Governors Meeting for Mining & Metals - RESOLVE · –Rio Tinto plc –Xstrata Plc •Evaluating:...

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World Economic Forum Annual Meeting 2009

Governors Meeting for Mining & Metals

Davos, Switzerland 29 January

Compilation of VOLUNTARY PRINCIPLES

by:Sven Behrendt, advisor to the World Economic Forum, Geneva (Switzerland)André Brodeur, principal, McKinsey & Company, Montreal (Canada)Tarrah Kehm, consultant, McKinsey & Company, Brussels (Belgium)Jan Klawitter, global leadership fellow, head of mining & metals industry, World Economic Forum, Geneva (Switzerland)Ugo Mosanya, consultant, McKinsey & Company, Brussels (Belgium)Heinz Pley, principal, McKinsey & Company, Johannesburg (South Africa)Ruben Verhoeven, director, leader of McKinsey’s Basic Materials practice, Mc Kinsey & Company, Antwerp (Belgium)Alex Wong, senior director, head, center for global industries, World Economic Forum, Geneva (Switzerland)

Thursday 29 January14.30-16.30 The Global Nature of Mining & Metals

Confidential. Do not quote. Do not circulate.

1

Planning and implementation Information sharing Monitor Report Assurance

Provideresources

Providetools

Provideexpertise

Net-work-ing

Confer-ences

Training/capacity

Providereportingstandards

Externalmonitoring

Mandatoryreporting

Syndica-tion/dissemi-nationinfo. Certify Rank

Industryparty Financial

Supplychain Licensing

Consequence management

AA 1000

BSR

CASM

CMC

CRJP

DJSI

DDI

ECOWAS / Oxfam

EP

EITI

FTSE 4 Good

GRI

GBC

ICMM

IRMA

IFMMMSD

IFC

GMI

FUNCTIONAL SCOPE OF INITIATIVES (1 OF 2)

Source: Literature search; Team analysis

2

Provideresources

Providetools

Provideexpertise

Net-work-ing

Confer-ences

Training/capacity

Providereportingstandards

Externalmonitoring

Mandatoryreporting

Syndica-tion/dissemi-nationinfo. Certify Rank

Industryparty Financial

Supplychain Licensing

Planning and implementation Information sharing Monitor Report Assurance Consequence management

FUNCTIONAL SCOPE OF INITIATIVES (2 OF 2)

PACI

SA 8000

TSM

TI

UNGC

VP on S&HR

Whitehorse initiative

WMMF

WBCSD


ISO 14001

PDAC

OECD

IFC Against AIDS

MDG

OHSAS 18001

KP

WorldSteel

3

Coverage of SD topicGeographicdistribution Industry divisions

Humanrights

Socialstandards

Environ-ment

Healthandsafety

Gover-nance

RegionspecificGlobal

All com-modities

Multiindustry

Alongsupplychain

CASM

CMC

DJSI

ECOWAS / Oxfam

DDI

CRJP

EP

EITI

GRI

ICMM

IRMA

IFMMMSD

AA 1000

FTSE 4 Good

IFC

BSR

GBC

GMI

DIMENSIONAL SCOPE OF INITIATIVES (1 OF 2)


Gold DiamondsSteel /Iron

4

Coverage of SD topicGeographicdistribution Industry divisions

Humanrights

Socialstandards

Environ-ment

Healthandsafety

Gover-nance

RegionspecificGlobal

All com-modities

Multiindustry

Alongsupplychain

DIMENSIONAL SCOPE OF INITIATIVES (2 OF 2)

Gold Diamonds


KP

MDG

PDAC

UNGC

VP on S&HR

Whitehorse initiative

WMMF

ISO 14001

OECD

OHSAS 18001

SA 8000

TSM

WBCSD

TI

IFC Against AIDS

PACI

WorldSteel

Steel /Iron

5

Governance

Voluntary system

Reporting

Industry representative

Other _______________

Independent assurance

Organising framework

Linkage with other initiatives

Background

Members Specific activities

Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Activity focus

ACCOUNTABILITY 1000 (AA1000)

• AA 1000 is an assurance standard that specifies theprocess for an organisation to account for its performance

• It links the organisations values and principles toperformance targets, assessment, and communication oforganisational performance

• It was originally facilitated by the Institute of Social andEthical Accountability in 1999

• Organisations:– ALCOA– Newmont– Coca-Cola– General motors– SAP– DaimlerChrysler

• Civil society: Australian institute for social and ethicalresponsibility

• Academia: University of South Africa (UNISA)

• Planning: Commits to the process of defining social andethical targets

• Accounting: Defines the scope of the assurance process,collates and analyses information to develop and improveimplementation plan

• Audit and reporting: Creates reporting systems andperformance monitoring targets

• Embedding: Assists in developing structures and systemsto integrate the process into the organisations activities

• Stakeholder engagement: Engages with stakeholdersthroughout process

Source: AA1000 website (www.accountability21.net); Team analysis

6

Governance

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Activity focus

BUSINESS FOR SOCIAL RESPONSIBILITY (BSR)

• BSR was formed in 1992• Works with a global network of more than 250 member

companies to develop sustainable business strategies andsolutions through consulting, research, and cross-sectorcollaboration

• The BSR has more than 250 Members, including:– Anglo American– Barrick Gold– Newmont Mining Corporation– Rio Tinto– Yamana Gold

• Expertise: Provides consulting services across a widevariety of functions and industries

• Conferencing: Provides networking opportunities to meet1300 business leaders across the globe for the purpose ofknowledge sharing

• Research: Conducts research into the field of SustainableDevelopment with the view of obtaining perspective ofemerging trends, enacting solutions and developingstrategies

Source: Business for Social Responsibility website (http://www.bsr.org); Team analysis

