Report 2019 Cerrejón's Sustainability Report 2019
Total Page：16
File Type：pdf, Size：1020Kb
CERREJÓN'S SUSTAINABILITY REPORT 2019 CERREJÓN'S SUSTAINABILITY REPORT 2019 SUSTAINABILITY REPORT 2019 3 ABOUT THIS REPORT “Our 2019 Sustainability Report is a reflection of our GUIDELINES. The Global Reporting Initiative (GRI) commitment to transparency and accountability with all standards, Core option. our audiences. This is the fifteenth report we have presented since we subscribed to the United Nations SCOPE. This report documents the management of the Global Compact initiative in 2005. This document presents companies Carbones del Cerrejón Limited (a 100% our main results and challenges in ten principles related to privately owned foreign company domiciled in Anguilla, human rights, labour standards, the environment, and British West Indies) and Cerrejón Zona Norte S.A. (a anti-corruption practices”. 100% privately owned Colombian limited liability company Claudia Bejarano, CEO (i) of Cerrejón. domiciled in Bogotá) (both hereinafter Cerrejón). PERIOD. January 1 to December 31 of 2019. VERSION. This report is the fifteenth that we have submitted yearly without interruption since 2005 as part of our commitment to the United Nations Global Compact. ASSEMBLY. Cerrejón Communications Division. DESIGN: TBWA. HEADQUARTERS AND CONTACT Albania, La Guajira 57 5 350 5555 Bogotá D.C. Calle 100 no. 19 – 54 Edificio Prime Tower 57 1 5955555 [email protected] www.cerrejon.com Any changes in the company or our supply chain as well as any alterations in how the information is presented compared to the 2018 report will be detailed in each of the corresponding topic areas. SUSTAINABILITY REPORT 2019 5 CAPÍTULOINDEX ABOUT THIS REPORT 01 5 A LOOK TO CERREJÓN 8 Management Report 10 OUR COMPANY 16 Our Operation 18 Corporate Governance 20 Stakeholders Engagement 24 Materiality 26 OUR PRIORITIES 28 Talent Management 30 Health and Safety 36 Human Rights 38 Communities 42 Resettlements 44 Sustainability Strategy 46 Water in the Operation 48 Air Quality 50 Biodiversity 52 Waste Management 54 Energy Efficiency 56 FINANCIAL RESULTS 58 Economic Performance 60 Supply Chain 62 OPERATIONS CLOSURE 64 Operations Closure 66 GRI INDICATORS 68 Table of Contents GRI 70 SUSTAINABILITY REPORT 2019 7 CHAPTER 01 A LOOK TO CERREJÓN SUSTAINABILITY REPORT 2019 9 MANAGEMENT REPORT In recent years, those of us who work in the coal sector COAL MARKET have become used to constantly re-inventing ourselves to It is important to note that coal is going to be part of the adapt to new realities: changes in our engagement with our global energy matrix for many years. According to data from different stakeholder groups, more restrictive policies to the International Energy Agency (IEA), coal is responsible for curb climate change, an ever-shrinking market, dropping 38% of global electrical power generation. Around 2050 it photo COURTESY OF JOSÉ JAIME VEGA prices, and legal uncertainty. At Cerrejón, these challenges will still account for about 20% of this matrix. allow us to constantly draw the best from our team in the search for solutions and new opportunities. Nonetheless, we are aware of the fact of climate change and of the need for humanity to change its way of understanding CONTRIBUTIONS TO LA GUAJIRA 92% OF OUR WORKERS The above has led us to review each one of our activities the world and to concretely respond to this challenge. We AND COLOMBIA ARE FROM LA GUAJIRA OR THE using a transformational approach allowing us to adapt to know that policies against this phenomenon are increasingly In 2019, Colombian coal maintained its position as the all these changes so that Cerrejón continues to be a restrictive for technologies based on coal consumption. We second-ranked national export product, putting Colombia CARIBBEAN COAST sustainable business that can continue to positively have already seen this in some countries, especially at an 8% share of the global market. Thanks to our work, contribute (and for many more years) to the lives of our European ones, to which Cerrejón has traditionally exported in 2019 we provided Colombia with USD 534 million in These close ties between La Guajira and the Caribbean employees, contractors, communities, La Guajira, and the but that are no longer our main market. That position is now taxes and royalties, which represents 0.65% of the yearly have led us to develop long-term programs with our country as a whole. occupied by the Mediterranean, where Turkey now accounts national budget. In fact, Cerrejón’s royalties are 23% of people, which has become a direct benefit for the region. for the majority of our sales. the total provided by the mining sector in 2019. In 2019, either directly or through the Cerrejón As part of this contribution, I would like to begin by Foundation, we invested over USD 3.8 million in various highlighting the excellent results in safety and health by our Together with a shrinking