WE’RE ABOUT RESPONSIBILITY Responsible Business Report 2018 Foreword
CONTENTS WELCOME... Highlights and achievements 2 A year of progress 4 TO OUR RESPONSIBLE Responsible Business 6 BUSINESS REPORT Community 8 Environment 16 Our people 24 P8 Measuring our performance 28 FIND OUT MORE ABOUT OUR WORK IN THE COMMUNITY Supporting the UN Sustainable We are located in one of the most beautiful Our education outreach programme Development Goals 29 parts of the UK and recognise that with this continues to go from strength to strength privilege comes responsibility: a duty to with a particular focus on working with ensure that our operations enhance the area, disadvantaged young people in the area. rather than detract from it; bring economic It was great to launch our engineering benefits to the wider area’s residents; and apprenticeship programme in November contribute to solving a problem that has a 2018, which will see us take on 50 truly global scale – how to produce more apprentices over the next four years. food to feed the world’s growing population I have also been proud to see the Sirius in a way that is more sustainable. Minerals Foundation fund and deliver a Responsibility is something we at Sirius whole host of projects which have benefited embrace wholeheartedly – indeed, it is a wide range local people and community one of our core values. We expect everyone groups over the last year. involved with the Company, from the Board We continue to minimise environmental and staff to the wider contractor team, to impacts during construction and are pleased act with accountability and integrity. to have found ways to further reduce impacts As the Chief Executive Officer, I am beyond the minimum requirements of our responsible for the implementation of planning consent. As part of our planning our strategy to become a world-class commitments, we provided significant funding fertilizer business and make a significant towards environmental projects to safeguard and sustainable contribution to global and enhance the environment, which last year food security. included the planting of 40,000 trees in the I firmly believe that the Company’s North York Moors National Park. success in delivering this vision will Through our global research and CHRIS FRASER be achieved by supporting our team development programme, we continue to Managing Director and CEO and keeping them safe, protecting the demonstrate the positive effects that our environment, engaging with the community product – POLY4 – can have on crop yield and benefiting the local area. Underpinned and quality, as well as reinforce its by good governance, our three pillars of environmental credentials. responsibility – community, environment I hope you enjoy reading this report, which and people – inform everything we do. sets out our approach to working responsibly The past year has seen us make great and measures our performance across a progress in delivering our North Yorkshire range of targets. As always, we welcome polyhalite project (the ‘Project’), with a your feedback, so please get in touch with significant increase in construction across us if you have any questions, comments the Project’s sites. Safety is our number or ideas. one priority and I am disappointed that With best wishes, five safety incidents were reported in 2018, including one serious injury. Following detailed investigations, changes to working practices have been implemented at all sites.
Throughout 2018, we continued to make Chris Fraser a meaningful contribution to the economic CEO and social wellbeing of the area. I am P16 pleased that two-thirds of the Project’s 900-strong workforce come from the local SEE HOW WE ARE PROTECTING AND area, which far exceeds our expectations ENHANCING THE ENVIRONMENT for this stage of the Project’s development. An assessment of our economic impact, P24 summarised in this report, shows that the READ HOW WE SUPPORT AND KEEP Project contributed over £200 million to the Published 30 April 2019 OUR PEOPLE SAFE regional economy in 2018.
Sirius Minerals Plc Responsible Business Report 2018 1 Highlights and achievements
HIGHLIGHTS AND ACHIEVEMENTS
Indirect jobs Our expenditure on goods and services, as well as workers spending their wages, creates more employment opportunities. In addition to 900 direct £ m jobs, the Project has created a further GENERATED200 OVER £200 MILLION % 245 indirect jobs in the UK in 2018. IN THE ECONOMY OF YORKSHIRE 66REDUCTION IN NITROGEN 245 AND THE NORTH-EAST OXIDES (NOx) EMISSIONS INDIRECT JOBS CREATED
Supporting the regional economy
We are committed to making a meaningful contribution to the regional SUPPORTING economy. Whenever possible, we and our main contractors source goods 66% and services from businesses in the region. OF OUR WORKFORCE IS LOCAL 80 Promoting sustainable LOCAL PROJECTS Enhancing local employment agriculture 900 people work on the Project, two-thirds of 110 Our global crop science programme them coming from the local area. This is a far higher NEW CROP TRIALS STARTED demonstrates that POLY4 improves Reducing emissions Sirius Minerals Foundation number than we had anticipated for this stage of the crop yield and quality and has many In 2018, we significantly reduced the need for We have set up the Foundation as an independent charity to fund Project and was achieved by our efforts to make environmental benefits. We work diesel-generated power at Woodsmith Mine during community projects. During construction we have contributed £2 million to opportunities available to local people. with a wide range of stakeholders construction by installing mains electrical power to the Foundation. It has already awarded £0.5 million to support families and – including customers, farmers and the site. This means our NOx emissions are 66% vulnerable people, boost employability, improve community facilities and growers – to promote balanced less than the level permitted in our planning consent. enhance the environment. fertilization methods.
56 km 40,000 EDUCATION OUTREACH 50 0 30 20 TREES PLANTED EVENTS ATTENDED ENGINEERING APPRENTICES ENVIRONMENTAL INCIDENTS PUBLIC MEETINGS ATTENDED OF FOOTPATHS UPGRADED
Woodland creation Raising aspirations Apprenticeships Minimising construction Engaging the community Improving access As part of our planning consent, we are Our education outreach programme In November 2018, we launched our impact We keep local stakeholders updated as to the National Park funding 7,000 hectares of new, mixed aims to increase the skills and engineering apprenticeship programme to the Project’s progress. We maintain We continue to ensure that construction We have funded a wide range of works deciduous woodland in the North York aspirations of young people in the local to take on 50 apprentices in preparation regular contact with our closest can progress and that the environmental to improve footpaths and bridleways in Moors National Park over the next 100 area. To date, we have worked with for long-term roles with the Company. neighbours, attend parish council impacts are minimised in line with our the North York Moors National Park to years. This will help to offset our carbon 70 schools, engaging with over 20,000 Recruitment is underway to select the meetings and hold public drop-in planning conditions, as well as looking enable greater access for all. emissions, enhance the landscape of young people. In 2018, we particularly first ten apprentices, who will join us sessions and exhibitions. for opportunities to deliver further the National Park and create more focused our efforts on working with in September. enhancements where we can. diverse habitats for wildlife. groups of disadvantaged young people.
2 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 3 Introduction to Sirius Minerals plc Our Project In designing the Project, we prioritised low environmental impact, high production The polyhalite will be extracted at the capacity and low operational costs. Details new state-of-the-art Woodsmith Mine, of how we limit the environmental impact near Whitby in North Yorkshire. It will be of polyhalite extraction are provided on transported to the Wilton International site page 17. at Teesside on a high-capacity conveyor belt system in an underground tunnel known Following first polyhalite in 2021, we will build A YEAR OF PROGRESS to an initial production capacity of 10 Mtpa, as the mineral transport system (MTS). The polyhalite will then be granulated at the with the potential to achieve a full production materials handling facility (MHF) to produce capacity of 20 Mtpa. Our 1:1 mined ore to AT SIRIUS MINERALS POLY4. The majority will be exported to product ratio, together with our efficient customers around the globe from the port mineral transport system and simple facility on the River Tees. granulation process, will help us to have a low environmental impact and operating cost.
