Gold Fields

Licence and reputation

Key measurements – Licence and reputation

	2017		Status		2016		2015		2014		2013
Total value distribution (US$m)	2,850				2,505		2,425		2,650		2,980
SED spending (US$m)	17.4				16.2		13.7		17.4		17.2
Workforce from host communities (%)	40				484		59		57		–
In-country procurement (US$m)	1,626				1,360		1,270		1,440		1,440
Host community procurement (US$m)	774				558		514		600		430
Environmental incidents (Level 3 and above)	2				3		5		4		3
Water recycled/reused (Mℓ)	43,289				44,274		43,120		42,409		33,453
Water withdrawal (Mℓ)1	32,985				30,321		35,247		30,207		30,302
Electricity purchased (MWh)1	1,366,086				1,400,422		1,322,353		1,338,075		1,382,106
Diesel (TJ)1	6,765				6,608		6,930		6,066		5,509
CO2 emissions (‘000 tonnes)2, 3	1,959				1,964		1,753		1,694		1,731
Mining waste (‘000 tonnes)	212,089				187,036		167,357		138,522		190,007
Gross closure costs provisions (US$m)	381				381		353		391		355

1	The numbers disclosed only include our operations, as head offices are not considered material
2	The CO2 emission numbers include head offices and comprise Scope 1, 2 and 3 emissions
3	Scope 1 emissions are those arising directly from sources managed by the Company. Scope 2 emissions are indirect emissions generated in the production of electricity used by the Company. Scope 3 emissions arise as a consequence of the activities of the Company
4	2016 reduction due to classifying host community based on place of origin and not residence. 2015 and 2014 figures restated accordingly

2017 performance improvement on 2016 or achievement in line with strategy 2017 performance drop against 2016 2017 performance on par with 2016

Total value distribution US$2,850m

Results and impact

			Enhance reputation through community, environmental and safety programmes that enhance the lives of our people Enhance governance and compliance Build confidence with analysts and investors Enhance reputation with stakeholders through Shared Value initiatives
			Improve total shareholder return by positioning share price between median and upper quartile of peer group Increase the proportion of sustainable host community procurement and employment to drive Shared Value No Level 3 or above environmental incidents and a 10% reduction in Level 2 incidents Align management practices with ICMM tailings and water position statements Deliver and manage a robust and transparent group governance and compliance programme Maintain position in top five in Dow Jones Sustainability Index		We continued to enhance our social licence to operate through ESG focused initiatives
			Loss of social licence to operate and community acceptance Water pollution, supply and cost Safety and health of our employees Attraction and retention of skills Cost of energy and security of power supply Impacts of global climate change Wage agreement in South Africa and Ghana

Key stakeholders
		Communities	Shareholders	Governments and regulators

Overview

For Gold Fields, leadership in sustainable gold mining means being the company of choice for all our stakeholders – employees, communities, government and investors. Sustainability in this context means building mines across the world, operating them responsibly and profitably over life-of-mine and creating Shared Value for all our stakeholders.

To protect and enhance these relationships and our reputation we understand that we must minimise the impact of our operations through environmental stewardship, while ensuring we have meaningful and ongoing engagement and relationships with our stakeholders to create Shared Value opportunities and deliver clear economic, social and environmental benefits to them.

Our ability to fulfil our commitment to stakeholders, also requires that we run our operations sustainably and profitably. Above all, we require the highest levels of corporate governance and compliance. This is essential given the long-term, capital-intensive nature of our mining projects, as well as the, at times, challenging social and political contexts in which we operate.

This section deals with the licence and reputation pillar of our balanced scorecard and is divided into three parts, environmental stewardship, stakeholder relationships and engagement and governance and compliance, reflecting our new operating structure.

Our operations have a significant impact on both the environment and our stakeholders, particularly on those communities living in close proximity to our mines or projects. How we maximise our positive impact and mitigate adverse impacts is critical to protecting and enhancing our reputation, achieving societal acceptance as well as maintaining our ability to receive or renew our regulatory licences.

Regulatory licences are issued by governments at all levels, national, regional and local, and require first and foremost good corporate citizenship from Gold Fields in terms of adherence to all relevant legislation, including the payment of taxes and other levies, as well as a robust governance and compliance approach.

Societal acceptance is mostly achieved by building strong relationships with our stakeholders. This is not merely a compliancebased approach, but one that seeks to ensure that we secure the long-term support of our stakeholders.

During 2017, Gold Fields’ total value distribution to our stakeholders was US$2.85bn (2016: US$2.51bn), in the form of payments to governments, capital providers, communities, business suppliers and employees. The vast majority of the value created remains in the countries of operation.

The five key elements of our sustainable development strategy are:

Our objectives		Priorities	More info
Energy and climate change		Stabilise energy costs at current levels Drive renewables and a lower carbon energy mix Start managing climate change adaptation risks	here and here
Social acceptance		Build strong community and government relationships Drive impact through Shared Value Enhance stakeholder engagement and communications	here
Water stewardship		Set and achieve water withdrawal and recycling/reuse targets Achieve water security through catchment approach	here
Integrated mine closure		Business-wide integrated approach Liabilities optimised through progressive closure and rehabilitation Address social transition at closure	here
Integrated approach		Achieve collaboration across disciplines Regional leadership Integrated planning	here