7

Governance

Voluntary system

Reporting


Other: PracticalExperience




Background


Activity types

Environment

Human rights

Social standards

Other: Economicdevelopment

Health and safety

Activity focus

COMMUNITIES AND SMALL-SCALE MINING (CASM)

• CASM is a global networking and co-ordination facility witha stated mission to reduce poverty by improving theenvironmental, social, and economic performance ofartisanal and small-scale mining, in developing countries

• CASM is currently chaired by the UK's Department forInternational Development

• Core sponsors are the UK department for international development and the World Bank Group• The Strategic Management Advisory Group (SMAG)

includes members from the World Bank as well as the ILO, UN, government, academia, and private sector

• Creating dialogue: Works with companies, governments,civil society, and miners to engage in internationaldevelopment policy dialogues

• Support: Provides support and mobilises practicalexpertise from its global network of members, in initiativesthat range from capacity building to community levelprojects

Source: CASM website (http://www.artisanalmining.org); Team analysis

8

Voluntary system

Reporting


Other: Certification




Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

COUNCIL FOR RESPONSIBLE JEWELLERY PRACTICES(CRJP)

• The Council for Responsible Jewellery Practices wascreated to drive Sustainable Development across eachstep of the diamond and gold jewellery supply chain, frommining practices all the way through to the retail outlets

• The primary aim of the council is to promote responsibleethical, social, human rights, and environmental businesspractices

• Trade associations: The American Gem Society, Britishjewellers association

• Mining houses: AngloGold Ashanti, BHP BillitonDiamonds, De Beers Group

• Diamond cutting, polishing, and trading organisations:AMC Diamonds, Rothschild diamonds, Steinmetz

• Jewellery manufacturing and wholesalers: InterjewelUSA, Gabriel and Co, Cristofol Paris

• Retailers: Tiffany and Co., JC Penny, Hamilton Jewellers,Montblanc

• Gold refining, hedging, and trading: Metalor technology,Valcambi

• Service industries: International diamond and jewellerygroup ABN-AMRO

• Assurance: Aims to provide an independent assurance forall sustainability issues within the gold and diamondjewellery supply chain by providing– practical methods of implementing sustainability

measures– reporting– independent third party certification

Source: Council for Responsible Jewellery website (http://www.responsiblejewellery.com); Team analysis

9

Governance

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards


Health and safety

Activity focus

DIAMOND DEVELOPMENT INITIATIVE (DDI)

• Diamond Development Initiative aims to promote long-termSustainable Development for communities and miners incountries, where alluvial diamonds are produced artisanally

• DDI supports the objectives of the Kimberley Process, theInternational Labour Organisation and the Communitiesand Small-Scale Mining (CASM) initiative

• Government: UN Fund for International Partnerships,UNICEF, Ministry of Mineral Resources: Sierra Leone,United Nations Economic Commission for Africa

• NGOs: Fairtrade Foundation, Earthworks, Foundation forEnvironmental Security and Sustainability, InternationalCommission on Mining, Communities and Small-ScaleMining, Secretariat of the World Bank, Partnership AfricaCanada, Association for Responsible Mining, GlobalWitness: London

• Mining: Rio Tinto, World Diamond Council, BHP Billiton• Wholesaling: International Diamond Manufacturers

Association, International Diamond ManufacturersAssociation, Jewellers of America

• Standards: Produces the series of 'standards andguidelines' for investors, government departments, aidagencies, and NGOs with a focus in artisanal miningoperations in different African countries

• Expertise: Provides extensive library of material onartisanal mining on the DDI website

• Raising funds: Manages a 'challenge fund' to co-financeprojects that support DDI aims and objectives

Source: Diamond Development Initiative website (http://www.ddiglobal.org/); Team analysis

10

Governance

Voluntary system

Reporting


Other: ______________




Background


Activity types

Environment

Human rights

Social standards

Other_______________

Health and safety

Activity focus

DOW JONES SUSTAINABILITY INDEX (DJSI)

• The DJSI World Index comprises the leading companies interms of sustainability around the world

• It captures the top 10% based on long-term economic,environmental, and social criteria out of the biggest 2 500companies worldwide

• The index identifies the sustainability leaders in each of 57industry groups

• There are 2500 companies on the index• There are 45 mining companies on the world index• The mining industry sustainability leaders are:

– Anglo American Plc.– BHP Billiton Group Australia– BHP Billiton PLC– Rio Tinto Ltd. Australia– Inco Ltd. Canada– Lonmin– Newmont Mining Corp. United States– Rio Tinto plc– Xstrata Plc

• Evaluating: Assesses economic, environmental, and socialdevelopments using a defined set of weighted criteria. Asnapshot is derived from a questionnaire, as well as areview of company, and third-party documents

• Assurance: Provides external assurance through Deloittewho ensures that the corporate sustainability assessmentsare completed in accordance with the defined rules

• Comparing: Ranks companies based on the outcomes ofthese sustainability assessments

Source: Dow Jones Sustainability Index website (www.sustainability-index.com/); Team analysis

11

Governance

Voluntary system

Reporting

Industry benchmark

Other: ______________




Background


Activity types

Environment

Human rights

Social risks

Other_______________

Health and safety

Activity focus

EQUATOR PRINCIPLES (EP)

• The Equator Principles was started in October 2002 by anumber of banks in conjunction with the World BankGroup's IFC

• The EQ provides a sustainability framework to whichborrowers have to adhere to in order before obtainingfunding IFC from financial institutions that are members

• The first set of Equator Principles was launched on 4 June2003 and an updated version was released in July 2006

