For Newmont, sustainability – one of our core values and business strategy pillars– means catalyzing local economic development and job creation through transparent and respectful stakeholder engagement, respecting human rights, and being responsible stewards of the environment.
Our Sustainability Strategy
Three strategic imperatives – performance, social acceptance and reputation, and risk management – drive the programs necessary to deliver our sustainability strategy:
- Performance – We believe – as do investors – that meaningful, measurable and sustainable environmental, social and governance (ESG) performance is reflective of leadership, risk management capacity and responsible business practice. In 2018, we held our first ESG briefing for investors and financial analysts. For the fourth year in a row, Newmont was named the mining sector leader in the Dow Jones Sustainability World Index (DJSI) Industry Group Leader Report – which is compiled by RobecoSAM in concert with the Dow Jones Index – achieving a top percentile ranking in 10 categories including risk and crisis management, climate strategy and human rights. Our focus for 2019 is to maintain this performance and improve our score in other categories through efforts such as maturing our water strategy toward water stewardship and better managing supply chain sustainability risks – including those related to human rights – through our Supplier Risk Management program.
- Social acceptance and reputation – We conducted a global stakeholder survey in 2018 to gather feedback on how stakeholders view Newmont in relation to other companies in the sector. Those most familiar with Newmont had the most favorable impression, demonstrating the value of our engagement efforts and commitment to transparency. Economic impact reports, on-the-ground implementation of our global closure strategy, and insights from integrating free, prior and informed consent (FPIC) of indigenous peoples into project development are among the key programs that will continue to drive social acceptance and reputation. We also will expand our reporting in areas including our contribution to the UN Sustainable Development Goals (SDGs) and the financial impacts of climate change.
- Risk management – Our country risk program, long-term energy and climate strategy, tailings stewardship approach, artisanal and small-scale mining strategy, and biodiversity partnership with the International Union for Conservation of Nature (IUCN) to improve biodiversity outcomes are examples of our proactive and strategic approach to managing sustainability risks. Ongoing work in these areas and new programs – such as the implementation of a responsible sourcing strategy – seek to build on current success while anticipating and managing future risks.
Supporting these imperatives is our increasing use of technology to not only improve efficiencies and communications, but also to protect people, connect to each other and our communities, and improve environmental performance and work conditions.
Understanding the issues that matter most to our stakeholders and our business helps us focus on key risks and opportunities, which in turn improves our reporting and performance. Because our industry is dynamic and rapidly evolving and priorities shift over time, we conduct an internal materiality review annually and more in-depth assessments every few years.
When we determine and review our sustainability priorities – referred to as material sustainability aspects by the GRI (formerly the Global Reporting Initiative) – we follow the four-step process outlined by the GRI Principles for Determining Report Content: identification, prioritization, validation and review.
The assessment we conducted in 2018 consulted more than 15 sources – including Newmont’s policies and standards, issues of importance to the ESG research and ratings firms, and indices such as the Sustainability Accounting Standards Board (SASB) Materiality Map that identifies issues likely to affect the metals and mining sector – as well as insights from ongoing stakeholder engagement, to identify potentially relevant topics to Newmont and our stakeholders. We then conducted an internal review to determine which topics were material and validated these topics with external stakeholders, including NGOs, academia and industry associations to ensure multiple perspectives are incorporated into our top priorities. Our priorities also reflect our salient human rights issues, which are determined by examining how our business activities can impact human rights across the supply chain and throughout the life of the mine. We first defined our salient human rights issues in 2015 and updated them in 2018.
Most priorities from 2017 have been reaffirmed and remain relevant for this report. Two past priorities – economic performance and employment – were not identified as material for 2018; however, these topics are still addressed in the report to align with the GRI and other sustainability frameworks. In addition, some priorities have been renamed to more accurately reflect the topic, whereas others have been grouped under broader thematic sections (e.g., social acceptance and value sharing).
For the purposes of this report, we group our priorities into four categories – Ethics, Integrity and Human Rights; Our People; Economic and Social Performance; and Environmental Stewardship.
