| Report to Society in Review | 2015

BUILDING FOREVER REPORT TO SOCIETY IN REVIEW 2015 OVERVIEW PRIORITIES LOOKING FORWARD INTRODUCTION

OUR BUSINESS A GLOBAL VALUE CHAIN

AT A GLANCE EXPLORATION PRODUCTION ROUGH CUTTING, POLISHING BRANDS/RETAIL SALES AND MANUFACTURING

De Beers’ exploration De Beers has both De Beers sells its rough The cutting and polishing De Beers markets activities are currently underground and open- diamond production of and the polished diamonds to focused in Canada, pit mines in , via contract sales to manufacture of diamond consumers through Botswana, South Canada and . customers, known as jewellery are concentrated Forevermark, which and Namibia, where we Sightholders and in Belgium, Botswana, promises a consumer De Beers was established in 1888 and is a member of the use highly sophisticated We also commercially Accredited Buyers, and China, India, Israel, that their diamond is technologies to find and mine alluvial diamonds via rough diamond Namibia, South Africa beautiful, rare and group. We are the world’s leading diamond company, with unrivalled determine the economic in Namibia using onshore auctions. and the United States. responsibly sourced; viability of deposits. extraction techniques and retails diamond expertise in the exploration, mining, sorting, valuing, selling and marketing and, in the sea, As part of our long-term We aim to support jewellery through specialised ships. contract sales, the downstream activities De Beers Diamond majority of De Beers’ such as cutting and Jewellers, our of diamonds. We believe that diamonds are a catalyst for creating value Through , diamonds are aggregated polishing in our countries our synthetic industrial independently managed and sold at 10 Sights (or of production through 50/50 joint venture and delivering socio-economic benefit in the countries and communities diamond supermaterials selling events) each year, our beneficiation strategy business, we supply with Moët Hennessy with the remainder being (see Economics chapter). Louis Vuitton. where we operate. tool and application sold via online auction. manufacturers across a diverse range of De Beers has sales global markets. operations in Belgium, A COMPANY BUILT ON PARTNERSHIP Hong Kong, Israel, Partnership sits at the heart of our business, through a number of 50/50 joint ventures with the Singapore and the United Arab Emirates. Governments of Botswana and Namibia, and our 74/26 Black Economic Empowerment Partnership with Ponahalo Holdings in South Africa. WHERE WE OPERATE

ANGLO AMERICAN PLC 85% GOVERNMENT OF THE REPUBLIC OF BOTSWANA 15%

THE DE BEERS GROUP OF COMPANIES

EXPLORATION PRODUCTION ROUGH DIAMOND SALES BRANDS/RETAIL CANADA

MINING SUPER MATERIALS 1,887,000 GLOBAL CANADA DE BEERS NAMDEB ELEMENT SIX: GLOBAL AUCTION FOREVERMARK DE BEERS carats recovered, 2015 1 EXPLORATION (100%) CONSOLIDATED (50%) HOLDINGS TECHNOLOGIES SIGHTHOLDER SALES (100%) DIAMOND MINES (50%) SALES (100%) JEWELLERS 1,354 (100%) employees (74%) (100%) (50%) ABRASIVES (60%) REST OF WORLD NAMDEB SIGHTHOLDER • 1,824 employees DIAMOND SALES SOUTH • Corporate centres in CORPORATION AFRICA NAMIBIA SOUTH AFRICA BOTSWANA Luxembourg, South Africa (LAND-BASED) (74%) and the United Kingdom DTC BOTSWANA • Additional sales operations DEBMARINE (50%) in Belgium, Hong Kong, 1,764,000 4,673,000 20,368,000 Israel, Singapore, and the NAMIBIA carats recovered, 2015 carats recovered, 2015 carats recovered, 2015 United Arab Emirates (MARINE-BASED) NAMIBIA DTC (50%) 2,646 4,188 6,812 • Forevermark available employees employees employees in 35 markets. Numbers indicate percentage of De Beers’ ownership.

1 Exploration is undertaken through a number of wholly-owned and joint venture entities. OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 De Beers | Report to Society in Review | 2015 1 INTRODUCTION

