Anglo American Plc · LSE:AAL
Anglo American — ESG Presentation (April 2003)
40 slides from Anglo American's sustainability presentation, Apr 29, 2003
Slide 1: Presentation on Sustainable Development and Corporate Responsibility Issues
PRESENTATION ON SUSTAINABLE DEVELOPMENT AND CORPORATE RESPONSIBILITY ISSUES 29 April 2003 Anglo American
Slide 2: Presentation Team
Presentation Team Sir Mark Moody-Stuart – Chairman John Groom – Safety, Health and Environment Russell King – Human Resources and Business Development Nick Von Schirnding – Investor and Corporate Affairs Edward Bickham – External Affairs
Slide 3: Safety, Health & Environment
Safety, Health & Environment Dr John Groom
Slide 4: Global Mining Initiative
Global Mining Initiative • Mining, Minerals and Sustainable Development project • GMI Conference, Toronto • International Council on Mining and Metals - Characterised by intensive engagement with stakeholders - Provided a solid basis for our participation at the Johannesburg World Summit on Sustaina
Slide 5: International Council on Mining and Metals
International Council on Mining and Metals • SD Charter – A commitment to 10 key principles – A commitment to be measured against them • International engagement – Global Reporting Initiative – Community Engagement tools project with the World Bank – World Bank Extractive Industries Review – Extract
Slide 6: Report to Society
Report to Society Scope now expanded to become an SD Report • Business practices & performance • Workplace – Safety – Occupational health – Human resources • Environment • Society – Community health – Social & community initiatives – Economic contribution Benchmarked against the GRI core indicators
Slide 7: Environment
Environment • Risk based prioritising – Tackling global issues: using local illustrations • Energy and greenhouse gases – Much improved linkage to units of production – Climate change policy – Value-at-risk study completed • ISO 14001 certification now covers 51% of turnover. The target is full cert
Slide 8: Environment
Environment • Water management – Still reporting in aggregate – Future focus will be on individual businesses where water issues are a priority – For example, Lisheen, Namakwa Sands, Mantos Blancos and Mondi Paper have innovative water-use strategies
Slide 9: Biodiversity
Biodiversity • Clear strategy • Site biodiversity action plans to be developed (where not already in place) – Link to environmental impact assessment and closure planning • Corporate contributions to the global challenge – Kew Millenium Seedbank – Active partners in the ICMM/IUCN dialogue on mining
Slide 10: Environmental Targets
Environmental Targets Besides the management system targets(ISO14001 and FSC Certification), our business units are setting clear, quantifiable environmental targets that are of greatest relevance to their particular circumstances and their communities. Many such specifics are listed on p. 51 of our
Slide 11: Technological Innovations
Technological Innovations • Process R&D and alternatives to traditional smelting (HBMS zinc pressure leach) • Sulphate reducing bacteria for water treatment at South African coal mines • Coal-bed methane recovery for use (Australia) • Energy efficient technologies • New smelting process will reduce
Slide 12: Legal Compliance Verification
Legal Compliance • 281 incidents were reported involving the regulatory authorities (336 in 2001) • Fines paid totalled $162,000 ($187 000 in 2001) Verification • KPMG conducted their third review of our SHE performance and reporting • Nine sites visited, and previous site visits reviewed • Methane
Slide 13: Safety I
Safety I 2.5 0.10 Lost time injury frequency rates (LTIFR) 2.26 Fatal injury frequency rates (FIFR) 2.0 0.08 1.50 1.5 0.06 1.0 0.87 0.04 0.64 0.031 0.033 0.5 0.02 0.020 0.0 0.00 2000 2001 2002 2003
Slide 14: Safety II
Safety II • 127 000 employees: c.65 000 contractors in managed operations • 47 fatal injuries – down by 33% from 2001 • Lost-time injuries down by 42% • Introduction of Golden Rules • Safety performance an element of Executive and Management remuneration Much more remains to be done
Slide 15: Safety III
Safety III • Challenging new targets set • Visible felt leadership • Training and the promotion of safe behaviour • The development of leading indicators • The fostering of a true safety culture • OTTO: Zero Tolerance, Target Zero • Our clear goal is to do business without hurting people
Slide 16: Occupational Health
Occupational Health • Developed integrated industrial hygiene/ occupational health management guidelines: roll-out commenced • Performance audited against the guidelines will provide leading indicators
Slide 17: Human Resources
Human Resources Russell King
Slide 18: Key Issues
Key Issues • Decentralised business model but with strong corporate values • Corporate role to advise and facilitate • Sceptical about utility of data aggregation
Slide 19: Key Data
Key Data • 127 000 employees in managed operations of which: – Africa 85 000 – Europe 30 000 – The Americas 8 500 – Australasia 3 500 • Contractors c. 65 000 • 2002 – no major industrial disputes • Support freedom of association – 70% union membership • Training – minimum 2.2% of total employment co
Slide 20: Human Resources – Priority Challenges I
Human Resources – Priority Challenges I DIVERSITY Ensuring equal opportunities throughout the organisation globally Gender • c. 10% of employees are women • c. 15% in management roles South Africa • Employment Equity • By 2008, 40% of managerial employees should be HDSAs (c. 22% in 2002) • Longstand
