2010 CDP questionnaire results [PDF 240 KB] - Anglo American

Carbon Disclosure Project
CDP 2010 Investor CDP 2010 Information Request
Anglo American
Module: Introduction
Page: Introduction
0.1
Introduction
Please give a general description and introduction to your organization.
2010 Our mission
Anglo American aims to be the leading global mining company – through world class assets in the most
attractive commodities, operational excellence and a resolute commitment to safe and sustainable
mining.
Our approach to climate change is underpinned by a number of strategic interventions. These include a
focus on energy efficiency, carbon reducing ‘synergy projects’, low-carbon technologies and adaptation
to climate change. Climate change also represents a commercial opportunity and, guided by these
principles, we will seek to leverage our knowledge and assets, to generate additional value for our
stakeholders.
Group overview
Platinum
The world’s leading primary producer of platinum, accounting for around 40% of newly mined platinum
output
Copper
Six operations in Chile account for the majority of copper output
Significant future growth from approved expansion at Los Bronces
Nickel
Major operations in Brazil and Venezuela
Barro Alto project in Brazil is expected to more than double its nickel production by 2012
Iron Ore and Manganese
Comprises operations in South Africa, Brazil and Australia
Minas Rio project to begin production of high-grade pellet feed in 2012
Metallurgical Coal
Metallurgical Coal operations managed out of Australia
Project pipeline includes more than 20 mining prospects
Thermal Coal
Thermal Coal operations managed out of South Africa
Coal is exported from South Africa, South America and Australia throughout the Med-Atlantic and Indo-
Pacific markets
Other Mining and Industrial
Assets include: Tarmac, the Group’s portfolio of zinc assets, Scaw Metals, Copebrás, Catalão, Peace
River
Coal and the Group’s share in the Carbones del Guasare coal assets
Accounted for approximately 13% of 2009 Group EBITDA
Preparatory work for the separation of these businesses has commenced
0.2
1

Reporting Year
Please state the start and end date of the year for which you are reporting data.
Enter Periods that will be disclosed
Thu 01 Jan 2009 - Thu 31 Dec 2009
0.3
Are you participating in the Walmart Sustainability Assessment?
No
0.4
Modules
As part of the Investor CDP information request, electric utilities, companies with electric utility
activities or assets, companies in the automobile or auto component manufacture sectors and
companies in the oil and gas industry should complete supplementary questions in addition to
the main questionnaire.
If you are in these sectors, the corresponding sector modules will be marked as default options
to your information request.
If you have not been presented with a sector module that you consider would be appropriate for
your company to answer, please select the module below. If you wish to view the questions first,
please see www.cdproject.net/cdp-questionnaire.
0.5
Country list configuration
Please select the countries for which you will be supplying data. This selection will be carried
forward to assist you in completing your response.
Select country
South Africa
Australia
Brazil
Chile
United Kingdom
Rest of world
0.6Please select if you wish to complete a shorter information request.
Further Information
Attachments
https://www.cdproject.net/Sites/2010/72/772/Investor CDP 2010/Shared
Documents/Attachments/InvestorCDP2010/Introduction/AAplc Annual report 2009.pdf
https://www.cdproject.net/Sites/2010/72/772/Investor CDP 2010/Shared
Documents/Attachments/InvestorCDP2010/Introduction/AAplc Report to Society 2009.pdf
2

Module: Governance
Page: Governance
1.1Where is the highest level of responsibility for climate change within your company?
Board committee or other executive body
1.1a
Please specify who is responsible.
Committee appointed by the Board
1.1bSelect the lower level department responsible.
1.2What is the mechanism by which the board committee or other executive body reviews the
company’s progress and status regarding climate change?
Reporting to the Board
Climate change-related performance is reviewed by the Board Safety and Sustainable Development
Committee every quarter via a quarterly performance report, which includes each Business Unit’s
climate change and energy-related performance, as well as Group-level strategic updates. In addition to
quarterly reports, the Board is briefed on strategic developments via annual presentations on climate
change by the Head of Sustainable Development and Energy as well as annual Business Unit safety
and sustainable development presentations.
Reporting to BU executive structures
Similar processes are followed within each Business Unit, which produce monthly and quarterly
performance reports to their BU-specific executive bodies.
Executive responsibility
The senior executive who has overall accountability for climate change is the Group Director of
Business Performance and projects. The Group Head of Safety and Sustainable Development and the
Group Head of Sustainable Development and Energy are responsible for setting strategy and evaluating
performance, while Business Unit specific executives and professionals are responsible for
implementation.
1.3aPlease explain how overall responsibility for climate change is managed within your
company.
1.3b
Please explain how overall responsibility for climate change is managed within your company.
1.4Do you provide incentives for the management of climate change issues, including the
attainment of greenhouse gas (GHG) targets?
Yes
1.5Please complete the table.
Who is entitled to benefit from those incentives?
Management group
The type of incentives
Monetary reward
Further Information
3

Specific targets vary between individuals given the wide nature of Anglo American operations. Targets
will also vary depending on the nature of their specific jobs and how directly they work on climate
change and energy. Those with direct responsibility, as well as their superiors, have well-defined targets
that are directly related to remuneration.
We also have various internal awards for best practice and innovation in environmental management.
Attachments
Module: Risks and Opportunities
Page: Risks & Opportunities Identification Process
2.1Describe your company’s process for identifying significant risks and/or opportunities from
climate change and assessing the degree to which they could affect your business, including the
financial implications.
Group risk management process
The Anglo American Board’s policy on risk management encompasses all significant business risks to
the Group, including financial, operational and compliance risk, which could undermine the achievement
of business objectives as are noted on pages 16 and 17 of the Anglo American Annual Report. This
includes KPIs related to carbon emissions and energy.
The process of risk management is designed to identify internal and external threats to the business and
to assist management in prioritising their response to those risks. Continuous monitoring of risk and
control processes, across headline risk areas and other business-specific risk areas, provides the basis
for regular and exception reporting to business management and boards, ExCo, the Audit Committee,
the Safety and Sustainable Development Board Committee, the Board and to external stakeholders
through the Annual Report and Report to Society.
There is clear accountability for risk management at Anglo American, which is a key performance area
for line managers throughout the Group. The requisite risk and control capability is assured through
Board challenge and appropriate management selection and skills development. Support through
facilitated risk assessment is provided by a central team responsible for ensuring a robust process is
implemented for risk management. During 2009, over 100 separate risk assessment workshops were
conducted reviewing risk in business unit strategies, risks to achieving mine plans, risks in capital
projects and risks to key change programmes. The results of these risk assessments were reported to
senior management and the Audit Committee.
This process includes social, environmental and ethical risks as highlighted in the Disclosure Guidelines
on Socially Responsible Investment issues by the Association of British Insurers. Climate change was
identified as a principal risk to the Group, as is disclosed in Anglo American’s 2009 Annual Report (see
page 65).
Energy risk assessment
Anglo American’s previous Head of Energy led a comprehensive fact finding process on energy in 2008
in order to identify major risks and opportunities across all of its countries of operation, including most
notably South Africa, Brazil, Chile, Australia and Peru.
Three areas of concern were identified during the exercise: energy security and costs in South Africa;
energy costs in Brazil; and improving energy efficiency in increasingly energy intensive operations (a
concern throughout the business). Anglo American’s strategy related to energy is to secure costeffective,
reliable and sustainable sources of energy to underpin its existing operations and the project
pipeline; and to create an internal environment where the full value of energy is recognised.
Opportunities that were identified in the same process included the generation of electrical energy from
coal-mine methane (with obvious climate change mitigation benefits) and the optimisation of various
groups of machinery, including motors and ventilation pumps.
The findings of this exercise were reviewed in detail by BU executives and professionals, and were
presented to the Board.
Climate change risk assessment
Anglo American’s Thermal Coal (South Africa) and Metallurgical Coal (Australia) businesses – seen as
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the Group’s two highest risk areas – conducted risk/opportunity analyses in 2008, given the particular
issues that the coal industry faces. These assessments included in-depth analysis of exposure to a
number of regulatory scenarios (both global and national), the potential impacts of various levels of
carbon taxes, emissions-trading schemes as well as a customer sensitivity analysis to carbon pricing.
During 2009, Anglo American commenced a re-evaluation of its climate change strategy – part of this
was the development of a Group risk assessment by the Group Sustainable Development and Energy
discipline. During 2011, all business units will conduct value-in-use assessments in order to develop risk
and opportunity based climate change strategies for each commodity. Such assessments will be
conducted thereafter on a needs-basis.
Adaptation risk
Anglo American’s climate-change impact-assessment work with Imperial College, London, is aimed as
identifying the hazards posed by climate change to operations is nearing completion. This will enable us
to refine our risk inventory for operations around the world and to examine high-risk sites in more detail
with the purpose of developing adaptation strategies.
Further Information
Attachments
5