We are humbled to play a role in connecting millions of people around the world to the diamond dream. Our operations and leadership position across the diamond pipeline enable us to create development opportunities in the communities where 04 we live and work, and ensure that people can be proud to 02 wear a diamond from The De Beers Group of Companies. OVERVIEW We call this Building Forever – our commitment to create a lasting positive INVESTING FOR THE legacy, and to grow and protect the special place diamonds hold in the lives LONG TERM of consumers. Partnership is at the heart of this approach. We are proud to play a part in the development of partner countries and communities, working together to maximise enduring value from their finite natural resource. And our collaborations across industry and beyond set ever higher ethical standards, providing confidence to generations of consumers. 12 This review presents a summary of our 10th annual Report to Society and charts our sustainability performance in 2015. Despite significant market DRIVING CHANGE challenges throughout the year, our Report to Society reflects the unwavering ACROSS THE INDUSTRY commitment of our people to continue Building Forever. AND OUR BUSINESS 18 24 About this review For the purposes of our data reporting, without obtaining specific professional This review presents performance data we provide figures to one decimal place, advice. No representation or warranty for those businesses that De Beers either except where it is necessary to use (express or implied) is given as to the owns or has a significant shareholding two decimal places for more accurate accuracy or completeness of the WORKING IN LOOKING FORWARD in, and that have economic, social and reporting. Any inconsistencies between information contained in this report, environmental impacts. De Beers the data, charts or percentage changes and, to the extent permitted by law, the PARTNERSHIP Diamond Jewellers, an independently reported are due to this rounding. authors and distributors do not accept or managed joint venture company, is not assume any liability, responsibility or duty included in the scope of this review. All performance data for joint ventures of care for any consequences the reader Use of ‘De Beers’, ‘our’ or ‘we’ relates included in this publication is reported on or anyone else may incur from acting, to The De Beers Group of Companies, a a 100 per cent basis unless otherwise stated. or refraining from acting, in reliance collective term used for both wholly-owned on the information contained in this and joint venture business entities that Disclaimer publication or for any decision based on De Beers has a significant shareholding This publication has been prepared for it. © De Beers UK Limited 2016. All rights in, with the exception of De Beers general guidance on matters of interest reserved. De Beers™, Forevermark™, Diamond Jewellers. only, and does not constitute professional A Diamond is Forever™ and The One™ For more information, go online advice. Readers should not act upon the are trade marks of The De Beers Group information contained in this publication of Companies. www.debeersgroup.com/buildingforever 2 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 3 WHO WE ARE

Despite a challenging year for 2015 IN the diamond market, we remained 2015 IN REVIEW committed to Building Forever. NUMBERS

2015 was a challenging year for and maintenance and scaled down TOTAL DIAMOND REVENUE LOST TIME INJURY PREFERENTIAL PROCUREMENT AS PAYMENTS TO STAKEHOLDERS FREQUENCY RATE A PROPORTION OF TOTAL SPEND De Beers, with revenues declining operations at Orapa Mine’s No. 1 (LTIFR) by 34 per cent to US$4.7 billion Plant. We also took a series of steps (2014: US$7.1 billion) as demand to stimulate demand for rough for rough diamonds weakened. and polished diamonds. US$4.7bn US$3.9bn With reduced sales, the total (2014: US $7.1bn) Including partners, joint ventures, diamond revenues we returned Throughout the year, we remained governments, suppliers, employees, to stakeholders, including our focused on maximising the value shareholders and other finance providers of every carat mined and sold PAYMENTS TO STAKEHOLDERS 0.15 56% partner governments, suppliers, (2014: 0.17) (2014: 62%) (2014: US $5.7bn) business partners and employees, for our producer governments and communities. fell by 32 per cent, to US$3.9 LOSS OF LIFE INCIDENTS DIRECT EMPLOYEES BASED IN AFRICA PEOPLE COVERED BY billion (2014: US$5.7 billion). Despite the challenges of 2015, we US$3.9bn DE BEERS’ BEST PRACTICE PRINCIPLES (BPPs) We took decisive action to respond remained committed to Building (2014: US $5.7bn) to market conditions during 2015 Forever by: 81% to protect the health of our • Investing for the long term (2014: 81%) business and the diamond in production, people and revenues that play a critical role socio-economic benefit in development in our producer Asia Europe and Americas Africa 320,000 partner countries. We cut • Driving change across the 0(2014: 0) Middle East (primarily (2014: 370,000) Canada) production by 12 per cent and industry and our business unit costs by six per cent during • Working in partnership for PERCENTAGE OF DE BEERS’ WORKFORCE REPORTED INDIVIDUAL BENEFICIARIES OF TOTAL SOCIAL the year. In Canada we took the sustainable development THAT IS FEMALE SOCIO-ECONOMIC DEVELOPMENT PROGRAMMES INVESTMENT SPEND difficult decision to put Snap Lake Mine on care and maintenance, while in Botswana, Debswana put Damtshaa Mine on care 24% 47,800 US$28.2m (2014: 24%) (2014: not reported) (2014: US $27.6m 1)

FRESH WATER CONSUMPTION ENERGY CONSUMPTION LAND SET ASIDE FOR CONSERVATION (DIRECT AND INDIRECT) Top right: A diamond sorter inspects a rough diamond. Right: A shovel operator at Venetia Mine in South Africa is about to load ore on 170,785 ha to the trucks for delivery to the plant. For every hectare of land disturbed 3 for mining, five are managed for The full, detailed 2015 Report conservation to Society is available 37.9m m 17.2m GJ for download at (2014: 38.2m m3) (2014: 16.2m GJ 1) (2014: 195,128 ha) www.debeersgroup.com/reports 1 Restated from previously reported figures in the 2014 Report to Society. 4 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 5 INVESTING FOR THE LONG TERM

Our commitment to Building Forever saw us make INVESTING FOR THE LONG TERM significant investments throughout 2015 to ensure that diamond revenues continue to drive economic IN PRODUCTION, PEOPLE AND development in the countries and communities SOCIO-ECONOMIC BENEFIT where we operate.

