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Report to Society 2006

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Sustainable development
Economic value
Human Capital
Social Capital
Natural capital
Manmade Capital
Data and assurance

Targets

Target achieved Target achieved Interim target achieved, ongoing Interim target achieved, ongoing
Target not achieved Target not achieved More work required More work required


 

Focus

Our goals

 

Our performance in 2006

2007 and future targets

Safe work environments

Work without fatal injuries and minimise work-related injuries

Target not achieved

44 fatalities (down from 46 in 2005). FIFR stable at 0.017

Integrate peer review findings and experience from others to reinforce the safety strategy.
The focus will be on risk management

Reduce LTIFR by a further 35% to 0.5
Review contractor selection and integration into our safety programmes

Target not achieved

LTIFR for 2006 was 1.16 (23% higher than 2005). Anglo American’s core business going forward recorded an LTIFR of 1.58

An LTIFR target of 0.94 is set for 2007, representing a 40% improvement target for the new core businesses of Anglo American

Healthy work environments

Control workplace health hazards to avoid new cases of occupational disease and health impairment

Target not achieved

856 new cases (1,003 in 2005). The occupational illness incidence rate is up to 0.66 (from 0.65 in 2005) per 100 employees based on manhours worked

Focus on reducing exposure to potential industrial hygiene hazards in order to minimise new cases of occupational illness
Certification to third party health and safety systems will be at least 75% complete by the end of 2005 Target achieved 86% of Group companies certified to
OHSAS 18001, AS 4801 or ISRS		 All material businesses will maintain certification

Merit-based and empowering culture

All managers/professionals have individual performance and development reviews (a large proportion of our workforce is subject to team-based targets and reviews)

Target achieved

Performance reviews for more than 50% of all Anglo American employees, of whom 8.7% are managers

Ongoing focus – key method of providing direction and development for our employees
Progress towards employment equity targets in South Africa Target achieved 43% achieved in 2006 – exceeds compliance target of 40% Continue transformation programmes and exceed the South African target
Conduct Group communication survey Target achieved Ongoing improvement in employee
communication and sharing of knowledge		 Repeat Group communication survey in 2007
Evaluate and extend Group Information
Portal programme		 Target achieved Coverage of information portal (thesource) increased to 13,500 PC users. Growth in numbers of communities of practice and Group-wide access to information Coverage in all divisions. Continuous reinforcement of content and use of collaborative tools including specifically increasing the visibility of career opportunities across the Group
HIV and AIDS 50% VCT by the end of 2005 and 75% by 2007 in sub-Saharan Africa Target achieved VCT take-up of 63% exceeding the revised 2006 target 70% VCT (long term 100%) in high disease burden countries
Work in partnership with NGOs, governments and donor agencies Target achieved Launched community health centre in Bushbuckridge with multiple partners Various other community HIV/AIDS initiatives and programmes Sustain regional community HIV/AIDS initiatives, specifically those with external partners

Sustainable development integration into business model

Sustainable development appraisal of investment proposals

Target not achieved

Ongoing

All qualifying projects are
routinely reviewed
Guidelines and practices Develop sustainable development toolbox
for engineers		 Target not achieved Training undertaken in South Africa and Chile Training to be undertaken in Australia and toolbox to be published in 2007
Develop sustainable development guideline for planning capital projects Target not achieved The initial guideline has been piloted on expansion and greenfield projects Refined guideline will be published
in 2007
Develop integrated mine closure guidelines Target not achieved The mine closure toolbox has been
pilot-tested 		Further revisions undertaken. Publish in 2007, commence rollout and training
Raise focus on product stewardship and recycling Target not achieved REACH awareness raising complete Guidelines on material stewardship distributed Focus on implementation for REACH and roll out of materials stewardship approaches
Engage key suppliers on sustainable development and business principles, practices and targets Target not achieved Working drafts in circulation.
Divisional tools being developed. Further methodologies and tools being considered		 Supplier workshops and capacity building within procurement teams
New target
     Review policies and guidelines, specifically including environmental standards for air quality and water. Create integrated sustainable development framework