• Financial Institutions: ABN AMRO Bank N.V., ANZ,Banco Galicia, The Royal Bank of Scotland, SocieteGenerale, Standard Chartered Bank, National AustraliaBank, JPMorgan Chase, Fortis, Citigroup Inc., Barclays plc,HSBC Group, ING Group, Lloyds TSB, Royal Bank ofCanada, Banco do Brazil, Credit Suisse Group, WestpacBanking Corporation, Royal Bank of Canada, Bank ofAmerica

• Enforcement: Ensures compliance with the set of tenbusiness principles before providing a borrower with therequired finance. These principles cover:– Review and categorisation– Social and environmental assessment– Applicable social and environmental standards– Action plan and management system– Consultation and disclosure– Grievance mechanism– Independent review– Covenants– Independent monitoring and reporting– EPFI reporting

Source: Equator Principles website (http://www.equator-principles.com/); Team analysis

12

Voluntary system

Reporting


Other: Governmentinvolvement




Background


Activity types

EXTRACTIVES INDUSTRY TRANSPARENCYINITIATIVE (EITI)

• The EITI focuses on improving transparency andaccountability in the extractives sector to strengthengovernance.

• It sets a global standard through the verification and fullpublication of company payments and governmentrevenues from oil, gas, and mining in resource-richcountries

• In order to achieve the EITI compliant status a candidatecountry must complete an EITI validation within 2 years

• The EITI is supported by– Companies– Civil society– Countries– Industry associations– Institutional investors– International organisations

• Candidate countries: Azerbaijan, Cameroon, Côted'Ivoire, Democratic Republic of Congo, Equatorial Guinea,Gabon, Ghana, Guinea, Kazakhstan, Kazakhstan,Kyrgyzstan, Liberia, Madagascar, Mali, Mauritania,Mongolia, Niger, Nigeria, Peru, Republic of the Congo, SãoTomé e Príncipe, Sierra Leone, Timor-Leste, Yemen

• Benchmark: Provides requirements for transparentfinancial reporting of all companies within the extractivesindustry

• Networking: Hosts the EITI conference every two years,bringing together all stakeholders of within the extractiveindustry i.e. companies, civil society groups, implementinggovernments, supporting governments, investors

• Manages funds: Oversees the EITI Multi-Donor TrustFund

Source: EITI website (http://eitransparency.org/); Team analysis

Governance

Environment

Human rights

Social standards

Other_______________

Health and safety

Activity focus

13

Governance

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards

Other_______________

Health and safety

Activity focus

FTSE 4 GOOD

• FTSE 4 Good was launched in 2001 and aimed at sociallyresponsible investors

• It limits inclusion to indices, based on CSR activites• There are five benchmark indices (global, US, UK, Europe,

and Japan) and four tradable indices (global, US, UK, andEurope)

• Companies from various industries from the UK, US andEurope, including:– Alcoa– Alcan– AngloGold– Rio Tinto– Party gaming– CSR– First solar– Capital one– Banesto– Hellenic telecom

• Evaluating: Benchmarks companies on the FTSEaccording to the following CSR criteria:– Environmental management– Climate change mitigation and adaptation– Countering bribery– Upholding human and labour rights– Supply chain labour standards

Source: FTSE 4 Good website (http://www.ftse.com); Team analysis

14

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

GLOBAL BUSINESS COALITION ON HIV / AIDS,TUBERCULOSIS AND MALARIA (GBC)

• Global Business Council is a coalition of 220 companiesformed to fight HIV / AIDS, malaria, and tuberculosis

• The council offers networking opportunities and advice toany of its members to proactively deal with HIV / AIDS,tuberculosis and malaria, where it challenges sustainability

• The GBC has 220 members which include:– Anglo American– AngloGold Ashanti– Barrick Gold Corporation– BHP Billiton– De Beers– Debswana Diamond Company– Impala Platinum– Newmont Mining– Rio Tinto– Vale– Xstrata

• Expertise: The GBC collects and shares knowledge toassist companies to develop programmes to deal withthese issues

• Networking: Organises networking opportunities to get thelargest business with the purpose of knowledge sharing

• Collaboration: Mobilises resources across sectors as wellas between various stakeholders

Source: IRMA website (http://www.gbcimpact.org/); Team analysis

15

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

GLOBAL MINING INITIATIVE (GMI)

• In Global Mining Initiative (GMI) was initiated in 1999• Through the WBCSD, the GMI contracted the International

Institute for Environment and Development (IIED) tocomplete a two year research process where more than200 companies and individuals were consulted

• This project was called the Mining, Minerals andSustainable Development Project (MMSD)

• The findings was presented at the final GMI meeting in2002

• Fouding members: Anglo American, BHP Billiton,Codelco, Newmont, Noranda, Phelps Dodge, Rio Tinto,WMC

• Stakeholder engagement: Engaged with a multitude ofstakeholders over a two years period to identify theconstraints and key success factors to sustainableoperation

• Framework: Provided a framework in the final report onhow to accelerate the movement towards sustainabledevelopment:– A set of 10 sustainability principles– Standards for public reporting– The requirements for independent assurance

• Recommendations: Recommended a number of specificprojects to overcome the constraints: Resource endowmentinitiative, integrated mine closure, dealing with HIV / AIDS,tuberculosis and malaria, lifecycle management andcommunity development

Source: ICMM website (http://www.icmm.com/); Team analysis

16

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other: Economicperformance

Health and safety

Governance

Activity focus

GLOBAL REPORTING INITIATIVE (GRI) – MINING ANDMETALS SUPPLEMENT

• The GRI envisions that economic, environmental, andsocial performance reporting by all organisations is asroutine as financial reporting. The sustainability reportingframework provides a basis for organisations to disclosetheir sustainability performance

• GRI led the collaborative process between the GRI andInternational Council on Mining and Metals to publish theMining and Metals sector supplement in February 2005

