Anglo American Plc · LSE:AAL
Anglo American — ESG Presentation (October 2021)
45 slides from Anglo American's sustainability presentation, Oct 29, 2021
Slide 1: Sustainability Performance, 29 October 2021
Sustal Perfor 2071:Octc 29 October 2021
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily materials/slides for a presentation con
Slide 3: Agenda
Agenda E – Healthy Environment Mark Cutifani – Chief Executive S – Thriving Communities Jon Samuel – Head of Responsible Business Partnerships G – Trusted Corporate Leader Zahira Quattrocchi – Head of Tax Anglo American / © 2021 3 Fuel cell boost convertors for power plant of fuel cell haul truck
Slide 4: Health & Safety Share
Health & Safety Share Mark Cutifani – Chief Executive Anglo American / © 2021 4
Slide 5: Our 'WeCare': Covid and resilience
Our ‘WeCare’: Covid and resilience Responsible & holistic approach supporting operations, protecting lives & livelihoods in our workforce & communities Robust operating protocols & controls Rigorous testing approach Mental health & gender-based Active support to drive vaccine violence support uptake
Slide 6: Opening Remarks
Opening Remarks Mark Cutifani – Chief Executive Anglo American / © 2021 6
Slide 7: Re-imagining mining to improve people's lives
Re-imagining mining to improve people’s lives Anglo American / © 2021 7
Slide 8: Our Sustainable Mining Plan at the heart of our strategy
Our Sustainable Mining Plan at the heart of our strategy Anglo American / © 2021 8
Slide 9: 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 incidents1,4 111 3.6 101 3.2 96 6 2.7 11 2.2 2.1 2.2 9 4 39 5 30 2 4 2 10 1 1 1 0 2016 2017 2018 2019 2020 YTD 2016 2017 2018 2019 2020 YTD 2021 2016 2017 2018
Slide 10: Working to deliver value to all stakeholders
Working to deliver value to all stakeholders Enterprise development initiatives Female senior management Social performance Jobs supported % representation Social Way 2.05 91% 96% 84% 89% 138k 28% 132k 27% 125k 121k 24% 116k 21% 2016 2017 2018 2019 18% 15% Social Way 3.0 Transition milestones achiev
Slide 11: Good progress on 2030 Sustainable Mining Plan goals
Good progress on 2030 Sustainable Mining Plan goals Healthy Thriving Trusted Environment Communities Corporate Leader 30% GHG emissions6 SDG 3 health targets in host Local accountability forums communities 30% energy efficiency6 National accountability forums Host communities schools in top 20%
Slide 12: E - Healthy Environment
E - Healthy Environment Mark Cutifani – Chief Executive Anglo American / © 2021 12
Slide 13: Products that enable a sustainable future
Products that enable a sustainable future Greener World Electrified World Consumer World Cu Eq production7 ~75% ~85% Future Future enabling enabling Nickel & High quality Diamonds Copper PGMs Crop nutrients Met coal Thermal coal manganese iron ore Transition enabling Exits completed & announced Angl
Slide 14: Operations carbon neutral by 2040
Operations carbon neutral by 2040 Scope 1 & 2 GHG emissions South America renewable energy Three Solar PV plants in South Africa 2030 goal – 30% reduction of GHG emissions vs 20166 Hydrogen trucks pilot Regionally integrated solar and Southern Africa Carbon neutrality wind in South Africa electrical
Slide 15: Hydrogen truck progressing well
Hydrogen truck progressing well Oct delivery 2022 commissioning (previously Nov) Hydrogen production & refuelling systems Final testing of power electronics in US Oct delivery Oct delivery Hydrogen storage rack testing & Final testing of 2MW hybrid fuel commissioning in Germany cell & battery power
Slide 16: Renewable electricity supporting GHG reductions
Renewable electricity supporting GHG reductions Renewables % of total electricity usage 56% 52% 47% 36% Rapid shift in our global electricity usage towards renewables South America 100% renewable by 2023 2020 2021e 2022e 2023e Anglo American / © 2021 16
Slide 17: Renewable infrastructure supporting emissions reduction
Renewable infrastructure supporting emissions reduction 24/7 renewable power Increased grid capacity (2.7 GW – 4.4 GW) 2030 completion Investment led by third party infrastructure funds Anglo American / © 2021 17
