2020 Sustainability Report
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Unity in Adversity 2020 Sustainability Report
OUR MISSION
Cautionary Note Regarding Forward-Looking Statements
This report contains “forward-looking statements” within the meaning of the United States
private securities litigation reform act of 1995 and “forward-looking information” within the
meaning of applicable Canadian securities legislation. Such forward-looking statements
and information herein include but are not limited to statements regarding future
We find, build, and operate quality silver mines in a sustainable
prospects of the El Cubo and El Pinguico projects and future acquisitions or dispositions
of VanGold Shares. The Company does not intend to and does not assume any obligation
to update such forward-looking statements or information, other than as required by
way to create value for our stakeholders. By continually applicable law.
improving what we do and how we do it, we aim to make a Forward-looking statements or information involve known and unknown risks,
uncertainties and other factors that may cause the actual results, level of activity,
positive difference in peoples’ lives. In addition to maximizing the production levels, performance or achievements to be materially different from those
expressed or implied by such statements. Such factors include but are not limited to
potential of existing operations, we have a compelling pipeline
the ultimate impact of the COVID 19 pandemic on operations and results, changes in
production and costs guidance, national and local governments, legislation, taxation,
of exploration and development projects to facilitate our goal of
controls, regulations and political or economic developments in Canada and Mexico;
financial risks due to precious metals prices, operating or technical difficulties in mineral
exploration, development and mining activities; risks and hazards of mineral exploration,
becoming a premier senior silver producer. development and mining; the speculative nature of mineral exploration and development
and risks in obtaining necessary licenses and permits,
Forward-looking statements are based on assumptions management believes to be
reasonable, including but not limited to: the continued exploration and mining operations,
no material adverse change in the market price of commodities, mining operations will
operate and the mining products will be completed in accordance with management’s
expectations and achieve their stated production outcomes, and such other assumptions
and factors as set out herein. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those contained in forward-
looking statements or information, there may be other factors that cause results to be
materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements or information will prove
to be accurate as actual results and future events could differ materially from those
anticipated in such statements or information. Accordingly, readers should not place
undue reliance on forward-looking statements or information.
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ABOUT THIS REPORT TABLE OF CONTENTS
CONTENT & SCOPE REPORTING FRAMEWORKS We at Endeavour Silver strive to create social, environmental and economic value for
all our stakeholders. This report highlights our progress in 2020.
Our 2020 Sustainability Report presents our commitments, 2020 marks our eighth consecutive year of sustainability
goals and performance of last year related to the reporting using the Global Reporting Initiative as our reporting Annual Review Performance by Pillar This PDF contains interactive elements. Click
on page numbers in the table of contents to
sustainability topics that matter most to our stakeholders. framework. This report has been prepared in accordance with move around the report.
06 Message from the CEO 25 Safety & Health At any time you can return to this page using
the GRI Standards: Core option. New this year, we have also the menu icon in the footer.
Our material topics shape the content of the report. We chosen to link our disclosures to Sustainability Accounting 08 Our Value Chain 33 Our People
view material topics as the impacts our business has on Standards Board (SASB). 10 About Endeavour 41 Community
the environment, the economy and society; and those that
are important to the stakeholders who make decisions We place a high priority on the quality control of our 49 Environment
or assessments regarding our significant economic, management and data collection systems to accurately Sustainability Report 59 Economic Value
environmental and social impacts. benchmark and report our sustainability performance. To
ensure accuracy and adequate coverage of material topics, 15 Our Sustainability Framework
This report encompasses: Appendices available
this report was prepared by management with the assistance 16 Our Material Topics on the website
of independent sustainability consultants, and included
• Three producing precious metal mines – the Guanaceví 17 Supporting the SDGs
an extensive review process by various departments and
mine in the state of Durango, the Bolañitos mine in the Performance Data Tables &
Endeavour’s Board. 18 Sustainability Scorecard
state of Guanajuato, and the El Compas mine in the state of GRI/SASB Index
Zacatecas 20 Corporate Governance
Tailings Disclosure Table
• Exploration office in the state of Durango Reporting Period Jan. 1–Dec. 31, 2020 (fiscal year) Mineral Resources and Reserves
• Administrative office in Leon, Mexico Reporting Cycle Annual
Date of Last Report Published May 2021
• Head office in Vancouver, Canada
Reporting Framework Global Reporting Initiative
• In addition, we report relevant disclosures for the Terronera
(GRI Standards & Metals
development project (located in Jalisco, Mexico) and a
Sector Disclosures)
narrative of the exploration projects. Throughout this
document, “Endeavour”, “we”, “our” and “us” refers to In Accordance Option (GRI) Core
Endeavour Silver and its major subsidiaries. All monetary
amounts are reported in U.S. dollars, unless otherwise noted.
WE WELCOME YOUR FEEDBACK
COMPANION DOCUMENTS
Please email Galina Meleger, Director of Investor
Relations at gmeleger@edrsilver.com.
