Slide 1: Gold Fields ESG Overview
GOLD FIELDS ESG OVERVIEW ANDREW PARSONS, TSAKANI MTHOMBENI, THOMAS MENGEL May 2017
Slide 2: Forward looking statements
Forward looking statements Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include
Slide 3: Presentation Agenda
Presentation Agenda ● Section 1: Charters and governance ● Section 2: Tracking performance ● Section 3: Priorities for the future ● Section 4: Social licence, energy and water ● Section 5: Value creation and distribution Gold Fields ESG Overview | May 2017 3
Slide 4: Charters and governance
Charters and governance
Slide 5: Gold Fields Sustainable Development Governance Framework
Gold Fields Sustainable Development Governance Framework External Reporting of Governance SD Framework Non Financial Structures Performance Data & Regional Procedures & Compliance Information • Board & Sub • Sustainability Committees Standards Monitoring • GRI • Exco • Policies & and • DJSI • Risk M
Slide 6: Internal and External Standards and Principles
Internal and External Standards and Principles • ISO 14001 all operations certified • Social and Labour Plans • International Cyanide • Mining Charter (SA only) Management Code: all eligible operations • Group Policies & are fully certified Guidelines (aligned to ICMM and UNGC 10 • Carbon Disclosure
Slide 7: Mining Charter compliance
Mining Charter compliance Gold Fields is committed to sustainable transformation ● SA mining industry currently operating under 2014 Mining Charter ● Next version of the Mining Charter currently being negotiated between the Chamber of Mines and the Department of Mineral Resources ● Chamber of Mines
Slide 8: Tracking performance
Tracking performance EM Ficcos
Slide 9: IAR 2016: GRI Material Issues – Cluster Score
IAR 2016: GRI Material Issues – Cluster Score Material Issue Score Material Issue Score Health and safety 1.8 Energy and Carbon Management 4.1 Water management 2.2 General Grievance Mechanisms 4.4 Managing environmental issues 2.4 Biodiversity 4.5 across the lifecycle Compliance 2.7 Supply chain man
Slide 10: Achievements – 2016/2017
Achievements – 2016/2017 IAR ranked as Excellent in EY Integrated Reporting Awards since 2010 Won the Mining and Resources sector award in the 2016 Excellence in Corporate Reporting awards of the Investment Analysts Society (IAS) of Southern Africa Carbon Disclosure Project: Performance A, one of 20
Slide 11: Priorities for the future
Priorities for the future GEMS Ficcos
Slide 12: 2017 Group Balanced Scorecard
2017 Group Balanced Scorecard 40% Sustainability Component We follow an Integrated Approach Group Balanced Scorecard is aligned to the risks and integrated into the business Gold Fields ESG Overview | May 2017 12
Slide 13: Top Five Sustainability Priorities until 2020
Top Five Sustainability Priorities until 2020 Energy & Climate Change • Develop risk based climate change adaptation strategies with our host communities and for our operations. • Stabilise energy costs at current levels till 2020 and continue evaluating options for renewable energy and other cost e
Slide 14: Social license, energy and water
Social license, energy and water
Slide 15: Current ESG risks/challenges facing Gold Fields
Current ESG risks/challenges facing Gold Fields Energy, Water and Social Licence ● Growing emphasis on human rights ● Loss of “social licence” to operate due to community and NGO activism ● Integrating social issues into mine closure ● Land access and acquisition is the primary risk in getting new p
Slide 16: Safety management at Gold Fields
Safety management at Gold Fields If we cannot mine safely, we will not mine ● Safety is our number one priority ● Safety culture in the past has been reactive, not proactive Region Safety Initiatives South Africa • Safety Strategy: ̵ Compliance ̵ Engineer out risk ̵ Cultural transformation ̵ Stakeho
Slide 17: Safety performance
Safety performance TRIFR improvement from 2015 to 2016 is 33% Group Safety Stats 4.50 0.07 4.04 4.00 0.06 3.50 3.40 0.05 3.00 2.50 0.04 2.27 2.00 0.06 0.06 0.03 1.50 0.02 1.00 0.02 0.01 0.50 0.00 0.00 2014 2015 2016 Fatality frequency rate Total Recordable Injury Frequency Rate 2014 2015 2016 Fatali
Slide 18: Health management at Gold Fields
Health management at Gold Fields If we cannot mine safely, we will not mine ● Manage both occupational and primary health at all our operations ● Key occupational disease rates at South Deep per 1000 employees/contractors: 2016 2015 2014 2013 Noise induced hearing loss 0.80 0.68 1.52 0.62 (NIHL) Car
