Presentation to socially responsible investment analysts 2012

1,123 views

Published on

Anglo American’s leadership team present our 2012 safety and sustainable development performance to the socially responsible investment (SRI) analyst community.

You can find out more about Anglo American here:
http://www.angloamerican.com/
http://www.facebook.com/angloamerican
http://www.twitter.com/angloamerican
http://www.youtube.com/angloamerican
http://www.flickr.com/photos/angloamerican
http://www.linkedin.com/company/anglo-american

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,123
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Presentation to socially responsible investment analysts 2012

  1. 1. PRESENTATION TO SOCIALLYRESPONSIBLE INVESTMENT ANALYSTS18 JUNE 2013
  2. 2. AGENDA• Safety briefing• Chairman’s welcome• Overview of key issues and Anglo American’s approach• 2012 performance• Q&A
  3. 3. WELCOMESIR JOHN PARKER, CHAIRMAN
  4. 4. OVERVIEW OF PERFORMANCEMARK CUTIFANI, CHIEF EXECUTIVE
  5. 5. 5SUSTAINABILITY AND MININGResponsible mining ever-more important to value generation• Mining is one of, if not the, most important industrial activities in theworld:– Against that measure, footprint is relatively limited at a global level– However, impacts at more local levels continue to require a strong focus• Sustainability issues are at the heart of value delivery in the miningsector• As an industry we have made much progress in recent years, but thecontext we are operating in is changing and we need to respond:– A growing intolerance of harm of any kind– An increasing desire by host communities and countries to participate inthe wealth generated by mining– Declining tolerance for unethical business practices– Expectations for more transparency on a wider range of issues– More voices in the governance space: governments, NGOs, investors,academics, customers and consumers• Vital that the industry continues to engage with external voices on allaspects of our business:– Vatican engagement: dialogue with the Pontifical Council on Justice andPeace– Kellogg Innovation Network: mining company of the future projectPeopleHealth and safetyEnvironmentalperformanceSocio-politicalProductionCostFinancial returnsValue Drivers
  6. 6. 6IMPACT OF PHOSPHATE FERTILISERSPhosphate fertilises use significantly increases agricultural productivity and reduce land take• Phosphate is required by all organisms to live• It is one of three essential ingredients to fertilisers used at the agribusiness to improve crop quality andmeet increasing food demand• Phosphate Fertiliser is a key factor for increase on crop yields (45% productivity increase)Without P fertiliser With P fertiliserProductivity Benefits
  7. 7. 7SUSTAINABILITY AND MININGResponsible mining ever-more important to value generation• Mining is one of, if not the, most important industrial activity in theworld– Against that measure, footprint is relatively limited at a global level– However, impacts at more local levels continue to require a strong focus• Sustainability issues are at the heart of value delivery in the miningsector• As an industry we have made much progress in recent years, but thecontext we are operating in is changing and we need to respond:– A growing intolerance of harm of any kind– An increasing desire by host communities and countries to participate inthe wealth generated by mining– Declining tolerance for unethical business practices– Expectations for more transparency on a wider range of issues– More voices in the governance space: governments, NGOs, investors,academics, customers and consumers• Vital that the industry continues to engage with external voices on allaspects of our business:– Vatican engagement: dialogue with the Pontifical Council on Justice andPeace– Kellogg Innovation Network: mining company of the future projectsPeopleHealth and safetyEnvironmentalperformanceSocio-politicalProductionCostFinancial returnsValue Drivers
  8. 8. 8ANGLO AMERICAN’S APPROACH TO RESPONSIBLE MININGInitial impressions• Strong commitment to safety, underpinnedby industry-leading management systems• A leader on health:– HIV/AIDS and TB– Broader community interventions• Strong expertise in community development– Local procurement– Enterprise development– Municipal capacity development partnershipwith Development Bank of Southern Africa• A focus on strong environmentalmanagement– ECO2MAN and WETT tools for energy,carbon and water efficiency deliveringfinancial and environmental benefitsExamples of Excellence• Strong focus on risk and opportunitymanagement across all relevant functions• High degree of business relevance for thesustainability initiatives identified• The company is aware of and is respondingto external expectations• An understanding of how responsible miningbenefits the bottom line:– Risk management– Operational efficiencies– Partner of choice• Natural tendency to engage, and to workwith a wide variety of partners– NGOs, academics, governments andbusiness partnersAnglo American’s Approach
