Anglo American Plc · LSE:AAL

Anglo American — ESG Presentation (April 2003)

40 slides from Anglo American's sustainability presentation, Apr 29, 2003

  1. Slide 1: Presentation on Sustainable Development and Corporate Responsibility Issues

    PRESENTATION ON SUSTAINABLE DEVELOPMENT AND CORPORATE RESPONSIBILITY ISSUES 29 April 2003 Anglo American

  2. Slide 2: Presentation Team

    Presentation Team Sir Mark Moody-Stuart – Chairman John Groom – Safety, Health and Environment Russell King – Human Resources and Business Development Nick Von Schirnding – Investor and Corporate Affairs Edward Bickham – External Affairs

  3. Slide 3: Safety, Health & Environment

    Safety, Health & Environment Dr John Groom

  4. Slide 4: Global Mining Initiative

    Global Mining Initiative • Mining, Minerals and Sustainable Development project • GMI Conference, Toronto • International Council on Mining and Metals - Characterised by intensive engagement with stakeholders - Provided a solid basis for our participation at the Johannesburg World Summit on Sustaina

  5. Slide 5: International Council on Mining and Metals

    International Council on Mining and Metals • SD Charter – A commitment to 10 key principles – A commitment to be measured against them • International engagement – Global Reporting Initiative – Community Engagement tools project with the World Bank – World Bank Extractive Industries Review – Extract

  6. Slide 6: Report to Society

    Report to Society Scope now expanded to become an SD Report • Business practices & performance • Workplace – Safety – Occupational health – Human resources • Environment • Society – Community health – Social & community initiatives – Economic contribution Benchmarked against the GRI core indicators

  7. Slide 7: Environment

    Environment • Risk based prioritising – Tackling global issues: using local illustrations • Energy and greenhouse gases – Much improved linkage to units of production – Climate change policy – Value-at-risk study completed • ISO 14001 certification now covers 51% of turnover. The target is full cert

  8. Slide 8: Environment

    Environment • Water management – Still reporting in aggregate – Future focus will be on individual businesses where water issues are a priority – For example, Lisheen, Namakwa Sands, Mantos Blancos and Mondi Paper have innovative water-use strategies

  9. Slide 9: Biodiversity

    Biodiversity • Clear strategy • Site biodiversity action plans to be developed (where not already in place) – Link to environmental impact assessment and closure planning • Corporate contributions to the global challenge – Kew Millenium Seedbank – Active partners in the ICMM/IUCN dialogue on mining

  10. Slide 10: Environmental Targets

    Environmental Targets Besides the management system targets(ISO14001 and FSC Certification), our business units are setting clear, quantifiable environmental targets that are of greatest relevance to their particular circumstances and their communities. Many such specifics are listed on p. 51 of our

  11. Slide 11: Technological Innovations

    Technological Innovations • Process R&D and alternatives to traditional smelting (HBMS zinc pressure leach) • Sulphate reducing bacteria for water treatment at South African coal mines • Coal-bed methane recovery for use (Australia) • Energy efficient technologies • New smelting process will reduce

  12. Slide 12: Legal Compliance Verification

    Legal Compliance • 281 incidents were reported involving the regulatory authorities (336 in 2001) • Fines paid totalled $162,000 ($187 000 in 2001) Verification • KPMG conducted their third review of our SHE performance and reporting • Nine sites visited, and previous site visits reviewed • Methane

  13. Slide 13: Safety I

    Safety I 2.5 0.10 Lost time injury frequency rates (LTIFR) 2.26 Fatal injury frequency rates (FIFR) 2.0 0.08 1.50 1.5 0.06 1.0 0.87 0.04 0.64 0.031 0.033 0.5 0.02 0.020 0.0 0.00 2000 2001 2002 2003

  14. Slide 14: Safety II

    Safety II • 127 000 employees: c.65 000 contractors in managed operations • 47 fatal injuries – down by 33% from 2001 • Lost-time injuries down by 42% • Introduction of Golden Rules • Safety performance an element of Executive and Management remuneration Much more remains to be done

  15. Slide 15: Safety III

    Safety III • Challenging new targets set • Visible felt leadership • Training and the promotion of safe behaviour • The development of leading indicators • The fostering of a true safety culture • OTTO: Zero Tolerance, Target Zero • Our clear goal is to do business without hurting people

  16. Slide 16: Occupational Health

    Occupational Health • Developed integrated industrial hygiene/ occupational health management guidelines: roll-out commenced • Performance audited against the guidelines will provide leading indicators

  17. Slide 17: Human Resources

    Human Resources Russell King

  18. Slide 18: Key Issues

    Key Issues • Decentralised business model but with strong corporate values • Corporate role to advise and facilitate • Sceptical about utility of data aggregation

  19. Slide 19: Key Data

    Key Data • 127 000 employees in managed operations of which: – Africa 85 000 – Europe 30 000 – The Americas 8 500 – Australasia 3 500 • Contractors c. 65 000 • 2002 – no major industrial disputes • Support freedom of association – 70% union membership • Training – minimum 2.2% of total employment co

  20. Slide 20: Human Resources – Priority Challenges I

    Human Resources – Priority Challenges I DIVERSITY Ensuring equal opportunities throughout the organisation globally Gender • c. 10% of employees are women • c. 15% in management roles South Africa • Employment Equity • By 2008, 40% of managerial employees should be HDSAs (c. 22% in 2002) • Longstand

