Anglo American Plc · LSE:AAL
Anglo American — ESG Presentation (March 2017)
36 slides from Anglo American's sustainability presentation, Mar 16, 2017
Slide 1: 2016 Sustainability Performance
2016 SUSTAINABILITY PERFORMANCE Presentation to Investors. March 16 2017 1
Slide 2: Safety Share
AngloAmerican SAFETY SHARE
Slide 3: Delivering Change, Building Resilience
DELIVERING CHANGE, BUILDING RESILIENCE 1 • Free cash flow target exceeded…$2.6bn vs $0.4bn. Delivering on commitments • Net debt at $8.5bn…………..well below $10bn target. 2 Operational • Operating model driving productivity improvements. improvement • EBITDA margin up 5% points…despite lower prices. 3
Slide 4: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS Actual Target EBITDA(1) $6.1bn $4.5bn(2) Cost & volume improvements $1.5bn $1.6bn ~ Capital expenditure(3) $2.5bn <$2.7bn Attributable free cash flow $2.6bn $0.4bn(2) Net debt $8.5bn <$10bn Net debt / EBITDA(1) 1.4x <2.5x Note: Based on targets set in February
Slide 5: Sustainability Scorecard
SUSTAINABILITY SCORECARD A snapshot of 2016 performance Fatal injuries Recordable HIV testing Employees Employees New cases of injury rate & exposed exposed occupational SAFETY counselling to noise to dust disease & HEALTH Level 3-5 Energy Water Greenhouse Aligned environmental savings savings gas c
Slide 6: Sustainability Scorecard
SUSTAINABILITY SCORECARD A snapshot of 2016 performance Fatal injuries Recordable HIV testing Employees Employees New cases of injury rate & exposed exposed occupational SAFETY 11 0.71 88% counselling to26,280 noise to 6,047 dust 111 disease & HEALTH Level 3-5 Energy Water Greenhouse Aligned environ
Slide 7: Safety
SAFETY In 2016 In 2016, we lost 11 members of our workforce in 10 fatal work-related incidents. This is unacceptable. 35% Fewer injuries 24% TRCFR improved (>7,000) fewer 20% 21% LTIFR improved lost work days 2017 focus • Drive Safety Leadership Culture. • Build organizational capability and capacit
Slide 8: Developing a Capable and Engaged Workforce
DEVELOPING A CAPABLE AND ENGAGED WORKFORCE Our people are the business We aim to resource the organisation with a capable, engaged and productive workforce and are committed to ensuring no harm comes to any of our people. In 2016 Anglo American today • Four cases of industrial action. Under 30 • Rea
Slide 9: Providing Safe and Healthy Work Environments
PROVIDING SAFE AND HEALTHY WORK ENVIRONMENTS In 2016 Year on year reduction on TB incidence 33% rate. Lowered to 447 per 100,000. 48% less than the SA national average. New cases of occupational disease vs. 111 163 in 2015. 4,400 Silicosis claims agreed. Employees in Southern Africa know their 88% H
Slide 10: Social Standards
SOCIAL STANDARDS Building and maintaining trust between local stakeholders and our operations In 2016 • Social Way: We eliminated all serious non-compliances and greatly reduced moderate non-compliances. • Social incidents: 823 Recorded 163 were levels 3 or 4 0 level 5 2017 priorities • Achieve full
Slide 11: Maximising the Benefits of Mining
MAXIMISING THE BENEFITS OF MINING We focus on improving the productivity of local markets and public institutions Our approach is to focus on the transformational opportunities in our core activities and complement that with broader partnerships to support development beyond mine closure. Since 2008
Slide 12: Managing Environmental Impacts
MANAGING ENVIRONMENTAL IMPACTS In 2016 • Results showed steady improvement in all requirements. • Held Energy Open Forum Level 4 or level 5 environmental 0 incidents in 2016 Level 3 (moderate impact) 4 environmental incidents during 2016 In 2017 Our focus will be on maturing our approach to environm
Slide 13: Water
WATER Adopting a catchment-wide approach Around 75% of our current portfolio is located in high-water-risk regions. New approach measures cubic We will look at water as a regional resource, beyond the metres of water fence of the mine. usage per ton of This marks a step-change in our approach to wat
Slide 14: Climate Change and Energy
CLIMATE CHANGE AND ENERGY Climate projections inform our decisions In 2016 Million tonnes of CO2-equivalent 17.8 emissions (Mt CO2e) (2015: 18.3 Mt CO2e). 320 Energy efficiency and business improvement projects saved. 5.8 Million GJ saved in energy consumption. 2017 • New focus on innovation and the
Slide 15: Mine Closure and Responsible Divestment
MINE CLOSURE AND RESPONSIBLE DIVESTMENT Designing, planning and operating a mine with closure in mind We aim to reduce long term risks and liabilities to our business and ensure that we leave a positive legacy when our mines conclude their operational lives. Mine Closure Toolbox provides a structure
Slide 16: Yesterday Today Tomorrow
“ The aim of this group is, and will remain, to make profit for our stakeholders, but to do so in such a way as to make a real and lasting contribution to the ” communities in which we operate. Sir Ernest Oppenheimer yesterday today tomorrow CONFIDENTIAL