Our vision – to become a world-class fertilizer WOODSMITH MINE MTS ACCESS SHAFT MATERIALS HANDLING FACILITY TEESSIDE PORT FACILITIES business
Sirius Minerals Plc is a fertilizer development company, focused on developing the world’s largest and highest grade polyhalite resource. Our vision is to become a world-class fertilizer business that makes a significant and sustainable contribution to global food security, which is one of the most important challenges facing the world today. Our flagship project is based in North Yorkshire and is expected to reach first polyhalite in 2021. POLY4, the trademark name of our product, contains four of the six macro- 0m nutrients that are essential to plant growth in one simple and efficient fertilizer product. 250m DRIVE 3 DRIVE 2 DRIVE 1 Construction progress We have unrivalled knowledge Significant construction progress of polyhalite. Our global crop has been made during the year. The science programme continues to REDCAR MUDSTONE 500m installation of diaphragm walls, which demonstrate that POLY4 is suitable protect the foreshafts from water for widespread commercial use and bearing strata, at both the production has a wide range of positive and service shafts have been environmental characteristics. MINERAL TRANSPORT SYSTEM completed. Excavation at the service Our North Yorkshire polyhalite shaft foreshaft is now complete and project will help us to become a excavation of the production shaft world-leading producer of multi- foreshaft is well underway. nutrient fertilizer. 800m The vertical sinking machine being used to construct the MTS access shaft at Woodsmith was launched in October BUNTER SANDSTONE 2018. At Lockwood Beck, the site of the intermediate access shaft, preparatory 1050m works are well progressed. At our Wilton site the MTS portal was completed and the tunnel has since SYLVINITE 1300m been commenced. The first tunnel SALT boring machine has arrived at site and =is expected to commence mechanical 1500m tunnelling in the coming months. MINING Earthworks were commenced at our MHF site and ground investigation works Up to POLYHALITE 50 m thick 1:1 completed during the reporting period. MINED ORE TO PRODUCTION RATIO
4 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 5 Responsible Business
RESPONSIBLE BUSINESS AT SIRIUS MINERALS PLC
Responsibility is about doing the right Introducing our pillars Governance and compliance thing, in the right way. This approach has been at the heart of everything aligned with the Group’s culture, whilst management team, are responsible we have done since the launch of Our culture of responsible business ensuring the necessary controls and for the day-to-day management our North Yorkshire polyhalite project begins with strong leadership. Our Board resources are in place to achieve its of the Group, the implementation in 2011. is committed to the highest standards of corporate governance, which underpins our objectives and having regard to the views of its strategy, policies and budgets, There has been a great deal of approach to working responsibly. of shareholders and other stakeholders. and its financial performance. local interest in the Project from the As a Company incorporated in the UK and The Board has adopted a schedule of outset and we have recognised our listed on the London Stock Exchange, the matters specifically reserved for its approval. Working responsibly responsibility to positively engage Company is required to report against the This schedule details the key affairs of the Working responsibly is something the the community and ensure that we UK Corporate Governance Code (Code), Company which the Board does not Group expects of all its staff and its wider benefit the local area. As a result, COMMUNITY which has five key principles: Leadership, delegate and can be found on our website contractor team. This means having the there is widespread support for the Effectiveness, Accountability, Remuneration at siriusminerals.com. right values and policies in place, Project and it is important to maintain We will play a positive role in the local community by making a and Relations with shareholders. During 2018, The Board has delegated certain aspects embedding them in our systems and and strengthen our relationships with meaningful contribution to its social and economic wellbeing, the Company has complied in full with the of its responsibilities to five Committees, processes, and making sure our people our local stakeholders as we progress. maintaining good relationships with local stakeholders and Code, as detailed in our 2018 Annual Report. outlined below: the Audit Committee; the uphold them. The Group has six core Our approach to minimising the responding quickly to questions and concerns. Nominations Committee; the Remuneration values (Responsibility; Ownership; Belief; environmental impact of the Project Board Committee; the Disclosure Committee; and Urgency; Safety; Team) and a number has gained the trust of a broad range The Board is collectively responsible for the the Health and Safety Committee. of policies and procedures in place, of stakeholders. We are committed to READ MORE PAGE 8 long-term success of the Group, providing covering matters such as anti-bribery and safeguarding the area’s environment corruption, health and safety, conflicts of leadership of the Company and direction for Senior management team and, beyond that, will promote interest, data protection, diversity and management. The Board is responsible for The Executive Directors – the Chief sustainable agricultural practices inclusion, and HR matters which underpin establishing the Company’s strategy, values Executive Officer and Chief Financial Officer on a global scale. the way we expect our people to work. and purpose and monitoring that these are – working closely with the senior To deliver the Project in the right way we need a team of motivated and resilient people who live the Governance structure Company’s values. Our three pillars of responsibility – ENVIRONMENT Non-Executive Chairman Chief Executive Officer community, environment and people RUSSELL SCRIMSHAW The Board CHRIS FRASER – inform everything we do. We will minimise the potential adverse impacts of our construction and support environmental enhancements. In Key objective RESPONSIBLE FOR THE LONG-TERM Key objective production, we will operate a low-impact project and our • Leadership of the Board SUCCESS OF THE COMPANY • Overall performance of the Company product, POLY4, will make a significant and sustainable contribution to global food security. THOMAS STALEY NOEL HARWERTH JANE LODGE JOHN HUTTON, BARON KEITH CLARKE CBE LOUISE HARDY Finance Director Senior Independent Non-Executive HUTTON OF FURNESS Non-Executive Non-Executive and CFO Director Director Non-Executive Director Director Director READ MORE PAGE 16
AUDIT REMUNERATION NOMINATIONS HEALTH AND SAFETY DISCLOSURE COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE
Key Key Key Key Key responsibilities responsibilities responsibilities responsibilities responsibilities • Oversight of • Review and approve the • Lead the process for • Overseeing health and • Ensure the Company is effectiveness of remuneration policy and Board appointments safety strategy, plans and able to make timely internal controls the remuneration of the and accurate disclosure PEOPLE • Ensure plans are in related risk assessment in Executive Directors of required information • Risk management place for orderly the context of the overall review respectively succession to Board Our focus is to keep people safe. We will invest to strengthen business strategy the Company’s culture and enable our workforce to deliver the • Monitor integrity of • Recommend and monitor and senior financial statements the level and structure of management • Ensure compliance with Project on time and on budget. remuneration of senior • Oversee health and safety • Oversee the management relationship with the development of a responsibilities and External Auditor diverse pipeline for commitments READ MORE PAGE 24 succession
