Sustainability Report 2019 - Newcrest Mining
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2019
Sustainability
Report
OUR APPROACH
TO SUSTAINABILITY
To be the Miner of Choice
OUR VISION
for our people, shareholders,
host communities, partners
OUR VISION
and suppliers.
To safely deliver
OUR MISSION
superior returns to our
stakeholders from finding,
developing and operating
gold/copper mines.
OUR VALUES
Caring about people
Integrity and honesty
Innovation and
problem solving
High performance
Working together
Cover image: Footballers at the
Punmu Festival, sponsored by Telfer Cadia
Credit: Ngurra Kujungka
NEWCREST 2019 SUSTAINABILITY REPORT
1
CONTENTS
Welcome to Newcrest 2
CONTENTS
About this report 3
In conversation with our
sustainability leaders4
Our sustainability vision and approach 8
Our progress in FY19 10
What matters most 11
Our performance overview 12
Our stakeholders 13
Our leadership 16
Our material topics 17
1. Improving safety and health 17
2. Establishing a response to
climate change 21
3. Growing our business 25
4. Managing mine closure 32
5. Working with our communities 36
6. Respecting and protecting
human rights 44
7. Managing our waste 51
8. Behaving in an ethical and
transparent manner 55
9. Financial sustainability and
local economies 58
Appendix62
The materiality definition process 62
ICMM 10 Principles 63
World Gold Council Responsible
Gold Mining Principles 63
Stakeholder engagement summary 64
Our performance data 65
Assurance statement 76
Asset overview 78
Disclaimers 80
Corporate directory 81
OUR APPROACH
TO SUSTAINABILITY
2
Welcome to
Newcrest
TO NEWCREST
Newcrest is one of the world’s largest gold
WELCOME
mining companies. We are among the top
50 companies listed on the Australian
Securities Exchange, and we are also listed
on PNGX Market, Papua New Guinea’s
national stock exchange.
Our headquarters are in Melbourne, Australia, and we have
operating mines in Australia, Canada, Papua New Guinea (PNG) and
Indonesia. We also have a number of development projects and we
are exploring around the globe. Refer to our asset overview and
map on page 78 at the back of this report for details. As at 30 June
2019, Newcrest had a market capitalisation of A$24.6 billion and
a workforce of nearly 12,000 people.
At Newcrest we’re known for our strong technical capabilities in
exploration, deep underground block caving and metallurgical
processing skills. We are committed to creating a work
environment where everyone can go home safe and healthy every
day, and where everyone actively contributes to this outcome;
operating and developing mines in line with strong environmental,
social and governance practices; developing a diverse workforce;
Telfer
and developing and maintaining strong relationships with our
communities and governments.
To achieve Newcrest’s full potential for our stakeholders, our company strategy focuses on five key pillars,
each with associated 2020 aspirations.
OUR FIVE PILLARS
Safety & People Operating Technology Profitable
sustainability performance & innovation growth
ZERO FATALITIES FIRST QUARTILE FIRST QUARTILE 5 BREAKTHROUGH EXPOSURE TO
OUR ASPIRATIONS
AND INDUSTRY- ORGANISATIONAL GROUP AISC PER SUCCESSES BY FIVE TIER ONE
LEADING TRIFR BY HEALTH BY END OUNCE BY END END OF CY20 OREBODIES BY
END OF CY20 OF CY20 OF CY20 END OF CY20
(OPERATIONS,
DEVELOPMENT
PROJECTS,
OR EQUITY
INVESTMENTS)
NEWCREST 2019 SUSTAINABILITY REPORT
3
ABOUT THIS
REPORT
Report boundary and scope There are a number of restatements of
previous years’ data reporting in this report.
About The boundary of Newcrest’s reported
performance includes all operations (sites) These are specified on relevant pages of the
this report which Newcrest owned in FY19 excluding report and in a summary table on page 75.
projects, corporate offices and exploration The readership for this report includes
Newcrest bases its reporting sites, unless stated otherwise. Therefore, shareholders, investment analysts,
approach on guidance provided the focus of this report covers sustainability financiers and credit agencies, government
matters related to the locations of: and non-government organisations,
by the Global Reporting
–– Telfer, Australia employees (existing and potential), business
Initiative (GRI) Standards partners, students and general readers with
–– Cadia, Australia
and AA1000 AccountAbility –– Lihir, Papua New Guinea
an interest in the mining industry and/or
sustainability performance of corporations.
Principles Standard, as well –– Gosowong, Indonesia
as ICMM’s broader member The scope of this report includes data
Newcrest’s Annual Report, available on
Newcrest’s website, is also relevant to
reporting requirements. for 1 July 2018 to 30 June 2019, which this readership.
corresponds to our fiscal year. Where noted,
references are made to historical results Refer to the 2019 GRI Content Index
as needed. All financial data is presented in (online) for a detailed breakdown by page
USD unless noted otherwise. References of our reporting information.
to ‘Newcrest’, ‘the Company’, ‘the Group’, We welcome feedback, and invite
‘we’ and ‘our’ are to Newcrest Mining Ltd readers to send any comments or
and/or where explicitly stated may include enquiries about this report to us at
joint ventures and subsidiaries. sustainabilityfeedback@newcrest.com.
OUR APPROACH
TO SUSTAINABILITY
4
In conversation
with our
IN CONVERSATION WITH OUR
SUSTAINABILITY LEADERS
sustainability
leaders
How would you describe Newcrest’s policies and practices, particularly in the
Roger Higgins areas of safety and health, environmental
year from a sustainability perspective?