Slide 21: Human Resources – Priority Challenges II
Human Resources – Priority Challenges II • Talent Management – Key aspect of diversity agenda – Part of senior management performance contracts • Performance Management and Development – Now cover about half of employees • Employee Communication – Developing two-way dialogues
Slide 22: South African Challenges: Black Economic Empowerment
South African Challenges Black Economic Empowerment Nick Von Schirnding
Slide 23: South African Challenges
South African Challenges • Minerals Development & Petroleum Act • Empowerment Charter – 15% equity or production ownership in 5 years – 26% equity or production ownership in 10 years • Empowerment Scorecard – Ownership; beneficiation; procurement; employment equity; human resources development; hous
Slide 24: Anglo's Black Economic Empowerment Commitment
Anglo’s Black Economic Empowerment Commitment • US$1.8 billion in BEE transactions completed • Procurement expenditure of US$800 million from black-owned businesses 2500 2000 1500 ZAR Millions 1000 500 0 1999 2000 2001 2002 • Small business development – Currently invested in 20 companies; 1 000+ jo
Slide 25: Social, Community and Economic Issues
Social, Community and Economic Issues Edward Bickham
Slide 26: Human Rights
Human Rights • Strong commitment in ‘Good Citizenship’ Principles – Support Universal Declaration – Commitment to make representations on behalf of employees and communities • Major issues in Zimbabwe • Consideration of adherence to ‘Voluntary Principles on Security and Human Rights’ • Child labour
Slide 27: 2002 - Controversies
2002 - Controversies • Zambia – withdrawal from KCM • Colombia – Resettlement • Congo – UN Special Panel
Slide 28: HIV/AIDS - I
HIV/AIDS - I HIV/AIDS policy and strategy Developing Rigorous development culturally appropriate scientific prevention messages reflection 1 9 2 Tackling Linking care socio-economic Total factors to prevention 8 Management 3 Commitment Situating 7 4 Establishing prevention in a community 6 5 partner
Slide 29: HIV/AIDS - II
HIV/AIDS - II • Voluntary counselling and testing • ART initiative for employees (24% infection rate) • Treatment protocols in place • 30 sites now registered for ART • Estimate 3 000 on treatment after 12 months • Seeking to broaden coverage of ART • Emphasis on community partnerships – Zimbabwe –
Slide 30: Communities I - Objectives
Communities I - Objectives • Engagement and consultation • Enhance capacities / economic upliftment • Improved management of socio-economic impacts • Community projects to reflect local priorities
Slide 31: Communities II - Engagement
Communities II - Engagement • Community Engagement Plans – 3-year rolling: – Consultation – Management of key issues – Complaints procedures – Contribution to local economy – Support for community projects – Resources and accountabilities • Growth in Community Liaison Panels • 2002 – Community Engag
Slide 32: Communities III – Managing Impacts
Communities III – Managing Impacts • Social Impact Assessment for new projects • Rapid Socio-Economic Assessment Methodology – pilot projects: – Mondi Forest, SA – Catalao, Brazil – German Creek, Australia
Slide 33: Communities IV – Economic Upliftment
Communities IV – Economic Upliftment • Indigenous management and local labour (eg, Skorpion) • Creative use of procurement • Income generation schemes • Small business development model
Slide 34: Corporate Social Investment
Corporate Social Investment CSI Expenditure • CSI expenditure US$28.8 35 million 30 • 0.9% of pre-tax profit 25 • Priorities: education, health and community $ million 20 15 development 10 • Chairman’s Fund leading 5 social investment vehicle 0 in South Africa 1 2 3 4 1999 2000 2001 2002 • ENGAGE ca
Slide 35: Economic Contribution
Economic Contribution Distribution of Benefits Arising from Economic Activity During 2002 ($m) Suppliers 8,730 Employees 2,796 Dividends 1,011 Company Tax 621 Interest 300
Slide 36: Payments to Governments
Payments to Governments Taxes and Other Payments to Governments 2002 900 800 700 600 500 $m 400 300 200 100 0 Africa Europe North and Aust/Asia South America Managed companies Non-managed companies
Slide 37: Anglo American's Regional Economic Contribution 2002
Anglo American's Regional Economic Contribution 2002 7,000 6,000 5,000 4,000 $m 3,000 2,000 1,000 - Africa Europe North and South Australia / Asia America Value added (non-managed) Value added (managed) Payments to suppliers, indirect taxes and royalties (non-managed) Payments to suppliers, indirect
Slide 38: 'Good Citizenship' – Assurance and Reporting
‘Good Citizenship’ – Assurance and Reporting • Launch Briefings Operations’ Annual • Training Letter of Assurance Business • Integrate into Principles management processes Divisional CEOs • Provision for whistle- Letters of Assurance blowing Supply Chain • contractors Anglo American • suppliers KPMG
Slide 39: Embedding 'Good Citizenship' Principles
Embedding ‘Good Citizenship’ Principles • Integration into decision-making • Development of Programmes – Communities – Employee communication – Business integrity – Human rights – Whistle-blowing – Complaints • Supply Chain Issues • Improvement of social KPIs
Slide 40: Reporting: What Next?
Reporting: What Next? • Stakeholder round-tables on evolution of Report • Progress towards more divisional and local reporting • Examining greater use of web as medium for detailed reporting