Slide 19: Silicosis
Silicosis Seeking a sustainable solution ● On 13 May 2016, South Gauteng High Court handed down a judgment granting a certificate entitling former employees of several current or former gold mining companies the right to sue their former employers for damages as a class ● The court also granted cert
Slide 20: Energy and Water Overview
Energy and Water Overview Regions with Water and Energy Risks Energy Risk Integrated Group Energy and Carbon Strategy: Regional 5-year energy security plans in place, including energy cost management plans West Africa Increasing energy costs and security of supply South Africa Peru West Africa Water
Slide 21: Group Energy Spend & Energy Consumption
Group Energy Spend & Energy Consumption Energy spend as % of Group Opex – 2016: 19% 2015: 22% 2014: 21% 2013: 18% Gold Fields ESG Overview | May 2017 21
Slide 22: Outcomes of Gold Fields commitments to RE and EE
Outcomes of Gold Fields commitments to RE and EE Since 2011, we have been rolling out an integrated energy and carbon management strategy ● Realized a cumulative saving of 1.1 PJ from energy initiatives ● Updating our 2020 E&C strategy ● Nearly US$41m in cumulative energy cost savings ● A decade of
Slide 23: Energy initiatives
Energy initiatives Reducing energy costs and carbon emissions, while improving security of supply ● 19% of operating cost base (13% of AISC) is energy- linked ● Increasing energy costs across our operations ● Post COP21 business implications – carbon emissions related taxes, new regulations, incenti
Slide 24: Understanding climate change impacts
Understanding climate change impacts We seek to understand our operations’ vulnerabilities, and manage through a policy Understand risks/opportunities Review, every 3 Develop adaptation years plans Implement: mitigation and adaptation measures Impacts of climate change present risks and opportunitie
Slide 25: Group Water Consumption
Group Water Consumption Water withdrawal and Water Reuse/Recycling (GL) 50.0 45.0 40.0 35.0 12.4 13.4 15.6 5.7 30.0 4.9 4.7 5.8 25.0 3.6 2.7 2.6 20.0 2.2 20.5 5.0 21.6 20.9 15.0 10.0 19.5 22.2 16.9 5.0 5.8 4.8 3.8 3.7 3.3 3.9 0.0 Withdrawal Reuse / Recycling Withdrawal Reuse / Recycling Withdrawal R
Slide 26: Management of Tailings Storage Facilities
Management of Tailings Storage Facilities Major review of TSFs following high-profile failures in the industry 1. Gold Fields Group TSF Guideline Update • Incorporate 2016 ICMM Position Statement into Group Guideline (completed) • Develop Assessment Criteria for each 15x Principles (completed) • Fur
Slide 27: 2016 Gross Closure Cost Liabilities
2016 Gross Closure Cost Liabilities Mine closure cost estimation breakdown per Gross closure costs increased by 8% region from 2015 to 2016: 15% • Increase in net area disturbed at Damang Australia 48% South Africa • Increase in waste storage and TSF West Africa areas at Cerro Corona 27% Americas •
Slide 28: Gross closure costs & funding methods
Gross closure costs & funding methods Region % of Group Total (US$m) Amount secured (US$m) % Secured Funding method Australia 48 182 0 0 Existing cash resources Environmental trust South Africa 10 37 37 100% funds and guarantees Reclamation bonds West Africa 27 105 82 77% underwritten by banks and r
Slide 29: Value creation and distribution
Value creation and distribution
Slide 30: 2016 FY Total Value Distribution = US$2.505 billion
2016 FY Total Value Distribution = US$2.505 billion Underpinned by: • Social licence to operate • Environmental responsibilities • Zero Harm • Regulatory compliance Community Impact: Community Investments – funding for projects that directly benefit our US$16.2m host communities Host community workf
Slide 31: National value distribution by region and stakeholder
National value distribution by region and stakeholder We generate value for all the societies in which we operate Gold Fields ESG Overview | May 2017 31
Slide 32: Community Relations and Shared Value
Community Relations and Shared Value Gold Fields’ Social Performance Framework Gold Fields ESG Overview | May 2017 32
Slide 33: Sustainability - Key Performance Indicators
Sustainability - Key Performance Indicators Key Performance Indicators (excluding Safety) – 3-year trend KPI 2016 2015 2014 Total Value Distribution (US$m) Government, business, employees/contractors, SED and 2,505 2,425 2,650 capital providers SED spend (US$m) 16.2 13.7 17.4 Workforce from host com
Slide 34: Thank you
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