Chairman, Board Newcrest has made good progress in management, human rights and relationships
Safety and strengthening the sustainability elements with communities. We review Newcrest’s
work to mitigate risks in these important
Sustainability of our strategy, supporting our vision to be
sustainability areas. Monitoring performance
Miner of Choice for all our stakeholders. We
Committee are proud to be part of the fundamental role and compliance to our policies and legal
metals and mining play in the sustainable requirements is central to that process. The
development of society, whether that is committee also reviews Newcrest’s response
through meeting the increasing demand on issues of concern or non-compliance and
for the components of today’s advanced monitors industry trends and standards.
digital and renewable energy technology The committee considers opportunities
or in contributing to the livelihoods of the that have been identified for improving
communities where Newcrest operates. Newcrest’s sustainability performance,
There are many opportunities for gold and assessing the positive outcomes alongside
copper to contribute to our everyday lives. potential business risks. The committee’s role
Newcrest’s admission as a member of the also includes oversight of Newcrest’s annual
International Council on Mining and Metals Sustainability Report, which summarises
(ICMM) in November 2017 included a public management of our significant risks
commitment to the ICMM 10 Principles and and opportunities.
position statements. These address core
What are the notable sustainability
sustainability development challenges in the
challenges and achievements for the year?
mining industry. Newcrest has continued to
focus on specific actions to align our business We had further improvement in our safety
to these principles and position statements. performance this year. Newcrest continues
to focus on the health and safety of our
Safety and sustainability are fundamental
workforce and broader communities
to Newcrest’s organisational and business
as a core value. This aligns with our
strategy. During the year a corporate
commitment to developing strong, long-term
sustainability framework was developed.
relationships with our host countries and
Under the framework, the Board endorsed
local communities.
the release of a new Sustainability Policy,
Water Stewardship Policy and Biodiversity During the year we formalised our position
Policy, and related performance objectives, on climate change. Newcrest released a new
targets and metrics. We also released a policy and set a GHG intensity target of a
number of related policies and standards, 30% reduction in GHG emissions per tonne of
demonstrating our commitment to aligning ore treated by 2030, compared to a baseline
our practices with our vision. of FY18 emissions.
Challenges also arose during the year, ranging
What is the role of the Newcrest Board from advancing the Wafi-Golpu project under
Safety and Sustainability Committee? our broader growth agenda, to addressing the
The committee assists the Board with divestment requirement for Gosowong.
governance of Newcrest’s sustainability
NEWCREST 2019 SUSTAINABILITY REPORT
“In focusing on growing 5
the business, we are
IN CONVERSATION WITH OUR
SUSTAINABILITY LEADERS
compelled to do so in
a sustainable manner.”
Sound tailings management is of great managing our impacts in a responsible and and transformation, one that has reinforced
importance to Newcrest, the industry, collaborative way. This Sustainability Report Newcrest’s platform for sustainable growth.
and all our stakeholders. We received prioritises communicating our sustainability
and published the Independent Technical performance and accountability against our
Review Board (ITRB) findings on the stakeholders’ expectations. It is important
Northern Tailings Storage Facility that we measure and monitor our activities
embankment slump that occurred at to effectively manage the impacts of our
Cadia in early 2018. Through engagement growth. It is from these processes that we ROGER HIGGINS
with the ICMM we continued our close continue to be a strong corporate citizen. As CHAIRMAN
involvement in industry- wide improvements we focus on growing the business, we do so
NEWCREST BOARD SAFETY
to tailings management. in a sustainable manner.
AND SUSTAINABILITY COMMITTEE
What is your key message to the broader I want to thank the other committee
stakeholder community – the workforce, members and my Board colleagues for
shareholders and communities – in which their valuable inputs and insights during
Newcrest operates? the year. On behalf of my fellow directors,
I also thank and congratulate Sandeep
Newcrest is always seeking opportunities
and the leadership team for delivering
to add value to the business, while
another year of successful development
Lihir
OUR APPROACH
TO SUSTAINABILITY
6
IN CONVERSATION WITH OUR
SUSTAINABILITY LEADERS
Sandeep Biswas What are some of the proudest the Australia Awards programme is a great
moments from the last year for example of just one of these initiatives.
Newcrest Managing Newcrest? Through nursing and midwifery training
Director and Chief Our greatest priority is making sure our scholarships our business is helping to
Executive Officer people go home safe and healthy from work save the lives of mothers and babies in
every day. It is essential to our ongoing remote areas.
success and is an enduring focus for our During the year, we made progress in
business. We have finished another year completing sustainability actions under
with no fatalities or life-changing injuries. our commitment to our ICMM membership.
Our total recordable injury frequency rate We also contributed to the development of
(TRIFR) has reduced further over the year the World Gold Council (WGC) Responsible
and is now 2.3 per million hours worked. Gold Mining Principles, which were
This marks four consecutive years of released in September. Another highlight
TRIFR reduction and four years of being of the year was releasing our overarching
fatality-free. Sustainability Framework, setting us up for
Our continued commitment to Newcrest’s a longer-term approach to sustainability
Safety Transformation Plan underpins this across the business.
sustained improvement. During the year we I am proud of our people’s willingness to
continued to embed and renew the three change, to embrace new technology and
pillars of the plan: working to strengthen innovation, and to try new ways of doing
our safety culture, ensuring we have critical things. There is a huge appetite here at
controls in place for high-risk tasks, and Newcrest to be the best we can be, and our
applying robust process safety management. people bring a high level of commitment
We empower our people to make the best to the job every day. A key factor in being
decisions, to speak up, and to take the action our best is in embracing our differences.
they need to work safely. We are unwavering A practical example of this is our Diversity
in our long-term commitment to our Safety and Inclusion Strategy, which has helped
“We are unwavering Transformation Plan and can never become
complacent about safety.
us increase our representation of women,
Indigenous people, and local employees,
in our long-term Our business has the opportunity, and both in number and types of roles. In our
2019 annual employee Organisational
the responsibility, to make a significant
commitment difference to the lives of people in our local Health Survey we achieved top-quartile
communities. For example, in PNG we are health for the first time since we
to our Safety creating an impact on a national level through commenced our survey in 2014. This clearly
Transformation the contributions of Lihir and, potentially,
Wafi-Golpu. In addition to the significant
demonstrates our business is stronger and
greater diversity is playing its part.
