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Introduction

In accordance with the UK Government guidance, Anglo American has produced a Group statement that these entities can also use to meet section 54 of the Act.

These entities are:

Anglo American Services

Anglo American Marketing Limited

This statement provides an update on Anglo American’s progress on implementing the Anglo Platinum Marketing Limited transparency requirements of the UK Modern Slavery Act 2015 (the Act) during 2020 and our plans for further enhancements in coming years. Anglo American T&S Services This statement is made by Anglo American plc, the holding company of the Anglo American Group of companies and its relevant subsidiaries and managed Each of the above entities has approved this statement. A separate joint ventures (the Group), statement is being made by De Beers plc and its relevant subsidiaries in accordance with section and managed joint ventures pursuant to section 54 of the Act. 54 of the Act. This statement does not include Anglo American Woodsmith Limited (formerly, Minerals Plc), the acquisition of which was completed in 2020, because it does not meet the reporting threshold.

Our Metallurgical Coal business which operates in will publish their first Modern Slavery Statement in 2021 as required by the Australian Modern Slavery Act (2018).

In publishing this statement, we reaffirm our commitment to combat all forms of modern slavery in our organisation and in our supply chains. We are pleased to take this opportunity to outline our ongoing work in this important area of human rights.

Anglo American Modern Slavery Act Statement Contents

1 Summary 14 Third-party assessments

3 About Anglo American 14 Incidents and whistleblowing

3 Purpose to Value 14 Building capacity of SMEs

5 Supply chain and Covid-19 and human rights risk modern slavery risk 16 6 About our supply chain 16 Internal training and awareness

Modern slavery risk Partnerships and 7 17 engagement

8 Approach and strategy 17 Australia

Sustainable Mining Plan 9 modern slavery risk 17

11 Human Rights 17

Responsible supply Looking forward 11 chain management 18

13 Governance

14 Performance

14 Supplier self-assessments Human rights are central to the Anglo American Code of Conduct which, together with our Human Rights Policy, affirms our commitment to the eradication of all forms of modern slavery.

Responsible Sourcing Standard and Supplier self-assessments Programme In terms of identifying suppliers that have an increased The risk of modern slavery associated with our potential for sustainability risk, we use a heat map that business lies largely in our relationships with suppliers. considers potential risks to people, the environment and The Anglo American Responsible Sourcing Standard society resulting from the type of goods or services for Suppliers (the Standard) and responsible sourcing supplied. strategy are the primary mechanisms through which we manage human rights risks in our supply chain. While the heat map provides a reasonable foundation, we supplement the group requested to complete self- As a condition of working with our business, assessment questionnaires (SAQs) with suppliers that suppliers must comply at a minimum with all relevant provide balance in terms of categories and geographies laws, industry regulations, and we expect them to meet covered, as well as the proportion of supplier expenditure. the Anglo American policies, site requirements and other supply conditions, including the Standard. The Standard Supply chain personnel are requested to identify covers performance requirements across the themes of additional suppliers for due diligence, which health and safety, environmental protection, labour and be informed by procurement events or as part of human rights, social impact management, and business a routine risk review. integrity. Despite challenges brought about by the Covid-19 In terms of process, suppliers must commit during registration outbreak, we received 432 supplier SAQs (2019: 452). to compliance with the law and the Standard; agree to a Collectively, this amounts to 1,036 SAQs received over series of external checks; complete and regularly update the past 30 months and represents more than 85% of an online self-assessment questionnaire; make themselves all suppliers identified in high and medium-high risk available for third-party on-site assessments; and address categories of spend. These supplier self-assessments any non-compliances that these processes might identify. confirmed that our large-spend, multinational suppliers typically have established practices to manage the key Anglo American assumes or subsidises many of the costs sustainability risks and that contractors demonstrated associated with the latter processes in order to build an compliance with relevant legal and site requirements. inclusive supply chain, while reducing compliance costs that can be prohibitive for small suppliers and/or those located in emerging economies.

1 Anglo American Modern Slavery Act Statement Looking forward

In 2021, we will continue to promote responsible supply chain management across our operations; in particular, by:

- Continuing to advance the level of integration of risk assessments into identifying new/emerging sustainability risks in existing suppliers, including potential integration of real-time data. Third-party assessments - Enhancing the visibility of our supply chain through Owing to movement restrictions, we were only able to supplier traceability programmes. conduct three (2019: 43) third-party on-site assessments. The major issue identified during the assessments related - Maintaining and building on our commitment to to violations of working-hours regulations, including work supplier capacity development, by creating materials conducted on rest days. Suppliers were provided with and focused mentorship programmes to support the corrective action plans which are being monitored. meeting of requirements.