Newmont’s Board of Directors and its committees oversee the Company’s sustainability strategy as part of their oversight of business strategy and risk management. The Board’s Safety and Sustainability (S&S) Committee provides advice, counsel and recommendations on matters relating to health, safety, security, sustainable development, environmental affairs, stakeholder relations and human rights. Other committees also have oversight roles over key sustainability matters including the Audit Committee (anti-corruption, ethical conduct, taxes and royalties) and the Leadership Development and Compensation Committee (talent development, inclusion and diversity). All Committee members are independent directors who are knowledgeable and experienced in sustainability practices. More information about our Board and its committee members is included in our annual proxy statement.
The S&S Committee meets quarterly and on an ad hoc basis as needed. In 2018, Committee members met four times to consider matters related to promoting a healthy and safe work environment and environmentally sound and socially responsible resource development. The Committee also reviewed and approved Newmont’s annual sustainability report.
Primary responsibility for managing sustainability matters rests with Newmont management. The Chief Executive Officer has ultimate responsibility for Newmont’s social, economic and environmental performance, and the Executive Vice President, Sustainability and External Relations (S&ER), is responsible for the Company’s sustainability strategy. The S&ER group plays a central role in developing and implementing management frameworks, supporting the implementation of strategies and standards, and tracking and reporting on our environmental and social performance. Other executives and functions across the business have responsibility for sustainability-related programs and efforts. Examples include:
- Leaders across the business are accountable for implementing policies and standards on the ground, and are required to certify on a quarterly basis that their respective region maintained effective governance controls;
- Site general managers are assigned to lead initiatives around at least one of the top fatality risks, and superintendents and engineers were engaged to identify the critical controls for managing risks related to tailings storage facilities;
- Cross-functional working groups – which include representatives from relevant functions and each region – are developing and/or leading global strategies and programs around country risk, human rights, supplier risk, responsible sourcing, water stewardship, tailings management, climate change and mine closure.
Executives and employees eligible for our annual incentive compensation plan (AICP) are held accountable for the Company’s sustainability performance through Newmont’s performance-based compensation structure.
Safety, health and sustainability metrics represent around 25 percent of the corporate, regional or site performance bonus payout, with the remaining 75 percent covering operating measures such as exploration, project execution, efficiencies and financial performance (the percentage varies according to whether an employee is at the site, region or corporate level). Our safety and health metrics are based on implementing critical controls, lowering health exposures, reducing injuries and preventing fatalities. The sustainability metrics relate to site performance against our water strategy objectives, the number of acres reclaimed, and Newmont’s inclusion and score in the DJSI.
Because of the fatalities that occurred in 2018, management recommended to the Board of Directors’ Leadership Development and Compensation and Safety and Sustainability Committees a reduced payout for the 2018 bonus, payable in 2019, for both the Company and personal bonuses for certain populations.
OUR MATERIALITY MATRIX
Targets are a key element of our sustainability framework. They demonstrate our commitment to transparency and improve our ability to manage key areas of social and environmental performance.
The table below summarizes our performance against the public targets we set for 2018 and provides an update on our progress against our 2020 greenhouse gas emissions intensity target. Performance against these targets is reviewed quarterly during a CEO-led call with executive, regional and functional leaders.
In October, our executive leadership team and the Safety and Sustainability Committee reviewed and approved our future targets. These are discussed in each respective section of this report.
We recognize the need to link our efforts to on-the-ground outcomes and impacts, and in 2019, we will examine the opportunity to develop outcome-based social and environmental targets, and further align our public targets to the five priority SDGs where Newmont can make the most impact.
|Ethics, Integrity and Human Rights|
|Public target||2018 Performance||Commentary||For more information|
|Ensure security risk assessments pertaining to human rights are completed, issues and potential impacts are identified, and, where necessary, mitigation strategies and controls are in place||Met||All regions/sites have action plans to reduce 100 percent of high and extreme threats to a tolerable level.
Our operations in Ghana, Peru and Suriname completed risk assessments and conducted an external review of their respective action plans.
Human rights and the supply chain
|Develop consistent human rights pre-screening criteria and integrate into the Supplier Risk Management (SRiM) process||Met||We established consistent human rights pre-screening criteria and all sites* began using the criteria as part of the Supplier Risk Management program.
