Sustainability Report 2020 Re-imagining mining to improve people’s lives Transforming the very nature of mining for a safer, cleaner, smarter future. Using more precise technologies, less energy and less water, we are reducing our environmental footprint for every ounce, carat and kilogram of precious metal or mineral. We are combining smart innovation with the utmost consideration for our people, their families, local communities, our customers, and the world at large – to better connect precious resources in the ground to all of us who need and value them. And we are working together to develop better jobs, better education and better businesses, building brighter and healthier futures around our operations in our host countries and ultimately for billions of people around the world who depend on our products every day. Sustainability performance Safety and Health Environment Socio-political People Work-related fatal injuries Energy consumption Social Way V3.0 Women in senior saving implementation(1) management 2 8% 80% 27% 2019: 4 2019: 5% of annual targets achieved on 2019: 24% Target: 0 Target: 8% saving by 2020 journey to full implementation Target: 33% by 2023 against business as usual by end-2022 (BAU) projection 23% of all requirements met Total recordable case Greenhouse gas Local procurement spend Women in the workforce frequency rate emissions saving 2.14 34% $10.0bn 23% 2019: 2.21 2019: 34% 2019: $9.1bn 2019: 21% Target: Year-on-year reduction Target: 22% saving by 2020 against BAU projection New cases of Water withdrawals Taxes borne ($m) Voluntary labour turnover occupational disease saving 30 10% $2.8bn 1.5% 2019: 39 2019: n/a 2019: $3.0bn 2019: 2.3% Target: Year-on-year reduction Target: 20% saving by 2020 Levels 4-5 Jobs supported by enterprise environmental incidents development initiatives 0 137,777 2019: 0 2019: 132,082 Target: Zero Further information around our key sustainability Targets Key Target met On track/in progress Target not met performance indicators can be found on page 18 (1) In 2020, we launched a new integrated social performance management system (Social Way 3.0) which has raised performance expectations and has resulted in continued improvement in our social performance. Prior to 2020, our target was full compliance against our previous standard. As we implement the new standard, sites have been required to set milestone targets on the way to the requirement of full compliance by 2022. Data for 2020 and 2019 is, therefore, not comparable. Sites are expected to have fully implemented the Social Way 3.0 by the end of 2022. About this report This report is produced to provide our stakeholders with a Contents transparent account of how we addressed the most material sustainability issues our company faced during 2020. About this report Playing our role in society 01 Purpose and scope of this report 64 Public policy engagement The report is aimed at those who work for us, non-governmental 66 Social performance organisations (NGOs), investors, customers, suppliers and Our approach 68 Cultural heritage 02 Our business at a glance governments. In addition to reporting, we use a variety of tools 69 Responsible supply chain to ensure that we engage meaningfully with local stakeholder 04 Chairman’s statement management groups on matters that are of specific interest to them. Individual 06 Chief Executive’s statement 72 Business conduct business unit reports are also published annually for the De Beers, 08 Our Business Model 73 Socio-economic contribution Platinum Group Metals, Copper and Kumba Iron Ore businesses, 10 Purpose to Value 76 Collaborative Regional 11 Guided by our clear Purpose and provide greater detail on performance. These are available Development on the Anglo American website. The Anglo American Integrated Sustainability at Anglo American 77 Product stewardship Annual Report includes additional information about the 12 Our holistic approach to 78 Human rights management, operations and financial performance of the Group. sustainability Helping our people thrive TM 13 FutureSmart Mining 84 Organisational effectiveness The Anglo American chief executive and the chairman of the 14 Sustainable Mining Plan 85 The future of work Board’s Sustainability Committee have reviewed and approved 15 Collaborative Regional 86 Talent attraction and retention this report. Development 87 Learning and development 16 Global stretch goals 89 Inclusion and diversity Scope of the report 18 Measuring our performance 91 Employee relations and The Sustainability Report covers subsidiaries and joint ventures over which engagement the Anglo American Group has management control or acts as operator. Our comprehensive It does not include independently managed operations, such as Cerrejón, response to Covid-19 Governance and management approach Collahuasi and Samancor, unless specifically stipulated where there have Our material matters 93 Governance and been significant incidents. It also excludes De Beers’ non-managed joint Adopting a zero mindset operations in Namibia and Botswana from our reporting scope, unless managment approach 26 Safety specifically stipulated in the reporting. 