This publication is part of our sustainability reporting suite. For
more information and data, please read:
• Performance Data Tables and Global Reporting Initiative
(GRI)/SASB Index
*The company reports non-IFRS measures which include cash costs net of
gold credits on a payable silver basis, total production costs per ounce, all-in
• Tailings Disclosure Table
sustaining costs per ounce and direct production costs per tonne, in order to
• 2020 Sustainability Summary manage and evaluate operating performance at each of the company’s mines.
These measures, some established by industry organizations, are widely used
Sustainability reports from previous years are available online in the silver mining industry as a benchmark for performance, but do not have
a standardized meaning. These measures are reported on and reconciled in
at: csr.edrsilver.com. For a complete picture of our business
the Company’s MD&A.
activities, this report should be read in conjunction with our *Silver equivalent ounces calculated using 80 :1 ratio
Annual Information Form, Management’s Discussion and
Analysis, and Financial Statements.
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MESSAGE FROM “2020 was a transformational Raising the Bar on 2021 Outlook and Beyond
continue to deliver high grade ores from
the new Milache, El Curso and Santa Sustainability
year for Endeavour Silver. Our In looking ahead to what promises to be
THE CEO
Cruz Sur orebodies for years to come.
While COVID-19 made this an especially a productive and bright outlook, I believe
people came together not only Bolañitos continued to improve with
there are several ways we can create
challenging year, it didn't stop us from
to resolve new challenges but also rising quarterly production, up 3%, on
continuing our progress in raising the value:
higher throughput, up 5%, and stronger
capture new opportunities and create a gold grades and recoveries. The mine
bar on our sustainability programs. At
• Optimize the mining operations by
the mine sites, extra precautions to
more sustainable future for the Company. We is now operating close to capacity, the
prevent the spread of and hasten the
focusing on improving even further
highest level since 2018. We invested
did not just survive a difficult year, we thrived in sustaining capital at each mine to
recovery from COVID-19 effectively
our safety, productivity and free cash
flow
thanks to our ability to unite in the face of adversity.” develop new high-grade areas and are
reduced our employee availability.
Notwithstanding, we were able to • Develop the Terronera Project to
continuing to add resources in new high-
—Bradford Cooke, Chief Executive Officer & Director grade veins to extend mine lives.
sustain our productivity, while working become our new core asset and one
safely. Our newly launched "Te Cuido" of the lowest cost mines in the silver
("I take care of you") program further sector
Creating Value Through strengthened our safety culture and
Exploration and Development • Explore our Chile projects to make a
performance and resulted in lower Lost
Dear Stakeholders, 2020 Highlights Improved Financial and material new bulk tonnage discovery
Endeavour Silver was “built through the Time Injuries (LTI) frequency and severity
Operating Performance and transition to larger scale
Our theme for 2020 is “Unity in • Invested in our people to improve drill bit” in that every mine we developed rates that continued to trend down over
Adversity”, not only because of how the depth and talent of all levels of operations
Lower operating costs and higher metal was the result of virgin discoveries in the year.
positively we responded to the COVID-19 management prices drove significantly higher cash historic mining districts made by our • Grow through accretive M&A
pandemic, but also how our people flow and earnings, which turned positive We also launched our ICARE Values opportunities to enhance our
• Increased our investment in exploration team. Our largest discovery
managed to turn around our mines from for the first time in three years due to our program, to bring greater visibility of our production, cost and growth profiles
sustaining capital to renew the mobile to date, the Terronera Project, is our
under-performing to out-performing, very strong performance in the second values as a company to our employees,
mining equipment and extend mine next core asset and the cornerstone of In closing, I would like to thank our
improving safety, production, and half of 2020. The mines generated so that they feel more connected
lives our next phase of growth as a company. management and employees for
profitability at each mine. In the face revenue of $138.4 million from the sale of with who Endeavour is and where
During 2020, we published a final working relentlessly to deliver a very
of a global challenge, 2020 was a year • Surpassed our sustainability 3.5 million oz of silver and 35,519 oz gold the company is going. ICARE stands
Pre-feasibility study with very robust rewarding year. The operational turn
full of resolve, transformation and performance from 2019 (6.3 million oz silver equivalents at an for Integrity, Care, Attitude, Reliability
forecasted economic returns. We are arounds at Guanaceví and Bolañitos
achievement for Endeavour Silver. 80:1 silver:gold ratio) at average realized and Excellence, to remind us all that
• Completed the operational turn currently completing a feasibility study are testaments to the hard work,
prices of $21.60 per oz silver and $1,846 we count on each other, every day,
arounds at both Guanaceví & to de-risk the project for a development skill, passion and persistence of our
As I reflect on the year, safety was in everything we do, whether we’re
Bolañitos per oz gold. Our 2020 cash cost and all decision in the summer of 2021. Last
once again a key emphasis. We kept in Vancouver or Mexico. Employees operations team. Terronera and Parral
in sustaining cost, net of gold credits, year, we expanded our land package
our people safe and healthy due • Generated free cash flow at each mine embraced the program, recognizing that represent our future thanks to the vision,
each decreased year-on-year by 57% through the acquisition of two adjacent
to our aggressive COVID-19 health for the first time in two years our values program is an investment ability and success of our exploration
and 17% to $5.55 per ounce and $17.59 mineral concessions, covering multiple
precautions and recovery protocols. in bringing out the best in everyone to group. I’m confident that Endeavour
• Replaced reserves at Guanaceví per ounce, respectively. As a result, mineralized vein structures. We aim
I can proudly say that the Endeavour ensure a brighter future for Endeavour. will continue to create value for all
and Bolañitos and grew resources at our EBITDA, free cash flow and cash to give back to the community by
community mobilized during this stakeholders as we move into the next
Guanaceví position all increased by over 300% in maximizing local economic benefits and
difficult time, not only to safeguard our In the local communities, the need for phase of our growth as a company.
