PRESENTATION ON
SUSTAINABLE DEVELOPMENT
AND
CORPORATE RESPONSIBILITY
ISSUES
29 April 2003
Anglo American
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
Safety, Health & Environment
Dr John Groom
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 Sustainable Development
- Anglo American played a key role
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
Extractive Industries Transparency Initiative
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
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 certification by end
of 2004.
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
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 and
protected areas
– Key sponsor of the UNEP World Conservation Monitoring Centre in
Cambridge
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 report.
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 Anglo Platinum
SO2 emissions by 55 000 tonnes/year by end of 2004
• Fuel cell technology: joint venture with Johnson
Matthey
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 emission reporting remains incomplete
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
0.04
0.87
0.64
0.5
0.031
0.033
0.02
0.020
0.00
0.0
2000
2001
2002
2003
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
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
Occupational Health
• Developed integrated industrial hygiene/
occupational health management guidelines:
roll-out commenced
• Performance audited against the guidelines
will provide leading indicators
Human Resources
Russell King
Key Issues
• Decentralised business model but with strong
corporate values
• Corporate role to advise and facilitate
• Sceptical about utility of data aggregation
Key Data
• 127 000 employees in managed operations of which:
–
–
–
–
Africa
Europe
The Americas
Australasia
85 000
30 000
8 500
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 costs
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)
Longstanding programmes to develop HDSA managers, including through
educational bursaries c. 600
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
South African Challenges
Black Economic Empowerment
Nick Von Schirnding
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; housing conditions and community development
• Money Bill - consultation
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
•
2001
Small business development
–
–
•
2000
Currently invested in 20 companies; 1 000+ jobs
Khula Mining Fund
Chairman’s Fund support for education
2002
Social, Community and
Economic Issues
Edward Bickham
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
• Development of ‘best practice’ in relation to indigenous peoples
2002 - Controversies
• Zambia – withdrawal from KCM
• Colombia – Resettlement
• Congo – UN Special Panel
HIV/AIDS - I
HIV/AIDS policy
and strategy
development
Rigorous
scientific
reflection
1
9
Linking care
to prevention
Situating
prevention in a
community
context
Developing
culturally appropriate
prevention messages
8
2
Total
Management
Commitment
7
3
Tackling
socio-economic
factors
4
6
Challenging
denial and
stigma
5
Sustaining
awareness
and education
Establishing
partnerships
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
Western Cape
KwaZuluNatal
Communities I - Objectives
• Engagement and consultation
• Enhance capacities / economic upliftment
• Improved management of socio-economic impacts
• Community projects to reflect local priorities
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 Engagement Guidelines and ‘Good
Neighbours’ publication
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
Communities IV – Economic Upliftment
• Indigenous management and local labour (eg,
Skorpion)
• Creative use of procurement
• Income generation schemes
• Small business development model
Corporate Social Investment
CSI Expenditure
35
30
$ million
25
20
15
10
5
0
1
1999
2
2000
3
2001
4
2002
• CSI expenditure US$28.8
million
• 0.9% of pre-tax profit
• Priorities: education,
health and community
development
• Chairman’s Fund leading
social investment vehicle
in South Africa
• ENGAGE campaign –
employee volunteering
Economic Contribution
Distribution of Benefits Arising from Economic
Activity During 2002 ($m)
Suppliers
8,730
Employees
2,796
Dividends
1,011
Company Tax
621
Interest
300
Payments to Governments
$m
Taxes and Other Payments to
Governments 2002
900
800
700
600
500
400
300
200
100
0
Africa
Europe
Managed companies
North and Aust/Asia
South
America
Non-managed companies
Anglo American's Regional Economic
Contribution 2002
7,000
6,000
$m
5,000
4,000
3,000
2,000
1,000
Africa
Europe
North and South
America
Australia / Asia
Value added (non-managed)
Value added (managed)
Payments to suppliers, indirect taxes and royalties (non-managed)
Payments to suppliers, indirect taxes and royalties (managed)
‘Good Citizenship’ – Assurance and Reporting
Business
Principles
Supply Chain
• contractors
• suppliers
• contract compliance
• Launch Briefings
• Training
• Integrate into
management
processes
• Provision for whistleblowing
KPMG Roll-out
Review
Internal audit to carry
out reviews on request
Operations’ Annual
Letter of Assurance
Divisional CEOs
Letters of Assurance
Anglo American
plc
‘Report to
Society’
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
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