Our confidence in the long-term DRIVING DEMAND INCREASING OUR FUTURE strength of the global diamond Without continuing consumer PRODUCTION CAPABILITIES market and our commitment demand, our ability to unlock Investment in our future to Building Forever saw us make the value of diamonds to support production continued to focus significant investments throughout the development aspirations of on three projects during 2015: 2015 in: our producer countries would to open the largest new diamond • Stimulating consumer demand be reduced. mine under development for diamonds We continued our industry-leading anywhere in the world – Gahcho marketing activities to stimulate Kué in Canada – and to extend • Supporting continuing active production at two of our production demand during the year. And in a difficult market we enhanced existing operations, Venetia Mine • Improving the skills of our our ability to bring the story of in South Africa and Jwaneng Mine people diamonds alive for consumers in the in Botswana (see page 6). US and China with an additional • Delivering socio-economic US$20 million investment in our benefit for the people whose lives marketing programme during the are touched by our activities fourth quarter. Through these investments, we We reintroduced the iconic aimed to ensure that diamond ‘A Diamond is Forever’ slogan revenues can continue to drive in our Forevermark programmes economic development in the in the US and we launched a countries and communities new campaign called ‘The One’ where our operations are based, that focused on the exacting long after the volatility of 2015 selection and eligibility standards TOTAL INVESTMENT IN CAPITAL has passed. we apply to the less than one per EXPENDITURE PROJECTS cent of diamonds eligible to be called Forevermark diamonds. Left: The SS Nujoma on the slipway in US$697m Norway, ultimately destined for (2014: US$589m) Namibian waters. 6 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 7 INVESTING FOR THE LONG TERM

INVESTING GAHCHO KUÉ, CANADA 2015 2017 2019 2021 2023 2025 2027 A new mine will be constructed comprising three pits and covering PRODUCTION LIFE OF MINE 1,200 hectares, making it De Beers’ STARTS FOR THE FUTURE largest open-pit mine in Canada. 2016 2028

ESTIMATE OF CARATS SOCIO-ECONOMIC BENEFITS TO BE RECOVERED 54 MILLION TONNES OF ORE 700 400 35 MILLION jobs supported during further jobs expected to be construction supported during operations

Throughout 2015, we continued to invest JWANENG, BOTSWANA 1982 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 in new and existing operations to extend The eighth cut, or expansion, of Jwaneng Mine, will increase the depth of the mine JWANENG CUT 8 LIFE OF MINE our mining activities and the socio-economic from 400 to 650 metres. MINE STARTED PRODUCTION benefit they help generate. OPERATING STARTS 2035 1982 2018 ESTIMATE OF CARATS SOCIO-ECONOMIC BENEFITS TO BE RECOVERED 93 MILLION TONNES OF ORE 1,000 US$31bn 84 MILLION jobs supported during estimated contribution to extended operations Botswana’s economy

VENETIA, SOUTH AFRICA 1992 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 Venetia Mine will be extended underground, with two vertical MINE STARTED VENETIA UNDERGROUND LIFE OF MINE shafts, each seven metres in diameter, OPERATING PRODUCTION STARTS sunk to a depth of 1,080 metres. 1992 2022 2046

ESTIMATE OF CARATS SOCIO-ECONOMIC BENEFITS TO BE RECOVERED 94 MILLION For further information, refer to the Anglo American TONNES OF ORE 1,500 500 Ore Reserves and Mineral 132 MILLION Resources Report 2015 jobs supported during construction jobs expected to be supported www.angloamerican.com/investors/ during major underground works annual-reporting 8 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 9 INVESTING FOR THE LONG TERM

“GIVE A MAN A FISH AND YOU FEED HIM FOR A DAY, TEACH A MAN TO FISH AND YOU FEED HIM AND HIS FAMILY FOR LIFE! DEBMARINE NAMIBIA HAS CERTAINLY DONE ALL IT COULD TO GIVE ME THE OPPORTUNITY TO HELP MYSELF AS WELL AS MY FAMILY. NOT ONLY DID THE COMPANY SPONSOR ME FINANCIALLY, IT ALSO OFFERED ME A JOB AFTER COMPLETION OF MY STUDIES TO FURTHER DEVELOP MY CAREER.”

