Anglo American plc · LSE:AAL
Anglo American — ESG Presentation (June 2009)
38 slides from Anglo American's sustainability presentation, Jun 3, 2009
Slide 1: Making a Difference – 2008 Sustainable Development Performance
Making a Difference – 2008 Sustainable Development Performance 3 June 2009
Slide 2: Agenda
Agenda 1 Chairman’s Overview – Sir Mark Moody-Stuart, Chairman 2 Overview of the Year – Cynthia Carroll, Chief Executive 3 Investment of Choice – Cynthia Carroll, Chief Executive 4 Partner of Choice – Edward Bickham, Group Head of External Relations, Gareth Llewellyn, Group Head of Safety and Sustai
Slide 3: Chairman's Overview
G Chairman's Overview AMERICAN
Slide 4: Chairman's Overview
Chairman’s Overview Sustainable development remains a key priority, irrespective of current economic conditions • Business climate • Dividend suspension • Continuing importance of sustainable development • Maintaining commitments to communities • Growing focus on water • Critical importance of creat
Slide 5: Overview of the Year
ANGLO AMERICAN Overview of the Year
Slide 6: Safety
Safety Strong and unrelenting focus on safety improvement led to a clear improvement in our performance in 2008 • Fatalities down to 27 – 33 percent improvement over 2007 • LTIFR down to 1.05 – 17 percent improvement over 2007 • Achievements include 7 million fatality free shifts at Union platinum m
Slide 7: Business climate and our response
Business climate and our response Business climate Strategic developments • Deterioration of the • Ongoing disposal of non- business climate in 2008 core assets • Prospects for a return to • Supply chain and asset growth remain uncertain in optimisation programmes the short term • Capital expenditur
Slide 8: Key industry themes different from last year
Key industry themes different from last year May 2008 May 2009 Maximising output Managing costs and production Increased infrastructure constraints Efficiency focus at existing infrastructure Increased competition for assets Limited competition for assets Increased project development constraints Re
Slide 9: Sustainable development performance: Stakeholder engagement
Sustainable development performance Stakeholder engagement Continuing to deliver on BEE – Secured new order mining rights Strengthening relationships with host governments – Government Relations Council established Gained extensive recognition: – Won awards for: the best international company in Afr
Slide 10: Anglo American guiding values
Anglo American guiding values Articulating our values Roll-out programme Safety • Aimed at building understanding of values and motivation to drive through Care and Respect the organisation • 61 workshops targeting 5,700 managers: – 26 locations Innovation – 10 countries – 5 continents – Three langu
Slide 11: Investment of Choice
Investment of Choice AMERICAN
Slide 12: Annual results
Annual results Despite declining prices, capacity growth and efficiencies generated a strong performance over the full year • More than tripling of operating profit in Coal with record production in all major locations • Doubling of operating profit in Ferrous Metals and Industries with record produ
Slide 13: Delivering $2bn asset optimisation and procurement initiatives
Delivering $2bn asset optimisation and procurement initiatives progress being made on Asset Optimisation Significant • $1 bn operating profit growth from • Supply chain initiatives on track to Asset Optimisation 2009 to 2011 deliver benefits of $1 bn by 2011 • AO embedded throughout • Over $200m del
Slide 14: Anglo has taken necessary actions to be well positioned through the cycle
Anglo has taken necessary actions to be well positioned through the cycle • Long life, cost advantaged assets largely in Q1 and Q2 of cost curve • Unique portfolio in precious, bulks and base • Strengthened financial position • Internal focus on improving performance, returns and operational excelle
Slide 15: Strong project pipeline preserved
Strong project pipeline preserved 2010 / 2011 2012 / 2013 2014 and beyond Minas-Rio Los Bronces Quellaveco Phase I Pebble Sishen Barro Alto South Jacaré Cerrejón P40 Sishen Collahuasi Twickenham Expan. 2 Michiquillay Expansion 1 Sishen Pellets New Largo Unki Heidelberg U/ground Elders Opencast Amand
Slide 16: Investment of choice
Investment of choice Focused on delivering substantial value throughout the cycle, leveraging our world class asset base and building our $50bn growth pipeline • A unique world-class portfolio of precious, bulks and base metals well positioned at lower end of cost curve in attractive markets • Major
Slide 17: Partner of Choice
Partner of Choice & AMERICAN
Slide 18: Economic contribution
Economic contribution Geographic distribution of economic benefits, 2008 (managed companies). Total taxes paid of $4.2 billion, value added of $13.2 billion
Slide 19: Economic contribution
Economic contribution Sharing of economic benefits, 2008 (managed companies)
Slide 20: Social performance
Social performance Management systems Social performance initiatives ‘Anglo Social Way’ approved (April 09) Significant investment in management – World-class management standards education – Roll-out in 2009 / 2010 – MBA level social performance – Greater central oversight over programme developed
