Anglo American Plc · LSE:AAL
Anglo American — ESG Presentation (April 2021)
37 slides from Anglo American's sustainability presentation, Apr 26, 2021
Slide 1: Sustainability Performance H1 2021
Sustainabi 26 April 2021
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or any change in written materials/slides for a presentation c
Slide 3: Agenda
Agenda 2020 Performance and Progress Mark Cutifani E – Healthy Environment Mark Cutifani S – Thriving Communities Anik Michaud G – Trusted Corporate Leader Stephen Pearce 3
Slide 4: Health & Safety Share
Health & Safety Share Anik Michaud Group Director - Corporate Relations & Sustainable Impact 4
Slide 5: Comprehensive Covid-19 response
Comprehensive Covid-19 response Responsible & Holistic Approach “WeCare” Operations Recovery Operating Practices Lives & Livelihoods Safe & Disciplined Prevention & Care Anglo American 5
Slide 6: 2020 Performance and Progress
2020 Performance and Progress Mark Cutifani Chief Executive 6
Slide 7: Re-imagining mining to improve people's lives
Re-imagining mining to improve people’s lives Effectiveness Efficiency Sustainability >10% 15-20% 7 Pillars of Value Free Cash Flow1 ROCE2 embedded Anglo American 7
Slide 8: Purpose…to re-imagine mining to improve people's lives
Purpose…to re-imagine mining to improve people’s lives Anglo American 8
Slide 9: Sustainable Mining Plan (SMP): Ensuring stretch and relevance
Sustainable Mining Plan (SMP): Ensuring stretch and relevance 2016-18 2021+ SMP 1.0 driven through Global Sustainability Pillars Evolving stakeholder expectations Healthy Environment Thriving Communities Trusted Corporate SMP Leader Emerging technology refresh and solutions Continuing evolution Holi
Slide 10: ESG integrated in decision making
ESG integrated in decision making 2020 Management Scorecard New cases HIV+ Recordable Noise Inhalable HIV status Safety & Fatal Injuries3 injury rate3,4 occupational exposure3,6 hazards known employees 2 disease3,5 undergoing health 2.14 30 72% exposure3 6% 89% ART 93% Energy Level 4-5 GHG savings7
Slide 11: Driving towards a safe & healthy future
Driving towards a safe & healthy future Safety Health Environment Group TRCFR3,4 Fatalities3 Occupational health – new cases3,5 Significant incidents3,8 111 3.6 101 3.2 96 6 2.7 11 2.2 2.1 9 4 39 5 30 2 4 2 1 1 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Elimination of
Slide 12: Working to deliver value to all stakeholders
Working to deliver value to all stakeholders Enterprise development jobs Female board representation Social Way Compliance Social Way 2.0 137,777 42% 91% 96% 132,082 84% 89% 120,812 125,095 116,298 66% 33% 30% 27% 25% 20% 2015 2016 2017 2018 2019 From 2020: 2016 2017 2018 2019 2020 2016 2017 2018 20
Slide 13: E - Healthy Environment
E - Healthy Environment Mark Cutifani Chief Executive 13
Slide 14: Active route to a greener world
Active route to a greener world 2020 2021-22 2030 2040 8% ✓ SA Thermal Coal ✓ 30% 30% Carbon energy In progress9 improvement in net reduction in energy efficiency GHG emissions7 7 neutral efficiency7 across our 22% ✓ South America operations10 electricity ✓ 8 sites Net saving in GHG carbon neutral10
Slide 15: Progress towards a greener future
Progress towards a greener future Energy Efficiency Improvements7 GHG Savings7 2020 target 2020 target 8% 34% 6% 6% 25% 24% 5% 5% 21% 19% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Driven by operational efficiency and innovation ✓ On track for 30% net reduction7 in GHG emissions by 2030 ✓ Ang
Slide 16: Pathways to scope 3 reductions
Pathways to scope 3 reductions Scope 3 GHG emissions SA operations demerger in progress Thermal coal (shortest mine lives) High quality HCC suited to modern steel making Metallurgical coal Demand extends beyond our ~20 year mine life Premium grade ore drives down emissions Iron ore Customer partners
Slide 17: Thermal coal – a responsible transition
Thermal coal – a responsible transition Portfolio evolution Capital discipline Sustainable success Future-enabling products Competition for capital Transparency & accountability Unlocking value Growing greener products Set business up for success Anglo American 17
Slide 18: South Africa Thermal Coal: a responsible transition
South Africa Thermal Coal: a responsible transition Proposed transfer of South African thermal coal assets to Thungela Resources a responsible operator with a robust ESG framework Responsible Environmental Shared value for decision-making & stewardship stakeholders leadership Efficient use of resour
Slide 19: S – Thriving Communities
S – Thriving Communities Anik Michaud Group Director – Corporate Relations & Sustainable Impact 19
Slide 20: Continuous evolution of social performance practice
Continuous evolution of social performance practice 2003 2009 2021 Socio-Economic Assessment Toolbox Social Way policy Social Way 3.0 (SEAT) Anglo American 20
Slide 21: Social Way 3.0: Raising the Bar
