SUSTAINABILITY REPORT
2015 PRESIDENT Mark McManus
EDITORIAL COORDINATION Nicolás Gómez, Gerente de Desarrollo Sostenible Jairo Vergara, Jefe de Sostenibilidad Johanna Arjona, Jefe de Comunicaciones
WRITING AND EDITING CREO Organization
GRI REPORT EXTERNAL ASSURANCE Deloitte
PHOTOGRAPHY The Prodeco Group’s Image Bank
DESIGN, LAYOUT AND PRINT Gatos Gemelos
Barranquilla, november 2015 CONTENT
06 58 LETTER FROM OUR PEOPLE THE PRESIDENT 12 74 ABOUT THIS REPORT SAFETY AT OUR ASSETS 18 90 OUR APPROACH TO OUR ENVIRONMENTAL SUSTAINABILITY COMMITMENT 30 134 CORPORATE CARING FOR GOVERNANCE OUR COMMUNITIES 40 166 OUR ECONOMIC SUPPLY CHAIN MANAGEMENT PERFORMANCE 46 172 OUR COMMITMENT TO GRI INDICATORS HUMAN RIGHTS 7 » PAGE » SUSTAINABILITY REPORT 2015
01 LETTER FROM THE PRESIDENT
I am pleased to present the 2015 Prodeco Group sustainability report. It details our performance and achievements over the past year, as well as our most significant challenges.
The Prodeco Group is committed to Colombia’s development, contributing to sustainable social and economic growth in the regions where we operate. Year after year, we have gained the acknowledgement of our people, our host communities and members of the public. SUSTAINABILITY REPORT » PAGE » 8 9 » PAGE » SUSTAINABILITY REPORT 2015 2015
Operating safely
The safety of our employees and contractors continues to be our number one priority. We have achieved for solid waste management, agriculture and will soon be rolled out at a regional level by local exceptional results: although our workforce has increased by 13% since 2010, the number of safety-related sustainable urban transformation. The project will authorities. It will first be implemented in other rural incidents has reduced by 89% over the same period (from 145 in 2010 to 16 in 2015). In addition, our Total also generate employment and food security for communities near our assets; we hope that this Recordable Injury Frequency Rate (TRIFR) was cut by 90%, to 0.93 in 2015. vulnerable local families. It is a pilot project that second phase will be as successful as the first.
It has been rewarding to receive recognition for this level of performance. In 2015, our assets were awarded the Cruz Esmeralda Medal of Merit for excellence, for the second year in a row. This is the most important health and safety award available from the Colombian Safety Council. Together, we and our people remain committed to a safe work environment. Respect for human rights
We operate in an environmentally Upholding and protecting human rights is a priority across our business. responsible manner In 2015 we carried out a human rights risk assessment at all our assets, in line with our human rights policy. We ran it with the support of Fundación Ideas para la Paz (FIP), an independent Colombian think Today more than ever, protecting ecosystems update the Unified Environmental Management tank, to identify any potential risks to human rights from our operations with. and making efficient use of natural resources are Plan for La Jagua in 2016. among Prodeco’s key goals. We ensure that we are environmentally responsible in everything we do. This year, we also significantly revised our water management plans . This included substantial In 2015 we updated and modified the Environmental improvements to our control of erosion and run- Our contribution to the peace process Management Plan (EMP) for our mining asset at offs, which ensure that we can reuse this valuable Calenturitas, as well as the environmental licence resource within our operations. and EMP for Puerto Nuevo. These were approved by the Colombian Environmental Licensing Agency In addition, we have implemented real-time air Regional conflict has been a tragic reality of Colombia’s history. Fortunately, the country has made great (ANLA). We now have better defined tools for quality monitoring systems, both in our mines and progress towards resolving these conflicts and consolidating civil governance in the last decade. The first environmental management and monitoring, which the port. These systems allow us to continuously significant step took place in 2006, with the demilitarisation of Colombian paramilitary forces. are aligned with current environmental regulations monitor the emissions from our activities, and and the specific requirements of our assets. This to issue early warnings when dust emissions will allow us to prevent, mitigate and monitor our begin to exceed normal levels, helping us to take environmental impacts more effectively. We will immediate corrective action.
Creating value for society
The United Nations Development Programme Department (DPS)), to improve the quality of (UNDP) groups its Sustainable Development Goals educational institutions in the department of Cesar. for 2030 into five focus areas. In 2015, we created a This partnership will help around 20,000 children systematic community development strategy based and young people. We have also committed to on these five areas. As part of this strategy, we are supporting 71 business associations in Cesar and now committed to forming partnerships with local Magdalena, which will guarantee a sustainable government to invest in improving local economic, income for dozens of families, lifting them out of societal and environmental sustainability. extreme poverty.
One example is our new partnership with the We launched a unique project in the rural district government department called Social Prosperity of La Victoria de San Isidro to resolve its waste (formerly known as the Social Prosperity problem, involving an innovative integrated system SUSTAINABILITY REPORT » PAGE » 10 13 » PAGE » SUSTAINABILITY REPORT 2015 2015
Today, the Colombian government is in talks with stakeholders can work with the Colombian state to FARC and the ELN to find a peaceful solution to the find long-term solutions to the historic situation, while conflict. Progress to date has been encouraging, building a platform for future sustainable development. leading to a safer, less volatile situation, with benefits for Colombia’s people, economy and its We believe this is an opportunity for the standing on the global stage. development of our local communities and for the whole region and we intend to be key Prodeco believes that the Colombian state is participants. responsible for brokering a process for sustainable ABOUT THIS peace, including justice and reparations for all parties. The way we manage our business will continue to prove our commitment to our people, the As a major investor in Colombia, Prodeco plays a environment, our host communities and to key role in its economic development, at both the sustainable development in the regions we operate REPORT national and local level. We believe that we and our and Colombia as a whole.
This is our fourth sustainability report. It covers our societal, economic and environmental achievements during 2015, and looks ahead to our sustainability challenges for 2016.
This report includes information from the companies in the Prodeco Group (“Prodeco” or “the company”) over which we have managerial control. These are Mark McManus President C.I. Prodeco S.A., Carbones de La Jagua S.A., Carbones El Tesoro S.A., Consorcio Minero Unido S.A. and Sociedad Portuaria Puerto Nuevo S.A. As our shareholding in Fenoco stands at 39.76%, it is not included. Our train operation workers are employed by Prodeco and are therefore included in our figures.
Glencore Plc is referred to as “Glencore” throughout this report. SUSTAINABILITY REPORT » PAGE » 14 15 » PAGE » SUSTAINABILITY REPORT 2015 2015
The report is structured around the nine material topics identified this year.
This chapter introduces our company, our headline figures for the year, and key events that have taken place.
Our approach to sustainability covers our decision-making approach, which guides our actions and our direct partners, and our stakeholder engagement strategy.
Corporate governance reflects the essence of the company: it relates our values, mission, vision, Code of Conduct and anti-corruption policy.
Our economic performance details our financial management and commitments to Prodeco’s shareholders. All figures are reported in US dollars (USD).
We place human rights at the centre of everything we do. In this chapter we set out the initiatives that we have developed to encourage the upholding of human rights throughout our entire business. Prodeco is committed to Caring for our communities, including local suppliers, through the socio-economic contribution we make through our community investment.
Our people and Safety at our assets detail our continued activity to maintain a safe workplace for our people. We also go through the different training programmes, methodologies and well-being plans available to the Group.
This report complies with the core level of the Global Reporting Initiative (GRI) G4 sustainability reporting guidelines, including the metals and mining sector supplement. Material information has been verified by Deloitte & Touche.
Our environmental commitment details our progress in the protection of factors that We welcome feedback on this report or on any other aspect of sustainability at Prodeco. You can contact include air quality, wildlife management, waste management and water quality. us at www.grupoprodeco.com.co or email us at [email protected] SUSTAINABILITY REPORT » PAGE » 16 17 » PAGE » SUSTAINABILITY REPORT 2015 2015
OUR COMPANY
Taxes and royalties USD $ 259.66 million
We are a business in the extractive sector, with open-cut mines at our Calenturitas and La Jagua mines in the department of Cesar, and an export port facility, Puerto Nuevo, in the department of Magdalena. We are also shareholders in Fenoco S.A., which owns the concession for the railway line between our mines and Puerto Nuevo. Local procurement USD $ 443.99 With over thirteen years of experience and a 22% market share, we are the third biggest thermal million coal producer in the country. Our activities focus on the extraction, production, transportation and export of thermal and metallurgical coal to European, US and Asian markets.
Our policies and guidelines have been established by our parent company Glencore Plc, whose processes are in line with Colombian legislative framework and international guidelines and standards on good practice, production and mining operation. Glencore’s input has helped us to improve our corporate practices; we have become better neighbours, more protective of the Environmental environment, optimise our resource use better, and continue to contribute to the development of our investment host regions, and to sustainable development in general. USD $ 25.92 million
Community development USD $ 1,046 million
Employees and contractors
Calenturitas 5,682 output 11,015 La Jagua million tonnes output 6,597 million tonnes 19 » PAGE » SUSTAINABILITY REPORT 2015
03 OUR APPROACH TO SUSTAINABILITY
We believe that our sustainability activities can be a mechanism for contributing to the integrated development of our host regions. Our aim is to create shared value by maximising the benefits and minimising the negative impacts of our operations. SUSTAINABILITY REPORT » PAGE » 20 21 » PAGE » SUSTAINABILITY REPORT 2015 2015
The Swiss government’s Commitment to Ethics Operating sustainably and initiative responsibly involves many The Organisation for factors; we have taken leading Economic Co-Operation Our mission and vision statements outline our intention to be a socially, economically and environmentally global initiatives and standards and Development inclusive company, focused on sustainable development for our stakeholders and the country. into account while developing our The Global (OECD) principles of sustainability policies: Reporting corporate governance Initiative (GRI) Our mission Our vision The International Council on Mining To work together across the company to To be recognised as fostering sustainable and Metals (ICMM) identify, and eliminate or mitigate, societal and development within our host communities environmental risks and impacts. To promote and supporting local institutions and the sustainable development of our host society. To help improve regional scores on communities, strengthening our social licence to relevant development indexes, and support operate and grow. the development of our most vulnerable local communities. The United The Voluntary Principles on Nations Global Security and Human Rights Compact ISO 26000: (Voluntary Principles) (UNGC) Guidance on social responsibility
Values
Safety OUR APPROACH Entrepreneurialism Our values reflect our purpose, our priorities and the fundamental beliefs that guide our work. Simplicity They define what it means to work within the Prodeco Group, regardless of location or role. Prodeco’s rapid growth has Responsibility required us to develop a Transparency strategic direction that will allow us to operate profitably as Our code of conduct defines the essential requirements of our values and sets Code of conduct well as sustainably. Glencore out the standards we require our people to meet and fully understand when Corporate Practice (GCP) is the carrying out their roles. Corporate policies and Glencore Group’s sustainability standards management system; we have Health and safety taken the framework and adapted Environmental management it to suit our specific requirements, Communities We have a number of management policies that guide our procedures creating Prodeco Group Corporate Human rights and are integrated into our corporate decision-making processes. Practice (PGCP). Anti-corruption Information security Other policies
PGCP is supported at the operational level by regulations, standards, protocols and procedures Operational policies that are specific to local risks. and standards
Risk management, quality assurance, We monitor our performance using a performance evaluation, continuous improvement series of indicators and quality assurance processes, applied both to the company as a whole and to each individual asset. SUSTAINABILITY REPORT » PAGE » 22 23 » PAGE » SUSTAINABILITY REPORT 2015 2015
PGCP unites our values (safety, entrepreneurism, simplicity, responsibility, transparency), Asuntos Materiales our code of conduct, and our policies and regulations into an integrated system that allows us to meet the sustainability commitments we have made to our stakeholders.
MATERIALITY
We value our local region and care about our stakeholders’ needs and concerns. This commitment led us to update the materiality assessment that we carried out in 2014 following GRI G4 guidelines. Robust corporate governance Our new assessment started with an analysis of a range of publications: Business competitiveness
Internal documents International standards Glencore 2015 We reviewed the material that We reviewed many leading sustainability report was deemed material in our 2014 standars, including the Global assessment Compact Principles (UNGPs), We reviewed the materiality the GRI guidelines, the OECD assessment undertaken by the Robust supplier principles and ISO 26000 Glencore Group Engagement with and contractor government management
Career Our materiality matrix uses the 35 material topics identified in our 2014 assessment as development descriptors, detailing the specifics of each 2015 topic. This year we have concluded that Engagement with for our people these descriptors will evolve in line with changes in Prodeco’s business objectives, the and development market and other external factors. of our host This matrix was reviewed and approved by the Prodeco sustainability team and then by communities the management of each asset. Environmental management and performance Respect for human rights Safe operations SUSTAINABILITY REPORT » PAGE » 24 25 » PAGE » SUSTAINABILITY REPORT 2015 2015
Materiality 2015 Materiality 2015 Internal Internal Topic Descriptor Chapter External stakeholders Topic Descriptor Chapter External stakeholders stakeholders stakeholders Robust corporate Environmental Air quality management governance Ethics, values and code of Government and regulatory management and Water management: Water conduct entities, suppliers performance quality management and Our corporate Shareholders efficient water use governance Workers Land rehabilitation / Compliance with standards, Government and regulatory Governmental and regulatory Closure plans regional and national entities, local communities, entities, the media, suppliers Our environmental Shareholders legislation Wildlife management non-governmental commitment Workers organizations, media, Environmental offsets suppliers Engagement with Environmental education government Engagement with local, Governmental and and culture regional and national regulatory entities governmental entities Energy use and GHG emissions Caring for our Shareholders Waste management communities Engagement with Governmental and regulatory and development Local communities, non- Public-private partnerships entities, clients, non- Societal management and Caring for our of host governmental organisations, governmental organisations investment communities communities the media, suppliers
Development and Well-being Unions well-being of our Governmental and regulatory people Employment generation Local communities entities, local communities, Our people Workers Engagement with Our sustainability Shareholders unions, non-governmental stakeholders approach Workers organisations, the media, Attracting and retaining suppliers, clients, trading human talent Unions partners
Safe operations Health and safety of our workers Local communities, non- Caring for our Resettlements governmental organisations, communities Accident and illness the media, suppliers Safety at our Suppliers prevention, and promotion of Workers assets Unions healthy lifestyles Robust supplier Strengthening and Governmental and regulatory and contractor development of local entities, suppliers, local management suppliers communities Compliance with health and safety standards Our socio-economic contribution to society; hiring Caring for our Shareholders and payment policies communities Respect for Governmental and regulatory Due diligence Inclusion and Our commitment human rights entities, suppliers gender equality to human rights Policy management and Governmental and regulatory compliance control entities, local communities, Shareholders unions, non-governmental Workers organisations, the media, Business Production, quality and sales Clients, trading partners suppliers, clients, competitiveness Freedom of association Our people trading partners Our economic Shareholders Costs, efficiency and performance Workers Clients, suppliers, financial profitability institutions, trading partners SUSTAINABILITY REPORT » PAGE » 26 27 » PAGE » SUSTAINABILITY REPORT 2015 2015
OUR STAKEHOLDERS Identifying stakeholders
We believe that constructive engagement with our stakeholders is essential to the success of our business. We We begin by identifying our stakeholders and classifying them according to impact or influence. We determine work on the principles of transparency, trust and two-way dialogue. which we should prioritise and create action plans for engagement. Stakeholders may include:
We hold regular formal meetings with our stakeholders. In the case of our host communities, we have - Our people developed a formal process of consultation and assessment to identify any impact from our activities. The - Local communities Environmental Impact assessment methodology includes a formal process for communicating Prodeco´s - Trading partners potential impacts and keeps records of each meeting. Prodeco maintains also a periodic schedule of regular - Governmental and regulatory entities meetings with stakeholders which serve as dialog spaces with the community. - Clients - Suppliers - Shareholders - Unions - Financial institutions - Non-governmental organisations - The media (local and national)
Develop and implement Once we had identified and engaged with our stakeholders, particularly the communities affected by our specific community operations, we established three core areas, namely: Education, Local capacity strengthening and Income Identify the stakeholders angagement and generation to focus on in our investment strategies. and communities affected development strategy for by our activities and any each community affected We identified the relevance and impact level of each of our current community development programmes risks they may face (gather community input) through project evaluations and interviews held in December 2014 with 482 community members. We then used this information to develop further assessment strategies to allow more effective community engagement and investment.
1 For more information see Caring for our communities. 2
Develop programmes to 3 support those communities in reaching self-sufficiency Consultation and assessment process
Allocate sufficient 4 resources to manage the stakeholder engagement and involvement identified for our host areas 6 5
Periodically review our investment in our Implement communication development strategies mechanisms to hold and implement any stakeholder consultation, corrective antions identifed where they may voice concerns SUSTAINABILITY REPORT » PAGE » 28 29 » PAGE » SUSTAINABILITY REPORT 2015 2015
Communicating with our stakeholders
Expectations Strategy
Local Trading Financial Our people communities partners Shareholders Unions institutions
Opportunities for growth, Employment opportunities, projects Leading operational standards. Good returns on investment. High Competitive remuneration Financial stability and the ability development, support for their and community investment. Mitigation standards of corporate governance agreements. Consideration of workers’ to make payments. wellbeing and that of their families. of any impact from our operations. and transparency rights and interests, as well as health and safety issues.
Printed bulletins, regular face-to- Consultation with leaders and Periodic meetings (board and face meetings, annual performance representatives around our community committee) and printed materials. Reports, meetings and Periodic meetings and written Meetings and regular financial and assessments, noticeboards, radio investments. Community relations teleconferences. communications with union leaders by sustainability documentation. programmes. offices. Printed bulletins and radio asset managers. programmes.
Expectations Strategy
Governmental and Non-governmental regulatory entities Clients Suppliers organisations Media
Compliance with regulations. Robust High quality products, supply security, Supply agreements, payment Consideration of labour, environmental Access to information with any corporate governance and ethics and ethical, sustainable conditions and creditworthiness and societal issues, as well as robust impact on the country’s economic, governing activity throughout our production standards. corporate governance. Action in the political, societal and environmental product lifecycle, as well as our interests of our host communities. development. payments to governments and community investment.
Periodic meetings with representatives Contact with marketing sales agents, Procurement meetings, our standards Meetings, telephone conversations, Press releases, management reports, of the President, government ministers our annual sustainability report, visits and policies, and financial information printed information, our annual educational spaces and visits to and local leaders. Periodic reports on to our facilities and product information documentation. sustainability report and visits to our our assets. financial and sustainability matters. documentation. assets. Strategic relations, dialogue building. 31 » PAGE » SUSTAINABILITY REPORT 2015
04
CORPORATE GOVERNANCE
Our focus on responsibility and sustainability is embodied by the three levels of our Prodeco Group Corporate Practice (PGCP): our values, Code of Conduct and corporate policies. Policies include our health, safety, environment and communities (HSEC) policies, as well as our human rights and anti-corruption policies.
For more information on PGCP see Our approach to sustainability. SUSTAINABILITY REPORT » PAGE » 32 33 » PAGE » SUSTAINABILITY REPORT 2015 2015
1 OUR VALUES 1 2
Material aspect: Material aspect: Good corporate 2 Good corporate governance Safety Entrepreneurialism CODE OF governance Indicator: G4-56 CONDUCT Own indicator: Number of people trained in the new Code of Conduct
When we migrated our systems from Glencore’s The focus was on how to report concerns. We Our first priority in the workplace is to Our approach fosters the highest GCP (Glencore Corporate Practice) to our PGCP, also encouraged our people to use established protect the health and well-being of level of professionalism, personal we ran a programme to inform our people of the channels to report and raise such concerns; all of our people. We take a proactive ownership and entrepreneurial new policies and to reinforce their use. Our aim was they may speak directly with their immediate approach to health and safety; our spirit in all our people while never to ensure that our principles are reflected in our supervisor or department manager, or with the goal is continuous improvement compromising on their safety and daily activities and decisions, as well as at the heart Compliance Officer. in the prevention of occupational well-being. This is important to our of our corporate culture. disease and injuries. success and the superior returns we There is further information on our website about aim to achieve for all our stakeholders. During the PGCP inductions we presented the new our new Code of Conduct as a downloadable Code of Conduct and anti-corruption policy, along pdf on our website: www.grupoprodeco.com.co/ with examples of different situations that would be files/4714/5226/5119/Codigo_de_conducta.pdf. considered conflicts of interest. Simplicity
Code of Conduct
Quality and Product Safety We aim to achieve our key deliverables
efficiently as a path to industry- Safety & Health Human Rights leading returns, while maintaining a clear focus on excellence, quality, sustainability and continuous Compliance improvement in everything we do.