  9. 9. 9EARLY THOUGHTS ON WAYS FORWARDInitial work has identified four cross-cutting themes that will yield valueEnsuring that we do no harm to our stakeholders and theenvironment, and that we respect human rights• Example: Enhanced focus on risk assessment and management acrossall sustainability dimensionsFocussing our efforts to spread the benefits of mining, and to useour resources and expertise for greater societal benefit, including tothe benefit of the most vulnerable in our host countries• Example: Scaling-up local procurement, enterprise development andlocal institutional capacity development programmesEnsuring that we make the most efficient use of the considerableresources we devote to sustainable development within AngloAmerican• Example: Reviewing the level at which we make decisions on socialinvestmentAnglo American has been actively addressing SRI issues for many years. Strategy work has foundscope to further improve performance and value-add from sustainability initiativesShowing Care andRespect toStakeholders and theEnvironmentSocial DevelopmentInitiativesEffectiveness andEfficiencyThematic areas Potential medium to long term strategic imperativesOngoing andbroad-basedengagementunderpinsand informsall activitiesReviewing the businesses we invest in, and the policies andstandards we operate our business by• Example: Exploring options for a responsible mine certificationprogrammePortfolio andGovernance Issues
  10. 10. 10SAFETYSafe production is our number one priorityGroup Safety Leadership Summit, Apr 2012:• Focus on leadership and accountabilitySouth Africa Contractor Health and Safety Summit,November 2012:• Improve safety standards• Extend focus of contractor engagement to broaderwelfare issuesIn 2012, 13 people lost their lives as a result of work-related activities (2011: 17):• 7 losses of life recorded at Platinum, a 42%improvement on 2011• LTIFR dropped to 0.60124 sustainability site audits / reviews completedin 2012Key programmes to drive continued improvement:• Visible Felt Leadership• Learning From Incidents• Operational Risk Management44 402820 15 17 131.16 1.151.040.760.64 0.64 0.602006 2007 2008 2009 2010 2011 2012Fatalities LTIFRLearning From IncidentsPerformance
  11. 11. 11Occupational health• Focus on health risk management and reducing exposure to health hazards.• Emphasis on control effectiveness, health incident reporting and healthimprovement plans• Ensuring contractor compliance with Anglo American occupational healthstandards.• Occupational disease incidence decliningHealth and wellness• Health screening and supporting a healthy lifestyle• Extending our health and wellness programmes, includingHIV and TB management, to all long-term contractors• Pledged to join the Global Nutrition for Growth CompactFamilies and communities• Health systems strengthening in communitiesassociated with our operationsHealth information systems• The “glue” ensuring continuity of healthcare• “theHealthSource” commended atthe Global Business Coalition onHealth Business Action on HealthAwards May 2013HEALTHZero harm to healthGlobalHealth;CommunitiesFamiliesHealth InsuranceEmployee Health and WellnessIncluding HIV/AIDS and TBOccupational HealthAnglo American Occupational Health WayOccupational MedicineLeading and Lagging IndicatorsBenchmarking Standards Guidelines Support AssuranceHealth ManagementInformation SystemsOccupational HygieneLeading Indicators
  12. 12. 13Increasing expectations beyond business-as-usual contributions• Continuing to embed government relations planningprocesses across all key geographies• Policy debates around the governance of theextractive sector have remained very active, atnational and international level– Dodd Frank and EU Accounting Directive– G8 revenue transparency and beneficial ownershipinitiatives• Successful resolution of the Anglo American Surnegotiations in Chile• Secured lifting of injunctions affecting Minas Rioproject• Strong government support for Quellaveco followingsuccessful conclusion of dialogue table• Working with government in South Africa– Positive investment climate– Enhancing developmental outcomes from miningGOVERNMENT RELATIONS
  13. 13. 14SOCIAL PERFORMANCEContinued improvement in key programmesSEAT 3 finalised and made freely available• SEAT v3 reflectsdevelopments in businessand human rights, andfocuses on core businessrole in development• Inputs from Partner NGOsCARE, FFI andInternational Alert• Freely available on AngloAmerican website inEnglish, French, Portuguese and Spanish• SEAT v3 won IAIA’s 2012 “Corporate Initiative Award”• Strong early results from local procurementprogramme: share going to communities rose from9.5% to 11.3% of our $14 billion procurement budget• Enterprise development programmes expand further:− New initiatives launching in Botswana, Brazil andPeru and further growth in South Africa• Further increases in compliance with Anglo AmericanSocial WayNearing full compliance with the Social WayEnterprise development programmes
  14. 14. Q&A

×