• Companies: Alcoa, Anglo American, BHP Billiton, FirstPoint Minerals Corporation, ABP, Newmont Mining Corp.,Noranda Inc./ Falconbridge Ltd., Barrick Gold, Rio Tinto,Standard Life Investments, Sumitomo Metal Mining

• Government: IFC / World Bank Group• NGOs: Council for Responsible Jewellery Practices, IUCN

Southern Africa Programme, National Union ofMineworkers of South Africa, Oxfam International, Umicore,and World Wildlife Fund

• Standards: Provide reporting standards for the miningsector through a Minerals and Metals Sector Supplementwhich includes reporting guidelines for exploration,feasibility, construction, mining and metal processing andmine closure

• Principles: Bases the economic, environmental, and socialreporting standards on principles of:– Transparency, inclusiveness, and auditability– Completeness, relevance, and sustainability– Accuracy, neutrality, and comparability– Clarity and timeliness

• Framework: Defines the content that needs to be reportedon: vision and strategy, profile, governance structure,management systems and performance indicators

Source: GRI website (http://www.globalreporting.org/); Team analysis

17

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

INITIATIVE FOR RESPONSIBLE MININGASSURANCE (IRMA)

• IRMA is a multi-sector effort, launched in June 2006, todevelop and establish a voluntary system to independentlyverify compliance with environmental, human rights andsocial standards for mining operations

• IRMA seeks to build a system on the existing foundation ofresearch, tools, and initiatives (e.g. ICMM framework,Mining Certification Evaluation projects)

• Associations: Council for Responsible JewelleryPractices, International Copper Association, InternationalCouncil of Mining and Metals, Jewellers of America, theNickel Institute

• NGOs: Canadian Boreal Initiative, Centre for Science inPublic Participation, Conservation International,EARTHWORKS, Great Basin Minewatch, Oxfam America,Pembina Institute, Renewable Resources Coalition, WorldWildlife Fund

• Retailers: Tiffany & Co., Wal-Mart

• Assurance: Provides independent verification ofcompliance to a host of sustainable development issues:– Fair and equitable distribution of benefits to communities– Effective responsiveness to potentially negative impacts

to the environment and human resources– Enhancement of shareholder value

• Stakeholder Engagement: Implements a system whichseeks to gain input and support from all key sectors

Source: IRMA website (http://www.responsiblemining.net); Team analysis

18

Voluntary system

Reporting

Industry benchmark

Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other: Economicperformance

Health and safety

Governance

Activity focus

INTERGOVERNMENTAL FORUM ON MINING, MINERALS METALSAND SUSTAINABLE DEVELOPMENT (IFMMMSD)

• The Global Dialogue was one of a number of partnershipinitiatives aimed at promoting the implementation of theJohannesburg World Summit Plan of Implementation

• The Intergovernmental Forum was formed from the GlobalDialogue and is specifically designed to fulfill the prioritiesfor the mining, minerals, and metals sector as identified inthe Johannesburg World Summit Plan

• Member countries: Argentina, Mongolia, Bolivia, Morocco,Botswana, Mozambique, Brazil, Niger, Burkina Faso,Nigeria, Burundi, Papua New Guinea, Canada, Peru,Dominican Republic, Philippines, Ethiopia, Republic ofGuinea, Gabon, Romania, Ghana, Russian Federation,India, Senegal, Jamaica, Sierra Leone, Kazakhstan, SouthAfrica, Kenya, Suriname, Kyrgyz Republic, Swaziland,Madagascar, Tanzania, Malawi, Uganda, Mali, UnitedKingdom, Mauritania, Uruguay, Mexico, Zambia

• Expertise: Provides consultative and advisory services tomember countries

• Networking: Provides governments with a framework inwhich to discuss the opportunities provided by mining,minerals, and metals and to respond to the challenges theypose

• Information exchange: Creates an opportunity to meetand share experiences and information, to provide adviceand make recommendations for consideration bygovernments and intergovernmental bodies

Source: Global Dialogue/IFMMMSD website (http://www.globaldialogue.info); Team analysis

19

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

INTERNATIONAL COUNCIL ON MINING AND METALS(ICMM)

• ICMM is a CEO-led industry group formed in 2001. Itfocuses on the emerging issues in the Mining and Metalssector

• The ICMM promotes good practice and improvedperformance across the globe for various commodities andaims at providing a platform for the industry to sharecommon challenges

• Associations: International Copper Association, WorldGold Council, Chamber of Mines of South Africa, ChinaInternational Mining Group, Japan Mining IndustryAssociation, World Coal Institute, Eurometaux, Euromines,International Zinc Association, International MolybdenumAssociation, International Wrought Copper Council, NickelInstitute, Cobalt Development Institute, Minerals Council ofAustralia, Mining Association of Canada

• Companies: Alcoa, Anglo American, AngloGold Ashanti,Barrick, BHP Billiton, Freeport-McMoRan Copper and Gold,Gold Fields, Lihir Gold, Lonmin, Mitsubishi Materials,Newmont, Nippon Mining and Metals, OZ Minerals, RioTinto, Sumitomo Metal Mining, Teck, Vale, Xstrata

• Framework: Implements the sustainable developmentframework based on recommendations of the Mining,Minerals, and Sustainable Development (MMSD) project

• Principles: Ensures effective implementation of the its tenprinciples though alignment of the companies strategicintent with the principles

• Expertise: Providing expertise, actions plans, bestpractices and practical toolkits for implementation

• Enforcement: Enforces members compliance with the GRIMining and Metals Reporting standards

• Assurance: Plans to provide independent assurance ofcompliance

Source: ICMM website (http://www.icmm.com/); Team analysis

20

Voluntary system

Reporting



Certification



Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

INTERNATIONAL CYANIDE MANAGEMENT CODEFOR THE GOLD MINING INDUSTRY (CMC)

• The code is a voluntary programme aimed at the improvingmanagement of cyanide in the global gold mining industryand reducing the exposure of workers, communities andenvironment to harmful concentrations of cyanide

• The code was developed by a multi-stakeholder steeringcommittee led by the United Nations EnvironmentalProgramme (UNEP) and the International Council onMetals and the Environment (ICME)

• Gold mining companies: Allstate Explorations NL,AngloGold Ashanti, Aruntani SAC, Kinross GoldCorporation, Newmont Mining Corporation, Pan AustralianResources Ltd., Rio Tinto, Dundee Precious Metals Inc.,Gabriel Resources Ltd.