Page: Regulatory Risks
3.1Do current and/or anticipated regulatory requirements related to climate change present
significant risks to your company?
Yes
Do you want to answer using:
The table below
3.2A
What are the current and/or anticipated significant regulatory risks related to climate change and
their associated countries/regions and timescales?
Risk
Uncertainty
surrounding
new regulation
Air pollution
limits
Region/Country
South Africa
Timescale
in Years
Current
Australia 0 -- 5
Carbon taxes South Africa Current
Comment
South Africa has aspired greenhouse gas emissions
mitigation actions that would result in a deviation of
around 34% off a business-as-usual scenario by
2020 and around 42% by 2025. The Department of
Environmental Affairs is expected to release a ‘green
paper’ describing a national climate change policy by
the middle of 2010. This will be followed by a public
consultation process and then a Climate Change
White Paper by the end of 2010. It is likely that there
will be penalties if companies do not comply with
emission reduction targets.
During the second half of 2008, the Australian
government released its green and white papers on
Australia’s emissions-trading scheme (ETS), entitled
the Carbon Pollution Reduction Scheme (CPRS). At
the end of April 2010, the Australian Prime Minister
announced that the government has decided to
delay the implementation of the CPRS until after the
current commitment period of the Kyoto Protocol,
citing the lack of bipartisan support for the CPRS
and slow international progress on climate action for
the delay. It was suggested that the CPRS will be
introduced only when there is greater clarity on the
actions of other major economies including the US,
China and India. The CPRS scheme could have had
significant financial implications for all Australian
coal companies, which, while no longer an
immediate issue, is likely to arise again after 2012.
A carbon tax on emissions will be introduced in
South Africa within the next 0-5 years. At the
moment it seems that South Africa is favouring a
carbon tax route, due to the relative simplicity of
introducing such a measure (as compared with a
cap and trade scheme). A South African Carbon Tax
Discussion Document is expected to be released by
the National Treasury by mid-2010, which would
investigate measures to implement carbon pricing.
Under discussion is a phased in carbon tax, starting
at R100/tCO2. To meet its obligations under the
Kyoto Protocol, the UK has been driving a decrease
in GHG emissions through a series of regulations
and initiatives, including the European Union
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Risk
Fuel/energy
taxes and
regulations
Air pollution
limits
Air pollution
limits
Air pollution
limits
International
agreements
Indirect
exposure
through
suppliers and
clients
Region/Country
South Africa
Other: European
Union
Brazil
Chile
Other: Global
Timescale
in Years
Current
Current
Current
Current
Current
Other: Global 0 -- 5
Comment
Emissions Trading Scheme (EU ETS). This applies
only to Tarmac’s cement and lime businesses, which
have fully complied with all obligations under this
scheme.
A R0.02/kWh levy on non-renewable sources of
electricity levy became effective on 1 July 2009. The
2009 Budget addressed environmental fiscal reform
in various ways. One of these was by increasing fuel
levies 17.5c/l. Effective September 1, 2010, a flat
rate CO2 vehicle emissions tax will come into effect.
The emission tax will initially apply to passenger
cars, but will be extended to commercial vehicles
once agreed CO2 standards for these vehicles have
been set.
During the course of 2008, the UK parliament
introduced the Climate Change Act, which sets
legally binding targets to reduce GHG emissions by
34 % by 2020 and 80% by 2050 based on a 1990
baseline. To meet its obligations under the Kyoto
Protocol, the UK has been driving a decrease in
GHG emissions through a series of regulations and
initiatives, including the European Union Emissions
Trading Scheme (EU ETS). This applies only to
Tarmac’s cement and lime businesses, which have
fully complied with all obligations under this scheme.
In the EU, our coal customers fall under the EU ETS
and are therefore exposed to caps in carbon
emissions. Although, to date, this has not impacted
our coal business the risk of gradual fuel switching
away from coal, remains on the horizon and is
dependent on energy security and carbon pricing on
the global market.
As a non-Annex I country, Brazil is not obligated to
limit its emissions under the Kyoto Protocol. The
country’s president, however, announced national
climate change legislation to reduce projected
greenhouse gas emissions by 36.1 to 38.9 percent
by 2020 in late 2009
Chile has a voluntary GHG-reduction target of 20%
by 2024 and has already regulated a 10% increase
in the use of alternative/renewable energy by
companies in the country by 2024 in order to
encourage small-scale hydropower and solar energy
generation and reduce GHG emissions. This came
into force in 2010.
The outcomes of the global climate change
negotiations are likely to ultimately result in binding
reduction targets in many regions, and opportunities
for carbon-reduction in others. The anticipation of
binding targets has already sparked legislation in
individual counties (e.g. Chile and Brazil) in advance
of any mandatory requirements.
The potential imposition of border tax adjustments
on carbon in the United States and European Union
could affect commodities that are imported from
developing countries, with no carbon tax, into those
regions.
3.2B
What are the current and/or anticipated significant regulatory risks related to climate change and
their associated countries/regions and timescales?
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3.3
Describe the ways in which the identified risks affect or could affect your business and your
value chain.
Australia
At the end of April ‘10, the Australian government decided to delay the implementation of the CPRS until
after the current commitment period of the Kyoto Protocol. The CPRS scheme could have had
significant financial implications for all Australian coal companies, which may arise again after 2012.
These risks were identified during an intensive period of interaction with the government and peers on
the scheme’s financial and technical implications; as well as detailed analysis by an internal
preparedness team of the CPRS’ potential impacts and opportunities. One of our major concerns related
to the CPRS was the proposed inclusion of coal-mine fugitive emissions. We have invested significantly
in reducing high concentration methane emissions, but technology for abating the low concentration
ventilation air methane that comprises most of our fugitive emissions is immature; and there is no known
technology capable of abating fugitive emissions from open-cut coal mines in Australia. In the absence
of available technology, the coal industry would have paid a large tax on emissions, which would also
have impacted jobs. Anglo American risked premature closure by 10 years of two major mines and job
losses of more than 2,000 people – and the loss of over 1 billion Australian dollars in royalties to the
government.
South Africa
Regulatory uncertainty: Making decisions regarding investment into new technologies, the design of
operations, the purchasing of equipment, etc, amid regulatory uncertainty is extremely difficult. Our
ability to meet future requirements depends in part on decisions we make now for the medium and longterm.
The trick is to make high-impact choices that are suitable for a relatively wide range of regulatory
scenarios. Making the wrong decisions may affect our ability to meet regulatory requirements, which
may have financial and reputational implications. Carbon taxes: Our exposure to carbon taxes could
affect the profitability of existing operations, as well as growth opportunities. With the potential demise of
CDM and associated CERs, carbon tax regulation, as opposed to a cap & trade system, significantly
impacts our capability to reduce carbon compliance costs. Fuel/energy taxes and regulations: A range of
measures aimed at achieving environmental objectives were proposed/introduced in the 2009 budget in
SA These include a levy on non-renewables; energy efficiency savings incentives; income tax
exemption for revenues earned from the sale of CERs; accelerated depreciation allowances for the
production of renewables and biofuels; biodiesel fuel tax concession and carbon emissions tax on new
passenger vehicles, which will eventually also be extended to commercial vehicles. The extent to which
we can take advantage of incentives, and make decisions that avoid the additional taxes that are being
introduced, will affect profitability.
United Kingdom
The UK has been driving a decrease in GHG emissions through a series of regulations and initiatives,
including the EU ETS. This applies only to Tarmac’s cement and lime businesses, which have fully
complied with all obligations under this scheme. The introduction of the Carbon Reduction Commitment
Energy Efficiency Scheme is not likely to have a major impact on the Group.
In the EU, our coal customers fall under the EU ETS and are therefore exposed to caps in carbon
emissions. Although, to date, this has not impacted our coal business the risk of gradual fuel switching
away from coal, remains on the horizon and is dependent on energy security and carbon pricing on the
global market.
Brazil
Enabling legislation to support the national climate change policy and sector-specific targets and
mitigation plans are not clear at this stage, but it is known that the focus of mitigation efforts will be on
the reduction of deforestation rates, which accounts for the majority of Brazil’s GHG emissions. The
power and transportation sectors are relatively low-impact sectors in Brazil, given the high proportion of
hydro-electric power and bio-ethanol in the country’s energy mix. Our GHG emissions in Brazil are
almost entirely linked to its use of liquid fuels and electricity. These operations are therefore not likely to
be the major focus of regulation - despite existing and ongoing voluntary reduction efforts on the part of
Brazilian operations, and some increased regulatory pressure to continue on a low-carbon path.
However, there is also some risk associated with the government reforestation plans that include the
continued expansion of protected areas, which may impact upon the areas in which we may be granted
mining licenses in the future, and the proportion of existing land that may be ring-fenced for
conservation.
Chile
The Group’s operations in Chile will be impacted by the voluntary GHG-reduction target in terms of the
cost of compliance, and have to find alternative sources of energy in the form of small-scale hydropower
and solar.
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3.4Are there financial implications associated with the identified risks?
Yes
3.5Please describe them.
Anglo American has developed ‘cost curves’ for GHG charges for various exposure and pricing levels,
which range from 10% exposure at US$10 per tonne of carbon, to 100% exposure at US$100 per tonne
of carbon. For example, based on our 2008 South African emissions profile, a price of $13 per tonne of
CO2 with a 34% exposure could cost us nearly $40 million per annum. We have also done this exercise
for our Australian coal mines and developed cost curves for future pricing scenarios.
The total CPRS bill for the Australian coal industry was an estimated 14 billion Australian dollars in the
first 10 years of the scheme, including 118 million Australian dollars each year in respect of Anglo
American’s operations in the country. The financial impact, beyond Anglo American, could have
included the loss of over 1 billion Australian dollars in royalties to the government and the impact of job
losses of more than 2,000 people as a result of premature closure of two major Anglo American mines.
3.6Describe any actions the company has taken or plans to take to manage or adapt to the risks
that have been identified, including the cost of those actions.
Anglo American is in the process of developing a mandatory Climate Change Performance Standard,
which will outline detailed carbon-related performance standards for Group operations and enable us to
lower our exposure to, and potential cost of compliance with, emerging regional carbon policies. The
Standard will also require our procurement process to consider energy and carbon performance of
equipment and machinery in purchasing decisions.
Australia: Metallurgical Coal has engaged in an intensive period of engagement on the scheme’s
financial and technical implications; and conducted a detailed study of the CPRS’ potential impacts, and
opportunities for additional carbon abatement and energy efficiency initiatives.
South Africa: All policy developments are reviewed every six months at the Group Safety & SD Board
Committee. We engage in policy processes through the SA Chamber of Mines and directly with
government.
South African operations have since 2004 worked towards a Group GHG-reduction target that, aside
from the benefit of mitigating climate change and reducing exposure to carbon taxes and reductiontargets,
has developed our understanding of the issue and our mitigation options, and left us better
prepared for mandatory reduction targets and associated reporting requirements. Climate change
related projects include CDM projects (listed under question 6.3); as well as a number of efficiency
measures related to heavy machinery.
United Kingdom: Anglo American’s cement and lime businesses (in Tarmac) have complied fully with all
obligations under the European Union Emissions Trading Scheme.
Brazil: Anglo American’s copper and nickel operations have for some time engaged in GHG reduction
and energy efficiency on a voluntary basis and have in this way worked to reduce their exposure to
carbon taxes and enhance their ability to respond to reduction targets. Anglo American is a founding
member of the GHG Protocol in Brazil and was in 2009 one of 10 local companies to submit a complete
GHG inventory. The Group’s iron ore projects are in the process of establishing a partnership with a
local university to map its current and future emissions profile in order to identify carbon-reduction and
energy-efficiency opportunities.
Chile: Our operations in Chile are engaged in initiatives designed to meet both Group and national
reduction targets and are investigating further options. Operations, in response to legislation relating to a
mandatory 10% increase in the use of small-scale alternative/renewable energy, have reached an
agreement with a local power supply company to reopen the La Ermita hydro-electric power station in
the San Francisco River (near Los Bronces) and are evaluating other potential sites for small-scale
hydro-electric power plants. Another initiative involves research into the construction of a pilot power
generator based on vertical-axis wind turbines.
Research and technology: Clean coal: Anglo American is involved in research through the International
Energy Agency’s Clean Coal Centre and Greenhouse Gas Programme and in regional initiatives in both
Australia and SA. In Australia, we are investing $55 million in the ambitious COAL21 coal industry
programme to develop a portfolio of low-emission demonstration projects.
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Anglo American is also involved in the Callide Oxyfuel Project in central Queensland. The project will be
a cutting-edge demonstration of how existing coal-fired power stations can be adapted to produce
almost zero-emission electricity.
We are also a partner in the US-based FutureGen alliance - a public-private partnership to design, build,
and operate a coal-fueled, near-zero emissions power plant.
Carbon sequestration: Anglo American is a partner in the Otway storage project in Australia – the
world’s largest CCS demonstration project. More than 65,000 tonnes of CO2 have been injected and
stored in a depleted gas reservoir deep underground and further injections into different formations are
being planned. We are also supporting an initiative in SA that will develop a CO2 storage atlas aimed at
identifying potential sites for the geological storage of CO2 in the country.
In late 2009, Anglo American became a founding member of the Global Carbon Capture and Storage
Institute (GCCSI) - a global initiative to facilitate the development and deployment of CCS projects.
During 2009, we acquired a stake of more than 20% in Australian-based MBD Energy, which will soon
commence trials of leading-edge carbon capture and conversion technology using algal synthesisers at
three of Australia’s largest GHG emitting coal-fired power plants.
Anglo American is also working with Johnson Matthey to research and develop technologies, which
mitigate GHGs from the mining, and use of, coal with an initial focus on ventilation air methane in mining
operations.
3.7Please explain why you do not consider your company to be exposed to significant regulatory
risks - current and/or anticipated.
3.8
Please explain why not.
Further Information
Attachments
10

