Pan American Silver Corp. · TSX:PAAS
Pan American Silver — ESG Presentation (September 2020)
35 slides from Pan American Silver's sustainability presentation, Sep 14, 2020
Slide 1: Pan American Silver's Responsible Investor Call: A conversation on ESG
Pan American Silver’s Responsible Investor Call: “A conversation on ESG” September 14, 2020
Slide 2: Cautionary Note
Cautionary Note Non-GAAP Measures This presentation of Pan American Silver Corp. and its subsidiaries (collectively, “Pan American”, “Pan American Silver”, the “Company”, “we” or “our”) may refer to various non-GAAP measures. Readers should refer to the “Alternative Performance (Non-GAAP) Measures”
Slide 3: Cautionary Note
Cautionary Note The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or i
Slide 4: Sustainability Leadership Team
Sustainability Leadership Team Michael Steinmann Steve Busby Rob Doyle Christopher Lemon Brent Bergeron President and Chief Chief Operating Officer Chief Financial Officer General Counsel Senior Vice President, Corporate Executive Officer Affairs and Sustainability Sean McAleer Martin Wafforn Monica
Slide 5: Agenda
Agenda 1. Sustainability: Key to our Vision and Strategy 2. 2019 Sustainability Highlights 3. Response to COVID-19 and Safety & Health 4. Sustainability Goals and Results 5. Management Approach and Performance • Environmental Stewardship and Mine Closure • Communities and Inclusion & Diversity • Peo
Slide 6: Our Vision & Sustainability Values
Our Vision & Sustainability Values To be the world’s premier silver producer, with a reputation for excellence in discovery, engineering, innovation and sustainable development Caring for the environment in which we operate Contributing to the long-term development of our host communities Ensu
Slide 7: 2019 Sustainability Highlights
2019 Sustainability Highlights 95 CHAIRMAN’S ZERO COMMUNITIES AND INDIGENOUS 1,065,088 SAFETY AWARD SIGNIFICANT GROUPS THAT BENEFIT FROM DOLORES MINE WAS HOURS OF SAFETY TRAINING RECIPIENT OF THE ENVIRONMENTAL INCIDENTS OUR SOCIO-ECONOMIC IN 2019 CHAIRMAN’S SAFETY AWARD AT OUR OPERATIONS PROGRAMS DI
Slide 8: Our Products & Sustainability
Our Products & Sustainability SILVER (Ag) + GOLD (Au) SOLAR PANELS HEALTH ELECTRONICS INVESTING JEWELRY Silver paste is a key Silver’s Silver is the best Governments, Silver and component of antimicrobial thermal and electrical institutions, or gold are photovoltaic cells used and non-toxic conducto
Slide 9: Economic Benefits
Economic Benefits Direct economic value generated and distributed in 2019 (1) Based on 2019 accrued revenue as per annual Financial Statements for fiscal 2019, dated March 12, 2020. Financial metrics for Shahuindo, La Arena and Timmins are as of the acquisition date, February 22, 2019. (2) Local ref
Slide 10: Executive Compensation Linked to Sustainability Performance
Executive Compensation Linked to Sustainability Performance Safety (15%) Operating Performance 40% Significant environmental incidents (10%) Annual ESG Incentive Plan 35% Categories Inclusion & Diversity (5%) Growth Towards Sustainable 25% Mining (TSM) level (5%) 10 September 14, 2020
Slide 11: Operational Approach to Sustainability
Operational Approach to Sustainability • Minimizing environmental impacts, protecting ecosystems, and ensuring safe and healthy workplaces • Our operations set annual goals to drive performance improvements in sustainability • Developing effective partnerships and collaborations • Honest, transparen
Slide 12: COVID-19 Response
COVID-19 Response Protocols and practices implemented across our operations • Our primary concern is the Protecting health and safety of our health & employees and contractors, safety and the communities in which they live and work • We are monitoring Education & Compliance & information provided by
Slide 13: Health & Safety
Health & Safety • Leadership engagement and accountability • Building a culture of safety • Improved training, process, technology and innovation • Annual safety audits 2019 Performance Lost Time Injury Frequency (LTIF) rate on 1 million hour basis: 1.04 against the target of 1.5 or less Lost Ti
Slide 14: Sustainability Approach
Sustainability Approach VISION To be the world’s premier silver producer, with a reputation for excellence in discovery, engineering, innovation and sustainable development VALUES Set the standard for how we operate as a business CODE OF CONDUCT Sets out key principles and expectations for ethical b
Slide 15: Our Sustainability Focus
Our Sustainability Focus Water & Energy Stewardship Biodiversity & Mine Closure Tailings Facility Safety Emergency Response Preparedness Sustainable Development Programs Education & Health Local Procurement Development Infrastructure Health & Safety Human Rights & Business Ethics Human Resources Att
Slide 16: Sustainability Performance
Sustainability Performance 2019 Goals & Results Category Goals Results Achieve zero fatalities Operations and Safety Achieve a lost time injury frequency (LTIF) of 1.5 or less Achieve a loss time injury severity (LTIS) of 600 or less Achieve zero social conflicts at our operations Social Conti
Slide 17: Commitment to External Initiatives
Commitment to External Initiatives Viola Desmond Chair in Social Justice 17 September 14, 2020
Slide 18: Environment: Strategy, Management Approach & Performance
