ICMM compliance

Implementation of the ICMM Sustainable Development Framework at AngloGold Ashanti

Principle 1

Implement and maintain ethical business practices and sound systems of corporate governance

AngloGold Ashanti has in place a code of conduct and ethics which is made public on the company’s website. This code of conduct and ethics is in the process of being revised, following an extensive process of internal and external consultation and review. Training and awareness of the code among employees will be part of the programme of implementation of the new code, scheduled to begin in 2010.

In the area of corporate governance AngloGold Ashanti has implemented policies on:

• Conflict of interest;
• Insider trading;
• Disclosure;
• Delegation of authority; and
• Political donations.

AngloGold Ashanti’s risk management system captures risks related to the area of ethics and corporate governance. AngloGold Ashanti’s employees are guided by a clear set of values, which have been communicated to all employees and are consistently supported by surveys, company communication and corporate policies and guidelines.

In support of our governance structures and the implementation of these values, we have put in place a confidential reporting mechanism that provides a channel for the reporting of practices in conflict with the group’s business principles, that represent unlawful conduct or financial malpractice, or that endanger the public and the environment.

Through interactions with governments, industry bodies, organised labour and other stakeholders, AngloGold Ashanti aims to reinforce the need for equitable and appropriate regulation of the mining sector and to ensure that the sector can make a positive contribution towards sustainable development within the context of national government strategy.

AngloGold Ashanti is a member of the Extractive Industries Transparency Initiative (EITI). It is fully committed to support of this initiative and publishes all payments made to Governments, whether or not the government concerned is a participant in the EITI.

For more information, see the section ‘How we operate’.

The GRI performance indicator relevant to this principle is: SO2

Principle 2

Integrate sustainable development considerations within the corporate decision-making process

Company-wide policies and standards have been or are being put in place covering key sustainability issues in order to ensure that management has the tools to incorporate sustainability considerations into decision making at all levels. Sustainability risks and opportunities are captured in the company’s risk management system and are evaluated regularly by management and the board.

In AngloGold Ashanti’s management structure, sustainability considerations are represented at the level of the company’s executive committee by the executive vice president: business sustainability. The safety, health and sustainable development committee of the board monitors and oversees the sustainable development performance of the company.

For more information, see the section ‘How we operate’.

The GRI performance indicators relevant to this principle are: SO1, MM10

Principle 3

Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities

One of the company’s values is to treat others with dignity and respect. AngloGold Ashanti has taken a multi-disciplinary approach to the management of human rights issues within the company. Respect for human rights and the dignity of others is a key principle in many of the policies and practices that are integral to the group’s sustainability efforts, including safety, health and wellness, ethics and governance, community and environmental management.

In the area of security, AngloGold Ashanti seeks to safeguard human rights through implementation of the Voluntary Principles on Security and Human Rights (the voluntary principles). It reports annually under the voluntary principles and makes annual reports available on its website.

For more information see the section ‘Human Rights’.

The GRI performance indicators relevant to this principle are: LA4, HR1, HR4, HR5, HR6, HR7, HR8, MM8, MM11

Principle 4

Implement risk management strategies based on valid data and sound science

A company-wide risk management system has been implemented in order to create a risk-aware culture within the company and to ensure that a consistent approach to assessing and mitigating risks associated with our activities is adopted. Risk information is regularly reviewed by the company’s management and at board level.

Regular communication with the communities surrounding our operations, as well as other affected stakeholders is undertaken to ensure that external parties are informed of the risks arising from our activities.

Emergency response procedures are in place at all operations and are regularly tested and maintained.

For more information see the section ‘How we operate’ and the case study 'A group-wide approach to risk management’.

The GRI performance indicators relevant to this principle are: EC2, MM4

Principle 5

Seek continual improvement of our health and safety performance

AngloGold Ashanti is committed to improving health and safety performance, within and beyond the workplace. The company is in the process of implementing a Safety (safety, health and wellness) Transformation programme which includes, among other measures, the management of risks and hazards in an ongoing way which engages and involves our workforce.

For more information see the section ‘Safety and Health’ and the case study ‘Engaging with stakeholders in safety transformation’.

