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Our Social Approach

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Our Social Approach INTRODUCTION STRATEGY RESULTS Environmental Approach Social Approach Governance Approach OUR SOCIAL APPROACH Our social approach is grounded in our belief that not only our products, but our people, are key to a better business and a better society. Energy is essential to modern living, We seek a workforce that is comprised reduced poverty, longer lives and of diverse backgrounds, thoughts and powerful economies. Within the energy experiences. Our company strives to mix, fossil fuels satisfy approximately attract and retain the best people, 80 percent of the world’s primary develop their potential and align energy demand. Thermal coal fuels their skills to important initiatives more of the world’s electricity than and activities. We believe in fostering any other source with advantages in an inclusive work environment cost, scale and reliability. Thermal coal built on mutual trust, respect and is also an important source of energy engagement. And we invest in our for the global production of cement employees through health and wellness used in concrete, and metallurgical programs, competitive total rewards coal is a required component in new and development opportunities. The steel production. Together, steel and company’s inclusion programs are concrete provide key construction formalized in policy and practice materials for building resilient and are embedded in our Equal infrastructure including skyscrapers Employment Opportunity policy and communications and transportation and our Code of Business Conduct systems that support industrialization and Ethics. and urbanization. Simply put, we Empowered employees have the believe our product is beneficial to ability to empower others. Across our society, and our company is valuable to global platform, we work to improve our many stakeholders. lives through economic benefits, At Peabody, we begin by creating targeted corporate giving and valuable a strong, united workforce with a volunteer hours in support of energy, commitment to safety as a way of life. the environment and those causes most Safety is our first value and leading significant to the communities in which measure of excellence, and our we operate. governing Safety Principles apply to our employees, contractors, visitors and vendors at our sites, and to any location where an employee is engaged in work activities. We approach safety with both vigilance and humility, understanding Target #4 that incident-free workplaces can be Protect against achieved only by accountability and work-related continuous improvement at all levels fatalities. North Antelope Rochelle Mine of our organization. 24 2018 ESG Report 2018 ESG Report 25 INTRODUCTION STRATEGY RESULTS Environmental Approach Social Approach Governance Approach Global Safety Results Peabody Global TRIFR Compared to In 2018, Peabody reported a global Other U.S. Industries Total Recordable Injury Frequency Rate (TRIFR) of 1.45 per 200,000 hours worked. This compares favorably to 3.70 coal mining industry averages in both the U.S. and Australia, which totaled 3.7 and 3.2, respectively.25,26 Globally, Peabody decreased its TRIFR 1.45 for surface operations to 0.84 per 200,000 hours worked in 2018, an improvement from the 0.94 recorded for 2017. The global underground incidence rate for 2018 was 3.35 versus Financial Information Professional Peabody Utilities Providing Service Trade Wholesale Construction Retail Trade Leisure/Hospitality Manufacturing Mining Coal Services Educational/Healthcare Transportation/Warehousing State and Local Government Agriculture/Forestry/Fishing/Hunting Administration Public 2.88 in 2017. Our U.S.-based operations improved specifications for hydraulic hoses and 12 percent from 2017 levels with a improving fire suppression systems in TRIFR of 1.42. Our Australian operations haul trucks, among others. reported a 2018 incidence rate of 1.59 compared to 1.19 in the prior year. We continue to take actions across the enterprise that go beyond federal Several Peabody mines achieved requirements in order to ensure the outstanding safety results in 2018. In safety of our employees. the U.S., the North Complex, which includes the Caballo and Rawhide mines in Wyoming, had only one reportable Safety a Way of Life injury in 2018. In addition, the North President Australia George J. Schuller Jr. delivers safety presentation at Metropolitan Mine. Antelope Rochelle Mine in Wyoming, Peabody believes all team members which is the world’s largest coal mine must be empowered with the resources, and employs a workforce of more than skills and authority to perform their 1,200 employees, had a 2018 TRIFR of jobs safely. Peabody’s Safety a Way ROLLOUT OF SAFESTART PROGRAM just 0.5. of Life (SAWOL) management