Slide 1: Gold Fields ESG Overview
GOLD FIELDS ESG OVERVIEW ANDREW PARSONS, PUSELETSO MATETE, THOMAS MENGEL May 2016
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: ESG issues are gaining prominence globally
ESG issues are gaining prominence globally Recent press headlines highlight the growing importance of ESG matters ● “BHP, Vale hit with US$44bn lawsuit over deadly spill at Samarco JV” Mining.com ● “New Brazil minister says will not commit to restart Samarco Mine” MiningWeekly.com ● “Miners get gree
Slide 4: Presentation Agenda
Presentation Agenda ● Section 1: Charters and governance ● Section 2: Tracking 2015 performance ● Section 3: Priorities for the future ● Section 4: Social license, energy and water ● Section 5: Value creation and distribution Gold Fields ESG Overview | May 2016 4
Slide 5: Charters and governance
Charters and governance
Slide 6: Gold Fields Charters
Gold Fields Charters Part of our Commitment to Stakeholders Employee Charter: ̵ To be a company of which employees can be proud ̵ To celebrate achievement ̵ To treat employees with respect and to work with them to ensure their health and safety ̵ To provide the right development and support for empl
Slide 7: Gold Fields Sustainable Development Governance Framework
Gold Fields Sustainable Development Governance Framework External Reporting of Governance SD Framework Non Financial Structures Regional Procedures Performance Data & • Board & Sub • Sustainability & Compliance Information Committees Standards Monitoring • GRI • Exco • Policies & and • DJSI • Risk M
Slide 8: Internal and External Standards and Principles
Internal and External Standards and Principles • ISO 14001 all operations certified • Social and Labour Plans • International • Mining Charter (SA only) Cyanide Management Code: all eligible • Group Policies & operations are Guidelines (aligned to compliant ICMM and UNGC 10 principles) • Carbon Disc
Slide 9: Tracking 2015 performance
Tracking 2015 performance
Slide 10: IAR 2015: Material Issues – Cluster Score
IAR 2015: Material Issues – Cluster Score Material Issue Score Material Issue Score Health and safety 2.3 Energy and Carbon 4.6 Management Water management 2.7 General Grievance Mechanisms 4.7 Social licence to operate 2.9 Equal Remuneration 5.0 Managing environmental 3.2 Human rights due diligence
Slide 11: Tracking Our 2015 Performance
Tracking Our 2015 Performance Key Focus Area Action Status Identify and implement Shared √ Value Projects In progress & on schedule Put Regional 5-year energy √ security plans in place In progress & on schedule Implement baseline assessments √ and put action plans in place In progress & on schedule
Slide 12: Achievements
Achievements Ghana: Development Agreement with the Government of Ghana finalised for Tarkwa and Damang: • Corporate tax rate will be reduced from the existing 35% to 32.5% with effect from 17 March 2016 • Change in the royalty rate from a flat 5% of revenue to a sliding scale based on the gold price
Slide 13: Priorities for the future
Priorities for the future
Slide 14: 2016 Group Balanced Score Card
2016 Group Balanced Score Card 40% Sustainability Component We follow an Integrated Approach Group Balance Score Card is aligned to the risks and integrated into the business Gold Fields ESG Overview | May 2016 14
Slide 15: 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 16: Social license, energy and water
Social license, energy and water
Slide 17: Current ESG Risks/Challenges Facing Gold Fields
Current ESG Risks/Challenges Facing Gold Fields Social licence, energy and water ● Loss of “social license” to operate due to community and NGO activism ● Stringent water emissions standards ● Increasing water scarcity ● Integrating social issues into mine closure Around 50% of the Group ● Rising en
Slide 18: Human Rights
Human Rights ● Human Rights Policy Statement in which we commit to: ̵ Not interfering with or curtailing other’s enjoyment of human rights ̵ Defending (where possible) • employees and third-parties • individuals and groups (as defined in our Community Policy) against human rights abuses ̵ Taking pos
Slide 19: Safety Management
Safety Management 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 Regions Safety Initiatives South Africa ● Safety Strategy: ̵ Compliance ̵ Engineer out risk ̵ Cultural transformation ̵ Stakeholder engagemen
Slide 20: Safety Performance