Slide 18: Summary inventory of our Scope 3 emissions
Summary inventory of our Scope 3 emissions Scope 3 GHG emissions 115MT 77% of our emissions driven by Total Scope 3 emissions steel industry Leased Investments Capital Business Transportation Use of assets goods travel & distribution sold products Purchased Transportation Franchises Operational Empl
Slide 19: Ambition: 50% reduction in Scope 3 emissions by 2040
Ambition: 50% reduction in Scope 3 emissions by 2040 Scope 3 GHG emissions Production growth in future enabling Thermal coal products mines divested Our ambition: Met coal 50% reduction Iron ore Production growth Steel value chain outpaces steel value decarbonisation chain decarbonisation takes effe
Slide 20: Scope 3 reduction driven by portfolio, industry & efficiencies
Scope 3 reduction driven by portfolio, industry & efficiencies Portfolio Partnering Controllables Asset depletion aligned to Working with customers and Manage emissions in freight & demand technology partners towards supply chain steel industry decarbonisation Anglo American / © 2021 20
Slide 21: Contributing to the Just Transition
Contributing to the Just Transition Mine Closure Collaborative Regional Planning Development Responsible Transition from The Future of Thermal Coal Work Anglo American / © 2021 21
Slide 22: Active route to a greener world
Active route to a greener world Improve Invest in Switch to Transition the Balance residual efficiency innovation renewables portfolio emissions 2020 2021-22 2030 2040 8% SA Thermal Coal demerger completed10 30% 30% Carbon energy improvement in net reduction in neutrality8 efficiency9 Cerrejón sale
Slide 23: S – Thriving Communities
S – Thriving Communities Jon Samuel – Head of Responsible Business Partnerships Anglo American / © 2021 23
Slide 24: Socio-economic development embedded in our DNA
Socio-economic development embedded in our DNA 1954 “The aims of this Group are, and will remain, to make profits for our 2021 shareholders, but to do so 2012 2019 First social in such a way as to make a 1989 2007 SEAT Version 3 2014 Establishment of metric in LTIP real and lasting Zimele, our small
Slide 25: Collaborative Regional Development: Innovative, collaborative & inclusive
Collaborative Regional Development: Innovative, collaborative & inclusive Business Orientated Collaborative Deep Listening Data & Spatial Analysis Approach Partnerships Scaled impact Planning & Discovery Identifying Impact Partnership Implementation Scaling & Analysis Opportunities Evaluation Develo
Slide 26: Driven by our scale and capabilities
Driven by our scale and capabilities Programmatic Partnerships Productivity Levers Focus on large, Work in Build the Pulling business long-term, partnership with productivity of the levers – programmatic other regional & local procurement & initiatives stakeholders private, public & expertise volunt
Slide 27: Valued adding sustainable & inclusive development
Valued adding sustainable & inclusive development Including in the agricultural sector 1 2 3 Set up commercial Establish shared services and Deliver best practice & Actions agri ventures on landholdings & agro-processing integrated small-holder core farms development projects 21 3 Establish a commer
Slide 28: Embedding positive local impacts
Embedding positive local impacts Brazil, Chile & Peru Zimbabwe ‘Beyond Extraction’ ‘Takura’ Multi-year partnership with Inter-American Development 3 year programme focussed on horticulture & Bank and TechnoServe poultry value chains 2,600+ individuals & organisations trained 600+ farmers trained 5,4
Slide 29: Beyond traditional social investment funding sources
Beyond traditional social investment funding sources Social investment Site & Business Unit Traditional Anglo American Foundation funding Third party grants Host governments & multi-laterals Private foundations Commercial sources Impact funding Exploring Partnering with other companies Sustainabilit
Slide 30: G – Trusted Corporate Leader
G – Trusted Corporate Leader Zahira Quattrocchi – Head of Tax Anglo American / © 2021 30