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ENGINEERING APPRENTICESHIP PROGRAMME Measuring What community means We have long recognised that Performance: for Sirius apprenticeships are an effective way to grow a local workforce and have already taken on five apprentices in office-based Direct jobs created Community means living and working roles. In November 2018, we launched our 2018: 900 (TOTAL WORKING together: it is our location, the people in it engineering apprenticeship programme ON PROJECT DECEMBER 2018) and those nearby. Our community is those to take on the first ten of a further 50 Local employment who work for us, with us, benefit from our apprentices who will join us in September TARGET: 35% OF PROJECT activities and who may be impacted by 2019. Four information events have been WORKFORCE FROM LOCAL AREA them in other ways. We are committed to held, attended by over 500 people, and 2018: 66% taking an active and positive role in the to date, almost 700 applications have local community. This means making a been received. Contribution to the meaningful contribution to the social and The four-year apprenticeship to train economy of Yorkshire economic wellbeing of the area, minimising advanced engineering technicians will be and the North-East the potentially adverse impacts of run in partnership with the Teesside- 2018: £200 MILLION construction and maintaining good based TTE Technical Institute. Apprenticeships relationships with local stakeholders The first two years of the programme will TARGET: CREATE 50 NEW APPRENTICES as our Project develops. focus on developing the apprentices’ BY 2023 knowledge of electrical, mechanical and 2018: 0 instrumentation engineering principles Education outreach and putting these into practice. During TARGET: PARTICIPATE IN the remaining two years, the apprentices 20 ACTIVITIES will undertake work-based learning. 2018: 56
Community engagement TARGET: ATTEND 20 PUBLIC MEETINGS 2018: 30
Responding to complaints 2018: 36 COMPLAINTS RECEIVED AND RESOLVED COMM UNITY
Ours is the largest private sector capital Strategic objectives investment in the north of the UK and is LOCAL EMPLOYMENT a project that is set to be operational for decades to come. We take our responsibility Our Project will create over 1,000 direct, long-term
to the people who live, work and visit the 1 jobs for highly skilled employees, with average local area very seriously. salaries that are double the regional average. Make a meaningful Throughout 2018, we have continued to As highlighted by the case studies, we have taken grow our team and, together with our contribution to the great strides over the last year towards implementing contractors, have employed hundreds of economic and social our apprenticeship programme. In addition to the local people. We have provided opportunities wellbeing of the area projects we fund at local councils to prepare people for young people through the launch of our for employment, the apprenticeship scheme will help EAST CLEVELAND TRAINING engineering apprenticeship programme, us to grow a local workforce completely aligned with AND EMPLOYMENT HUB continued to work with schools to raise our vision and responsible approach. The Hub, which is part-funded by Sirius, helps the skills and aspirations of children across 2 In the near term, we envisage a peak of 1,700 local people to identify suitable jobs and to the area and supported a wide range construction jobs with many more created across prepare for interviews and employment. It is run by of community projects via the Sirius Engage and inform local the entire construction period. Given the specialist Redcar and Cleveland Borough Council’s Routes Minerals Foundation. stakeholders, responding nature of much of the work, we had anticipated being to Employment Service and Jobcentre Plus. quickly to questions able to recruit a maximum of just over one-third of Since its launch in February 2018, the Hub the workforce locally, but are delighted to have far has registered over 500 local people for its and concerns % free service. It has provided 170 people with exceeded this number. By Christmas 2018, there were 66 OF PROJECT WORKFORCE professional training, sometimes leading to 900 people working on the Project across four sites: FROM LOCAL AREA a qualification, and found new roles for over Woodsmith Mine, Wilton, Lockwood Beck and 200 applicants with a wide range of companies, Resolution House in Scarborough. We are pleased to including Sirius and our construction contractors. report that two-thirds of the 900 are from the local area, During 2018, the Hub held careers events, defined as a one-hour commute from the Project site attended by over 400 local people, to raise of work. awareness of jobs with our Project. Our Our achievements in local employment came about construction contractors, including DMC Mining thanks to a recruitment programme featuring job Services, Strabag, Careys, together with their fairs, registration via our website and local advertising sub-contractors, have liaised with the Hub to promote job vacancies and host interviews and of jobs in conjunction with our contractors and local 900 skills assessments. employment services. JOBS CREATED IN 2018
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TRAINING WORKING WITH 2018 ECONOMIC During 2018, we continued to support services LOCAL BUSINESSES IMPACT that work to help people in the local area access training and the skills and qualifications We are committed to ensuring the significant ASSESSMENT needed for employment and career progression. supply chain opportunities generated by our Project are available to companies from the Specialist consultancy Quod has followed During the year, as part of our planning local area. up its report published last year,1 which commitments, we provided funding of £162,000 calculated the economic impact of the to the borough councils of Redcar and Cleveland Over the last year, we worked with our principal Project once it was in production, with and Scarborough. This part-funded the East contractors to hold three supply chain events an assessment of the impact the Project Cleveland Training and Employment Hub targeting businesses in the region. We continue has already had in 20182 – its first full year (see case study on page 9) as well as Scarborough to work with Local Enterprise Partnerships, of production. The new report analysed Construction Skills Village and Scarborough councils and business networks to promote workforce data and supply chain Jobmatch in North Yorkshire. opportunities with the Project and companies FRANCIS BROWN, TEESSIDE WILLIAM HARE, NORTH YORKSHIRE expenditure, provided by the Company that would like to work with us can register their With the launch of our engineering apprenticeship Stockton-based steel fabricator Francis The Scarborough branch of fabrication and our contractors, to calculate the interest in becoming suppliers via our website. programme in November last year, we stepped Brown was awarded a contract by our company William Hare Ltd was awarded a economic impact of the Project on the up delivery of our training commitments to prepare In 2018, we spent £70 million sourcing goods shaft-sinking contractor, DMC Mining multi-million-pound contract to manufacture UK economy, the region of Yorkshire and Services, to fabricate and weld 50 tonnes 3,000 tonnes of equipment. This includes the people for operational roles with the Project. As and services from businesses in Yorkshire and the North-East, as well as more locally of steel shaft lining for our Woodsmith site steel headframes for the winding gear and the well as taking on 50 apprentices over the next the North-East, helping to safeguard and to the Project area. four years, we will train 300 adults and support and Lockwood Beck. The contract will Galloways used during the excavation of the create more much-needed jobs and prosperity be fulfilled entirely at Francis Brown’s two access shafts for the 37km mineral In 2018, Sirius’ expenditure on the Project a minimum of 15 young