Page: Physical Risks
4.1Do current and/or anticipated physical impacts of climate change present significant risks to
your company?
Yes
Do you want to answer using:
A text box
4.2A
What are the current and/or anticipated significant physical risks, and their associated
countries/regions and timescales?
Risk Region/Country Timescale in Years Comment
4.2B
What are the current and/or anticipated significant physical risks, and their associated
countries/regions and timescales?
Climate change has the potential to impact our assets, people and operations through the long-term
availability of water for operations, energy security, disruption to linear infrastructure, flooding affecting
mines, storms affecting port availability and rail power supply, changes in life of mine projections, and
has the ability to undermine corporate socio-economic development efforts.
We believe that all of our regions of operation (the major ones being Brazil, Chile, South Africa, Australia
and the United Kingdom) will be affected in varying degrees by most physical risks, but South Africa,
Australia and some parts of Chile are most vulnerable to water scarcity and South Africa to changing
climate-specific disease dynamics.
We have already experienced unusual weather patterns (like unseasonal flooding in the region of our
coal mines in Mpumulanga in South Africa), which may already be attributable to climate change. The
major impacts associated with climate change are expected to start to materialise within the next 20-30
years.
4.3
Describe the ways in which the identified risks affect or could affect your business and your
value chain.
Water scarcity: Changes in precipitation patterns may reduce the amount of water available for business
activities, increase competition for available water and increase the cost of water.
This may:
• result in operational disruptions and associated financial loss;
• impact on future growth and license to operate;
• increase the cost of pre-treatment to obtain desired water quality;
• increase costs for wastewater treatment to meet more stringent regulations;
• result in regulatory restrictions for specific industrial activities and investments;
• increase the responsibility (and costs) associated with implementing community water infrastructure
and watershed restoration projects to mitigate reputation risks.
Extreme weather conditions may result in energy security challenges; disruption to linear infrastructure;
flooding affecting mines; storms affecting port availability and rail power supply. These risks may have
serious implications for:
Productivity levels and costs♣
The♣ transportation of Anglo American products
The safety of our employees,♣ contractors and service providers
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For example, Anglo Platinum’s Amandelbult mine experienced a once in 200 year flood in 2008. The
mine was shut for two months. This illustrates the susceptibility of some of Anglo Platinum’s facility to
extreme weather events. The concern is that climate change could result in a once in 200 year flood
now occurring more frequently. To illustrate the possible impact of an extreme weather event, should
platinum production be interrupted for two weeks, this is equivalent to R1.3bn in revenue at current spot
prices of $1,700/oz. This is more than 3.5% of Anglo Platinum's 2009 revenue.
Human health: The health of our employees and local communities may be at greater risk due to the
spread of climate-dependent infectious diseases (such as malaria which may start to spread to
previously-unaffected areas), sea level rise leading to salinisation of land and water sources, crop failure
(leading to malnutrition) and diarrhoeal disease. For Anglo American, this could mean:
Increased spending on employee- and community-health♣ initiatives
Lower levels of productivity♣
Negative impacts on local♣ service providers, meaning that goods and services may have to be
procured from afar
Potentially negative impact on the safety of employees in the♣ workplace
4.4Are there financial implications associated with the identified risks?
Yes
4.5Please describe them.
The financial implications of water scarcity
A decease in the availability of water, and increased competition♣ for the resource, will push up the unit
cost of water.
Water scarcity may♣ result in the need to transport water from further away or build expensive
infrastructure to pipe it to where it is needed.
Water scarcity will mean♣ that more water needs to be re-used, leading to additional spending on pretreatment
(to obtain desired water quality for processes) and for waste water disposal (to meet more
stringent regulation).
Insufficient water♣ resources may result in regulatory restrictions for specific industrial activities and
investments and impact on future growth and the granting of water licences.
In the face of severe water scarcity, resources will have to be♣ allocated to re-designing mining
processes to use less water.
Implementing♣ community water infrastructure and watershed restoration projects, with their associated
costs, may become a more common ‘licence to operate’ condition.
The financial implications of extreme weather events:
Lower♣ productivity levels owing to disruptions to infrastructure, mine flooding and energy supply
interruptions.
Increased operating costs due to disruptions♣ (smelting processes, for example, are very costly to
resume once there has been a power failure) and emergency management (floods, storms).
The♣ transportation of Anglo American products may be delayed because of port availability and rail
power supply.
The safety of our employees, contractors♣ and service providers will be at risk, potentially driving skills
away from the industry.
For example, Anglo Platinum’s Amandelbult mine experienced a once in 200 year flood in 2008. The
mine was shut for two months. This illustrates the susceptibility of some of Anglo Platinum’s facility to
extreme weather events. The concern is that climate change could result in a once in 200 year flood
now occurring more frequently. To illustrate the possible impact of an extreme weather event, should
platinum production be interrupted for two weeks, this is equivalent to R1.3bn in revenue at current spot
prices of $1700/oz. This is more than 3.5% of Anglo Platinum's 2009 revenue.
The financial implications of health risks:
Increased spending on employee health costs♣ due to higher, and uncharacteristic, incidents of malaria
and other climate-dependent diseases
Lower levels of productivity owing to higher♣ rates of absenteeism
Increased spending on community-health initiatives♣ owing to higher, and uncharacteristic, incidents of
malaria and other climate-dependent diseases
Negative impacts on service providers based♣ locally – meaning that goods and services may have to
be procured from afar, at greater expense.
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4.6Describe any actions the company has taken or plans to take to manage or adapt to the risks
that have been identified, including the cost of those actions.
General risks
Actions taken, at a Group level, include our climate-change impact-assessment work with Imperial
College London, aimed at identifying the hazards posed by the regional, physical, climate change risks
to Anglo American operations. We have invested £105,000 in this project, which will shortly deliver a
model for the Olifants River catchment, which includes our Thermal Coal and Anglo Platinum
operations. In addition, we are embarking on a project with the UK Met Office to model regional climate
change implications for our Minas Rio operation and port facilities. Our intention is to use the results of
the Imperial College and UK Met office modelling to develop business risk templates that will allow us to
design in adaptation response measures into new project and current operations.
Water risks
Water reduction and efficiency initiatives include the eMalahleni water reclamation plant, a joint
development between Anglo American and BHP Billiton near Witbank in South Africa’s Mpumalanga
province, which is an example of how water scarcity can be addressed to the benefit of both the
Company and the community. The capital costs for this project amounted to R300 million. Every cubic
meter costs about R1.79 ($0.29) to treat.
Of the 25 mega litres of water it purifies to potable quality every day, 18 mega litres are supplied to the
eMalahleni local municipality, which for years has struggled to meet the water demands of the fastgrowing
Witbank area. All the water needs of Anglo Coal’s Greenside, Landau and Kleinkopje collieries,
as well as its shared services departments, are met by the plant. A pre-feasibility study into the
expansion of the plant to a 50,000 m3 per day facility is under way as part of a long-term water
management solution for Thermal Coal’s Landau colliery.
An example of the type of costs associated with getting water into water scarce areas is detailed below.
This type of intervention may become increasingly necessary if water becomes scarcer in alreadyscarce
regions, as well as regions that were not previously under pressure:
There was no bulk water infrastructure in the eastern limb of the Limpopo platinum mines in 1998 when
Anglo Platinum and other mines wanted to start new developments in the area. A group of interested
parties established the Lebalelo Water User Association (LWUA), which enabled the members to
collaborate to install major infrastructure. The LWUA developed the original pipeline, of which Anglo
Platinum’s capital portion was R149 million (in 2002) to secure capacity for Modikwa, Twickenham, Ga
Pasha and other developments that may need water in future.
They had a temporary allocation of water from the Agricultural Department in Limpopo which, while it
lapsed in 2007, gave Anglo Platinum the opportunity to start up Modikwa and Twickenham earlier than
otherwise possible. The agreement with the Department of Water Affairs was that LWUA will need to
provide its own resource before July 2007. The raising of the Flag Boshielo Dam wall was the best way
to secure this allocation; the total cost of this development was R 225m in 2007, of which Anglo
Platinum’s portion was 66%.
Several other water projects are being implemented throughout the Group. For example, Anglo
Platinum’s joint venture Bafokeng Rasimone platinum mine outside Rustenburg in South Africa started
re-using the water from its return water dam for its operational process in 2009. This was achieved by
installing a simple sand filter that removes unwanted water-borne solids. As a result, the monthly
amount of potable water used by the process plant has fallen from nearly 150,000 m3 in September
2008 to less than 60,000 m3 in June 2009. The project’s R2.8 million ($330,000) phase-one investment
has already been offset by these savings. The mine has also commissioned a water treatment plant,
which has reduced its water intake from the local municipality by 38%.
4.7Please explain why you do not consider your company to be exposed to significant physical
risks - current and/or anticipated.
4.8Please explain why not.
Further Information
Attachments
13