- Working towards achieving our Sustainable Mining Plan goals, especially those that were extended to 2021 owing to Covid-19 and ensuring our value chain supports and reinforces positive human rights and sustainability outcomes.

- Obtaining responsible mine certification, carrying out third-party audits against recognised responsible mine Incidents certification systems for half of our operations in 2021 (a 2020 goal that was deferred owing to Covid-19). During 2020, none of the 614 alerts received on our YourVoice whistleblowing platform related to modern - Fully implementing our Responsible Sourcing Standard, slavery or human trafficking within Anglo American or while advocating for the development of a common our supply chain. No incidents were identified through responsible sourcing standard for the mining industry. SAQs or on-site assessments or reported through other mechanisms.

Capacity building and training

In 2020, we continued supplier capacity-building initiatives aimed at our small and medium sized (SME) suppliers. In total, 542 SME representatives attended the sessions, which included three modules focused on human rights and modern slavery.

Internally, we delivered virtual human rights and modern slavery training in English, Spanish and Portuguese to nearly 600 supply chain personnel.

2 Anglo American Modern Slavery Act Statement Anglo American is a leading global mining company, with a world class portfolio of mining and processing operations and undeveloped resources, with more than 95,000 people working for us around the world, in 15 countries.

We provide many of the essential metals and minerals that are fundamental to the transition to a low carbon economy and enabling a cleaner, greener, more sustainable world, as well as meeting the growing consumer-driven demands of the world’s developed and maturing economies. And we do so in a way that not only generates sustainable returns for our shareholders, but that also strives to make a real and lasting positive contribution to society as a whole.

Purpose to Value Guided by our Purpose – re-imagining mining to improve people’s lives – our strategy is to secure, develop and operate a portfolio of high quality, long life resource assets. We then apply innovative practices and technologies in the hands of our world class people to deliver sustainable value for all our stakeholders.

Our Values Anglo American’s Values and behaviours are at the heart of everything we do. Guided by our Purpose and our Values, we enable high performance and purposeful action. Our Values, and the way in which we, as individuals, are expected to behave, are the foundation of our Code of Conduct.

Safety Care and Integrity Respect

Accountability Collaboration Innovation

3 Anglo American Modern Slavery Act Statement In accordance with the UK Government guidance, Anglo American has produced a Group statement that these entities can also use to meet section 54 of the Act.

These entities are:

This statement provides an update on Anglo American’s progress on implementing the transparency requirements of the UK Modern Slavery Act 2015 (the Act) during 2020 and our plans for further enhancements in coming years.

This statement is made by Anglo American plc, the holding company of the Anglo American Group of companies and its relevant subsidiaries and managed Each of the above entities has approved this statement. A separate joint ventures (the Group), statement is being made by De Beers plc and its relevant subsidiaries in accordance with section and managed joint ventures pursuant to section 54 of the Act. 54 of the Act. This statement does not include Anglo American Woodsmith Limited (formerly, Sirius Minerals Plc), the acquisition of which was completed in 2020, because it does not meet the reporting threshold.

Our Metallurgical Coal business which operates in Australia will publish their first Modern Slavery Statement in 2021 as required by the Australian Modern Slavery Act (2018).

In publishing this statement, we reaffirm our commitment to combat all forms of modern slavery in our organisation and in our supply chains. We are pleased to take this opportunity to outline our ongoing work in this important area of human rights.

Our Strategies

Portfolio People Innovation

The quality and long life of Our people are critical to Across every aspect of our our mineral assets are the all that we do: we create business, we are thinking foundations of our global working environments and innovatively about how we business. an inclusive and diverse work to ensure the safety of culture that encourages our people, enhance our We actively manage our and supports high sustainability performance, asset portfolio to improve its performance and and deliver industry-leading overall competitive position, innovative thinking. margins and returns. We are providing products that developing a replicable increasingly support a The partnerships we build, model of differentiated fast-growing population both within Anglo American practices and capabilities and a cleaner, greener, and with our stakeholders that is designed to deliver more sustainable world. – locally and globally – superior value to all our are central to maintaining stakeholders from assets our regulatory and social that are in our hands. licences to operate and our sustained commercial success.

