Practical Example of Integrated Reporting for a Company: Gold Fields Journey

Transcription

1 Practical Example of Integrated Reporting for a Company: Gold Fields Journey JSE Presentation 1 March 2013 Annie Snyman Vice-President and Group Consultant: Sustainable Development

2 Forward looking statements Certain statements in this document constitute forward looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Far Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and production costs; levels of expected production; Gold Fields growth pipeline; levels and expected benefits of current and planned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other occupational health risks experienced by Gold Fields employees. These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Page 2

3 Topics The following topics will be covered Overview of Gold Fields and our commitment to Sustainable Development The Gold Fields sustainability journey and impact on integrated evolution Lessons Learned: Climate change initiatives and integrated Page 3

4 Overview of Gold Fields and our commitment to Sustainable Development

5 Gold Fields Overview To be the global leader in sustainable gold mining FINLAND Arctic Platinum Project Vancouver Denver MALI Yanfolila PERU Cerro Corona Chucapaca Lima GHANA Tarkwa Damang Accra Manila PHILIPPINES Far Southeast AUSTRALIA Agnew St Ives Santiago Johannesburg SOUTH AFRICA South Deep Perth Offices Mines Exploration Projects: GFI 100% CIR Option JV GFI Operated Total: 6 mines, ± 2.1 Moz Page 5

6 Sustainable development embedded How Sustainable Development supports the Vision 1 Gold Fields Vision To be the global leader in sustainable gold mining 2 SD Objective Gold company of choice for investors, employees & society through adding sustainable value to them & their environment 3 How we do it Visible & measureable impact though working proactively with investors, employees & society on targeted sustainable development programmes in a consistent, innovative & repeatable way 4 What we focus on Communities Environment Employees Operations Licence to Operate 5 Foundation Creating shared value for key stakeholders in our areas of influence Page 6

7 Progress: Integrated Report Awards 3 rd Party Assessment King III Compliance Score1 64.6% 94.9% To be rated King III Compliance Rank 1 28 th 2 nd To be rated Global Reporting Initiative A+ A+ To be rated Institute of Chartered Secretaries Not rated Finalist 1 st in Top 40 JSE category E&Y Excellence in Corp. Report < top10 1 st < top Association of Certified Charted Accountants Nkonki Not rated 1 st in Mining 4 th Overall 2 nd in Materials Sector To be rated (in 2013) 2 nd in Mining To be rated (in 2013) 1. Annual assessment of over 400 South African companies completed by SustainabilityServices.co.za 2. Internal Assessment Score by SAM not part of the DJSI 3. New Awards: E& Y Excellence in Integrated Reporting Awards Page 7

8 Progress: Sustainability Awards 3 rd Party Assessment DJSI Rank SAM Assessment 4 5 Not rated 75% 4 th in Mining 81% 3 rd in Mining, 1 st in Gold Mining 84% ESR award - CEMEFI & Association Peru Not rated Not rated One of 12 companies that received the award JSE SRI Index Top Performer Top Performer Constituent Oekom Not rated B- B Carbon Disclosure Leadership Index Carbon Performance Leadership Index Joint 1 st 1 st 2 nd In top 4 In top 2 Platinum award Climate Change Leadership Award Not rated Special mention 4. Dow Jones Sustainability Index (DJSI). ranks the performance of global sustainability leaders, through an annual assessment of the world s 2,500 largest public companies 5. Internal Assessment Score by SAM not part of the DJSI 6. Major corporate social responsible company award for Latin America collaboration between Mexican Centre for Philanthropy and Association Peru st in Energy, Minerals & Industrial Page 8

9 The Gold Fields sustainability journey and impact on integrated evolution

10 Everything is connected Hence integration is key

11 External Events impacting on Sustainability How external event impact on companies sustainability journey Earlier years COP 1 - Berlin Adjusted from The Path to Sustainable Development, Total, 2003 Later years MPDA Global Financial Crisis Rio +20 SD Summit COP 18 : Doha Page 11

