Anglo American plc · LSE:AAL
Anglo American — ESG Presentation (October 2020)
60 slides from Anglo American's sustainability presentation, Oct 30, 2020
Slide 1: Sustainability Performance
SUSTAINABILITY PERFORMANCE 30 October 2020 Updated image needed Grosvenor longwall
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following con
Slide 3: Today's Agenda
TODAY’S AGENDA ➢ Welcome ➢ Health & Safety share: Covid-19 response ➢ Sustainability integral to our strategy ➢ Pathway to carbon neutrality by 2040 ➢ Technology enabling step-change sustainability performance ➢ Social performance critical to licence to operate ➢ Governance ➢ Q&A 3
Slide 4: Health & Safety Share
HEALTH & SAFETY SHARE Mark Cutifani, Chief Executive 4
Slide 5: Covid Response
COVID RESPONSE Reinforcing our contribution to host communities… Socio-economic contribution Jobs & social investment Local procurement & investment 5
Slide 6: Sustainability Integral to Our Strategy
SUSTAINABILITY INTEGRAL TO OUR STRATEGY Mark Cutifani, Chief Executive 6
Slide 7: A Holistic Approach
A HOLISTIC APPROACH Our Purpose: Re-imagining Mining to Improve People’s Lives Effectiveness Efficiency Sustainability Embedded >10% 15-20% * across Free cash flow ROCE performance pillars 7 * >15% ROCE through the cycle, >20% ROCE at spots
Slide 8: Sustainability Integral to Our Strategy
SUSTAINABILITY INTEGRAL TO OUR STRATEGY 8
Slide 9: Sustainable Mining Plan - The Three Pillars
SUSTAINABLE MINING PLAN - THE THREE PILLARS Environment Social Governance OUR GLOBAL SUSTAINABILITY PILLARS TRUSTED HEALTHY ENVIRONMENT THRIVING COMMUNITIES PARTNERSHIP AND ENGAGEMENT CORPORATE LEADER PARTNERSHIP AND ENGAGEMENT TAILORED 5-YEAR SITE PLANS All sites and key Group functions. Flexible a
Slide 10: Healthy Environment
HEALTHY ENVIRONMENT Biodiversity Water Climate Change >22% GHG emission reduction 15-20% reduction achieved achieved one year in advance of vs 20% target target Targeting Net Positive Impact 70% recycling achieved 7% energy reduction vs 75% target vs 8% target On track Work to do ~ Work to do ~ Se
Slide 11: Thriving Communities
THRIVING COMMUNITIES Education Health & Wellbeing Livelihoods Regional programmes Country programmes South Africa education: Collaboration with London Supporting >100 schools School of Hygiene & Tropical Inclusive procurement Medicine On track On track On track See appendix for summary of Sust
Slide 12: Trusted Corporate Leader
TRUSTED CORPORATE LEADER Accountability Policy Advocacy Ethical Value Chains Group Responsible Sourcing Community Engagement Forums Standard published Policy advocacy themes & action plans Accountability forums First IRMA audit commenced – results due end 2020 On track On track On track See ap
Slide 13: Driving Towards a Safe & Healthy Future
DRIVING TOWARDS A SAFE & HEALTHY FUTURE Safety Health Environment Group TRCFR1,2 Fatalities1 Occupational health – new cases1,3 Significant incidents1,4 5.4 209 4.7 4.0 175 15 159 3.6 30 3.2 11 2.7 111 9 96 101 2.2 2.1 15 6 6 5 4 39 2 6 6 4 14 2 1 1 2013 2014 2015 2016 2017 2018 2019 Q3 2013 2014 20
Slide 14: Progress but Challenges Ahead
PROGRESS BUT CHALLENGES AHEAD GHG Savings(5) Total Energy Consumed Social Mt CO2e (Scope 1 & 2) GJ/t CuEq Social Way Compliance (%) 44 44 96 42 89 91 84 37 36 66 8 6 5 5 5 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2030 Target Reductions: 30% 30% 100% compliance And c
Slide 15: How We Measure Progress on ESG
HOW WE MEASURE PROGRESS ON ESG 2019 Management Scorecard HIV+ Inhalable New cases Safety & Fatal Recordable HIV status Noise employees hazards occupational Injuries(1) injury rate known exposure(6) undergoing exposure(6) disease health 4 2.21 94% ART 92% 73% 14% 39 Level 4-5 Energy GHG environmental