Our People Taxes Responsibility Transparency
Communities Environment
Protecting and Maintaining Assets Communications
We recognise that our activities can We value open relationships and 3 have an impact on our society and communication based on integrity, 3 the environment. We care profoundly co-operation, transparency and OUR MANAGEMENT STRUCTURE about our performance in relation to mutual benefit, with our people, Our sustainability management framework, Prodeco Group Corporate Practice (PGCP), comes from our parent Material aspect: environmental protection, human rights our customers, our suppliers, company Glencore and its coal department; our senior management is responsible for ensuring our compliance. Good corporate and health and safety. governments and society in general. governance Each company within the Prodeco Group has its own Board of Directors and management teams, which report Indicator: G4-34; to the Prodeco Group Corporate CEO. Prodeco also has a board committee for corporate practice, to develop, G4-37; G4-38 review, evaluate and ensure compliance with PGCP. SUSTAINABILITY REPORT » PAGE » 34 35 » PAGE » SUSTAINABILITY REPORT 2015 2015
The corporate practice COMPLIANCE 4 4 committee Material aspect: This committee is responsible for developing and reviewing our policies and principles to We are committed to working in line with our ethical our policies. Compliance with PGCP is also one of Good corporate ensure that they comply with our Values and Code of Conduct, as well as assessing their principles. We expect everyone working for Prodeco the factors assessed during our employees’ annual governance implementation procedures. The committee members are: to act in accordance with these principles. performance evaluations. Indicator: EN29; We will not knowingly assist any third party in We inform our employees, contractors and other SO8 Our President Chief Financial Chief Operating VP Legal Compliance breaching the law, or participate in any criminal, stakeholders about PGCP and its requirements (CEO) Officer (CFO) Officer (COO) Officer fraudulent or corrupt practice. through communications and training programmes. We hold internal and external Their principal responsibilities include, but are not limited to: We seek to prevent such misconduct through training audits to assure quality control, including visits programmes and strong leadership, underpinned by to assets, regular reporting, action plans and internal policies, procedures and controls. reports on the implementation of improvements previously identified. Developing and regularly Evaluating and establishing Receiving concerns or reviewing our policies and the procedures, reports, complaints relating to As we believe that maintaining a business culture principles on business agreements, confirmations and compliance with our policies, requires leadership from the top, our President is No Prodeco Group companies were sanctioned or ethics and other relevant forms necessary to implement and ensuring that they are responsible for approval of and compliance with fined by the environmental authorities or by mining compliance issues our policies and principles resolved PGCP; he is made aware of any serious breaches of authorities in 2015.
TRAINING Organisational structure In 2015, 99% of our people underwent training Conduct. Together these constitute the core on PGCP. This includes specific training on the guidance on how to work responsibly within the Our senior management structure includes our Board of Directors along with the policies that focus on critical issues such as Prodeco Group. managers for different business functions, i.e. the CEO, our COO, CFO and VP legal bribery, conflicts of interest, exchanges of gifts, affairs, the managers in charge of health and safety, human resources, sustainable responsibility and transparency, and money We have a specific commitment to maintaining a development and industrial protection, and the Head of Communications. laundering prevention. culture of ethical behaviour and integrity, rather than simply performing the minimum required by 97% of our workers at industrial sites received President* local laws and regulations. printed copies of Our Values and our Code of
Fines Chief Operating Chief Financial VP Legal Officer Officer * During 2015, in the course of a fiscal liability the Company is undertaking a judicial process process carried out by the General Comptroller of within the administrative courts in which, by the Nation against C.I. Prodeco S.A. and others exercising its rights, it claimed the annulment of Health & Safety Manager due to an alleged damage caused to the Nation such decision. Likewise, as per the rights granted arising from the execution of Amendment No. 8 to under the Treaty for the Promotion and Reciprocal the Mining Contract No. 044-89, a final decision in Protection of Investments signed between Colombia the administrative stage was issued by which C.I. and Switzerland in 2006, an international claim was Prodeco S.A. and the other parties involved were initiated in order to exercise the rights of the Company Human Sustainable Communications ordered to pay USD19,127,106 Such payment was and of its parent company in connection with the Resources Development Security Manager Chief Manager * Manager * made in accordance with the terms requested, measures taken by the Colombian State which affect *Members of the Sustainable Development Committee. and was made under protest with reservation of their investments in Colombia, including the decision all of C.I. Prodeco S.A.’s rights therein. Currently, by the General Comptroller of the Nation.
We consider our external stakeholders to be vital to our business: every department has its own stakeholder consultation processes. However, we require each division to consult the CEO’s office before acting on critical issues, as our CEO is the ultimate authority on stakeholder engagement.
We also paid a number of fines relating to customs sanctions (referring to article 57, law 1739) that came to USD268,563 in 2015. SUSTAINABILITY REPORT » PAGE » 36 37 » PAGE » SUSTAINABILITY REPORT 2015 2015
5 ADDRESSING 5 Our compliance programme framework CONCERNS (PAI) Material aspect: Good corporate All Prodeco assets are covered by Prodeco Group In 2015 we sought to improve our grievance telephone number. They can also use other governance Corporate Practice (PGCP) mechanisms by designing and implementing our channels, such as the community relations offices Indicator: G4-57; Addressing concerns programme (PAI). This is in our host communities, the Prodeco intranet, for our employees and contractors, as well as letterboxes close to our asset sites, and dedicated G4-58 Each year our people sign a conflict of interests statement and a members of our local communities, to report mobile numbers. statement that they have read applu and comply with corporate policies. possible breaches of Prodeco policy, as well as potential human rights abuses, corruption, fraud or We have drawn on requirements and guidelines from unacceptable behaviour. a range of international standards to structure the Contractors must be aware of our policies and any associated new programme; this includes the Guías Colombia obligations, including any relevant responsibilities, segregation The programme is designed to build on our work initiative, the International Council on Mining and of functions or tasks, and the definitions of different levels of with the Ethical Line (our previous complaints Metals (ICMM), Glencore guidance on the design authorisation and oversight. mechanism) over the last six years, and enhance of grievance mechanisms, the Swiss government’s our ability to address these issues. The aim is for Commitment to Ethics initiative, and the UNGPs. us to deal with any request, complaint or concern PAI receives reports of policy breaches, with a team that investigates and addresses concems on a case-bycase basis. raised by our stakeholders. We have also trained individuals from different departments across the company to take on As with the Ethical Line, our people and local the additional responsibility of investigating and Our SIPLAFT requirements requiere us to run a background residents can raise issues online or via a free addressing grievances raised through PAI. check on all new employees.
Our corporate policies are developed in accordance with national and international PREVENTING FRAUD, guidelines, including Colombian anti-corruption law, the UK Bribery Act 2010 , the US Foreign Corrupt Practices Act of 1977 (FCPA), the Organisation for Economic Cooperation CORRUPTION AND MONEY and Development (OECD) Good Practice Guidance and the United Nations Office on Drugs and Crime (UNODC) Anti-corruption ethics and compliance programme for business.
LAUNDERING There is further information on our website about our new Code of Conduct as a downloadable pdf on our website: www.grupoprodeco.com.co/files/4714/5226/5119/ Codigo_de_conducta.pdf We carry out continuous risk assessments to The anti-corruption policy also establishes standards evaluating strategic, financial, environmental, and guidelines for the prevention of bribery, that reputational, human rights and community risks, as apply to all activities and assets within Prodeco. The We have disseminated the Code of Conduct and the anti-corruption policy to: well as those relating to fraud and corruption. These policy is mandatory for all permanent and temporary assessments are compiled in a risk register which is employees, whether managers and executives or monitored by our senior management. contractors (where there is a relevant contractual obligation). The policy also covers commercial Our anti-corruption policy forms part of our partners to the Prodeco Group and its employees. toolkit for managing fraud and corruption risks. It encourages a culture of compliance, with zero Our businesses have also implemented a system tolerance for fraud, bribery, money laundering or to prevent money laundering and terrorist financing any form of corruption. All our people and, where (SIPLAFT), which complies with Colombian law 30 811 656 relevant, our business partners, must know and and is integrated into all our business processes. All 30 members of our senior 99% of employees= 81% of supplier management (departament 811 individuals contractors=656 comply with the laws and regulations relating to We continuously perform quality assessments managers and above) individuals bribes and other forms of corruption. on the system and update it as necessary. The assessments entail periodic verification of our 100% 99% 81% However, we seek to maintain a culture of ethical compliance with the controls that have been behaviour and compliance throughout Prodeco, implemented, as well as reviews of our risk rather than simply performing the minimum required assessments and the training processes for those by laws and regulations. managing our controls and action plans.
*We will inform the remaining 19% and supply them with our policies as we update their contracts. SUSTAINABILITY REPORT » PAGE » 38 39 » PAGE » SUSTAINABILITY REPORT 2015 2015
RISK MANAGEMENT
Risk management – including the identification, assessment, mitigation and monitoring of all our business risks – is at the heart of everything we do. It guarantees continuous improvement and proper support for all our decision-making. 3 4 5 We use Glencore’s risk management framework, a methodology developed by Glencore for Manage change using risk Integrate risk management into our Carry out periodic reviews of our use by all its operations around the world. It is based on the ISO 31000 standard. management processes business planning and decision- risk management for continuous making processes improvement Our formal risk management process requires that we:
All the risks identified and 1 2 6 7 mitigated are held in the Prodeco Apply the Glencore risk matrix(part of Keep a risk register, that includes Group risk register, which Manage risk as part of everyday Provide the necessary resources the Group risk management framework) action plans, and monitor and revise is defined and managed for activity, and clearly define who is and training to employees and their performance. Communicate each asset and approved and responsible for the contents of each contractors to perform any risk the risks and responsibilities to the related action plan management processes that affect corresponding departments monitored by that asset’s senior the whole company management. 41 » PAGE » SUSTAINABILITY REPORT 2015
05 OUR ECONOMIC PERFORMANCE SUSTAINABILITY REPORT » PAGE » 42 43 » PAGE » SUSTAINABILITY REPORT 2015 2015
OUR ECONOMIC Achievements in Despite the global slowdown in the coal sector, we maintained 2015 uninterrupted operations at all three of our assets. We also reduced PERFORMANCE operational costs by 29%.
Our approach to economic management focuses The success of this approach allows us to invest in ECONOMIC PERFORMANCE 6 6 on protecting shareholder returns through our assets, contribute to the development of local methods that include efficient operations and communities, and expand our training programmes provision of consistent quality products to our for our employees and partners. 2015 showed significantly reduced demand throughout the resources sector, which Material aspect: Effective and customers. We believe it is vital to foster high affected Prodeco. One major factor was reduced coal demand from China, as result of competitive operation levels of professionalism, personal ownership To ensure our continued growth, we are committed its economic deceleration. Own indicator: Tonnes of coal and entrepreneurial spirit in all our people without to working in line with our firm ethical principles, and produced compromising their safety or wellbeing. comply with all the regulations applicable to our sector. The global economic situation meant that Colombia’s total coal production in 2015 was 10 million tonnes less than in 2014.
In addition, our railway was restricted from operating between 11:00pm and 4:00am for most of the year. This was due to an interim constitutional order along the track.
In order to analyse the economic figures it must be noted that during 2015 there was a 37% devaluation of the Colombian peso against the U.S. dollar
Colombia’s coal production Prodeco’s coal production (million tonnes) (million tonnes)
88.7 85.5 19.47 18.6 78.5 17.6
2013 2014 2015 2013 2014 2015
Prodeco’s economic contributions (million USD)
589
443
314.7 259
2014
2015 *Million USD Tax and royalty payments* Procurement from local suppliers* SUSTAINABILITY REPORT » PAGE » 44 45 » PAGE » SUSTAINABILITY REPORT 2015 2015
7 Economic value added 7 Payments to lenders Million USD
Material aspect: Effective and competitive 2014 USD 258.24 2015 USD 39.66 In 2015 we saw our revenue fall by USD308 million compared to 2014. operation
Indicator: G4- EC1 Economic value added We made payments of USD40 million to our capital providers, 4.3% of the total economic value distributed. This was 85% less than in 2014 2015 2014 as dividend payments were made in 2014 but not in 2015. 1,399.48 1,425.66
1,091.24 960.66 Operational costs Million USD
130.58 2014 USD 746.49 USD 573.75 26.17 2015
Economic value Economic value Economic value generated distributed retained
*Million USD In 2015 operational costs associated with Calenturitas, La Jagua and Puerto Nuevo came to USD574 million, 23% lower than in 2014.
In 2015 the proportion of economic value that we retained increased; this was due to falling costs from lower fuel prices and a higher representative market exchange rate. Payments to governments Million USD
Economic value distributed 2014 USD 314.70 2015 USD 259.66
Salaries and loans to workers Million USD In 2015 our payments to governments came to USD260 million. These payments included property tax, royalties and customs sanctions. This figure represents 28.3% of the economic value distributed. 2014 USD 105.21 2015 USD 86.53
Investment in the community Million USD In 2015 our salary and loan payments came to USD87 million, 9.4% of economic value distributed. 2014 USD 995,779 2015 USD 1,046,164 The employee benefits we paid for included regular benefits (social security contributions, company vehicles and private medical insurance), as well as housing, subsidised loans, help with transport Our community investment figures increased by 5% compared to 2014, costs, training subsidies and redundancy packages. rising to USD 1,046,164.
Our largest single community investment in 2015 was for our project working to develop skills within local businesses; this benefitted 44 business associations in Cesar and Ciénaga, with 406 individual participants. 47 » PAGE » SUSTAINABILITY REPORT 2015
06 OUR COMMITMENT TO HUMAN RIGHTS
We are committed to respecting and upholding human rights throughout our business and among our stakeholders. The United Nations Guiding Principles on Business and Human Rights: Protect, Respect and Remedy framework (UNGPs) and the Voluntary Principles on Security and Human Rights (Voluntary Principles) are the main basis of our risk assessment and management procedures. We use the Voluntary Principles as our guidance for dealing with military and police forces as security providers.
We have also developed our own policy based on Glencore’s Group human rights policy. We train our employees, contractors and security providers (both public and private) on the requirements of this human rights policy.
In 2015 we redeveloped our due diligence process with support from the Fundación Ideas para la Paz (FIP), an independent Colombian think tank. We also participated in the development of Colombia’s National Plan on Business and Human Rights, led by the Presidential Advisory Office on Human Rights.
We have community relations offices for each of our assets, where stakeholder groups can report possible human rights infringements. In 2015 we received no formal complaints human rights infringements from our contractors and suppliers. SUSTAINABILITY REPORT » PAGE » 48 49 » PAGE » SUSTAINABILITY REPORT 2015 2015
Respect
We are aware of the importance of the peace process, led by the Colombian government, for the Activities that support our commitment to this pillar include: country’s development and wellbeing. We have decided to actively collaborate with a range of non -profit organisations and others who work towards building a lasting peace. Respect
Participation in a workshop to implement the Colombian National Action Plan in Business and Human Rights, attended by a range of stakeholders Participation in the Swiss government’s that included entrepreneurs, international Commitment to Ethics initiative, which community representatives and national government requires companies of Swiss origin representatives. For more information see the UN GUIDING PRINCIPLES in Colombia to commit to setting an website of Colombia’s Presidential Council on example by protecting human rights Human Rights and International Humanitarian Law: through their codes of conduct www.derechoshumanos.gov.co/Prensa/2015/ Implementation of the Voluntary Paginas/Colombia-Avanza-Plan-Nacional-Accion. Principles and a gap analysis against aspx (in Spanish) their requirements Everything we do is directed towards upholding our commitment to the UNGPs. Training our people, including senior management, in human rights
United Nations Framework Pillars Due diligence along our whole value chain Design of a community development plan that includes addressing any impact on human rights Contribution to the peace process in our host regions A comprehensive risk assessment based on human rights guidelines
The state is responsible for protecting human rights and guaranteeing that companies and citizens respect these rights. This requires taking appropriate steps to prevent human rights abuses. The state should focus on strengthening Remedy its institutions and promoting respect for human rights among businesses. Protect It should also guarantee political coherence and keep extra checks on any Activities that support our commitment to this pillar include: businesses in which it has a stake. Remedy
Completion of improvements to our new complaints mechanism, Organisations should prevent human rights abuses internally and within their areas Addressing Concerns (PAI) of influence. They should act with due diligence to identify the any human rights risks within their business and develop prevention and mitigation strategies. They We informed all our stakeholders of Respect should ensure that human rights are respected throughout their value chain. the new mechanism
Continuous ongoing communication with our stakeholders about the improvements An exchange of experiences with other mining companies as part of a pilot project led by the Colombian To make it possible for grievances to be addressed early and remediated government’s Presidential Advisory Office on Human Rights, to be incorporated into directly, organisations should establish or participate in effective operational- the National Action Plan. Remedy level grievance mechanisms for individuals and communities who may be adversely impacted. In 2016 FIP SUSTAINABILITY REPORT » PAGE » 50 51 » PAGE » SUSTAINABILITY REPORT 2015 2015
DUE DILIGENCE
Due diligence is a fundamental part of risk management, as it can help identify areas where we can align ourselves more closely with the UNGPs.
Our assets assess their own operations to identify any risk of human rights infringements. This contributes to the prevention of such infringements along our whole value chain, along with mitigation or reparation where any occur.
In 2015, FIP helped us to redevelop our diligence process by undertaking a human rights assessment of our risk management system. This will help us to continue integrating human rights guidelines into our risk analysis process. You can read more about this in the section Human rights risk assessment.
Human rights policy
We are governed by the human rights policy of our parent company, Glencore, which requires us to uphold the rights of our stakeholders, including our people and our local communities. These rights include, but are not limited to, freedom of association and collective bargaining, the right to equal treatment and work, and the prevention of child or forced labour.
IFC Performance Standards (No.s 1, 5 & 7) UN Global ICMM Compact
The bases of The Voluntary Principles on our human Colombian Voluntary rights policy and legislation Security and Human Rights Principles due diligence procedures
We use the Voluntary Principles as the guidelines that for reporting any human rights infringements they International. we give to our private security providers and when the might be aware of. Labour UN Guiding armed forces act as our public security providers. Organisation Principles Our contracts with private security providers (ILO) declaration UN Universal We hold monthly security meetings with our public commit them to respect the Voluntary Principles, Declaration of Human security providers; we use these to create a forum and to keep their human rights training up to date. Rights SUSTAINABILITY REPORT » PAGE » 52 53 » PAGE » SUSTAINABILITY REPORT 2015 2015
8
Material aspect: CONTRACTS AND Respect for human rights 8 INVESTMENT AGREEMENTS TRAINING Indicator:
G4-HR2
All our contracts with suppliers have compliance There is a specific clause on human rights In 2015, we provided our people (particularly those providing security) clauses that include our policies, including our infringements in our contractedsecurity services with training covering awareness of, and compliance with, our human Code of Conduct and human rights policy. provider. This clause requires the providers rights policies and procedures. In 20015 the training was directed compliance during any private security activities to refresh Human rights principles vs 2014 where we implemented a and when engaging with our host communities. campaign to raise awareness on the Human Rights principles.
Equirent Sodexo 2014 2015
Our significant 4,246 1,400 investment agreements Hours of training: employees and and contracts contractors CHM Austin
264,66 270 Hours of training: security providers (employees and contractors)
Interglobal
77% 100% Security providers trained (employees and In 2015 the provider completed the process of joining the International Code of Conduct contractors) Association (ICoCA), which commits it to compliance with the UNGPs.
In 2015 we entered into two agreements with the Colombian Ministry of National Defence, which have facilities at both our mining operations. 49 41 Directly employed security providers SUSTAINABILITY REPORT » PAGE » 54 55 » PAGE » SUSTAINABILITY REPORT 2015 2015
9 Methodology
Material aspect: 9 Respect for human HUMAN RIGHTS FIP’s assessment was structured into four sections: rights
Indicator: G4-HR9 RISK ASSESSMENT
Sources Risk of risk scenarios In 2015 we began an integrated risk assessment, We evaluated all our assets and identified four 1 2 with the support of FIP. It was based on previous improvement areas: work by FIP on a gap analysis comparing FIP identified sources of risk from Based on their analysis of a context analysis that took the risk sources and the specific Prodeco’s current working practices and policies different situations in each of our vulnerabilities of each asset/ with the leading practice recommended by the host regions into account. these risk location, FIP created risk UNGPs and ICMM guidelines. sources do not necessarily originate scenarios to define and interpret from our operations. the possible risks for Prodeco and our stakeholders.
Leading practice references Gap analysis
ICMM, UNGPs Review of exercises undertaken previously Review of corporate documents Interviews with workers Consequences Action taken Analysis of information collated 3 4 FIP calculated the probabilities of FIP examined our policies, particular outcomes for each the strategies and actions for risk scenarios. eliminating or mitigating the human rights risks identified Risk analysis Work plan within our operations and supply chain. Methodology design Collectively, the most feasible work plan will be developed to integrate human rights into the management system Inteviews with stakeholders and workers
Inventory of risks, identification, characterisation and prioritisation
Areas of analysis We plan to finish the analysis in 2016, by creating a risk register that includes characterisations and prioritisations for the human rights risks identified. We will use this as the basis for an action plan. FIP carried out interviews with stakeholder to establish their areas of concern. They identified four different areas of interest into which the issues raised could be categorised:
• Government and state institutions • Socio-economic issues • Security and public order • Strategic relations with key stakeholders
However, all of these areas are interconnected and must be approached holistically. SUSTAINABILITY REPORT » PAGE » 56 57 » PAGE » SUSTAINABILITY REPORT 2015 2015
Government and state institutions Security and public order
Accusations that we use private Accusations that our security A desire for Prodeco to provide An increase in child prostitution Accusations that we are security providers against the providers commit human rights basic municipal services driven by an increase in single aggravating the existing negative local population infringements that are the responsibility of male workers living in the socio-economic situation the Colombian government surrounding area (eg public services, health, education, basic sanitation) Specific issues raised Specific issues raised
8 8 33 10 20 12 11 3 7
Salud y Corrupción Debilidad Regalías Servicios Educación institucional Públicos Conflicto Crimen Desplazamiento Huelgas y armado protestas
Socio-economic issues
Accusations of discriminatory Accusations of encouraging The mining industry’s negative hiring policies local economies’ dependence impacts on local health and the Stakeholder relationships on mining companies, with little environment market diversification compared to traditional economies
Specific issues raised Government fines for our alleged Government fines and Unrest and protests organised infringements of our peoples’ complaints regarding our poor by unions and other civil society 30 11 6 25 collective rights health and safety measures organisations
4 11
Daño Daño a la Cierre de Trabajo, bienes y ambiental convivencia entre mina contratación de comunidades servicios locales
12 3 6 7 Mecanismo Sindicatos de quejas
Specific issues raised
Desempleo / Embarazo Impacto negativo en el Inversión informalidad adolecente desarrollo local social 59 » PAGE » SUSTAINABILITY REPORT 2015
07
OUR PEOPLE
We know that our outstanding people are the key to our success; they work every day to make Prodeco a world-class company.
We are committed to their continuous career development. In addition, as part of our commitment to our people and our host communities, we try to employ locally where possible, and we develop wellbeing programmes for our people and their families.
We recognise and uphold our people’s rights to a safe workplace, freedom of association, collective representation, just compensation, job security and development opportunities. SUSTAINABILITY REPORT » PAGE » 60 61 » PAGE » SUSTAINABILITY REPORT 2015 2015
EMPLOYMENT GENERATION
A significant element of our contribution to the economic development of our host regions comes from the fact that we make every effort to employ from our local communities.
We directly employed 2,515 people in 2015. Our workforce also included 3,167 contractors, with responsibility for area support activities such as mining equipment maintenance, general food and accommodation services, transportation logistics, and security services.
LOCAL EMPLOYMENT
In 2015, 49.1% of our 120 new employees were from the local area (and had lived there for at least five years), while 27.5% were from other municipalities in Cesar, Magdalena and Atlántico, and 23.3% were from the rest of the country.
Asset Residence of employee N° of employees
Puerto Nuevo and train workers
Calenturitas and La Jagua
Area where Other municipalities in Elsewhere in Puerto Nuevo we operate the same department the country employees Area where Other municipalities in Elsewhere in the Mine we operate the same department country employees 4 12 4 20 20% 60% 20% 100% 44 20 16 80 55% 25% 20% 100%
Barranquilla
Area where Other municipalities in Elsewhere in Abroad Barranquilla total we operate the same department the country 10 1 8 1 20 50% 5% 40% 5% 100% SUSTAINABILITY REPORT » PAGE » 62 63 » PAGE » SUSTAINABILITY REPORT 2015 2015
In 2015, 41 of our senior managers were local residents (which equals 30.5%, compared KEY EMPLOYMENT to 24% in 2014). We include department heads and superintendents in our senior FIGURES management figures.
EMPLOYEE NUMBERS BY Employee numbers by Distribution of roles Employees by contract GENDER AND AGE age and gender type and gender 2014 2015 Between 18-30 years Management Undefined
252 70 118 134 16 1,664 1.883 219 Men Women Men Total Women Men Total Women Workers*
Between 30-50 years Administrators Plazo fijo
1,678 178 367 536 169 588 631 43 Between 18 and Men Women 324 78 252 70 Men Women Men Total Women Total 30 years
Between 30 and Over 50 years Industrial workers Obra 1,675 164 50 years 1,678 178 322 15 1,767 1.845 78 0 1 1 Men Women Men Total Women Men Total Women 299 14 Over 50 years 322 15
2,298 256 Total 2,252 263 Employees and Retention rate 98,66% Total direct contractors 2,554 employees 2,515
Employees Employees at the 2,554 beginning of the period *Includes all direct employees 2,252 2.515 263 Men Total Women
Leavers (voluntary) Contractors 34 RETENTION RATE 3.167 2,862 305 Average number Men Total Women 2,544 of workers 2014 2015
Workers at the Voluntary Average number of beginning of retirees workers for the year the period 2,549 23 2,547 2,554 34 2,544
Retention rate
99.10% 98.66% Note: All direct employees have full-time contracts SUSTAINABILITY REPORT » PAGE » 64 65 » PAGE » SUSTAINABILITY REPORT 2015 2015
DIVERSITY AND EQUALITY MATERNITY/PATERNITY OF OPPORTUNITY LEAVE
Men Women Men Women
Management Total Administrators Total
165 Number taking leave 34 1 0 1 50 40 90 0.04% 0.0% 0.04% 1.99% 1.59% 3.58% Between 18 Between 18 and 30 years and 30 years
Number who returned to work and remained for a 80 12 92 289 119 408 3.18% 0.48% 3.66% 11.49% 4.73% 16.22% 159 further twelve months 33 Between 30 Between 30 and 50 years and 50 years 100% Return rate 100% 37 4 41 28 10 38 1.47% 0.16% 1.63% 1.11% 0.40% 1.51% Over 50 Over 50 96.3% Retention rate 97% years years
118 16 134 367 169 536 4.69% 0.63% 5.32% 14.59% 6.71% 21.31% We saw an increase in the number of women taking one case where the employee left following her return, Total Total maternity leave, from 15 in 2014 to 34 in 2015. The compared to two in 2014. 166 men took paternity leave retention rate after their return stayed the same, with in 2015, the same as 2014, with a 98.2% retention rate.
Men Women Industrial workers Total
201 30 231 7.99% Between 18 1.19% 9.18% and 30 years
1,309 47 1,356 52.05% Between 30 1.87% 53.92% and 50 years
257 1 258 10.22% Over 50 0.04% 10.26% years
1,767 78 1,845 70.25% 3.10% 73.35% Total SUSTAINABILITY REPORT » PAGE » 66 67 » PAGE » SUSTAINABILITY REPORT 2015 2015
BENEFITS PACKAGES
At Prodeco we avoid discriminatory practices, particularly as regards working conditions. We therefore offer the same benefits to all direct employees throughout the WELLBEING company, whether permanently employed or on a fixed contract.
This benefit is provided to all 2,515 Prodeco employees Managing risks to the health of our people is We offer a range of initiatives that can help our beneficiaries essential for their long-term wellbeing. Good people improve their quality of life and increase Life insurance working conditions also help to build teams and their job satisfaction at Prodeco. They target two maintain our productivity and efficiency. aspects of our peoples’ wellbeing:
We support a pre-paid medical policy for employees at all levels of the company. 2015 saw an increase in beneficiaries from the 1,877 1,712 in 2014. This was an 11.54% increase for administrative beneficiaries workers and an 8.64% increase for industrial workers.
Medical insurance
Psychological Physical We offer a company savings scheme to help improve our wellbeing wellbeing peoples’ living conditions and ensure their financial futures. This 1 2 is a voluntary initiative whereby we will match a proportion of any 773 savings employees deposit into the scheme. If beneficiaries save workers 6% of their basic salary each month we will add a further 3% we offer our people and their families motivational we offer our people sporting and social activities benefitted (based on their salary figures). talks and training sessions, covering topics that during their leisure time, which help to build Company include healthy living, assertive communication working relationships between individual workers savings plan and psychosocial support and with the company
Achievements We have been developing employee engagement strategies for our communications, training and wellbeing strategies for over three years. in 2015 These aim to build closer relations with our people and improve their working environment, as well as satisfying their different career and family needs.
These strategies were originally piloted at Calenturitas and La Jagua; in 2015 we rolled out a new engagement plan for Puerto Nuevo. This started with six assertive communication workshops for 122 railway workers and 75 at Puerto Nuevo, along with planning and family financial support for 197 industrial and administrative SUSTAINABILITY REPORT » PAGE » 68 69 » PAGE » SUSTAINABILITY REPORT 2015 2015
INTERNAL PROMOTION
We encourage our people to develop their careers. During 2015, we promoted 34 people from a 2014 2015 They may apply for higher level positions that are workforce of 2,515. Of those promoted, 23.5% were advertised within the company. industrial workers in areas such as production, maintenance and others, and 76.5% were administrative and support workers. Men Women Men Women
Average number Average number Average number Average number Category # # # # of hours of hours of hours of hours
Management 28 29.5 1 36.3 118 20.9 16 30.4
Supervisors, administrators and 446 13.4 178 17.3 367 28.3 169 19.1 34 technicians Total Operations, production 8 26 1.824 49.7 77 67.4 1,767 62.5 78 12 and maintenance Industrial Administrative
We also saw an increase in the average number training programmes to reinforce safe operational of training hours among men. This was partly practices. The majority of our industrial workers due to an increase in safety and equipment are male. 10 SKILLS DEVELOPMENT 10
Material aspect: We provide technical training and skills development to our people, to aid with their Development and personal development and to ensure we have the mix of skills required. well-being of our people
Indicator: G4-LA9
2014 2015
Number of 2,298 256 employees 2,252 263
Hours of 97,427 8,313 training 123,348 4,653
Average number 42.4 32.5 of hours 54.7 17.6
In 2015, the average number of training hours per worker was 50.8, which represents an increase of 9.4 compared to 2014. This increase corresponds to an increase in campaigns requiring training, particularly the Yo Trabajo Seguro (I work safely) programme, the Yo Trabajo Seguro is targeted to operations workers where male participation is higher. SUSTAINABILITY REPORT » PAGE » 70 71 » PAGE » SUSTAINABILITY REPORT 2015 2015
In the e-learning platform’s first year, we reached nearly 98% coverage Achievements among our administrative workers. They received training on corporate In 2016 we intend to extend use of the e-learning platform to other training in 2015 policies. This programme was divided into three courses, on our Code of activities. We will also launch a new SAP virtual space, called “Portals”, to Conduct, our anti-corruption policy and conflicts of interest. improve workers’ access to information and internal work processes.
Other training activities 2,179 2,198 Employees evaluated Employees evaluated In 2015 we held a special training programme in In addition, our multi-skills programme provided in 2014 in 2015 collaboration with SENA (the Colombian National general training for 24 industrial workers at Puerto 85% 87,3% Training Service), which allowed 14 train assistants Nuevo. This programme allows our people to learn and 24 train drivers to be certified. and develop skills in different teams, encouraging comprehensive training in all aspects of port activities.
E-learning platform 83.9% 100%* 87.5% 100%*
In 2015 we launched an e-learning platform for content coverage and makes it easier for workers virtual training and courses, to facilitate more to fit training activities into their schedules. The innovative, practical and comprehensive training platform is simple to use, which leads to greater 2014 2015 processes. It provides greater flexibility and broader employee engagement. *The percentage of evaluated women is based on 100% of women belonging to the company’s workforce.
In 2015 we developed a new performance management system, introducing target- 11 Skills management and 11 related incentives. We worked with our people on a transition plan with the staff, lifelong learning which we piloted by running the new and old assessments side by side, allowing for improvements. We plan to implement the new incentive system in 2016. Material aspect: We work to support our peoples’ professional training programmes to help our people Development and growth. We have created skills development and respond to the challenges of the business. well-being of our people
Indicator: G4- LA10
12 Performance management 12
Material aspect: Most of our workers have an annual performance In 2015 we evaluated 2,198 employees: 87.3% Development and review; this allows us to evaluate individual of our workforce. This is a slight increase in well-being of our performance, identify improvement opportunities comparison with 2014, in which people and improve teamwork. 85% were evaluated.
Indicator: G4- L A11 SUSTAINABILITY REPORT » PAGE » 72 73 » PAGE » SUSTAINABILITY REPORT 2015 2015
ATTRACTING AND FREEDOM OF ASSOCIATION AND RETAINING TALENT COLLECTIVE BARGAINING
We continually implement new retention strategies to ensure we At Prodeco we respect the rights of all our workers to determine the terms of their have the best possible workforce. Our ambition is to offer the participation in associations that negotiate contractual agreements. Our workers choose best possible work and salary conditions, in order to become to use a combination of union membership and collective work agreements. Colombia’s best mining sector employer. The unions active within our business are Sintracarbón, Sintraminergética y Sintraprodeco. Our compensation packages are among the best in the Colombian mining sector. We use an objective methodology to determine salaries based on ability, without discrimination of any kind.
We believe that our low turnover rate reflects our efforts in this area. 2014 2015
OUR COMPENSATION MODEL Sintracarbón Sintraminergética Sintraprodeco 210 347 28 We work to continuously improve our 150 315 26 compensation model, by comparing our salaries to average remuneration packages at the most competitive mining companies. Our model uses the HAY profile and scale methodology to rank job roles by responsibilities, knowledge, experience and skills At Prodeco we respect and promote freedom of association and collective bargaining by We carried out a market salary survey in 2015 means of open dialogue. We maintain two-way communications and provide workers with to facilitate our decisions on promotions, excellent working conditions. The benefits we provide include, but are not limited to, pre- transfers, starting salaries and pay-scales paid medical care for workers and their families, bonuses, educational support for their throughout the year. We also reviewed our children, housing loans and emergency loans. business-wide organisational chart focusing on greater internal salary equity. In 2015 one of our assets signed our first seven-year collective agreement with favourable conditions for workers and their families. This was negotiated with the United Mining Consortium (Consorcio Minero Unido or CMU).
Our target for 2016 is to form similar long-term agreements during all seven of the collective bargaining processes we anticipate for the year. 75 » PAGE » SUSTAINABILITY REPORT 2015
08 SAFETY AT OUR ASSETS
The health and wellbeing of our people is our top priority throughout the company. Our aim is to become a leader in the safety field and to maintain healthy workplaces with no injuries or fatalities.
We work proactively across the business to ensure safety, with the goal of continuously improving our incidence rate for injuries and occupational disease.
We are committed to creating a strong safety culture, demanding visible leadership throughout all the levels of management’s hierarchical structure, a high degree of participation by employees and contractors and a focus in the identification of hazards, as well as risk analysis and risk management. SUSTAINABILITY REPORT » PAGE » 76 77 » PAGE » SUSTAINABILITY REPORT 2015 2015
13
Material aspect: 13 Safe operations KEY HEALTH AND
Indicator: G4-LA 6, G4-LA 7 SAFETY FIGURES
22 0 Disabling Injury Accidentes Severity Rate (DISR) 17,287,463 fatales Horas/ hombre trabajadas, entre propios y contratistas 0 0.10 Employees Contractors
Injury rate
5,6% New cases of Índice de occupational diseases ausentismo per 100 workers
Cases of 0.08* 0 13.9 occupational Trabajadores Contratistas disease
Índice de días Perdidos
New cases of occupational Puerto diseases Nuevo SA compared to Number of 2014 2 años workers with a sin LTI new occupational 71% disease 2 Calenturitas 1 año 14 Millones sin LTI Horas/hombre trabajadas 17,287,463 sin LTI 2015 Grupo Prodeco Number of hours worked Mina La Jagua Barranquilla 5 Operación 16,880,363 Ferroviaria millones Horas/ 2014 hombre trabajadas 3 años 18,074,776 Horas/hombre sin LTI 2013 4 años trabajadas Horas/hombre sin LTI trabajadas sin LTI * Approximately one case of occupational disease per 1000 workers.
NO ESTA LA TRADUCCIÓN SUSTAINABILITY REPORT » PAGE » 78 79 » PAGE » SUSTAINABILITY REPORT 2015 2015
The Disabling Injury Severity Rate (DISR) indicates Our rate of new cases of occupational disease CATASTROPHIC HAZARD the number of days lost through incapacitating across our workforce for 2015 was 0.08. We saw MANAGEMENT incidents (LTIs) and incidents that occurred during two new cases: five less than in 2014- restricted work (RWI) across the company. Hazard management is one of our most important safety processes. We require all We have also seen substantial improvements our people to continuously work on identifying hazards, implementing preventive and Our DSIR shows a 59% reduction in days lost in safety management thanks to continuing mitigation measures and ensuring that these measures are working effectively. since 2014: in 2015 we recorded 383 days lost in improvement programmes and excellent work comparison with 934 in 2014. This equates to a 60% from our people. For the third consecutive In 2015 we identified those of our activities with a high potential for catastrophic reduction in DISR since 2014 (2015: 22, 2014: 55). year we have seen a considerable reduction hazards, which include: in both our Lost Time Injury Frequency Rate We have a range of epidemiological monitoring (LTIFR), which measures incidents leading to a programmes, with regular musculoskeletal medical worker’s inability to work the next day, and Total Collisions between light-or assessments, postural health examinations for Recordable Injury Frequency Rate (TRIFR). Our medium- weight equipment biomechanical risks, and other checks to prevent rates are among the lowest within the coal mining on public roads occupational health issues. industry in this region. Overturning or collision equipment in operational areas Aircraft accidents
TOTAL TRIFR
Contractort 1.43 2015 0.27 Prodeco 0.93 In 2015 we identified 2.61 those of our activities Global 2014 2.21 with a high potential for 2.43 catastrophic hazards, which include 3.79 Individuals being 2013 3.34 Collision or struck by trains 3.6 derailing of trains 0 1 2 3 4
TOTAL LTRIFR
0.1 Ships being 2015 Land slide/ damaged sock fall 0.06 against the 0.54 dockside 2014 0.52 0.53
0.29 We developed measures to monitor and control these high-risk activities. 2013 0.39 0.33 0 0,1 0,2 0,3 0,4 0,5 0,6 1 2 3 Risk registers Performance atandars Review and approval by In 2015 our TRIFR was 0.93 and our LTIFR was 0.06, which is equivalent to one incident every 17 for critical controls general managers and million hours worked. Chief Operating Officer SUSTAINABILITY REPORT » PAGE » 80 81 » PAGE » SUSTAINABILITY REPORT 2015 2015
OCCUPATIONAL SAFETY HEALTH
In 2015 we developed a range of occupational We have also developed an industrial hygiene During 2015 we continued to develop and consolidate our occupational health health risk assessment tools covering issues standard, including a tool to standardise hygiene programme, which is based on the five pillars of a safe and healthy workplace: such as noise, hand-arm-whole body vibration, services throughout the company, drafted in monitoring for silicate dust and metallic particulates, accordance with national legislation and our and lighting. We used a statistical sampling method own work safety guidelines. The standard based on the US National Institute for Occupational establishes our requirements for industrial hygiene Safety and Health (NIOSH) occupation exposure management, recording statistics for monitoring sampling strategy, ensuring a 90% confidence level and decision-making, and providing programmes Special health cases management in the data gathered. to prevent occupational disease.
Fatigue risk management
Healthy lifestyles
Epidemiological monitoring
Hygiene risk control
All our people work together every day to maintain a safe healthy work We plan, organise and apply epidemiological health surveillance environment, free from deaths, injury and disease, for all our people, throughout the company to protect and improve the health and wellbeing suppliers and visitors. of our people. SUSTAINABILITY REPORT » PAGE » 82 83 » PAGE » SUSTAINABILITY REPORT 2015 2015
Special health cases management progamme OUR POLICIES
Special health cases are those that requiere special management, e.g. medical restrictions or disabilities lasting longer than 100 days. We reduced at the end of 2015 than at the beginning of the year.
HEALTH AND SAFETY POLICY
Fatigue risk management progamme The safety of our people is our highest priority. We believe that it is possible to not only avoid fatalities, diseases and occupational injuries but that it is everyone’s responsibility to maintain a safe and healthy work place. We trained 1,548 workers in sleep health, edicating them about the risk of fatigue and reinforcing healthy sleeping habits. We carried out 1,548 assessments to identify those susceptible to fatigue. We will use this data to You can find more details of our health and safety policy on our website, at www. implements controls to improve our people´s health and reduce the incidence of fatigue-related accidents. We grupoprodeco.com.co/politicaseguridad/ also carried out 1,655 random fatigue test to monitor the risk of fatigue among our equipment operators.
ALCOHOL AND DRUGS POLICY healthy lifestyle programme
2,568 workers participated in nutritional checkups and healthy lifestyle talks. We carried out 2,141 vaccinations Prodeco is committed to maintaining a safe healthy work environment for all our workers against flu and yellow fever. 1,347 workers benefited from a parasite elimination programme. and contractors.
We carried out follow-up and specific checkups on a group of 190 workers with diagnoses of high blood Alcohol and drug consumption can alter physical and mental capabilities and affect pressure and diabetes mellitus. safety, efficiency and productivity. By the end of 2015, we had achieved a 6% reduction in lost days due to illnesses and accidents, compared to 2014.
Epidemiological monitoring of respiratory, hearing visual, psychosocial and musculo-skeletal risk We operate a ZERO tolerance alcohol and drugs policy.
We achieved a 71% reduction in the number of new cases of occupational disease compared with 2014.
We performed 2,095 occupational health assessments. We performed 2,129 musculoskeletal assessments in which workers were taught about postural health, musculoskeletal injury prevention, muscle strengthening, back pain prevention, ergonomics for heavy machinery operators, load handling for maintenance staff and activity breaks.
Our objective is to maintain a healthy and safe culture in which all Hygiene risk control in all operations people actively endorse Prodeco’s health and safety commitments and objectives. We carried out industrial hygiene measurements at all our assets to gather real-time values for to noise, vibration, dust and lighting. Our assets then developed action plans to control the hygiene risks identified. SUSTAINABILITY REPORT » PAGE » 84 85 » PAGE » SUSTAINABILITY REPORT 2015 2015
14
Material aspect: 14 Safe operations JOINT COMMITTEE ON HEALTH YO TRABAJO SEGURO Indicator: G4- AND SAFETY AT WORK (COPASST) (I WORK SAFELY) LA5
Current Colombian legislation requires members from management and four from the We continued to make progress on our Yo to machinery and equipment, and a significant companies with more than 1,000 workers to main workforce. Our COPASST comprises 28 Trabajo Seguro programme during 2015. The amount of skills training for our employees and form a Joint Committee on Health and Safety representatives from management and 28 other programme’s main objective is to develop and contractors. Over the last two years, Prodeco at Work (COPASST), comprising at least four representatives. maintain safe working environments across has invested US$3.45M in the implementation of the business. This has included improvements the programme.
The list of minimum obligatory requirements. Number of men Identifies all fatal hazards and the relevant controls Designed to avoid fatalities, it was developed after 48 tem ys 12 Glencore carried out a study s fat nt a e l h into activities with the highest Number of women a m z e a incidence of severe incidents g r 8 a d n and fatalities, across both a p r m o the Glencore Group and the t d o r c mining industry in general. a Iniciative o
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a
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l Yo trabajo
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a F seguro Management Employees Includes the fatal hazard 28 28 protocols, Glencore I m m requirements and other pr te ov ys industry best practice. ed ty s health and safe
Percentage of workers Workforce/COPASST Workforce/COPASST represented women men 100% 14% 86%
*COPASST representatives are elected every two years
We promote workplace health and safety across all levels of the company. SUSTAINABILITY REPORT » PAGE » 86 87 » PAGE » SUSTAINABILITY REPORT 2015 2015
IN 2015 WE IMPLEMENTED SAFETY Risk STANDARDS RELATED TO: management(using TAKE5 and job REGULATION safety analysis (JSA)) COMPLIANCE Driving sagely Energy isolation
In 2015 we implemented safety standards related to We have a compliance risk matrix for each of our assets and our offices in Barranquilla, to ensure that we are complying with all health and safety legislation.
Alcohol and Confined We carry out an internal legal audit on safety and occupational health for all our Drogas spaces assets every year, using an independent risk prevention professional. From this we created an action plan to address any gaps identified during the audit. Working at height WE TRAINED 16,897 EMPLOYEES AND CONTRACTORS IN THESE STANDARDS IN 2015.
We ensure that all our assets comply with health and safety regulations and laws.
OCCUPATIONAL HEALTH UNITS
In 2015 the departmental health secretariats of We undertook this certification to guarantee that the Cesar and Magdalena authorised the occupational care that we provide complies with the Colombian health units within our assets to provide health system’s standards. It has also facilitated the general medicine, occupational medicine and intervention and rehabilitation process for our people. physiotherapy services. The occupational health units offer different services in different locations:
Calenturitas and La Jagua Puerto Nuevo
• General medicine • Nursing unit
• Occupational medicine • General medicine
• Physiotherapy • Occupational medicine
• Basic medical transport services
• Pharmacy service SUSTAINABILITY REPORT » PAGE » 88 89 » PAGE » SUSTAINABILITY REPORT 2015 2015
ROAD SAFETY AWARDS STRATEGIC PLANS
All Prodeco assets presented road safety strategic have helped us to minimise risk, occupational plans to the Colombian Transport Ministry in 2015, Illnesses and minimise environmental damage as required by the government. caused by driving in our vehicles. They include tools for measuring driver competence, which These plans represent our compliance with both will ensure that our drivers comply with national Colombian and international law, and improve and international regulations and standards on our management of fleet vehicle operations. They road safety.
We received the Cruz Esmeralda Medal of In 2015 SURA, our ARL (occupational risk Merit for Excellence from the Colombian safety administration company) recognised our council for the second year in 2015, recognising risk management programme and health excellent results from all our assets. and safety management during 2013-2014.
This is the highest distinction that the safety council awards to Colombian companies for their health and safety standards at work. It is awarded to companies who stand out in their work to maintain high safety standards, placing great importance on continuous efforts to build a culture of risk prevention. 91 » PAGE » SUSTAINABILITY REPORT 2015
09 OUR ENVIRONMENTAL COMMITMENT
Our approach to environmental management is based on Glencore’s Group environmental policy. This is aligned with international environmental standards, including ISO 14001.
The Prodeco environmental policy applies to all our assets; all our people must abide by it, including contractors who operate within and outside our assets. SUSTAINABILITY REPORT » PAGE » 92 95 » PAGE » SUSTAINABILITY REPORT 2015 2015
We are aware of the potential environmental In implementing our environmental management impact of our mining and port activities. We go to plans, we must comply with all current national great efforts to implement measures to prevent, regulations relating to the use and exploitation mitigate, correct or offset these effects. We run of natural resources, as well as management our business in a responsible manner, with the and control measures established in the licences aim of protecting the environment. We involve and management plans approved by the our local communities in the development of Colombian environmental authority. The National specific activities to preserve natural features and Environmental Licensing Authority (ANLA), Water efficiency Water management Waste water treatment resources in areas affected by our operations. which is the competent environmental authority, plans in mines systems makes follow up and regulatory control visits, To ensure that our performance and actions comply which support and validate our environmental with Glencore Corporate Practice (GCP) principles, management plans (EMPs). We monitor consumption We use water management We have waste water and Prodeco’s senior management make visits to our throughout our operations plans to identify and manage liquid waste management and assets, request periodic reports and establish action to optimise processes with the routes for mine drainage dispostal systems that apply and improvement plans where necessary. awareness campaigns on from waste disposal areas treatment at the locations responsible water usea and and pit faces. This is to ensure where waste is generated. specific consumption reduction control, reduce erosion and measures throuhout our assets. eliminate suspended solids, Environmental Management Framework We also maximise our use of so that waste water quality rainwater for road irrigation and is in line with current national industrial activities. environmental standars.
onmental offse Envir ts
mental managem ron ent nvi pla E ns
ANLA (National Environmental ANM (National Licensing Authority) Mining Agency)
Colombian Regional Institute for environmental Anthropology authorities and History Mining (CAR) (ICANH)) operation n o i M t a i n c e u d c e l Ministry of the Colombian o l s a u Interior Institute for Local t r n e Development e p m l n a (INCODER) o n ir s v n E Mining plans SUSTAINABILITY REPORT » PAGE » 96 97 » PAGE » SUSTAINABILITY REPORT 2015 2015
QUALITY EFFICIENT 15 15 MANAGEMENT WATER USE
Material aspect: During 2015 we used 5,006,084 m3 of water for our operations and for human consumption. Environmental We have environmental management programmes Legal provisions within each asset’s EMP This water was mainly collected from rainfall and pit faces (88%), with a small proportion from to control the water quality within our assets and specify the measures we must use to previously authorised withdrawal sites (12%). management and preserve biodiversity in the water sources around protect water resources and their associated performance our assets. ecosystems: Indicators: G4- EN8, G4-EN9
Physical and chemical Mine drainage water control monitoring of surface water 511,213 m3 water withdrawn Ongoing monitoring of general Drainage works for proper water quality and the sediments water management of water within local water sources and on site La Jagua waste water treatment systems 1,591,480 Puerto Nuevo 32% 511,213 10% 68,699 m3 water withdrawn Surface water source management Waste water control Water 1,522,781 m3 withdrawn by 3 rain water and mine asset (m ) Evaluation of how the Construction and operation drainage water water sources will evolve of waste water treatment and change over time. systems Calenturitas 2,903,391 58%
Monitoring of the quality, changing Protection of aquatic ecosystems 3 3 nature and availability of ground water 32,054 m 2,871,337 m water withdrawn rain water and mine Monitor the quality, Re-establish and maintain drainage water dynamics and availability of the original conditions of ground water. local aquatic ecosystems to guarantee their sustainability.
Repopulation of native fish species Monitoring and recording of aquatic 107,333 m3 4,898,751 m3 water for human water for industrial Enrichment of fish populations in Identification, quantification consumption usea some bodies of water. and assessment of fish, benthic, planktonic and nektonic communities.
The water we withdrew from authorised sites did not exceed the limits approved by the We also have drinking water purification systems, waste water treatment systems, flow measurement environmental authorities for our assets; it represented 12% of our total use. The volume systems and permanent monitoring processes to check the physical and chemical quality of the water we withdrawn presents no threat to the availability of water in the areas around our assets. discharge and the hydrobiological quality of surface water sources. We calculate the water use of each asset using mathematical water balance models. SUSTAINABILITY REPORT » PAGE » 98 99 » PAGE » SUSTAINABILITY REPORT 2015 2015
16 Water reuse 16
Material aspect: During 2015 we reused 4,394,118 m3 of water. This control dust emissions, and other industrial uses such Environmental water was used in road irrigation and dampening to as cleaning vehicles, trains and carriages. management and performance
Indicators: G4- EN10
La Jagua Calenturitas Water reused m3 1,522,781.40 2,871,336.86 35%* 65%*
4,503,167 4,394,118.26
Water reused by asset m3 2015
2014 2015
WATER 17 17 DISCHARGE
We treat waste water from our operations to improve stabilisation, complying with decrees 1594, 1984 Material aspect: its quality and reduce any negative impact on the and 3930 of 2010. Environmental local surface and ground water sources approved for management and performance Continue to implement our water management plans at our assets in our use. The authorised limits are defined in the EMP Our mine drainage water is treated in sedimentation for each asset and in national legislation. ponds. We generated 10,267,660.63 m3 of waste water compliance with their EMPs Indicator: G4- in 2015, from La Jagua. This water was discharged at EN22 1 For non-industrial waste water we have effective the two points authorised by ANLA (Santa Cruz river to Challenges treatment systems that combine sedimentation and the south of the mine and the Tucuy river in the north).
for 2016 Develop plans for switching to cleaner technologies, allowing our water treatment systems to comply with new Colombian water discharge Waste water discharged m3 2 standards (Resolution 631, 2015) 2015 10,267,660.09
Develop a hydrogeological conceptual model for the region, working with 2014 10,425,521 3 other regional mining companies under the technical guidance of ANLA SUSTAINABILITY REPORT » PAGE » 100 101 » PAGE » SUSTAINABILITY REPORT 2015 2015
All our assets have emission control standards and procedures that AIR QUALITY comply with our air quality management system.
AIR QUALITY MONITORING Implement a real-time dust monitoring system We have designed an air quality management system assets. We also have monitoring and follow-up systems with alarms Changes to dust with a wide range of control measures, to minimise to ensure that the air quality around our assets is within concentration levels Implement speed limits and check on the dust emissions generated by our mining and port Colombian legal limits (Resolution 610 of 2010). compliance with Prodeco traffic manuals at our assets
Report to supervisors and/or dispatch for immediate watering of any road that needs dust emission control Potential air quality issues
Potential impacts
Existing control measures Implement random speed checks on site traffic
Changes in concentration of Develop a system for assessing wind speed and particulate matter direction to select optimal blasting times Maintaining valid exhaust emissions certificates for our vehicles at all times (with the exception of Design road watering plans for waste rock and Changes to the concentration those exempted by Colombian regulation) coal transportation routes of gases in the air Evaluate the need for additional chemical Complying with our preventive vehicle and suppressors in adverse road conditions as well equipment maintenance plans, which include as the potential re-siting of water supply stations hours of use and manufacturer’s technical specifications, to ensure proper functioning and Assess the effectiveness of road watering for early detection of leaks or wear on parts against results from the air quality network and road watering plan
Develop preventive maintenance plans for Sprinkler mechanisms at coal supply and mining site generators run on 1MW+ combustion loading/unloading points engines, to guarantee stable operation and keep emissions below limits SUSTAINABILITY REPORT » PAGE » 102 103 » PAGE » SUSTAINABILITY REPORT 2015 2015
Dust control SEVCA-ZCC reports on average dust concentrations (PM10)
All our assets have emission control standards and procedures that comply with our 67 air quality management system. We also have monitoring and follow-up procedures to 64 65 guarantee compliance with environmental standards. 53 49 We irrigate the roads, transfer points and unloading hoppers at our assets to assist 46 45 with dust control. We have also implemented a range of equipment and management 3 43 42 43 37 39 strategies: µg/m
Fleet of nine Fleet of seven Sprinkler and emission control Covered belt water tankers at water tankers at systems in coal crushing, handling conveyors at all Calenturitas La Jagua and stockpiling areas assets ZM2 Jagua ZM19 ZM21 La ZM6 ZM7 Plan ZM9 Jagua Centro Becerril Victoria Boquerón Bonito Via
2014 2015 Annual percentage
Note: This information includes all emission sources within these zones, in addition to those from Prodeco assets, as we need to understand and control Coal Covered train Coal transportation from La Jagua those additional emission sources. compaction loading and to Calenturitas in semi-trailers with and dampening unloading automatic cover in train cars stations
Dampening and emission control Replacement of Revegetation programme on the main roads for road surfaces at waste rock all assets where required disposal sites
18 Air quality management modelling, 18 monitoring and follow-up
Material aspect: Environmental management and performance We have implemented an air We have an online We have installed monitoring quality model to help with pre- meteorology and dust stations outside our assets, Indicator: G4- feasibility assessments for new monitoring system that allows in addition to existing on- EN21 mining areas. This will allow us us to respond and make site stations, to monitor the to take possible impacts on air decisions swiftly when faced main receiving areas for our quality into account. with unfavourable dispersion products. This is part of the conditions or high emission Cesar Coal Zone (SEVCA- levels around our assets. ZCC) special air quality monitoring system, which is the responsibility of the Cesar regional environmental authority (CORPOCESAR). SUSTAINABILITY REPORT » PAGE » 104 105 » PAGE » SUSTAINABILITY REPORT 2015 2015
19
Material aspect: Environmental 19 BIODIVERSITY management and performance
Indicator: G4- EN12
According to monitoring station data, the average the Jagua Vía monitoring station is strongly One of our main priorities in environmental rehabilitating and offsetting our impacts on emission levels for 2015 in the regions around affected by nearby road traffic. management is the protection, management and local flora and fauna, in line with our EMPs and ZM2 La Jagua Centro, ZM19 Becerril, ZM21 La care of biodiversity around our assets. We have international best practice (e.g. International Victoria and ZM6 Boquerón stations are below Air quality modelling carried out in the Boquerón programmes specifically for preventing, mitigating, Council on Mining and Metals (ICMM)). limits. Levels have reduced for La Jagua Centro, community suggests that mining activities La Victoria and Boquerón compared to 2014. We accounted for less than 25% of the total dust believe that this is due to our on-site emission concentration levels in 2013. Our impact control measures. forecasts for 2020 show that the contribution from mining activity will account for only 10% The Plan Bonito community has recently been of levels at the ZM6 Boquerón station. They Restoration of vegetative cover Creating fauna concentration and habitats Changes to the and conservation reserves within resettled; increased road traffic and new activity by suggest that public roads will be the greatest Loss of range of local each of our concession sites the settlers will have affected levels s at ZM7 Plan contributor to dust levels in 2020, followed by vegetative cover Monitoring and tracking of flora land fauna Bonito and ZM9 Jagua Vía stations. In particular, populated areas, and then mining activity. and habitats biodiversity Protection of wildlife species Monitoring and tracking of areas Monitoring and tracking of fauna undergoing rehabilitation diversity in non-operational areas within each concession Forest offsets site including those undergoing rehabilitation Promotion of academic biodiversity research to complement compliance with environmental authority requirements Potential impact Closure plans for each asset Associated control measures
Sign and implement a new air quality monitoring agreements for the Cesar coal mining zone and the Magdalena ports area with the regional 1 environmental authorities Challenges for 2016 Carry out testing to determine whether current controls will guarantee our compliance with air quality regulations during El Niño Biotic offsets of endemic fish 2 Changes to the species with socio-economic value range of aquatic Rescue and relocation of fish fauna species Evaluate our assets’ road irrigation plans using data from our internal and 3 external monitoring stations
Enforce a culture of environmental awareness among our industrial 4 workforce to ensure proactive reporting on air quality management issues SUSTAINABILITY REPORT » PAGE » 106 107 » PAGE » SUSTAINABILITY REPORT 2015 2015
One management plan focuses in the areas that we have preserved around our assets for fauna and flora Hydrobiological We have finalised a long-planned agreement process with regional environmental entities conservation. These are land reserves at the edges of our assets with significant potential for maintaining resources AUNAP, ANLA and CORPOCESAR to define a resettlement programme for fish in the La biodiversity. We have started by classifying them according to the richness of their current biodiversity and offset project Pacha and Mata de Palma wetlands. This mining offset measure will begin in 2016 and vegetative cover and creating action plans for their preservation. involves the introduction of Bocachico and Dorada fry to the wetlands. There will also be training sessions and workshops on protecting aquatic wildlife for local communities We also manage natural resource programmes in collaboration with other public and private organisations: We are currently developing an agreement with the Institute of Marine and Coastal Research (INVEMAR) to evaluate the need and determine the viability of developing a marine ecosystem restoration programme for the benthos communities associated with the Banco de las Ánimas in Magdalena. We are also working with INVEMAR to design a Outreach We have built ties with Atlántico University and involved it in supplying scientific support to programme for the restoration, conservation and protection of the Toribio river estuary with Atlántico an assessment of natural resources in the area mangrove ecosystem in Magdalena. University The assessment will study populations of threatened species within our mining and port concession sites
Forest offset In 2015 we continued to develop our forest offsetting programme in Serranía del Perijá. projects We analysed the programme’s initial implementation and continued work on design of a Cooperation We will work with the university to evaluate local soil resources and apply alternative new comprehensive forest offset plan (PICF) in the Calenturitas river basin, which will be agreement technological soil-enriching strategies, as well as new methods for reclamation in presented to ANLA for approval in 2016. with Antioquia rehabilitation areas. University SUSTAINABILITY REPORT » PAGE » 108 109 » PAGE » SUSTAINABILITY REPORT 2015 2015
WILDLIFE 20 Conservation reserves 20 MANAGEMENT
Material aspect: We performed a number of wildlife rescue fauna to conservation reserves on our sites, Environmental activities as preliminary preparation for where we monitor their welfare and eventual management new mining projects. We take the rescued reincorporation into new ecosystems. and performance
Indicator: G4- EN13
Main outcomes Calenturitas (762,4 ha) As our figures for wildlife relocation are directly related to the expansion of our mining activities in 2015, they cannot be directly compared with the figures for previous years. • Caimancito: 391.2 ha • Maracas-Tucuy: 348.1 ha • Flood plain: 3.3 ha • Campamento: 8.4 ha Wildlife relocated in 2015 • Loma de los perros: 11.4 ha
2,529 2,221 2,258 1,953 1,975 1,923 1,363 La Jagua 977 987 1,079 (352,88 ha) 700 480 319 • La Lucy: 153.91 ha 224 64 • Santa Cruz: 66.61 ha 2008 2009 2010 2011 2012 2013 2014 2015 • Babillas: 38.99 ha • Canime: 93.37 ha Calenturitas La Jagua
Puerto Nuevo (160 ha) • Toribio: 160 ha 12,474 animals Monitoring local land 28,041 and aquatic ecosystems fish 6,578 relocated animals We have implemented a range of strategies to monitor our impact on the ecosystems close to our relocated in Calenturitas in La Jagua assets, check their conservation status and define specific actions to care for them: (1,923 during 2015) (319 during 2015) 1. Monitoring and follow-up for river and lake ecosystems is performed by an independent laboratory accredited by the Institute of Hydrology, Meteorology and Environmental Studies (IDEAM). This covers physical, chemical, bacteriological, hydrobiological and ichthyofauna parameters; which are correlated and verified in line with Colombian environmental regulations. SUSTAINABILITY REPORT » PAGE » 110 111 » PAGE » SUSTAINABILITY REPORT 2015 2015
Calenturitas La Jagua Puerto Nuevo To secure success we have included a range of activities in the programme:
Water course: Calenturitas river Tucuy river Toribio river Caimancito creek Canime river Nirvana canal Floodplain Santa Cruz creek El Guayabo stream Marine area Frequency of sampling/sample 1 2 3 Quarterly Weekly Quarterly Communication, Repopulation Monitoring, training and workshops of fish follow-up and with the community chacks
2. Monitoring and follow-up on flora conservation areas identified as conservation reserves and natural resource protection areas.
Calenturitas La Jagua Puerto Nuevo
: There is a list of species identified in our host regions at the end of this chapter. Biosensor areas Note Caimancito creek La Lucy Toribio Flood plain Santa Cruz Maracas – Tucuy Babillas Canime Create agreements with regional universities for analysis and research Componente evaluado 1 into the biodiversity of our host regions Challenges Birds Mammals Amphibians Reptiles Insects Flora for 2016 Develop the Calenturitas river native fish repopulation project Frequency of sampling/sample 2 Annually (taking into account the bimodal climate: monitoring takes place once during the dry season and once during the rainy season)
Repopulating native fish into local wetlands
As an offset measure for the Calenturitas mining We are working with Drummond CORPOCESAR to project, and in compliance with EMP requirements, release 2,035,000 Bocachico and 240,000 Dorada we have designed a programme to resettle native fry into these wetland ecosystems: fish from the Calenturitas river to the nearby wetlands of La Pachita and Mata de Palma.
La Panchita wetlands (60 hectares), whose main Mata de Palma wetlands (405 hectares), whose main tributary is the Calenturitas river tributaries are the Paraluz and Las Garrapatas rivers SUSTAINABILITY REPORT » PAGE » 112 113 » PAGE » SUSTAINABILITY REPORT 2015 2015
FOREST CLEARING
As part of our activities in preparing for mining, We extracted 9,406 m3 of wood from this area, which we also clear some forest areas in accordance was used in construction works at our assets. with Colombian law and regulations. In 2015, we 38 expanded our mining activities across 246.09 We gathered 8,493 seed pods and young native hectares rehabilitated hectares, within which there were 128.77 hectares saplings to be reserved in plant nurseries for later in Calenturitas of woodland suitable for use. planting within rehabilitated areas. The native species include: rain tree (samanea saman), white tamarind 95 (acacia glomerosa), guanacaste (enterolobium 916 at La Jagua cyclocarpum), golden shower tree (cassiafistula) and hectares glassywood (astronium graveolens). of land rehabilitated 133 by the hectares rehabilitated company during 2015 operation 246 hectares of land disturbed in 2015 128.77 hectares of 320 woodland 3,835 cleared hectares of hectares of land disturbed land that disturbed by the has not yet been 3 9,406 m company operation rehabilitated wood extracted and used at our assets • Note The hectares of disturbed land that has not yet been rehabilitated, correspond to the difference between the Total hectares of land disturbed and the areas rehabilitated plus the active areas, including the 20155figures. 8,493 246.09 seed pods and hectares disturbed saplings gathered Closure planning
All our assets have closure plans, aligned with legal In 2016 we will develop a gap analysis of our requirements and their EMPs. These closure plans closure plans to compare them to the ICMM 21 REHABILITATION AND are in the design stage in each instance, as none of standard, including an appropriate analysis CLOSURE PLANS 21 our operations are expected to cease during the next and documentation of societal issues. Material aspect: 10 years. We update the plans every five years, in Environmental To ensure land rehabilitation and prevent erosion, we carry out progressive closure plans at all of our accordance with Colombian government requirements. management assets. The activities include the reshaping of banks, laying of soil and sowing of pasture, and reforestation and performance and tree maintenance in areas previously disturbed by our activities. This is in accordance with the EMPs approved by the competent environmental authorities. Indicator: MM1, MM10 To date, we have rehabilitated 916 hectares of land, 64% from La Jagua and 36% from Calenturitas.
Achieve with existing land rehabilitation targets
Cumulative area of land rehabilitated (hectares) 1 Challenges 2015 Carry out specialised studies to help improve our land 330 rehabilitation process Calenturitas for 2016 292,23 2014 2
Develop a gap analysis of our closure plans 586 La Jagua against ICMM requirements 491 3 Note: These figures cannot be compared year on year as the area rehabilitated depends on how much is available due to mining operations ending. SUSTAINABILITY REPORT » PAGE » 114 115 » PAGE » SUSTAINABILITY REPORT 2015 2015
ENVIRONMENTAL After five years we have achieved the following results: OFFSETS
Forest offset plan for Serranía del Perijá
In 2015 we continued to develop an ongoing forest components were working, allowing us to offset programme in Serranía del Perijá. This develop a technical and economic action plan programme was developed with the Ministry for for the maintenance, conservation and active 140 the Environment and Sustainable Development, restoration of the areas over the next 10 years. 140 hectares undergoing CORPOCESAR, the Fundación Pro Sierra Nevada 4,674 rehabilitation at 27 de Santa Marta, and other mining companies in the This project follows a model of forest hectares of land locations(52.5 in Tucuy region, as well as the inhabitants of La Victoria de offsetting that is new to Colombia, which conserved in and 87.5 in Sororia) assocation with other San Isidro in Cesar. offers more efficacy in ecosystem reclamation, mining companies functional connectivity of habitats, species 365.5 This year we performed a status analysis of the conservation and improvement of microbasin hectares of programme’s implementation in the sub basin of the water regulation. It also offers a coordinated agroforestry asystems Tucuy and Sororia rivers. We identified the actions process to improve the living conditions of rural (193.5 in tucy completed and how the societal and environmental communities in the areas affected. and 179 in 142,732 Sororia) plants and 95.2 kg of seeds sown 2,134 hectares of land 5,177 267 hectares conserved by plant species used offset in total Prodeco for offsetting
Established Trees per ha Trees to be planted Established trees growth (ha)
Settlement areas 1,050 40 42,000 42,000*
Biological 1,050 23 36,550 50,395 corridors
Environment 700 77 53,900 67,024 enrichment
Total 142,732
The next step is to obtain approval from ANLA and the Ministry of the Environment to develop a maintenance and monitoring plan for these areas (resolution 1465 of 2008).
Comprehensive Forest Offset Plan
Our new comprehensive forest offset plan (PICF) is designed to complete our outstanding environmental offset activities. It is based on the same methodology as the forest offset plan outlined above, but will be undertaken by Prodeco alone.
This plan is in the design phase and awaiting ANLA’s approval. The areas in this plan are within the Calenturitas river basin and have been agreed with CORPOCESAR.
*Initially seeds were sown and the densities were completed with the sowing of 25,513 plants in the zones. SUSTAINABILITY REPORT » PAGE » 116 117 » PAGE » SUSTAINABILITY REPORT 2015 2015
WE ESTIMATE THIS PLAN Action plans WITH OFFSET A FURTHER 6,796.33 HECTARES, IN Riparian buffer LINE WITH ANLA’S LEGAL Direct area of zones for the REQUIREMENTS Get ANLA’s approval of the PICF plan for the Update the societal baseline and detailed design of influence: mining area Maracas, Tucuy and Calenturitas river basin the maintenance and monitoring plan for conservation Calenturitas rivers Aims areas within the PCF.
Dry forest zone near the Areas that can be Matepalma, La Pachita consolidated with the Cesar To offset the benefits to the PICF: 762 ha of PICF: 352 ha of wetlands and the wetland conservation corridos community derived from local conserved forest conserved forest complez La Zapatosa of other progammes ecosystems that have been affected by operations at La Jagua Fish repopulation PICF: Serranía del project: 2 million fry Becerril and Calenturitas Perijá
Calenturitas mine El Paso
To create a comprehensive forest To bring in biodiversity research To establish and consolidate offset strategy teams to enhance regional and biological corridors that connect local administration capacity for forest ecosystems around our La Jagua mine developing dry and pre-montane assets, that meet specific criteria: La Jagua de Ibirico forest conservation strategies
Fish station project PICF: Zapatosa PICF: Pachita wetlands and Matepalma wetlands Restoration of riparian buffer zones: Conservation of forest blocks: Increase connectivity between forests recovery of the banks 30 metres to conservation of the main local and riparian forests: restoration either side of main rivers, streams areas of natural mature forest with of forest and riparian corridors, and secondary tributaries native species highly valued for using species identified in the Lagoon complex, Paraluz creek and Calenturitas Upper Tucuy river basin their biodiversity revegetation protocol Calenturitas river Matepalma wetlands river valley (Serranía de Perijá)
PICF: Comprehensive forest offset plan PCF: Forest offset plan SUSTAINABILITY REPORT » PAGE » 118 119 » PAGE » SUSTAINABILITY REPORT 2015 2015
Magdalena
Santa Marta ENVIRONMENTAL EDUCATION AND CULTURE
Conservation study of the SCHOOL ENVIRONMENTAL coral on the Banco de las PROJECTS (PRAES) Ánimas (20 km)
School environmental projects (PRAES) are region’s specific environmental problems Mangrove Forest and water approved by the Colombian Ministry for the and opportunities, and create spaces for the conservation conservation project on Environment and Sustainable Development with the educational community to help strengthen Banco de Ánimas project (5 ha) the Toribio river (560 ha) intention of adding an environmental dimension to environmental education and encourage good preschool, primary, secondary and post-16 school environmental practice. curriculums. They include a multidisciplinary focus Puerto Nuevo to integrate all aspects of the development of We believe it is vital for our neighbouring 160 ha of forest reserves environmental projects and activities. communities to clearly understand their own near Puerto Nuevo environmental impacts and issues, so that they Prodeco manages these projects to promote understand which environmental effects result from Ciénaga awareness and understanding of the our operations, and which do not.
Ciénaga Grande de Santa Marta
1 Initiate development of offset projects with INVEMAR for Puerto Nuevo Challenges for 2016 Start phase two of the forest offset plan and initiate offset projects 2 in Puerto Nuevo
Consolidate our agreement with INVEMAR to evaluate the habitat 3 restoration programme for the benthos communities in Ciénaga
Agree the design of the mangrove restoration programme for the Toribio 4 river in Magdalena with INVEMAR SUSTAINABILITY REPORT » PAGE » 120 121 » PAGE » SUSTAINABILITY REPORT 2015 2015
Main outcomes
2014 2015
Project initiation in 2011 15 17 institutions institutions participating participating
5 institutions in Ciénega Magdalena 500 teachers participating in Cesar 2 training institutions in 1,500 Santa Marta hours of teacher training
4 16 environmental institutions in CITIZEN AND COMMUNITY ENVIRONMENTAL projects EDUCATION PROJECTS (PROCEDA) La Jagua designed and de Ibiríco implemented 13 We encourage the development of citizen and manage their environmental impacts; helping them institutional education community environmental education projects to learn which originate with their actions and which projects (PEI) (PROCEDA). These contribute to mitigating or come from our operations. 2 redesigned to include solving regional environmental issues, as well as institutions in environmental elements encouraging the efficient use of natural resources. In 2015 we began to implement these projects in the Becerril 16 areas around our mining and port assets. environmental As with PRAES, our main objective is to offer our best practices developed neighbouring communities tools to identify and 4 11 institutions in solid waste El paso collection Main outcomes centres installed 1 Beneficiary communities composter and allotment installed to 1 2 3 4 5 6 7 reinforce BEP Rural district Municipality of Rural district Rural district Municipality Rural district Rural of Cordobita La Jagua de of La Victoria of Boquerón of Becerril of La Loma (El settlement of (Ciénaga, Ibirico (Cesar) de San Isidro (Cesar) (Cesar) Paso, Cesar) El Hatillo (El Magdalena) (Cesar) Paso, Cesar) Note: For more information about our activities on school environmental projects, you can watch a short video “Proyectos Ambientales Escolares” (in Spanish) on our homepage at www.grupoprodeco.com.co. SUSTAINABILITY REPORT » PAGE » 122 123 » PAGE » SUSTAINABILITY REPORT 2015 2015
La Jagua de 15 La Victoria 20 Ibirico (PC1) Number of (PC2) Number of participants participants ENERGY USE Low awareness of Low awareness of PROCEDA group environmental issues environmental issues amongst residents living in the settlement of Environmental issue around the market square Zumbador Alto, in La Victoria de San Isidro Project ENERGY EFFICIENCY Environmental education Recovery, re- programme to restore establishment and the market square protection of the upper and middle course of the We focus our energy efficiency efforts on reducing In 2015 we invested approximately USD700,000 in Zumbador river energy consumption by using efficient equipment. portable electrical substations, to extend our electrical Some of this equipment is powered by solar energy, distribution system to all the pumping stations at La which also reduces our CO2 emissions compared Jagua. This has reduced its energy demand and to diesel-powered equipment. optimised production by increasing our energy efficiency.
Boquerón 12 Becerril 15 La Loma 20 (PC3) (PC4) (PC5) Number of Number of Number of participants participants participants
Inadequate management Low awareness of Low awareness of of solid waste in the main environmental issues environmental issues street of the Boquerón in the Bajo Divino Niño in the 15 de Mayo rural district neighbourhood of the neighbourhood of La Becerril municipality Loma
A pilot programme to A comprehensive waste A comprehensive solid improve solid waste management plan to waste management plan management encourage individual to encourage individual responsibility responsibility
El Hatillo 12 Cordobita 15 (PC6) (PM1) Number of Number of participants participants
Inadequate management Inadequate management of solid waste in El of waste around the Hatillo aqueduct in Cordobita
* This project was developed in consultation A comprehensive waste A comprehensive solid with the local community. An initial management plan in the waste management plan* context study focused on the impact of settlement’s park and to encourage individual our port operations but as the analysis responsibility and civic duty progressed, the participants determined educational institution that the issues having the greatest effect on their community were more relevant; these were issues that the community was able to influence. SUSTAINABILITY REPORT » PAGE » 124 125 » PAGE » SUSTAINABILITY REPORT 2015 2015
Energy Reducing consumption energy use
In 2015 Prodeco’s total energy demand was 8,741,867GJ. This was a 5.42% reduction compared to 2014. In Calenturitas we have focused on improving the At La Jagua we are working to standardise the systems with the highest energy requirements mine’s entire electrical system in accordance Energy consumption by asset (GJ) (industrial electric pumps and substations). Here we with regulations. This not will only ensure that have installed capacitors that prevent energy loss electrical components function properly, but due to circuit overload. will also reduce our energy use and improve the 5,500,774.15 performance of the transformer, substation and Calenturitas 6,166,185.42 We have also standardised the existing fuel electric pumps. infrastructure, creating a central fuelling area that complies with the requirements of decree 283 of La Jagua 3,131,134.07 1990, as certified by Bureau Veritas. 2,955,472.05
109,958.53 Puerto Nuevo 122,140.12 2015 2014
Initiatives Calenturitas La Jagua Puerto Nuevo Calenturitas Upgrade of electric motors Installation of capacitor Puerto Nuevo 84,154.69 GJ 88,107.48 GJ 97,228.53 GJ bank to avoid losses Increasing the proportion Electricity Electricity Electricity from reactive energies Implementation of fuel of conical coal piles dispenser Reduction in conveyor 5,032,077.06 GJ 2,696,219.30 GJ 12,728.91 GJ Reductions achieved Reductions achieved belt downtime Diésel Diésel Diésel 1,080 GJ Not Measured* Improvement of reclaim and loading rates 11,104.37 GJ Reductions ** Petrol La Jagua achieved Not Measured Reduced movement of the stacking/ reclaiming 341,749.15 GJ 318,780.25 GJ Upgrade of the electric control and power system equipment in the Propane gas Propane gas stockpiling patio
Use of a capacitor bank to avoid losses from reactive energies 31,687.17 GJ 28,024.69 GJ (skid-mounted substations/pump lines) Reductions achieved Acetylene Acetylene Optimisation of new substation (automation of main substation 558,91 GJ and generation system) 1.71 GJ 2.34 GJ 1.09 GJ Solar Solar Solar Lighting system change from 1,000W to 400W floodlights
Implementation of a preventive maintenance programme, Initiatives Energy intensity using substation thermographic records, to avoid overheating
* We have not yet developed a methodology 0.54 GJ/Ton 0.5 GJ/Ton 0.006 GJ/Ton Predictive maintenance programme that checks engine to calculate energy reductions used per tonne per tonne of coal per tonne of equipment while in action of coal produced produce coal exported ** As the metering management system is Implementation of energy management system (measurement still being implemented, we have not yet completed a time period that will allow of variables and record storage comparison to previous years SUSTAINABILITY REPORT » PAGE » 126 127 » PAGE » SUSTAINABILITY REPORT 2015 2015
AUXILIARY MATERIALS
SOLID WASTE We make extensive use of auxiliary materials We report on use that is material to our operations and manage the handling and disposal of these in terms of importance to our activities and MANAGEMENT materials carefully to reduce environmental risks. quantities required
Our environmental policy includes risk subject to regular evaluations and reviews Auxiliary materials assessment and detailed reviews of actions against our EMPs, and hazardous/non- Material Operation 2014 2015 relating to waste management. The policy is hazardous solid waste management plans. Calenturitas 688,629 gallons Equipment lubricants La Jagua (oils) 661,955 gallons 709,066 gallons La Jagua (greases) 376 kg Puerto Nuevo 1,507 kg Emulsion Waste management risks identified Calenturitas 27,960.58 tonnes 61,484 tonnes La Jagua 21,756.67 tonnes Risk Tyres for equipment Calenturitas 1,346 units
La Jagua 964 units 528 units
Puerto Nuevo 11 units Production of hydrocarbon-bearing Generation of ordinary and Deterioration of surface and Equipment fuel waste generated by mobile units hazardous solid waste ground water quality as it comes into contact with non-hazardous La Jagua -- 74,648 m3 waste during the uncotrolled runoff of rainwater or when Engine coolant affected by the wind Puerto Nuevo -- 16 units
Compressor oil Undesired changes to Storage of unauthorised waste or Soil contamination due to dispostal Puerto Nuevo -- 1,430 gallons the landscape the use of unauthorised disposal at unauthorised sites or using systems unauthorised systems
HAZARDOUS AND NON- 22 22 Control measures HAZARDOUS WASTE Material aspect: Environmental In 2015 we generated 2,945.59 tonnes of hazardous Environmental Establishment (Establecimiento management waste and 1,617.89 tonnes of non-hazardous waste. Público Ambiental or EPA) and the Fondo Nacional and performance Donations of recyclable waste Proper treatment of hazardous Comprehensive management of 30% of the hazardous waste was incinerated and 70% del Aceite Usado (National Fund for Used Oil) from to strengthen community waste solid waste was recycled or reused. 7% of non-hazardous waste the Colombian Oil Association. Indicators: G4- cooperatives and foundations was recycled and 93% disposed of in landfill sites. EN23 We reduced both our generation and disposal of ORCO S.A, which has its own disposal plant in solid waste by 9% in 2015, though initiatives such Cartagena, packages, transports and disposes of as upgrading our temporary solid waste storage our hazardous waste, using appropriate treatment facility, a contractor campaign to improve waste Procedures to ensure separation Solid waste gathered and and disposal processes for each waste type. This separation, and the installation of new waste of waste during transportation to transported in accordance company is certified by the Colombian Public classification containers. disposal sites with Colombian environmental regulations SUSTAINABILITY REPORT » PAGE » 128 129 » PAGE » SUSTAINABILITY REPORT 2015 2015
Hazardous waste Non-hazardous waste
Hazardous waste (tonnes) Incinerated (tonnes) Non-mineral, non- Recycled or reused (tonnes) hazardous waste (tonnes) 2014 2015 2014 2015
3,388.10 804.36 3,005.23 1,630.51 1,617.8 9 54.70 668.4 48.82 42.61 35.32 317.55 198.79 8.72 10.41 2.73 30.44 2014 2015 2014 2015 Calenturitas La Jagua Puerto Nuevo Calenturitas La Jagua Puerto Nuevo
Non-mineral, non-hazardous waste Recycled or reused (tonnes) Hazardous waste by asset (tonnes) Landfill (tonnes) by asset (tonnes) 2014 2015 2014 2015 2014 2015 2014 2015
532.27 563.93 1,313.12 1,268.69 2,117.48 618.63 486.48 520.9 516.2 579.09 1,9 37.0 9 430.04 521.8 529.62 526.61 472.65 941.7 779.27 1,259.25 978.06
8.65 59.32 11.38 30.44 Calenturitas La Jagua Puerto Nuevo Calenturitas La Jagua Puerto Nuevo Calenturitas La Jagua Puerto Nuevo Calenturitas La Jagua Puerto Nuevo
Soil improver, for use Improves soil´s capacity to in the rehabilitation of retain nutrients and reduces land disturbed by our the risk of ground water We support the Asogemed operations contamination association project, which produces bokashi compost, and use it to compost organic waste from our canteens. The 100% use of compostable Reinforces the soil structure, compost has the following waste preserves water and ensures environmental benefits: biodiversity conservation
Increases the useful life of our landfills and reduces leachate SUSTAINABILITY REPORT » PAGE » 130 131 » PAGE » SUSTAINABILITY REPORT 2015 2015
23 Waste rock 23
Material aspect: Environmental The most significant environmental impacts associated with this type of waste are: management and performance
Indicators: G4- EN23, MM3
Deterioration of ground water Deterioration of surface water River bank erosion as a result of quality through infiltration of mine quality, as a result of uncontrolled uncontrolled mine drainage water water into underground water mine drainage water sources
192,687,280 119,747,631 tonnes tonnes Calenturitas La Jagua Excavated overburden and waste rock
ENVIRONMENTAL Type Calenturitas La Jagua Puerto Nuevo Total % INVESTMENT Air quality 4,937,394 3,366,968 197,870 8,502,232 33%
Water management 7,488,413 5,759,020 234,388 13,481,820 52%
In 2015 we invested USD25.9 million in environmental management initiatives. Land rehabilitation 297,952 618,428 3,692 920,072 4%
Biodiversity management and 250,298 28,512 170,090 448,901 2% Environmental investment by asset (2015) offsets Solid waste 260,671 114,579 10,119 385,369 1% management 4% Environmental 41,825 21,039 36,837 99,700 0% education
Calenturitas Environmental 923,119 876,175 282,688 2,081,982 8% management La Jagua 41% 55% TOTAL 14,199,672 10,784,721 935,683 25,920,076 100% Puerto Nuevo
Note: These figures are not comparable with previous years, as all Prodeco environmental investments and expenses are included for 2015, which will be the figure used in future reporting. In previous years only investments made by our environmental team were reported. 133 » PAGE » SUSTAINABILITY REPORT 2015
10 CARING FOR OUR COMMUNITIES SUSTAINABILITY REPORT » PÁG » 134 135 » PAGE » SUSTAINABILITY REPORT 2015 2015
COMMUNITY DEVELOPMENT 2015 SOCIO-ECONOMIC CONTRIBUTIONS 2015
Signed up to partner with the Rolled out an integrated solid Substantial progress in The PRAES education programme: Local Capacity Development: Cesar Peace and Development waste management, sustainable Cemprende entrepreneurship • 17 educational institutions and 7 communities • 11 workshops in the programme for improving programme, to develop projects agriculture and urban centre programme; this has took part municipal administration: 118 participants that will support victims of transformation programme in encouraged entrepreneurship violence, conflict, poverty, Victoria de San Isidro., which and generating employment • 140+ received training in crafts and trades • 13 workshops in the programme for exclusion and marginalization in has improved living conditions. opportunities. As 760 strengthening civil society: 94 community • 60 young people benefitted from the local communities and help work 80% of residents have signed participants participated in the leaders participated baccalaureate access programme towards the establishment and an agreement to pay the initial skills creation programme • More than 6,000 children and young people maintenance of peace. weekly USD0.70 fee for waste 37 users found jobs and 86 • 73 benefitted from the study grant scheme participated in the life networks programme collection. business plans were created.
Generating revenue. • Formed an ongoing partnership with Social The PRAES programme reached: • 40 associations, comprised of 403 individuals, Prosperity. benefitted from initiatives developed within the business development programme
• More than 1,200 people participated in the entrepreneurship and employability • Enhanced our value chain with six new programme partnerships: Relianz, CHM Minería, Interglobal, 17 23,480 AustinEngineers, Xylem and Sodexo. educational students • 27 suppliers have benefitted from the Adopt a institutions supplier programme
COMMUNITY ENGAGEMENT 2015 550 7 teachers communities that participated in our citizen and community environmental education projects (PROCEDA) Initiated a process to systematically identify our Enhanced community engagement team by main stakeholder groups, for systematic interaction hiring specialists in the issues that affect local that takes each group’s particular needs and communities. expectations into account
Worked with the Colombian government department “Social Prosperity” on a project to improve the quality of educational institutions, including an assessment of educational quality, with the aim to design an action plan based on the results. This plan will then be Continued to engage with local communities through Received six complaints from the community, actioned across the country. the community relations offices at each asset. which were received and dealt with appropriately. SUSTAINABILITY REPORT » PÁG » 136 137 » PAGE » SUSTAINABILITY REPORT 2015 2015
Our community engagement policy is based on and intergovernmental and non-governmental three fundamental principles: organisations, as well as other stakeholders working in community development. We believe • Determining and understanding our societal risks that this engagement is vital to our social licence UN SUSTAINABLE and opportunities, by identifying our stakeholders and to foster sustainable development in our host and their concerns and maintaining an ongoing departments of Cesar and Magdalena. There are dialogue with our local communities more details in the public-private partnerships DEVELOPMENT GOALS section following • Managing the impacts of our operations so that they do not undermine the livelihoods of local Community development people Our community development programmes are designed to help reduce poverty and support One aim of our community development activities is to maintain our social licence to operate. We • Determining how we can bring the most benefit to communities that have suffered from Colombia’s contribute to the development of our host regions, discouraging dependence on our operations by our host communities and developing a consistent history of conflict. encouraging local people to cultivate autonomy and self-sufficiency. company-wide community development strategy Our investment programmes are divided into three We work in line with the United Nations Sustainable Development Goals (SDGs), part of the UN’s2030 Public-private partnership core areas, to improve our engagement with our agenda for sustainable development. We are committed to building further networks local communities, to help us respond to the needs and partnerships with government bodies, of local residents, and to address the impact that our Each of the 17 SDGs falls under one of five focus areas: local authorities, community representatives, operations may have on the communities around us.
Our core areas for community investment Mobilise the means to Put an end to poverty strengthen a global alliance and hunger, and for development, focused ensure a healthy, on the needs of the poorest dignified and equal and most vulnerable, with the environment. Creating shared participation of all 5 Local Capacity Revenue Education development generation Partnerships People
Improving Capacity building Entrepreneurship educational quality 4 1
Encouraging Providing access individuals to think Employability to opportunities about their future Peace Planet
Encourage peaceful, 3 2 Protect the planet just and inclusive from degradation for societies, free from present and future Raising community fear and violence Prosperity generations. awareness on the need to demand efficient use of public funds
Ensure that everyone can enjoy a prosperous and fulfilling life and that economic, societal and technological Cross-cutting sustainability programmes: advances occur in harmony with nature Developing partnerships to work on community development, both within Prodeco and with the state, individuals and other stakeholders SUSTAINABILITY REPORT » PÁG » 138 139 » PAGE » SUSTAINABILITY REPORT 2015 2015
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24 Material aspect: LOCAL CAPACITY Engagement 1 People 2 Planet with and DEVELOPMENT development of 1 2 6 12 our communities Indicator: G4- SO1 NO NO CLEAN WATER RESPONSIBLE POVERTY HUNGER AND SANITATION CONSUMPTION AND PRODUCTION Our community development plan is based on the We have selected three core focus areas for principle of generating shared value; we believe that investment: education, Local Capacity Development 3 4 13 14 there is a connection between economic progress and income generation. We support these goals and societal progress in the areas where we operate. through cross-industry partnerships (working with the state, with other commercial partners, and with GOOD QUALITY CLIMATE LIFE BELOW We use the plan to evaluate our existing decisions other teams from within Prodeco), with investments HEALTH AND EDUCATION ACTION WATER and future opportunities with the aim of maximising in infrastructure development and by encouraging WELLBEING the benefits and minimising the negative impacts of our people to volunteer their time. our operations. 5 15 In 2015, our mining assets made community Our goal is to support our societal licence to operate, investments worth USD858k, while Puerto Nuevo working in together across our different assets and in invested USD187k. GENDER LIFE ON LAND partnership with the government to prevent, mitigate EQUALITY or offset our societal and environmental risks.
3 Prosperity 4 Peace 7 8 16
AFFORDABLE DECENT WORK PEACE AND CLEAN ENERGY AND ECONOMIC JUSTICE; STRONG GROWTH INSTITUTIONS 9 10
INDUSTRY, REDUCED INNOVATION AND INEQUALITIES Partnerships INFRASTRUCTURE 5 11 17
PARTNERSHIPS SUSTAINABLE FOR THE GOALS CITIES AND COMMUNITIES
We have used the UN’s five focus areas as the basis for structuring our community development strategy. All our projects contribute to the SDGs and fall under one of our three core investment areas, as described in the next section. SUSTAINABILITY REPORT » PÁG » 140 141 » PAGE » SUSTAINABILITY REPORT 2015 2015
OUR CORE Employment training programmes INVESTMENT AREAS
An A technical Training Complementary Complementary administrative farming training courses in civil course in courses in technical programme for infrastructure jewellery design food handling, EDUCATION training 13 residents of construction for the La marketing and programme rural districts for 96 residents Jagua artisanal sales, laying for 20 young of Jagua and of La Victoria, association hen breeding, We develop programmes to improve the quality of We also wish to support our local communities in people in El Becerril Becerril and La baking and public educational institutions (primary, secondary learning about sustainable land development. Being Hatillo Loma confectionery in and post-16 schooling) and provide local people able to rely on their land for their livelihoods will Ciénaga with opportunities to access higher education, allow our host communities to develop autonomy technical education and adult professional training. and self-sufficiency, breaking their economic This will improve their possibilities for employment dependency on local mining companies. or personal development. We invested USD476k in education in 2015.
Environmental education programme 17 16 16 11 1 educational school leading solid waste composter institutions environmental environmental collection and allotment in Cesar and projects (PRAE) practice centres installed created to Magdalena designed and documents to reinforce good reinforce good participated, implemented developed environmental environmental including 23,480 practice practice students and 550 teaching staff
Baccalaureate access programme Study grant programme for public schools have received support for 60 their higher education, young people working in collaboration participated with other study grants. 90% f whom went to university. We are 73 currently determining who will run beneficiaries the 2016 programme. SUSTAINABILITY REPORT » PÁG » 142 143 » PAGE » SUSTAINABILITY REPORT 2015 2015
LOCAL CAPACITY 4 Contribution to SDGs DEVELOPMENT
QUALITY In 2015 we implemented two new educational programmes to consolidate the EDUCATION achievements we have already made in education. The first programme has been At Prodeco we believe that economic development is only possible under efficient public governance, with developed to improve the quality of local education; it has had a significant impact, an engaged population prepared to take responsibility for their roles and the possibility for engagement which has led us to make it our flagship education investment programme. The between the local community, authorities, businesses and other potential participants. second programme facilitated adult access to education to reduce illiteracy rates. We also believe that strengthen our neighbouring communities will help our business to become more We hope that these programmes will give our local community residents a successful. greater chance for employment at Prodeco, help them to participate in our other programmes, and support them in becoming self-sufficient. Our Local capacity development programme works to improve local administration and community associations to build capacity, promote values and to ensure that the resources generated by mining are used appropriately.
In 2015, we invested USD200k in local capacity development programmes. 1 Educational improvement programme
we have partnered with the Colombian Ministry of Education, the government Improving municipal administration department “Social Prosperity” (Departamento de Prosperidad Social) and La Caja de Compensación Del Cesar (Comfacesar) to develop a programme for 2 round tables on improving education in Cesar, in the municipalities of El Paso, Becerril and La 9 workshops in La royalty payments Jagua de Ibirico. Jagua, Becerril and El Paso 37 From initial technical exercises, we created a meeting space to determine a civil servants shared version for education in the region. One conclusion was the need to 81 councillors and and community public civil servants create a strategy for the continuous improvement of the region’s public school representatives from participated ethnic minorities system. This programme will start in July 2016. participated
Strengthening of civil society
2 Adult educational access programme A round table on royalties 12 workshops in La and citizens’ engagement in Magdalena this programme was piloted in La Victoria de San Isidro in Cesar. For many reasons Jagua, Becerril and El Paso the local population has previously been excluded from the education system: this residents participated community leaders programme helps them to complete their primary and secondary education and gain 79 15 participated skills to work more productively. We help them to make individual and collective life plans, and aim to eliminate illiteracy in the region. 145 » PAGE » SUSTAINABILITY REPORT 2015
GENERATING INCOME Life networks
Festival de la Vida in Ciénaga Support for 2 sports clubs in We aim to help local residents create and improve their entrepreneurial skills, leading to less 530 Cordobita and Abajo in Magdalena their own sustainable businesses, to generate dependence on local mining companies. boys, girls and adolescents participated competition in the local market and improve local Further support of 4 clubs at La employment options. This will help local people In 2015, we invested USD370k to income A health intervention day for our to improve their own living conditions and use generation initiatives. mining assets in La Jagua de Ibirico, in Jagua and Calenturitas 280 association with Social Prosperity people participated
42 health professionals and 11 Further support of clubs in Becerril, La volunteer partners participated, with Victoria de San Isidro, Estados Unidos, 1,739 specialist medical consultations, El Hatillo and one in Boquerón 348 medical prescriptions issued, 172 Lively hood projects enhancement optical prescriptions, and 116 surgeries Supported 40 4 5 community community community associations with a associations have associations business development started supplying now receiving programme that goods or services support from the includes donating seed to Prodeco and our Social Prosperity Holiday club in Ciénaga Two new holiday clubs in Calenturitas, capital contractor companies: Department in Boquerón and El Hatillo. (Comulcaser, 50 adolescents participated Aseobans, Asogemed Initiated a partnership with Colombian and Área Verde) Holiday club in La Jagua with 19 Civil Air Patrol
leisure activities for 5,362 boys, Cemprende entrepreneurship centre girls and adolescents
Between September 2015 and March 2016, the programme produced:
760 665 180 participants in the users referred to current users initial skills creation the job market programme
Contribution to SDGs 37 86 11 users found jobs business plans created
SUSTAINABLE In 2015 our initiative to build public-private partnerships resulted in partnerships with CITIES AND a number of governmental bodies, which allowed us to widen the scope of our Local COMMUNITIES Capacity development programs. Our goal is to improve the quality of public governance by offering training to civil servants in the planning and execution of development projects, and by engaging with citizens to increase their participation by training them in leadership, the oversight of public projects and writing proposals for new projects. In 2015 Adopt a supplier this took the form of long-term projects to improve the quality municipal administration, which have been running for the past three years. Prodeco’s procurement department identified suitable local suppliers and evaluated their suitability for the programme: 27 local suppliers benefitted We also completed an ongoing programme to educate local residents about the accountability of departmental administration for reinvesting royalty payments and other public funds. SUSTAINABILITY REPORT » PÁG » 146 147 » PAGE » SUSTAINABILITY REPORT 2015 2015
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25 Relationship with PUBLIC-PRIVATE the government
Own indicator: PARTNERSHIPS Number of public-private partnerships formed
We have focused part of our community focusing on the societal and economic development efforts on building partnerships with development of border areas. Our part of local governmental bodies and private businesses, the programme we dealt with the border to strengthen their engagement with local municipalities of Becerril and La Jagua. communities. This includes a drive to involve our own contractor companies. We have also built significant partnerships with private organisations, including the The most significant project so far has arisen from Colombian Civil Air Patrol, with which our partnerships with Social Prosperity, the National we created a team of surgical “Health Ministry of Education, the Valledupar Chamber of Brigadesto carry out a number of health Commerce and the Colombian Foreign Office. intervention days, and the Cesar “Peace and Development” programme (PDPC), who We worked with the Foreign Office on Plan we will work with to achieve, establish and Fronteras para la Prosperidad, a programme sustain peace in Colombia.
COLOMBIAN CIVIL AIR PATROL
The Colombian Civil Air Patrol is a non- the country. It has a volunteer base of 580 profit organisation with 50 years’ experience health professionals and 67 experienced private Contribution to SDGs providing medical care, and humanitarian and pilots, along with high-performance portable 8 emergency aid to vulnerable populations across medical equipment.
DECENT WORK As our operations do not have the capacity to supply employment for all within the CESAR “PEACE AND DEVELOPMENT” PROGRAMME AND ECONOMIC local region, we created the income generation programme. GROWTH
This has contributed significantly to local living conditions. During 2015 we developed a project to work been achieved. Together, we are creating together on initiatives preparing people for a framework agreement to guide projects 10 We have also helped to reduce local levels of extreme poverty through our work with life after Colombia’s peace process has implemented in 2016. the National Agency to Eradicate Extreme Poverty (ANSPE) and projects like Patios Productivos, which supports the creation of allotments for families and encourages REDUCED SOCIAL PROSPERITY INEQUALITIES communities to return to their agricultural backgrounds.