12 Our Sustainability Journey Impacts What influenced our journey Phase 0: Historic contribution Phase 1: Awakening Phase 2: Higher Compliance Phase 3: Citizenship Phase 4: Leadership Compliance with legislation of the time Socioeconomic development (to serve own) Global awareness rising New political order Rules of society changing Legislation changing Global awareness awakes JhB Summit for Development MPRDA Improved governance, after Sept 11 Human rights Partnerships and signatories Rights and responsibilities Improved Global Financial Crisis Strategic engagement King Code of Governance Integrated & risk management Indexes and performance Prior to and up to to 2000 Shareholder value 2001 to to to 2012 Page 12

13 Key Sustainability Milestones Phase 0: Historic contribution Phase 1: Awakening Phase 2: Higher Compliance Phase 3: Citizenship Phase 4: Leadership Compliance with legislation of the time Gold Fields foundation (for community development) Strong focus on Health and Safety Adjust to new political roleplayers expectations Geographical expansion drive embedded Health, safety and environment focus Listing on the NYSE (2002) Implement GRI (2003) Adopt AA 1000 (2003) Implement ISO (2003/4) Prepare for Mining Charter/SLPs Sign-up to International Cyanide Code (2005) Sign-up to UNGC (2006) Join ICMM (2007) 1 st JSE SRI submission (2006) 1 st CDP submission (2007) Implement OHSAS18001 (2005/06) Integrated starts (2010) Actively track performance on benchmarks and indexes 1 st Participation in DJSI (2010) Pilot for WGC Gold Standard (2012) Social & Ethics Committee established (2012) Shareholder value Prior to and up to to to to to 2012 Page 13

14 Reporting Evolution Milestones Phase 0: Historic contribution Phase 1: Awakening Phase 2: Higher Compliance Phase 3: Citizenship Phase 4: Leadership Main focus related to financial performance Health and Safety Foundation/ charitable activity Main focus on financial performance Health, safety and environment Foundation/ charitable activity Main focus on financial performance Reporting for international compliance requirements starts Health, safety, environment and community Main focus on financial performance but shifting to incorporate ESG factors First GHG emissions in 2005/6 Improved Health, safety, environment, community Integrated starts (2010) GRI/NFD automated & assured (2011) Carbon footprint integrated in GRI (2012) GRI/NFD optimised & assurance expanded (2012) Shareholder value Prior to and up to to to to to 2012 Page 14

15 Lessons Learned: Climate change initiatives and integrated

16 Evolution of climate change initiatives and IAR Actions 1 st IAR 2012/ 13 Carbon tax & energy prices? Energy & carbon management integrated 2006 Join ICMM Kyoto Protocol adopted Methane project due diligence GHG emission starts 2007 Load Shedd ing King Code st CDP Beatrix Submission CDM project launched 2010 Carbon Management Strategy published in Integrated Annual report 1 st Place CDLI 2011 Number of energy efficiency projects launched Top rated SA mining company on DJSI 1 st Place CDLI (2012) 49M pledge Project implementation and continuous improvement Key awards Key interventions Time Page 16

17 Lessons learned During the past three years we have learned that: Leadership support from the CEO and Board is crucial in the sustainability, climate change and integrated journey Core sustainability basics should be in place Reliable data is of utmost importance to ensure integrity of report and efficiency of process Assurance of non-financial data supports integrity of report Tension between detail and strategic analysis exists and balance needs to be found to focus on materiality and stakeholder requirements Longer term planning and targets are important to drive continuous improvement Investment in time, resources and systems is required to ensure success Good consultants, committed staff and auditors ensure integration and a good overall outcome Accept that integrated is a journey and that there is a continuous learning curve Integrated breaks down silos amongst operations, finance and sustainable development and embeds sustainability thinking as part of the business DNA Page 17

18 Thank you Questions? Page 18