Slide 16: Pathway to Carbon Neutrality by 2040
PATHWAY TO CARBON NEUTRALITY BY 2040 Mark Cutifani, Chief Executive 16
Slide 17: Towards Carbon Neutral Mining
TOWARDS CARBON NEUTRAL MINING 17
Slide 18: Responsible Exit: SA Thermal Coal Operations
RESPONSIBLE EXIT: SA THERMAL COAL OPERATIONS Portfolio Progress on Reductions Exit: SA Thermal Coal operations Production (Mt) 80 ➢ Responsible approach to transition ➢ De-merger most likely route with primary ~30 JSE listing ➢ Timeframe expected within 1.5 – 2.5 years 2012 2020F Water reclamation p
Slide 19: Hydrogen Economy Presents Opportunities
HYDROGEN ECONOMY PRESENTS OPPORTUNITIES A clean & potentially abundant fuel… …with applications using PGMs. High energy density Easy transport & storage Alstom, hydrogen train Clean at point of use ➢ Founding member of Hydrogen Council ➢ PGMs used in transport fuel cells ➢ Particularly suited to hea
Slide 20: Technology Enabling Step-Change Sustainability Performance
TECHNOLOGY ENABLING STEP-CHANGE SUSTAINABILITY PERFORMANCE Tony O’Neill Technical Director 20
Slide 21: FutureSmart Mining
FUTURESMART MINING™ A catalyst for permanent positive change 21
Slide 22: Technology Update
TECHNOLOGY UPDATE 22
Slide 23: Technology Update
TECHNOLOGY UPDATE TECHNOLOGY UPDATE BULK ORE SORTER COARSE PARTICLE HYDRAULIC DRY STACK DIGITAL RECOVERY 23
Slide 24: Bulk Ore Sorting
BULK ORE SORTING BULK ORE SORTING • Grade uplift 7% up to 20% • Capital cost $10m to $70m (volume dependent) • 12 months full scale testing at El Soldado complete, 9% average grade uplift • Deployed in Copper, Nickel and PGMs 24
Slide 25: Bulk Ore Sorting
BULK ORE SORTING Barro Alto • Initial installation October 2019 • Testing completed August 2020 • $40m capital cost for 100% throughput – phased upgrade through 2022 Mogalakwena • Initial installation June 2019 • Testing in progress, estimated completion Nov 2020 • $30m capital cost for up to 100% o
Slide 26: Coarse Particle Recovery
COARSE PARTICLE RECOVERY COARSE PARTICLE RECOVERY • Throughput increase 15% to 20% • Cost $10m to $50m • 20% energy reduction • Up to 85% water recovery with HDS • El Soldado startup in Q1 2021 (80% of volume), Mogalakwena North in Q3 (100% of volume) • Rollouts planned for Los Bronces, Quellaveco,
Slide 27: Hydraulic Dry Stack
HYDRAULIC DRY STACK HYDRAULIC DRY STACK • Engineer tailings facilities that dry out in weeks • Geotechnically stable • Can be repurposed and terraformed • Up to 85% water recovery • El Soldado unit under construction, complete in Q3 2021 27
Slide 28: Digital
DIGITAL DIGITAL • Decision support • Decision augmentation • Decision optimisation 28
Slide 29: Coordinated Systems
COORDINATED SYSTEMS 29
Slide 30: Processing Systems
PROCESSING SYSTEMS • Footprint • Throughput • Recovery • Water • Energy • Greenhouse gases 30
Slide 31: Carbon Neutrality
CARBON NEUTRALITY 31
Slide 32: Carbon Neutrality
CARBON NEUTRALITY CARBON NEUTRALITY CLEAN GREEN ENERGY LESS ENERGY HYDROGEN DEEP ENERGY SINK 32
Slide 33: Hydrogen Truck
HYDROGEN TRUCK HYDROGEN TRUCK • Total-cost-to-operate comparable to diesel today. Direct parity by 2030 • Platinum loading in haul truck size fuel cells, 4oz (long term US DOE target). • 7 sites in planning for rollout completion by 2030 • 50% to 70% reduction in emissions (Scope 1 and 2 for open pi
Slide 34: Microwave
MICROWAVE MICROWAVE • Ore pre-conditioning • Increases throughputs • Facilitates liberation 34
Slide 35: Deep Energy Sink