* Our Merian operation in Suriname currently is not included in the SRiM program. Merian recently implemented SAP, which supports the SRiM program, and is expected to implement SRiM in the future.
|Public target||2018 Performance||Commentary||For more information|
|Zero fatalities||Not met||Two tragic accidents – one at our Ahafo Mill Expansion project in Ghana where six people lost their lives, and one at the Pete Bajo Underground mine in Nevada where an underground technician was fatally injured – occurred during the year.
These accidents highlight the need to redouble our efforts around integrating our Fatality Risk Management system across our business.
|Lower Total Recordable Injury Frequency Rate (TRIFR) by 10
|Almost Met||Our 2018 TRIFR of 0.40 improved compared to our 2017 TRIFR of 0.46 but was slightly above our target of 0.39.||Safety|
Inclusion and diversity
|Increase the enterprise-wide representation of women in the workforce to 15.4 percent by 2018*
* Representation excludes those in fixed-term positions such as internships and those with contracts that end on a specific date.
|Not met||While female representation was up from 14.7 percent a year ago to 15.0 percent, we did not achieve our public target for female representation to grow to 15.4 percent by the end of 2018.||Our Workplace|
|Economic and Social Performance|
|Public target||2018 Performance||Commentary||For more information|
|All sites achieve local employment target*
*Australia’s targets for 2018 were updated throughout the year.
|Almost Met||All sites with a local or, where applicable, indigenous employment target achieved their target except at KCGM in Australia.||Local Employment and Business Opportunities|
|All regions achieve spend target with local/local-local suppliers||Met||Globally, we set a local spend goal of $821 million, which we exceeded by $282 million, largely as a result of continuing to refine the definitions and classification of local suppliers.||Local Employment and Business Opportunities|
|Commitments completed on or before due dates as captured in register||Almost Met||All sites met our global target to complete 95 percent of community commitments by the due date, with the exception of Boddington in Australia where a commitment to construct a fence was delayed due to a required environmental and cultural survey. However, the commitment was met during 2018.||Community Relationships|
Complaints and grievances (C&G)
|All sites (100 percent) close 100 percent of tier 1* complaints within 30 days
* Tier 1 is defined as those complaints that can be resolved between Newmont and complainants without the need for external mediation and/or legal proceedings.
|Almost met||All sites met our target to resolve 100 percent of tier 1 complaints within 30 days, except Merian in Suriname and Ahafo in Ghana.||Community Relationships|
|Public target||2018 Performance||Commentary||For more information|
|All sites (100 percent) complete their action plan for the year and overall water consumption is reduced by 4.2 percent compared to 2016 base year||Met||All regions met their water targets, and we reduced our overall water consumption by 6 percent, compared to the 2016 base year.||Water|
Energy and climate change
|Reduce greenhouse gas (GHG) emissions intensity (tonnes of carbon dioxide per gold equivalent ounce) 16.5 percent by 2020, based on the 2013 baseline||In progress||As of the end of 2018, we have reduced our GHG emissions intensity by 11.7 percent compared to our 2013 baseline, which is approximately 70 percent of our public target to reduce GHG emissions intensity by 16.5 percent (compared to 2013) by 2020.||Energy and Climate Change|
Closure and reclamation
|Achieve 90 percent of planned reclamation activities across Newmont||Met||Our operations completed concurrent reclamation on approximately 148 hectares, and we achieved our public target to complete 90 percent of planned reclamation activities across the Company.||Closure and Reclamation|
MAKING AN IMPACT ON THE SUSTAINABLE DEVELOPMENT GOALS
In 2015, 193 member states of the United Nations unanimously adopted the 2030 Agenda for Sustainable Development – an action plan to end poverty, protect the environment and promote prosperity by 2030. It includes 17 Sustainable Development Goals (SDGs) that rely on governments, businesses and civil society to collectively work together to improve the world.
