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Creating Value with the Future in Mind - Anglo American South Africa

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Overview<br />

01 Cynthia Carroll<br />

addresses a meet<strong>in</strong>g<br />

of <strong>the</strong> Tripartite Health<br />

and Safety Initiative,<br />

a collaborative<br />

effort between<br />

<strong>Anglo</strong> <strong>American</strong>,<br />

labour unions and<br />

<strong>South</strong> <strong>Africa</strong>’s<br />

Department of<br />

M<strong>in</strong>eral Resources.<br />

01<br />

We tailor our health programmes to<br />

meet specific local needs. For example,<br />

<strong>in</strong> Brazil we cont<strong>in</strong>ued to run our<br />

successful sexual and reproductive<br />

education programme <strong>with</strong> Reprolat<strong>in</strong>a<br />

aimed at prevent<strong>in</strong>g HIV <strong>in</strong>fection <strong>in</strong><br />

young women <strong>in</strong> particular.<br />

Secur<strong>in</strong>g water and<br />

adapt<strong>in</strong>g to climate change<br />

Prepar<strong>in</strong>g for climate change is<br />

essential for protect<strong>in</strong>g <strong>the</strong> future of<br />

our bus<strong>in</strong>ess. We are f<strong>in</strong>d<strong>in</strong>g new ways<br />

to reduce our energy usage, work<strong>in</strong>g<br />

<strong>with</strong> experts to understand <strong>the</strong><br />

implications of climate change <strong>in</strong> our<br />

key locations, and <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>in</strong>novative<br />

technologies to cut carbon emissions.<br />

With more than 80% of our operations<br />

and planned projects <strong>in</strong> water-stressed<br />

areas, we must also f<strong>in</strong>d ways to secure<br />

our own water needs <strong>with</strong>out<br />

compromis<strong>in</strong>g <strong>the</strong> resource for o<strong>the</strong>rs.<br />

Four of our operations – Copebrás<br />

Catalão, Barro Alto, Mogalakwena, and<br />

Waterval smelter – now recycle more<br />

than 90% of <strong>the</strong>ir water. Across <strong>the</strong><br />

Group, 72% of <strong>the</strong> water we use is<br />

recycled – sav<strong>in</strong>g <strong>the</strong> equivalent of an<br />

Olympic swimm<strong>in</strong>g pool of water every<br />

two hours, every day.<br />

Our water target-sett<strong>in</strong>g tool, WETT,<br />

and our energy management tool<br />

ECO 2<br />

MAN rolled out last year are<br />

deliver<strong>in</strong>g results. Our <strong>in</strong>vestment <strong>in</strong><br />

60 water-sav<strong>in</strong>gs projects achieved a<br />

sav<strong>in</strong>g of 6.8% aga<strong>in</strong>st our projected<br />

water usage. On <strong>the</strong> energy front,<br />

223 low-carbon and energy sav<strong>in</strong>gs<br />

projects yielded $75 million worth<br />

of energy sav<strong>in</strong>gs. We also saved<br />

3.3 million tonnes of carbon dioxide<br />

equivalent emissions as a result<br />

of <strong>the</strong>se projects and methane<br />

management programmes at<br />

Metallurgical Coal <strong>in</strong> Australia –<br />

<strong>the</strong> equivalent of remov<strong>in</strong>g 630,000<br />

cars off <strong>the</strong> road.<br />

Engag<strong>in</strong>g <strong>with</strong> communities<br />

No bus<strong>in</strong>ess operates <strong>in</strong> isolation<br />

and our ability to create a susta<strong>in</strong>able<br />

bus<strong>in</strong>ess is <strong>in</strong>extricably l<strong>in</strong>ked to our<br />

stakeholders – most directly <strong>with</strong> our<br />

employees and <strong>the</strong> communities<br />

around our operations, but equally, <strong>with</strong><br />

<strong>the</strong> stakeholders who <strong>in</strong>directly affect<br />

or are affected by what we do, <strong>in</strong>clud<strong>in</strong>g<br />

governments, shareholders, as well as<br />

partners and suppliers.<br />

If we are to genu<strong>in</strong>ely embed<br />

susta<strong>in</strong>ability <strong>in</strong>to our bus<strong>in</strong>ess, we<br />

must understand <strong>the</strong>ir needs, concerns<br />

and aspirations, as well as <strong>the</strong><br />

susta<strong>in</strong>ability risks affect<strong>in</strong>g our<br />

bus<strong>in</strong>ess, and consider <strong>the</strong>m <strong>in</strong> our<br />

decision-mak<strong>in</strong>g processes as we<br />

develop new m<strong>in</strong>es and cont<strong>in</strong>ue to<br />

improve our exist<strong>in</strong>g operations.<br />

Our aim is always to seek to listen and<br />

build trust <strong>with</strong> our stakeholders<br />

through open channels of dialogue so<br />

that people are free to ask questions<br />

about our activities. Like most<br />

relationships, it’s not always smooth<br />

sail<strong>in</strong>g, and we don’t always get it<br />

right, but we rema<strong>in</strong> committed to<br />

keep<strong>in</strong>g <strong>the</strong> channels open and <strong>the</strong><br />

dialogue go<strong>in</strong>g.<br />

The <strong>in</strong>dustrial unrest we saw <strong>in</strong> <strong>South</strong><br />