  21. Slide 21: Human Resources – Priority Challenges II

    Human Resources – Priority Challenges II • Talent Management – Key aspect of diversity agenda – Part of senior management performance contracts • Performance Management and Development – Now cover about half of employees • Employee Communication – Developing two-way dialogues

  22. Slide 22: South African Challenges: Black Economic Empowerment

    South African Challenges Black Economic Empowerment Nick Von Schirnding

  23. Slide 23: South African Challenges

    South African Challenges • Minerals Development & Petroleum Act • Empowerment Charter – 15% equity or production ownership in 5 years – 26% equity or production ownership in 10 years • Empowerment Scorecard – Ownership; beneficiation; procurement; employment equity; human resources development; hous

  24. Slide 24: Anglo's Black Economic Empowerment Commitment

    Anglo’s Black Economic Empowerment Commitment • US$1.8 billion in BEE transactions completed • Procurement expenditure of US$800 million from black-owned businesses 2500 2000 1500 ZAR Millions 1000 500 0 1999 2000 2001 2002 • Small business development – Currently invested in 20 companies; 1 000+ jo

  25. Slide 25: Social, Community and Economic Issues

    Social, Community and Economic Issues Edward Bickham

  26. Slide 26: Human Rights

    Human Rights • Strong commitment in ‘Good Citizenship’ Principles – Support Universal Declaration – Commitment to make representations on behalf of employees and communities • Major issues in Zimbabwe • Consideration of adherence to ‘Voluntary Principles on Security and Human Rights’ • Child labour

  27. Slide 27: 2002 - Controversies

    2002 - Controversies • Zambia – withdrawal from KCM • Colombia – Resettlement • Congo – UN Special Panel

  28. Slide 28: HIV/AIDS - I

    HIV/AIDS - I HIV/AIDS policy and strategy Developing Rigorous development culturally appropriate scientific prevention messages reflection 1 9 2 Tackling Linking care socio-economic Total factors to prevention 8 Management 3 Commitment Situating 7 4 Establishing prevention in a community 6 5 partner

  29. Slide 29: HIV/AIDS - II

    HIV/AIDS - II • Voluntary counselling and testing • ART initiative for employees (24% infection rate) • Treatment protocols in place • 30 sites now registered for ART • Estimate 3 000 on treatment after 12 months • Seeking to broaden coverage of ART • Emphasis on community partnerships – Zimbabwe –

  30. Slide 30: Communities I - Objectives

    Communities I - Objectives • Engagement and consultation • Enhance capacities / economic upliftment • Improved management of socio-economic impacts • Community projects to reflect local priorities

  31. Slide 31: Communities II - Engagement

    Communities II - Engagement • Community Engagement Plans – 3-year rolling: – Consultation – Management of key issues – Complaints procedures – Contribution to local economy – Support for community projects – Resources and accountabilities • Growth in Community Liaison Panels • 2002 – Community Engag

  32. Slide 32: Communities III – Managing Impacts

    Communities III – Managing Impacts • Social Impact Assessment for new projects • Rapid Socio-Economic Assessment Methodology – pilot projects: – Mondi Forest, SA – Catalao, Brazil – German Creek, Australia

  33. Slide 33: Communities IV – Economic Upliftment

    Communities IV – Economic Upliftment • Indigenous management and local labour (eg, Skorpion) • Creative use of procurement • Income generation schemes • Small business development model

  34. Slide 34: Corporate Social Investment

    Corporate Social Investment CSI Expenditure • CSI expenditure US$28.8 35 million 30 • 0.9% of pre-tax profit 25 • Priorities: education, health and community $ million 20 15 development 10 • Chairman’s Fund leading 5 social investment vehicle 0 in South Africa 1 2 3 4 1999 2000 2001 2002 • ENGAGE ca

  35. Slide 35: Economic Contribution

    Economic Contribution Distribution of Benefits Arising from Economic Activity During 2002 ($m) Suppliers 8,730 Employees 2,796 Dividends 1,011 Company Tax 621 Interest 300

  36. Slide 36: Payments to Governments

    Payments to Governments Taxes and Other Payments to Governments 2002 900 800 700 600 500 $m 400 300 200 100 0 Africa Europe North and Aust/Asia South America Managed companies Non-managed companies

  37. Slide 37: Anglo American's Regional Economic Contribution 2002

    Anglo American's Regional Economic Contribution 2002 7,000 6,000 5,000 4,000 $m 3,000 2,000 1,000 - Africa Europe North and South Australia / Asia America Value added (non-managed) Value added (managed) Payments to suppliers, indirect taxes and royalties (non-managed) Payments to suppliers, indirect

  38. Slide 38: 'Good Citizenship' – Assurance and Reporting

    ‘Good Citizenship’ – Assurance and Reporting • Launch Briefings Operations’ Annual • Training Letter of Assurance Business • Integrate into Principles management processes Divisional CEOs • Provision for whistle- Letters of Assurance blowing Supply Chain • contractors Anglo American • suppliers KPMG

  39. Slide 39: Embedding 'Good Citizenship' Principles

    Embedding ‘Good Citizenship’ Principles • Integration into decision-making • Development of Programmes – Communities – Employee communication – Business integrity – Human rights – Whistle-blowing – Complaints • Supply Chain Issues • Improvement of social KPIs

  40. Slide 40: Reporting: What Next?

    Reporting: What Next? • Stakeholder round-tables on evolution of Report • Progress towards more divisional and local reporting • Examining greater use of web as medium for detailed reporting

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