people through our in the region. Stockton factory. transportation tunnel. The majority of the amount to £355 million. The assessment undergraduate programme which will provide work will be completed in the Company’s shows the transformative impact of this engineering students with industry experience Scarborough facility, keeping valuable skills investment, with the key highlights and a pathway into the Company. in the local area. summarised below. We also support organisations, including the North Yorkshire Skill Mill, which help people who face £200 MILLION CONTRIBUTION TO THE additional barriers to employment. REGIONAL ECONOMY SUPPORTING Gross Domestic Product (GDP) is the national measure of the UK economy. TOURISM The value of a company’s economic output and its contribution to GDP is measured We continue to support tourism, a key As part of our planning by Gross Value added (GVA). In 2018, Sirius sector for the local economy, through our commitments, we provided generated a total of £288 million in GVA, contributions to North York Moors National with £200 million generated in Yorkshire and funding of £162,000 in 2018 Park Authority and Redcar and Cleveland the North-East. to the borough councils of Council. The purpose of the funding, which in 2018 amounted to £617,000, is to Redcar and Scarborough to promote the area to potential visitors and 900 DIRECT JOBS WITH SALARIES 40% support training initiatives. improve the tourism offer. HIGHER THAN THE LOCAL AVERAGE Much of the funding has helped create an As outlined on page 9, there are 900 people integrated marketing campaign to promote the working on the Project across the four sites, North York Moors to domestic and international with 66% coming from the local area. These markets using a wide range of activities and media. are well paid jobs, with average salaries Campaigns include the 50-year celebration of the 40% higher than the average in the Cleveland Way National Trail, promotion of the boroughs of Scarborough and Redcar 2019 Dark Skies Festival and the ‘Alive with and Cleveland. Adventure’ campaign delivered by Welcome to Yorkshire. 245 INDIRECT JOBS CREATED Additionally, four projects benefited from the local Expenditure by Sirius and our contractors tourism business contribution, which is designed on goods and services, as well as workers to stimulate new tourism activity and ensure that spending their wages, creates additional any increase in visitors to the area is sustainable. employment. The assessment estimates The funded projects include improvements to that a further 245 jobs have been created in Whitby Abbey and outdoor play facilities in the the UK as a result of this, with a proportion THE SKILL MILL National Park. of this captured more locally. The Skill Mill is a North Yorkshire social enterprise that increases the skills, aspirations and confidence of 16–18 year olds by providing practical work experience. We are pleased to have contracted The Skill Mill to carry out maintenance work on community facilities around the project sites. 1. Sirius Minerals Polyhalite Project Economic Case For more information, please visit Report 1, January 2018 www.theskillmill.org. 2. Sirius Minerals Polyhalite Project Economic Impact 2018, April 2019
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EDUCATION OUTREACH Our education outreach programme Our education increases the skills and aspirations of young people in the area. To date, we have worked outreach with 70 schools and engaged over 20,000 programme young people. In 2018, we participated in 56 education events including presentations aims to and activities to improve employability increase the skills, site visits and working with groups of skills and disadvantaged young people (see case studies below). aspirations of Sirius is a member of the York, North Yorkshire young people and East Riding Local Enterprise Partnership Skills in the area. and Employability Board, which supports skills YOUNG CARERS provision in the region. We also sit on the North A group of young carers of secondary school Yorkshire Coast Opportunity Area Board, a age, who juggle their studies with caring for family government initiative to improve social mobility for WHITBY IN BLOOM – REDCAR AMATEUR BOXING CLUB: members, visited us over a four-week period to CLIFF STREET WONDERLAND EAST CLEVELAND OUTREACH PROJECT young people in areas of deprivation. In recognition find out more about opportunities in the of our work, we were delighted to be invited to give workplace. Despite their tremendous work £5,000 was awarded to the Whitby in Bloom £4,850 was awarded to the club to fund new a presentation at Parliament to MPs and senior civil supporting their family, many had reported low project to rejuvenate a run-down area of the ‘satellite’ boxing clubs in East Cleveland. confidence and had little time to consider their town with a Wonderland-themed initiative. servants about the positive role that businesses These provide access to the sport for young can play in supporting social mobility. own futures. Thanks to 75 enthusiastic volunteers the people in an area where low-cost sporting Our project gave these young carers the area has been wonderfully redeveloped, activities are not available. Coaches report In addition, we are funding a £1 million programme opportunity to complete practical tasks, including enhancing community safety and providing vast improvements in the concentration, in Tees Valley and North Yorkshire to support the team work, communication, presenting and employment-related skills at the same time. commitment and discipline of the children science, technology, engineering and maths problem solving. For most of the group, this was who attend, and one of the girls has (STEM) curriculum over the next ten years. In 2018, the first time they had engaged with adults in a become a national champion! this programme engaged 8,000 young people. workplace or given a presentation in front of an audience. Together, they acquired a host of transferable and confidence-boosting skills.
SIRIUS MINERALS m FOUNDATION CAEDMON COLLEGE WHITBY £13 In 2018, the Company welcomed a group ANNUAL ROYALTY The Sirius Minerals Foundation is an independent of Year 8 female students from a local CONTRIBUTION charity that supports community projects in the secondary school over a six-week period. AT FULL PRODUCTION local area. We made a donation of £2 million to The girls had had been identified as having the Foundation for the construction phase and low aspirations and being at risk of during operations will contribute an annual disengaging from their studies. As part royalty of 0.5% of Project revenue, which is of the project, the students made a video forecast to amount to more than £13 million about life in a large company and the types of career opportunities available. per year when at full production. Along with this, the girls took part in The first round of funding was awarded in December sessions to help them build employability 2017, providing a total of £300,000 towards 80 local skills – including team work, communication, BLAZE – HEALTHY FAMILIES projects. These projects have been delivered in 2018 resilience and problem solving. At the end of Blaze Youth Club was awarded £4,000 to (please see the case studies on this page). The second the project, the girls said they felt inspired develop ‘Family Friday’. The scheme offers round of funding opened in autumn 2018 inviting and had new, more focused ambitions for weekly cooking sessions, over five months, applications for projects that focus on education, the future, with a greater knowledge of the skills and qualifications they will need. to help families in one of the most deprived training, skills and supporting people who are out of areas of the country learn essential life skills. work. To find out more about the Foundation and future For some of the families, Family Friday was funding rounds visit the website, the first time they had experienced the value of cooking and eating meals together. www.siriusmineralsfoundation.co.uk.
