Gold Fields

Integrated
Annual Report

2018

Currently viewing: Overview / Next: Environmental stewardship

Our business

Licence and
reputation

Through environmental stewardship we protect and enhance relationships between our operations and the communities in close proximity to it. These relationships are built on a commitment to good corporate governance, corporate citizenship, and sharing wealth with our stakeholders. It is critical that we nurture our relationships with a number of key external stakeholders that determine both our regulatory and social licences to operate, as well as the reputation we have with these stakeholders. As such, protecting our reputation and our licence to operate therefore remains a key pillar of our scorecard.

SUSTAINABLE DEVELOPMENT GOALS

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Good Health
and Wellbeing
Clean Water
and
Sanitation
Affordable
and Clean
Energy
Decent Work
and Economic
Growth
Sustainable
Cities and
Communities
Responsible
Consumption
and Production
Climate
Action
Life on
Land
Partnerships
for the Goals
Total value distribution
US$2.7bn

KEY MEASUREMENTS – LICENCE AND REPUTATION

  2018     Status     2017 2016 2015 2014  
Total value distribution (US$m) 2,711         2,850 2,505 2,425 2,650  
SED spending (US$m) 25,71         17.40 16.20 13.70 17.40  
Workforce from host communities (%) 566         40 484 59 57  
In-country procurement (US$m)7 1,542         1,626 1,360 1,270 1,440  
Host community procurement (US$m) 441 5         774 558 514 600  
Environmental incidents (Level 3 and above) 2         2 3 5 4  
Water recycled/reused (GL) 41.4         42.3 44.3 43.1 42.4  
Water withdrawal (GL)1 21.24         33.0 30.3 35.2 30.2  
Electricity purchased (TWh)1 1.28         1.37 1.40 1.32 1.34  
Diesel (TJ)1 6,599         6,765 6,608 6,960 6,066  
CO2 emissions (‘000 tonnes)2, 3 1,852         1,959 294 1,753 1,694  
Mining waste (million tonnes) 149         212 196 167 139  
Gross closure costs provisions (US$m) 400         381 381 353 391  
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 Significant drop due to change of definition of water withdrawal to exclude diverted water
5 The decline is due to a change in the definition of host communities by our Australian operations to only include communities in their area of influence (previously Perth was included in the definition due to the FIFO nature of our mines)
6 South Deep’s host community definition was changed in 2018 to align with the 2016 municipal boundary change which amalgamated the Westonaria and Randfontein municipalities. It now includes all individuals who reside in the Rand West City Local Municipality. This number also excludes the Perth office and Gruyere project
7 Procurement spending by mines only, not projects
2018 performance improvement on 2017 or achievement in line with strategy
2018 performance drop against 2017
2018 performance on par with 2017
STRATEGIC GOALS
1 We continued to enhance our social licence to operate through ESG focused initiatives
Strategic responses – Licence and reputation  
  • Total value creation for stakeholders
  • Enhance governance and compliance
  • Enhance reputation through community investment
  • Shared Value initiations
  • Environment stewardship – improving water and climate management practices
   
Key initiatives  
  • Strengthening engagement with key stakeholders
  • Increased host community employment and host community procurement
  • Working directly and through industry associations to engage on resource nationalism
  • Growth opportunities in stable mining destinations
  • Increased investment in low-carbon and renewable energy sources
  • Comprehensive climate change risk assessment conducted at all mines with remedial action plans being implemented
  • Align to ICMM water and tailings management standards
  • Maintain Top 5 position in Dow Jones Sustainability Index
   
Related risks  
  • Resource nationalism and political uncertainty
  • Water pollution, supply and cost
  • Impact on social licence to operate
  • Cost of energy and security of power supply
  • Failure to implement climate adaption measures
   
KEY STAKEHOLDERS –
COMMUNITIES
SHAREHOLDERS
GOVERNMENTS
AND REGULATORS

Overview

Sustainable gold mining is imperative for Gold Fields' longevity and key to being the company of choice for all our stakeholders - our workforce, government, businesses, capital providers and our communities. This means developing mines across the world, operating responsibly and profitably over lives-of-mine and creating shared value for stakeholders.

Through environmental stewardship, we protect and enhance relationships between our operations and the communities in close proximity. By minimising the impact of our operations on these communities, ensuring ongoing meaningful engagement with stakeholders, and implementing sustainable development policies, we create Shared Value and deliver clear economic, social and environmental benefits to them.

The ability to fulfil our commitment to stakeholders requires that we operate 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.

In this section we deal with our licence and reputation, a pillar of our balanced scorecard. The section is divided into two parts, environmental stewardship and stakeholder relations.

Regulatory licences are issued by all levels of governments of the countries we operate in, and requires, first and foremost, good corporate citizenship from Gold Fields in terms of adherence to all relevant legislation. This includes the payment of taxes and other levies, as well as a robust governance and compliance approach. By building strong relationships with our stakeholders, we ensure that we operate beyond pure compliance.

During 2018, Gold Fields' total value distribution to our stakeholders was US$2.71bn (2017: US$2.85bn), in the form of payments to governments, capital providers, communities, businesses and our workforce. Over 90% of the value created remains in the countries of operation and increasingly in the communities that host our mines and projects.

The five key elements of our sustainable development strategy are:

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