DEEP ENERGY SINK DEEP ENERGY SINK • Stores green energy • Makes use of empty mine space • Potential ~800MW for 18hrs/day 35
Slide 36: Social Performance Critical to Licence to Operate
SOCIAL PERFORMANCE CRITICAL TO LICENCE TO OPERATE Anik Michaud Group Director - Corporate Relations 36
Slide 37: Social Performance Leadership
SOCIAL PERFORMANCE LEADERSHIP Stakeholder Rigorous expectations implementation of Holistic approach evolving best practice Continue to review Focus on averting harm material social issues Adherence to and delivering positive international standards socio-economic benefits Aligned to Operating Model
Slide 38: Governance of Social Performance
GOVERNANCE OF SOCIAL PERFORMANCE Purpose, leadership & culture – integrated through business Accountability for social held by the line, supported by expert central team. All sites have cross-functional Social Performance Management Committees Monitoring, evaluation & 3rd party assurance Enhanced st
Slide 39: Proactive Approach to Cultural Heritage
PROACTIVE APPROACH TO CULTURAL HERITAGE Aligned with IFC Performance Integrated Ongoing Standards Support preservation of Cultural heritage Continuous through cultural heritage embedded into business asset lifecycle processes -------- -------- -------- Promote equitable Multi-disciplinary All sites
Slide 40: Preserving Cultural Heritage at Minas-Rio
PRESERVING CULTURAL HERITAGE AT MINAS-RIO Preserving archaeological sites 100 archaeological sites discovered References to oldest Brazilian populations >10,000 years ago >40 archaeological sites protected >200,000 archaeological relics recovered 40
Slide 41: Governance
Change image GOVERNANCE Anik Michaud Group Director - Corporate Relations 41
Slide 42: Governance Underpins Our Sustainability
GOVERNANCE UNDERPINS OUR SUSTAINABILITY Governance & oversight – Stakeholder forums facilitate integrated through business ongoing dialogue Corporate governance Accountability forums (national & local) Culture & leadership Social incident procedures Reporting & Remuneration Ethics & transparency – o
Slide 43: Positioned for the Future
POSITIONED FOR THE FUTURE Mark Cutifani, Chief Executive 43
Slide 44: Committed to Delivery
COMMITTED TO DELIVERY Effectiveness Efficiency Sustainability >10% 15-20% Embedded across Free cash flow ROCE performance pillars 44
Slide 45: Active Route to a Greener World
ACTIVE ROUTE TO A GREENER WORLD Carbon neutral operations Technology minimises by 2040 environmental footprint Renewables sourced power, Bulk sorting installation hydrogen storage & haulage at Copper, PGMs & Nickel 8 sites carbon neutral Coarse particle recovery by 2030 being installed in Copper 203
Slide 46: Portfolio Positioned for a Sustainable Future
PORTFOLIO POSITIONED FOR A SUSTAINABLE FUTURE Consumer World Electrified World Greener World Cu Eq production5 ~55% ~65% later later cycle cycle Diamonds Copper PGMs Nickel & manganese Crop nutrients Steel making7 Thermal coal 46
Slide 47: Our Investment Proposition
Q&A Our investment proposition Competitive Differentiated Sustainable Assets Capabilities Returns “Leading capabilities actively improving a competitive, world-class asset base to drive sustainable, attractive returns” 47
Slide 48: Appendix
AngloAmerican APPENDIX
Slide 49: Covid Response Stakeholder Testimonials
COVID RESPONSE STAKEHOLDER TESTIMONIALS Carolyn, community member of Riecillo, Chile In Chilean communities, such as Riecillo, Anglo American ensured community members have had essential supplies delivered, channelled through the municipal Health Services and the Neighbourhood Councils. Macarena Aba
Slide 50: How We Measure the Value We Create