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Our community COMMUNITY stakeholders ENGAGEMENT WOODSMITH TO THE Stakeholder groups have been WORLD EXHIBITION identified and engaged as the Right from the outset there has been widespread In 2018, we held a three-month public Project has developed. They can interest in the Project and we have been committed exhibition in partnership with Whitby be broadly categorised as: to communicating with all local stakeholders in an Museum. It gave visitors the opportunity Site neighbours open and transparent way. Our approach, as set out to learn about the geology and mining Households within close proximity in our Community and Local Stakeholder Engagement history of Teesside and North Yorkshire, have been identified as ‘site Framework, involves providing regular updates as and of the significance of the Project’s neighbours’ of the Woodsmith and the project progresses – ensuring that people are contribution to global food security, as Lockwood sites informed before each phase of construction – and that well as information about the Project’s Community mechanisms are in place that enable questions and design, construction and operation. The representatives concerns to be raised and acted upon quickly. exhibition proved so popular that the museum reported an increase in footfall Elected representatives, including We use multiple communication channels, appropriate of 36% compared with the same period parish and town councillors, local to the specific stakeholder, including visits and phone in 2017. The exhibition subsequently authority councillors and local MPs. calls, newsletters, exhibitions and drop-in sessions, moved to Kirkleatham Museum in Redcar. Interest groups attendance at various public meetings, site visits and Business networks, environmental briefings, media releases, website updates and a bodies and other local groups. 24-hour community helpline. Education institutions We have developed good stakeholder relations, Local schools, colleges, universities which are vital to the Project’s development, and and other training providers. we continued to maintain and strengthen these General public throughout 2018. The wider public in the local area. Being a good neighbour Maintaining regular contact with the households closest to our Woodsmith Mine and Lockwood Beck sites has continued to be a priority throughout 2018 as construction activities have ramped up. We often visit our neighbours, produce a regular neighbour newsletter 36% and have hosted a number of individual site visits, as INCREASE IN FOOTFALL well as making sure that we are always contactable. COMPARED WITH 2017 We have also engaged households, landowners and businesses close to the sites where we have undertaken geotechnical exploration works. As construction has increased at Wilton, we have turned our attention to the neighbourhoods closest to the site and have recently joined a resident liaison group, also Responding to concerns attended by other businesses, at Wilton International. The Company responds quickly to questions and Breakdown of complaints at Woodsmith concerns. In 2018, 36 complaints were received, In 2018 we compared with 42 in 2017, despite a significant increase Public meetings and local groups in construction work. Of last year’s complaints, 19 related In 2018, we attended 30 public meetings including attended 30 to the Woodsmith site, four to Lockwood Beck, five to off- 23 parish and town council meetings closest to the site geotechnical works and eight to the works to bring public meetings Project sites. We hosted three site visits at Woodsmith mains power to site (which was carried out by and Lockwood Beck specifically for parish councillors. in the local area. the statutory provider’s contractors). 19 As detailed in the case studies, we attended LIAISON GROUP FORUM NO. OF COMPLAINTS the quarterly Liaison Group Forum and launched the The 19 complaints at Woodsmith related to traffic (ten), noise ‘Woodsmith to the World‘ exhibition at both Whitby We continue to chair the Liaison Group (seven), light (one) and surface water management (one). and Redcar Museums. In addition, the Company gave Forum, which met three times during 2018. Traffic remains the key theme and a robust traffic management The purpose of the forum is to facilitate liaison 19 presentations to local interest groups including system is in place. In 2017, there were 22 complaints about about the Project between local stakeholders, business networks, environmental groups, Rotary to provide updates on construction progress traffic, mainly about heavy goods vehicles (HGVs) not using clubs and agricultural societies. the approved route. In 2018, despite a 63% increase in HGV and to respond to questions and complaints. 1 In addition to Sirius, the forum’s members movements, traffic complaints fell to ten. We will continue to 1
include representatives from North York strive to reduce this further. Traffic Moors National Park Authority, councillors Noise levels are managed and monitored as per the from parish, town, borough and county requirements of our planning consent. Whilst none of the seven Noise councils, and representatives of the wider noise complaints in 2018 was associated with a breach of the stakeholder community as appropriate. The 10 Light meetings are open to the public, who are permitted levels, we have recently reviewed the main noise 7 welcome to participate. sources on site and put further noise reduction measures Surface and in place. water management
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Our aim is to become a world-leading producer of multi-nutrient fertilizer. Through the large-scale supply of POLY4, we will make a significant contribution to global food security, one of the most important challenges facing the world today. During 2018, we continued to work with a wide range of partners to promote better agricultural practices across the world in readiness for Measuring first polyhalite in 2021. Performance In delivering the Project, we are committed to minimising the environmental impact of GHG emissions Scope 1 our construction phase, implementing and 2018: 4,852 TCO2 e supporting environmental enhancements where possible. When the Project is GHG emissions Scope 2 operational, we will produce POLY4 in an 2018: 639 TCO2 e efficient and enduringly sustainable way. Gross carbon emissions 2018: 5,491 TCO2 e
Intensity metric: per £10 million spend 2018:152
NOx emissions TARGET: 25% REDUCTION IN NOX EMISSIONS AGAINST CONSENTED SCENARIO AT WOODSMITH 2018: 66%
Environmental compliance TARGET: ZERO ENFORCEMENT ORDERS 2018: 0 ENVIRONMENT Environmental incidents1 TARGET: ZERO During 2018, we continued to look at ways to 2018: 0 Strategic objectives SUSTAINABLE DESIGN AND OPERATIONS reduce the environmental impact of the New crop trial started Project beyond the requirements of our The polyhalite deposit can only be accessed from within the North York Moors National Park. We have taken extensive TARGET: 80 planning permission. We also provided measures to limit the environmental impact of our work. The number and size of our buildings has been kept to a minimum
2018: 110 significant funding for environmental projects 1 which, together with good landscaping and planting, will ensure the site is screened to blend in with the surrounding area. to improve the landscape, safeguard the Extracted ore will be transported to Teesside via an underground transport system and undergo a simple granulation process to ecology of the area and help offset our Effectively manage produce our POLY4 product, which does not require chemical processing and has no waste products. carbon emissions. environmental impacts during construction phase
2
Deliver and invest in measures to safeguard and enhancement of the environment
3
Promoting sustainable agricultural practices
1. An incident causing significant localised harm, recovery within one year
16 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 17 ENVIRONMENT
MINIMISING CONSTRUCTION CONSTRUCTION IMPACT CARBON FOOTPRINT
Throughout 2018 we worked closely with the relevant However, in alignment with our responsibility core The Company’s greenhouse gas authorities to ensure that all construction activities were value, our approach views compliance with planning (GHG) performance in 2018, as set out on page 16, is calculated in line carried out in accordance with our planning consents, conditions as our minimum standard. We are committed with the Government’s ‘Greenhouse through a series of phased discharge of our planning to looking for opportunities to further reduce the gas reporting: conversion factors conditions and amendments to planning approvals. environmental impact of the Project by going 2018’. This includes direct GHG There are almost 100 planning conditions relating to beyond what is required by our planning permission. emissions from the combustion of environmental issues as part of the permission for our For example, in 2018, we almost eliminated the need fuels (Scope 1) and indirect GHG sites and the mineral transport system. Before each for diesel-generated power by installing mains power emissions from the consumption of phase of construction, we have to set out how we will to the site, helping to improve local air quality and purchased electricity, steam or other comply with the conditions to ensure that construction reduce noise and emissions at source. Mains power sources of energy (Scope 2). In 2018, can progress and that impacts are limited across a has reduced nitrous oxides (NOx) emissions by 66% our emissions were 5,491 tonnes range of environmental matters including lighting, at the Woodsmith site in comparison with the permitted of CO2e. noise, landscape, wildlife and ecology, and air quality, levels. The requirement for diesel will be further as set out below. reduced in 2019 through the installation of a liquified In 2018, 21 phases of conditions discharges were natural gas plant, further decreasing emissions. We carried out across all Project sites, plus five section secured mains water supply to our sites last year, 96a non-material amendments and three section eliminating the need for road going water tankers and 73 minor material amendments to the Project’s helping to reduce traffic movements. planning permissions. We are pleased to report zero enforcement orders relating to environmental matters and zero environmental incidents occurred in 2018. We are keen to repeat this performance in the coming year.