• Cyanide producers: CYANCO, CyPlus, Orica AustraliaPty Ltd., Sasol Polymers, TaeKwang Industrial Co. Ltd.,Tongsuh Petrochemical Corporation, E.I. DuPont deNemours and Company

• Cyanide transporters: Miller Transporters, Inc., SasolInfrachem, Sentinel Transportation, LLC, TransportTerrassement Minier, TransWood Inc., Vehrad Transportand Haulage Limited, Allship Logistics Limited, AustralianGold Reagents Pty Ltd.

• Standards: Administers the standards for the managementof cyanide in the gold mining industry

• Assurance: Provides independent verification ofcompliance

• Marketing: Promotes adoption of and compliance with theCode, and to monitor its effectiveness and implementationwithin the world gold mining industry

• Stakeholder engagement: Works with governments,NGOs, financial interests and others to foster widespreadadoption and support of the code

• Re-assessment: Identifies technical or administrativeproblems or deficiencies that may exist with Codeimplementation

Source: The Cyanide Management Code website (http://www.cyanidecode.org/); Team analysis

21

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

INTERNATIONAL FINANCE COUNCIL (IFC) AGAINST AIDS

• The IFC Against Aids Mission statement is to protectpeople and profitability by being a risk partner, HIV / AIDSExpert and a catalyst for action where HIV / AIDS threatensSustainable Development

• IFC are involved with Companies in Africa, Jamaicaand India including: Bonite Bottling Company, DFCU(Uganda), K-Rep Bank (Kenya), Magadi Soda Company(Kenya), Magana Flowers Kenya Ltd, Mozal II(Mozambique), MTN Nigeria, Serena Hotels (Kenya),Hernic Ferrochrome (South Africa), Odebrecht, (Angola),Ambuja Cement, Apolo Tyres, Ballapur Industries Limited(BILT,) Usha Martin, Jamaica Public Service CompanyLimited

• Toolkits: Provides toolkits can be used by companies toguide them in designing a HIV / AIDS programme forawareness, prevention and care

• Knowledge Sharing: Publishes best practices andexperiences to assist companies in their implementation

Source: IFC Against Aids (http://www.ifc.org/IfcAgainstAids); Team analysis

22

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

INTERNATIONAL FINANCE COUNCIL (IFC) PERFORMANCESTANDARDS

• The IFC manages the social and environmental risks andimpacts on its member countries by implementingperformance standards for its clients

• Compliance to the standards is a requirement for receivingor retaining funding

• Requirements include disclosure of information

• Companies: Any mining institution that has obtained loansfrom the World Bank is a member

• Countries: Most countries have signed the IFCs articles ofagreement and are members

• Sustainability benchmark: Provides the benchmarks forsustainability activities for companies needing finance fromthe world bank around:– Social and environmental assessment and management– Labour and working conditions– Pollution prevention and abatement– Community health, safety, and security– Land acquisition and involuntary resettlement– Biodiversity conservation and sustainable natural

resource management– Indigenous peoples– Cultural heritage

Source: IFC website (http://www.ifc.org); Team analysis

23

Voluntary system

Reporting


NGO involvement




Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

INTERNATIONAL ORGANIZATION FOR STANDARDISATION14001 (ISO 14001)

• The International Organization for Standardisation wasformed in Geneva in 1946 with the mission of promotingtrade by creating international standards

• The ISO 14001 Series was intended to create a standardfor organisations to limit the environmental impact of theiractivities

• The standard provides an benchmark for EnvironmentalManagement Systems that is internationally recognised

• Members include companies of all sizes and maturitiesfrom multiple industries, e.g.:– Anglo Platinum– AngloGold Ashanti– BHP Billiton– Gold Fields– Rio Tinto– Vale– Xstrata

• Framework: Implements a systematic approach to settingenvironmental objectives and targets with the intention of:– indentifying and controlling environmental impact– improving companies environmental performance

Source: ISO website (http://www.iso.org); Team analysis

24

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

KIMBERLEY PROCESS (KP)

• The Kimberley Process is an initiative involving thegovernments, industry, and civil society.

• The KP aims to restrict the flow of the conflict diamonds inorder reduce funding of armed conflict in Angola, Coted'Ivoire, the Democratic Republic of the Congo and SierraLeone

• Around 99.8% of the global production of rough diamondsis represented by the KP members

• The KP has 48 members from 74 countries (including theEuropean Union as a single country)

• Member states: Canada, People's Republic of China,India, Indonesia, Republic of Korea, Malaysia, NewZealand, Russian Federation, Singapore, Sri Lanka,Switzerland, Thailand, UAE, US, and Australia

• Organisations: The World Diamond Council, GlobalWitness, Partnership-Africa Canada

• Certification: Provides the standards for certification ofshipments of rough diamonds

• Economic Stability: Creates a platform to stabiliseeconomically weak countries and also enhance theirdevelopment by bringing diamonds onto the legal market

• Assurance: Provides independent assurance wheretransgressions are reported

• Networking: Provides a forum for stakeholders to shareknowledge and best practices and ask advice

Source: Kimberly Process website (http://www.kimberleyprocess.com/); Team analysis