2020. The bottom line was net income job opportunities through responsible
employees and communities, but also • Created new value at El Compas children to study from home gave rise
of $1.2 million ($0.01 per share) despite development of the project, with plans Sincerely,
to achieve our original 2020 production through a partnership to our Silver Tablet program. Endeavour
several extraordinary items including underway for establishing a temporary
goals, notwithstanding the government donated over 500 smart tablets to
• Completed a final pre-feasibility study care and maintenance expenses for the construction camp while continuing to
mandated shutdown of the mining families in local Mexican communities
at Terronera with robust economics entire year at El Cubo and for almost two drill test multiple new targets.
industry for almost 2 months. As a to enable home learning. It was a
months at our operating mines.
result, our Fourth Quarter 2020 was our It is now clear that the silver mining resounding success and we will keep Bradford Cooke,
building on the program, finding new Chief Executive Officer & Director
best performance in over two years, industry has entered into a new bull Guanaceví re-emerged as a cornerstone May 2021
due in no small part to the remarkable market thanks to a sharp increase in asset in 2020, through the completion ways to foster education and support
effort of our people. investment demand. Silver reached a 10- of its operational turnaround. Silver communities for years to come.
year high and started to outperform gold equivalent production was up 43%,
last year, not only for its role as a precious grades were up 37% and throughput
metal, but also as an industrial metal was up 7% in 2020. The mine is now
much needed in electronics, solar power operating close to capacity and will
and electric vehicles to secure a “green”
future. We are excited by the opportunity
to build new silver mines and help drive a
more sustainable economy.
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OUR VALUE CHAIN
Silver is a “green metal” since it contributes to a sustainable to above ground, the silver and gold we mine is transformed
future by producing key materials for renewable energy, from raw materials into consumer products and specialty
electric vehicles, and anti-bacterial uses. From below ground products as well as precious metals investments.
PROCESS
INPUTS APPLICATIONS
& Dis g s S t o ra g g Po sit
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Water Purifier
Capital
D ore Electric
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bi i ng
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Vehicles
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n ci n g & n c en t r a te S m e l ter
F in a Co
Energy
ETF’s
Transport
Co
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Jewelry
Water
Silverware
BENEFITS DISTRIBUTED
Direct & Social & Taxes & Suppliers & Shareholder Semi-
Indirect Jobs Community Duties Contractors Returns conductors
Investments
Services
Hydrogen
Fuel Cells
VA LUE CH A VA LUE CH A
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ABOUT ENDEAVOUR MEXICO
3 operations
1 development project
Endeavour Silver Corp. is a mid-tier precious metals mining company
listed on the NYSE:EXK and TSX:EDR. The Company is headquartered 5 exploration projects
in Vancouver, Canada, and is engaged in the evaluation, acquisition,
exploration, development and exploitation of precious metals properties Operations
Parral Development
in Latin America. Our philosophy of corporate social integrity creates Exploration
value for all stakeholders.