Wildlife and Hydrology Visual and Noise and Traffic and Lighting Air quality ecology landscape vibration transport
• Locally sourced wildflower • Continued to manage • Earthworks continued to • Noise levels continued to • The Project’s park-and-ride • Regular proactive • Decreasing NOx emissions mix used to seed an area and monitor the interaction create more extensive bunding be monitored and managed facility opened in Whitby, lighting surveys conducted, by reducing the reliance on close to the attenuation between the Woodsmith site around the Woodsmith site to as required by the planning significantly reducing the especially during the diesel-generated power by ponds and local water courses as improve screening of the permission number of cars travelling winter months, involving installing mains power to • Night vision cameras construction activity working areas • Responded quickly to to the Woodsmith site consideration of the both the Woodsmith and installed to survey and increased • Site structures and plant concerns by undertaking • Logistics consolidation orientation, height and Lockwood Beck sites help protect wildlife • 570 water samples taken regularly reviewed to keep monitoring at residential centre established to reduce need for each lighting unit • There are management • Increase in wildlife at the during 2018 them as unobtrusive as properties and putting the number of small ‘white • Dark Skies audit undertaken measures in place to pond area, including five • Implemented surface possible additional mitigation van’ and half-load HGV with North York Moors minimise dust, with species of dragonfly and a water drainage strategies, • Confirmed approach with measures in place. For deliveries to site. This saved National Park Authority monitoring ongoing. resident pair of ducks which including the creation of North York Moors National example, we used container 1,526 HGV movements lighting specialist, with the • Generator audit undertaken reared 14 ducklings attenuation ponds, at both Parks Authority to further units to successfully in 2018 recommendations being on site plant and equipment Lockwood Beck and Wilton enhance the screening at attenuate noise levels • Robust traffic management implemented to minimise to ensure smooth running • Undertook four bat surveys during diaphragm wall lightspill from the site during summer 2018 the Woodsmith site through system in place as and maximise efficiency an agreed woodland construction at Woodsmith evidenced by complaints management plan. This will about HGVs decreasing from commence with the planting 22 in 2017 to ten in 2018, of 1,000 locally sourced trees despite HGV movements including hazel, willow, increasing by 63% rowan, birch and oak
18 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 19 ENVIRONMENT
SAFEGUARDING AND ENHANCING THE ENVIRONMENT
As part of complying with our planning permission, we are providing significant funding for environmental projects in the North York Moors National Park. This will amount to £130 million over our 100 year planning consent. In 2018, the Company provided funding of £518,000 towards landscape and ecology projects, woodland creation and initiatives to increase the understanding Credit: Ebor Images of the area’s geological and archaeological assets.
FOOTPATHS AND BRIDLEWAYS WOODLAND CREATION CARING FOR OUR HISTORIC BUILDINGS AND MONUMENTS Enhancement works have been undertaken Work has continued on the Lyke Wake Walk, a Over the next 100 years, £70 million will be St. Stephen’s Church on a wide range of public rights of way to enable long-distance trail within the North York Moors, provided to the National Park Authority to fund We continued to contribute to the management We also started the second phase of conservation hatchment board greater public access to the National Park. In which has enhanced the route for walkers and 7,000 hectares of new mixed deciduous and conservation of the National Park’s heritage at Old St Stephen’s Church in Fylingdales, close total, improvements to 20km of paths have been also helped to protect the moorland vegetation, woodland. This equates to planting 10 million assets in 2018 partly through our funding of the to the Woodsmith site. This included work on made since 2017, with examples of the schemes which is in a site of special scientific interest trees and is designed to offset 10% of the carbon North York Moors National Park’s Monuments for internal features such as the benefaction boards supported by our funding last year set out below. (SSSI) from erosion. emissions generated by our operations. The the Future project (launched in May of that year). and the hatchment board, as well as external The Esk Valley path from Westerdale to Whitby A section of the bridleway at Boggle Hole, which scheme will also enhance the character and There are over 800 scheduled monuments in repairs and installing drainage. averages 2,000 walkers per month. A section of is on the coast near to our site and had become landscape of the National Park and create more the area, including Bronze Age burial grounds, earth track was transformed to a stone surface to difficult for horse riders and cyclists to use, has diverse habitats for wildlife. an Iron Age fort and a number of prehistoric improve accessibility, reduce erosion and keep been improved to make sure it is accessible to The programme saw over 40,000 trees planted in features. While we often think of acid rain, the route viable in winter. a wider range of users. This project was part of 2018, with a 60,000 planned for 2019. National vandalism and neglect as the principal threats The surface of the Goathland Rail Trail has a much larger scheme of work to mitigate the Park volunteers, corporate teams (including Sirius to our monuments, in our area bracken growth been enhanced to improve accessibility for impacts of coastal erosion, which also involved staff), community groups, families and children is a major challenge. Volunteer teams therefore wheelchairs and pushchairs. As well as reinforcing the banks of the river to protect the from local schools have all been involved. set to work at nine of the monuments and we surfacing, this project involved the installation integrity of the Cleveland Way. In addition, a programme of seed collection has anticipate the need for this to be something of new drainage to prevent waterlogging started to develop a supply of locally grown trees for of a rolling programme! during prolonged rain. the scheme in the years to come. In autumn 2018, a team of volunteers collected over 25,000 acorns which were sown at Castle Howard Tree Nursery in North Yorkshire. In two years’ time, we will have 25,000 own-grown oak saplings ready to plant!
20 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 21 ENVIRONMENT
SUPPORTING SUSTAINABLE AGRICULTURAL PRACTICES
Food security is one of the most significant challenges facing the world today. The world’s WORKING WITH OUR CUSTOMERS population is set to increase by a third by 2050 – to We have secured advance contracts to 9 billion – and food production will need to increase supply a total of 10.7 million tonnes per by 60% to meet demand. During the same period, annum (Mtpa) of POLY4. This includes a the area of land available for farming will decrease supply agreement with Cibra, signed in by 15% and on what land is available, there are 2018, for the distribution of 2.5 Mtpa in nutrient deficiencies that will affect the ability of Brazil and other South American countries. crops to thrive. We have an unrivalled technical and A key challenge is how to meet these demands and Sustainability credentials agronomic knowledge of POLY4 and pressures in a way that safeguards the environment. In addition to increasing crop yields, POLY4: its benefits. In partnership with Cibra, we Fertilizers are essential to farming, helping to produce plan to develop a regional crop science • improves nutrient use efficiency by delivering greater more than half of the world’s food. But simply applying programme that offers POLY4 best nutrient uptake (see Figure 1) more fertilizer is not a sustainable way to increase crop practice to local farmers and growers to yields. Large-scale farming systems and the over- • improves soil strength and structure, supporting promote balanced fertilization focusing on application of fertilizers have been responsible sustainable land management correcting nutrient deficiencies, improving soil health and achieving greater yields. for environmental impacts such as pollution, soil • is certified for organic use degradation, deforestation and habitat loss. • increases plant disease resistance, thereby reducing It has been consistently demonstrated that POLY4 the likely demand for pesticides improves both crop yield and quality (see Figure 2) and • is low in chloride and is pH neutral has a number of sustainable characteristics. Taken • has a low carbon footprint together with our long-term commitment to work with customers and farmers to promote balanced fertilizer • requires simple non-chemical processing only practices, our Project can make a significant and sustainable contribution to global food security. FOR MORE INFORMATION PLEASE VISIT POLY4.COM
Figure 2: Increases crop yields Global crop science programme Good nutrient stewardship – ensuring that nutrients Figure 1: Nutrient delivery are applied to the right crop at the correct time and rate – is at the heart of our global R&D programme. We work with a wide range of stakeholders – including customers, research institutions, farmers and growers – to promote ever more sustainable agricultural practices. To date, our programme has involved over 370 trials in partnership with agricultural universities and research institutions on 42 crops in 28 countries. In 2018, we established 110 new trials on 32 crops across 21 countries. The guidance and recommendations we provide to farmers, supported by the crop trials in our R&D programme, can improve productivity and efficiency for farmers, which in turn helps to increase food production and profitability, enhance environmental protection and improve sustainability.