Plan and can direct benefits that flow from our mining
and local workforce contributions, our PNG
How would you sum up Newcrest’s
approach to sustainability?
never become National Engagement Strategy supports
socio-economic development initiatives
Sustainability is about how our actions
complacent under five priority themes: women, youth,
can make our operations safer, our
decision-making more transparent, and our
health, administrative capability, and
about safety.” environment. Newcrest’s partnership with
communities increasingly resilient, while
managing and reducing our environmental
NEWCREST 2019 SUSTAINABILITY REPORT
impacts. In short, how we can make our Our strong relationships with our local A critical part of building these lasting
7
business better. communities cannot be taken for granted. relationships with our local communities
Our new targets include a target of Continuing to hear and act on what really is our ongoing investment in people and
IN CONVERSATION WITH OUR
matters to the people around our mines systems to support that collaboration.
SUSTAINABILITY LEADERS
30% reduction in greenhouse gas (GHG)
emissions intensity per tonne of ore remains a priority.
What would you say to your team at
treated by 2030 against the 2018 baseline, How is the industry changing and Newcrest about the sustainability
a shadow carbon price, and public support what is the impact and opportunity approach?
for the Task Force on Climate-related for Newcrest? The industry in which we operate presents us
Financial Disclosures (TCFD) framework. As ore bodies become deeper and more with unexpected challenges from time to time,
We have also issued new policies on scarce we need new skills and talent to use and this year has been no exception. It’s the
sustainability, climate change, biodiversity, technology to explore and mine. Developing way that we’re able to tackle those challenges
and water stewardship. The new policies new skills and diversity in the mining that sets us apart from other companies. It is
will be embedded into our assets and industry is an opportunity for us to make our key to our success as an organisation.
operational planning cycles, along with our business more sustainable for the future. I thank everyone at Newcrest for their
new metrics and targets.
We are also exploring renewable power continued efforts and achievements
The business imperative for introducing generation and other low-emission throughout the past year. Our people
these new targets and policies is simple. technologies to use energy more efficiently, exemplify high performance, integrity and
Sustainable outcomes drive positive with the aim of ultimately delivering honesty on a daily basis and I am consistently
operational outcomes. reductions in both emissions and cost. impressed with the innovative approach to
For me, sustainability is about doing Finding new ways to process ore more problem-solving at Newcrest. I thank the
the right thing. The right thing for our innovatively is another opportunity for Board of Directors for their support and
shareholders, our people, our communities, Newcrest and our sector. commitment to our sustainability objectives.
and our environment. Sustainability isn’t Across the industry we are seeing an We look forward to progressing these
an add-on to our operations; it is central to increased focus on transparency and the further and embracing our transformation
our operations. This year has been one of public sharing of corporate information. opportunities in the year ahead.
real progress in setting up our policies and Investors, governments, communities and
systems to better align with the ICMM 10 customers are seeking increased detail
Principles. That work continues and I expect about more aspects of our performance.
to see more progress over the next year. By openly sharing information – from
What do you see as the key how diverse our workforce is, to how we
sustainability challenges for Newcrest? manage tailings dams, to what our target
One key sustainability challenge is our is for emissions reduction – we have the
approach to energy supply and emissions opportunity to build increased trust with
SANDEEP BISWAS
reduction. Mining is an energy-intensive our communities. Strengthening and NEWCREST MANAGING DIRECTOR
business. Being more innovative in the way maintaining that trust over the long term is AND CHIEF EXECUTIVE OFFICER
we mine can reduce the amount of energy key to building a sustainable, resilient and
we use and also reduce our emissions profitable business.
footprint. Like many companies, we can also What lies ahead for Newcrest?
look at the sources of our energy supply and As we pursue our aspirations we are
opportunities to use more renewable energy. strengthening our commitment to building
For example, at Cadia, we are in the initial sustainable futures for the communities
stages of planning for a small solar power in which we operate.
trial. We are also looking at gas and further
Our engagement and community
geothermal power opportunities at Lihir. Our
development work aims to better enable
new asset, Red Chris, is predominantly run on
our local communities to meet their
hydro power. So over time, increasing our use
own long-term needs and aspirations.
of renewable energy is a priority.
Collaborative relationships are essential,
Tailings management is also a key issue for and we are working openly with our local
us and the communities in which we operate. communities and governments.
Newcrest is a working group member of the
ICMM Tailings Review and, together with
other industry leaders, we are committed
to the ICMM approach to the governance
of tailings storage facilities.
0
FATALITIES
2.3 30%
TRIFR PER MILLION REDUCTION IN GHG EMISSIONS
HOURS WORKED INTENSITY PER TONNE OF ORE
TREATED BY 2030
OUR APPROACH
TO SUSTAINABILITY
Our sustainability
OUR APPROACH
8
vision and approach
VISION AND APPROACH
OUR SUSTAINABILITY
“Sustainable mining Sustainability
OUR RESPONSIBILITY
means engaging New objectives,
metrics and targets
vision
and respecting
Target of 30% 2020 Sustainability is integral to our Forging
local communities, reduction in GHG a Stronger Newcrest strategy. The
assessing and emissions intensity
by 2030 from 2018
Safety and Sustainability pillar of our
strategy demonstrates that Newcrest
managing safety, social baseline per tonne
of ore treated prioritises and integrates sustainability
and environmental in our decision-making.
impacts, and In late 2017, Newcrest’s admission
Sustainability
making ethical and Framework into the ICMM outlined the need for full
transparent strategic and policies alignment with the ICMM 10 Principles
2019 and position statements. Through our
business decisions. Climate change
Support TCFD membership, we have continued to
This approach delivers Water build on our sustainability foundations.
Biodiversity In addition, as members of the WGC,
safe and profitable we support the Responsible Gold
operations.” Mining Principles outlined on page 63.
In 2018, we developed a sustainability
Sustainability action plan, which included articulating
action plan
2018 our sustainability vision and
Climate Change reviewing our objectives, as well as
Statement strengthening our alignment with
the ICMM 10 Principles. In FY19,
we took the next step, developing a
sustainability framework comprising our
SANDEEP BISWAS Board-endorsed Sustainability Policy,
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER supported by a set of objectives, metrics
bjectives and industry
O
memberships and targets for FY20, to measure and
2017 monitor our progress.
