Anglo American Annual Report 2012

Social investment output indicatorsTotal number of community development projects1,602delivering benefits to communities in 2012Total number of businesses supported 17,598Jobs created/maintained through enterprise64,927development initiativesBeneficiaries of education projects 256,980Beneficiaries of sports, arts, culture and heritage projects 645,211Beneficiaries of community development projects 1,065,821Beneficiaries of disaster and emergency relief projects 43,684Beneficiaries with improved livelihood 448,395BUILDINGSTRONG TOWNSIN MININGREGIONSOperating and financial reviewOur commitment to respecting humanrights forms the foundation of ourapproach to community engagementand development. Human rights bestpractice requirements are integratedinto the Social Way and all otherrelevant policies, systems and toolsthroughout the business.In 2012, we rolled out a Groupwidecommunity development peerreview process, which draws oninternal expertise, as well as externalpartners such as CARE Internationalto ensure that our investments incommunity development are aseffective as possible.Our industry leading Socio-EconomicAssessment Toolbox (SEAT) is theprimary means by which we enhancethe development outcomes andcapacities of host communities. Weuse SEAT to improve operations’understanding of their socioeconomicimpacts (both positive and negative),enhance stakeholder dialogue andthe management of social issues,build our ability to support localsocioeconomic development, andfoster greater transparency andaccountability. The third versionof SEAT was published during theyear and has been made availablepublicly, as a leading practice resourcefor other companies to use.Promoting sustainabilityin our supply chain andlocal procurementWe expect and encourage oursuppliers to act in a safe, sustainableand responsible manner. Thisexpectation is given effect throughour policy on sustainable developmentin the Anglo American supply chainand our Supplier SustainableDevelopment Code.We are also committed to promotinglocal procurement throughout ourmining life cycle. In doing so, webelieve we can make a significantsocioeconomic contribution to ourhost communities as well as improveefficiencies in our supply chain bylowering logistics costs, and securingaccess to critical goods and services.A lack of municipal capacity inour host communities can havea negative effect on residentsand on Anglo American’s abilityto plan. Our new partnershipapproach to capacity buildingin South Africa and Brazil aimsto offer an effective andsustainable solution.In South Africa, we have teamedup with the Development Bank ofSouth Africa to improve capacityin host mining areas and create thecountry’s first example of apublic-private partnership in thisfield, with the aim of enablingmunicipalities to supply basicservices like water and electricityeffectively, rather than AngloAmerican supplying them directly.At our Barro Alto nickel operationin Brazil, Anglo American has beencollaborating with Agenda Públicasince 2008, in an effort to prepareboth the local government andcitizens to live in a society thatwould grow as mining revenuesstarted to flow into the town.In both Brazil and South Africa, theprojects follow two broad strands:empowerment of communities toenable them to understand theirrights and hold the government toaccount; and training and skillsdevelopment for public officialsto enable them to fulfil their rolesand respond to public demand.Although Anglo Americanprovides funding in both cases,our knowledge of the local area,our input into project planningand evaluation, and our localrelationships have all provedimportant elements of the work.ImageLiomar Vidal, an Anglo American communityrelations officer, at the Professora MariaSiqueira Pinto school, which Anglo Americanhelped to build in Barro Alto.Anglo American plc Annual Report 2012 25