POLY4 releases nutrients when crops need them, minimising the costs and damage of nutrient loss to the environment.
1. Yield parameter by crop; detailed crop study results available on Company website 2. Field study comparing straight fertilizer applications 3. Field study comparing MOP T12 v POLY4 T12
22 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 23 OUR PEOPLE
What people means to Sirius Our values HEALTH AND SAFETY IN NUMBERS Our people worked 1,411,234 person We have six core values that inform Responsibility: Leadership by everyone hours on the Project in 2018. At the end and guide our actions, individually and – acting with accountability and integrity of the year, our Project’s Lost Time Injury collectively. Responsibility has been in Ownership: Pride in our Company and Frequency Rate, which is a rolling our DNA since the beginning. We ask our everything we do – “Look after it like it 12-month average of incidents per million people to embrace responsibility – it’s not is yours” person hours worked, was 3.54. just up to management. We also expect Uncompromising determination In 2018 the Company reported five the team to act with integrity and be Belief: that we will succeed, no matter what incidents to the Health and Safety accountable for their behaviour. Executive under the Reporting of Injuries, the challenge Diseases and Dangerous Occurrences Urgency: A bias towards action – a Regulations 2013. These included one Measuring restless need to find solutions, overcome incident where a team member from a performance: hurdles and move forward contractor sustained a serious injury Safety: Looking after each other all the during piling works at our Wilton site. A People 2018 time – making every day a good day rigorous investigation into the incident was carried out and as well as the results being Team: Success comes from working shared across our other sites and beyond, Lost Time Injury together and not alone we implemented new working practices to Frequency Rate prevent reoccurrence. 2018: 3.54 We work with our contractors to identify Major health and hazards associated with every new work safety incident package before any construction begins. TARGET: 0 These formal, intensive sessions allow us 2018: 1 to harness the knowledge and experience of the wider team. Our health and safety Workforce participating team led 50 such hazard identification in training sessions in the year. 2018: 45%
Voluntary workforce turnover 2018: 4.3% Gender representation1 OUR PEOP LE
BOARD As an employer, we are committed to Strategic objectives In 2018, we invested in encouraging our people to take keeping our people safe, investing in a KEEPING OUR PEOPLE greater personal responsibility for their own safety, and world-class team and nurturing a culture the safety of others on site. We encourage everyone to that allows people to thrive. The primary SAFE AND HEALTHY have a voice and have processed over 300 ‘observation
3 focus areas for 2018 included activities to 1 cards’ during the last year. This provides valuable 5 progress our business-wide safety culture, The health, safety and wellbeing of our employees feedback to our site management team: they allow any develop the strength and capability of our Keep our people and contractor network is our number one priority. member of the workforce to share constructive workforce, and to reinforce the influence our safe and healthy We are committed to providing a safe working suggestions as to how we could improve working people have on our long-term success. environment and expect our people to make conditions across our Project sites. SENIOR MANAGEMENT 2 every decision with their own safety and wellbeing, Our main technical focus areas throughout the year and that of those around them, in mind. 1 included the management of major hazards and the 2 Our approach is based on our ‘One Team’ ethos – mobilisation of construction teams equipped with the every person on our Project, whoever they work for, right tools, expertise and outlook to complete their work Empowering is considered part of the Sirius Minerals’ team and is safely and efficiently. 6 our people expected to contribute to achieving our goals safely. We understand the wellbeing of our team is the key to All new starters on the Project complete a site-specific their personal and professional success. In 2018, we online safety induction in addition to a face-to-face strengthened our occupational health provision and put ALL EMPLOYEES induction when they arrive, which helps us to embed a spotlight on fatigue management, work-life balance 3 our values, safety culture and ‘One Team’ mentality and awareness of maintaining good mental health. We from day one. Throughout the year, over 1,350 people will continue to build on the information, support and 57 Growing our people received this induction. tools we provide, making it even easier for our people to keep themselves safe and well. 99 Men
Women
It’s not enough to just be safe – we have to work safe. It’s our responsibility to look after each 1. as at year end 2. Includes CEO and direct reports other and deliver the Project.
24 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 25 PEOPLE ONE TEAM At Sirius, we talk about ‘One Team’. This is about all 900+ members of the team - Sirius, our contractors and EMPOWERING sub-contractors - working together to deliver the Company’s goals safely, OUR PEOPLE and where everyone on the Project, whoever they work for, is valued for We value the strength that a diverse, dynamic, At the end of 2017, we introduced our Speak Up line. their contribution. engaged workforce brings to our business. Our This 24/7 phoneline is hosted independently, ensuring Everyone in our business is empowered people are empowered to find and implement maximum confidentiality for those who wish to remain to challenge behaviours that do not safer, more innovative ways of doing things anonymous. Speak Up has now been integrated across align with One Team. We support and because we know that our overall levels of safety, all our sites. look after each other so that we all feel engagement and productivity depend on it. We recognise how important our contractors and safe, valued, equal and respected. sub-contractors are to our success. In 2018, we worked The diversity of our team continues to grow year on We also encourage our team to get year. We have female representation on the Board of hard to strengthen the two-way dialogue across the workforce, with our employees and wider contractor involved in activities that benefit the Directors and senior leadership team and an increasing wider community. In 2018, this included number of female employees in the wider workforce. network. We will continue to develop this strategy and build relationships based on care, trust and equality. promoting engineering careers to young In 2018, our predominantly local team, was joined by women, working with young people members of 18 different nationalities which will no Our Non-Executive Directors continue to play an and disadvantaged groups, and doubt continue to grow as our business reaches new important role in ensuring the whole workforce can schemes to improve the environment. communities. We will continue to make our business have a say and are properly represented. In 2019, we attractive and accessible to minority groups. have planned a series of ‘Exchange’ forums which will In 2018, all our people activities were designed to bring Non-Executive Directors together with people inform, engage and empower the team, including from across the business to ensure that the voice of the wider construction workforce. We focused on our people is heard in the boardroom. strengthening skills that promote a positive working By giving our people the tools they need to succeed and culture and activities that reinforce our other two pillars the confidence to use them, they become empowered of responsibility – environment and community – such to make meaningful changes. Over 130 of our team as tree planting and spending time contributing to our members came together in June to reinforce the core education outreach programme. skills that have enabled the Company to succeed so far We increased the frequency and quality of and that will be needed in the future: resilience, making GROWING OUR PEOPLE communication across the business to help our decisions, communication and problem solving. teams to connect. We increased the number of internal At the end of the year we launched our first We want to build a world-class team. That starts with channels available to