Environmental, Social and Governance Report 2020
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Environmental, social and governance report 2020 Anglo American Platinum Limited Purpose: re-imagining mining to improve people’s lives We are grounded in our purpose to re-imagine mining to improve people’s lives. We are transforming the very nature of mining for a safer, cleaner, smarter future. We are using more precise technologies, less energy and less water; we are reducing our physical footprint for every ounce of PGM and base metal we produce. We are combining smart innovation with the utmost consideration for our people, their families, local communities, our customers, and the world at large – to better connect precious resources in the ground to all of us who need and value them. Our focus is on our four strategic priorities to deliver the next phase of value creation for stakeholders. – Stimulate new markets and leverage new capabilities – Embed anti-fragility across our business – Maximise value from our core – Be a leader in environmental, social and governance (ESG) Refers to other pages in this report. Supporting documentation on the website Integrated annual report Annual financial statements (AFS) Ore Reserves and Mineral Resources report Notice of annual general meeting www.angloamericanplatinum.com/investors/annual-reporting/2020 Contents 1 Our business 53 Non-mineral waste 4 Governance 1 About this report 59 Product stewardship 144 Leadership and governance 2 Good governance underpins our strategy 61 Air quality 159 Audit and risk committee report 3 Business strategy 64 Mine closure and rehabilitation 164 Social, ethics and transformation committee report 4 Key sustainability issues at Anglo 3 Human and social American Platinum operations 168 Nomination committee report 5 Key contributions to Covid-19 relief 73 Safety and health of employees and 170 Safety and sustainable development communities 6 Covid-19 response committee report 79 Safety 7 Our material issues 176 Remuneration report 88 Health 11 The sustainable mining plan 195 Independent auditor’s assurance report 99 Our people 13 Our contributions to the UN SDGs 198 GRI Standards index 119 Social 19 Commitments and progress 123 Our communities 5 Appendices 2 Natural 137 Our stakeholders 202 Related disclosures 23 Environmental management 139 Supply chain – beyond compliance 203 SASB reporting table 32 Water 204 Glossary 38 Climate change and energy management IBC Administration 46 Biodiversity 50 Mineral residue facilities Cover image: Petunia Shibambo watering vegetables using water from Mogalakwena Mine’s Mapela Water Project Our business 1 2 3 4 About this report 5 This report expands on the environmental, social and governance (ESG) performance summarised in the Anglo American Platinum 2020 integrated annual report and should be read with that report on our website. It follows on from a similar report in 2019. Our suite of reports is aimed at a broad range of stakeholders for a full view of our activities in the past year and progress against sustainability-related goals. Where relevant, readers are referred to more information in another report. This facilitates an informed assessment of the value Anglo American Platinum creates in society and of its long-term sustainability. With longer-term comparatives, readers should note that corporate activity over the past six years will skew year-on-year comparisons, as will the anomalies of 2020 (such as lockdown restrictions). As with the integrated annual report, content has been guided by the following frameworks and grouped under our pillars of value: – International <IR> Framework of the International Integrated Reporting Council – South African Companies Act 71 2008, as amended (Companies Act) – JSE Listings Requirements – King Report on Corporate Governance for South Africa 2016 (King IV*) – GRI Standards 2016 guidelines (index on page 198 ) — Anglo American plc group safety and sustainable development (S&SD) indicators, definitions and guidance notes for non-financial indicators available on request Assurance – Financial and non-financial aspects of our 2020 suite of reports are independently assured. The external assurer’s report on specific non-financial indicators is on page 195 . We welcome your feedback on this report which should be addressed to [email protected]. Key sustainability indicators 1 80% 18.05 million GJ fatality at managed operations of management comprises energy used 2019: 0 historically disadvantaged South 2019: 20.08 million GJ Africans 2019: 78% 4% 0 level 4 and 5 improvement in total recordable environmental incidents – case frequency rate (TRCFR) 3.94Mt target achieved 2019: 17% GHG emissions, CO2 equivalent 2019: 0 2019: 4.4Mt R3.8 billion 3 R803 million host community procurement 22.3Mm total