2024
Gold Fields Limited
Integrated Annual Report
Emerging global risks
We continue to be shaped by the risks and opportunities which exist within the broader global context. We closely observe and seek to manage these longer-term strategic and emerging risks – prioritising them as needed, including them in strategic planning reviews, engaging with our stakeholders on them and adjusting mitigating actions to protect the sustainability of our business.
Deepening geopolitical and geo-economic tensions
Risk description
On a macro level, geopolitical risks have the potential to impact the global economic outlook, influencing growth, inflation, financial markets and supply chains. Conflicts – like those between Ukraine and Russia and between Israel and Hamas in Gaza – fuel regional instability and impacted energy and food security, with higher prices leading to increased inflation rates. The political approach taken by the new US administration could also prove more challenging. In this context,
Gold Fields' portfolio decisions on jurisdictional preferences, what to invest in and which stakeholder relationships to establish and strengthen, become increasingly important.
Gold Fields' portfolio decisions on jurisdictional preferences, what to invest in and which stakeholder relationships to establish and strengthen, become increasingly important.
Impacts
- The growth of resource nationalism, protectionism and populist movements in recent years has created an environment of increasing uncertainty
- Disruptions to global supply chains and inflationary pressures could impact our operations
Risk mitigation
- Investment decisions need to be informed by a thorough understanding
of country, regional and business partner risks - Building supply chain resilience requires comprehensive due diligence processes, stronger supplier relationships, technological investment and sustainable practices
The increasingly urgent reality of environmental risks
Risk description
Climate change is forecast to result in more frequent and severe weather events like hurricanes, droughts, floods and wildfires. The risk of biodiversity loss and ecosystem collapse is expected to increase dramatically over the next decade. These factors could not only have a direct impact on our mining activities, but also potentially alter the socio-political context in which our operations exist.
Impacts
- Damaged infrastructure and disrupted supply chains, leading to resource scarcity and economic instability
- Water scarcity in drought-impacted regions, leading to operational disruption and potential water conflict with stakeholders in catchment areas
- Mining carries a heightened risk to the environment and biodiversity. Resistance to mining could increase if environmental risks materialise
Risk mitigation
- Mining can be a means for financing alternative livelihood paths in impacted communities that, over the long-term, may prevent biodiversity loss
- Recognise and manage water conflict-related risks
- Deliver climate change mitigation measures, including reducing carbon emissions
- Implement nature-positive measures having considered ICMM guidance
Technological risks and opportunities
Risk description
Gold Fields is faced with immediate pressures created by the depletion of deposits, rising operational costs and skills shortages, alongside calls for long-term positive sustainability impacts. Injecting advanced technology like AI, digital twins and predictive analytics into our operations could make them more cost effective and resilient.
Whether these technologies can be effectively implemented in a
talent-constrained environment remains uncertain.
Whether these technologies can be effectively implemented in a
talent-constrained environment remains uncertain.
Impacts
- On a macro level, AI will be disrupting global markets and business models, but also offering opportunities for efficiency gains
- In the medium to long term, the risk of adverse outcomes of AI technology could be a material factor
- Our industry peers are investing in innovation and Gold Fields' failure to effectively follow suit could result in the Group falling behind the competition
Risk mitigation
- Reskill and upskill our workforce to harness these technologies
- Explore and implement opportunities presented by AI
- Constantly review our AI Policy to ensure it addresses ever-changing opportunities and risks