Page: Other risks
5.1
Does climate change present other significant risks - current and/or anticipated - for your
company?
Yes
Do you want to answer using:
The table below
5.2A
What are the current and/or anticipated other significant risks, and their associated
countries/regions and timescales?
Risk
Region/Country
Timescale
in Years
Comment
Other:
Undermining
community socioeconomic
development
South Africa
Current
Climate change, left unmitigated and without
adaptation measures, will affect vulnerable
communities the most severely. The majority of
Anglo American’s operations are in the developing
world, where we engage in numerous socioeconomic
development initiatives as part of our
Social and Labour Plans in South Africa, but also
throughout the rest of the world. These are
directed in particular at vulnerable communities
surrounding our operations as well as our supply
chain. The impact of climate change in the context
of existing community vulnerabilities has the
potential to undermine the desired outcomes of
Anglo American’s development objectives.
Anglo American aims to be an investment of
choice, a partner of choice and an employer of
choice. The company’s appeal as any of these
three depends on several factors – not least of
which is our performance as a responsible
corporate citizen. Climate change is, in the
developed world in particular, a core component of
this and is increasingly important to the investor
community as well as current and potential
employees.
Reputational
risks
Rest of world
Current
5.2B
What are the current and/or anticipated other significant risks, and their associated
countries/regions and timescales?
5.3Describe the ways in which the identified risks affect or could affect your business and your
value chain.
Undermining community socio-economic development
The impact of climate change in the context of existing community vulnerabilities has the potential to
undermine the desired outcomes of Anglo American’s development objectives. While not a result of
climate change, the earth quake that struck Chile in February 2010 is an example of the kind of largescale
damage that natural events can cause – Anglo American is active in the country and donated $10
million and helped with reconstruction work. Extreme weather events related to climate change with a
similar scale of damage may disrupt infrastructure, like roads, schools, clinics and sanitation, that Anglo
American often builds around its operations to improve the livelihoods of local communities. The
14

financial implication would be the unplanned cost of reconstruction on top of the initial investment as
well as the unquantifiable cost to the community.
Reputation risk
Climate change is, in the developed world in particular, an increasingly important consideration for the
investor community as well as current and potential employees. A poor performance in this regard could
result in the company being excluded from various ‘responsible investment’ funds and discourage
ethical, conscious and well-educated individuals from joining the company.
It is difficult to quantify how many potential employees may consider Anglo American’s reputation and
climate change performance when making employment decisions. However, research suggests that
across industries, job seekers – in particular those who are skilled and are able to choose between a
range of employers – are strongly influenced by a company’s reputation.
Again, the number of investors that take issues like climate change into account in their investment
decisions, what type of weighting they attach to the issue, and whether any have decided to invest in
Anglo American or not because of the company’s performance or impact, is unknown. However, the
number of queries related to Anglo American’s climate change performance from the investor
community has increased significantly over the years.
5.4Are there financial implications associated with the identified risks?
Yes
5.5
Please describe them.
Undermining community socio-economic development
We cannot provide an exact amount because of the wide scope of the risk, but it could start at as little
as $10,000 to address flood damage to a local school, to well into tens of millions of dollars.
Reputation risk
It is not possible to quantify the precise financial risk to Anglo American because of the degree of
uncertainty described in 5.3. However, research shows remarkable growth in both the number of SRI
funds, as well as investment in those funds, over the last decade. This trend contributes to the business
case for corporate responsibility – and a meaningful response to climate change.
5.6
Describe any actions the company has taken or plans to take to manage or adapt to the other
risks that have been identified, including the costs of those actions.
Undermining community socio-economic development
The Anglo American Social and Environmental Impact Assessment Standard (S&EIA) mandates that
operations, among several other requirements, consider potential “short- and long-term environmental
and social scenarios”, including, for example, the impact of extreme events on the operation and host
communities. This S&EIA Standard forms the basis of operational social and environmental planning.
The Anglo American Socio-Economic Assessment Toolbox (SEAT) programme continues to be the
primary means by which we seek to enhance the development outcomes and capacities of host
communities. SEAT reports are required at existing operations every three years. Each SEAT
assessment includes consideration of a spectrum of community-related risks (including environmental
issues), which influence the nature of development interventions.
In addition, Anglo American’s climate-change impact-assessment work with Imperial College, London,
will help identify the most significant hazards posed by climate change to operations, which may then be
included in operational Social Management Plans. The cost of S&EIAs can range from R3 million all the
way to R10 million for very large or environmentally sensitive projects
Reputation risk
All of Anglo American’s work on climate change mitigation and adaptation (see Anglo American Report
to Society 2009, pages 22-25) helps to improve our reputation in this regard. We also participate in a
number of externally assessed surveys, engage actively with investors on sustainable development and
contribute to SRI analyst profiles and information queries. There is no additional cost to this work as it is
borne by existing budgets.
15

5.7
Explain why you do not consider your company to be exposed to other significant risks - current
and/or anticipated.
5.8Please explain why not.
Further Information
Attachments
Page: Regulatory Opportunities
6.1
Do current and/or anticipated regulatory requirements related to climate change present
significant opportunities for your company?
Yes
Do you want to answer using:
A text box
6.2A
What are the current and/or anticipated significant regulatory opportunities and their associated
countries/regions and timescales?
Opportunities Region/Country Timescale in Years
Comment
6.2BWhat are the current and/or anticipated significant regulatory opportunities and their
associated countries/regions and timescales?
South Africa
Fiscal incentives: The 2009 Budget in South Africa addressed environmental fiscal reform in various
ways. A range of measures aimed at achieving environmental objectives were proposed. Opportunities
include energy efficiency savings incentives; income tax exemption for revenues earned from the sale of
CERs; accelerated depreciation allowances for the production of renewables and biofuels; and biodiesel
fuel tax concession. The exact timeline for implementation of these incentives is unclear because they
have not been finalized, but they are expected to materialize within the next 1-3 years.
Clean development mechanism (CDM): Anglo American operations located in non-Annex I countries,
like South Africa, could qualify for carbon credits through the CDM. All South African operations
continually evaluate opportunities for CDM projects.
Europe
Euro 6 emissions legislation coming into force for cars and light commercial vehicles in Europe from
2014. This legislation tightens allowable nitrogen oxides (NOx) emissions from diesel vehicles by around
70% compared with today’s Euro 4 standards.
Australia
Future GHG-reduction targets: While the implementation of the CPRS has been delayed, an alternative,
post-commitment period, proposal with mitigation targets will be negotiated and is likely to come into law
within the next five years. Anglo American has the opportunity to position itself favourably by reducing its
carbon footprint and advancing technologies in the coming years, in anticipation of this regulation.
16

Global
We are currently busy with a baseline assessment of our biodiversity potential for carbon offsets through
avoided degradation and deforestation. As part of this assessment, we are evaluating the potential to
enhance carbon retention of the soil in the land under our management.
India
Anglo American’s export coal into the Indian market is of a higher quality than domestic reserves, and if
used instead of domestic production, will improve the thermal power plant efficiencies and related
carbon performance.
6.3
Describe the ways in which the identified opportunities affect or could affect your business and
your value chain.
South Africa
Fiscal incentives: The extent to which Anglo American is able to take advantage of energy efficiency
savings incentives; income tax exemption for revenues earned from the sale of CERs; accelerated
depreciation allowances for the production of renewables and biofuels; and biodiesel fuel tax
concessions The proposed incentives have the potential to make more CDM and energy efficiency
projects at Anglo American viable, and promote the use of biofuels within the business.
Clean development mechanism (CDM): Operations in developing countries continually evaluate
opportunities for CDM projects, with the desired outcome of reducing GHG emissions and earning the
company CERs. Current examples include, but are not limited to:
- A small-scale methane flaring project, which has been started at New Denmark Colliery in South
Africa. As part of a CDM project, the mine plans to install two mobile flares into its existing, post-mining,
methane-drainage system. We anticipate that this will reduce the colliery’s CO2e emissions by an
estimated 100,000 tonnes per year.
- A CDM fuel-switch project at Scaw’s Union Junction site that entails the conversion from producer gas
to natural gas, and an associated reduction in CO2 emissions, which may qualify as a retrospective
CDM project. It utilises a methodology that allows Certified Emission Reductions to be generated by
replacing fossil fuel with cleaner generation. It is estimated that the project will deliver approximately
110,000 CERs.
- The installation of a thermal cogeneration heat recovery process on a high pressure cooling system at
Anglo Platinum’s Waterval Smelter plant. The project involves using the hot water from the converters
and bypassing the current fin fan coolers, using an organic Rankin cycle from Ormat to generate
electricity.
Europe
Euro 6 emissions legislation coming into force for cars and light commercial vehicles in Europe from
2014. This legislation tightens allowable nitrogen oxides (NOx) emissions from diesel vehicles by around
70% compared with today’s Euro 4 standards. As platinum group metals are a key component in
catalytic converters in cars, Anglo Platinum is a positive contributor to a growing market assisting the
automobile industry to minimise carbon dioxide emissions. Tightening of vehicle emission legislation will
increase demand for platinum group metals. An example of this is Euro 6 emissions legislation coming
into force for cars and light commercial vehicles in Europe from 2014 which tightens allowable nitrogen
oxides (NOx) emissions from diesel vehicles by around 70%, compared with today’s Euro 4 standards.
Australia
Anglo American’s methane-fired power stations in Australia (Capcoal and Moranbah), as well as the
Group’s investment into advancing research on innovative technologies designed to oxidise or
biologically capture methane in trace concentrations, will continue to position the company more
favourably in a carbon-constrained world and in anticipation of new regulation after the first commitment
period of the Kyoto Protocol when Australia is set to revisit plans for a carbon-reduction scheme.
6.4Are there financial implications associated with the identified opportunities?
Yes
17

