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Reporting

Anglo provided the following report in 2002 under the four pillars of sustainable development.

BUSINESS PRACTICE AND PERFORMANCE

• Financial Highlights:
  • Group and share of turnover of joint ventures and associates increased by 6.3% to $20,497 million
  • Headline earnings increased by 4.6% to $1,759 million
  • Capital expenditure by subsidiaries amounted to $2,139 million
  • $855 million was provided for in company taxes
• Contribution To Wealth Creation:
  • It provides a view of its contribution to wealth creation in the major regions of the world.
• Certification and audits:
  • Between 38% (Coal South Africa) and 100% (Platinum) of our divisions by turnover have undergone third party audits of their safety management systems against NOSA, OHSAS 18001 or the BSI CAP standards.
  • Third party audits for occupational health management systems have been undertaken in all our divisions. The coverage, by turnover, ranges from 35% (Mondi Europe) to 100% (Coal Australia).

WORKPLACE

• Safety:
  • Our safety focus is delivering encouraging results, with the lost time injury frequency rate (LTIFR) dropping 42% to 0.87 for 2002, from 1.50 in 2001.
  • The fatal injury frequency rate (FIFR) declined by 39% to 0.020.
  • We report with regret that 25 out of a total of 127,000 employees, and 22 of our contractors, died in incidents at our managed operations.
  • Falls of ground, at 26%, remain the main cause of fatal injuries, with moving machinery and transport-related incidents significant contributors at 17% and 15% respectively. There was one security-related murder.
  • The main hazards relating to injuries have been identified as materials handling, falling, falls of ground and moving machinery. These areas of high risk have been addressed through the development of Safety Golden Rules.
• Health:
  • In August 2002, we took an important leadership position and announced that we will provide anti-retroviral therapy to HIV-positive employees who have progressed to AIDS. We continue our substantial education and prevention programs to ensure that the large majority of our employees who are HIV-negative remain so. Our focus in prevention is to have everyone know their own HIV status. Voluntary counseling and testing (VCT) for HIV is linked to wellness programs for those infected with the virus. The number of people coming forward for VCT will be a key indicator of the success of our HIV/AIDS interventions. The early feedback from the program is gratifying.
  • Occupational Health Management guidelines were developed to assist all managed operations, and implementation is now under way.
  • Our main occupational health challenges continue to be exposure to noise and dust.

ENVIRONMENT

Our environmental performance data have improved in quality. We have had significant portfolio activity over the reporting period and this poses a number of challenges to data comparability.

In line with international trends, we are increasingly using a variety of normalized indicators where they assist in comparisons of year-on-year performance. Business units are normalizing data according to criteria that are of management significance to them, and we report on specific business unit performance in the body of the text. Where aggregation of this bottom-up approach adds value, the totals of our managed operations are included.