Slide 17: Innovation
AngloAmerican INNOVATION
Slide 18: Our Strength Is Our Difference
OUR STRENGTH IS OUR DIFFERENCE Is the mine of the future already a thing of the past? … FutureSmart™ mining is challenging conventional thinking 18
Slide 19: A New Paradigm
A NEW PARADIGM 1t waste 24t waste 1t ore 8t ore 4% Cu 0.5% Cu 3m3 water 6m3 water 10 kWhr 160 kWhr 40kg Cu 1900 2017 Future 19
Slide 20: Challenging Conventional Thinking
CHALLENGING CONVENTIONAL THINKING MINING AUTOMATION IS NOT ENOUGH TO SUSTAIN THE SECTOR …Mining innovation must look beyond mine automation. It has to consider the entire mining ecosystem, creating sustainable value for all stakeholders. 20
Slide 21: Innovation Beyond the Mine
INNOVATION BEYOND THE MINE Innovation must create shared, sustainable value across the entire mining ecosystem 21
Slide 22: FutureSmart Is Redefining the Mining Innovation Cycle
FUTURESMART™ IS REDEFINING THE MINING INNOVATION CYCLE Creating shared value through the smart application and adaptation of technology Grasp Ideate Consolidate Deliver Challenges Consider entire value • Open Forums • Technology • Rapid dev. chain. 3 lenses: • Internal Programmes cycles • Sustainabi
Slide 23: Picture This
PICTURE THIS … Innovation that redefines modern mining (safety, productivity, sustainability) … extracting precious resources without the need for fresh water … a mine that gets more directly to the precious metal … continuous mining deep underground with our people out of harm’s way … a mine that l
Slide 24: Picture This: The Water-less Mine
PICTURE THIS … The Water-less Mine Challenge Approach Value • Water is a scarce resource • Integrated water-technology • Smaller or no tailings dams (predicted global shortfall of 40% solutions to further conserve and • Increase in water recycling / * Source: World Economic Forum by 2030*) where pos
Slide 25: Picture This: The Concentrated Mine
PICTURE THIS … The Concentrated Mine Challenge Approach Value The ratio of metal to ore is on Concentrate the mine™ concept: • Reduction in tailings waste average less than 1:100, yet the • Increase plant throughput generation industry processes the 100% at through improved ore • Reduction in water
Slide 26: Picture This: Modern Mine
PICTURE THIS … Modern Mine Challenge Approach Value In an era of increasing costs and • Smart technology application and • The ability to mine lower grade falling productivity precious adaptation ores and complex mineralogy resources are increasingly difficult • OEM collaboration on advanced • A saf
Slide 27: Picture This: The Intelligent Mine
PICTURE THIS… The Intelligent Mine Challenge Approach Value To measure what matters - at an Integrated, and systems-based, • Safety and productivity gains enterprise level - in the face of ever using advanced analytics and • Smarter, more informed increasing sources of more complex machine-learning
Slide 28: Challenging Conventional Thinking
CHALLENGING CONVENTIONAL THINKING “Can we make a giant battery from a tailings pond?” Energy Open Forum, December 2016 28
Slide 29: Impacts of Innovation on Sustainability
IMPACTS OF INNOVATION ON SUSTAINABILITY 29
Slide 30: A Holistic Approach
A HOLISTIC APPROACH Mapping out the sustainability implications: • Environmental impacts, including on land energy and water • Workforce requirements, including number and skills levels • Contributions to host communities and economies • Customer expectations Developing a Group-wide sustainability s
Slide 31: A Global Consultative Approach
A GLOBAL CONSULTATIVE APPROACH 31
Slide 32: Development Process
DEVELOPMENT PROCESS OPPORTUNITIES RAPID AND ROBUST DEVELOPMENT PROCESS IMPLEMENTATION AND RISKS Investor and customer expectations FutureSmart™ mining Innovation programme Long-list Consolidation of 50+ possible and ranking Shortlist Further goals / initiatives of 9 priority consultation issues and
Slide 33: Sustainability Strategy Framework
SUSTAINABILITY STRATEGY FRAMEWORK NINE PRIORITY ISSUES AROUND THREE STRATEGIC IMPERATIVES REGIONAL SUSTAINABILITY PLANS THRIVING ENVIRONMENT COMMUNITIES Collaborating with Wellbeing Water our stakeholders to address the most Livelihoods Climate Change pressing regional Education Conservation sustain
Slide 34: Sustainability Strategy Framework: Addressing Material Issues
SUSTAINABILITY STRATEGY FRAMEWORK: ADDRESSING MATERIAL ISSUES Developing a capable Managing the environmental and engaged workforce impacts of mining Wellbeing Water Providing safe and healthy Water Livelihoods Climate Change work environments Education Conservation Upholding the highest Climate cha
Slide 35: Sustainability Value Captured in Four Indicators
SUSTAINABILITY VALUE CAPTURED IN FOUR INDICATORS SUSTAINABILITY IS ABOUT CREATING VALUE AND CONSISTENCY OF DELIVERY GROWING OPERATIONAL FEWER ACCESS TO EFFICIENCY SURPRISES RESOURCES RETURNS Improved Positioned as Additional productivity and development partner opportunities resource efficiency of c
Slide 36: Thank You and Q&A
THANK YOU AND Q&A 36