market, we also have coal prices These numbers are relevant on the national level, but at social programs, such as skills strengthening for different employees and contractors. I am pleased to report that, in that fell in 2019 to levels we had not seen for many years. In the department level, the mining sector (of which Cerrejón regional organizations or improving access to water in our 2019, in addition to zero fatalities, our recordable injury December of 2018, the FOB price in Puerto Bolívar was just weighs in most heavily) provides La Guajira with an communities (especially in the Alta Guajira). Just in 2019, frequency rate (RIFR, calculated on the basis of 200,000 over USD 75 per tonne. The last week of December of 2019, impressive 44% of the department’s GDP. Further, of our we delivered 26.4 million litres of water to communities hours of exposure) was 0.12, which is the second-lowest the price had dropped to just over USD 42 per tonne, and 5,896 direct workers (as of December 2019), 66% are neighbouring our operations, and this figure rises to over accident rate in Cerrejón's history. this downward trend has continued in the first months of originally from La Guajira and another 26% are from other 153 million litres of water when we include the period 2020, falling to under USD 35 per tonne. departments on the Caribbean coast. Amongst our since the drought struck the department in 2014. contractors, those percentages are 52% and 40%, Due to these factors and some others (such as the respectively. Education is also an important component of the work we IN 2019, WE HAD THE impossibility of accessing certain areas due to legal rulings), have been carrying out in the department for several our exports were 26.3 million tonnes compared to 30.5 SECOND-LOWEST ACCIDENT RATE IN years. In 2019, the number of students we have million tonnes in 2018. Hence the importance of extracting CERREJÓN’S HISTORY supported in their academic programs through key reserves (such as those in the northern section of the La scholarships and educational aids reached 17,000. This Puente Pit) due to their quality and ease of access. knowledge will become a benefit for the region. SUSTAINABILITY REPORT 2019 11 The most relevant aspect of our social work lies in the community of Tamaquito II as an indigenous reservation. This conversations and dialogues held with communities, their community has become a model in the department as it is ENVIRONMENTALLY RESPONSIBLE leaders, and with local organizations and authorities. Last the first of its kind to have its own treatment plant operated Mining and the environment can in fact be compatible, year, solely as part of our Comprehensive Environmental by the community itself, providing access to drinking water and proof of this statement is how Cerrejón operates Management Plan, we organized more than 225 occasions and basic sanitation for the 46 families residing therein. responsibly. In recent years, we have not only carried out for dialogue with ethnic communities and over 50 occasions offset and rehabilitation activities, we have also for dialogue with non-ethnic communities in La Guajira. In addition, I cannot fail to mention two projects that arose progressed enormously in our capacity to improve water These instances saw agreements reached and the execution from conversations with local authorities. The first is the and air quality. of initiatives for contributions to development and the expansion of the Riohacha water treatment plant. This handling of social, cultural, and human rights impacts. initiative was carried out under the Works for Taxes As part of our reforestation and rehabilitation programs, in water, and everyday we strive to improve our mechanism (promoted by the central government); it was 2019 we planted 273,000 trees and rehabilitated 309 performance. Consequently, in 2019, 89% of the water This dialogue allows for two-way exchanges of knowledge. executed at the end of 2019 and increased drinking water hectares. These acts have allowed Cerrejón to reach a we used was mining water (not apt for human or animal Therefore, we organized 47 visits for 1,355 people to learn production by 100 litres per second for the Guajiran capital. milestone of 4,208 hectares rehabilitated and 1.8 million consumption nor for irrigation) that we harvest from about Cerrejón's operations and the safety and the trees planted (with over 40 different native species) in rainfall runoff or from coal seam dewatering. Only 11% operational and environmental integrity conditions we The second item was an agreement signed to improve the zones previously dedicated to rehabilitated. However, the of our water is fresh, and it is used for consumption by implement. These visits have strengthened the mining sector existing a road from Uribia to Puerto Bolívar to increase success of these programs is measured not just in terms our workers and for delivery to our communities.