ICMM, WGC and
MCA memberships
We aspire to be an industry leader, a company that…
Strives to ensure everybody goes home safe Cares for the environment and
and healthy every day responds to our climate
Listens, develops, maintains strong community Acts ethically
and stakeholder relationships and transparentlyNEWCREST 2019 SUSTAINABILITY REPORT
Formalising our Newcrest recognises that having a policy
which clearly articulates our commitments
9
approach on sustainability and is aligned to our
industry principles, is critical to achieving
VISION AND APPROACH
our aspiration of being a leader in
OUR SUSTAINABILITY
sustainable mining.
Newcrest Newcrest aspires to be the Miner of Choice for our
stakeholders. Our sustainability vision focuses on four
Sustainability key areas: everybody going home safe and healthy
Policy every day, caring for the environment, developing and
maintaining strong relationships with our communities
and governments, and acting ethically and transparently.
To achieve this, we will strive to:
–– create a work environment where everyone can go home safe and healthy every day and where
everyone actively contributes to this outcome;
–– create a diverse and inclusive environment where everyone feels safe, valued and supported to bring
their whole unique self to work;
–– build a workforce that represents the communities in which we operate, and attract and retain the
right people;
–– establish processes to identify and manage risks and opportunities for efficient use of energy and
water, to manage emissions linked with climate change and reduce or prevent waste generation;
–– contribute to the conservation of biodiversity by implementing integrated approaches to land use
planning and environmental management in areas affected by our operations;
–– deliver sustainable and long-term benefits in a manner that supports and respects the rights and
aspirations of the communities in which we operate;
–– respect and strive to protect the human rights of our host community members in all our own dealings
with them, and seek honest and open relationships built on mutual trust;
–– honour the cultural heritage, customs and traditions of all Indigenous peoples touched by our
activities and build cultural awareness across all of our operations;
–– build relationships with our suppliers to optimise value through safe, efficient, continuous
improvement and innovation;
–– engage openly, honestly and regularly with our host governments and people affected by our
operations and consider their views in our decision-making;
–– uphold ethical business practices and comply with all legal requirements in all jurisdictions where we
operate; and
–– monitor, measure, report and assure our sustainability performance against public objectives and
targets on a regular basis.
We will apply our Risk Management Framework to manage our sustainability risks. By delivering on these
commitments, we will maintain and enhance our licence to operate as we strive to become an industry
leader in sustainable mining. This policy is to be read in conjunction with all other Newcrest policies
available on our website.
All Newcrest employees, contractors and suppliers are required to comply with these commitments.OUR APPROACH
TO SUSTAINABILITY
10
Our Objective
Zero fatalities and life-changing injuries
Status
See page 17
progress 10% annual reduction in TRIFR See page 17. TRIFR decreased from 2.4
per million hours worked to 2.3 (3%)(1),
in FY19
which did not meet target. As our TRIFR
OUR PROGRESS
performance improves, this annual target
becomes more challenging each year.
IN FY 19
Year-on-year improvement in local workforce See page 48
participation and increase in female
In FY19 we improved our sustainability representation in line with set targets
performance as well as our operational
Further improve our Organisational Health See page 15
and financial performance, whilst also to top quartile
growing the business.
Implement environmental database See page 27
We increased our focus on improving tool (EQuIS) at at least three operations
our sustainability reporting systems, to support water and environmental
data reporting
in particular data collection and
verification processes across Develop a Climate Change Policy and See page 21
our business. This supports our associated greenhouse gas emissions
reporting against the GRI sustainability reduction targets
and mining industry-specific indicators. 100% of security employees and See page 46
contractors trained in the Security Code
In FY20 Newcrest will continue of Conduct
to work towards an evolved set of
sustainability objectives, in line with All sites to implement a standardised See page 47
community grievance management system
our Sustainability Policy and our that includes close-out reporting of grievances
commitments to ICMM, the WGC
Responsible Gold Mining Principles Social performance and human rights See page 44
and the GRI. Our FY19 objectives reviews to be conducted annually for all sites
and progress tracking are set out to Implementation of a Social Performance See page 37
the right. management system at Australian
operations and Corporate headquarters
All sites to have cultural heritage In progress – see page 47. Telfer’s is
management systems in place achieved. Lihir and Gosowong are yet
and functioning to implement their systems. Cadia’s is
being refined.
(1) % represents rounding from two decimal places. – Met – Not met
Our targets to the end of FY20
Safety Environment Climate People Community
Safety Water GHG emissions Diversity and Community
Zero fatalities or Catchment-based 30% reduction in GHG inclusion Group community
life-changing injuries risk assessments emissions intensity per Increase % females expenditure
and a further reduction and updated tonne of ore treated and nationals in contributions ≥1% of
in injury rates water balances by 2030 against the the workforce and Group total revenue
(where required) 2018 baseline. Deliver leadership roles
Climate Change Policy
implementation plan
Health Biodiversity Reporting Anti-bribery and Stakeholder
Occupational exposure Review operations’ Phased introduction corruption risk engagement
control plans at each biodiversity risks and of TCFD reporting Identify high-risk Stakeholder engage-
operation for top update management roles; 85% training ment plans, cultural
three exposures plans into ICMM- compliance; seek heritage management
aligned Biodiversity high-risk supplier plans and digital
Action Plans compliance grievance management
system in place at
operationsNEWCREST 2019 SUSTAINABILITY REPORT
What matters most 11
– our material topics
WHAT MATTERS
MOST
Each year, in the production This process helps us to identify The FY19 material sustainability
current and emerging material topics rated as ‘high’ according to
of our Sustainability Report, sustainability topics and to ensure we the materiality process are listed
we undertake a materiality focus our performance information below. In line with the GRI reporting
on the appropriate GRI aspects in our approach, we have elected to focus
assessment to determine the
Sustainability Report. The assessment our report on the corresponding GRI
information and performance ranks the topics according to their aspects rated as high. Although not
measures that matter most priority to both our stakeholders and rated as high, we have also included
Newcrest. Further detail about our updates on our performance relating
to both our key stakeholders materiality process is provided in the to water stewardship, biodiversity,
and our business. Appendix on page 62. land management and waste rock.