Newmont is committed to advancing these goals and being a leader in the areas where we have the greatest impact through our business activities. Using the World Economic Forum’s (WEF) Atlas that maps the linkages between mining and the SDGs, and the findings from an extensive internal mapping exercise, our contribution is described as follows:
17 SUSTAINABLE DEVELOPMENT GOALS (SDGs)
While recognizing that the mining industry has the opportunity and potential to positively contribute to all 17 SDGs, we prioritized the following five SDGs where we believe we can have the most impact through our activities and that are most aligned to our business strategy:
- SDG-3 – Ensuring healthy lives and promoting wellbeing for all at all ages
- SDG-5 – Achieving gender equality and empowering all women and girls
- SDG-6 – Ensuring access to water and sanitation for all
- SDG-8 – Promoting inclusive and sustainable economic growth, employment and decent work for all
- SDG-17 – Advancing the goals through partnerships with governments, the private sector and civil society
Commitments and reporting
We currently report against many of the SDG performance indicators throughout this report (see the GRI Content Index); however, we identified gaps in the way we report on outcomes from some of our activities, including around community development. With this in mind, during a global workshop in 2018 with representatives from all of our regions, we identified five specific outcome-based objectives that will help us demonstrate our contribution to SDGs 3, 6 and 8.
|Priority SDG||Outcome-based Objective|
|SDG-3||Improved access to quality healthcare
Reduction in maternal and infant mortality
|SDG-6||Improved community access to potable water
Improved access to irrigation
|SDG-8||New non-Newmont and non-artisanal and small-scale mining (ASM) jobs created|
Each of our regions has identified potential activities to support these objectives including: health initiatives to be carried out through partnerships in Ghana and Australia; job creation opportunities through Legacy Fund donations in North America; and increasing access to water and preventing the loss of drinking water through our foundation (Asociación Los Andes de Cajamarca) in Peru.
In 2019, we will begin collecting baseline data for the regional activities identified while designing new programs that contribute to these objectives. Reporting on the objectives will incrementally increase beginning with our 2020 Beyond the Mine annual sustainability report.
As part of our global inclusion and diversity strategy and in support of SDG-5 (gender equality), we have developed key metrics and indicators related to creating an inclusive workplace and diverse workforce. These include gender diversity targets for executives, managers and the overall enterprise.
Collaboration and partnerships
Collaboration among governments, businesses and civil society and global partnerships is essential for achieving the goals, and supports SDG-17. The following three global partnerships will help our efforts to advance the SDGs and create mutual value:
- Project C.U.R.E. – Our long-standing partnership with Project C.U.R.E., the world’s largest distributor of medical donations to developing countries, focuses on delivering much-needed medical supplies to operating countries; conducting on-site clinics; and training healthcare providers on techniques to prevent infant mortality. Expected outcomes are in line with SDG-3, with specific emphasis on neonatal and maternal health indicators.
- Project WET – Our partnership with Project WET, a global nonprofit that promotes science-based water education, began in 2018, and in the first year, Project WET strengthened ongoing environmental education programs in Peru and built capacity in local Pamaka villages in Suriname to support potable water infrastructure projects. Building long-term water education capacity supports Newmont’s global water strategy and efforts to empower stakeholders to jointly manage watersheds in a responsible manner.
- The International Union for the Conservation of Nature (IUCN) – We partnered with the IUCN to support our performance in biodiversity conservation and impact management, including restoration and offset activities. Partnership outcomes will contribute to improved conservation practices throughout the natural resources sector.
All governments in the countries where Newmont operates have expressed support for the SDGs, and we have integrated the SDGs into our engagement with the governments of Ghana, Peru and Suriname. Our operations in Ghana aligned their sustainability strategy to the country’s SDGs. In Peru, Yanacocha participates in the National Society of Mining, Oil and Energy (SNMPE) whose efforts to promote community development are aligned to the SDGs. Suriname is implementing a United Nations Development Programme (UNDP) to localize the SDGs, and the SDGs are a standing agenda item at our quarterly government stakeholder meetings. The U.S. publicly supports the goals and is working to implement them domestically and abroad. In Australia’s 2018 Report on the Implementation of the Sustainable Development Goals, it notes the mining industry’s positive impact on the economy through employment.