Left: Aletia Bock Senior Environmental Scientist, Debmarine Namibia

In another key investment during WE HAVE WORKED HARD OVER DIRECT EMPLOYEES BASED Helping local people grow their WeDuring also 2015,continued we continued to invest into WOMEN IN THE the year, Debmarine Namibia IN AFRICA capabilities and talents is one of WORKFORCE % spent nearly US$26 million on MANY YEARS TO ENSURE OUR the most important ways in which severalinvest in programmes several programmes designed the construction of SS Nujoma. we contribute to the long-term todesigned attract, to develop attract, and develop retain This new deep-water diamond BUSINESS DRAWS STRENGTH development of the countries exploration and sampling vessel, FROM THE DIVERSITY AND 81.3% where we operate. That is why in femaleand retain talent female in De talent Beers in 23.8% which will cost a total of (2014: 81.3%) 2015 we invested US$24.3 million duringDe Beers. 2015. 2014:(2014: 23.5% 23.5%) approximately US$170 million TALENT OF THE SOCIETIES in training and development, to build, was launched ahead of WHERE WE OPERATE. TRAINING AND up by 29 per cent from 2014 schedule in January 2016, and will DEVELOPMENT SPEND (US$18.8 million). search for diamond deposits in During 2015, we also continued the waters off the Namibian coast. EXAMPLES OF DE BEERS’ INITIATIVES MITIGATING BARRIERS TO WOMEN to invest in several programmes IN MINING IN SOUTH AFRICA As we continue to search for US$24.3m designed to attract, develop and diamond projects for the future, retain female talent in De Beers. Professional Management Development Programme we invested US$34 million (2014: (2014: US$18.8m) Women are under-represented For high-potential management candidates; the programme US$37 million) in our ongoing in the mining sector, making up is aligned with De Beers’ business objectives global exploration programme, just 16 per cent of the collective LOCAL AND HISTORICALLY DISADVANTAGED EMPLOYEES IN MANAGEMENT Personal Growth Accelerator Programme focusing on early-stage projects workforce1. While female Leadership development through self-awareness and resilience in South Africa, Canada and SOUTH AFRICA NAMIBIA BOTSWANA employees represent 23.8 per cent Botswana. A total of nine new of our business (2014: 23.5 per HISTORICALLY RACIALLY LOCAL CITIZENS IN The Achievers Programme kimberlite discoveries, a major cent), comparing well with the For young leaders; to build interpersonal and business skills indicator of the potential presence DISADVANTAGED DISADVANTAGED THE WORKFORCE (%) global mining industry average, SOUTH AFRICANS IN NAMIBIANS IN THE Foundational Learning Competence of diamonds, were made in 2015. THE WORKFORCE (%) WORKFORCE (%) we still have a long way to go. Recognising this, we were pleased English literacy and mathematical competence provided for SUPPORTING OUR PEOPLE that in South Africa De Beers’ individuals earmarked for potential learnerships 96.8 We have worked hard over many 88.4 88.3 96.3 efforts were acknowledged with 83.6 83.5 Technical Learnerships years to ensure our business draws the Standard Bank Top Gender Includes apprenticeships, engineering and metallurgy learnerships strength from the diversity and Empowered Company: Resources talent of the societies where we Award in 2015. Supervisory/Learnerships operate. Most of our global Includes energised leadership and supervisory learnerships employees are based in southern Africa (2015 and 2014: 81.3 per HISTORICALLY RACIALLY LOCAL CITIZENS IN Learnerships cent), where local or historically DISADVANTAGED DISADVANTAGED SENIOR MANAGEMENT (%) Learnerships offered to permanent employees and external leavers disadvantaged citizens comprise SOUTH AFRICANS IN NAMIBIANS IN SENIOR the majority of our workforce, and SENIOR MANAGEMENT (%) MANAGEMENT (%) Study Assistance Scheme increasingly lead our business, 69.2 Bursary Scheme supported by preferential 56.5 hiring and active skills and 50.0 50.0 Graduate Trainee Schemes development training. 21.4 22.2

2014 1 Source: www.mining.com/web/ 2015 can-the-mining-industry-diversify-itself/. 10 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 11 INVESTING FOR THE LONG TERM

SOCIO-ECONOMIC BENEFIT PREFERENTIAL PROCUREMENT programme in 2015. Through making a proportion of our Building Forever commits us TOTAL SOCIAL INVESTMENT TOTAL SOCIAL INVESTMENT SPEND Buying goods and services locally PERCENTAGE OF ROUGH rough diamond production DIAMONDS SOLD TO LOCAL to maximising the sustainable is another lever for socio-economic available to Sightholders for SIGHTHOLDERS IN 2015 AS A socio-economic benefit that our benefit. In 2015, we spent processing in producer countries, PERCENTAGE OF TOTAL ROUGH producer partner countries and US$1.1 billion – or 56 per cent of communities are able to create US$28.2m our beneficiation strategy helps DIAMOND SALES our total procurement budget – 1 create additional employment from their diamond resources – (2014: US $27.6m ) on local goods and services opportunities, supports today and far into the future. (2014: US$1.5 billion, 62.1 per 2015 government economic development This means actively supporting NUMBER OF PEOPLE DIRECTLY cent). We tailor our approach plans and aids the transition to 20% them to achieve their development BENEFITING from country to country: aspirations, to create sound post-mining economies. • In South Africa, we give priority VALUE SOLD foundations for long-term In 2015, we sold US$825 million to businesses that are owned, improvement in areas such worth of rough diamonds to empowered or influenced under as employment, education, 47,800 customers in producer countries, Africa 76.4% Historically Disadvantaged housing and public services. (2014: not reported) representing 20 per cent of our Americas 23.2% South African legislation US$825m Despite the financial challenges Other 0.4% total sales for the year (2014: (2014: US $1.6bn 1) of 2015, during the year we JOBS SUPPORTED THROUGH • We prioritise local and citizen- US$1.6 billion, 24 per cent). OUR ENTERPRISE DEVELOPMENT owned businesses in Botswana We also introduced new Supply increased our total social PROGRAMMES investment to US$28.2 million Agreements, which introduced 1 This figure does not include rough • Local providers are prioritised diamonds sold through the state- (2014: US$27.6 million), while more rigorous financial in Namibia, and Aboriginal owned Okavango Diamond Company focusing on improving our compliance criteria for customers, (Botswana). suppliers in Canada approach to the efficiency and designed to bolster third-party 1,544 confidence in the Sightholder effectiveness of our contribution THE BENEFITS OF BENEFICIATION to socio-economic development community and reduce business We continued to support around our mining operations. sustainability risks relating to the 1 Restated from previous figures participation in more of the in the 2014 Report to Society. ability to access finance. value-adding steps of diamond processing in producer partner SOCIO-ECONOMIC BENEFIT countries through our IN 2015 industry‑leading beneficiation