The GRI performance indicator relevant to this principle is: LA6

Principle 6

Seek continual improvement of our environmental performance

AngloGold Ashanti has adopted an integrated approach to the management of environmental and community affairs. A vision has been developed for the company’s work in the area of community and environmental management which ensures that the company will:

• Operate in a way which reflects its mission, vision, values and strategy, particularly as they relate to community and environmental performance
• Take community and environmental issues into account at all levels of decision making
• Respond to internal and external groups which have a vested interest in responsible business practice
• Manage community and environmental risk, meaning that it correctly identifies the environmental risks associated with its business and puts strategies and management plans in place to manage these risks proactively

AngloGold Ashanti also has in place a policy on environment and community issues which is communicated on the company’s website and is made available at all operations. In order to support implementation of this policy, environmental management standards have been put in place in a number of areas and will be implemented over a two-year period, with an appropriate focus on internal audit and review. A Community and Environment Review Programme audits site performance biennially against to company standards.

For more information see the section ‘Environment, Community and Human Rights’.

The GRI performance indicators relevant to this principle are: EN1, EN3, EN8, EN16, EN28, MM6

Principle 7

Contribute to conservation of biodiversity and integrated approaches to land use planning

The company’s integrated environment and community policy states that “we will contribute to biodiversity protection in our areas of operation”. A Land Use Management Standard was finalised during the year. This, together with the Land Acquisition Management Standard currently under consultation, set a company-wide standard for land use, acquisition and planning. A group management standard on biodiversity is currently under development, using ICMM’s Good Practice Guidance for Biodiversity and internal and external peer review.

For more information see the section ‘Environment, Community and Human Rights’.

The GRI performance indicators relevant to this principle are: EN12, MMEN23

Principle 8

Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products

Due to the high value of the product, gold is rarely disposed of and is usually recycled or held by end customers as a store of value. AngloGold Ashanti is engaged in a number of initiatives that promote product responsibility in gold:

• Membership of the International Council on Mining and Metals (ICMM), which seeks to make a contribution to ensuring the responsible production of the minerals and metals society needs and to contribute to sustainable development. Many of the world’s major metals and mining companies are members of the ICMM.
• Membership of the Responsible Jewellery Council (RJC), which is an international, not-for-profit organisation bringing together over 140 member companies across the jewellery supply chain. RJC members are committed to promoting responsible ethical, human rights, social and environmental practices in a transparent and accountable manner throughout the industry from mine to retail.
• Membership of the World Gold Council, which is a global gold marketing body funded by the world’s leading gold mining companies. The WGC is party to various product responsibility initiatives and is a member of both the ICMM and the RJC.
• In addition to these industry-based initiatives, AngloGold Ashanti started preliminary work in 2009 on its own study to ascertain the feasibility of a commercial project based on responsible gold.

For more information, see the Product responsibility section.

The GRI performance indicators relevant to this principle are: EN26, LA8

Principle 9

Contribute to the social, economic and institutional development of the communities in which we operate

AngloGold Ashanti has adopted an integrated approach to the management of environmental and community affairs. The company is committed through its values to leaving communities better off as a result of its presence and its environment and community policy and management standards support this objective.

For details see the policies described above under principle 6 and the section on ‘Environment, Community and Human Rights’.

The GRI performance indicators relevant to this principle are: EC1, EC5, MM2, EC6, EC8, LA10

Principle 10

Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders

AngloGold Ashanti is committed to reporting on an A+ basis against the Global Reporting Initiative standard and in a manner which is fully compliant with the ICMM Sustainable Development Framework. This implies external assurance of its sustainability reporting, which will be undertaken by a ‘Big 4’ assurance provider in the 2009 financial year.

AngloGold Ashanti engages extensively with a range of stakeholders, driven by two major objectives, namely the need to consult with stakeholders on our activities throughout the life cycle of our operations; and the company’s wish to put in place mutually beneficial partnerships with the governments and societies in which we operate in order to contribute to a sustainable future for our host communities. During 2009 AngloGold Ashanti moved towards a more structured approach to stakeholder engagement, which included the development of a management standard on engagement.

The GRI performance indicators relevant to this principle are: EN11, SO5, SO7, SO8