Social Way 3.0: Raising the Bar Management system integrating Embeds leading international standards Social Performance Social performance across the full life-cycle Policy Toolkit Assurance framework Anglo American 21
Slide 22: Comprehensive coverage of social performance
Comprehensive coverage of social performance Mindset and culture shift in organisation Incident and Governance, Review Stakeholder Grievance and Planning Engagement Management Lasting, positive contribution to communities Social & Human and those affected by our activities Rights Impact and Socio-ec
Slide 23: Social Way 3.0 integrated with Operating Model
Social Way 3.0 integrated with Operating Model Scope of our Social Way management system Plan OPERATIONAL PLANNING Identification, assessment, and management of social and human rights impacts and risks The Social Operating in Performance accordance with our EXPECTATIONS MANAGEMENT Management Social
Slide 24: Social Way in action: Covid-19 Community Response
Social Way in action: Covid-19 Community Response Social Way driving Community Response Plans for our sites. Understand context Stakeholders (regional and national) Anglo American shared Rapidly assess impacts & identify all Covid-19 Community community needs Response guidance publicly on the Social
Slide 25: Social Way in action: Covid-19 Community Response
Social Way in action: Covid-19 Community Response Social Way driving Community Response Plans for our sites. Stakeholders (regional and national) 141 4,015 $3.6m health loan Health workers funding facilities trained via Zimele Communities Water (local) 52,500 Total provision food Contribution for pa
Slide 26: Promoting an inclusive and diverse work environment
Promoting an inclusive and diverse work environment Holistic strategy to attract, retain and develop talent Inclusive Valued & respected Safe & enabling Fair & supportive leadership colleagues environment workplace Top 50 most inclusive Listed in Bloomberg Awareness & action Comprehensive companies
Slide 27: Inclusion & Diversity: good progress but still work to do
Inclusion & Diversity: good progress but still work to do Creating an environment where people bring their best selves to work Female senior management representation Voluntary staff turnover 27% 24% 21% 18% 15% 2.3% 2.4% 2.3% 2.2% 1.5% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Goal of 33% b
Slide 28: G – Trusted Corporate Leader
G – Trusted Corporate Leader Stephen Pearce Finance Director 28
Slide 29: Integrating ESG into governance structures
Integrating ESG into governance structures Accountability Alignment Capital Allocation Remuneration aligned with targets Embedded into culture & decision-making Governance framework for SMP Functional 5-year plans ESG performance metrics Anglo American 29
Slide 30: ESG integrated in capital allocation
ESG integrated in capital allocation Framework incorporates ESG principles Growth capital focused on future-enabling products Carbon pricing embedded12 Sustainability criteria and alignment to SMP Discretionary capital options Future project Additional Full impact decision making being developed Por
Slide 31: >90% of growth capex on future-enabling products
>90% of growth capex on future-enabling products Greener World Electrified World Consumer World Cu Eq production13 ~55% ~65% Future Future Enabling Enabling Diamonds Copper PGMs Nickel & manganese Crop nutrients Steel-making Thermal coal Anglo American 31
Slide 32: ESG integrated in remuneration
ESG integrated in remuneration SHE targets in Annual Bonus All employees incentivised on safety 20% + critical tasks Critical tasks include safety and ESG ESG targets in LTIPs Higher sustainability related weighting vs FTSE 100 average 20% GMC and Board members donated 30% of 2020 salary/fees for 3
Slide 33: Positioned for a sustainable future
Positioned for a sustainable future Mark Cutifani 33
Slide 34: Mining driving development and de-carbonisation
Mining driving development and de-carbonisation Use of global habitable land Responsible Infrastructure & stewardship of land emerging wealth and resources Fresh Mining water (1%) (0.04%) Urban (3%) Forests & 46% shrubs Reducing our Decarbonisation & environmental electrification footprint Agricultu
Slide 35: Re-imagining mining to improve people's lives
Re-imagining mining to improve people’s lives Effectiveness Efficiency Sustainability >10% 15-20% 7 Pillars of Value Free Cash Flow1 ROCE2 embedded Anglo American 35
Slide 36: Q&A
Q&A To ask a question, Standard International Dial-in: UK +44 (0) 2071 928338 / SA 0800 014552 / US 1 87787 09135 Conference ID: 4337666 36
Slide 37: Footnotes
Footnotes 1. Long-term target for ‘Sustaining attributable free cash flow’/ capital employed. 2. Attributable ROCE is defined as attributable underlying EBIT divided by average attributable capital employed. It excludes the portion of the return and capital employed attributable to non-controlling i