Through our socio-economic investment we: • provided support and LOCAL PROCUREMENT AS A PROPORTION OF TOTAL PROCUREMENT EXPENDITURE services that benefited more than 47,800 people • supported 1,544 jobs through our enterprise SOUTH AFRICA BOTSWANA NAMIBIA CANADA development programmes – Tokafala in Botswana and De Beers’ Zimele in South 70% 88% 41% 22% Africa. An evaluation of Tokafala’s impact in 2015 found that it had had an almost immediate positive Expenditure with Expenditure with Expenditure with Expenditure with effect on revenue growth, historically disadvantaged local companies local companies Aboriginal businesses with an average increase South Africans among participating companies of 60 per cent. Above: Pauline Phologolo (left), business owner in Botswana and beneficiary Preferential procurement is higher in South Africa where it is legislated, and in Botswana where Debswana has a business mandate to purchase of Tokafala. from local suppliers. In contrast, specialised mining methods are used in Namibia (alluvial and marine), narrowing the opportunity to purchase from Namibian companies. In Canada, preferential procurement refers to the purchasing of goods and services from Aboriginal-owned suppliers, Photo: Annie Griffiths and given this is a small percentage of the population, it impacts potential procurement opportunities. 12 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 13 DRIVING CHANGE

For a diamond to continue to symbolise some of the most DRIVING CHANGE ACROSS important and personal moments in a person’s life, our business and the broader diamond industry must continue to meet ever THE INDUSTRY AND more rigorous ethical standards. In 2015, we continued our efforts to drive responsible business behaviour – within De Beers, OUR BUSINESS among our partners, clients and contractors, and across the diamond industry as a whole – to protect consumer confidence in our brand and our product.

During the year, we marked We update the BPPs every year in We recognise that driving positive 10 years of the Best Practice response to emerging ethical risks. change across our own company Principles assurance programme During 2015, updates included is a vital prerequisite for helping (BPP). Created in 2003 and additional requirements to address the industry to set best practice launched in 2005, the BPPs human rights due diligence and standards. We continued to work set robust ethical, social, a focus on human trafficking. throughout the year in line environmental and business with our five-year sustainability standards that all De Beers In a significant step for our improvement plan, Good to Great, operations, our clients and industry, we partnered with six with notable performance substantial contractors must meet. other leading diamond producers improvements across our activities, in 2015 to form the Diamond including in relation to safety and During 2015, the BPPs: Producers Association (DPA), the environment. the first-ever representative • Provided independent assurance international organisation formed on the working conditions for by diamond producers. The DPA nearly 320,000 people across is chaired by Forevermark Chief the diamond industry worldwide Executive Stephen Lussier and (2014: 370,000). The reduction NUMBER OF YEARS THE BPPs through its mandate that includes HAVE BEEN RUNNING in coverage of the BPPs from sharing best practices in health 2014 is a result of a significant and safety, supply chain integrity decrease in production within and environmental management, the major manufacturing the DPA will help to provide a centres due to challenging 10 unified voice for producers in market conditions maintaining consumer confidence PEOPLE COVERED BY THE BPPs • Influenced the ethical working in diamonds. IN 2015 practices of nearly 3,000 entities 320,000 (2014: 370,000)

Left: Diamond sorting at DTC Botswana. 10 YEARS OF THE BPPs: PAGE 14 14 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 15 DRIVING CHANGE

BPPs: RAISING INDUSTRY STANDARDS FOR 10 YEARS

The aim of the BPPs is to ensure that consumers buying diamonds can rely on the professional, ethical and technical standards of the gem diamond industry. The BPPs help to prevent unacceptable business, 2007/08 2011/12 BPP requirements 2014 2015 Expansion to environmental and social practices. 2005 2010 fully aligned Additional Online BPP include all Mining requirements platform A pioneering with Responsible De Beers’ supplement added, enhanced initiative, the BPP Jewellery Council contractors added to including with criteria programme was standards (2007) address specific sourcing from to support launched across (2011) Expanded further environmental artisanal/ De Beers’ De Beers’ operations Expansion to to include to and social risks small-scale compliance and De Beers’ contractors relying Sightholders’ at mining mining, requirements to Sightholders on custom from contractors operations and human drive financial multiple Sightholders (2008) trafficking transparency (2012) GEOGRAPHIC REACH OF THE BPPs

