SUSTAINABLE DEVELOPMENT

SUSTAINABLE DEVELOPMENT FRAMEWORK

In the last annual report we reported on the progress made with the development of a sustainable development framework for the Group. This framework was developed through a comprehensive process of reviewing numerous principles and best practice, as they apply to our organisation, and with regard to sustainable development. The approach that was followed, and the subsequent development of a new set of policies and an overarching framework, was not one of reinventing the wheel but rather one of consolidation of best practice within the group. This approach results from the fact that many of the best practices enshrined within various sustainable development principles are not new to Gold Fields. For many years we have implemented policies and protocols with regard to the various components of sustainable development and, as a result, this approach was a significant opportunity for all our operations to share knowledge and facilitate cross pollination. The process has culminated in the final version of our Sustainable Development Framework. This framework consists of an overarching sustainable development policy with the following supporting policies:

• Occupational Health and Safety;
• Human Rights;
• Ethics and Corporate Governance;
• Risk Management;
• Environment;
• Material Stewardship and Supply Chain Management;
• Community and Indigenous Peoples; and
• Stakeholder Engagement.

An appropriate balance between the Group’s requirements to perform financially, and to continually strive toward world-class standards in environmental management and to ensure broad social benefit.

The Sustainable Development Framework was approved by the Board. Gold Fields is fully committed to the International Council on Mining and Metals (ICMM) and to the United Nations Global Compact and their respective associated principles. In light of our commitment to the principles of the ICMM and the Global Compact, we have reviewed the terms of reference of the Safety, Health, Environment and Community subcommittee of the Board. The terms of reference have been amended to include a commitment to the principles of the ICMM and the Global Compact as well as a commitment to our own Sustainable Development Framework, which supports the aforementioned. As a result of this review, the Safety, Health, Environment and Community subcommittee was renamed to the Safety, Health and Sustainable Development Committee. Reports submitted to the subcommittee are aligned with our Sustainable Development Framework, as is this annual report.

The principle means for ensuring that the framework is properly implemented within the organisation is through integration of our sustainable development requirements into the performance management system of the organisation. This performance management system effectively consists of targets which employees aim to achieve and serve to measure employee performance, and provides guidance for incentive and reward. These contractual arrangements are secured through a Balanced Score Card (BSC) which is designed around the overall Gold Fields strategy which consists of three pillars:

• Sweating our assets;
• Growing Gold Fields; and
• Securing our future.

Gold Fields is fully committed to the International Council on Mining and Metals and to the United Nations Global Compact and their respective associated principles.

Thus our sustainable development framework becomes a series of values that are entrenched throughout our strategy, from an operational excellence point of view, to ensuring that the growth component of our strategy is undertaken with due regard to sound principles of sustainable development to, our ultimate objective of securing the future. This effectively embraces the holistic concept of sustainable development within all activities.

In terms of the strategy specific to sustainable development, again we premise this on three pillars:

• Consolidating the baseline;
• Embedding a culture of sustainable development and best practice; and
• Scenario planning toward proactively positioning the company.

The Board of Directors has approved the Sustainable Development Framework which establishes the baseline referred to above. We are in the process of integrating our entire Sustainable Development Framework into our induction processes whereby all new employees, employees returning from leave, and contractors, are exposed to the Framework and are made aware of their responsibilities. The final component of the strategy is to implement scenario planning for sustainable development. We are currently evaluating techniques to satisfy this requirement. The implementation of scenario planning systems will inform any changes that may need to be made to the baseline in order to position the company appropriately. This triggers a requirement to further refine the culture within the organisation. Thus, we believe that sustainable development is largely an evolutionary process within the organisation.

The Gold Fields Sustainable Development Framework is reflected on the previous page and all policies with regard to the Framework are available on our website and detailed in each relevant section of this report.