Guanaceví
mine
Lourdes Bolañitos
El Compas mine
mine
CHILE León
Office
Terronera
Cerro
Marquez
Operations Aida
2020 Operating Performance
2020 Operating Performance
We own three high-grade, underground, SILVER GOLD Paloma
silver-gold mines in Mexico; the
Guanaceví mine in Durango, the 3.5M oz Production 37,139 oz Production Santiago
Bolañitos mine in Guanajuato and the Office
Terronera Project Parral Project
El Compas mine in Zacatecas. In Q4 48.6M oz 471,900 oz
2020, we signed an agreement to sell Proven & Probable Reserves Proven & Probable Reserves
the dormant Cubo mine and its related • Jalisco state • Chihuahua state
assets to VanGold Mining for $15 million 25.9M oz 222,500 oz
• Potential to be next core asset • Existing resource base of 36
in cash and share payments plus Measured & Indicated Measured & Indicated
million oz silver
additional contingent payments. • Awaiting release of feasibility
study, project financing, and • $2 million exploration budget
board approval for construction in 2021
Development & Exploration
Guanaceví Mine El Compas Mine Bolañitos Mine
We own one development project in
Mexico, the Terronera project in Jalisco,
which is now fully permitted and • Durango state • Zacatecas state • Guanajuato state
awaiting the completion of a feasibility • Produced 3.9 million oz silver • Produced 0.8 million oz silver • Produced 1.9 million oz silver
study to warrant a development equivalent metal equivalent metal equivalent metal
decision and project financing in 2021;
and the prospective Parral Project • Produces silver & gold dore • Produces gold & silver • Produces silver & gold
in Chihuahua state, which is a past bars from 1,200 tpd plant concentrate from 250 tpd plant concentrate from 1,600 tpd plant
producing mine. In addition, we hold
several other exploration properties in
Mexico and Chile.
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SUSTAINABILITY
AT ENDEAVOUR
Safety &
OUR SUSTAINABILITY FRAMEWORK Health
At Endeavour, we aspire to be a proactive,
Q&A WITH positive contributor to a healthier society and
Economic Endeavour Our People
Value
KEN PICKERING Sustainability
more sustainable ecosystems. That’s why we Strategy
Independent Board Director and
have embedded sustainability into our corporate
Sustainability Committee Chair
identity and our approach to doing business.
Environment Community
In your view, what was 2020 accelerated discussions Climate change has been called
Endeavour’s top 2020 on diversity and equality across the defining issue of our time. Since our inception, we have recognized Our Sustainability Strategy • Driven by our leadership, including our
achievement? society. How is Endeavour What actions are being taken by that sustainable development encompasses our entire value chain, CEO, CFO and Board of Directors.
responding? Endeavour to address it? contributes to the long-term viability of with a focus on five core areas: safety
Taking care of our people when • Woven into our governance structure
our company and our host communities and health; people; community;
it mattered most. We prioritized At Endeavour we respect and value Addressing environmental degradation (see page 20) and various policies,
in Mexico. For us, that means responsibly environment; and economic value.
employee well-being as the pandemic the perspectives, experiences, is certainly a priority for Endeavour and including our Sustainability Policy.
exploring and managing our mining These areas are underpinned by an
unfolded last year. While our operations cultures and essential differences every industry right now. We’ve asked • Integrated in our risk management
properties, while contributing to the well- ongoing emphasis on good corporate
shut down for over a month due to that our Board, management and our ourselves what Endeavour can do program and strategic planning process.
being of our workforce and local Mexican governance. Our sustainability agenda is:
lockdown measures in Mexico, we employees possess. We do not tolerate better to manage environmental risks communities.
continued paying everyone, kept them discrimination of any form. Our strong and mitigate negative impacts by – and
informed and offered support. We did commitment to diversity and inclusion on – our business. We closely monitor
not lay off or lose employees. is defined in company policies and and report on our energy usage and
standards, including our Diversity GHG emissions, and we’ve set up a new
Once we were allowed to re-open, we
Policy, Sustainability Policy and new Environmental Management System
returned to business as usual as best
ICARE Values that reinforce diversity that will help us identify more energy LISTENING TO OUR
as possible by implementing an active
as part of ‘The Endeavour Way’. Last efficiency opportunities. STAKEHOLDERS Governments Industry
testing system and other protocols to
year we updated several policies to
keep people healthy and comfortable. Mineral extraction is energy intensive. & Regulators Associations
enhance our commitment to Indigenous As a mining company with operations
As a result, our employees were keen Electricity—which we get from the grid
rights, and we supported a nation-wide in several communities, we have many
to come back to work and many told us at all our operations—is our biggest
campaign in Mexico focused on raising stakeholders who have an interest
they felt rejuvenated. I believe that’s a carbon footprint. This is followed
awareness of violence against women or direct stake in what we do, how we
major reason why Endeavour had such by diesel emissions. Working in Shareholders NGOs
in the country. Certainly, we know more work and, ultimately, how we perform.
a productive year overall, especially underground mines has historically
work is needed to achieve true inclusion, That means we have a responsibility to
during the third and fourth quarters. involved using diesel equipment.
including gender diversity within our ensure we have a clear understanding of
So as part of our climate mitigation
organization, and that’s where we want
and need to go. strategies we’ve started shifting to
their needs and perspectives. Main
less-contaminating fuel equipment Through various communication Stakeholders
such as electric. Our up-and-coming channels, we seek out and listen to Suppliers Labour Unions
flagship site, Terronera, is Endeavour’s feedback from stakeholders most
first to be built from scratch, and we’re impacted by our business. We use
incorporating greener technologies these insights to guide our business
and environmental best practices in and make a positive impact on society.
all of our plans. For instance, we’ve Open, ongoing dialogue—direct and Customers/ Local
committed to 15% green energy to through a third-party—is key to learning Buyers Communities
power the site, with an aim to increase and improving, helping us build trust as
that over time. The site also has no
Employees &
a responsible corporate citizen.
tailings dam; we filter and dry stack the Contractors
tailings there, as we do at Guanaceví,
which maximizes the water recirculated.