6.5
Please describe them.
The potential financial implications of the proposed fiscal incentives in South Africa have not yet been
quantified given that the proposal is relatively new. The financial impact is expected to be positive given
the wide range of energy efficiency projects being implemented, and potential CERs from CDM projects.
The CERs generated from Anglo American’s CDM projects may also be used to generate revenue, or
may eventually be sold within the business to other business units that have GHG-reduction obligations
– this will also constitute a cost saving.
It is likely that legislation tightening for allowed vehicle emissions will benefit Anglo Platinum, as more
PGMs would be needed for the catalytic converters necessary to meet these regulations.
6.6
Describe any actions the company has taken or plans to take to exploit the opportunities that
have been identified, including the investment needed to take those actions.
South Africa
Fiscal incentives: Anglo American is well positioned to take advantage of energy efficiency savings
incentives and income tax exemption for revenues earned from the sale of CERs, with its range of
energy efficiency initiatives and potential CDM projects. Further projects may also be planned if the
package is adopted, and the incentives make more projects viable. The use of biofuels is being
explored.
Clean development mechanism (CDM): Operations in developing countries continually evaluate
opportunities for CDM projects, with the desired outcome of reducing GHG emissions and earning the
company CERs. Current examples include, but are not limited to:
- Anglo Thermal Coal’s New Denmark colliery is commissioning a US$1.2 million methane gas-flaring
project. The project involves the installation of two mobile flaring-off mechanisms that will be
incorporated into the mine's existing methane drainage system. The mobile flare is a joint New
Denmark-Gemini Carbon concept and is a CDM world-first. Flaring methane, rather than venting it,
renders it 18.5 times less harmful to the environment. We anticipate that this will reduce the colliery’s
CO2e emissions by an estimated 100,000 tonnes per year. Electricity generation is unfortunately not
viable owing to the irregular flow rates emitted from the drainage holes, changes in the quality of the gas
and a number of other factors.
- A CDM fuel-switch project at Scaw’s Union Junction site that entails the conversion from producer gas
(from coal) to natural gas, and an associated reduction in CO2 emissions, was submitted as a CDM
project. It utilises a methodology that allows Certified Emission Reductions to be generated by replacing
fossil fuel with cleaner generation. The project has been audited for the backdated Voluntary Credits
from May 2004 until the end of 2008 and the Project Design Document has been accepted by the
Chicago Climate Exchange and is being validated. It is estimated that the project will deliver
approximately 110,000 CERs.
The feasibility of generating electricity from waste heat recovered from the DRI kilns at Scaw, as well as
the process waste produced at the DRI, was considered in 2009 and the pre-feasibility study will be
done in 2010. This could potentially lead to a CDM project.
- The installation of a thermal cogeneration heat recovery process on a high pressure cooling system at
Anglo Platinum’s Waterval Smelter plant. The project involves using the hot water from the converters
and bypassing the current fin fan coolers, using an organic Rankin cycle from Ormat to generate
electricity.
Australia
Anglo American’s methane-fired power stations in Australia (Capcoal and Moranbah), as well as the
Group’s investment into advancing research on innovative technologies designed to oxidise or
biologically capture methane in trace concentrations, will continue to position the company more
favourably in a carbon-constrained world and in anticipation of new regulation after the first commitment
period of the Kyoto Protocol when Australia is set to revisit plans for a carbon-reduction scheme.
18

6.7
Explain why you do not consider your company to be presented with significant opportunities -
current and/or anticipated.
6.8
Please explain why not.
Further Information
Attachments
Page: Physical Opportunities
7.1Do current and/or anticipated physical impacts of climate change present significant
opportunities for your company?
Yes
Do you want to answer using:
A text box
7.2AWhat are the current and/or anticipated significant physical opportunities and their
associated countries/regions and timescales?
Opportunities Region/Country Timescale in Years
Comment
7.2B
What are the current and/or anticipated significant physical opportunities and their associated
countries/regions and timescales?
Opportunities are being assessed through our climate-change impact-assessment projects with Imperial
College and the UK Met Office that will deliver regional climate change models, which will be used to
establish a risk/opportunity inventory of our current and future operations around the world and influence
our methodology for taking climate change risks and opportunities into account in mine planning.
No direct opportunities related to physical changes have been identified (like an increase in precipitation
in a water-scarce region, for example). The opportunity for Anglo American lies in our ability to
understand the anticipated changes, and to develop robust adaptation strategies that guard our
operations, and the value chains, environments and communities linked to those operations, against
negative impacts. This is true for all of our operations throughout the world, but in particular for high-risk
regions with already-scarce water resources such as South Africa, Australia and parts of Chile. The
timescale for taking advantage of this opportunity ranges from today to indefinitely into the future as
climatic changes materialise and strategies need to be revised.
7.3Describe the ways in which the identified opportunities affect or could affect your business
and your value chain.
Developing robust adaptation strategies based on our work with Imperial College will enable Anglo
American operations to guard our operations, and the value chains, environments and communities
linked to those operations, against the negative impacts of climate change. More than simply managing
risk, this is an opportunity for us to be more competitive than our peers who often operate in the same
region and face the same risks. It is also an opportunity for us to work towards our vision of becoming a
19

partner of choice – if we are able to extend the resilience we build into our operations to communities,
the environment and our value chain through proactive planning, engagement and ‘climate-resilient’
community investments.
For example, a study on the potential impact of climate change on the water supply system proposed for
the Quellaveco project in Peru’s Tambo water basin has been completed. The study concluded that
higher temperatures may cause an increase in evaporation from the nearby Pacific Ocean, ultimately
leading to higher levels of precipitation in the Andes and an estimated 20% increase in the Tambo
basin’s headwaters between 2010 and 2039. This information was tested against the proposed water
system, which was found to be well-placed to handle this type of change. If this wasn’t the case, this
information could have been used to alter the design while still in the planning stages, and therefore
saving the company future expenses that could have been avoided.
7.4
Are there financial implications associated with the identified opportunities?
Yes
7.5
Please describe them.
The example used in question 7.3 (repeated below) gives an indication of the way in which costs may
be avoided, although we are not able to provide an exact figure due to the uncertainty associated with
future changes, and the level of damage that may occur in the absence of adaptation strategies . We
are confident that proactive planning around likely climatic shifts will save the company money, and
increase competitive advantage – particularly when considered in the early planning stages of new
projects.
A study on the potential impact of climate change on the water supply system proposed for the
Quellaveco project in Peru’s Tambo water basin has been completed. The study concluded that higher
temperatures may cause an increase in evaporation from the nearby Pacific Ocean, ultimately leading to
higher levels of precipitation in the Andes and an estimated 20% increase in the Tambo basin’s
headwaters between 2010 and 2039. This information was tested against the proposed water system,
which was found to be well-placed to handle this type of change. If this wasn’t the case, this information
could have been used to alter the design while still in the planning stages, and therefore saving the
company future expenses that could have been avoided.
7.6
Describe any actions the company has taken or plans to take to exploit the opportunities that
have been identified, including the investment needed to take those actions.
As mentioned previously, Anglo American’s major initial response has been its work with Imperial
College, London, on developing regional models for likely climate changes, upon which risk registers
and adaptation strategies will be based. This is also a consideration that will be integrated into Anglo
American’s ‘Project Way’ (a Group guideline for new mining projects) and a requirement in operational
Water Action Plans (methodology in pilot phase). Site-level adaptation strategies will be developed as
this work matures, and costs are not yet clear. The Company has invested £150,000 in the work
conducted by Imperial College.
7.7
Explain why you do not consider your company to be presented with significant opportunities -
current and/or anticipated.
7.8
Please explain why not.
Further Information
20

