Anglo American plc · LSE:AAL
Anglo American — ESG Presentation (April 2019)
37 slides from Anglo American's sustainability presentation, Apr 3, 2019
Slide 1: 2018 Sustainability Performance
2018 SUSTAINABILITY PERFORMANCE 3 April 2019 1
Slide 2: What We're Going to Cover
WHAT WE’RE GOING TO COVER • Safety is our first priority…focus on eliminating fatalities once and for all • Sustainability…heart of how we do business, every day • Climate change…front of mind for how we shape the future of our business o Energy transition from fossil fuels to low-carbon energy o Ci
Slide 3: Our Purpose
OUR PURPOSE Mark Cutifani, Chief Executive 3
Slide 4: Our Purpose Is To…
OUR PURPOSE IS TO… Re-imagine mining… What mining could be and how we envisage mining in the future. How we think differently and innovatively about mining and our entire value chain. …to improve people’s lives A Purpose is about more than just the work we do and the profits we make, it’s about the
Slide 5: Sustainability at the Heart of Our Strategy
SUSTAINABILITY AT THE HEART OF OUR STRATEGY • Focus on high quality and long-life assets • Diversified portfolio with low-cost Portfolio growth options • Sustainable cash flow and returns with capital discipline • Operating Model • FutureSmart MiningTM Innovation o Technical innovation o Sustainable
Slide 6: Our 2018 Results
OUR 2018 RESULTS Mark Cutifani, Chief Executive 6
Slide 7: 2018 – Continued Delivery
2018 – CONTINUED DELIVERY Production volumes1 EBITDA2 Mining margin3 6% $9.2bn 42% Dividend Free cash flow 4 ROCE5 $1.3bn $3.2bn 19% 7
Slide 8: How We Measure Sustainability
HOW WE MEASURE SUSTAINABILITY Pillars of value Description Safety and health Do no harm Environment Minimise our environmental footprint Socio-political Partner in the benefits of mining with local communities and government People Create a sustainable competitive advantage through capable people an
Slide 9: Sustainability Scorecard
SUSTAINABILITY SCORECARD A snapshot of 2018 performance Reduction of HIV+ Employees New cases Safety Employees employees Recordable employees exposed to of occupational & Fatal Injuries knowing their exposed to injury rate undergoing noise disease Health 5 HIV status inhalable 2.66 ART(6) 86% 45% 10
Slide 10: Elimination of Fatalities Taskforce
ELIMINATION OF FATALITIES TASKFORCE Purpose: To fully understand the causation that leads to fatalities • Site assessments consider fatal risks, catastrophic risks, culture, and the resulting causation (6 Whys) • 22 of the assets have been through the assessment process: – South Africa, Botswana, Na
Slide 11: Safety, Health & Environment
SAFETY, HEALTH & ENVIRONMENT Safety Health Environment Fatalities9,10 Group TRCFR TB incident rate relative to the South African Major incidents9,11 national average (per 100,000 employees) 15 30 1,500 11 9 1,000 15 6 6 5.4 5 4.0 500 4.7 3.6 3.2 6 6 2.7 4 2 0 2013 2014 2015 2016 2017 2018 2013 2014
Slide 12: Climate Change
CLIMATE CHANGE GHG Emissions Total Energy Consumed Total GHG emissions against business as usual 2014 - 2018 Total energy consumed against business as usual 2014 - 2018 On track to achieve our 2020 targets on GHG emissions and Avoided 6 million tonnes of CO2e emissions, primarily through energy effi
Slide 13: Climate Change – TCFD Alignment
CLIMATE CHANGE A comprehensive approach – aligned with the TCFD recommendations Progress in 2018 Quantitative Scenario Analysis • We became a formal supporter of the • TCFD recommends companies test their Task Force for Climate Related Financial resilience in quantitative terms against Disclosure (T
Slide 14: A Transformed and Sustainable Business
A TRANSFORMED AND SUSTAINABLE BUSINESS 10% more production from 50% fewer assets Driving improved returns ROCE 200 +98% 180 160 productivity 8pp 140 2018 vs 2012 120 100 80 60 108 26% Mining margin Unit cost improvement 40 12pp 2012 2013 2014 2015 2016 2017 2018 Production index (Cu Eq)11 Productivi
Slide 15: Governance
GOVERNANCE Committed to the highest standards of governance that underpin our culture and values Inclusion & Diversity Remuneration Committed to at least Directly linked to Group’s strategy with 33% 60% female representation by 2023 in senior of annual bonus deferred into shares manager roles and ab
Slide 16: Inclusion and Diversity
INCLUSION AND DIVERSITY The diversity and All colleagues are unique contribution, of An adaptable, involving, A safe, effective and valued and respected every colleague is fair and supportive enabling environment Supporting our and feel able to bring purpose to: prized by inclusive workplace exists
Slide 17: FutureSmart Mining
FUTURESMART MININGTM Laura Brooks Head of Sustainable Mining Integration Tony O’Neill Technical Director 17
Slide 18: Our Sustainable Mining Plan
OUR SUSTAINABLE MINING PLAN 18
Slide 19: FutureSmart Mining: Technology Model, Sustainable Mining Plan
FUTURESMART MININGTM Technology Model Sustainable Mining Plan 19
Slide 20: Sustainability at the Heart of Our Business