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Since our inception, we
have recognized that How We Support the SDGs
sustainable development
contributes to the SDGs Description Endeavour's contribution
long-term viability of our
company and our host Ensure healthy lives and promote well- • Occupational Safety • Community Engagement
being for all, at all ages & Health & Impacts
communities in Mexico. • Workforce Wellness • Community Investment
• Water Management
Ensure inclusive and quality education • Occupational Safety • Community Investment
OUR MATERIAL TOPICS for all and promote lifelong learning & Health • Training & Development
This report—and our ongoing materiality assessment in which we This 2020 Sustainability Report
sustainability work—focuses on the survey our main stakeholders. The is structured around the material
Promote inclusive and sustainable • Employee Satisfaction • Job Creation & Local
social, economic and environmental process is conducted by an external topics identified in our last materiality economic growth, full and productive Procurement
• Training & Development
topics of greatest importance across consultant and is guided by the Global assessment in 2019, the results of which employment, and decent work for all • Financial Performance • Community Investment
our whole value chain. We determine Reporting Initiative standards. were detailed in our 2019 Sustainability
• Occupational Safety • Workforce Wellness
these issues through a bi-annual Report. These topics are shown below.
& Health
Protect, restore and promote • Other Environmental • Water Management
sustainable use of terrestrial Impacts
Material Topics ecosystems, sustainably manage
• Community Engagement
• Environmental & Impacts
forests, combat desertification, and Compliance & Tailings
halt and reverse land degradation Management
• Occupational safety* • Community engagement and • Water management and halt biodiversity loss
impacts
• Workforce well-being* • Financial performance
• Community investments
• Employee satisfaction • Job creation and local procurement
• Environmental compliance and
• Training and development
tailings
SUPPORTING THE SDGS
*In our 2019 report, we had merged these two topics; however, the pandemic and other current realities have underscored
Endeavour supports the United The chart above highlights the SDGs
their importance as distinct issues so we have separated them in this report.
Nations Sustainable Development we have determined most relevant to
Our next full materiality assessment is planned for 2021. Goals (SDGs). The SDGs are a call to our business and how we’re working
action for countries, corporations in support of them through our
and organizations to work collectively activities, initiatives and partnerships.
to address the most pressing Additionally, through the Silver
challenges facing the world. We know Institute we have participated in
that companies like ours, as well as a collaborative project—the Silver
the broader mining sector, have the Sustainability Initiative—to illustrate
potential to advance the ambitious aims how mining companies contribute to
represented by the SDGs. the SDGs and a better society.
Com
mu
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iny
fra
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st
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ep
roj
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t, p
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o tak
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SUSTAINABILITY SCORECARD
Community
The following tables summarize our Achieved
sustainability performance against our On track and more work needed 2020 Priorities 2020 Results
2020 priorities. For more results, refer to Not Achieved Implement the Social Management System, which includes a review of social In progress
each relevant section in this report. policies and procedures
Address and solve community complaints in a reasonable timeframe In progress
Oversee that the ongoing transition of public services from Endeavour to the Achieved
Safety & Health El Cubo community is ongoing and successful
Maintain environmental monitoring in the El Cubo facilities to ensure there are Achieved
2020 Priorities 2020 Results no negative impacts in the community
Zero fatalities Achieved Ensure that at least 50% of investments support our community investment Achieved
Reduce our reportable injury frequency rate to below 2.77 Achieved priorities: education and employability
Implement the Safety Culture work plan as outlined in the safety audit Achieved Standardize the Endeavour scholarship program across all sites Achieved
Hire a safety manager to drive the new safety culture initiative Instead of a safety manager, we In partnership with other groups, provide at least two skills workshops at each Cancelled due to COVID-19 restrictions
retained a safety consulting group mine to help people prepare for future career or entrepreneurial opportunities
for an 18-month engagement to
implement this initiative
Environment
Our People
2020 Priorities 2020 Results
Zero spills Achieved
2020 Priorities 2020 Results
Implement an environmental management system In progress
Implement and deploy the new core values and competencies In progress
Improve piping and pipeline infrastructure at all sites Achieved
Complete deployment of new E-talent HR software system In progress
Reduce the amount of hazardous waste per tonne processed by 10% Not achieved—though experienced
Implement new legislation in Mexico regarding employee well-being (NOM 035) Achieved
a 5% reduction
Improve the technical skills of our operators In progress
Maintain fresh water intensity in the ranges of 0.20 and 0.25 cubic metres Not achieved—recorded 0.46 cubic