72 The BPPs work to improve standards in 72 countries.

HOW THE BPPs WORK TO RAISE STANDARDS SCOPE UNIQUE RESPONSIVE AND CONSULTATIVE The BPPs span the full breadth of the diamond An ethical supply chain standard focused on The standards are responsive to changes pipeline from exploration to retail and cover compliance from its customers rather than in legislation and emerging industry risks. 320,000 people across 72 countries. just suppliers. ENFORCEABLE AND CONTRACTUAL SCALE INDEPENDENTLY VERIFIED We work with customers on compliance, They apply to businesses and factories that may The BPPs are audited by an independent third party. but impose sanctions if they fail to implement not even be directly dealing in diamonds mined One-third of BPP workbooks are desktop reviewed the requirements. by De Beers, but form part of a client’s group. and 10 per cent of sites have on-site audits. 16 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 17 DRIVING CHANGE

NATIONAL HIV/AIDS ADULT PREVALENCE RATES, 2015 THE ENVIRONMENT Energy is another critical input for Biodiversity continued to be an The drought experienced across our business, and we were pleased especially important focus area for CONTINUOUSLY to have ended 2015 with savings us in 2015. We have now completed southern Africa in 2015 impacted our business, employees and the of US$6.8 million over the last Biodiversity Value Assessments at NAMIBIA BOTSWANA communities in which we operate, two years as a result of achieving all our existing and new mines, IMPROVING OUR refocusing our long-term efforts carbon emission and energy-saving enabling us to fully understand on minimising water consumption targets. We also ran several other the biodiversity value of specific and identifying alternative projects during the year to assess areas affected by our operations. OWN STANDARDS 14% 22% sources of supply. Examples the potential for increasing the amount of renewable energy we We also managed some five of our improvement efforts in hectares for biodiversity 2015 included: generate across the business. These included: conservation for every hectare SOUTH AFRICA • An early-stage recycling project disturbed by our activities at our Orapa and Jwaneng Mines • A study into using solar energy during the year. And we hosted a major international conference in Botswana • An assessment of the use of attended by 180 delegates to kimberlite residue deposits, 19% • Reduced fresh water usage by 0.9 share the biodiversity insights (one of the ores in which per cent in 2015, to 37.9 million gained from research on our diamonds are found), m³ (2014: 38.2 million m³) conservation properties in to sequester carbon dioxide southern Africa that together comprise De Beers’ Diamond Route sustainability initiative. HEALTH AND SAFETY NUMBER OF FATALITIES, 2015 HIV/AIDS AND TUBERCULOSIS Health and safety is our number IN NUMBERS (2015) one priority, and we continued to Number of employees in work toward zero harm by raising Africa living with HIV 1,430 SAVINGS FROM REDUCED ENERGY standards across our business 0 USE AND CARBON EMISSIONS in 2015, delivering: (2014: 0) Number of employees tested 2013-2015 for HIV status in Africa 3,184 • Another fatality free year REDUCTION IN TOTAL New cases of HIV amongst 24 • A 15 per cent reduction in our RECORDABLE CASE employees in Africa FREQUENCY RATE, 2015 total recordable case frequency Number of employees on US$6.8m rate (2015: 0.53; 2014: 0.62) the HIV wellness 934 programmes in Africa REDUCTION IN FRESH WATER • A 110 per cent increase in the USAGE, 2015 reporting of serious incidents 15% Number of employees (2015 TRCFR: 0.53; 2014: 0.62) receiving antiretroviral 1,099 • A 0.24 per cent fall in the drugs in Africa proportion of our people exposed to stressors above the Percentage of workforce 0.9% with access to free and occupational exposure rate confidential HIV testing 100 (2014: 2.3 per cent fall). This and wellbeing programmes was despite the fact that certain Incidence of TB cases per exposures were reported for the 149 first time, such as diesel particle 100,000 full-time employees matter exposures in Snap Lake, New cases of TB 18 and coal dust exposure in Morupule Coal Mine

• Significantly lower HIV/AIDS Left: Geologists infection rates in De Beers at work in Canada. compared with national Far left: An employee checks averages across the southern aggregate at the Elizabeth Africa region Bay Mine treatment plant, Namibia. 18 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 19 WORKING IN PARTNERSHIP

During 2015, we deepened and extended the scope and reach WORKING IN of the many partnerships that sit at the heart of our business. These are fundamental to us and include our 50/50 joint PARTNERSHIP ventures with governments, the way we engage with customers and communities, and our work with external experts and industry bodies to find shared solutions to important sustainability challenges.

PARTNERING WITH • The partnership is the single NUMBER OF YEARS IN 50/50 GOVERNMENTS largest contributor to the PARTNERSHIP WITH THE country’s economy apart from GOVERNMENT OF THE REPUBLIC Our partnerships with OF BOTSWANA governments in producer the Government itself countries are vital to ensuring One of the highlights of 2015 was a the long-term sustainability of conference co-hosted in our operations. For example, by the Government, De Beers 46 our 50/50 joint venture and the international think-tank partnership with the Government Chatham House, which brought NUMBER OF YEARS IN 50/50 of the Republic of Botswana is together international and local PARTNERSHIP WITH THE acknowledged to be one of the experts to discuss sustainable GOVERNMENT OF THE REPUBLIC world’s most successful public development ideas for Botswana’s OF NAMIBIA private partnerships. Much of this post diamond mining economy. success is due to the extent to which our aspirations are aligned: The discussions included the need to continue to focus on 21 • More than 70 per cent of our the diversification of Botswana’s diamond production comes economy through the transfer NUMBER OF YEARS IN 74/26 from Botswana of skills and entrepreneurship PARTNERSHIP WITH PONAHALO • Twenty-seven per cent of the programmes such as Tokafala HOLDINGS, SOUTH AFRICA country’s GDP comes from and the investment in the people diamonds of Botswana to truly connect resources and society. 9 Live-streamed to over 1,000 people, with the hashtag seen 12.5 million times, this event brought Left: State-of-the-art diamond Botswana’s future into focus sorting and valuing centre, around the world. Gaborone, Botswana, a result of the 50/50 partnership between De Beers and the Government of Botswana. 20 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 21 WORKING IN PARTNERSHIP