Page: Other Opportunities
8.1Does climate change present other significant opportunities - current and/or anticipated - for
your company?
Yes
Do you want to answer using:
A text box
8.2AWhat are the current and/or anticipated other significant opportunities and their associated
countries/regions and timescales?
Opportunities Region/Country Timescale in Years
Comment
8.2B
What are the current and/or anticipated other significant opportunities and their associated
countries/regions and timescales?
Reputation opportunity: While reputational issues linked to how Anglo American addresses climate
change has also been listed as a risk, taking meaningful action on the issue is also an opportunity to
attract talented and ethical employees into our workforce, and be the partner of choice for organisations,
other businesses and governments with expectations of proactive and responsible carbon management.
Synergies with other projects: We are investigating how we can use revenue that could be generated by
CERs to enhance not only our response to climate change, but also other priority areas.
For example, we could integrate carbon abatement and biodiversity programmes in a way that
generates CERs through reforestation programmes. Another option includes installing solar-water
heating in communities with no access to electricity, which has the additional benefit of climate change
mitigation and CERs should the programme qualify as a CDM project. We could also work with
communities to improve agricultural and pastoral management in order to increase organic carbon in the
soils and thereby optimise the natural ecosystem capacity to sequester carbon.
All of these are opportunities that are currently available, in developing countries like South Africa and
Brazil in particular. The community-carbon link is especially important in South Africa, while carbonbiodiversity
links could work especially well given the Brazilian government’s focus on decreasing the
rate of deforestation in that country.
8.3
Describe the ways in which the identified opportunities affect or could affect your business and
your value chain.
Reputation opportunity: While reputational issues linked to how Anglo American addresses climate
change has also been listed as a risk, taking meaningful action on the issue is also an opportunity to
attract talented and ethical employees into our workforce, and be the partner of choice for organisations,
other businesses and governments with expectations of proactive and responsible carbon management.
Synergies with other projects: We are investigating how we can use revenue that could be generated by
CERs to enhance not only our response to climate change, but also other priority areas.
For example, we could integrate carbon abatement and biodiversity programmes in a way that
generates CERs through reforestation programmes. Another option includes installing solar-water
heating in communities with no access to electricity, which has the additional benefit of climate change
mitigation and CERs should the programme qualify as a CDM project. We could also work with
communities to improve agricultural and pastoral management in order to increase organic carbon in the
soils and thereby optimise the natural ecosystem capacity to sequester carbon.
All of these are opportunities that are currently available, in developing countries like South Africa and
Brazil in particular. The community-carbon link is especially important in South Africa, while carbon-
21

iodiversity links could work especially well given the Brazilian government’s focus on decreasing the
rate of deforestation in that country.
8.4Are there financial implications associated with the identified opportunities?
Yes
8.5
Please describe them.
Linking carbon-abatement objectives with other work streams, such as biodiversity and community
development, has the potential to enhance the outcomes of our financial investments. While this will not
necessarily result in altered social investment spending, promoting broad-based outcomes will help the
company meet multiple objectives.
The reputational benefits are not possible to quantify, despite the intuitive business case.
8.6Describe any actions the company has taken or plans to take to exploit the opportunities that
have been identified, including the investment needed to take those actions.
Anglo American has proactively put mechanisms in place to encourage multi-disciplinary collaboration.
For example, our mandatory social and environmental impact assessment standard requires a holistic
view of the likely impact of an operation. Similarly, Anglo American’s Socio-Economic Assessment
Toolbox raises community concerns and opportunities across a spectrum of disciplines.
Though collaboration on a practical level is still in early stages, an example is a proposed community
solar-water heating project.
22

Module: Strategy
Page: Strategy
9.1
Please describe how your overall group business strategy links with actions taken on risks and
opportunities (identified in questions 3 to 8), including any emissions reduction targets or
achievements, public policy engagement and external communications.
Anglo American’s climate change strategy is currently being revised, along with new performance
management and target-setting protocols. This is a particularly opportune time given the restructuring of
the Group in late 2009, which rendered some of the previous business unit targets obsolete. The
restructuring will also sharpen our focus on a narrower range of commodities once non-core assets are
sold – this changes the Group’s emissions profile, and mitigation options. Some our major focus areas
in the past, which are not likely to change significantly going forward, revolve around the items below.
The specific risks and opportunities are listed alongside the items
Our process:
This item addresses risks related to regulation, including emission reduction targets, carbon taxes and
emission-trading schemes. Our current energy target is a 15% reduction in energy use per unit of
production by 2014, based on a 2004 baseline. Our current GHG target is a 10% reduction in energy
use per unit of production by 2014, based on a 2004 baseline. Successful, high-profile carbon
abatement projects include Anglo American’s coal seam methane-fired power stations at Capcoal and
Moranbah North in Australia (equal to a reduction of 2.3 million tonnes of CO2 a year) and the Lisheen
wind farm in Ireland (part of the Lisheen zinc and lead mine’s closure plan, which currently meets all of
the mine’s electricity needs and 57% of the local community’s). Energy efficiency projects are
widespread and mostly include projects related to the optimisation of energy-intensive machinery used
in the mining industry. The opportunities, which this item responds to, include incentives around energy
efficiency and CDM projects.
Our products:
This item responds to the risks associated with our coal business in particular, and the positive impact,
for example, of platinum in the use of catalytic converters and other emissions reducing applications.
Our response to the risks associated with our coal business is largely focused on research related to
advancing clean-coal technologies and carbon sequestration. Anglo American is involved in research
through the International Energy Agency’s Clean Coal Centre and GHG Programme and in regional
initiatives in both Australia and South Africa. In Australia, we are investing $55 million in the ambitious
COAL21 coal industry programme to develop a portfolio of low-emission demonstration projects in
conjunction with governments, power generators and equipment manufacturers. Anglo American is also
involved in the Callide Oxyfuel Project in central Queensland, which we expect to be a world first
demonstration of how existing coal-fired power stations can be adapted to produce almost zeroemission
electricity. We participate in a number of carbon sequestration initiatives, ranging from carbon
capture and storage (CCS), to biological sequestration. One of these is the Otway storage project in
south-western Victoria in Australia – the world’s largest CCS demonstration project. We are also
supporting an initiative in South Africa that will develop a CO2 storage atlas aimed at identifying
potential sites for the geological storage of CO2 in the country. We are also a founding member of the
Global Carbon Capture and Storage Institute (GCCSI) - an important global initiative that aims to
facilitate the development and deployment of at least 20 industrial-scale CCS projects by 2020. During
2009, Anglo American acquired a stake of more than 20% in Australian-based MBD Energy, which will
soon commence trials of leading-edge carbon capture and conversion technology using algal
synthesisers at three of Australia’s largest GHG emitting coal-fired power plants.
Our stakeholders:
This item responds to the opportunity to partner across disciplines within Anglo American, and with
external stakeholders including NGOs and communities, to achieve mutually-beneficial outcomes; as
well as adaptation to climate change. The former is being addressed, for example, through the proposed
community solar water heating project in South Africa. The latter is being addressed through the
climate-change impact-assessment study in conjunction with Imperial College.
Informing public policy:
This item addresses risk relating to regulatory uncertainty, as well as the risks and opportunities for
Anglo American associated with various mitigation-policy options. We engage actively with international
and national regulatory bodies in countries where regulation is more advanced (such as in the UK) as
well as in other countries like Brazil, South Africa and Australia where the policy environment is still
uncertain to varying degrees. More information on Anglo American’s response to climate change may
be found in the Group Report to Society, 2009, and the Anglo American website:
23

www.angloamerican.co.uk. A component throughout many of the items listed here is improved and
transparent internal and external climate change related reporting.
Page: Strategy - Targets
9.2
Do you have a current emissions reduction target?
Yes
9.3
Please explain why not and forecast how your Scope 1 and Scope 2 emissions will change over
the next 5 years. (If you do not have a target)
9.4
Please give details of the target(s) you are developing and when you expect to announce it/them.
(If you are in the process of developing a target)
9.5
Please explain if you intend to set a new target. (If you have had a target and the date for
completing it fell within your reporting year, please answer questions 9.5 and 9.6)
9.6
Please complete the table. (If you have a current emissions reduction target or have a recently
completed target)
Target
Type
Intensity
target
Value
of
Target
10.00
Unit
%
reduction
from base
year
Base
year
Emissions
in base year
(metric
tonnes
CO2-e)
Target
Year
2004 32692000 2014
GHGs
and GHG
sources
to which
the target
applies
Scope 1 +
2
Target
met?
Target
ongoing
Comment
This target is
being revised
due to the
divestment of
a number of
businesses
24

Page: Strategy - Emission Reduction Activities
¿
Is question 9.7 relevant for your company?
No
9.7
Please use the table below to describe your company’s actions to reduce its GHG emissions.
1.
Actio
ns -
pleas
e
descr
ibe
2.
Ann
ual
ener
gy
savi
ng
3.
Ann
ual
ener
gy
savi
ngs -
num
ber
4.
Ann
ual
ener
gy
savi
ng -
unit
s
5.
Annu
al
emiss
ion
reduc
tion
in
metri
c
tonne
s
CO2-e
6.
Reduct
ion -
achiev
ed or
anticip
ated
7.
Invest
ment -
numbe
r
8.
Invest
ment -
curren
cy
9.
Mone
tary
savin
gs -
numb
er
10.
Mone
tary
savin
gs -
curre
ncy
11.
Mone
tary
savin
gs
12.
Timesc
ale of
actions
&
associa
ted
investm
ents (if
relevan
t)
9.8
Please explain why not.
In 2004, we set a target to reduce or energy intensity by 15% by 2014 based on a 2004 baseline. This
target together with the investment required is being revised due to the divestment of a number of
businesses. There are a number of examples of monetary savings that will be required to meet our
commitment.
9.9
Please provide any other information you consider necessary to describe your emission
reduction activities.
9.10
Do you engage with policy makers on possible responses to climate change including taxation,
regulation and carbon trading?
Yes
9.11
Please describe.
Anglo American engages actively with international and national regulatory bodies in countries where
regulation is more advanced (such as in the UK) as well as in other countries like Brazil, South Africa
and Australia where the policy environment is still uncertain to varying degrees. We may engage with
25

egulators directly, or through organised business associations such as the ICMM or the Chamber of
Mines (South Africa).
Specific engagement during the period was on the CPRS in Australia, the South African policy process
and proposals from the National Treasury on fiscal reform, the introduction of the Carbon Reduction
Commitment Energy Efficiency Scheme in the UK and the national climate change policy in Brazil.
We are also involved with a number of international/sectoral advocacy bodies, including the Carbon
Sequestration Leadership Forum, the International Energy Agency Clean Coal Centre and the Global
Carbon Capture and Storage Institute.
Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading
Page: Emissions Boundary - (1 Jan 2009 - 31 Dec 2009)
10.1
Please indicate the category that describes the company, entities, or group for which Scope 1
and Scope 2 GHG emissions are reported.
Companies over which operational control is exercised
10.2
Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1
and Scope 2 emissions within this boundary which are not included in your disclosure?
No
10.3
Please complete the following table.
Source Scope Explain why the source is excluded
Page: Methodology - (1 Jan 2009 - 31 Dec 2009)
11.1a
Please give the name of the standard, protocol or methodology you have used to collect activity
data and calculate Scope 1 and Scope 2 emissions and/or describe the procedure you have used
(in the text box in 11.1b below).
Please select the published methodologies that you use.
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
11.1b
Please describe the procedure that you use.
Scope 1: This is the sum of CO2 form processes, CO2 from fossil fuels and CO2 from methane. CO2
from fossil fuels and methane is calculated by multiplying the quantity consumed to their respective
factors. CO2 from process has been calculated at site level to date. The Anglo American Energy
Managers forum has been engaged to develop a set of centralised metrics that will allow CO2
processes to be a calculated field managed by the current data managed tool used. CO2 from fossil
fuels comprises of diesel, petrol, paraffin, coal used for heat and energy generation, metallurgical
processes, direct reduction of iron, heavy and light fuel oil, LPG and Natural gas, etc. CO2 from
methane is only captured by our Thermal coal and Metallurgical coal.
Scope 2: CO2 form electricity purchased is calculated by multiplying the amount of electricity purchased,
26