Strengthen the hard and soft skills of the front line supervisors In progress per tonne processed metres per tonne processed
Assess areas that require improvements in training based on the required Not achieved—this effort was not
skillset for each position prioritized as emphasis was placed
on initiating the roll-out of the ICARE
program. Economic Value
2020 Priorities 2020 Results
Complete final update of the prefeasibility study to further de-risk the Terronera Achieved
project and improve certainty of project capital requirements
Consider completing a feasibility study to expand financing alternatives for the Achieved
Terronera project
Return Guanaceví, Bolañitos and El Compas to profitability as measured by mine Achieved
operating free cash flow
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CORPORATE Since launching Endeavour Silver
more than 15 years ago, we’ve
SUSTAINABILITY GOVERNANCE
GOVERNANCE built our business on the principles
of accountability, ethical behaviour and
Sustainability is ingrained in the highest
levels of Endeavour and throughout
our company, including at each site in
The Sustainability Committee and a
team of senior executives—including
the CEO, Chief Operating Officer, Chief
Dig Deeper Online
social integrity. These foundations are Mexico. Financial Officer, VP Operations, and Governance Documents
Director of Investor Relations—set
critical from the top of our company down. At the Board level, there is a clear specific sustainability priorities for the
Sustainability Policy
emphasis on sustainability issues, upcoming year and formally review
as demonstrated through dedicated our Sustainability Report to ensure it
ENDEAVOUR’S BOARD OF DIRECTORS 2020 committees and oversight. Two of effectively addresses all material topics
the Board committees oversee our identified by our stakeholders.
sustainability strategy and decision-
Number of members 7 Code of Conduct for Directors Yes
making: the Sustainability Committee Compensation of the management
and, to a lesser extent, the Corporate team is tied to production and
Number of independent members 6 Board Oversight of Sustainability Yes
Governance and Nominating Committee. sustainability goals. In particular,
Number of women members safety and environmental criteria
1
Guided by our Sustainability Policy are incorporated into the annual pay
and the Sustainability Committee structure.
Charter, the Sustainability Committee
meets at least three times per year to At the operational level, sustainability
LEADERSHIP & GOVERNANCE review reports from key departments matters such as workplace safety,
of our operations. The Committee environmental protection and
Our Board of Directors oversees guide the Board’s oversight and • We have a Diversity Policy, which promotes a sustainability mindset and community relations are integrated
the Company’s business conduct communications with shareholders. recognizes the benefits arising from encourages a corporate culture that into the everyday management of our
and strategic planning. The Board Board, management and employee takes responsibility for sustainable business.
• Management is responsible for
ensures that appropriate governance diversity. For example, a more diverse development. They also approve
setting long-term goals, objectives,
mechanisms, policies and procedures leadership and workforce population policies, standards and responsible work
plans and strategies.
are in place, including the integrity of brings broader perspectives and practices that guide the performance
our internal controls and management • The Board has four standing experience to our team. and expectations of our employees,
information systems. committees: Audit Committee, contractors and other partners.
Compensation Committee, Corporate
• Our Code of Business Conduct and Governance and Nomination
Ethics and several other policies. Committee, and Sustainability
Committee. RISK ASSESSMENT AND MANAGEMENT
Identifying, evaluating and managing Controlling and overseeing risk
risks, including social and environmental involves many departments at
BOARD OF • Corporate Governance • Audit Committee issues that can materially impact Endeavour, including Security (for
DIRECTORS • Nominating Committee • Compensation Committee our business, are critical to our long- people and assets), Safety and
• Sustainability Committee term viability and the interests of Health, Community Relations and
our stakeholders. Risk management Contractor Management, among
is embedded in our organizational others. At the site level, we recently
MANAGEMENT • Operations • Human Resources structure and responsibilities, and our added a Risk Control Department with
• Exploration • Finance risk management methodology and a superintendent now at each site.
• New Projects resulting matrix includes scales of Risk assessments take place at each
assessing and ranking risk impact and site and action plans are developed to
likelihood. mitigate or address those risks.
REGIONAL • Safety • Human Resources
• Community Relations • Finance
• Environment • Legal
AT SITES • Safety • Human Resources
• Community Relations • Finance
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CEHUMAN RIGHTS At Endeavour
We respect and uphold fundamental religious beliefs, and we do not tolerate Child labour exists as a general country
we prioritize
human rights, both in our workplace any form of harassment. Employees are risk within Mexico, however we maintain taking care of
and in local communities. Our encouraged to speak out if a co-worker’s strict proof-of-age policies and hiring
commitment is embedded in both our conduct makes them uncomfortable, procedures at all sites, preventing our people and
Code of Business Conduct and Ethics
and our Diversity Policy. We are guided
and to report harassment or
discrimination if it occurs.