SUSTAINABILITY AT THE HEART OF OUR BUSINESS Our approach 2018 Progress: • Formed a SteerCom to oversee implementation. • Developed guidelines to support site sustainability planning that is fully integrated with Life of Asset Planning. • Established implementation road map. • Reviewed goals triggeri
Slide 21: Our Sustainable Mining Plan – 2018 Highlights
OUR SUSTAINABLE MINING PLAN 2018 highlights Accountability Anglo American South Africa hosted our first national Accountability Dialogue focused on our contribution To transform the relationship to the SDGs. A global Accountability Dialogue is between mines, communities, and scheduled for 2019. wide
Slide 22: Technical Innovation
TECHNICAL INNOVATION 22
Slide 23: We Are Leading the Transformation of Mining
WE ARE LEADING THE TRANSFORMATION OF MINING Operating Model P101 FutureSmart Mining Digitalisation The Intelligent Mine Technology Innovation The Concentrated Mine The Waterless Mine The Modern Mine Sustainability Sustainable Mining Plan 23
Slide 24: Eliminating Tailings Dams
ELIMINATING TAILINGS DAMS Challenge Eliminate wet tailings Approach Reduce risk 1. Fibre-optic Sensing 2. Satellite monitoring Eliminate 1. Coarse particle recovery 2. Polymers 3. Dry processing Value Reduced footprint Increased water recovery Reduced TSF risk 24
Slide 25: Reducing Water & Energy Intensity
REDUCING WATER & ENERGY INTENSITY Challenge Precision mining with minimal energy, water and capital intensity Approach Concentrate the Mine™ concept: 1. Coarse particle recovery 2. Bulk sorting 3. Grade Engineering™ 4. Precision classification 5. Ultrafine recovery 6. Novel leach Value Across most c
Slide 26: Delivering Enduring Value Through Smart Energy
DELIVERING ENDURING VALUE THROUGH SMART ENERGY Challenge Transformational use of renewables Approach 1. Oversize PV 2. Plant tariff demand arbitrage 3. Produce H2 with excess PV 4. Consume H2 in trucks Value Energy security Price resilience Reduce GHG emissions Move to hydrogen economy Next gen mini
Slide 27: Assuring Safe Responsible Production
ASSURING SAFE RESPONSIBLE PRODUCTION Challenge Everyone goes home every day Approach Modernise – Electro-hydraulic drills, gel explosives, no scraper-winches Mechanise – Remote operated ultra- low-profile equipment Continuous cutting – Hard rock cutting machines Swarm robotics – Small self- organisi
Slide 28: Re-defining Predictive Quality Through Digital
RE-DEFINING PREDICTIVE QUALITY THROUGH DIGITAL Challenge Predict and shape operational outcomes Approach Predictive maintenance using digital twins Increased use of AI Pervasive fibre-optic sensors – real- time insights into the process and facilitation of APC Value Increased equipment utilisation I
Slide 29: In Conclusion…
IN CONCLUSION… 29
Slide 30: Attractive Long-Term Returns Based on Three Pillars
ATTRACTIVE LONG-TERM RETURNS BASED ON THREE PILLARS Efficiency Effectiveness Sustainability Holistic across Return on capital Cash flow business 30
Slide 31: Investment Proposition
INVESTMENT PROPOSITION “Leading capabilities actively improving a world-class asset base to drive sustainable, competitive returns” Assets Capabilities Returns Focus on quality Operating Model Capital discipline Long life FutureSmart MiningTM Dividend payout ratio Technology & Sustainability Low-cos
Slide 32: What to Take Away Today
WHAT TO TAKE AWAY TODAY • Safety is our first priority…focus on eliminating fatalities once and for all • Our Purpose and values inform our strategy • We measure our business performance using a balanced business scorecard… making strong progress across all dimensions • We are addressing the major s
Slide 33: Appendix
APPENDIX 33
Slide 34: Inclusion and Diversity – UK Gender Pay Gap
INCLUSION AND DIVERSITY UK gender pay gap – the numbers Anglo American’s UK gender pay gap data was published on 4 March 2019 • Our UK gender pay gap data relates to the 292 people we employed in our UK head office at 5 April 2018, of which 43% are women. • Globally, we are committed to achieving at
Slide 35: Remuneration for Executive Directors
REMUNERATION FOR EXECUTIVE DIRECTORS Remuneration Committee Maximum increase of 5% of salary per annum - Establish the Group’s remuneration policy Basic for executives and senior management salary (2018: 2% increase consistent with UK - Determine packages for Chairman, employee population) Executive
Slide 36: Human Rights
HUMAN RIGHTS A critical foundation of our Sustainable Mining Plan Context 2018 focus • Long-standing commitment to human rights • Human Rights is a critical foundation of through UN Guiding Principles on Business the Sustainable Mining Plan. and Human Rights. • In 2018, we conducted independent, • S
Slide 37: Footnotes
FOOTNOTES 1. Copper equivalent is calculated using long-term consensus parameters. Excludes domestic / cost-plus production and impact of Minas-Rio suspension. Normalised for Bokoni placed on care and maintenance. 2. All metrics in presentation shown on an underlying basis. 3. The margin represents