Slide 1: Gold Fields ESG Overview
GOLD FIELDS ESG OVERVIEW ANDREW PARSONS – VP SUSTAINABLE DEVELOPMENT JSE ESG Presentation – 9 November 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: DNA, charters and governance ● Section 2: ESG priorities ̵ Risk and materiality assessments ̵ Safety and Health ̵ Energy and Climate change ̵ Water ̵ Integrated mine closure ̵ Community relations and Shared Value ● Section 3: Awards and data Gold Fields ESG Overview
Slide 4: DNA, charters and governance
DNA, charters and governance
Slide 5: The Gold Fields DNA
The Gold Fields DNA Vision To Be The Global Leader In Sustainable Gold Mining Values Safety If we cannot mine safely, we will not mine. Responsibility We responsibly manage our impact on the environment and host communities. Integrity We act with honesty, fairness and transparency. Respect We treat
Slide 6: The Gold Fields DNA
The Gold Fields DNA Strategic Objective Sustainable cash generation to underpin value distribution Commitment to Stakeholders ● A winning, safe and productive team ● The most trusted and valued mining partner ● A quality portfolio of assets, providing superior returns on gold Operating Model and Str
Slide 7: 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 | November 2017 7
Slide 8: Gold Fields Sustainable Development Governance Framework
Gold Fields Sustainable Development Governance Framework External Reporting of Governance Non-Financial SD Framework Data & Structures Performance • Policies & Compliance Information • Board & Sub • Guidelines Committees Monitoring • GRI • Systems • DJSI • Exco and • Regional • CDP Climate & • Risk
Slide 9: External Standards and Indices
External Standards and Indices Gold Fields ESG Overview | November 2017 9
Slide 10: ESG priorities
Fiecps ies ESG prior
Slide 11: Risks – Internal and External
Risks – Internal and External Source: EY No Risk Description Source: WEF 1 South Deep delivery in terms of rebase plan 2 Commodity prices and currency volatility 3 Replacing resources and reserves at international operations 4 Regulatory uncertainty / Mining Charter in South Africa 5 Loss of social
Slide 12: 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 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: 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 1. Creating a working environment that is conducive to safe working practices Africa 2. Operat
Slide 15: Safety performance
Safety performance TRIFR improvement from 2014 to YTD 2017 is 44% Group Safety Stats 4.50 0.07 4.04 4.00 3.40 0.06 0.06 0.06 0.06 3.50 0.05 3.00 2.50 2.27 2.27 0.04 2.00 0.03 1.50 0.02 1.00 0.02 0.01 0.50 0.00 0.00 2014 2015 2016 2017 Fatality frequency rate Total Recordable Injury Frequency Rate 20
Slide 16: 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: YTD 2017 2016 2015 2014 2013 Noise induced hearing 0.75 0.80 0.68 1.52 0.62 l
Slide 17: 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 18: 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 19: 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 | November 2017 19
Slide 20: 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 21: Group water 2020 objectives
Group water 2020 objectives Deliver enhanced operational security and stewardship of shared water resources through innovative technologies and optimal water conservation and demand side management practices • Alternative sources of water Water Supply • Implement “fit for purpose” water Strategic ob
Slide 22: Group Water Consumption
Group Water Consumption Group Total water withdrawal vs Water intensity 40 250 212.60 35 209.00 35.25 200 30 163.81 30.21 30.32 160.43 25 150 25.18 20 15 100 10 50 5 0 0 2014 2015 2016 YTD 2017 Total water withdrawal (GL) Water use per ton (L/tonne mined) Total water used in process vs Total Water r
Slide 23: 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 24: Integrated Mine Closure: 2018 and 2019-2020
Integrated Mine Closure: 2018 and 2019-2020 2018 2019 - 2020 Integrated Mine Closure Implementation of Integrated Strategy Development Mine Closure Strategy Social Closure included in Social Closure Framework Mine Closure Plans for for Gold Fields Implementation SRCE Tool used for Progressive Rehabi
Slide 25: 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 26: Community Relations and Shared Value
Community Relations and Shared Value Gold Fields’ Social Performance Framework Gold Fields ESG Overview | November 2017 26
Slide 27: 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 US$16.2 m our host communities Host community work
Slide 28: Mining Charter compliance
Mining Charter compliance Gold Fields is committed to sustainable transformation ● SA mining industry currently operating under 2014 Mining Charter ● Next version of the Mining Charter currently in court contestation between the Chamber of Mines and the Department of Mineral Resources. Community org
Slide 29: Awards and data
Fiecps Awards and data
Slide 30: Recognition of our achievements
Recognition of our achievements 2017: 4th / 58 mining companies 2017: Excellent in Integrated Reporting Awards FTSE4Good Index Series 2017: Top 3 / 113 mining companies 2017: Included in index 2017: BBB rating (BB in 2016) 2016: Mining and Energy Visionary of the Year Top 30 Responsible Investment I
Slide 31: Sustainability - Key Performance Indicators
Sustainability - Key Performance Indicators Key Performance Indicators (excluding Safety) – 3-year trend KPI 2016 2015 2014 Total Value Distribution (US$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 32: Thank you
Thank you Download this QR code from your smartphone to gain quick access to our website