Our global footprint is illustrated in the map below:

METALLURGICAL COAL PLATINUM GROUP METALS DIAMONDS THERMAL COAL IRON ORE COPPER NICKEL AND MANGANESE

1 FINLAND

UNITED KINGDOM

SHANGHAI

1 SINGAPORE 1 1 2 1 1 2 5 3 1 2 5 6 1 AUSTRALIA 2

SOUTH AFRICA

4 Anglo American Modern Slavery Act Statement Working conditions on a continuum -from human trafficking to decent work

Forced labour Modern Slavery

Human rights Severe violation of human rights - work is done involuntarily and illegally and labour by severely exploited individuals rights violations

Severe What this looks like exploitation and human • Retention of original identification documentation or travel papers trafficking • Deceptive recruitment practices • Use of exploitative child labour • Workers cannot cease work due to threats, concern or deception • Physical or sexual or violence or harm to workers • Workers deprived of personal freedoms and movement e.g. locked in premises • Workforce include severely exploited individuals e.g. victims of human • trafficking, kidnapping, indenture and debt bondage

Exploitative and illegal working conditions

Desperate and vulnerable workers are deliberately exploited –unethical management practices and workplace conditions in violation of legal requirements

What this looks like

• Threats of reprisals e.g. redundancy without pay for raising concerns • Lodging "deposits" or similar as a condition of employment • Verbal abuse, threats, harassment, bullying or any other forms of intimidation • Late or unfair payment e.g. unauthorised deductions or the diversion of legally • mandated benefits • Excessive work hours • Unreasonable pay (below minimum wage) and irregular working conditions • Unsafe work conditions including negligent acts or omissions which may result • • in serious injury or death

Sub-standard working conditions

While workplaces comply with minimum legal requirements - workers feel 'trapped' with limited advancement opportunities

What this looks like:

• Workers are aware of the type of work they are recruited • Relatively hard conditions and low wages (within the limits of minimum wage) • Little to no improvement of workplace or safety conditions

Decent work Free Workers A safe, respectful workplace where the dignity and rights of workers are Working respected conditions in line with What this looks like: international standards, ILO conventions • Respect for workers rights. and national • Workers can refuse or cease work with no consequence legislation • Fair and timely payment of wages • Safe work conditions Decent • Working conditions in line with international standards, ILO conventions and Workers national legislation • Workers have access to mechanisms to uphold rights and report grievances

5 Anglo American Modern Slavery Act Statement About our supply chain Supply chain activities at Anglo American include the provision of goods, labour and services to support the exploration, mining, transportation, aggregation, processing and technology development required for our business. ‘Suppliers’, therefore, refers to all providers of goods and services to Anglo American and its subsidiaries and includes agents, trader partners, contractors, consultants and other forms of intermediaries.

In 2020, we procured more than $10 billion of goods and services from in excess of 18,000 suppliers. Approximately 70% of our global supply chain expenditure is distributed across the categories of mining services, facilities management, information technology, mining equipment, construction, mining commodities, processing, and professional services.

POTENTIAL DRIVERS OF RISK The table on the RISKLEVEL CATEGORY HUMAN COMMUNITY BUSINESS SAFETY ENVIRONMENT right provides an & LABOUR IMPACT INTEGRITY example of how Road Transport various supply

categories are Construction mapped for HIGH Materials

likelihood of risk Construction using a heatmap. Services Anglo American’s Load and Haul approach to Services

mitigating supply Contract Mining chain risk is addressed in the Feeder, Screens & following sections. MEDIUMCyclones

Bulk Chemicals - Reagents and Frothers

Mine Ventilation

MODERATEMaintenance Services

Site Rehabilitation

Drilling Services HIGH Rail Transport

MEDIUM LOW Medical Services LOW Consulting

6 Anglo American Modern Slavery Act Statement Modern slavery risk

The majority of Anglo American operations are concentrated in the Southern Hemisphere. More than 90% of our supplier expenditure is distributed in operating countries such as (28%), Australia (24%), Chile (13%), Peru (10%), the UK (6%) and Brazil (5%), with less than 1% in China. Most of these countries fall into a medium risk-level rating for modern slavery.

Most of these countries fall into a medium risk-level rating for modern slavery.

