), TCFD

Certifications: Null

Third-party Assurance: IBIS Environmental Social Governance Consulting Africa (Pty) Ltd

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed