Anglo American Annual Report 2012

OPERATING AND FINANCIAL REVIEW STRATEGY IN ACTIONSTRATEGIC ELEMENT: Operating safely, sustainably and responsiblySUSTAINABLE DEVELOPMENTIN EVERYTHING WE DOMAKING ADIFFERENCEOur aim is always to operatesafely, sustainably and responsibly.Making a tangible difference isfundamental to our licence tooperate and an important sourceof competitive advantage. Westrive to realise exceptionaloperational value by embeddingsustainable development ineverything we do – from oursystems, risk processes andprocedures, to the way in whichwe consult and work with ourstakeholders. Mining can be ahigh-risk business – but we donot accept that anyone shouldbe injured while working for us.Safety, therefore, remains ournumber one priority. As acompany that exploits a finiteresource, we aspire to operatingour mines in a way that isenvironmentally responsible,benefits host communities andleaves a positive social legacy.Our strong governance structuresrelating to sustainable developmentsupport this aspiration, providingclear lines of responsibility from theoperational level through to the Board.A dedicated global Safety andSustainable Development Risk andAssurance team provides expertopinion, in conjunction with ourinternal Anglo American BusinessAssurance Services, on the adequacyof risk-control measures to ensurethat current and emerging risks areeffectively controlled. This secondpartyperspective, together withsubject matter expertise (internal andexternal), enables us to identify criticalsafety, health, social and environmentalimprovement opportunities.Sustainable Development is fullyintegrated within the projectmanagement and asset optimisationprocesses, ensuring that broadersustainability and licence-tooperateissues are duly taken intoaccount in operational and decisionmaking processes.In this section we provide anoverview of our managementapproach and performance relatingto social and community activities,safety and health, and environmentalperformance. Our websitewww.angloamerican.com providesadditional information on oursustainability performance, includinga stand-alone sustainability reportas well as separate reports fromcertain of our individual companiesand operations.As a companythat exploits afinite resource,we aspire tooperating ourmines in away that isenvironmentallyresponsible,benefits hostcommunitiesand leaves apositive sociallegacy.SOCIAL AND COMMUNITYMost of our operations are located inemerging economies, many of whichhave low levels of socioeconomicdevelopment. To ensure a lastingpositive social and environmentallegacy, we supplement the valuegenerated through our core activities– paying taxes, salaries, and paymentsto suppliers – with initiatives designedto develop host communities over thelong term, many of which areundertaken in partnership with NGOs,communities, and local governments.If we fail to account for our actionsand do not engage appropriately withour communities, we risk underminingour reputation and jeopardisingour licence to develop and operateprojects. The relative importance oflabour relations and local economicdevelopment activities has grown, aswitnessed by the industrial action inSouth Africa’s mining industry in thesecond half of 2012.Our strategy and managementapproachAnglo American’s social strategyfocuses on observance of humanrights, proactive engagement withour stakeholders and leveraging ourcore business to support long termsocial development. Communitydevelopment activities prioritiselocal procurement and supplierdevelopment, building local capacity,including providing infrastructure forhealth care, housing and sanitation,and investing in enterprise andskills development.The Anglo American Social Waycontains a mandatory set of standardsthat prescribe rigorous minimumrequirements for social performanceacross the Group.The requirements of the Social Wayare integrated into the stage-gatereviews of our new capital projectsand our due diligence procedures formergers and acquisitions.24 Anglo American plc Annual Report 2012