While most operations target forms of host community or other preferential procurement initiatives, a significant portion of in-country expenditure includes multinational suppliers, their subsidiaries or distributors for items. These multinational suppliers are typically lower risk as they are listed on stock exchanges, have extensive public commitments to eradicate modern slavery and often operate in jurisdictions where they are subject to mandatory reporting.

Modern slavery risk map

No. of people living in modern slavery (per 1.000 population) 100 and more 10.00- 99.99 5.00- 4.99 Less than 1.00 Not ranked

Source: https://www.globalslaveryindex.org/2018/data/maps/#prevalence

7 Anglo American Modern Slavery Act Statement Our Sustainable Mining Plan As societal expectations continue to evolve, so mining must play its part to address the environmental challenges of a carbon-constrained world and society’s wider expectations of us as enablers of change, while we continue to meet the ever-growing demand for our products.

Our far-reaching and ambitious Sustainable Mining Plan is designed to tackle many of these challenges, both environmental and social, and we are making encouraging progress in changing how our employees and stakeholders experience Anglo American, in line with our Purpose.

Launched in 2018 as part of FutureSmart Mining™, the Plan is built around three major areas or Global Sustainability Pillars, which are aligned to the UN’s Sustainable Development Goals:

Maintaining a healthy environment Building thriving communities Developing trust as a corporate that uses less water and delivers with better health, education and leader, providing ethical value net-positive biodiversity outcomes, levels of employment. chains, policy advocacy and ultimately moving us closer to our improved accountability. vision of a carbon-neutral mine.

8 Anglo American Modern Slavery Act Statement Our supply chain and modern slavery risk To achieve our mine certification goal, Anglo American has adopted the Standard of the Initiative for Responsible Mining Assurance (IRMA) For each of the Global Sustainability Pillars we in addition to our longstanding commitment to the committed to a set of stretch goals. One of the three Responsible Jewellery Council’s Code of Practice goals in the Trusted Corporate Leader pillar relates to for our De Beers sites. ethical value chains. Our vision is to be part of a value chain that supports and reinforces positive human IRMA offers third-party verification and rights and sustainability outcomes through mine certification against a comprehensive standard certification and responsible sourcing. for all mined metals. Our global roll-out of IRMA, which commenced in 2020, marks the of a decade-long journey for Anglo American and many others.

IRMA’s Standard was developed through a public Mine certification consultation process with more than 100 different individuals and organisations, including mining companies, customers and downstream users of mined products, NGOs, labour unions and

2021: communities. Half of operations to undergo third-party audits against recognised responsible mine-certification systems.

2025: All operations to undergo third-party audits against recognised responsible mine-certification systems.

Responsible sourcing 2021: Responsible sourcing standard fully implemented. Advocate for the development of a common responsible sourcing standard for the mining industry.

9 Anglo American Modern Slavery Act Statement Human rights In 2020, we carried out a review of all the other policies and procedures that collectively support human rights due Respect for human rights is central to the Anglo American diligence with the view of identifying gaps and strengthening Code of Conduct and further detailed in the Human Rights our approach. The review covered the salient human rights policy. The policy is aligned with the United Nations Guiding themes of labour, social impact, security, safety, health and Principles on Business and Human Rights (UNGPs), the environment, and supply chain, as well as key business Global Compact Principles and the Voluntary Principles on relationships that arise from acquisitions and disposals, Security and Human Rights (VPs). The Responsible Sourcing joint ventures, and marketing activities. It also included an Standard for Suppliers is the primary mechanism through assessment of the extent to which human rights risks are which we extend our human rights standards into our supply integrated into the Group Integrated Risk Management chain. Policy and Operational Risk Standards. Action plans are being put in place to strengthen our approach to due diligence based on the findings of the review.

Responsible supply chain management

Our commitment to Responsible Sourcing prioritises ethical decision-making when purchasing goods and services.

Responsible sourcing pathway

Responsible supply chain management is led by our responsible sourcing strategy, which is an integral part of delivering on the Group’s five-year human rights action plan. Our responsible sourcing strategy consists of four focus areas:

1. Progressive standards 2. Raise awareness and 3. Risk-based due diligence: 4. Influence industry and policies: build capacity: alignment: Implement our Responsible Provide simple guidance Support suppliers to Sourcing Programme by Work within the extractives to suppliers on our manage sustainability risk identifying suppliers with sector through industry non-negotiable through raising awareness heightened risk potential. associations in South Africa requirements that go and building capacity. Due diligence currently and Australia to promote beyond compliance. includes procurement common responsible 2023 Ambition: Lead checks, self-assessment sourcing requirements. 2023 Ambition: Attain innovative and scalable questionnaires and/or best-in-class standards capacity-development participation in third-party 2023 Ambition: that provide unambiguous programmes which support on-site assessments. Promote principles of guidance and support supplier inclusion. Build on mutual recognition which disclosure requirements. tailored programmes which 2023 Ambition: Deliver could reduce the duplication we have piloted and meaningful, streamlined due of effort, complexity and cost developed, seeking to diligence which proactively of due diligence. deliver these digitally across identifies potential all where we sustainability risk. . operate.

10 Anglo American Modern Slavery Act Statement Responsible Sourcing Standard for Suppliers

Our Responsible Sourcing Standard for Suppliers, which is available in English, Spanish, Portuguese and Chinese, comprises five pillars relating to:

1. Protecting safety and health 4. Contribution to thriving communities

2. Protecting our environment 5. Conducting business fairly and with integrity

3. Respecting labour and human rights

Checks during supplier onboarding and contracting

Supplier registration and Risk heat map Nomination of suppliers for Enhancing due diligence onboarding due diligence with third-party information Our risk heat map sources Our supplier onboarding integrates numerous While the heat map provides process requires suppliers factors, including a reasonable foundation, We use third-party risk to agree to Anglo American categories of supply with sometimes suppliers who information about suppliers policies, responsible heightened responsible pose potential for risk may be in order to supplement our sourcing and other sourcing risk potential (such de-prioritised when supplier own risk assessments. This requirements as a condition as human rights violations), -specific filters are applied may include information of registration. These are country of origin, the degree strictly (for example, suppliers checks against public accompanied by checks, of regulation within certain located in low-risk territories databases and adverse which typically include industries, and the extent or with low levels of media on issues, including regulatory and compliance to which the goods or expenditure). child labour, modern slavery -related verifications, services are reliant on and human rights. security-related validations manual labour. Supply chain personnel and third-party-provided are requested to identify ‘adverse media’ Through tools such as additional suppliers for screenings. We regularly the heat map, we classify due diligence, which may review and update supplier suppliers by degree of be informed by procurement contract templates and potential risk, which informs events oras part of a routine other legal instruments to the initial list of suppliers for risk review. include core responsible recommended for further sourcing requirements. due diligence. Our internal training programmes support supply That list is supplemented chain teams to identify with additional suppliers to potential forced labour provide balance in terms of and modern slavery risks the categories and potential sustainability risk. . geographies covered, as well as the proportion of supplier expenditure.

11 Anglo American Modern Slavery Act Statement Transparency of responsible Internal accountability to Reducing the cost of compliance sourcing materials commitments for suppliers

Several resources are available Our commitments to Future Robust due diligence on the Anglo American website to Smart Mining™, Anglo American’s programmes typically require improve visibility of our minimum technological innovation extensive financial investment legal and responsible sourcing programme, require us to work by suppliers. This could include requirements. In addition to the towards, and report progress on, administrative costs, and access Standard, resources include a a series of ambitious medium- to databases, systems, audit summary video for suppliers, the and long-term sustainability resources and management self-assessment questionnaire -related goals. consultants. Anglo American and frequently asked questions assumes or subsidises many (FAQs) which detail procedures Monthly responsible sourcing of these costs in order to build and requirements. updates are included in the an inclusive supply chain, while global supply chain score card, reducing compliance costs that and in the score cards of our can be prohibitive for small technical director and chief suppliers and/or those located executive on a quarterly basis. in emerging economies.

For example:

Anglo American assumes the cost of building and Anglo American covers the cost of third-party maintaining the platform that our suppliers use rather assessments for many suppliers especially in than mandating a subscription-based platform. categories with high-risk potential.

We fund the costs of desktop-based verification and are Suppliers, their employees or other persons wishing to piloting novel approaches to streamline our approach. raise concerns are encouraged to use our confidential YourVoice whistleblowing mechanism.

12 Anglo American Modern Slavery Act Statement Governance

The Sustainability Committee holds accountability, on behalf of the Board, for overseeing how Anglo American manages its most material sustainability matters.

How we measure up to our role in society (including: community relations; socio-economic development; ethical value chain; responsible supply chain; our total economic contribution; business conduct and ethics; and human rights) is one of our top seven most material matters.

As -cutting issues, human rights and modern slavery are managed collectively between several parts of the business including Human Resources, Corporate Relations and the Technical and Sustainability function. On a practical level, our modern slavery commitments and plans are driven by a multi-disciplinary working group.

Changing requirements for large-value contracts Increasingly, large-value contracts taken to the Group Management Committee and the Board require evidence of supplier engagement, due diligence, and as applicable sustainability -related risk improvement plans as a pre-condition of approval.

A notable example of this was within our Platinum Group Metals business unit where, from the second half of 2020, eight high-expenditure contracts required key performance data for responsible sourcing performance for current and planned suppliers, including risk-mitigation plans and agreement to assessment and other due diligence as a pre-condition to award.

13 Anglo American Modern Slavery Act Statement Supplier Incidents and self-assessments whistleblowing

Despite challenges brought about by the Covid-19 YourVoice is our confidential reporting service outbreak, we maintained focus and continued to for employees, contractors, suppliers and other engage with suppliers, eventually receiving 432 stakeholders, using a reporting platform provided supplier SAQs (2019: 452). Collectively, this amounts by an independent multilingual whistleblowing to 1,036 SAQs received over the past 30 months and service provider. It enables stakeholders to raise represents more than 85% of all suppliers identified in concerns about potentially unethical, unlawful or high and medium-high risk categories of spend. unsafe conduct or practices that conflict with our Values and Code of Conduct. As in previous years, the 2020 sample provided a balanced view of risk by including multinational During 2020, there were 614 alerts received on our suppliers, on-site contractors, security-services YourVoice platform, 78% of which were closed-out providers and host-community suppliers. in 2020. Appropriate actions were taken against allegations substantiated in accordance with our These supplier self-assessments confirmed that our policies. None of the incidents raised via YourVoice large-spend, multinational suppliers typically have related to modern slavery or human trafficking, nor established practices to manage the key sustainability were any incidents identified through SAQs or risks (including those related to human rights and on-site assessments, or other reporting modern slavery). Contractors, including security mechanisms. -services providers to Anglo American sites, provided evidence to demonstrate compliance with relevant legal and site requirements, such as the VPs.

Third-party Building capacity assessments of SMEs

Owing to movement restrictions resulting from Covid-19, three (2019: 43, 2018: 42; 2017: 17) In 2020, we continued supplier capacity-building third-party on-site assessments were conducted. initiatives aimed at our small and medium sized The assessments employed a combination of (SME) suppliers. In total, 542 SME representatives methodologies, including the ELEVATE attended the sessions, which included three Responsible Sourcing Assessment, Sedex modules focused on human rights and modern Members Ethical Trade Audit (SMETA), and a slavery. See case study on page 16. dedicated condensed assessment protocol. During these assessments, the major issue In an effort to widen the reach of our supplier identified related to violations of working-hours engagement, we also worked with our Group regulations, including work conducted on rest Tax team to record a video with key compliance days. Suppliers were provided with corrective messages. The video touched on business action plans and required to provide evidence integrity, anti-money laundering and responsible of effective remediation. On-site assessments sourcing for tax-related professional service exclude business partners that participate in the providers. De Beers Best Practice Principles Assurance Programme (which is also independently verified).

14 Anglo American Modern Slavery Act Statement CASE STUDY Engaging virtually with our suppliers

When Covid-19 prevented us from running our regular including an introduction to responsible sourcing, in-person supplier training, we transitioned to a virtual understanding employment legislation, managing risk, format, to great effect. Legal requirements, customer taxation, and more. Ranging from an hour to four hours policies and requirements, and integration with large in length, they were run over three weeks by our local established companies can be a daunting experience partner, Partner Africa, a leading sustainability for small businesses. To help our suppliers understand assurance non-profit organisation. what is expected of them, especially on sustainability issues linked to Environment, Social and Governance In total, 548 people attended 36 sessions. Given the (ESG) and how to meet these, we engage with them high cost of internet data in South Africa, not to mention throughout the year. This also gives us a chance to the extreme challenges our suppliers were dealing with understand their concerns and risk factors. due to Covid-19, this result surpassed our expectations. Such positive engagement demonstrates our suppliers’ Usually, we carry out a range of in-person, face-to-face appetite to learn and the value of the training we offer, engagement activities with suppliers, typically including as these sessions supported the establishment of monthly engagement meetings with a senior supply business practices, further adding to the sustainability chain leader, quarterly one-on-one engagements, and of their businesses. ongoing ad hoc meetings where suppliers can discuss any issues or questions they might have. In response to The bite-sized nature of the modules minimised the host community requests and to further demonstrate time suppliers needed to be away from their staff and our commitment to suppliers, senior leaders also carry workplaces, making the training more accessible. Being out engagements; as an example, Kumba’s chief shorter and more focused than in-person sessions, the executive Themba Mkhwanazi meets with suppliers virtual format also enhanced engagement. Moreover, twice a year. the anonymity of the virtual setting made suppliers feel comfortable to ask some tough questions via the live To support supplier capability for responsible sourcing, chat box. in 2017 we piloted a tailored two-day classroom-based supplier development programme. This generated Following the success of this initial programme, positive supplier feedback, with more than 280 suppliers we plan to build momentum and scale-up this type of attending sessions in 2019. We had planned to take engagement with a range of suppliers across multiple 400 people through the programme in 2020. But with regions. We will further tailor supplier support based the advent of Covid-19 in-person engagement became on tracking the type of questions asked and reviewing impossible. supplier responses to the polls we conducted throughout the sessions. We wanted to ensure that our suppliers were still supported throughout the pandemic and engaged This will enable us to focus future sessions on specific with them virtually to identify the information they risks, teams or sub-sets of suppliers. The materials used needed, and opportunities to learn. We consulted with within this engagement programme will be shared in an around 60 suppliers about what would work for them open-source format, making it accessible to all. virtually in terms of timing, and topics they would like to see covered. We then developed 12 custom modules,

1 5 Anglo American Modern Slavery Act Statement Supplier registration and Risk heat map onboarding Our risk heat map Our supplier onboarding integrates numerous process requires suppliers factors, including to agree to Anglo American categories of supply with policies, responsible heightened responsible sourcing and other sourcing risk potential (such requirements as a condition as human rights violations), of registration. These are country of origin, the degree accompanied by checks, of regulation within certain which typically include industries, and the extent regulatory and compliance to which the goods or -related verifications, services are reliant on security-related validations manual labour. and third-party-provided ‘adverse media’ Through tools such as screenings. We regularly the heat map, we classify review and update supplier suppliers by degree of contract templates and potential risk, which informs other legal instruments to the initial list of suppliers for include core responsible recommended for further sourcing requirements. due diligence.

That list is supplemented with additional suppliers to provide balance in terms of the categories and geographies covered, as well as the proportion of supplier expenditure.

Covid-19 and human rights risk

Covid-19 raised many new supply chain issues for suppliers. In a clear response, we published an open letter to our suppliers and updated our FAQs guide, setting out five top-level guiding steps to help them identify the new types of risk being reported generally through supply chains as a result of the pandemic.

Our open letter to suppliers and our FAQ guide can be accessed through our responsible sourcing portal: https://www.angloamerican.com/suppliers/responsible -sourcing.

The guiding steps addressed issues such as the physical and mental health of employees, the right to privacy and non-discrimination, the potential for wage and overtime violations, restrictions on mechanisms to address worker rights, the increased likelihood of child and forced labour, and workplace exploitation and harassment.

This was highlighted as a best-practice case study by the Minerals Council of Australia in its ‘Guidance on Modern Slavery risk during COVID-19’, which can be accessed using the following link: https://minerals.org.au/news/respecting-human-rights

Internal training and awareness

In 2020, we delivered virtual human rights and modern slavery training in English, Spanish and Portuguese to nearly 600 supply chain personnel.

We also raise awareness through internal channels such as new employee induction and various working groups.

16 Anglo American Modern Slavery Act Statement To meet the ethical value chain goals set out in our Sustainable Mining Plan, the Group takes part in several global forums, such as the Responsible Sourcing Working Group and other initiatives belonging to the International Council for Mining and Metals (ICMM). Our work with these bodies involves benchmarking activities being undertaken by peers and other industries, governments and community groups.

Australia

The Australian Modern Slavery Act provides us with an opportunity to collaborate with other companies within the mining, energy and resource sectors to develop a common supplier-assessment question set and guidance tools, in compliance with applicable legislation. In 2019, an agreement in this regard was reached with 10 companies, and a subsequent external statement was published expressing a commitment to eradicate modern slavery.

Through 2020, we partnered with the Minerals Council of Australia, participating in and hosting modern slavery roundtables and other events.

South Africa

In South Africa, we have continued engagement with the Minerals Council of South Africa, which has been coordinating a consistent industry approach to setting standards for suppliers and facilitating the sharing of certain non-sensitive supplier information, in compliance with applicable legislation. Work on this approach will continue through to 2023.

United Kingdom As part of the UN Global Compact’s Modern Slavery Working Group, we participated in an annual peer review of our Modern Slavery Statement. This exercise included a process of benchmarking and the sharing of best practices with several UK-based companies in the utilities and retail sectors.

Our involvement in the UN Global Compact’s Modern Slavery Working Group also allows us to learn and share best practice as relates to decreasing potential modern slavery risks in our supply chain.

17 Anglo American Modern Slavery Act Statement Our focus is on education and collaboration, both internally and externally, to drive awareness of modern slavery risks within global supply chains. This includes being an advocate for change within the resource industry and leveraging others’ good practice to improve our own approach. We believe that collaborative efforts with our partners and suppliers will improve transparency, due diligence and promote collective global initiatives and best practices against modern slavery and trafficking.

The table below outlines key activities and progress towards some of the plans since 2018. This has supported our supply chain team to prioritise and mature delivery elements while highlighting areas for improvement.

Low 1 2 3 4 5 High 2018 2019 2020 2021

Standards and policies

Update external Standard(s) and supporting materials 5 5 5 5

Review and develop materials to support consistent implementation of the 5 Responsible Sourcing Programme 1 5 5

Performance and supplier due diligence

Enhance supplier due-diligence processes – including mandatory checks and 2 3 4 5 review of registration and onboarding processes

Roll-out contract and purchase order terms, which have clear requirements to 5 5 5 5 combat modern slavery

Map potential sustainability risk across procured goods and services – prioritising 2 2 3 4 suppliers for enhanced due diligence

Identify and engage suppliers for self-assessment questionnaires (SAQs) to 5 5 5 5 support risk identification

Commission and subsidise costs towards third-party on-site assessments where 5 5 5 5 higher potential for risk may be suspected

Work with suppliers to monitor corrective plan and risk close-out 2 3 4 4

Awareness and training

Suppliers

Publish supplier-guidance materials – ensuring that these are available to a broad set of suppliers 3 4 5 5

Identify, develop and scale capacity-building programmes for vulnerable supplier 5 5 5 5 groups; e.g. small- and medium-sized suppliers

Engage large suppliers and original equipment manufacturers (OEMs) to build 5 4 3 5 partnerships to combat modern slavery

Internally

Train internal teams and relevant business unit stakeholders on modern slavery, 4 4 4 5 forced labour and human rights

Introduce tools and technologies to enable self-learning 1 1 2 2

Partnerships and engagement

Work within the Minerals Councils in South Africa and Australia towards industry positions with regards to human rights and responsible sourcing 2 2 2 3

Participate in annual Group-level human rights due-diligence process 5 5 5 1

Conduct annual peer benchmark of our activities and Modern Slavery Act (MSA) 4 5 5 5 statement

Identify and work with appropriate industry-wide forums which promote mutual recognition and advocacy goals 2 2 2 3

18 Anglo American Modern Slavery Act Statement References to Anglo American

In this statement, references to “Anglo American”, the “Anglo American Group”, the “Group”, “we”, “us”, and “our” are used to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity or person. The use of those generic terms in this statement is for convenience only and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. The Anglo American Group comprises separate legal entities. “Subsidiaries” are entities over which the Anglo American Group directly or indirectly is able to exercise control, and entities over which the Anglo American Group has joint control are referred to as “joint ventures”. “Managed joint ventures” are entities where a member of the Anglo American Group has management control or an ability to direct day-to-day activities. This statement covers Anglo American plc, its subsidiaries and its managed joint ventures; it does not include independently managed operations or cover non-managed joint ventures. Anglo American produces Group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day-to-day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, training, oversight and monitoring within their specific businesses, including any applicable local-grievance mechanisms.

Anglo American Modern Slavery Act Statement