Environment: Strategy, Management Approach & Performance • Implementing Mining Association of Canada’s Towards Environmental Policy and Standards – Our policy and internal Sustainable Mining (TSM) program across our operations standards guide performance and • No significant environmental incidents*
Slide 19: Water Management
Water Management WATER INTENSITY * • We completed an upgrade to the mine 0.4 wastewater treatment facility at San Water Use m3/tonne ore processed Vicente, which allowed plant effluent to 0.3 be recycled and reduced our reliance on fresh water for mineral processing from 0.2 an external source • We
Slide 20: Climate, Energy & Greenhouse Gas (GHG) Emissions
Climate, Energy & Greenhouse Gas (GHG) Emissions • We improved our climate disclosure including Scope 3 emissions and GHG Emissions 2019 2019 information on physical risks in our Silver 2018 2017 (Tonnes CO2 eq) Total 2019 Sustainability Report Segment • We implemented projects to reduce Scope 1 - D
Slide 21: Biodiversity & Mine Closure
Biodiversity & Mine Closure Alamo Dorado Tailings Dry Stack: Alamo Dorado Tailings Dry Stack: • We completed reclamation of 126 During operation After hectares of previously mined land, primarily at Alamo Dorado in Mexico. A total of approximately 205 hectares have been reclaimed at Alamo Dorado • W
Slide 22: Tailings Management
Tailings Management We implement leading tailings management standards at all our facilities: Towards Sustainable Mining – Internal Corporate Standard Canadian Dam Association Tailings Management on Tailings, Water and Heap Dam Safety Guidelines Protocol Leach Facilities Tailings Monitoring Sy
Slide 23: Social: Strategy and Management Approach
Social: Strategy and Management Approach ENGAGE PLAN IMPLEMENT MONITOR & EVALUATE Capacity Building & Training Community Social Audits Participatory Teams Education & Baseline Towards Health Assessments Sustainable Materiality Survey Local Mining Community Aboriginal and Procurement Development Comm
Slide 24: Community Investment
Community Investment • All community development projects are designed in Socio-economic Development collaboration with communities and adhere to Pan Programs: American Silver’s CSR policy guidelines Local economic development • In 2019, we spent US $14,416,070 on community projects investment E
Slide 25: COVID-19 Response
COVID-19 Response Supporting communities Pan American Silver pledged a US $2 million to help fund for COVID-19 in 2020, covering: Vulnerable families: Food, cleaning, and winter supplies for more than 15,000 families in 110 communities Health: Sanitation and hygiene initiatives, donations of protect
Slide 26: COVID-19 Response - UNICEF Partnership
COVID-19 Response - UNICEF Partnership Countries covered by this initiative: Bolivia, Argentina, Mexico, Guatemala and Peru Pan American Silver’s contribution will help UNICEF to: 26 September 14, 2020
Slide 27: Inclusion & Diversity
Inclusion & Diversity • We are making significant efforts towards creating awareness around vulnerable groups impacted by the COVID-19 crisis • We will continue to monitor and promote collaboration and inclusiveness through our programs and current initiatives Building Respect Together Program: Re
Slide 28: Human Capital Development: Strategy & Management Approach
Human Capital Development: Strategy & Management Approach • Competitive compensation and quality benefits • Opportunities for training and professional development • Leader Development Program • Site-level training programs • Succession planning • Retention • Respectful work environment Next Steps
Slide 29: Governance: Strategy & Management Approach
Governance: Strategy & Management Approach • Say-on-Pay Policy: 93.65% support Policies: • Majority Voting Policy: > 85% vote for all directors Environmental Policy Health & Safety Policy • Independent Directors: 86% independent Majority Voting Policy • Separate Chairperson, Lead Director, and
Slide 30: Human Rights: Strategy & Management Approach
Human Rights: Strategy & Management Approach • Global Human Rights Policy • Labor • Anti-corruption • Indigenous Peoples • Gender • Environment • Human Rights Officer – Global • Alignment with the Voluntary Principles on Security and Human Rights Next Steps Human rights training Human Rights Due
Slide 31: Escobal Update
Escobal Update ILO 169 Consultation • The Escobal mine is a world-class silver deposit: • Concession ~20km2; industrial footprint ~1km2 • Low water consumption • Filtered tailings, paste backfill and dry-stack tailings facility • Provided over 1,500 direct jobs during operation • Currently under car
Slide 32: Escobal Update
Escobal Update Actions since the acquisition Values based approach Implementing Best Practices • Based on review of project history • Human Rights and Security • Assessment of practices • Identified areas for improvement • Changes in structure and management oversight • Defined a set of values that
Slide 33: ESG Opportunities & Challenges
ESG Opportunities & Challenges Next steps ENVIRONMENT SOCIAL GOVERNANCE • Develop short-and-medium-term • Update indicators to measure the • Roll out of the behavior-based targets for water, energy and social impact of our programs safety program greenhouse gas emissions based based on participatory
Slide 34: Q&A
SR PAN AMERICAN — SILVER — Q&A 34 September 14, 2020
Slide 35: Contact details
Suite 1440, 625 Howe Street, Vancouver, BC, V6C 2T6 PanAmericanSilver.com csr@panamericansilver.com +1.604.684.1175 35 September 14, 2020
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