<strong>Africa</strong> last year, that took such a tragic<br />

toll on communities <strong>in</strong> Rustenburg and<br />

broader society, highlights <strong>the</strong> fragility<br />

of this process. It is imperative that all<br />

of us <strong>in</strong> <strong>the</strong> <strong>South</strong> <strong>Africa</strong>n <strong>in</strong>dustry –<br />

m<strong>in</strong><strong>in</strong>g companies, government<br />

and trade unions alike – renew our<br />

efforts <strong>with</strong> <strong>the</strong> utmost vigour to f<strong>in</strong>d<br />

a better way of do<strong>in</strong>g th<strong>in</strong>gs <strong>in</strong> <strong>the</strong><br />

future. I believe that if <strong>the</strong> m<strong>in</strong><strong>in</strong>g<br />

<strong>in</strong>dustry tackles social issues <strong>with</strong><br />

determ<strong>in</strong>ation, partner<strong>in</strong>g <strong>with</strong> our<br />

stakeholders, we can <strong>in</strong>crease <strong>the</strong> pace<br />

of change, eventually achiev<strong>in</strong>g last<strong>in</strong>g<br />

prosperity and mak<strong>in</strong>g a positive<br />

difference to <strong>the</strong> communities around<br />

which we operate.<br />

Last year, we<br />

achieved <strong>the</strong><br />

highest score<br />

<strong>in</strong> <strong>the</strong> m<strong>in</strong><strong>in</strong>g<br />

<strong>in</strong>dustry <strong>in</strong><br />

<strong>the</strong> Dow Jones<br />

Susta<strong>in</strong>ability<br />

Index, hav<strong>in</strong>g<br />

featured <strong>in</strong><br />

<strong>the</strong> <strong>in</strong>dex for<br />

10 consecutive<br />

years.<br />

Where possible, we try to use our<br />

core bus<strong>in</strong>ess to add value, for<br />

example, by nurtur<strong>in</strong>g and support<strong>in</strong>g<br />

local suppliers. In 2012, we <strong>in</strong>itiated<br />

some excit<strong>in</strong>g new partnerships <strong>with</strong><br />

NGOs and local governments <strong>in</strong> Brazil<br />

and <strong>South</strong> <strong>Africa</strong> to help improve<br />

<strong>the</strong> delivery of municipal services<br />

to citizens. Globally our enterprise<br />

development <strong>in</strong>itiatives <strong>in</strong> Chile,<br />

Brazil and <strong>South</strong> <strong>Africa</strong> cont<strong>in</strong>ue to<br />

deliver outstand<strong>in</strong>g results. Close<br />

to 65,000 jobs have been created<br />

and more than 40,000 bus<strong>in</strong>esses<br />

supported. Around half of <strong>the</strong>se<br />

bus<strong>in</strong>esses are run by women or<br />

young people <strong>in</strong> rural areas.<br />

A bright future ahead<br />

As I reflect on my six years as<br />

<strong>Anglo</strong> <strong>American</strong>’s chief executive, I am<br />

proud to say that <strong>the</strong> organisation has<br />

made significant progress to embed<br />

susta<strong>in</strong>ability <strong>in</strong>to its core practices<br />

and decision-mak<strong>in</strong>g processes.<br />

This is reflected <strong>in</strong> <strong>the</strong> cont<strong>in</strong>u<strong>in</strong>g levels<br />

of external recognition for our work.<br />

Last year, we achieved <strong>the</strong> highest<br />

score <strong>in</strong> <strong>the</strong> m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry <strong>in</strong> <strong>the</strong><br />

Dow Jones Susta<strong>in</strong>ability Index, hav<strong>in</strong>g<br />

featured <strong>in</strong> <strong>the</strong> <strong>in</strong>dex for 10 consecutive<br />

years. We were commended by <strong>the</strong><br />

Carbon Disclosure Project and entered<br />

<strong>the</strong> Carbon Disclosure Leadership<br />

Index for our carbon disclosure<br />

<strong>in</strong>formation and actions to reduce<br />

carbon emissions, and were among<br />

30 lead<strong>in</strong>g UK companies and <strong>the</strong> only<br />

m<strong>in</strong><strong>in</strong>g group to secure plat<strong>in</strong>um status<br />

<strong>in</strong> <strong>the</strong> Bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> Community’s<br />

2012 Corporate Responsibility Index –<br />

<strong>the</strong> UK’s lead<strong>in</strong>g voluntary benchmark<br />

of corporate responsibility.<br />

I believe our organisation has some<br />

of <strong>the</strong> most outstand<strong>in</strong>g, focused and<br />

entrepreneurial people <strong>in</strong> <strong>the</strong> global<br />

m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry. I am confident that,<br />

as I pass <strong>the</strong> baton to my successor,<br />

<strong>Anglo</strong> <strong>American</strong> will cont<strong>in</strong>ue to take<br />

<strong>the</strong> lead <strong>in</strong> responsible m<strong>in</strong><strong>in</strong>g, sett<strong>in</strong>g<br />

<strong>the</strong> tone for <strong>the</strong> wider m<strong>in</strong><strong>in</strong>g sector.<br />

Cynthia Carroll<br />

Chief Executive<br />

<strong>Anglo</strong> <strong>American</strong> plc Susta<strong>in</strong>able Development Report 2012 05

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