1 2 3
Improving safety and health Our climate change response Growing our business
aintaining our commitment to
M anaging Newcrest’s approach
M riving growth through expansion
D
providing a safe and healthy workplace to climate change mitigation and of operational sites and exploration
for employees and contractors through adaptation, and the implications for activities, including our approach
effective systems, culture and secure our operations, including physical to water stewardship.
operations. Managing health impacts risks from climate change as well
from malaria, mental health, pandemic as transitional and market risks.
and epidemic risks, diesel particulate
matter (DPM) and other air pollutants.
4 5 6
Managing mine closure Working with our communities Respecting human rights
anaging the environmental and
M aintaining our social licence to
M anaging and protecting the human
M
social considerations of mine closure, operate by managing community rights of Newcrest’s workers, local
including land management and expectations and relations, delivering communities and other stakeholders.
biodiversity. on mutually beneficial agreements,
and investing in the development
of the local communities in which
Newcrest operates.
7 8 9
Managing our waste Ethical and transparent behaviour Financial sustainability
anaging the hazardous and
M elivering on Newcrest’s commitment
D and local economies
non-hazardous waste materials to high-quality governance, anaging our financial performance,
M
generated through Newcrest’s mining transparency and ethical business productivity and economic
operations, including waste rock. practices across the organisation. sustainability.OUR APPROACH
TO SUSTAINABILITY
12
Our
performance overview –
OUR PERFORMANCE
highlights and challenges
OVERVIEW
1. Improving safety and health 2. Our climate change response 3. Growing our business
Agreement to acquire
0 Fatalities
and life-changing
injuries
New policy statement
70% 70% JV interest in
Red Chris
↑ Commitment to
2.3 TRIFR per million
hours worked TCFD phased introduction
of TCFD reporting
Havieron farm-in
agreement
TRIFR 10% year-on-year reduction Target of 30% reduction in GHG Wafi-Golpu not progressed due
target not met emissions intensity per tonne of ore to delays in obtaining a Special
treated by 2030 against a 2018 baseline Mining Lease
4. Managing mine closure 5. Working with our communities 6. Respecting human rights
Operations’ closure Electronic community Human rights reviews of
(rehabilitation) grievance management operations completed
plans in place (1) system in place by Group team
at operations
Australian
↑
22.4%
Externally audited
ü$ 68.8% Local goods female
provisions for mine representation
and suppliers
rehabilitation at management
level
Strengthening social closure practice Dust complaints at Cadia from Australian Indigenous management
nearby residents representation still low
7. Managing our waste 8. Ethical and transparent behaviour 9. Financial sustainability
and local economies
Anti-bribery and
Tailings Management
Framework developed 99% corruption training
completed on 99% (2)
$561m
Statutory
profit
of high-risk roles
Published expert Completed anti-
TOP
review report on
Cadia’s tailings facility
200
bribery and corruption
risk review of top
200 suppliers
$55m Community
expenditure (3)
Implementation of expert review Managing varying risks Change in community
report recommendations on across jurisdictions expenditure regulations created
Cadia’s tailings facilities tension around Gosowong
(1) Gosowong and Cadia plans updated in FY20.
(2) Residual 1% relates to trainee absences/unavailability.
(3) Community expenditure includes total costs of our community programmes. Our forward target is community expenditure of ≥1% of total Group revenue.NEWCREST 2019 SUSTAINABILITY REPORT
Our Newcrest is a culturally
diverse company operating
13
stakeholders across many countries
and sites.
OUR STAKEHOLDERS
Newcrest’s diverse range of stakeholders The objective is both to keep stakeholders
OUR STAKEHOLDERS
Employees & reflects that we operate across many informed and to collaboratively explore,
contractors countries and collaborate with a range of record and respond to our stakeholders’ issues
partners. Our methods of engaging our and concerns. We respect that stakeholders
Shareholders Communities stakeholders are tailored to suit their needs. have different opinions and expectations of
Newcrest’s approach is to responsively our business, and we aim to achieve outcomes
build and maintain open and constructive through creating genuine understanding.
Government Suppliers
& regulators relationships by understanding and respecting
We work closely with our employees,
feedback and others’ points of view.
local communities, governments and
Customers Specific Newcrest teams and roles are regulators, investors, business partners
accountable for developing and managing and the broader mining industry. We also
particular stakeholder relationships; and engage with non-government organisations,
both formal and informal methods are education and research bodies, the media
employed, depending on the nature of the and general public.
relationship and communication context.
In addition to our regular local
Details regarding the engagement methods
communications and outreach with our
we use with each stakeholder group are
stakeholders, we publicly disclose our
provided in the Appendix on page 64.
performance and aspirations through
Newcrest’s corporate reporting process.
Stakeholder Engagement activities
Employees and contractors Employee briefings, intranet, social media, email, newsletters, social events, notice boards,
departmental site and toolbox meetings, performance reviews, site general manager town
hall meetings, direct engagement between people leaders and their teams, and annual
Organisational Health Survey participation.
Shareholders and investors Annual reports, quarterly production reports, half-yearly financial reporting, website,
email, investor briefings, one-one-one discussions, investor days, conference calls, market
announcements, annual general meeting, industry conferences, and social media.
Local communities Community Relations team visits, resident and community meetings, site visits,
communication and feedback forums with leaders and communities, complaints and grievance
mechanisms, sponsorships and partnerships, collaborative agreements, media engagement
on local initiatives, community newsletters, factsheets, websites and social media.
Government and regulators Face-to-face meetings, regular briefings, and direct engagement.
Suppliers Collaborative guidelines, out-to-market approaches, face-to-face discussions, performance
meetings, and contractual agreements.
Customers Market tenders, meetings, reports, face-to-face discussions and site visits.OUR APPROACH
TO SUSTAINABILITY
14 Our This aligns with Newcrest’s strategy and Finally, ManagingMatters helps our people
business transformation aspirations, leaders acquire targeted management
people including our culture change objectives. skills, such as delegation, giving and
We are working closely with all teams across receiving feedback, and coaching others.