anyone under the legal working age
of 18 from obtaining employment. This
each other.
by global standards such as the United proof-of-age requirement extends to
Nations (UN) Guiding Principles on Endeavour respects the rights and our contractors through our Contracting
Business and Human Rights and the cultures of Indigenous Peoples. In Services and Working with Third
Voluntary Principles on Security and 2020, we updated five of our corporate Parties Protocol, which specify that no
Human Rights. policies to reflect this commitment. contractor will employ persons under
These include our Sustainability Policy, the working age permitted by law. There
We foster a work environment free Environmental Protection Policy, Health were no reported incidents of child
from discrimination against gender, and Safety Policy, Code of Business labour at any of our operations in 2020.
race, culture, national origin, marital Conduct and Ethics, Diversity Policy and
status, sexual orientation, or political/ Community Investment Policy.
BUSINESS CONDUCT ANTI-CORRUPTION AND ANTI-BRIBERY
Dig Deeper Online
Our Code of Business Conduct Adherence to the Code is a mandatory We take a zero-tolerance approach to Company risk assessment process,
Code of Business Conduct and
and Ethics (the Code) reflects our condition of employment. Individuals any form of bribery and corruption. We supplemented by our thorough internal
Ethics
commitment to a culture of honesty, who fail to comply with the Code adhere to all laws and best practices financial controls, which are in place
integrity and accountability. Reviewed and all applicable laws are subject in this area, and our commitments and to monitor aspects of operations Anti-Bribery and Anti-Corruption
and updated regularly, the Code to disciplinary measures, up to practices are outlined in our Anti-Bribery that could be affected by bribery or Policy
establishes the essential standards we and including discharge from the and Anti-Corruption Policy to ensure we corruption. Both risk management
Whistleblower Policy
expect all employees and those doing Company or termination of the business take a consistent and comprehensive and internal controls are reviewed
business with us to uphold. We distribute relationship. Every year employees approach wherever we operate. and evaluated annually by the Board Corporate Disclosure Policy
a copy of the Code to our employees complete a ‘training refresher’ of the Code of Directors. In 2020, there were no
during the orientation process and post to reinforce our workplace standards and Corruption-related risks are evaluated reported incidents of corruption.
it at key locations across our sites. expected behaviours workplace. at the management level as part of the
WHISTLEBLOWER POLICY
Topics covered in our Code include:
Our Whistleblower Policy provides a Grievance Mechanism). Concerns
Company-wide protocol for reporting— can be raised on a confidential and
without fear of reprisal—any apparent anonymous basis. Reports are directed
• Conflicts of interest • Environment • Financial and Business
fraudulent, unethical or illegal activity to the Chairman of the Audit Committee,
Disclosure
• Confidentiality • Equal opportunity, discrimination or behavior related to financial matters and we investigate and document all
and harassment • Gifts and entertainment (concerns related to non-financial concerns. In 2020, we did not receive any
• Protection and proper use of
matters go through our Internal whistleblower complaints.
company assets • Human rights • Improper payments
• Insider trading • Indigenous Peoples • Reporting of illegal or unethical
behaviour
• Fair dealing • Health and safety
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MATERIAL TOPICS
Commitments to External Initiatives
Occupational Safety & Health 26
& Health
Workforce Wellness 30
• The Organization for Economic • Voluntary Principles on Security • GHG Protocol from the World
Cooperation and Development and Human Rights Business Council for Sustainable
Guidelines for Multi-National Development
• International Finance Corporation
Enterprises
Performance Standards on Social • Global Reporting Initiative
• The United Nations Guiding and Environmental Sustainability
Principles on Business and
Human Rights
Key Memberships
Association Mining Task Force
Confederation
for Mineral of the Canadian
of Industry
Exploration Chamber of
Chambers
British Columbia Commerce in Mexico
Mexican Mining The Silver Institute of Corporate
Chamber Institute Directors
2020 HIGHLIGHTS
25% 14 h "Te Cuido" 1333
reduction in our of safety Safety Culture Change employees surveyed for their
Reportable Injury Rate training Program implemented: perception on safety practices
(RIR), exceeding our provided per focus on risk awareness and culture; we are implemen-
target of 10% reduction worker and competency ting action plans in responseOCCUPATIONAL Alignment with
SDGs
In the face of the global
COVID-19 pandemic, we
SAFETY augmented our standard
safety procedures with
& HEALTH Why It Matters
COVID-19 protocols to
protect our workforce.