25

Voluntary system

Reporting


Other: Informationsharing




Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

MILLENNIUM DEVELOPMENT GOALS (MDG)

• In September 2000, world leaders adopted the MillenniumDeclaration, which was then translated into a roadmapsetting out goals to be reached by 2015

• The MDGs are 8 goals that represent commitments by allcountries to reduce poverty and hunger, and to tackle ill-health, gender inequality, lack of education, lack of accessto clean water, and environmental degradation

• Countries: 189 countries are signatories• Intergovernmental organisations: UN-ECLAC ,

UNESCO, UNFPA, UN-HABITAT, UNICEF, UNIFEM,OHCHR , WHO, OECD, World Bank

• Campaigning : Supports advocacy for the MDGs andworking with partners to mobilise the commitments andcapabilities of broad segments of society to buildawareness on the MDGs

• Analysis: Researches and shares best strategies formeeting the MDGs in terms of innovative practices, policy,and institutional reforms, means of policy implementation,and evaluation of financing options

• Monitoring: Helps countries report advancement towardsthe MDGs and track progress

• Operational activities: Provides goal-driven assistance tosupport governments to tailor MDGs to local circumstancesand challenges and address key constraints to progress onthe MDGs

Source: UN website (http://www.undp.org/mdg); Team analysis

26

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

OCCUPATIONAL HEALTH & SAFETY ASSESSMENTSERIES 18001 (OHSAS 18001)

• OHSAS is the International Occupational Health and SafetyManagement specification

• It has been written as a combination of standards,certification bodies and consultancies

• The most prominent mining members include:– BHP Billiton– Anglo Platinum– AngloGold Ashanti– Kumba Iron Ore– Newmont Mining– Rio Tinto– Vale– Xstrata

• Many countries have legislated compliance with OHSAS intheir labour law

• Framework: Establishes a management system tominimise risk to employees and other interested parties

• Enforcement: Assures conformance with OH&S policy• Re-assessment: Constant re-evaluation of the OH&S

systems to improve effectiveness• Self-evaluation criteria: Provides criteria for companies to

make a self determination and declaration of compliancewith OH&S specifications

• Assurance: Provides mechanisms to seek externalindependent certification

Source: OHSAS website (http://www.ohsas-18001-occupational-health-and-safety.com); Team analysis

27

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

ORGANISATION FOR ECONOMIC CO-OPERATIONAND DEVELOPMENT (OECD)

• Civil Society Organisation started in 1956 with acommitment to democracy and the market economy

• Provides statistics and social and economic data, forecastseconomic developments, researches social changes

• Australia• Austria• Belgium• Canada• Czech

Republic• Denmark• Finland• France• Germany• Greece• Hungary• Iceland• Ireland• Italy• Japan

• Expertise: Provides advice and consultation service tocountries with the intention of:– Supporting economic growth– Boosting employment– Raising living standards– Maintaining financial stability– Contributing to growth in world trade

• Korea• Luxembourg• Mexico• Netherlands• New Zealand• Norway• Poland• Portugal• Slovak

Republic• Spain• Sweden• Switzerland• Turkey• United Kingdom• United States

Source: OECD website (http://www.oecd.org); Team analysis

28

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

PARTNERING AGAINST CORRUPTION INITIATIVE (PACI)

• World Economic Forum Partnering Against CorruptionInitiative (PACI) was launched by CEOs from theEngineering and Construction, Energy and Metals andMining industries in January 2004

• PACI is multi-sector initiative and members constitutecompanies of all sizes and countries of origin

• PACI is a multi-stakeholder initiative which works with anumber of organisations including: The Basel Institute onGovernance, The International Chamber of Commerce,The Organisation for Economic Co-operation andDevelopment, Transparency International, The UN GlobalCompact, The Multilateral Development Banks andselected International Financial Institutions

• 139 Companies are represented by their senior leadership,including: African Rainbow Minerals, De Beers Group ofCompanies, Newmont Mining Corporation, Rio Tinto Plc,etc.

• Framework: Promotes the implementation of the PACIPrinciples for Countering Bribery through three stages:– Implementation: Utilises PACI experience through an

implementation plan, guidance document and networkingsession to share experiences

– Self monitoring: Implements a self monitoring programme– External Verification: Independently verifies compliance

Source: PACI website (http://www.weforum.org/en/initiatives/paci/index.htm); Team analysis

29

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards

Other_______________

Health and safety

Governance

Activity focus

SOCIAL ACCOUNTABILITY 8000 (SA 8000)

• SA 8000 was published in 1997 and revised in 2001• It is aimed at creating a humane workplace for all and

contains elements such as: Child / Forced labour, Healthand safety, Freedom of association, right to collectivebargaining, Discrimination, Discipline, Working hours,Compensation, Management systems

• Companies from various industries including:– Akara Mining Limited– AngloAmerican– Kumba Iron Ore– Vale– The Gap– Co-Op Italia– Chiquita brands

• Multinational NGOs including:– Amnesty International– C.A.R.E

• Labour organisations• Governmental agencies• Certification bodies

• Assurance: Provides external assurance standards whichinclude:– Factory level management requirements– Independent expert verification of compliance– Involvement by stakeholders– Public reporting– Consumer and investor concern– Training partnerships– Research and publication of guidance– Complaints appeals and surveillance processes

Source: Social Accountability website (http://www.sa8000.org); Team analysis

30


Voluntary system

Reporting


Other _______________



Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

TRANSPARENCY INTERNATIONAL (TI)

• Transparency International is civil society basedorganisation founded in 1993

• TI’s focus is on corruption and governance issues, butindirectly aim to address issues around environment,human rights, safety and social standards