Newcrest to build an increasingly diverse In FY19, more than 1,400 supervisor-level
OUR STAKEHOLDERS
Our first and greatest responsibility
and inclusive business. employees attended ManagingMatters
is ensuring that our people go home
across all our sites.
safe and healthy from work every day. To ensure we attract and retain the right
The wellbeing and capability of our people, our hiring decisions and promotions At Lihir, the LeadingMatters and
employees are fundamental to Newcrest’s are merit-based and align with our ManagingMatters programmes were
business success. responsibility to have a workforce that integrated with NewSafe, our safety
best represents the communities in which culture programme, and Management
Our long-term commitment to
we operate, while delivering on business Operating System (MOS) training to form
safety continues through our Safety
requirements. the locally titled ‘Trupla Lida’ programme,
Transformation Plan and, in particular,
attended by more than 700 supervisors,
through the strengthening of our We offer our high-potential employees a
superintendents and managers. Lihir
safety culture via NewSafe. In FY19, robust mentoring programme, prioritise
managers and superintendents helped lead
a second level of NewSafe, ‘NextGen’, them for leadership development
the sessions for supervisors, providing
was delivered throughout Newcrest as programmes, and provide relevant
an excellent example of the ‘leader as
described on page 18. leadership experiences. Further detail and
teacher’ approach.
workforce data on our efforts to improve
In conducting our business, including liaising
diversity and inclusion are on page 48, in the
with external stakeholders, our employees
context of human rights.
comply with relevant laws, regulations and
Newcrest policies, and our senior leaders Developing strength and expertise
are informed when significant stakeholder
In FY19, Newcrest continued to use
concerns arise.
three distinct programmes to develop
The local communities in which we the leadership and management skills
work comprise Newcrest’s employees, of our people.
contractors, suppliers and their families.
The aim of TransformationMatters is to
It is at the local level that we can have the
create connection among leaders from
greatest impacts. Details of how we work
across our business in order to foster
with our communities are provided on
a collaborative approach to leading
page 36.
Newcrest. TransformationMatters
The importance of diversity involves periodic workshops delivered to
the Transformation Leadership Team (TLT).
Our approach to diversity and inclusion is an
The TLT includes the Executive Committee
essential component of our People pillar. It
and approximately 22 leaders from across
is a fundamental part of our vision, values
the company whose combined portfolio
and culture.
significantly impacts the performance
To help create a workplace where everyone of the business. The programme has
feels comfortable bringing their ‘whole unique also been run for leadership teams and
self’ to work, we have a dedicated diversity superintendents at Cadia, Lihir and Telfer.
and inclusion strategy and a supporting policy.
LeadingMatters is focused on building
We know having a diverse and inclusive work
leaders’ self-awareness and personal
environment goes beyond gender – diversity is
development to foster values-based
not just about employing females and setting
leadership and grow high-performing teams.
gender targets – it is about having a culture
More than 400 of our leaders, including
that values and respects people’s differences,
members of our Executive Committee, have
as well as supporting one another to achieve
participated in LeadingMatters since it
great things, together.
launched in 2018.
LihirNEWCREST 2019 SUSTAINABILITY REPORT
Speak Out Organisational Health To sustain our top-quartile performance
15
Speaking up about concerns is a critical In FY19, we continued to measure in the coming year, Newcrest will focus on
element of both safety and ethical Newcrest’s Organisational Health through the practices of establishing an open and
behaviour. The Speak Out service, which our annual survey, enabling us to benchmark trusting environment, involving employees,
has been a global service at Newcrest since the business against other organisations. and enhancing our talent development
OUR STAKEHOLDERS
2011, is a confidential and anonymous The survey measures employees’ views of efforts. In addition, we will ensure we
way for all current or former Newcrest management systems and the practices continue to engage all employees, especially
employees, officers, contractors, we employ. In the fifth year of the survey, those working in front-line roles.
consultants, suppliers or relatives of those we increased two points to 73, from 71
people, to report misconduct, anything in FY18, achieving our aspiration to be
believed to be illegal or unethical, safety a top-quartile company in relation to
Average training hours per year by
issues, or breaches of our Code of Conduct, organisational health. employee category (company-wide)
through an independent third party.
Newcrest has identified seven management
Australian laws which came into effect on practices as our priority for improvement. Senior Executive 12.95
1 July 2019 further protect people who During 2019, we achieved top quartile
speak out about misconduct in companies measures for three of those priority General Manager 19.93
such as ours. To support these laws, we practices – operational discipline, personal
updated our global Speak Out Policy, which ownership, and bottom-up innovation. All Manager 40.22
applies to all our operations and activities. 37 practices measured within the survey
An updated Speak Out Standard and new were above second quartile level. Supervisor 36.92
Speak Out Procedure guides people through
the process. Operator 49.19OUR APPROACH
TO SUSTAINABILITY
16
Our Public affairs and social performance
are standing agenda items at all
leadership regular board meetings.
OUR LEADERSHIP
Sustainable development considerations The scope includes our annual the Code of Conduct, the Director
are integrated into Newcrest’s decision- sustainability reporting process. Independence Policy, the Director
making processes, and the Newcrest Conflicts of Interests Policy, the
Our Sustainability Policy was introduced
Board is ultimately accountable for Anti-Bribery and Corruption Policy, the
in June 2019 and supports the
ensuring we execute our sustainability Market Disclosure Policy, the Market
obligations of the Executive Committee
approach. Public affairs and social Releases and Investor Relations Policy,
to exercise due diligence in decisions
performance are standing agenda the Media and External Communications
relating to sustainability risks and to
items at all regular Board meetings. Policy, and the Securities Dealing Policy.
disclose such risks to the Safety and
The Safety and Sustainability Sustainability Committee. Newcrest’s All relevant employees undertake
Committee considers sustainable Communities Policy, Environmental regular training to ensure they
development matters and assists Policy, and Safety and Health Policy also understand their obligations under
the Board by overseeing, monitoring enhance the sustainable development Newcrest’s Code of Conduct. Some
and reviewing Newcrest’s practices of our operations and are supported by employees undertake training in relation
and governance in sustainability, performance standards. to other policies referred to above.
environment, safety, occupational Training on our new sustainability
In addition, Newcrest has a range of
health, and social performance, including policies will be rolled out in FY20.
policies supporting ethical business
the human rights and security of
principles and practices. These include
communities, employees and operations.
