In November 2014, we launched a Group project to enhance measurement of our socio-economic contributions on the ground. The project’s aim is to strengthen our communications about value creation, inform our management and support our licence to operate.

 

A working group was established to pool the knowledge of our experts in Australia, South Africa, Canada, Zambia and the DRC. The group combined leading practices and existing tools from across the Group, with external expertise provided by a leading global consultancy firm. International NGO CARE acted as peer reviewer of our chosen methodology and approach. We will finalise the measurement framework, metrics and supporting guidance in 2015, and pilot the new approach with high-profile operations and regions, before a full rollout in 2016.

The aim is to develop a consistent Group approach to measuring the value we create for society, that also has enough flexibility to adjust to local priorities in our different markets. It will support robust stakeholder engagement at local and Group levels, address reputational risks and support our social licence to operate. It will also enhance the management information available at operations to improve their performance and inform strategy.

We will seek to consistently measure each operation’s contribution to social value through the scorecard’s five core activities:

We applied this model to our copper assets in Zambia:

  • Local procurement: 50% of our procurement from November 2013 to October 2014 was spent with businesses located next to our mines in Mufulira and Kitwe
  • Local employment: our employment constitutes approximately 53% of the total direct employment by major mining companies in Zambia’s Copperbelt
  • Enterprise development: our annual SME development budget has funded training of 200 businesses from Kitwe and Mufulira since 2011
  • Synergies from infrastructure: during 2012 and 2013, our road improvements have reduced commuting times to an estimated value of $12.8 million (saving 1.15 million working days)
  • Social investment: we estimate that more than 122,000 people benefit from healthcare and education facilities that we support

 

Five key social areas

Local procurement

Local employment

Enterprise development

Synergies from infrastructure

Social investment

Broad objectives

“Where possible we source locally”

“We provide training to local people to qualify for skilled jobs”

“We build capacity within local businesses and offer them ongoing opportunities to provide services to our assets”

“We help make sure that infrastructure related to our assets benefits local communities and supports development”

“We invest in public healthcare, education and basic services such as the provision of water and sanitation”