Transparency and reporting

Increased stakeholder engagement on external reporting

Target not achieved

Extensive engagement through ICMM and GRI conducted. Research conducted on stakeholder perceptions

Formal survey of public report stakeholders
Corruption prevention Ensure quality and follow-up on speakup reports Target not achieved 181 calls received. Service suspended for legal reasons in France and Germany. Board involvement in implementation of EITI Raise profile of speakup and reactivate in France and Germany. Continued close involvement in EITI implementation
Corporate citizenship Finalise resettlement policy following international review of IFC safeguard policies Target achieved SEAT tool on resettlement produced Apply the tool where appropriate Progress the adoption of formal policy
Implement training programme on security and human rights Target achieved Group level training provided in 2005, BU training taken forward in 2006 with increasing coverage of security contractors Support implementation where appropriate
Develop human rights guidelines Target achieved Participated in the work of the UN Special Representative on Business and Human Rights and led ICMM’s work in the area Finalise human rights policy and guidelines
Community issues Community engagement plans in place and improve the quality Target achieved Community engagement plans in place at over 95% of significant operations. Quality improved at those sites which have carried out initial SEAT assessments Continuous improvement of CEPs and encouragement of increased use of stakeholder forums to monitor progress and maintain dialogue
45 SEAT assessments conducted Interim target achieved, ongoing SEAT has now been conducted at 40 sites in 16 countries (a further 10 in pipeline).
Consultation undertaken on SEAT enhancements in 2006		 Evaluate impact of SEAT implementation. Carry out SEAT assessments at 10 operations
Systems Full ISO 14001 certification for material
businesses		 Interim target achieved, ongoing 86% certification – by turnover. No
certification has been lost. All new
operations are required to be certified
within two years of joining the group		 All material businesses to maintain
certification
CO2 emissions and
energy efficiency		 A 15% improvement in energy efficiency
and a 10% reduction in CO2 emissions per
unit of production (emissions intensity) by
2014		 More work required All businesses have targets in place
to achieve this goal. More than 1,000
projects underway		 Continue to drive the process
Improve accounting and
measurement
Establish definitions, reporting boundaries
and determine the CO2 relating to transport
by 2006		 Target achieved Initial results under review.
Ongoing refinement of data required		 Will finalise in 2007
Air quality Development of data on SO2 emissions from
fossil fuel use to be completed in 2005		 Interim target achieved, ongoing Completed – data on SO2 emissions
from fossil fuels obtained by using
internationally reputable sources		 Included in numbers
Water efficiency Efficiency targets in water-stressed areas Interim target achieved, ongoing All business units have set targets
appropriate to their businesses and sites		 These will remain site-specific
objectives
Biodiversity Biodiversity action plans (BAPs) to be integrated into ISO 14001 systems at significant sites
Peer review of 10 BAPs
 Interim target achieved, ongoing A further 14 sites were reviewed through the peer review programme. Integration into ISO 14001 systems achieved at most operations Ten sites to be reviewed in 2007 Continue to integrate biodiversity into management systems
Continue working with ICMM and leading conservation organisations Target achieved ICMM involvement ongoing. Engagement with, among others: Fauna and Flora International, Business and Biodiversity Offset Programme, Conservation International, Earthwatch Continue with partnerships at
all levels
Assess the Group’s exposure to
protected areas		 Target achieved The Group has a low-risk, well-managed exposure to protected areas. Based on the 2005 assessment, it was decided to reduce the frequency of the assessment Review in 2008
Responsible land use Closure plans for all managed operations will be updated regularly and fully costed Target achieved Due to exclusion of non-core businesses, provision for closure liability has been reduced to $747.5 million at the end of 2006 from $1,088 million in 2005. No reduction in remaining core businesses Ongoing
Waste management Group tailings risk assessment for high volume waste management More work required Risk report produced annually Continue managing high-impact,
low-likelihood risk
Expand tailings guideline document to include waste rock, heap leach pads, backfilling and slag disposal More work required Work on heap leach pads, waste rock and backfill is to continue. No start has been made on slag disposal Project to be completed and guideline to be applied
Establish baselines for all waste volumes in 2006 and reduction targets in 2007   Most baselines established, focus on targets and reduction Baselines have been set and targets will be managed