Board
Safety and Sustainability Committee
ROGER HIGGINS PHILIP AIKEN AM PETER TOMSETT
Independent Independent Independent
Non‑Executive Director, Non‑Executive Director Non‑Executive Director
Chairman, Safety and
Sustainability Committee
Board
of Directors
PETER HAY GERARD BOND XIAOLING LIU VICKKI MCFADDEN
Independent Non-Executive Finance Director and Independent Non-Executive Independent Non-Executive
Chairman Chief Financial Officer Director Director
SANDEEP BISWAS PHILIP AIKEN AM ROGER HIGGINS PETER TOMSETT
Managing Director and Independent Non-Executive Independent Non-Executive Independent Non-Executive
Chief Executive Officer Director Director DirectorNEWCREST 2019 SUSTAINABILITY REPORT
Our 17
material topics
1. IMPROVING SAFETY
AND HEALTH
1
Improving
safety and health
Material Performance The industry average for TRIFR for ICMM
member companies was 3.4 per million
sustainability topic in FY19 hours worked. While Newcrest’s reduction
in TRIFR in FY19 was a pleasing result, we
We believe that a strong and enduring Consistent with our safety vision, did not meet our target of a 10% decrease
commitment to the health and safety of our objectives and key performance year-on-year. As our TRIFR performance
our workforce best reflects our values and measures under safety are zero fatalities improves, this annual target becomes more
underpins and sustains optimal business and life-changing injuries and a 10% challenging. As such we have reviewed
performance. This includes mitigating year-on-year reduction in our TRIFR. our safety target setting as part of our
potential occupational health risks Our zero fatality and life-changing new sustainability objectives and metrics.
and impacts. injury target was achieved in FY19 Into FY20 and beyond our safety target is
and, along with further reduction in now a year-on-year improvement in TRIFR,
our lost time injury frequency rate with zero fatalities or life-changing injuries.
(LTIFR) from 0.5 to 0.4 per million hours
Our worked, our TRIFR decreased from
approach 2.4 per million hours worked to 2.3 (3%)(1).
Caring about people is one of our values,
ultimately contributing to a culture where
health and safety are at the forefront of
everything we do. The most important
Newcrest TRIFR FY17–FY19 per million hours worked (#)(2)
measure of our success is that we create
a work environment where everyone can
go home safe and healthy every day and FY19 2.3
where everyone can actively contribute FY18 2.4
to this outcome.
FY17 3.3
Our Safety Transformation Plan continues
to direct our efforts and deliver results.
This is supported by the broader Forging
a Stronger Newcrest strategy and our Newcrest LTIFR FY17–FY19 per million hours worked (#)(2)
alignment with ICMM Principle 5 – Pursue
continual improvement in health and safety
FY19 0.4
performance with the ultimate goal of
zero harm. FY18 0.5
FY17 0.6
FY 2016
FY 2015
FY 2014
(1) % represents rounding from two decimal places.
(2) In line with ICMM guidelines, the calculation of company-wide TRIFR and LTIFR only includes
operational sites and joint ventures in which Newcrest has a controlling interest.OUR APPROACH
TO SUSTAINABILITY
18 Our Safety Our Safety Transformation Plan
Transformation Plan focuses on three key pillars to
achieve our safety vision of
1. IMPROVING SAFETY
‘everybody going home safe
and healthy every day’.
AND HEALTH
Safety is strongest when the three
KEY PILLARS
elements of culture, controls and systems A stronger safety culture
are aligned. Our safety culture, behaviours through NewSafe;
and actions are led by NewSafe. Our Critical
Control Management programme puts in Critical Control
place the review, approval and verification Management; and
steps for high-risk tasks. Process Safety
Management targets wider system risks, Robust Process Safety
such as operating plant designs and Management.
chemical and energy hazards.
NewSafe
NEWSAFE
Newcrest initiated the NewSafe safety
culture change programme in 2015 and has
deployed it to all sites.
To ensure that it continues to be effective
3 1
and relevant, during FY19 we developed
NewSafe NewSafe
a follow-on programme to NewSafe
Coaching Behaviours
called ‘NextGen’.
NewSafe NextGen builds on the material
covered in the original NewSafe Leadership 2
course and incorporates feedback, NewSafe
information and data gathered since it was Leadership
initially launched. NextGen reinforces key
messages relating to safety leadership and
continues to encourage people to identify
and speak up when unsafe behaviours
and conditions are encountered. To date,
approximately 90% of our workforce have
attended NewSafe NextGen sessions.
Critical Control Management (CCM)
CRITICAL CONTROL MANAGEMENT
Since its inception in 2016, we have EGMs
completed more than 6,000 System GMs
Verifications and 700,000 Field Critical
Department System 1,657
Control Checks under the CCM programme. FY19
Managers Verification
During FY19 the programme continued Verify the
to be strong in terms of verifications and management system
business application at all levels. New tools
enabled improved reporting and analytical Supervisors
and above Field 302k
capability for the CCM data. We continue
Critical Control Checks FY19
to see an improvement in the percentage Verify controls are effective in the field
of CCM verifications conducted using our
mobile device app. In FY19 we conducted Frontline
over 1,650 System Verifications and operators
Operator Integrated
300,000 Field Critical Control Checks Critical Control Checks with existing
as well as our front-line Operator Critical Verify controls are in place prior to and during work systems
Control Checks which are integrated into
existing systems.NEWCREST 2019 SUSTAINABILITY REPORT
19
1. IMPROVING SAFETY
AND HEALTH
Health and hygiene
PROCESS SAFETY MANAGEMENT
The third pillar of our Safety Transformation gases. This information assists with repairs
Plan, robust Process Safety Management, Some of the key health and hygiene issues and also allows the site ventilation teams
aims to systematically and comprehensively for Newcrest are: to better design ventilation systems
manage the integrity and containment of throughout the mine to control workforce
–– fatigue;
high-energy and toxic processes to protect exposures to DPM.