• TI International has 95 National Chapters worldwide,including:– Africa and Middle East, e.g.: Uganda, Zambia, Kuwait,

Bahrain– Asia and Pacific e.g.: Australia, Japan, Bangladesh– Americas e.g.: Argentina, Columbia, USA– Europe and Central Asia e.g.: Albania, Kazakhstan

• Noticeable omissions from the member list include Chinaand Saudi Arabia

• Regulation: Works on a national and multinational level tointegrate anti-corruption policy into law

• Intergovernmental Collaboration: Promotesintergovernmental agreements to fight corruption

• Awareness: Raises awareness of the impact of corruptionon natural and human resources and produces a GlobalCorruption Report, highlighting major transgressions andsuccess stories

• Compares: Ranks countries according to– their perceived corruption levels amongst officials– the propensity of exporting companies to bribe countries

they are dealing with– the general populations attitude towards corruption

• Rewards: Provides awards for countries that honour thevalues put forward by TI

Source: Transparency International website (http://www.transparency.org); Team analysis

31

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards

Other: Anti-corruption

Health and safety

Governance

Activity focus

UNITED NATIONS GLOBAL COMPACT PROFILE(UNGC)

• The Global Compact is businesses that are committed toaligning their operations and strategies with ten universallyaccepted principles

• The UNGC is the world's largest global corporatecitizenship initiative

• 6 UN agencies: OHCHR, ILO, UNEP, UNODC, UNDP,and UNIDO

• Business associations: World Savings Banks Institute,The Associated Chambers of Commerce, and Industry ofIndia, etc. and many local business associations

• International labour organisations: Union NetworkInternational, Trade Union Advisory Committee, etc. andmany national labor organisations

• Global NGOs: AIESEC International, Alisei, ConservationInternational, Emirates Environmental Group, Fundeso, etc.

• Academic stakeholders: Ahfad University for Women• Public sector organisations

• Principles: Promotes the implementation of the tenprinciples of the Global Compact. These include:– Support and respect the protection of human rights– Not be complicit in human rights abuses– Uphold the freedom of association and the effective

recognition of the right to collective bargaining– Eliminates forced and compulsory labour– Aim at the effective abolition of child labour– Eliminate discrimination of employment and occupation– Take precautionary approach to environmental

challenges– Promote greater environmental responsibility– Encourage the development and diffusion of

environmentally friendly technologies– Work against corruption

Source: UN Global Compact website (http://www.unglobalcompact.org/); Team analysis

32

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

VOLUNTARY PRINCIPLES ON SECURITYAND HUMAN RIGHTS (VPSHR)

• VPSHR is a multi-stakeholder initiative established in 2000that introduced a set of principles to guide extractivescompanies in maintaining the safety and security of theiroperations

• NGOs: Amnesty International, The Fund for Peace, HumanRights Watch, Human Rights First, International Alert, IKVPax Christi, Oxfam

• Governments: Netherlands, USA, Norway, UK• Mining houses: AngloGold Ashanti, Anglo American, BHP

Billiton, Rio Tinto, Freeport McMoRan Copper and Gold,Newmont Mining Corporation

• Various Gas, oil and energy companies: BP, Chevron,ConocoPhillips, ExxonMobil, Hess Corporation, Hydro,Marathon Oil, Occidental Petroleum Corporation, Shell,StatoilHydro, Talisman Energy

• Observers: Red Cross, ICMM, International Petroleum,Industry Environmental Conservation Association

• Expertise: Assists in the implementation of the VoluntaryPrinciples

• Knowledge exchange: Hosts plenary meetings forinformation sharing

• Awareness: Encourages public communication on effortsto implement the Voluntary Principles

• Stakeholder Engagement: Encourages dialogue betweenwith Voluntary Principles Participants to facilitate acomprehensive understanding of the issues related toimplementation or assistance in implementation of theVoluntary Principles

Source: VP website (http://www.voluntaryprinciples.org/) and Risky Business (http://riskybusiness.wordpress.com); Team analysis

33

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

WORLD BUSINESS COUNCIL ON SUSTAINABLEDEVELOPMENT (WBCSD)

• WBCSD was formed on the eve of the 1992 Rio Earthsummit

• WBCSD is a CEO-led organisation with over 200companies dealing with business and SustainableDevelopment

• The council provides a platform for interaction betweengovernments, NGOs, intergovernmental agencies andbusiness

• Members are companies from 35 countries and 20 majorindustrial sectors, including:– Eskom (RSA)– Boa Steel Group Corp. (China)– Infosys (India)– Mitsubishi Corp. (Japan)– Samsung (South Korea)– Umicore (Belgium)– Areva (France)– Henkel (Germany)– ArcelorMittal (Luxemburg)– BHP Billiton (Australia)

• Expertise: Provides expertise and best practices• Research: Researches four focus areas (energy and

climate, development, the business role, ecosystems)through devoted CEO-led teams

Source: WBCSD website (http://www.wbcsd.org); Team analysis

34

Voluntary system

Reporting


Networking / informationexchange

International attendance



Background


Activity types

Environment

Human rights

Social standards

Promote investments

Health and safety

CSR

Activity focus

WORLD MINES MINISTRIES FORUM (WMMF)

Source: WMMF websites (WMMF 2006; WMMF 2008); Team analysis

• WMMF was established in 2000 as a high level dialoguecreated to discuss the common issues faced bygovernments and mining communities around the world

• The WMMF aims to share best practices and build capacity• ICMM, Natural Resources Canada, Ontario and the World

Bank were the sponsors of 2006 WMMF forum

• The 50 Participating countries in 2008 include:– Brazil– China– Ethiopia– Guinea– Peru– Tanzania– Uganda– Netherlands– Philippines– Senegal– USA– UK– Venezuela

