The responsible operation of our business
Advance and enhance the sustainability of our business, today and for future generations
Sustainability has long been a strategic driver for Fresnillo plc, with established programmes in place prior to our IPO. Nevertheless, the listing in the UK brought new opportunities to enhance our sustainability strategy, implementation and controls. The Group’s business model directly incorporates sustainable business practices in the value-creation pyramid, as our license to operate requires a committed, continuous and integrated focus on our people, communities and environment. We believe that mining can and should be compatible with expectations of both economic value creation and social and environmental performance.
We also believe that responsible mining enhances our competitive advantages: engaging communities from the earliest stages of exploration and development reduces project risk and supports asset values; community support and environmental stewardship can minimise disruptions and ensure operating continuity; and a solid ESG risk profile influences the cost of capital, which is essential to balance sheet flexibility
We benefit from Board-level oversight, executives and managers dedicated to sustainability efforts, and a comprehensive approach that informs our value-creation metrics. We rely on our own executives and staff for oversight, training and implementation of HSECR policies and programmes and work closely with employees, contractors, unions, communities, governmental agencies, industry organisations, NGOs and other third parties to ensure that our performance adheres to the standards, needs and aspirations of our stakeholders. Our sustainability strategy is managed through our HSECR Management System, the maturity is assessed semi-annually by PricewaterhouseCoopers (PwC) on the basis of its strategy, structure, processes, people and technology.
Mining and processing precious metals are essential activities in our global economy, and carry social acceptability and environmental challenges that must be effectively addressed. Finding solutions to these challenges requires exceptional commitment, operational excellence and innovation. Risks include security; potential actions by government; public perception against mining; safety; environmental incidents and human resources.
Our sustainability efforts address the issues that we consider matter to our stakeholders and have a direct and indirect impact on our business. We identify relevant issues engaging our local stakeholders and keeping track of global issues relevant to our industry and society at large. Recognising the importance of local stakeholders at the mine sites, we conducted a comprehensive perception study in the communities where we operate. The outcome is a “Relevance matrix” of the issues that matter to our stakeholders in the communities. We intend to further refine our approach, adopting best practices in materiality assessment.
Five Key Pillars of our Sustainability Strategy:
Health » Improve and maintain the health and wellbeing of our people
Safety » Eliminate unsafe workplace conditions and behaviours
Environment » Minimise the environmental impact and footprint of our activities
Community Relations » Engage with and support the development of our communities
Our people » Secure the talent pipeline and ensure a fair and respectful workplace
The Board of Directors, through its Health, Safety, Environment and Community Relations (HSECR) Committee, evaluates the effectiveness of the Company’s policies, action plans and systems regarding HSECR matters.
The Committee meets semi-annually to review performance and monitor management’s responses to key issues. The remuneration policy for our senior executives takes sustainability performance into partial consideration, specifically in the areas of stakeholder relations, teamwork and safety. Our sustainability strategy is managed through our HSECR Management System, it's maturity is assessed semi-annually by PricewaterhouseCoopers (PwC) on the basis of its strategy, structure, processes, people and technology.
HSECR Integrated Mangement System
Our Integrated Management System is based on ISO 14001 and OHSAS 18001. It is the primary tool to drive continuous improvement and embed safety in our operations, incorporating key safety activities and controls such as risk management, root cause analysis of accidents, training, operating procedures, performance analysis, etc. It also includes software to support our assurance reviews and track the progress of action plans resulting from deficiencies detected. The system also ensures effective compliance with environmental regulations and supports initiatives to reduce our environmental footprint, implement the Cyanide Code, Mexican Clean Industry certification and other best practices. Furthermore, the system includes operating procedures to safely manage and monitor tailings storage facilities and waste rock piles following best practices, and helping our sites comply with applicable regulations in Mexico, as well as policies to reduce and reuse non-mineral and hazardous waste.
UN Sustainable Development Goals
The United Nations General Assembly adopted the 2030 Development Agenda, with an ensuing 17 Sustainable Development Goals (SDGs) and 169 targets that align the interests of governments, businesses, NGOs and society. At Fresnillo, we are committed to doing our part and ensuring that our sustainability strategy aligns with and advances the goals agreed upon by the international community. Specifically, we have initiatives that align with the following SDG goals: health and wellbeing; clean water and sanitation; decent work and economic growth; industry, innovation and infrastructure; reduced inequalities; responsible consumption and production; climate action; and life on land.