our people and the environment. To provide –– monitoring and controlling potential
exposures, most specifically to DPM and During the reporting period, Telfer and
further focus and direction, Newcrest
respirable dust; and Cadia worked with occupational physicians
sourced additional resources during FY19
to review and update health surveillance
with an immediate priority to address the –– mental and physical health and wellbeing.
programmes to better monitor workers for
findings of process safety audits conducted
We continue to implement and improve potential health effects from workplace
across its operations.
programmes to monitor, maintain exposures. Cadia partnered with Insurance
All three pillars of our Safety and improve the health of our people and Care NSW (iCare) to deliver health
Transformation Plan are supported by a throughout the business. Programmes surveillance for the workforce, which
foundation of the right systems and tools. look at occupational health risks, as well includes onsite screening using the ‘iCare
In FY19, some key activities included: as lifestyle health risks. Lung Bus’. This was followed up with
–– The second round of audits at all sites additional screening with specialist medical
Fatigue personnel for anyone identified during
of the Newcrest Health Safety and
Environment Management System To reduce the risk of fatigue-related the initial screening as requiring more
(HSEMS), Health and Hygiene Standards workplace incidents, operational sites comprehensive health surveillance.
and Environment Standards. use fatigue management plans. These
Telfer implemented a respiratory
focus on areas that may cause workplace
–– A comprehensive review of the existing protection programme, which involved
fatigue such as work design, including shift
Major Hazard Standards, with a focus health surveillance checks of any personnel
rostering and camp facilities, as well as
to improve and better align with CCM required to wear respiratory protective
factors related to lifestyle and health.
content. An update of the standards is equipment. The process included:
planned to be released in FY20. We have developed a Company-wide Fatigue –– fit testing to ensure the respiratory
–– The streamlining of the Newcrest Management Standard that provides protective equipment fitted correctly;
Management of Change system to consistent minimum standards to mitigate
–– and enforcing the requirement for
improve functionality and efficiency at fatigue risks across the organisation. In
workers using respiratory protective
all levels of the business and functions. FY19, we developed and delivered fatigue
equipment to be clean shaven.
management training across the business,
with training materials translated into During the year Lihir, Cadia and Telfer all
Indonesian, Tok Pisin (PNG) and Spanish, as completed surveys to identify noise exposure
well as including site-specific information risks and develop risk control plans. Gosowong
such as managing fatigue during Ramadan is scheduled to complete a survey in FY20.
for our teams in Indonesia.
Physical and mental health
Potential exposures All sites are working to improve their
Reducing workplace exposures continues wellbeing programmes with a strong
to be a key part of our health and hygiene focus on mental wellness. The Melbourne
programme with all sites undertaking office delivered a series of mental
activities to identify and reduce exposures. health first-aid training courses in FY19
Gosowong purchased DPM emissions to ensure that the office is suitably
monitoring equipment to supplement the resourced with personnel who can
existing exhaust gas testing equipment respond to both physical and psychosocial
used onsite. This equipment allows the health issues within the workplace.
site maintenance team to undertake
Several of our sites implemented wellbeing
comprehensive emissions testing of onsite
programmes designed to help employees
diesel-powered vehicles to identify when
and contractors to maintain and improve
a vehicle is running poorly and generating
their physical and mental health.
higher levels of DPM or hazardous exhaustOUR APPROACH
TO SUSTAINABILITY
Speaking up for safety Safety projects are
INSIGHTS
20
Safety remains front and centre of everything we
do as we strive to remain free of fatalities and
hotting up
Our Lihir operation is located on an island in a volcanic
1. IMPROVING SAFETY
life‑changing injuries and continue to reduce our
recordable injury rate. caldera which retains remnant heat within its rock.
AND HEALTH
In the open pit, rock temperatures can reach up to
In FY19, we continued the rollout of our Safety 150 degrees Celsius. The presence of the geothermal
Transformation Plan, with NewSafe NextGen building conditions presents a unique challenge to our teams
on the strengths of previous NewSafe training. to maintain safe and efficient operations.
NewSafe NextGen focuses on courage and addressing Lihir’s historic open pit mining practices require our
fear, creating a culture where we foster courage among drill and blast personnel to work in conditions where
our workforce and eliminate the fear of speaking up. geothermal factors and elevated temperatures pose
It also introduces tools to help people make the safest two potential risks:
decisions, reinforcing our message that everyone is a
–– geyser events – where steam and water is ejected
safety leader.
from drilled holes; and
During FY19, we held NewSafe NextGen workshops at –– geothermal outbursts – where trapped pockets
all sites and the Melbourne office, with 4,500 employees of steam can vent through the rock.
and permanent contractors completing training by
May 2019. An innovative programme of engineering works,
‘Safe Mining to 150 degrees Celsius’ is underway
Our safety transformation work is reaping rewards with to enable us to safely mine in areas of higher
Pulse Check surveys recording improvements at sites. temperatures.
For example, the 2019 Pulse Check at Cadia found
consistent, gradual improvement in site-wide results for The programme covers each component of the open
supervisors’ safety leadership during the past three years. pit mining system with innovative mechanised and
robotic solutions:
Our long-term commitment to our Safety
–– ‘Nil on foot’ aims to keep our operators safe by
Transformation plan will continue in FY20.
developing and implementing robotic technology
that lets personnel undertake their work from the
safety of a vehicle. This requires prototyping and
deploying robotic solutions for hole temperature
and depth measurement, high explosive assembly
loading, emulsion product loading and blasthole
geology sampling.
–– ‘Nil on bench’ targets the removal of our operators
from the pit floor to protect them from geothermal
outbursts. Current projects include the deployment
of tele-remote technology on dozers, shovels and
blasthole drilling rigs.
We continue to work closely with key technology
providers to rapidly build Newcrest’s capability to
mine safely at rock temperatures of up to 150 degrees
Celsius. This new capability may help offset the extent
to which artificial pit cooling is required and may support
the continued geothermal power programme at Lihir.
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