Safety Performance TRIFR improvement from 2014 to 2015 of 16% Total recordable Injury Frequency Rate Fatality Frequency Rate 4.5 0.07 4.14 0.06 0.06 4.04 0.06 4.0 0.05 3.40 0.04 3.5 0.04 3.0 0.03 0.02 2.5 0.01 2.0 0 2013 2014 2015 2013 2014 2015 2015 2014 2013 Fatalities 4 3 2 Gold Fields ESG Overvi
Slide 21: Health Management in Gold Fields
Health Management in Gold Fields ● Manage both occupational and primary health in all our operations Australia Ghana Peru South Africa Total Silicosis 2013 0 0 1 11 12 2014 0 1 0 14 15 2015 0 0 0 9 9 COAD 2013 0 0 0 0 0 2014 0 0 0 4 4 2015 0 0 0 1 1 NIHL 2013 0 4 0 4 8 2014 0 5 0 8 13 2015 0 2 0 4 6
Slide 22: Silicosis
Silicosis ● On 13 May 2016, the 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 certification of a class for tu
Slide 23: Water and Energy Overview
Water and Energy Overview Regions with Water and Energy Risks Energy Risk Integrated Group Energy and Carbon Strategy: Regional 5-year energy security plans in place. West Africa Increasing energy costs and security of supply South Africa Peru West Africa Water Scarcity Flooding: Rainy season flow u
Slide 24: Group Energy Spend
Group Energy Spend Electricity & Diesel 2012 – 2015 Costs in Millions of Dollars 400 US$m 350 300 250 200 150 100 50 0 Australia South Africa South America West Africa Group total 2012 2013 2014 2015 Energy spend as % of Group Opex – 2012: 20% 2013: 18% 2014: 21% 2015: 22% Gold Fields ESG Overview |
Slide 25: Other Energy Initiatives and the ICMM
Other Energy Initiatives and the ICMM We are a member of International Council on Mining and Metals (ICMM) ● Australia: ● GF is a signatory to a number of local ̵ Granny Smith gas power plant fuel initiatives that aim to encourage industry to conversion from diesel to gas move towards low carbon int
Slide 26: Proposed Carbon Tax Implications
Proposed Carbon Tax Implications South Deep 2015 The Carbon Tax Uncertainties in the Potential Carbon Emissions Proposal (2nd Nov proposed Carbon Tax Implications for Profile 2015) South Deep • Scope 1: exposure is • Phase 1 from 1 • No timelines for • Minimal pre-2020 if the primarily through fuels
Slide 27: Management of Tailings Storage Facilities
Management of Tailings Storage Facilities Status of Gold Fields TSFs: • In September 2014 Gold Fields Corporate office initiated a group wide tailings facility audit, including all 15 operational and 10 dormant TSFs in the group • The audit reviewed key aspects of tailings facility management with a
Slide 28: 2015 Gross Closure Cost Liabilities
2015 Gross Closure Cost Liabilities Mine closure cost estimation breakdown per region Gross closure costs decreased by 10% from US$391 million in 2014 to $353 million in 2015: South Deep (8%) • Significantly weaker AUD and ZAR against USD West Africa (26%) • Combination of Agnew and Lawlers Americas
Slide 29: Gross closure costs & funding methods
Gross closure costs & funding methods Region % of Group Total (US$) Amount secured (US$) % Secured Funding method Australia 53 186,007,171 0 0 Existing cash resources Environmental trust funds South Africa 8 28,959,038 28,959,038 100% and guarantees Reclamation bonds West Africa 26 91,519,303 64,117
Slide 30: Value creation and distribution
Value creation and distribution
Slide 31: Total Value Distribution = US$2.43 billion
Total Value Distribution = US$2.43 billion Underpinned by: • Social licence to operate • Environmental responsibilities • Zero Harm • Regulatory compliance Community Impact: Community Investment US$14 million Host Community workforce employment 10,009 people Host Community procurement US$514 million
Slide 32: National value distribution by region and stakeholder
National value distribution by region and stakeholder The most important means by which we generate quantifiable value is demonstrated National value distribution by National region and type 2015 Employees/ Capital value (US$m) Government Business Contractors SED Providers distribution Americas 44 1
Slide 33: Community Relations and Shared Value
Community Relations and Shared Value Gold Fields’ Social Performance Framework Gold Fields ESG Overview | May 2016 33
Slide 34: Social Licence to Operate Key Performance Indicators
Social Licence to Operate Key Performance Indicators Key Performance Indicators (excludes Safety) 3 Year Trend KPI 2015 2014 2013 Total Value Distribution (US$m) Government, business, employees/contractors, SED and capital providers 2,425 2,650 2,980 SED spending (US$m) 13.7 17.4 17.2 Workforce from
Slide 35: Thank you
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