the workforce and worked to make engagement survey, so our people could express their attracting talented people who are motivated, resilient them as valuable and user-friendly as possible. ideas, tell us what we’re doing well and identify areas and eager to keep learning. We also look for natural where we need to make improvements. We have problem solvers – the people who do not wait to be told listened to our workforce and will use the survey what to do, who take responsibility and find resourceful, results to help us shape our growing culture. creative ways to get the job done. We aim to complete as much recruitment in-house as possible to help us select people like this – those reviews, to identify development opportunities to who strengthen our culture as well as our capability. support their current position and future aspirations. PROJECT INDUCTION Throughout the year we filled 85% of roles via in-house In 2018, in addition to staff members who completed recruitment, only using external partners to help fill some In 2018 the Company focused on compliance-based training, 45% enrolled in additional of the more specialist positions. We are committed to activities to inform, engage and training to support their personal development. empower the wider Project team, employing local people whenever possible. In 2018, 82% including the construction workforce, of direct employees came from the communities around In 2018, we also focused on activities to develop our to help create a sense of personal our Project sites. leadership capability. A large part of this work was in support of our updated competency management responsibility for the part they play In 2018, we welcomed 65 new employees to the team system and commitment to improving our safety in the team’s collective success. who increased our number of direct employees to 156. leadership culture. We will continue to invest in our Our team is now largely spread across Teesside and Everyone who works on the Project, leaders because we know the important role they play North Yorkshire, with smaller teams based in London even if it’s just for a few days, receives in developing, inspiring and retaining our talent and and our key customer regions: Latin America, China, a face-to-face induction about the driving improvements in safety and efficiency. Company’s vision, the Project’s history the USA, Europe, India and South-East Asia. Our and successes, and the goals ahead. voluntary staff turnover for the year remained low (<5%), At Sirius, our performance management and During 2018, 1,350 people received the with more than 99% of our people choosing to stay on remuneration frameworks also encourage and reward induction, helping them to feel part of with the business. our people for living our core values in addition to fulfilling our business strategy. These frameworks and the team and integrate quickly with After joining us, our people have access to ongoing principles, coupled with our value-led culture, mean our new colleagues. development and opportunities for growth within the people understand that it is not just what they do that is business. All staff are encouraged to engage in ongoing important, it is also how they do it. dialogue with their team leaders, in addition to formal We want to be an employer of choice. We want people who share our values to apply for a role here because they are excited about our business and know that working as part of our team will help them to develop. Sirius is a company in which people feel valued, challenged and fulfilled every day.
26 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 27 Responsible Business Strategy
MEASURING SUPPORTING THE UNITED NATIONS OUR PERFORMANCE SUSTAINABLE DEVELOPMENT GOALS
TARGET 2018 PERFORMANCE UN Sustainable Our contribution In 2015, leaders of all 193 members Development Goal COMMUNITY of the United Nations committed to adopting 17 Sustainable Development End hunger, achieve POLY4 increases crop yield and quality and Direct jobs created — 900 Goals (SDGs). These define the UN food security and has positive environmental characteristics. improved nutrition and We are working with a wide range of A minimum of 35% of workforce sourced from the development agenda up to 2030 and Local employment 66% focus on addressing the world’s most promote sustainable stakeholders to promote sustainable local area agriculture agricultural practices across the world. pressing sustainability challenges Contribution to the economy of Yorkshire — £200 million including poverty, inequality, conflict and the North-East and protection of the environment. Promote sustained, The Project will make a significant and Indirect jobs created — 245 The SDGs are a call to action for inclusive and sustainable sustainable contribution to regional and businesses, as well as governments, economic growth, national economies. Thousands of skilled 50 new apprenticeships with Sirius by 2023 0 Apprenticeships NGOs and other key stakeholders, about full and productive jobs will be created, and we support employment and programmes that prepare the community Education outreach programme Participate in at least 20 activities a year 56 how we can all help to contribute to a more sustainable future. We welcome and decent work for all for these opportunities. Community engagement Attend at least 20 public meetings a year 30 support the SDGs and have identified six where we believe we can have the most Complaints received Respond quickly and resolve 36 beneficial impact. Build resilient The Project’s long-life and low-impact infrastructure, promote infrastructure is an exemplar of sustainable inclusive and sustainable development. Our global crop science ENVIRONMENT industrialization and programme supports innovation in foster innovation fertilizer methods. Achieve a minimum of 25% reduction in NOx NOx emissions 66% emissions against consented scenario at Woodsmith
Environmental compliance Zero enforcement order 0 Ensure sustainable We have developed a new product that consumption and improves productivity and efficiency for Environmental incidents Zero incidents 0 production patterns agriculture which in turn can help to increase food production and profitability, 80 110 New crop trials started enhance environmental protection and improve sustainability. GHG emissions Scope 1 — 4,852 TCO2e
GHG emissions Scope 2 — 639 TCO2e Take urgent action to The 1:1 mined ore to product ratio and simple Gross carbon emissions — 5,491 TCO2e combat climate change granulation process mean that POLY4 has a Intensity metric: per £10 million spend — 152 and its impacts low carbon footprint. We promote agricultural practices that increase productivity and use fewer inputs that have an adverse impact on PEOPLE the environment.
Lost Time Injury Frequency Rate — 3.54 Protect, restore and We will help towards making more efficient Major health and safety incident Zero 1 promote sustainable use use of existing farmland, reducing the risk of of terrestrial ecosystems, deforestation. We are funding 7,000 hectares Workforce participating in training — 45% sustainably manage of new woodland and creating more diverse Voluntary workforce turnover — 4.3% forests, combat habitats over the next 100 years. desertification, and halt 3 women and reverse land Gender representation — Board — 5 men degradation and halt biodiversity loss Gender representation — senior 1 woman — management 6 men
57 women Whilst there is no single methodology for measuring and reporting business Gender representation — all employees — 99 men progress on the SDGs, there are a number of reporting frameworks. We are still at an early stage of the Project’s development and will look at the most appropriate 2018 provides a baseline for measuring performance in the construction phase of the Project. Where appropriate, targets will be set reporting framework as we move onto operations. for 2019 against the baseline established in 2018.
Key Positive outcome Neutral / not applicable Negative outcome
28 Sirius Minerals Plc Responsible Business Report 2018 Sirius Minerals Plc Responsible Business Report 2018 29 Consultancy, design and production www.luminous.co.uk
For more information please contact: Tel: 01723 470 010 Address: This document is printed on Arcoprint, Sirius Minerals PLC sourced from well-managed, responsible, Resolution House FSC® certified forests and other controlled Lake View Scarborough sources. The pulp used in this product is YO11 3ZB Design and production www.luminous.co.ukbleached using an elemental chlorine free Email: [email protected] (ECF) process.