in megawatt hours (MWh), to the regional factor for CO2 produced from electricity. Regional factors are
updated annually and are sourced either from the utility itself or the WBCSD/WRI GHG protocol.
11.2
Please also provide the names of and links to any calculation tools used.
Please select the calculation tools used.
Enablon: Enablon GHG-MS
Other: Hyperion Financial Management is the tool used to perform calculations, which are based on the
GHG Protocol tools.
11.3
Please give the global warming potentials you have applied and their origin.
Gas Reference GWP
Methane IPCC Second Assessment Report (SAR - 100 year) 21
Carbon dioxide IPCC Third Assessment Report (TAR - 100 year) 1
11.4
Please give the emission factors you have applied and their origin.
Fuel/Material
Emission
Factor
Unit
Reference
Gas/Diesel oil 38.31 metric tonnes CO2-e per m3 IPCC guidelines
Natural gas 0.03 metric tonnes CO2-e per m3 Sasol
Liquefied petroleum gas
(LPG)
49.80 metric tonnes CO2-e per m3 IPCC guidelines
Motor gasoline 39.61 metric tonnes CO2-e per m3 IPCC guidelines
Methane 21.00
metric tonnes CO2-e per metric
tonne
IPCC guidelines
Metallurgical coke 26.41
metric tonnes CO2-e per metric
tonne
IPCC guidelines
Petroleum coke 3.01
metric tonnes CO2-e per metric Tarmac
tonne
Supplied
Further Information
Factors are sourced from either the utilities directly and where they were not available they were
sourced from the WBCSD/WRI GHG protocol or using the IPCC guidelines. A comprehensive
revision/update on these emission factors started at the beginning of 2009.
27

Page: Emissions Scope 1 - (1 Jan 2009 - 31 Dec 2009)
12.1
Please give your total gross global Scope 1 GHG emissions in metric tonnes of CO2-e.
8850000
¿
Is question 12.2 relevant to your company?
Yes
12.2
Please break down your total gross global Scope 1 emissions in metric tonnes CO2-e by
country/region.
Country Scope 1 Metric tonnes CO2-e
South Africa 3051000
Australia 3380000
Brazil 155000
Chile 505000
United Kingdom 1189000
Rest of world 571000
12.3
Please explain why not.
12.4
Where it will facilitate a better understanding of your business, please also break down your
total gross global Scope 1 emissions by business division. (Only data for the current reporting
year requested.)
Business Division Scope 1 Metric tonnes CO2-e
Copper Managed 504000
Nickel Managed 300000
Metallurgical Coal 3381000
Thermal Coal 1423000
Kumba Iron Ore 237000
Anglo Ferrous Brazil 57000
Platinum Managed 430000
Corporate Managed 6000
Exploration Managed 329
Non-Core Business 2511000
28

12.5
Where it will facilitate a better understanding of your business, please also break down your
total gross global Scope 1 emissions by facility. (Only data for the current reporting year
requested.)
Facilities
Total gross global Scope 1 GHG emissions in metric tonnes CO2-e -
answer to question Q12.1
Scope 1 Metric tonnes
CO2-e
8850000
¿
Is question 12.6 relevant to your company?
Yes
12.6
Please break down your total gross global Scope 1 emissions by GHG type. (Only data for the
current reporting year requested.)
GHG Type Scope 1 Emissions (Metric tonnes) Scope 1 Emissions (Metric tonnes CO2-e)
CO2 5612000.00 5612000
CH4 154349.90 3241000
12.7
Please explain why not.
¿
Is question 12.8 relevant to your company?
Yes
12.8
Please give the total amount of fuel in MWh that your organization has consumed during the
reporting year.
16194444
12.9
Please explain why not.
¿
Is question 12.10 relevant to your company?
Yes
12.10
Please complete the table by breaking down the total figure by fuel type.
29

Fuels
MWh
Gas/Diesel oil 8735097.35
Natural gas 2198484.71
Liquefied petroleum gas (LPG) 322412.00
Metallurgical coke 58682.72
Motor gasoline 161102.62
Petroleum coke 86760.14
Other: Other smaller quantity fuels used 4631904.00
12.11
Please explain why not.
12.12
Please estimate the level of uncertainty of the total gross global Scope 1 figure that you have
supplied in answer to question 12.1 and specify the sources of uncertainty in your data
gathering, handling, and calculations.
Uncertainty
Range
More than 2%
but less than or
equal to 5%
Main sources
of uncertainty
Metering/
Measurement
Constraints
Please expand on the uncertainty in your data
The accuracy requirements of the EUETS are detailed in the
schemes monitoring, reporting and verification requirements. EU
ETS requires all measured values to be subject to an uncertainty
assessment following the principles of ISO Guide to the
Expression of Uncertainty in Measurement and ISO 5168:2005
Measurement of fluid flow - procedures for the evaluation of
uncertainties. The permitted uncertainty depends on the size of
the installation and the measurement method but is 2.5% or
lower. An overall materiality level of 2% is applied by verifiers
when undertaking annual verification of emissions, which for the
largest installations is 2% and 5% for the smallest installations.
There is no internationally recognised methodology for calculating
CO2 emissions from sponcom – Anglo American has developed
it’s own method, which is applied consistently throughout
operations.
Further Information
The answers provided for 12.8 and 12.10 are not formats used by Anglo American and had been
calculated for the purposes of the CDP and have not been verified. The sum of the fuels detailed in
12.10 accounts for 72% of fuels the remaining 28% are other fuels not used significantly.
30

Page: Emissions Scope 2 - (1 Jan 2009 - 31 Dec 2009)
13.1
Please give your total gross global Scope 2 GHG emissions in metric tonnes of CO2-e.
10252000
¿
Is question 13.2 relevant to your company?
Yes
13.2
Please break down your total gross global Scope 2 emissions in metric tonnes of CO2-e by
country/region.
Country Metric tonnes CO2-e
South Africa 7763000
Australia 574000
Brazil 41000
Chile 707000
United Kingdom 135000
Rest of world 1033000
13.3
Please explain why not.
13.4
Where it will facilitate a better understanding of your business, please also break down your
total gross global Scope 2 emissions by business division. (Only data for the current reporting
year requested.)
Business division name Metric tonnes CO2-e
Copper Managed 707000
Nickel Managed 180000
Metallurgical Coal 574000
Thermal Coal 878000
Kumba Iron Ore 446000
Anglo Ferrous Brazil 14000
Platinum Managed 5468000
Corporate Managed 31000
Exploration Managed 329
Non-Core Business 1954000
13.5
31

Where it will facilitate a better understanding of your business, please also break down your
total gross global Scope 2 emissions by facility. (Only data for the current reporting year
requested.)
Facility name
Anglo American plc total gross global Scope 1 GHG emissions in metric tonnes
CO2-e
Metric tonnes CO2-
e
10252000
¿
Is question 13.6 relevant to your company?
Yes
13.6
How much electricity, heat, steam, and cooling in MWh has your organization purchased for its
own consumption during the reporting year?
Please supply data for these energy types. MWh
Electricity 12971385
13.7
Please explain why not.
13.8
Please estimate the level of uncertainty of the total gross global Scope 2 figure that you have
supplied in answer to question 13.1 and specify the sources of uncertainty in your data
gathering, handling, and calculations.
Uncertainty
range
Less than or
equal to 2%
Main sources of
uncertainty in
your data
Other: Human
Error
Please expand on the uncertainty in your data.
Towards the end of 2009 Anglo American begun to emphasize
the importance of capturers understanding units of measure as
well as magnitude, once it was discovered that units of measure
were occasionally overlooked when capturing data.
32

Page: Emissions Scope 2 Contractual
14.1
Do you consider that the grid average factors used to report Scope 2 emissions in question 13
reflect the contractual arrangements you have with electricity suppliers?
Yes
14.2
You may report a total contractual Scope 2 figure in response to this question. Please provide
your total global contractual Scope 2 GHG emissions figure in metric tonnes CO2-e.
14.3
Explain the origin of the alternative figure including information about the emission factors used
and the tariffs.
14.4
Has your organization retired any certificates, e.g. Renewable Energy Certificates, associated
with zero or low carbon electricity within the reporting year or has this been done on your
behalf?
No
14.5
Please provide details including the number and type of certificates.
Type of certificate Number of certificates
Comments
33

Page: Emissions Scope 3
¿
Is question 15.1 relevant to your company?
Yes
15.1
Please provide data on sources of Scope 3 emissions that are relevant to your organization.
Sources of
Scope 3
emissions
Business
travel
Metric
tonnes
of CO2-
e
15062
Methodology
The figure presented is for business air travel
originating out of South Africa provided by our
supplier. This data has not been verified but is being
used as a basis to develop a full set of matrices to
be used by the entire group. Air kilometres (KM’s)
are captured in miles by the travel consultant at point
of booking pertaining to relevant routing. These Mile
figures are then validated by the travel agent’s
internal business analyst, via random spot checks to
ensure there are not anomalies, and then converted
into KM’s (using standard 1.609344 conversion).
The method to validate the miles captured by the
travel consultant is by use of a calculation tool that
works off great-circle distance (the shortest distance
between any two points on the surface of a sphere)
Once the total travelling distance has been
determined, the appropriate emissions factor
(reference: Green House Gas Protocol) basis on
seating classification is multiplied to the distance
travelled to give CO2 emissions.
If you cannot
provide a figure for
a relevant source of
Scope 3 emissions,
please describe the
emissions.
15.2
Please explain why not.
34