Slide 31: Substantial contributions benefit all stakeholders
Substantial contributions benefit all stakeholders Corporate Taxes 4.1 5.3 $2.4bn Royalties & Mining Taxes $1.2bn $25.7bn Other Taxes 2020 tax & economic 3.6 contribution $0.5bn 0.1 Taxes Collected 12.6 $1.2bn Taxes paid12 Wages & related payments Corporate social investment Procurement Capital inve
Slide 32: Best practice transparency and governance
Best practice transparency and governance Our tax approach Tax Governance Tax & Economic Contribution Report Sustainability Report Stakeholder Engagement Integrated Annual Report Effective Tax Rate Group Tax Strategy Country by Country Data Board Oversight GRI 207 Additional Metrics Anglo American /
Slide 33: Tax integrated in Sustainable Mining Plan
Tax integrated in Sustainable Mining Plan Global & Domestic Partnering Healthy Thriving Trusted Environment Communities Corporate Leader Supporting Business Targeted Tax Reporting Governance Initiatives Building capacity of Transparency Green Taxes – Policy administrations Tax Morale Green Taxes – C
Slide 34: Positioned for a sustainable future
Positioned for a sustainable future Mark Cutifani – Chief Executive Anglo American / © 2021 34
Slide 35: Technical innovation unlocks value & sustainability benefits
Technical innovation unlocks value & sustainability benefits Carbon Neutrality Energy Strategy VOXEL & APC Bulk Ore Sorting Hydrogen Truck Hydraulic Dry CPR P101 Stack Anglo American / © 2021 35
Slide 36: Re-imagining mining to improve people's lives
Re-imagining mining to improve people’s lives Effectiveness Efficiency Sustainability >10% 15-20% 7 Pillars of Value Free Cash Flow13 ROCE14 embedded Safety Care and respect Integrity Accountability Collaboration Innovation Anglo American / © 2021 36
Slide 37: Footnotes
Footnotes 1. Recordable incidents. Data relates to subsidiaries and joint operations over which Anglo non-controlling interests in operations where the Group has control but does not hold 100% American has management control. Since 2018 data for fatalities, TRCFR and of the equity. environmental met
Slide 38: Appendix
Appendix Anglo American / © 2021 38
Slide 39: ESG integrated in decision making
ESG integrated in decision making 2020 Management Scorecard New cases HIV+ Safety & Fatal Injuries1 Recordable injury rate1,2 occupational Noise exposure1,4 Inhalable hazards HIV status known employees health 2 2.14 disease1,3 30 72% exposure1 6% 89% undergoing ART 93% Energy Level 4-5 GHG savings5
Slide 40: Progress towards a greener future
Progress towards a greener future Energy5 GHG emissions5 mGJ CO2 equivalent emissions 106 18 18 18 97 16 16 87 ~15 84 81 ~84 63 11 2016 2017 2018 2019 2020 YTD 2021 2016 2017 2018 2019 2020 YTD 2021 Driven by operational efficiency and innovation On track for 30% net reduction5 in GHG emissions by 2
Slide 41: Scope 3 methodology reconciliation
Scope 3 methodology reconciliation Our full methodology is published on our website (https://www.angloamerican.com/sustainability/environment/climate-change). The four main areas in which we have evolved our approach are: 1. Increased specificity of emissions, replacing industry average emission fac
Slide 42: SMP refresh
Sustainable Mining Plan (SMP): Ensuring stretch and relevance 2016-18 2021 + SMP 1.0 driven through Global Sustainability Pillars Evolving stakeholder expectations Healthy Environment Thriving Communities Trusted Corporate SMP refresh Leader Emerging technology and solutions Continuing evolution Add
Slide 43: Sustainable Mining Plan aligned with UN SDGs
Sustainable Mining Plan aligned with UN SDGs Anglo American / © 2021 43
Slide 44: Footnotes
Footnotes 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 operations in Namibia and Botswana. 2. Total Recordable Cases F
Slide 45: Investor Relations
Simple conversion of existing divider. Looks a bit old fashioned now I think compared to the rest of the fresh, modern style Investor Relations Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718 Juliet Newth juliet.newth@angloamerican.com Tel: +44 (0)20 7968 8830 Michelle Jarman