system sets out a risk-based framework that In Australia, the Middlemount and Our vision is to operate safe and healthy workplaces that are incident free, and a relentless pursuit of is the basis for continuous safety and Millennium mines had a 2018 TRIFR this goal continues to fuel improvements across our safety systems, standards and practices. health improvement. SAWOL, which below 1.0, and the Wilpinjong Mine had is independently certified under the a rate of 1.03 for the year. In 2018, we completed the comprehensive roll out of the SafeStart program at all our U.S. mines. The U.S. National Mining Association’s Target #5 program, which is already in place at many of our Australia operations, encourages greater ongoing In 2018, a team member at the Bear Run CORESafety® framework, sets clear personal awareness of potential safety risks and the development of consistent safety habits. Improve company’s Mine in Indiana was involved in a truck expectations for work activity at global TRIFR. SafeStart complements Peabody’s existing safety management system and offers practical techniques fire, and five days after the incident, he operations and is designed to foster to help employees remain alert to risk both while on the job and when away from the workplace. The tragically suffered cardiac arrest and a safety culture that promotes program encourages team members to establish self-triggers that will prompt them to stop and think passed away. participation and accountability among when faced with situations that include potential risks. employees, contractors, visitors and The incident was thoroughly vendors at sites. investigated to identify the root The SafeStart program also challenges employees to analyze close calls and small errors to avoid causes and pass on findings across larger incidents, look for patterns that can increase the risk of injury, and then develop habits that the operations. Additional safety promote safety. actions being implemented at Bear Run and other mines include upgrading 26 2018 ESG Report 2018 ESG Report 27 INTRODUCTION STRATEGY RESULTS Environmental Approach Social Approach Governance Approach Also in 2018, Peabody’s Kayenta Mine in Arizona was Employee Value Proposition honored with a Sentinels of Safety Award from the U.S. National Mining Association for recording the At Peabody, we offer challenging and meaningful work. most hours without a lost-time incident in the coal- We encourage a supportive and inclusive environment processing facility category. In addition, Peabody was where employees are collaborative, knowledgeable, recognized with a Communitas Award in the Ethical engaged and know that they can count on one another. and Environmental Responsibility category for our Creating this type of environment is at the heart of our focus on safety. Employee Value Proposition, or EVP, which helps define why talented, accomplished individuals are attracted Each year, Peabody recognizes top safety to Peabody and why our more than 7,400 employees performance across our mines with our annual continue to stay with the company. President’s Awards, which honor operations with the lowest TRIFR. We also encourage our employees to We believe retaining a high-quality workforce brings develop creative solutions to help make the company’s continuity and sustainability to our operations. The mines safer through our annual Safety and Health typical Peabody employee has nearly 10 years of Innovation Awards. experience with the company, and approximately two-thirds of all Peabody employees remain employed Now in its eighth year, these awards recognize smart with the company for more than five years. inventions, big and small, that improve safety and often introduce cost and time efficiencies, increase About 95 percent of our team members work for productivity and may be mirrored across the company mine operations in the U.S. or Australia or for regional — and potentially across the industry. The program is offices in Brisbane, London and Beijing, while the another example of Peabody’s commitment to safety remaining are employed at our global headquarters and to fostering the sharing of best practices. in St. Louis. In 2018, Peabody completed SAWOL outlines the requirements to Mine safety reporting is included in the acquisition of the Shoal safely manage potential hazards and Peabody’s financial regulatory reports Creek seaborne metallurgical covers topics ranging from training as specified by the Dodd-Frank coal mine in Alabama. and emergency management to work Wall Street Reform and Consumer As we integrate the operation into our portfolio, procedures and permits. Ultimately, Protection Act, and Peabody complies Peabody’s safety leaders SAWOL details the requirements that with Securities and Exchange are working alongside our Peabody holds
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