Page: Emissions 7
16.1
Does the use of your goods and/or services enable GHG emissions to be avoided by a third
party?
Yes
16.2
Please provide details including the anticipated timescale over which the emissions are avoided,
in which sector of the economy they might help to avoid emissions and their potential to avoid
emissions.
PGMs are used in many applications to reduce GHG emissions. These include catalysts for refining
processes, which improve energy efficiency; auto-catalysts that reduce harmful emissions from vehicles;
and fuel cells that produce energy with fewer CO2 emissions. They also, by enabling fuel-efficient diesel
engines to meet air quality standards, help to reduce CO2. The use of PGMs makes industrial
processes more energy efficient by catalysing processes at lower temperature and pressure than other
materials and often providing greater yield.
To curb noxious emissions, every car produced in Europe today is equipped with an exhaust gas
catalyst and every catalyst contains PGMs. In 2009, 207.5 tons of platinum, palladium, and rhodium
were used for the European production of car exhaust gas catalysts.
Each type of car has a different engine and thus a different catalyst with a different PGM quantity. An
auto-catalyst for a passenger car contains on average 4-5 grams of PGMs. Diesel cars require more
platinum than petrol cars, while petrol catalysts contain significantly more palladium and rhodium, which
is mined by the same mining companies.
The three major suppliers of catalytic converters for cars are Johnson Matthey (31%), BASF Catalysts
(31%) and Umicore (25%), together accounting for 87% of the global market. All three major catalyst
companies are customers of Anglo Platinum and Johnson Matthey is its sole marketing agent. In 2009,
Anglo Platinum supplied 31.28 tonnes PGMs for auto-catalysts (15% of the global demand in this field).
If it is assumed that 5 grams of PGMs are used in one auto-catalyst, then, on average 6 256 000 cars
get produced annually with catalytic converters made from Anglo Platinum PGMs (31 280 000 grams
PGMs from Anglo Platinum/ 5 grams PGMs per car).
According to the International Platinum Group Metals Association, the average family car would emit 15
tons of toxic and harmful polluting gases (carbon monoxide, hydrocarbons and nitrogen oxides) over a
10 year life if catalytic converters were not fitted to all new cars to remove 98% of pollution. Thus based
on the above figures, 91 963 200 tonnes of emissions are prevented from being emitted into the
atmosphere and instead only 1 876 800 tonnes of emissions occur, as a result of PGMs being used in
catalytic converters originally produced by Anglo Platinum in 2009.
The rate of recycling of PGMs in industrial applications is very high - over 90% in closed loops such as
in chemical processes, glass manufacturing and petroleum refining. The rate of recycle is lower for open
loop industrial applications like silicones or hard disks. Auto catalyst recovery rates are also lower than
in closed loops but are continually improving. Data is being developed by the UNEP Global Metal Flows
Working Group, led by Tom Graedel from Yale. Its interim report in December 2009 indicates Pt, Pd and
Rh are in the group of 12 elements of the periodic table with the highest (>50%) rate of EOL recycling.
All of the major products produced by Anglo Platinum have relatively high recycle rates at end-of-life
which will also lead to emission being avoided in the production processes:
• PGMs – 58%
• Nickel – 80%
• Copper – 63%
The U.S. Environmental Protection Agency Office of Solid Waste estimated that recycling copper wire
will lead to a net emission reduction of 5.1 tonne CO2/tonne copper wire recycled. Therefore, assuming
35

all the Anglo Platinum copper is converted to copper wire, recycling of this copper wire will lead to 12
412 tonnes of emission reduction. Due to a lack of information, similar figures for nickel and PGMs could
not be calculated.
¿
Is question 17.1 relevant to your company?
Yes
17.1
Please provide your total carbon dioxide emissions in metric tonnes CO2 from the combustion
of biologically sequestered carbon i.e. carbon dioxide emissions from burning biomass/biofuels.
0
17.2
Please explain why not.
Further Information
Anglo Base Metals’ Codemin operation in Brazil grows eucalyptus trees in order to produce woodchips,
which act as a reductant in the nickel-smelting operation. We do not, however, calculate the CO2
emissions from wood chips – the emission factor for woodchips is zero because we cultivate the
plantations from which the timber is sourced.
36

Page: Emissions 8
18.1a
Please describe a financial intensity measurement for the reporting year for your gross
combined Scope 1 and Scope 2 emissions.
If you do not consider a financial intensity measurement to be relevant to your company, select
"Not relevant" in column 5 and explain why in column 6.
Figure for
Scope 1 and
Scope 2
emissions
GHG
units
Multiple
of
currency
unit
Currency
unit
Financial
intensity
metrics
Please explain if not relevant.
Alternatively provide
any contextual details that you
consider relevant to
understand the units or figures you
have provided.
We produce a wide range of products
and are aiming to produce intensity
metrics on a per tonne basis for each
product, but cannot meaningfully
aggregate these product intensities to
give a Group intensity metric. We
have internal emissions targets for
each business unit which applies to
both scope 1 and scope 2 emissions.
Fluctuations in commodity prices also
render any performance analysis on
this basis meaningless.
19100000.00
Metric
tonnes
CO2-e
Million
USD($)
Not
Relevant
18.1b
Please describe an activity-related intensity measurement for the reporting year for your gross
combined Scope 1 and Scope 2 emissions.
Oil and gas sector companies are also asked to report activity-related intensity metrics in
answer to table O&G1.3.
If you do not consider an activity-related intensity measurement to be relevant to your company,
select "Not relevant" in column 3 and explain why in column 4.
Figure for Scope 1
and Scope 2
emissions
GHG units
Activityrelated
metrics
Please explain if not relevant. Alternatively
provide
any contextual details that you consider
relevant to
understand the units or figures you have
provided.
This is not a metric currently used by Anglo
American. For the purposes of reporting to the
CDP, the value given was calculated and has not
49.00
Kilograms
CO2-e
per hour
worked
37

Figure for Scope 1
and Scope 2
emissions
GHG units
Activityrelated
metrics
Please explain if not relevant. Alternatively
provide
any contextual details that you consider
relevant to
understand the units or figures you have
provided.
been verified.
19.1
Do the absolute emissions (Scope 1 and Scope 2 combined) for the reporting year
vary significantly compared to the previous year?
No
19.2
Please explain why they have varied and why the variation is significant.
20.1A
Please complete the following table indicating the percentage of reported emissions that have
been verified/assured and attach the relevant statement.
Scope 1 (Q12.1)
More than 80% but less than or equal to
100%
Scope 2 (Q13.1)
More than 80% but less than or equal to
100%
Scope 3
(Q15.1)
Not verified
20.1B
I have attached a external verification statement that covers the following scopes:
Scope 1
Scope 2
Further Information
Attachments
https://www.cdproject.net/Sites/2010/72/772/Investor CDP 2010/Shared
Documents/Attachments/InvestorCDP2010/Emissions-Other2/Ass statement.pdf
38

Page: Emissions 9 Trading
21.1
Do you participate in any emission trading schemes?
Yes
21.2
Please complete the following table for each of the emission trading schemes in which you
participate.
Scheme
name
Period for
which data
is supplied.
Allowances
allocated
Allowances
purchased
Verified
emissions -
number
Verified
emissions -
units
Details of
ownership
European
Union ETS
Thu 01 Jan
2009 - Thu
31 Dec 2009
1424549 0 916439
Metric
tonnes CO2
Facilities we
own and
operate
21.3
What is your strategy for complying with the schemes in which you participate or anticipate
participating?
To meet its obligations under the Kyoto Protocol, the UK has been driving a decrease in GHG emissions
through a series of regulations and initiatives, including the European Union Emissions Trading Scheme
(EU ETS). This applies only to Tarmac’s cement and lime businesses, which have fully complied with all
obligations under this scheme.
21.4
Has your company originated any project-based carbon credits or purchased any within the
reporting period?
No
21.5
Please complete the following table.
Credit
origination
or credit
purchase?
Project
identification
URL link to
project
documentation
Verified to
which
standard?
Number
of credits
(metric
tonnes of
CO2-e)
Credits
retired?
Purpose
e.g.
compliance
39

Module: Climate Change Communications
Page: Communications 1
22.1
Have you published information about your company’s response to climate change/GHG
emissions in other places than in your CDP response?
Yes
22.2
In your Annual Reports or other mainstream filing? (If so, please attach your latest
publication(s).)
Yes
22.3
Through voluntary communications such as CSR reports? (If so, please attach your latest
publication(s).)
Yes
Further Information
Attachments
https://www.cdproject.net/Sites/2010/72/772/Investor CDP 2010/Shared
Documents/Attachments/InvestorCDP2010/Communications/AAplc Report to Society 2009.pdf
https://www.cdproject.net/Sites/2010/72/772/Investor CDP 2010/Shared
Documents/Attachments/InvestorCDP2010/Communications/AAplc Annual report 2009.pdf
Module: Mayday
Page: Mayday
Do you want to report back to the Mayday Network?
If you answer yes, we will make your CDP submission and contact details available to the
Mayday Network team at Business in the Community.
Yes
Step 4
Do you encourage employees to reduce their carbon emissions at home and at work?
Yes
40

If yes, please tell us how?
Anglo American encourages employees to reduce carbon emissions mainly through internal
communications with energy-saving tips. We also did a light bulb exchange programme where
employees in South Africa could exchange old incandescent bulbs with CFLs; and Chile has a
programme where they offer employees loans with preferential rates for hybrid vehicles.
Step 5
Do you work in partnership with suppliers to reduce carbon emissions in the supply chain?
Yes
If yes, please tell us how?
While this work area is in early stages, we do encourage responsible carbon management among
suppliers via the Anglo American Supplier Sustainable Development Code, which suppliers are
expected to comply with.
Step 6
Do you encourage your customers to take action on climate change?
No
If yes, please tell us how?
Further Information
Step 6 is not applicable as Anglo American is a mining company - our products are commodities.
41