• Water consumption:
  • Primary activities at all managed operations used 395 million m3 of water.
  • Water used for primary activities at mining and smelting operations decreased by 16% to 127 million m3 for a total of 87 million tonnes of coal mined, 189 million tonnes of ore and waste rock mined and 66 million tonnes of ore milled/processed.
  • Forest Products operations used 222 million m3 of water, an increase of 29%, mainly as a result of acquisitions in Europe.
  • Industrial Minerals used 42 million m3 of water, down 48% from last year, as a result of an improved understanding of the definition of primary water use, as well as more rigorous measurement and reporting.
• Energy, CO2 emissions and sequestration:
  • Total energy used amounted to 200 million Gigajoules (GJ), up from 2001 mainly as a result of new acquisitions in Europe.
  • Net CO2 emissions after forestry sequestration amounted to 13 million tonnes from processes and fossil fuels consumed. Of this, our mining and smelting operations contributed 7.2 million tonnes. The net CO2 emissions from processes and fossil fuels
    increased from 2001 by 12%. Approximately 6% was due to portfolio changes, with the remaining increase as a result of operational changes.
  • Our South African forestry operations are essentially carbon-neutral. With an estimated carbon stock of 15 million tonnes, our forestry operations sequestered approximately 790,000 tonnes of carbon dioxide in 2002, compared with 770,000 tonnes of CO2 sequestered in 2001.
  • The electricity that we purchased contributed a further 13.2 million tonnes of CO2 emissions, up 10% from 2001. This increase resulted from a refinement of the CO2/MWh factor reported by the South African electricity generator.
  • We emitted the equivalent of 3.1 million tonnes of CO2 (2001: 3 million tonnes) in the form of methane gas from our coal mining operations. The methane emissions equate to 36 kg of CO2 per tonne of coal mined, compared with 34 kg of CO2 per tonne of
    coal mined in 2001.
• Land use:
  • Total land used by mining, quarrying and smelting operations was 63,619 hectares (2001: 53,770 hectares). The change was largely due to data improvements.
  • Total land managed by Forest Products division was 538,980 hectares (2001: 531,570 hectares).
  • Total land afforested was 319,873 hectares (2001: 310,713 hectares), all with Forest Stewardship Council certification.
• Legal compliance and environmental incidents:
  • 281 incidents involving the regulatory authorities were reported.
  • Fines paid in 2002 were $64,705 for safety and $7,000 for health. Environmental fines totaled $90,466, which included payments for negotiated permit exceedances resulting from higher production. In 2001, there were 336 incidents, and $120,135 and $66,662 was paid for safety-related and environmental fines, respectively.
• Community Health:
  • Our priority community health risk remains the HIV/AIDS pandemic in sub-Saharan Africa. In conjunction with our commitment to provide free anti-retroviral therapy to our employees where it is indicated, we are working to extend our HIV/AIDS programs beyond the workplace, to build community and public-sector capacity to assist in tackling the pandemic. Our strategy for community-based initiatives relies on establishing partnerships with the public sector and with trade unions, NGOs and international
    donor agencies.
• Corporate governance and social initiatives:
  • Our Chief Executive signed the World Economic Forum joint statement in January 2002. This recommends a framework within which leading companies will address the corporate social responsibility and accountability agendas.
  • Anglo American played a leadership role in the GMI, demonstrating commitment to stakeholder dialogue and the promotion of sustainable development.
  • In April 2002, the roll-out of our 'Good Citizenship' principles, in over 20 languages, commenced across our managed operations.
  • In May 2002, Anglo American became only the third FTSE 100 company to hold a dedicated presentation on social and environmental issues for investment analysts.
  • In August 2002, we published 'Good Neighbours', which reported on our interactions with local communities.
  • Good progress was made in rolling out three-year Community Engagement Plans.
  • We became a global sponsor of the International Business Leaders Forum's ENGAGE campaign, which promotes employee volunteering and capacity building in local communities.
  • We played an active role in the debate about the contribution to development and poverty reduction of the extractive sector. We contributed to the World Bank's independent Extractive Industries Review and supported the UK government's Extractive
    Industries Transparency Initiative.
  • With other corporate partners, we supported the South African government in hosting the WSSD in Johannesburg in August and September 2002 and their objective of ensuring that poverty alleviation and the development agenda remained a key focal point
    of the Implementation Plan.
  • A special edition of 'Optima', the Anglo American journal, was published to contribute to the debate about sustainable development at the WSSD. Leading international authors contributed perspectives on various aspects of sustainable development.
  • To date, Anglo American has been associated with more than $1.34 billion in black economic empowerment deals. Of this, some $1 billion was for partnerships with new empowerment companies to develop or mine big deposits that are beyond the reach of small and medium-scale entrepreneurs.
  • Our South African business development unit, Zimele, has 21 investments in companies ranging from oil regeneration, mine safety equipment, engineering, health, waste management and Information Technology, which collectively employ over 1,000 people and generated a turnover of $16,5 million in 2002, a 19% improvement on the previous year. The cumulative procurement turnover figure for the Group's SME spend in 2002 was $229 million.
  • In 2002, Anglo American and our subsidiaries voluntarily committed 0.9% of pre-tax profit to voluntary community investment and charitable causes.

introduction | codes of conduct | social audits | socially responsible investment | health & safety | managing environmental impacts | community involvement | environmental auditing | voluntary agreements | reporting