During 2015 we supported 40 community associations and more than 400 people Social Prosperity (Departamento de Prosperidad This partnership allows us to work with the national 11 1 Social in Spanish) is the government department government on subjects of interest for these areas, responsible for social inclusion and reconciliation propagating the conditions and opportunities We improved people’s employment prospects with the Cemprende programme processes for the most vulnerable sections of the that can help local communities overcome their SUSTAINABLE for entrepreneurship centres, carried out in partnership with the council of La Jagua Colombian population. The aim of this partnership vulnerable circumstances. CITIES AND 2 COMMUNITIES de Ibirico and the Valledupar Chamber of Commerce is to develop relationships for creating community investment projects that contribute to the We have supported ANSPE’s work, by donating supplies and animals for the reduction of poverty in our local areas. 3 Galpones project in the rural district of Potrerillo in Cesar. This is now considered a ZOLIP (poverty-free zone). We have also supported 31 local businesses, offering direct and indirect benefits to 203 people in Brisas del Mar, Barrio Abajo and Mar de Plata in Ciénaga de Santa Marta. SUSTAINABILITY REPORT » PÁG » 148 149 » PAGE » SUSTAINABILITY REPORT 2015 2015
Social Prosperity´s action focuses 26
Reconciliation and peace Material aspect: Generating income Basic social services Social infrastructure consolidation initiatives 26 Engagement RESETTLEMENT with and development of our communities
Indicator: MM9
In 2015 Social Prosperity held a health intervention We know that our operations affect those living Corporation (IFC) Performance Standard 5: day for our mining asset La Jagua, in partnership near to our assets. In the course of our mining Land Acquisition and Involuntary Resettlement. with ourselves and La Jagua city council. The 1,739 operations we may need to disturb land that is Throughout, our priority is to ensure that all specialist medical consultations that took place used by a local community. affected stakeholders have full participation. included specialisms in optometry, gynaecology, paediatrics, ophthalmology and dentistry. We seek to avoid resettlement wherever possible. Our goal is to improve living conditions, socio- When it cannot be avoided, we proceed in economic conditions and quality of life for the accordance with the International Finance people involved wherever possible. CROSS-INDUSTRY DEVELOPMENT PROGRAMMES
To maximise the benefits for our local communities We also formalised six new partnerships with: from the mining industry, we create additional public-private partnerships with the aim of getting •Relianz: to employ SENA (Colombian National further contributions from other local industries. Training Service) apprentices in a variety of subjects unrelated to mining Our new partnership with Social Prosperity allows us to support our local communities in a holistic •CHM Minería: work with us on our educational and co-ordinated way. The partnership has been quality programme Rural settlement Plan Bonito: formed to undertake programmes that will create (El Paso municipality) conditions and opportunities that will help them •Interglobal: work with us on training for security overcome their previous disadvantages. providers and our educational quality programme
The partnership will focus on four core activity •AustinEngineers: work with us on technical areas: (i) basic care, (ii) income generation and training in welding and sponsor the local welding capacity-building, (iii) social infrastructure and (iv) association reconciliation and peace building. We will achieve our aims using voluntary and joint responsibility •Xylem: have donated water treatment plants agreements, which encourage the sustainability of the programme, optimise resources and join forces. •Sodexo: work with us on improving the quality of local suppliers, to increase our local procurement We also partnered with the council of La Jagua de of agricultural products Ibirico to repair tertiary roads close to Calenturitas: La Jagua de Ibirico we donated fuel oil for the machines used in In 2015 we strengthened our partnerships with the preparation and maintenance of the road. government entities to jointly support community La Loma Approximately 2,000 gallons of fuel oil were used. projects.
In 2015, our cross-industry partners (a range of third parties, the majority of which are state entities) made contributions to a number of projects to benefit our local communities. They Rural district El Hatillo (El invested USD546,689 in total. USD426,685 came Paso municipality) from partnerships with our mining assets and Rural district Boquerón: (La USD120,004 from partnerships with Puerto Nuevo. Jagua de Ibirico municipality SUSTAINABILITY REPORT » PÁG » 150 151 » PAGE » SUSTAINABILITY REPORT 2015 2015
CURRENT RESETTLEMENT PROCESSES
We are currently working on a resettlement process ensure that the communities involved can maintain with the communities of El Hatillo, Plan Bonito and productive livelihoods through ongoing monitoring. Boquerón. We expect to promote the sustainability of these communities once our action plans have Our resettlement strategies consider the been implemented. individual context of each community, including their pre-existing economic, societal and living Throughout, our priority is to ensure that all affected conditions and the individual and collective Rural district Boquerón: (La stakeholders have full participation. We seek to willingness of residents. Jagua de Ibirico municipality)
La Jagua Approximately de Ibirico La Loma 650 170 Rural district El Hatillo (El families residents Paso municipality)
320 families involved The resettlement Negotiations on the conditions and the A topographic survey has been will be by collective baseline population census methodology agreed with the community, which agreement have been ongoing since 2011 started on 10 November 2015 and 190 130 should finish in July 2016 La Jagua residents non-residents de Ibirico
La Loma
1 Contribution to SDGs
The resettlement Resettlement is forecast The legal framework for the Initiation of projects Our resettlement activities in 2015 included a number of key achievements: is by collective for the second process has been agreed, developed with NO POVERTY agreement half of 2017 with a socio-economic the assistance of analysis still being the United Nations processed Development Programme (UNDP) Livelihood restoration plan for Plan Bonito: 96 families and 473 people benefitted; 418 people received access to the Colombian government’s Social 1 Programme Beneficiary Selection System (SISBEN), which assisted 22 elderly adults, 65 young people and 136 children. We helped develop 19 business models, create Rural settlement Plan Bonito: 11 enterprises and improve eight businesses. (El Paso municipality) Studies show that the number of well-off families has increased considerably following the resettlement process. Numbers rose from 66 in 2012 to 85 in 2015. Families at risk of falling into poverty dropped from 11 to 6, and families in poverty fell from 19 to 5. 173 families involved
90 75 Some outstanding issues in the El Hatillo resettlement process were La Jagua 2 resolved: an agreement has been reached between all parties; it was also agreed residents non-residents de Ibirico
La Loma that the ongoing documentation process should be enhanced with a social mapping, asset inventory and tenancy study; this will be the basis for a proposal on the process for restoring living conditions, including social and cultural networks, economic foundations and habitat.
The resettlement Resettlement took A livelihood restoration plan, which will continue Socya and ERM joined the resettlement process: they will join the existing list of was by individual place in August 2014 for two years, is being implemented 3 companies working on improvements, contributing to our resettlement plans. agreement SUSTAINABILITY REPORT » PÁG » 152 153 » PAGE » SUSTAINABILITY REPORT 2015 2015
Other SDG 27 contributions
27 Material aspect: Engagement An integrated solid waste management, agriculture and sustainable COMMUNITY with and 2 urban transformation system: implemented in the rural district of La Victoria development of de San Isidro, we have developed this to improve food security. It includes a pilot ENGAGEMENT our communities agriculture and sustainable urban transformation project, which will directly benefit NO HUNGER 50 vulnerable families and serve as a model for a wider rollout in the future. Indicator: G4- SO2
A strong relationship with all our stakeholders community development, and their ultimate self- is a vital element in achieving our goals as a sufficiency. Forest offset programme: implemented in the Serranía del Perijá, we have business. Our host communities and other local 15 developed this to encourage sustainable development in the area by protecting stakeholders are a high priority in this area. We have analysed the populations of the existing forest cover, improving the areas designated for reforestation, and communities around each our assets, including increasing the water regulating capacity of the Tucuy and Sororia sub basins. We are committed to building and maintaining their economic, societal and cultural features. LIFE ON LAND constructive, lasting relationships with our host This has helped us to identify the negative and For more information about this programme see Our environmental commitment/ communities. We are aware that our contributions positive impacts from our operations and create Environmental Offsetting. are important to their quality of life, their management, mitigation and offset plans.
Partnership with the Cesar “Peace and Development” programme: we 16 intend to work together to help local communities, particularly those vulnerable to violence, conflict, poverty, exclusion or marginality.
PEACE AND We hope that this partnership will help to bring together our technical and JUSTICE; STRONG INSTITUTIONS administrative efforts. Our goal is to encourage the engagement of our local communities with the Colombian peace process. We will focus on five key areas:
• Peace and human rights Positive Negative impacts impacts • Democratic governance
• Comprehensive sustainable development
• Education and culture
Employment generation Changes to the dynamics and Cross-industry programme: we formalised six new partnerships that will add structure of the community? 17 value to our supply chain. We also initiated a corporate volunteering programme Contribution to poverty and signed a framework agreement with the Colombian Foreign Office to work reduction Changes to the local together on Plan Fronteras para la Prosperidad (a programme focusing on the employment market PARTNERSHIPS Improved access to and quality FOR THE GOALS societal and economic development of border areas). of education Changes to traditional economic activities For more information about the partnerships we have formed in 2015, see the Increased opportunities for and Public-private partnerships section. mentoring of local suppliers
Contribution to development in the region SUSTAINABILITY REPORT » PÁG » 154 155 » PAGE » SUSTAINABILITY REPORT 2015 2015
Calenturitas mine OUR AREAS OF INFLUENCE
Direct area of influence Cesar • Rural settlement: Plan Bonito Calenturitas and La Jagua are in the department and mining. Cotton growing and processing, oil • Rural districts: La Loma de of Cesar, specifically in the municipalities of palms and other agricultural products are highly Calenturitas; Boquerón La Jagua de Ibirico, Becerril and El Paso. The developed and technologically advanced. As a main economic activities in these municipalities result these municipalities are significant national are agriculture and livestock farming, services producers of Africana palm seed and rice. Indirect area of influence
• Municipalities: Becerril; La Jagua Ibirico; El Paso La Jagua mine
Direct area of influence Cesar • Municipal capitals: La Jagua de Ibirico; Becerril • Rural districts: La Victoria de San Isidro; Estados Unidos
Indirect area of influence
• Municipalities: La Jagua; Becerril
Puerto Nuevo
Direct area of influence Magdalena • Maritime area from Ciénaga • Rural • Neighbourhoods: Mar to airport Simón Bolívar settlements: del Plata; Barrio Abajo; Ojo de agua; Nancy; Polomiramar; • Rural district: Cordobita Papare; Playitas; Kennedy; Costa Verde Jolonura • Municipality
Puerto Nuevo is located in the municipality of Ciénaga, Magdalena: local communities in this region come from a traditional economic background based on rural farming and fishing. SUSTAINABILITY REPORT » PÁG » 156 157 » PAGE » SUSTAINABILITY REPORT 2015 2015
Engagement with local, regional and national government
Our local and national governmental bodies are key We also maintain four community relations offices PLANNING A FORMAL stakeholders. in La Jagua, Becerril, and La Loma in Cesar y Ciénaga. These are the main channel through which ENGAGEMENT STRATEGY In 2015 we held 379 meetings with local government we engage with our host communities. During and council representatives in Cesar and 2015 our offices attended to 3,414 local people. Magdalena. We have strengthened our relationships The subjects discussed ranged from employment with these bodies, as well as with our local seeking to information requests relating to changes community leaders. at our assets. During 2015 we made progress on our engagement plan for identifying, mapping and developing a stakeholder engagement strategy. The strategy will cover how we plan, manage and review all activity that involves stakeholders, as well as how we support our local communities. The strategy is based on:
1,360 1,027 Participants Participants from Cesar from Magdalena The Identifying A profile of Evaluation of identification their problems, the local the impacts of Communication mechanisms and evaluation opportunities community our activities of community and risks, and external concerns and stakeholders interests We have a range of established community resolve and respond appropriately to the needs and communication mechanisms in the areas near our concerns of the population. assets to strengthen our relationships with local communities. These mechanisms help us attend to, In 2015, our engagement resulted in: This exercise allowed us to finalise our community engagement team, increasing their motivation for the work that they do in the community. They also represent a special unit who develop our relationship with these stakeholder groups.
Communities 1Meetings 2 Publications living in our direct area of influence Puerto Nuevo: Mines: 18 meetings with 187 participants 226 Municipal mayors, publications including Job vacancy governors of each newsletters, press releases, 5 notices Mines: department, municipal community information sites, councils 179 articles in newspapers and Puerto Nuevo: Community community meetings environmental bulletins hired 50 people.
Mines: hired 884 people. Community Radio Our relations NGOs Local 3 programmes 4 offices stakeholders authorities Puerto Nuevo: Puerto Nuevo:
1,027 33 requests received and public service announcements responded to Social Prosperity / ANM (National Mines: Estaciones de radio y Mining Agency) /ANLA (National Mines: medios impresos de Regional State Environmental Licensing 779 la región. Authority), Ministry of Education 90 requests from Becerril media agencies radio slots / SENA (Colombian National and La Jagua received Training Service / AUNAP (National and responded to Aquaculture and Fishing Authority) / ANSPE (National Agency to Eradicate Extreme Poverty) SUSTAINABILITY REPORT » PÁG » 158 159 » PAGE » SUSTAINABILITY REPORT 2015 2015
CHALLENGES FOR 2016
Our aim is to continuously improve our efforts to care for our local communities. Our plans for community engagement in 2016 include:
Resettlements 1 • Work with the inhabitants of El Hatillo to agree the impacts and control measures that will allow them to sign a Resettlement Action Plan (PAR
28 28 Complaints and • Make progress with the socio-economic census, social mapping and tenancy study grievances that will monitor resettlement impacts in Boquerón Material aspect: Engagement As part of the ethical, responsible and transparent negative impacts from our operations. Engagement with and behaviour that we maintain with our stakeholders, development of our Addressing Concerns programme (PAI) lets our In 2015 we received six complaints, which we • Implement an integrated stakeholder engagement strategy our communities local communities inform us of any breaches of received and dealt with accordingly. The topics were: 2 regulations or of our corporate policies, along with • Continue to implement our Addressing Concerns programme Indicator: G4- any cases of corruption, human rights violations or SO11 • Redevelop our community engagement strategy to improve our intervention, involvement and communication processes (see section Planning a formal engagement strategy)
Community investment
• Begin implementation of Cesar’s joint portfolio for regional sustainable 3 development, a larger programme of investment projects to be carried out in 2 2 1 1 partnership with Cesar’s provincial governments and councils and other local Impact of blasting Compensation for Housing flooded Fuel stains on mining companies, with support from the UNDP on local houses death of animals by sediment fishing nets • Start the first phase of our educational quality improvement plan in Cesar
• Work with the Cesar “Peace and Development” programme
• Develop our cross-industry development programmes (see section Cross-industry development programmes)
• Build more public-private partnerships to improve and consolidate our community development programmes 161 » PAGE » SUSTAINABILITY REPORT 2015
11 SUPPLY CHAIN MANAGEMENT
In 2015 Prodeco had over 900 direct suppliers, 90% national and 10% international. We spent 66% of our national procurement budget with local suppliers from Atlántico, Cesar and Magdalena, and 26% with suppliers in other areas of the country. SUSTAINABILITY REPORT » PÁG » 162 163 » PAGE » SUSTAINABILITY REPORT 2015 2015
2014 2015 SUPPLIER DUE DILIGENCE
Suppliers from Local Total national Suppliers Our assets undertake rigorous due diligence on any Together, these two processes deliver an other parts of Total suppliers communities suppliers abroad new partners below a certain size, in line with our individualised assessment which ensures that new the country policies and Code of Conduct. This is carried out suppliers are aware of our code of conduct. We 450 414 863 89 953 by a trusted and experienced third party, currently also conduct detailed financial analyses. COFACE. Our contracts with our suppliers include 412 437 849 92 941 our policies as part of their terms and conditions. In 2015, 97% of our new suppliers were evaluated by COFACE, with 3% meeting our size criteria We also conduct reputational risk analysis that covers for exemption from the process. These included 208 potential types of human rights or environmental DIAN, Indumil and Ecopetrol. issues across 74 national and international databases. Historically, in 2013 Prodeco was still consolidating and is approved by senior management. The its growth strategy with a major capital investment, chairman’s office and other departments are aware while in 2014 we stabilised our supply chain, of all procurement, contributing to our company- allowing us to procure a greater proportion of our wide culture of transparency. services and consumables locally in 2015. Our supply chain management aims to contribute We use an automated enterprise resource planning to Prodeco’s sustainability, as well as minimising system to ensure that we use our agreed process costs, optimising quality, reducing procurement for acquiring goods and services. This process is times and maximising transparency throughout the designed to make the best use of local resources, procurement process. LOCAL ECONOMIC CONTRIBUTION 29
Most our local procurement budget in 2015 was spent on fuel supplies, machine parts, explosives, lubricant, 29 transport of people and goods, and energy. We increased our level of local procurement by 5%.
Material aspect: * ** Management of 2014 USD 589 2015 USD 443 suppliers and million million contractors
Indicator: G4- EC9
* Using Representative Market Exchange Rate 2,000.33 (GCP 2014)
** Using Representative Market Exchange Rate 2,743.39 (GCP 2015) SUSTAINABILITY REPORT » PÁG » 164 165 » PAGE » SUSTAINABILITY REPORT 2015 2015
2014 2015 SUPPLIER Value Representative Number of Number of RELATIONSHIPS DEPARTMENT Market Exchange Value (2,743.39) suppliers suppliers Rate (2,000.33) Robust supply chain management includes forming long-term relationships with our suppliers based Atlántico 275 298,243,324 255 266,928,102 on trust and good faith. We carry out visits to assess their performance in key areas (eg timely Magdalena 96 273,657,026 92 163,635,370 payment, compliance) every year. Cesar 79 17,470,551 65 13,430,479 Total proveedores locales 450 589,370,901 412 443,993,950 We normally hold meetings with our national and international suppliers to disseminate our policies and see how our partners comply with them. Budget issues in 2015 prevented a general meeting. Instead, we met in smaller groups, in which we presented our policies and Code of Conduct, promoted 30 Adopt a supplier 30 the new Colombian system to prevent money laundering and terrorist financing (SIPLAFT), and programme discussed our expectations around customer service, regulations on products travelling through duty- free zones, and our general expectations on performance. Material aspect: Management of Our Adopt a supplier programme, which mentors and supports local suppliers, continued in 2015. We suppliers and help participants to improve their entrepreneurial skills and sales volumes, with the goal of trading on the contractors national market. Progress included Own indicator: Number of participants in the 31 31 Adopt a supplier QUALITY AND programme PROCESS ASSESSMENT Improving entrepreneurial skills Material aspect: 1 Management of this is the next phase of a programme run by the Universidad del Norte. The university has already suppliers and assessed each company’s supply chain maturity, and determined that the programme should focus on In 2015 we took on 350 new suppliers, 89% of which were national companies. 210 supply us with goods contractors redefining the goods and services that they offer. We validated and defined each company’s business and services, and 140 are financial suppliers. model, including goods or services offered and their value chain, resources, revenue flow and expenses, Indicator: G4- clients and distribution channels. This process should be finalised in 2016. 60% of the new suppliers were subject to assessments on four criteria. The majority of these assessments EN32, G4-LA14, were performed on goods and services suppliers. G4-LA15, G4- SO9, G4-HR10
Increasing sales volumes: 2 this project is designed to improve each participant’s business sustainability, including a reduced dependence on Prodeco’s patronage. Initially we help guide these companies through our competitive Environmental procurement process, helping them comply with Prodeco’s stringent requirements. This process will Social continue throughout the whole programme. impact 98% (206)
of new suppliers of goods and services werw 2014 2015 assessed on the following Value Representative Value Representative criteria Number of Number of DEPARTMENT Market Exchange Market Exchange suppliers suppliers Rate (2,000.33) Rate (2,743.39) Employment Human Atlántico 1 624 - - practices rights Magdalena 1 79,063 4 278,166
Cesar 10 2,472,933 10 2,752,242
We also assessed a further 151 suppliers to evaluate their employment practices and ensure that they meet Total compras a 12 2,552,619 14 3,030,408 our standards when working at our assets. proveedores del Programa 167 » PAGE » SUSTAINABILITY REPORT 2015
12 GRI INDICATORS SUSTAINABILITY REPORT » PÁG » 168 169 » PAGE » SUSTAINABILITY REPORT 2015 2015
Deloitte & Touche Ltda. Edificio Corficolombiana Calle 16 Sur 43 A-49 Piso 9 y 10 A.A 404 Specific aspects Nit 860.005.813-4 We reviewed the management approach and GRI and internal indicators of the next material issues Medellín identified by the company: Colombia
Tel : 57(4) 313 88 99 Independent Assurance Report Fax : 57(4) 313 32 25 Material issues GRI or Internal Indicators of Prodeco Independent assurance statement of Prodeco’s Sustainability Report 2015 www.deloitte.com.co
G4 – EN29 Robust corporate governance Responsibilities of the G4 – SO8 Scope of our work Management of Prodeco We conducted our review of the adaptation of the contents of Sustainability Report 2015 and Deloitte. Engagement with government Internal. Number of public - private partnerships of Prodeco to the Guide for the preparation of Sustainability Reports of Global Reporting made in 2015. The preparation of the Initiative (GRI) version 4.0 (G4). Sustainability Report 2015 Business competitiveness Internal. Tons of coal produced. and its contents are the responsibility of the Career development for our people G4 – LA10 organization which is also Standards and verification processes. responsible for defining, Safe operations G4 – LA6 adapting and maintaining We conducted our work in accordance with ISAE 3000 - International Standard on management systems and G4 – HR9 Assurance Engagements Other than Audits or Reviews of Historical Financial Information internal control, which Respect for human rights issued by the International Auditing and Assurance Standards Board (IAASB) of the information is obtained. G4 – HR12 International Federation of Accounts (IFAC). Our responsibility is to issue G4 – EN8 Our review work consisted in formulating questions to the Directors and the various areas an independent report based G4 – EN10 of Prodeco who participated in the development of Sustainability Report 2015 and the on our review procedures applied. application of certain analytical procedures and review testing sample described below: G4 – EN12 This report has been prepared G4 – EN13 Interviews with Prodeco’s staff in order to know the principles, systems and exclusively in the interests of the organization in accordance G4 – MM1 management approaches used to develop the report and calculate the indicators. Environmental management and performance with the terms of our proposed G4 – EN21 services. We do not assume Analysis of how the process of definition of the content, structure and indicators any liability to third parties G4 – EN22 other than the company was defined, based on the materiality exercise according to the GRI G4 Direction. G4 – EN23 methodology. G4 – EN24 We have performed our Evaluation of the process to collect and validate the data presented in the report. work in accordance with the G4 – MM3 Independence regulations required by the etic code of G4 – SO2 Checking, by testing based on sample selection and review of evidence of the International Federation Engagement with and development of our host G4 – MM6 quantitative and qualitative information corresponding to the GRI and Prodeco´s of Accountants (IFAC). communities G4 – MM7 internal indicators included in the Sustainability Report 2015 and the adequate The Scope of a limited compilation of the data provided by Prodeco. Review is substantially less G4 – MM9 than an audit. Therefore we don’t provide an audit G4 – LA15 opinion about the Review of the materiality process performed by Prodeco and CREO. G4 – SO9 sustainability report. Robust supplier and contractor management G4 – EC8 Confirmation that the Sustainability Report 2015 is prepared in accordance with Internal. Number of participants in the program GRI methodology G4 in its “Essential" version. "Adopt a provider"
General aspects Conclusions It was confirmed that the report meets the requirements of Essential option of the general DELOITTE & TOUCHE LTDA. As a result of our review, there was nothing that make us believe that the Sustainability Report 2015 aspects of the GRI G4 version; indicators G4-1, G4-3 to G4-34 and G4-56 were reported. Jorge Enrique Múnera D. contains significant errors or has not been prepared in accordance with the Guide for the preparation of Partner Sustainability Reports of Global Reporting Initiative (G4) in its “Essential” version.