In 2015, we also announced an agreement, in principle, for a 10-year sales agreement for ECO PARTNERSHIPS RESTORATION the sorting, valuing and sale of ECOLOGY FRAMEWORK Namdeb Holdings’ diamonds A restoration ecology framework was developed (including production from TO PROTECT TREASURE outlining that restoration both Namdeb and Debmarine planting would happen Namibia), as well as our continued PRE-MINING ASSESSMENT during mining. BIODIVERSITY OF PLANTS PARTNERSHIPS support for local beneficiation, OF THE DESERT and a commitment to make The presence of the Recognising that expert Juttadinteria albata was input would be critical, more diamonds available for identified during partnerships with academia manufacturing businesses a baseline biodiversity and leading experts operating in Namibia. A small, pretty, low-growing white flower, impact assessment. were sought. ION The agreement will be the longest identified while exploring for diamonds, is AT 2. R PR LO O P J sales contract ever agreed in the X E a symbol of Namdeb’s focus on conserving E C EARLY PLANNING . T two-decade partnership, and 1 S RESEARCH AND EXPERIMENTS demonstrates our commitment biodiversity and ensuring ‘no significant FOR THE FUTURE E Beginning with the end R The Millennium Seed Bank at to ensuring that diamonds from U net loss of biodiversity’. in mind, the partnerships S SAFEGUARDING Kew Royal Botanic Gardens

O

Namibia continue to play a key will help ensure the survival L BIODIVERSITY IN conducted controlled

C

. laboratory experiments into

role in the socio-economic It’s the Juttadinteria albata, an increasingly rare plant of this significant plant and 4 SENDELINGSDRIF MINE the plant’s very specific development of the country. support potential sustainable accorded the conservation status of ‘vulnerable’ by livelihood activities, including growth requirements. PARTNERING WITH the International Union for Conservation of Nature. eco-tourism. EXTERNAL EXPERTS The flower is found in Namibia’s Succulent Karoo region, one of the world’s only desert biodiversity 3. SE As we work toward leaving a OPER L PHA hotspots, known for its spectacular landscape, BACKFILLING OF ATIONA FIELD TRIALS positive legacy for our operations, MINED-OUT VOIDS AND MONITORING its geology, and the unique plant and animal life we know that we cannot achieve The research has led to the Under Gobabeb’s supervision, everything on our own. We also it supports. development of an innovative, field trials were conducted by recognise that there is often value integrated mine design, two students. Waste materials The region is also home to some of the world’s most using backfilling to restore were heaped, and then seeds for the wider scientific community valuable diamonds, and the Sendelingsdrif Mine. disturbed earth and carry REHABILITATION sown, to better understand in some of the research and Given the plant’s limited distribution, activities out rehabilitation TASK TEAM the Juttadinteria albata during operations. habitat preferences. development work that we around Sendelingsdrif could destroy a significant Rehabilitation progress undertake. These two factors percentage of the total global population if not is monitored by a regularly lead to partnerships rehabilitation task team of managed appropriately. Success in restoring this mining employees and between De Beers and outside species will largely depend on how well its habitat partnership scientists. experts; for example, in 2015: needs are understood. • our ongoing relationship with the Namdeb saw that an in-depth understanding of the UK’s Camborne School of Mines, biology and ecology of the plant was needed. So a led to the development of a new plan was developed to work in partnership with climate model for our operations the Gobabeb Research and Training Centre, the in Venetia, South Africa University of Namibia, and the Millennium Seed • a partnership with academics Bank project at Kew Royal Botanic Gardens to BENEFITS OF THE SENDELINGSDRIF RESTORATION ECOLOGY PROGRAMME PARTNERSHIP from Kew Royal Botanic Gardens establish how best to restore the plant’s habitat after in the UK, the Gobabeb Research mining activities to protect both the plant and one 1. Provides Namdeb with 2. Enables Sendelingsdrif to and Training Centre in Namibia of the world’s most biodiverse landscapes, so it can ecological information and become an experimental and the University of Namibia be enjoyed for generations to come. advice on how to achieve the platform on which to conduct continued work to protect Sendelingsdrif Ecological innovative ecological research Juttadinteria albata, a highly Restoration Plan cost- 3. Contributes to Namibian society endangered plant in Namibia’s effectively by facilitating post-graduate Succulent Karoo region training and capacity (see case study opposite). Right: Juttadinteria albata plant in bloom. 22 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015 23 WORKING IN PARTNERSHIP