HOW WE MEASURE THE VALUE WE CREATE Pillars of value Description Safety and health Do no harm Environment Minimise our environmental footprint Socio-political Partner with local communities and government People Capable people Production Sustainably produce valuable product Cost Bottom half of cost c
Slide 51: Scorecard Targets
SCORECARD TARGETS HIV+ Reduction of New cases Employees Employees Safety & Recordable employees employees of Fatal Injuries knowing their exposed to injury rate: undergoing exposed to occupational 0 HIV status: noise: health YoY reduction >90% ART: YoY reduction inhalable disease: >90% hazards: 10%
Slide 52: Healthy Environment Targets
HEALTHY ENVIRONMENT TARGETS VISION Maintaining a healthy environment by creating waterless, carbon- neutral mines and delivering positive biodiversity outcomes BIODIVERSITY WATER CLIMATE CHANGE • 2021: Net positive impact (NPI) • 2020: Reduce the abstraction of freshwater • 2020: Reduce greenhouse g
Slide 53: Healthy Environment Progress
HEALTHY ENVIRONMENT PROGRESS VISION Maintaining a healthy environment by creating waterless, carbon- neutral mines and delivering positive biodiversity outcomes BIODIVERSITY WATER CLIMATE CHANGE 2021: 2020: 2020: • Biodiversity Value Assessments complete • 15-20% vs. 20% fresh water abstraction • >2
Slide 54: Thriving Communities Targets
THRIVING COMMUNITIES TARGETS VISION Building thriving communities with better health, education and levels of employment EDUCATION HEALTH & WELLBEING LIVELIHOODS • 2021: Baselines and strategies to achieve • 2021: Baseline established and strategies in • 2021: Baselines and strategies to achieve tar
Slide 55: Thriving Communities Progress
THRIVING COMMUNITIES PROGRESS VISION VISION Building thriving communities with better health, education and levels of employment EDUCATION EDUCATION HEALTH & WELLBEING LIVELIHOODS 2021: 2021: 2021: • SA education programme successfully • SA baselines completed and strategies • Jobs gap assessments c
Slide 56: Trusted Corporate Leader Targets
TRUSTED CORPORATE LEADER TARGETS VISION Developing trust as a corporate leader, providing ethical value chains and improved accountability to our stakeholders EDUCATION ACCOUNTABILITY POLICY ADVOCACY ETHICAL VALUE CHAINS Local • 2021: Finalise Group and BU / country Mine certification • 2021: Establ
Slide 57: Trusted Corporate Leader Progress
TRUSTED CORPORATE LEADER PROGRESS VISION Developing trust as a corporate leader, providing ethical value chains and improved accountability to our stakeholders EDUCATION ACCOUNTABILITY POLICY ADVOCACY ETHICAL VALUE CHAINS Local 2021: Mine certification 2021: • Key policy advocacy themes being 2021:
Slide 58: A Sustainable, Responsible & Transparent Business
A SUSTAINABLE, RESPONSIBLE & TRANSPARENT BUSINESS Recognised as a sustainability leader in our sector #2 in diversified mining overall with the highest #2 extractives company (including oil and management scores in the sector. Perceived risk gas) in the FTSE 100 based on commitments associated with
Slide 59: Additional Ratings & Accreditations
ADDITIONAL RATINGS & ACCREDITATIONS Additional ESG ratings BBB (average) Rated as prime – placing us as joint 71/100 and included in European in line with peers top mining company Index. Rated ‘Industry Mover’ Accreditations & memberships 59
Slide 60: Footnotes
FOOTNOTES All metrics in presentation shown on an underlying basis. 1. Recordable incidents. Data relates to subsidiaries and joint operations over which Anglo American has management control. Since 2018 data for fatalities, TRCFR and environmental metrics excludes results from De Beers’ joint opera