30 Health Data and Assurance References to Anglo American plc 33 Responsible mine closure and 96 Assurance statement In this report, references to “Anglo American”, the “Anglo American Group”, divestment 99 Basis for the preparation of key the “Group”, “we”, “us” and “our” are to refer to either Anglo American plc and 35 Mineral residue (tailings) sustainability data its subsidiaries and/or those who work for them generally, or where it is not management 101 Reporting scope necessary to refer to a particular entity, entities or persons. Tackling climate change 102 2020 data 38 Tackling Climate Change 106 Commitments to external The use of those generic terms is for convenience only, and is in no way initiatives and memberships indicative of how the Anglo American Group or any entity within it is 45 Disclosures related to the recommendations of the TCFD 107 GRI Standards Contents Index structured, managed or controlled. Anglo American produces Group-wide 113 ICMM and Global Compact policies and procedures to ensure uniform practices and standardisation Protecting our natural environment Principles across the Group, but is not responsible for the day-to-day implementation 48 Environmental management 114 Contacts and other information of such policies which constitute prescribed minimum standards only. 51 Biodiversity Group operating subsidiaries are responsible for adapting those policies 54 Water and procedures to reflect local conditions where appropriate, and for 58 Circular economy implementation, oversight and monitoring within their specific businesses. 59 Waste management Anglo American subsidiaries, and their management, are responsible for 61 Air quality their own day-to-day operations, including, but not limited to, securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Assurance and basis of preparation IBIS Consulting has provided independent assurance over selected sustainability key performance indicators, and on our statement Integrated Annual of compliance with the International Council on Mining and Metals (ICMM) Report 2020 Our reporting suite Sustainable Development Framework Principles and reporting requirements. You can find this report and others, including The basis of preparation of this report takes into account guidance from the Sustainability Report and the Ore Reserves Integrated Annual the ICMM Sustainable Development Framework, the Global Reporting and Mineral Resources Report, on our Report 2020 Initiative (GRI) Standards and related Mining and Metals Supplement, the corporate website. EU Non-Financial Disclosure Directive, the UN Global Compact Reporting For more information visit: Framework, and the UN Guiding Principles Reporting Framework. angloamerican.com/investors/ annual-reporting Forward-looking statements This document includes forward-looking statements. For information regarding forward-looking statements, please refer to the inside back cover FutureSmart MiningTM of this document. In order to deliver on our purpose we are changing the way we mine through smart Units used in this report innovation across technology, digitalisation ‘Tonnes’ are metric tons, ‘Mt’ denotes million tonnes, ‘kt’ denotes thousand and sustainability. tonnes, ‘Mct’ denotes million carats and ‘koz’ denotes thousand ounces; To discover more about the ‘$’ and ‘dollars’ denote US dollars and ‘cents’ denotes US cents. future of mining, visit: angloamerican.com/futuresmart/ futuresmart-mining Social Channels Front cover Image: AngloAmerican @angloamerican Anglo American In the far north of South Africa, a game scout pauses to inspect grass species at Venetia Limpopo Nature Reserve, angloamerican angloamericanplc which forms part of the Diamond Route established by De Beers. 01 Anglo American plc Sustainability Report 2020 At a glance Our business at a glance Anglo American is a leading global mining company, with a world class portfolio of mining and processing operations and undeveloped resources, with more than 95,000 people Our overview video gives a complete working for us around the world, in 15 countries. introduction to what we do and our We provide many of the essential metals and minerals that are ambitions for the future youtu.be/6TKaHzCT4YY fundamental to the transition to