PARTNERING WITH COMMUNITIES We also work through partnerships WE WILL CONTINUE We aim to build relationships with to ensure that local people can the communities where we operate gain the skills needed to benefit TO DELIVER ON OUR based on mutual respect and trust, from employment opportunities COMMITMENT TO forging partnerships to help meet with De Beers and other their development aspirations and businesses. One example of this in BUILDING FOREVER. build lasting value beyond the life 2015 was the ongoing partnership of our mines. between De Beers, Aurora College and the Mine Training Society in Our work in 2015 to understand Canada. The partnership delivers how to create economically and a 12-week technical programme socially sustainable communities that introduces students to the included the shared planning of skills they need to do a variety the transfer to local authorities of of jobs. This includes classroom our two remaining ‘closed’ mining work and hands-on training towns – Oranjemund (see case using a high-tech simulator study opposite) in Namibia and where they experience what it’s Orapa in Botswana. A key element like to drive a scoop tram and haul of such planning is developing a truck. Students are also offered Below: Children at Bathoen post-mining vision that actively work experience placements House Primary School, helps us to support and enable within De Beers’ mines during a joint Debswana and economic diversification. Botswana Government their studies. owned and managed primary school. A DIAMOND IN THE DESERT Seventeen focus groups were NUMBER OF CARATS RECOVERED organised, representing a range FROM THE ORANJEMUND AREA SINCE Sitting between the of views, and spontaneous THE TOWN WAS ESTABLISHED IN 1928 world’s oldest desert, discussions were held in public spaces. Two hundred and three the Namib, and written comments were received, Namibia’s skeleton coast, as well as 300 ideas for ‘Dreams 70 MILLION for Oranjemund 2030’ from Oranjemund is a town community centres and churches. built on diamonds. Schoolchildren submitted art, IN 2015, NAMDEB AND stories and poetry. ORANJEMUND TOWN Seventy million carats have been recovered from operations based Namdeb held an open meeting COUNCIL STARTED out of this town since it was to share the findings. Then there established in 1928. However, was a two-day workshop with A CONSULTATION given that this is a company mine management and the Town PROCESS WITH LOCAL town, the question is: what will Council to prepare for action. STAKEHOLDERS THROUGH Oranjemund’s future be when Results of the consultation have the mine eventually closes? been fed back into the planning THE ‘ORANJEMUND 2030’ In 2015, Namdeb and process for Oranjemund 2030. PROGRAMME, TO IDENTIFY Oranjemund Town Council It is only one stage of the ongoing started a consultation process consultation by the Town Council VISIONS FOR ORANJEMUND with local stakeholders to ensure that the future of BEYOND MINING. through the ‘Oranjemund 2030’ Oranjemund is a vision shared programme, to identify visions by all stakeholders. for Oranjemund beyond By investing now and building mining. The process touched partnerships that last, we are all parts of society from the working together with stakeholders unemployed to senior managers to chart a course for Oranjemund, Above: Displays and business owners, from beyond diamonds. of ‘Dreams for youth to people near retirement. Oranjemund 2030’ art, stories and poetry. 24 OVERVIEW PRIORITIES LOOKING FORWARD De Beers | Report to Society in Review | 2015

Front cover image: Sunset at Orapa Game LOOKING FORWARD Park, near the Orapa Mine in Botswana, a As we look ahead, we are better prepared than ever to continue to deliver conservation area set up by Debswana and its on our commitments and meet future challenges. business partners. Photo: Annie Griffiths Left: Diamond Route – Rooipoort Nature Reserve and the Vaal River. Building on our investment in 13-year life. With this and our sustainability improvement plan, production, people and socio- other investments, such as the including across safety, socio- economic benefit throughout Cut 8 project at Jwaneng Mine economic benefit and our water 2015, we will continue to focus in Botswana, the Venetia and energy use. on improving our sustainability Underground project in South Above all, by working with performance and approach in 2016. Africa, and the SS Nujoma our partners in governments, exploration vessel in Namibia, we communities and business, we 2016 will be an important year will ensure that diamond revenues will continue to deliver on our for De Beers as we see significant continue to play an important role commitment to Building Forever, progress made across our core in the economic development of ensuring that the foundations projects, including the Gahcho our producer countries far into Kué Mine in Canada. remain solid for years to come. FEEDBACK the future. We appreciate your feedback on the On track to produce first ore in In 2015, we saw improvements 2015 Report to Society in Review or the second half of 2016, Gahcho any other aspect of our sustainability made across a number of measures For more on how we’re Kué is expected to deliver around and we aim to build upon these performance. 54 million carats over its estimated Building Forever, visit in 2016, through our long-term www.debeersgroup.com/buildingforever Please contact us at: Corporate Affairs De Beers UK Ltd 17 Charterhouse Street, London EC1N 6RA Email: buildingforever@ debeersgroup.com Tel: +44 (0) 20 7404 4444 www.debeersgroup.com ENVIRONMENTAL INFORMATION This review is printed on Marazion Ultra, which has been sourced from well managed forests independently certified according to the rules of the Forest Stewardship Council®. Designed and produced by

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