social spend total water withdrawal 2019: R619 million 2019: 25.1Mm3 ESG ranking highlights Anglo American Platinum has again demonstrated leading ESG performance in 2020, with our strong management of environmental, social and governance issues reflected in global rankings by leading agencies: – ISS ranked Anglo American Platinum as Prime, indicating that we meet the demanding ESG requirements stipulated by ISS corporate rating methodology – Sustainalytics: our overall ranking improved, entrenching Anglo American Platinum as strong ESG performer among our peers in the precious metals sector. Our ESG-related disclosure follows best practice, with strong oversight at board and leadership levels signalling strong accountability to investors and the public. – FTSE Russell again ranked Anglo American Platinum as the ESG leader among the top 5 platinum and precious metal peers. We maintained the highest ratings for overall ESG (4.8), environmental (4.7), social (4.7) and governance (5.0) – FTSE/JSE Responsible Investment Index: we remained a constituent of the top 30 index – Maintained inclusion in Bloomberg Gender-Equality Index in 2020 DRIVING SUSTAINABLE ECONOMIES Best-practice ESG leader in Prime rating ‘A’ rating for One of S&P Global 75 level of disclosure sector, top 30 climate change 380 global Yearbook status performance index since ‘A’ for water companies top 15% in for Unki mine inception security industry * Copyrights and trademarks owned by the Institute of Directors in South Africa NPC and all rights reserved. Anglo American Platinum Limited Environmental, social and governance report 2020 1 Our business Good governance underpins our sustainable mining plan A truly integrated approach to business requires assessing all six capitals and how these contribute to our stakeholder value creation. We believe good governance is the overarching principle for the way we do business. Equally important, our capitals are fundamental to how we manage all aspects of our business to achieve our purpose and strategy. Our governance universe (below) illustrates our compliance with the acknowledged standard for good governance set out in King IV (principles shown below as IV 1-9, etc) to ensure our business strategy and underlying sustainability strategy achieve the desired governance outcomes. Our governance philosophy IV The board is committed to the highest standards of corporate governance and has applied King IV throughout its structures. It exercises effective and ethical leadership to give effect to its strategy and ensures accountability for the company’s performance. We believe good governance promotes our required outcomes of ethical culture, good performance, effective control and legitimacy. The board is the focal point for and custodian of the company’s governance framework. Our governance universe (overleaf) illustrates how the pillars of value are governed via four governance segments – board, finance, risk, social and sustainable – in support of our strategy and purpose. The elements in each segment are governed by appropriate processes, systems and resources to ensure we achieve our governance outcomes. Capitals Governance universe Governance outcomes – Board structure – Planning and budget – Memorandum of incorporation and – Operational performance charters – Asset reliability – Board evaluation – Internal controls – Succession planning and rotation – Capital allocation Financial – Key policies – Monitoring and evaluation – Board organisational culture and ethics – Funding and evaluation – Compliance with key legislation – IT governance – Remuneration and reward – Taxation Ethical – Key performance indicators – Outlook leadership Human Board Financial governance governance 10, 12, 15 IV 1, 9, 13, 14 IV Good Social and performance relationship Purpose, strategy Manufactured and values Effective control Social and Risk Natural sustainable governance governance IV 11 IV 16 Trust and – Sustainability strategy – Risk management legitimacy – Social way and performance – Operational risk assurance Intellectual – Safety and health – Internal audit – Environment – Stakeholder engagement and communication – Transformation – Human resource development – Technical mining standards Governance elements of the business model and value-creation process 2 Anglo American Platinum Limited Environmental, social and governance report 2020 1 2 3 4 Business strategy 5 Our metals and minerals move the world towards a cleaner, greener and more connected future – a more sustainable future. Today, Anglo American Platinum is leading the industry in finding new ways to source, mine, process, supply and market our products and discovering new uses for them. Using less water, less and more environmentally conscious energy and more precise technologies, we are reducing our physical