Slide 21: South African social performance review
South African social performance review In 2008 an in-depth review was undertaken of our social performance in South Africa • Areas of industry leading practice – HIV/AIDS, Anglo Chairman’s Fund, Anglo Zimele • Opportunities for enhanced implementation of social programmes – SEAT implementation, soc
Slide 22: Social – operational and project issues
Social – operational and project issues Social risks at operations and projects continue to be managed effectively • Michiquillay, Peru – Community vote in favour of Anglo proceeding with exploration • Pebble Project, Alaska – Potentially damaging ballot initiative defeated. Independent stakeholder
Slide 23: Stakeholder relations and international initiatives
Stakeholder relations and international initiatives Continued focus on enhancing relationships with key stakeholder groups • SEAT2 roll-out ongoing – Focus on complaints and grievance procedures • Government Relations Council established – Strengthened evaluation of political risks – Improved manage
Slide 24: Integrated management systems
Integrated management systems During 2008 considerable effort was devoted to the continuing development of our management systems • Completion of the Anglo Way suite of sustainable development management system standards – Safety, Occupational Health, Environment and Social • SD considerations integ
Slide 25: Principal environment issues
Principal environment issues One Anglo approach to environmental management • ‘Anglo Environment Way’ – Sets our ambition for the way we management the environment – Suite of performance standards – Climate change is a strategic priority • Mine closure – Designing for mine closure from the start and
Slide 26: Climate change and energy
Climate change and energy Disposal of non-core assets has reduced our carbon footprint. Energy efficiency and generation opportunities offer scope for value creation 26
Slide 27: Climate change and energy
Climate change and energy We continue to seek market and technology solutions to the challenges posed by energy security concerns and climate change • Energy efficiency programme – Changing mining conditions are challenging efforts to improve energy efficiency – A greater focus on measurement and re
Slide 28: Water management
Water management Water strategy developed and rolling out across the Group • A scarce resource and a valuable one • Principles – Understanding what we have – Being self-sufficient – Adding value to our business • Actions – Water balances – The economic value of water – Emalahleni – Climate scenarios
Slide 29: Biodiversity and land management
Biodiversity and land management Land stewardship integrates biodiversity and social issues • Performance Standards – Mineral and non-mineral waste – Rehabilitation – Biodiversity • Biodiversity Management Platinum – private nature reserve to protect sensitive biodiversity – Every significant site h
Slide 30: Employer of Choice
Employer of Choice AMERICAN
Slide 31: Safety
Safety 2008 saw a major improvement in our safety performance. We remain of the view that anything less than Zero Harm is unacceptable 31
Slide 32: Safety
Safety Building on safety successes to date • Long term safety strategy developed, reflecting different levels of safety maturity across the group • Safety priorities 2009-2014: – Safety leadership and culture – Risk management – Competence and development – Learning (both from incidents and outside
Slide 33: Health
Health Zero Harm mindset being embedded into health management. Anglo Health Way and Management Guidelines produced and rolled-out Zero mindset • ‘Safety’ and ‘Care and Respect’ are core values • Risk assessment • Elimination of hazardous exposures through engineering control at source • Holistic ap
Slide 34: HIV/AIDS
HIV/AIDS Strengthened commitment Encouraging results • Increased participation in • Infections are falling, especially in workplace programmes: Anglo Coal, and adherence to – VCT uptake 63,817 / 77% in treatment programmes has improved Southern Africa – Estimated number of HIV+ employees now at 14,4
Slide 35: Human resources
Human resources In 2008 we appointed a new Group Head of Human Resources and continue to strengthen and integrate HR processes across Anglo • 105,000 employees, 35,000 contractors • 80 percent of employees represented by works councils, trade unions etc • 18.6 percent of management now women • 3,700
Slide 36: Diversity
Diversity We are continuing to enhance the diversity of our workforce around the world • Transformation in South Africa and women in mining remain the biggest issues • Seeking to transfer our experience from South Africa to other parts of the group to ensure we benefit from our increasing geographic
Slide 37: Transformation
Transformation We continue to make strong progress on transformation of our workforce and supply chain in South Africa • Continued progress on increasing HDSA participation in management • Procurement from BEE businesses up to Rand 24.6 billion ($3 billion), a 42 percent increase on 2007 • Supportin
Slide 38: Question and Answer Session
. . GLO Question and Answer Session & AMERICAN