• Networking: Provides high-level dialogue venue for bothnetworking opportunities and information exchange e.g.2006 topics included:– Geological surveys as honest brokers of knowledge for

informed sustainable mining decisions– Mining clusters in the new economy– Mineral resource benefits and revenue sharing models– Corporate social responsibility in the mining industry– Better sector governance: Securing benefits streams for

the nation and communities

35

Voluntary system

Reporting


Networking / informationexchange

International attendance



Background


Activity types

Environment

Human rights

Social standards

Other:

Health and safety

CSR

Activity focus

WORLD STEEL ASSOCIATION

Source: WMMF websites (WMMF 2006; WMMF 2008); Team analysis

• The World Steel Association was founded as theInternational Iron and Steel Institute on 19 October 1967. Itchanged its name to World Steel Association on 6 October2008

• Worldsteel acts as the focal point for the steel industry,providing global leadership on all major strategic issuesaffecting the industry, particularly focusing on economic,environmental and social sustainability.

• Worldsteel represents approximately 180 steel producers(including 18 of the world's 20 largest steel companies),national and regional steel industry associations, and steelresearch institutes. worldsteel members produce around85% of the world's steel.

• Promotes steel and the steel industry to customers, theindustry, media and the general public

• Assists its members to develop the market for steel• Promotes a zero-accident working environment for steel

industry employees and contractors.

36

REGIONAL INITIATIVES

37

Voluntary system

Reporting


Other _______________




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

PROSPECTORS AND DEVELOPERS ASSOCIATIONOF CANADA (PDAC)

• The PDAC, established in 1932, protects and promotes theinterests of the Canadian mineral exploration sector

• It aims at ensuring a robust mining industry in Canada• The PDAC encourages the highest standards of technical,

environmental, safety, and social practices not only inCanada but also worldwide

• 6000 individual members: prospectors, developers,geoscientists, consultants, mining executives, andstudents, also including those involved in the drilling,financial, investment, legal and other support fields

• 950 corporate members: senior, mid-size and juniormining companies and organisations providing services tothe mineral industry

• Networking: Hosts an annual convention - in 2008 therewere 20 000 attendees from 100 countries

• Knowledge exchange: Focuses resources ontosustainability topics of high importance to members:– Attracting new people to the exploration sector– Directing the future of the PDAC in a globalising industry– Formulating a PDAC corporate social responsibility

strategy– Maximising the exploration land base and ensuring

mineral tenure and land access

Source: PDAC website (http://www.pdac.ca/); Team analysis

38

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards

Other: PromoteInvestment

Health and safety

Governance

Activity focus

OXFAM AND ECOWAS – WEST AFRICANMINING CODE PROJECT

• Oxfam America and ECOWAS (Economic Community ofWest African States) agreed on 4 April 2008 to collaborateon creating a common mining code for all of West Africa.

• The code is a set of uniform standards created jointly bygovernments and citizens of the 15 member countries willincrease protection of human rights and the environment,while promoting investment

• 15 West African member states: The Republic of Benin,Burkina Faso, The Republic of Cabo Verde, The Republicof Côte d'Ivoire, The Republic of Gambia, The Republic ofGhana, The Republic of Guinea, The Republic of GuineaBissau, The Republic of Liberia, The Republic of Mali, TheRepublic of Niger, The Federal Republic of Nigeria, TheRepublic of Senegal, The Republic of Sierra Leone,Togolese Republic

• Common goals: Facilitates contribution from civil societyto form a common mining policy that is:– Favourable to the poor– Respectful of the protection principles of the environment

and of human rights– Renders the government and the mining companies

responsible through good governance practices• Framework: Provides guidelines to achieve the following

objectives:– Social stability, eradication of armed conflict, job security,

securing income and food and respecting good miningconduct norms

– Macroeconomic stability of member countries' economies– Protection of the environment

Source: Oxfam website (http://www.oxfamamerica.org/newsandpublications/news_updates/oxfam-america-and-ecowas-to-create-new-mining-code); Team analysis

39

Voluntary system

Reporting






Background


Activity types

Environment

Human rights

Social standards


Health and safety

Governance

Activity focus

TOWARDS SUSTAINABLE MINING (TSM)

• Towards Sustainable Mining launched by the miningassociation of Canada in 2004

• It aims to improve the performance of its members bothsocially and operationally

• TSM is based on a set of guiding principles

• Canada companies with mining operating or plantsincluding:– Albian Sands Energy– Barrick Gold– BHP Billiton– Cameco– DeBeers Canada– Diavik Diamonds– IAM Gold– Rio Algom Ltd.– Xstrata Copper, Nickel, and Zinc

• Standards: Provides reporting standards and performancemeasures which measure a companies performanceagainst:– Environment (e.g. tailings and Carbon emissions)– Social standards (e.g. community involvement)– Management systems (e.g. Crisis management systems)

Source: TSM website (http://www.mining.ca/www/Towards_Sustaining_Mining/index.php); Team analysis

40

Voluntary system

Reporting


Government involvement




Background


Activity types

Environment

Human rights

Social standards

Other _______________

Health and safety

Governance

Activity focus

WHITEHORSE MINING INITIATIVE

• The Mining Association of Canada in September 1992proposed a multi-stakeholder process to create a healthymining industry

• On 13 September 1994, the Leadership Council adoptedan accord which included a background, a visionstatement, 16 principles, 65 goals, and a statement ofcommitment to follow-up action

• Canadian Metals and Mining companies, including:– Large and medium mining houses– Exploration companies

• Focussing outcomes: Promoted the sustainable evolutionof Canadian mining through focussing outputs of variousmining sector initiatives

• Research: Created specialised issue groups whichaddresses specific problem areas

• Concluded with the outcomes deemed to be successful

Source: Natural Resources Canada website; Press search; Team analysis

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