Bogotá, November 2016
Una firma miembro de Audit.Tax.Consulting.Financial.Advisory Deloitte Touche Tohmatsu SUSTAINABILITY REPORT » PÁG » 170 171 » PAGE » SUSTAINABILITY REPORT 2015 2015
Findings and recommendations against the Sustainability Report 2015 of Prodeco according to the External Indicator Page Omission GRI and WBCSD Principles: assurance Strategy and analysis Balance / Commitments and Goals G4.1 Observations: Provide a statement from the most senior decision- The sustainability report includes the company's achievements in relation to the management maker of the organization about the relevance of carried out in the year under report, however does not include the main challenges and goals in sustainability to the organization. the short, medium and long term has company in its coming years. G4.2 Provide a description of key impacts, risks and opportunities. Recommendations: It is recommended to include the goals, challenges and opportunities for improvement in more Organizational Profile detail and in terms of short, medium and long term, for each material issue managed. G4.3 Report the name of the organization.
Punctuality G4.4 Observations: Report the primary bands, products and services. There is an opportunity for improvement in the timing of publication of the report, so that it can be G4.5 consulted at the best of times by stakeholders interested in learning the annual management of Report the location of the organization’s the company. headquarters. G4.6 Recommendations Report the number of countries where the organization operates, and names of countries It is recommended to start the process of preparing the report well in advance and define dates where either the organization has significant and key aspects for the preparation, so that this can be published in the first half of the year. operations or that are specifically relevant to the sustainability topics covered in the report.
Comparability G4.7 Observations: Report the nature of ownership and legal form. The company publishes information that allow stakeholders to make a comparison between the G4.8 year under memory and the immediately preceding year. Markets served (including geographic breakdown, sectors served, and types of customers). Recommendations: G4.9 It is suggested to include information on the outcome of performance of the related company for 3 Report the scale of the organization, including: years prior to the period under memory, so that stakeholders can demonstrate the evolution of the - Number of employees economic, social and environmental performance of the company. - Total number of operations - Net sales or revenues
G4.10 Report the following employment information: - Report the total number of employees by contract and gender - Report the total number of employees by region and gender
G4.11 Report the percentage of total employees covered by collective bargaining agreements
G4.12 Describe the organization’s supply chain.
G4.13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership or in its supply chain.
G4.14 Describe how the organization has adopted the precautionary approach or principle. SUSTAINABILITY REPORT » PÁG » 172 173 » PAGE » SUSTAINABILITY REPORT 2015 2015
External External Indicator Page Omission Indicator Page Omission assurance assurance
G4.15 G4.27 List externally developed economic, environmental Report key topics and concerns that have been and social charters, principles, or other initiatives raised through stakeholder engagement, and how to which the organization subscribes or which it the organization has responded to these topics in endorses. the drafting of the report. Report on the stakeholders and topics that were identified as relevant. G4.16 List memberships of associations (such as industry Report profile associations) and/or national and international organizations that the organization supports. G4.28 Reporting period for the information provided. Identified material aspects and boundaries G4.29 G4.17 Date of most recent previous report. List all entities included in the organization’s consolidated financial statements of equivalent G4.30 documents, and report whether any of these Reporting cycle (annual, biennial). entities is not included in the sustainability report. G4.31 G4.18 Point of contact for questions regarding Explain the process for defining the report content the report or its contents. and the aspect boundaries/aspects to report on. G4.32 G4.19 Report the “in accordance” option with the GRI List all the material Aspects identified in the methodology selected by the organization (Core- process for defining report content. Comprehensive). Report the GRI Content Index.
G4.20 G4.33 For each material Aspect, report if it is material for Report the company policy or approach with regard all the organization. If not, indicate which aspect is to seeking external assurance for the report. not material for some part of the entities that make Governance up the organization. G4.34 G4.21 Report the governance structure of the For each material Aspect, report if it is material organization, including the highest governance outside the organization. body. Identify any committees responsible for G4.22 decision-making on economic, environmental and Describe the effect of any restatements of social subjects. information provided in previous reports, and the G4-37 reasons for such restatements. Describe processes for consultation between G4.23 stakeholders and the highest governance body Report significant changes from previous reporting on economic, environmental and social topics. If periods in the Scope and Aspect boundaries, or the consultation is delegated, indicate to whom and evaluation methods applied to the report. describe any feedback processes to the highest governance body. Stakeholders G4-38 G4.24 Report the composition of the highest governance Provide a list of stakeholder groups engaged body and its committees. by the organization. Ethics and Integrity G4.25 Report the basis for identification and selection of G4.56 stakeholders with whom to engage. Describe the values, principles, standards and norms of behaviour such as codes of conduct and G4.26 codes of ethics. Report the organization’s approach to stakeholder engagement, including the frequency of engagement by type and by stakeholder group, indicate if any of the engagement was undertaken as part of the report preparation process. SUSTAINABILITY REPORT » PÁG » 174 175 » PAGE » SUSTAINABILITY REPORT 2015 2015
External External CREO Indicator Page Omission Material aspects GRI aspect Indicators Page / Response indicator Omission assurance assurance Comments
G4.57 Good Regulatory G4-EN29 x Report the internal and external mechanisms for governance compliance Monetary value of significant fines seeking advice on ethical and lawful behaviour, and and total number of non-monetary matters related to organizational integrity, such as sanctions for non-compliance with helplines or advice lines. environmental laws and regulations
G4.58 G4-SO8 Report the internal and external mechanisms for Monetary value of significant fines reporting concerns about unethical or unlawful and total number of non-monetary behaviour, and matters related to organizational sanctions for non-compliance with integrity, such as escalation through line laws and regulations management, whistleblowing mechanisms or hotlines. ‘No associated Own GRI aspect Number of people trained in the new Code of Conduct
Government ‘No associated Own x Engagement GRI aspect Number of public-private partnerships formed in 2015
Efficient and Economic G4-EC1 competitive performance Direct economic value generated operation and distributed
Non-specific Own x Tonnes of coal produced
Development Training and G4-LA9 and well-being education Average hours of training per year of our people per employee by gender, and by employee category
G4 -LA10 x Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and employee category.
Safe operations Health and G4-LA6 x safety at work Type of injury and rates of injury, occupational diseases, lost days, absenteeism and total number of work-related fatalities, by region and by gender SUSTAINABILITY REPORT » PÁG » 176 177 » PAGE » SUSTAINABILITY REPORT 2015 2015
External CREO External CREO Material aspects GRI aspect Indicators Page / Response indicator Omission Material aspects GRI aspect Indicators Page / Response indicator Omission assurance Comments assurance Comments
G4-LA7 x G4-EN13 Within the mining concessions x Workers with high incidence or Habitats protects or restored there are areas that are high risk of diseases related to their currently undergoing a occupation rehabilitation process but there are no restored and protected Investment G4-HR2 Respect for areas (understanding these Total hours of employee training human rights within the UICN categories), in on human rights policies and which native grass and bush procedures concerning aspects species have been sown; these of human rights that are relevant activities are still underway for their activities, including the as they move in parallel with percentage of trained employees. mining activities, each report Assessment G4-HR9 x is generated annually within Number and percentage of the Environmental Compliance centres that have been subject to Reports (ECR). human rights reviews or impact G4-EN14 assessments. Total number of IUCN Red List Human rights G4-HR12 In 2015 no complaints were x species and national conservation grievance Number of grievances about filed relating to human rights list species with habitats in areas mechanisms human rights filed, addressed, and abuses. affected by operations, by level of resolved through formal grievance extinction risk mechanisms. MM1 x Diversity and G4-LA12 Amount of land (own or leased, and equality of Composition of governance bodies managed for production activities opportunities and breakdown of employees per or extractive use) disturbed or employee category according to rehabilitated gender, age group, minority group MM2 None of the three Prodeco membership and other indicators of The number and percentage of operations are located in or diversity total sites identified as requiring adjacent to high biodiversity ‘No associated Own biodiversity management plans or protected areas. However, GRI aspect Number of collective work according to stated criteria, and the for each operation there are agreements signed in 2015 number (percentage) of those sites environmental biodiversity with plans in place management plans. Environmental Water G4-EN8 x management Total water withdrawal by source Emissions G4-EN21 x and performance NOx, SOx and other significant G4-EN9 air emissions Water sources significantly affected by withdrawal of water Closure MM10 planning Number and percentage of G4-EN10 x operations with closure plans Percentage and total volume of water recycled and reused Effluents G4-EN22 x and waste Total water discharge by quality Biodiversity G4-EN12 x and destination Description of most significant impacts of activities, products and G4-EN23 x services on biodiversity in protected Total weight of waste by type and areas and areas of high biodiversity disposal method G4-EN24 During 2015 there were no x Total number and volume of significant spillages at any significant spillages of the Company’s three operations
MM3 x Total amounts of overburden, rock, tailings and sludge and their associated risks SUSTAINABILITY REPORT » PÁG » 178 179 » PAGE » SUSTAINABILITY REPORT 2015 2015
External CREO External CREO Material aspects GRI aspect Indicators Page / Response indicator Omission Material aspects GRI aspect Indicators Page / Response indicator Omission assurance Comments assurance Comments
Engagement Local G4-SO1 Assessment G4-HR10 We perform a risk analysis with and communities Percentage of operations with of suppliers as Percentage of new suppliers along our supply chain to development of implemented local community regards human who were screened using human check compliance with our our communities engagement, impact assessments rights rights criteria. policies. Also, in COFASE and development programmes. a due diligence analysis is performed to each contractor, G4-SO2 x including human rights. Operations with significant actual and potential negative impacts on Indirect G4-EC8 x local communities. economic Significant indirect economic consequences impacts, including extent MM6 x of impacts. The extent to which grievance mechanisms were used to Procurement G4-EC9 resolve disputes relating to land practices Proportion of spending on local use, customary rights of local suppliers at significant locations communities and indigenous During 2015 there were no of operation. peoples, and the outcomes. disputes related to land use, customary rights of local Non-specific Propio x MM7 x communities and indigenous Number of participants in the The extent to which grievance peoples. Adopt a supplier programme mechanisms were used to resolve disputes relating to land use, customary rights of local communities and indigenous peoples, and the outcomes.
Complaints G4-SO11 mechanisms Number of grievances about social about social impacts filed, addressed, and impacts resolved through formal grievance mechanisms.
Resettlements MM9 x Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process.W
Management of Environmental G4-EN32 suppliers and assessment of Percentage of new suppliers who contractors suppliers were screen using environmental criteria.
Evaluation of the G4-LA14 labour practices Percentage of new suppliers of suppliers who were screened using labour practices criteria.
G4-LA15 During 2015 there were no x Significant actual and potential actual nor potential impacts negative impacts for labour identified over labor practices practices in the supply chain and during the evaluations actions taken. performed over 151 suppliers
Evaluation of the G4-SO9 social impact of Percentage of new suppliers who suppliers were screened using criteria for impacts on society. SUSTAINABILITY REPORT » PÁG » 180 181 » PAGE » SUSTAINABILITY REPORT 2015 2015
ANNEXES
SPECIES OF FLORA AMPHIBIAN SPECIES
FAMILY COMMON NAME SPECIES UICN COLOMBIAN RESOLUTION FAMILY COMMON NAME SPECIES UICN CITES RED BOOK 0192 OF 2014 Bufonidae sapo verrugoso Rhinella humboldti LC
sapo granuloso Rhinella marina LC Aspidosperma Apocynaceae Roble rosado EN EN polyneuron Ceratophrydae sapo cornudo Ceratophrys cornuta LC
Arecaceae Palma de vino Attalea butyracea LC LC Craugastoridae rana picuda Craugastor raniformis LC Tabebuia Bignoniaceae Puy LC impetiginosa Ranita Dendropsophus microcephalus LC Myroxylon Leguminosae Bálsamo NT rana platanera Hypsiboas crepitans LC balsamum Hylidae Malvaceae Ceiba bruja Ceiba pentandra LC rana platanera Hypsiboas pugnax LC
Malvaceae Ceiba Tolua Pachira quinata EN EN Rana Scartyla vigilans LC
Zygophyllaceae Guayacán Bulnesia arborea EN EN sapito verrugoso Engystomops pustulosus LC
Lecythidaceae Olla de mono Lecythis minor LC LC rana picuda Leptodactylus fragilis LC
Boraginaceae Cañahuate canalete Cordia alliodora LC LC rana picuda Leptodactylus fuscus LC
Fabaceae Algarrobo Hymenaea courbaril LC Leptodactylidae rana saltarina Leptodactylus bolivianus LC
Caesalpinaceae Ebano Caesalpinia ebano EN rana saltarina Leptodactylus poecilochilus LC
Sapito Pleurodema brachyops LC
Sapito Pseudopaludicola pusilla LC
Microhylidae Rana Chiasmocleis panamensis LC
Caecilidae ciega/ tatacoa Caecilia subnigricans LC SUSTAINABILITY REPORT » PÁG » 182 183 » PAGE » SUSTAINABILITY REPORT 2015 2015
BIRD SPECIES
CITES CITES SPECIES COMMON NAME IUCN REDLIST APPENDICES SPECIES COMMON NAME IUCN REDLIST APPENDICES (I, II, III) (I, II, III) Geranospiza caerulescens Águila zancona LC II
Amazona farinosa Loro real NT II Glaucidium brasilianum Buhito cejón LC II
Amazona ochrocephala Lora Cabeciamarilla LC II Herpetotheres cachinnans Halcón reidor LC II
Ara ararauna Guacamaya azulamarilla LC II Ictinia plumbea Águila plomiza LC II
Brotogeris jugularis Periquito bronceado LC II Lepidopyga goudoti Colibri de goudot LC II
Busarellus nigricollis Águila pescadora LC II Micrastur semitorquatus Halcón montés collarejo LC II
Buteo nitidus Gavilán saraviado LC II Milvago chimachima Pigua LC II
Buteogallus meridionalis Águila sabanera LC II Mycteria americana Garzon gabán LC I
Buteogallus urubitinga Águila medio luto LC II Patagioenas subvinacea Paloma colorada VU
Caracara cheriway Carraco LC II Phaetornis anthophilus Ermitaño carinegro LC II
Chlorostilbon gibsoni Esmeralda piquirroja LC II Phaetornis longirostris Ermitaño colilargo LC II
Chondrohierax uncinatus Caracolero piquiganchudo LC I Pulsatrix perspicillata Búho de anteojos LC II
Dendrocygna autumnalis Iguasa LC III Rostrhamus sociabilis Gavilán Caracolero LC II
Elanus leucurus Gavilán maromero LC II Rupornis magnirostris Gavilán Pollero LC II
Eupsittula pertinax Perico carisucio LC II sarcoramphus papa Rey Gallinazo LC II
Falco femoralis Cernícalo real LC II Platalea ajaja Pato Cuchara LC II
Falco sparverius Cernícalo LC II Cairinia moschata Pato Real LC II
Forpus conspicillatus Periquito de anteojos LC II Myiornis ecaudatus Tiranuelo LC II SUSTAINABILITY REPORT » PÁG » 184 185 » PAGE » SUSTAINABILITY REPORT 2015 2015
REPTILE SPECIES MAMMALIAN SPECIES
COLOMBIAN RESOLUTION RED BOOK RESOLUTION ORDER FAMILY COMMON NAME SPECIES UICN CITES FAMILY COMMON NAME SPECIES UICN CITES RED BOOK 0192 de 2014 COLOMBIA 0192 OF 2014
Caiman Cebus albifrons Crocodylia Alligatoridae Babilla LC II VU Atelidae Mono cariblanco NT II NT NT crocodilus fuscus cesarae
Iguanidae Iguana Iguana iguana II Cebidae Mono aullador Alouatta seniculus LC II Squamata Tupinambis Aotus Teiidae Lobo pollero II Aotidae Mico nocturno VU II VU VU teguixin griseimembra
Boidae Boa Boa constrictor II Canidae Zorro perro Cerdocyon thous LC II
Epicrates Leopardus Boidae Boa tornasol II Felidae Ocelote LC I NT NT cenchria pardalis Serpentes Puma colubridae Mapanare Clelia clelia II Felidae Gato de monte LC II yagouaroundi Thamnodynastes colubridae Mapaná Mustelidae Nutria Lontra locangiudis DD II VU VU gambotensis Trachemys Mazama cf. Emydidae Hícotea VU VU Cervidae Soche colorado DD II callirostris sanctaemartae Chelonoidis Hormiguero Myrmecophaga Testudine Testudinae Morrocoyo EN II CR CR Myrmecophagidae VU II VU VU carbonarius Palmero tridactyla Mesochlemys Armadillo cola de Cabassous Chelidae Pescuezo torcido CR II CR CR Dasypodidae DD II NT NT dahhli trapo centralis Ateles hybridus Atelidae Mico araña CR II CR CR hybridus