The safety and well-being of our employees and
contractors are our top priorities at Endeavour. Constant
attention to risk awareness and effective risk mitigation is
essential in the mining industry—particularly at underground Evaluating and Addressing Risks Building a Safety Culture Emergency Preparedness
operations, which pose numerous risk hazards. By eliminating these We conduct daily risk assessments and We believe that safety is everyone’s We have emergency response
hazards and minimizing risk of accidents and injuries, we operate safe inspections across our mine sites to responsibility and that leadership must plans and teams for each mine,
identify and eliminate potential hazards.
mines and create a secure, productive environment. drive this message by example. We process plant, construction site
For example, employees must complete continually invest time and resources and exploration location. All of our
a Job Safety Analysis and five-point to engage with our employees, employees and contractors receive
checklist to verify that safe conditions contractors and stakeholders to ensure basic first aid training as part of the
MANAGEMENT APPROACH exist prior to starting work. In 2020,
we initiated crossover inspections
that safe work practices are the priority
and comply with our policies and
new hire/induction process. We also
have emergency readiness plans for
among our mining operations; these procedures. Additionally, we empower handling incidents such as hazardous
Safety Management System • Prohibits alcohol and drug use at all Additionally, our medical professionals inspections will continue as a standard our workforce and contractors to substance spills. Many employees are
sites and monitors workers’ blood work with our community relations practice in 2021. proactively take the necessary steps trained as responders for emergency
Our goal is a workplace free of injuries
levels to ensure compliance. team to support medical campaigns, to ensure safe measures, including situations in nearby communities.
and high potential incidents. We have a
health education and off-site medical Management is tasked with an
Safety Management System that: stopping work and speaking up when
As part of our safety culture initiative, individual monthly inspection program
emergencies in the local communities they see an unsafe condition or action.
we are in the process of updating administered by the safety department.
• Maintains safety procedures, controls when required. Each operation is The core message of the "Te Cuido" (“I
the Safety Management System. Senior management regularly follows
and standards, as outlined in our equipped with a first aid clinic and take care of you”), safety culture change
These updates will reflect the drive up with these inspections to ensure
Health and Safety Policy. ambulance for medical evacuation. program is “Step back and take control”.
to become a more risk aware and we’re meeting the commitments of our
• Employs safety managers, risk competent organization, focused In the event of an incident or accident, internal policy. Our Safety and Hygiene Over one-third of our workforce
coordinators and superintendents on the management and mitigation caring for any injured employee is Commission, mandated by Mexican law, participates in safety groups,
at each operating mine. They are of High Potential Incidents and the our first priority. Our updated safety meets once per month to audit facilities committees and mine rescue
supported by management, the trade implementation of the Key Performance management program includes for safety and health compliance and to programs. Upon joining Endeavour, all
union, safety committees and other Indicators driven by leading indicators. Basic Trauma Life Support training identify areas of opportunity or concern. employees and contractors participate
groups that conduct activities such for physicians. This ensures they are The commission then recommends in a three-day induction program,
as risk reviews, audits, emergency prepared to participate and lead in appropriate actions and plans. which focuses on workplace safety. We
On-site Medical Professionals
response and mine rescue. patient stabilization at an accident provide continual safety education and
Each mine has a physician and trained scene, prior to evacuation. We investigate and evaluate every
• Provides safety training, including interactive discussions about safety
paramedics as part of the on-site safety incident to identify root causes and
the use of personal protective equipment, activities and recognizing
team. The physicians and paramedics implement corrective or preventative
equipment and safety signage, and resolving hazardous situations.
conduct COVID-19 screening and actions to address any problems.
and the continuous monitoring of Each employee also takes annual
case management, medical exams, refresher training or a “reinduction
air quality for good ventilation. To
monitor specific health indicators for program” at the start of each calendar
prevent rock falls, we prohibit working
all employees and check occupational year. While the global COVID-19
in unstable and unsupported areas
health conditions in the workplace. This pandemic required us to conduct the
and we employ ground support
monitoring ranges from organ function 2020 annual refresher in different
techniques, including rock bolts,
to lower back testing. Physicians and formats throughout the year, we remain
cables, mesh and shotcrete to ensure
paramedics are key participants in committed to continuing our annual
safe underground workplaces.
incident, accident and emergency refresher training when safe to do so.
response actions.
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24 252020 PERFORMANCE We achieved a 25% 2021 PRIORITIES
reduction in our
• Zero fatalities.
Injury Performance Metrics reportable injury rate continual training on the safety
• Reduce RIR by 10%. protocols and competencies,
• In 2020, we reduced by 25% our (RIR) last year. strengthening the company’s rescue
Reportable Injury Rate (RIR) to 2.09 in • Initiate the management priority
brigades. It will also involve updating
2020, from 2.77 in 2019. Our lost time of identifying risk to eliminate High
and implementing the Safety
frequency rate decreased by 46% Potential incidents.
Management System, incorporating
from 2019.
• Continue working with Real Safety more systemic and standard
• Along with meaningful accident LTIs per Site RIR consulting group to improve our approaches across all sites.
reduction, none of our incidents safety culture. This will include
4.00
involved life-threatening injuries. The 40
3.50
most common lost-time incidents 30
3.00
(LTIs) involved injury from falling rock 20 2.50
2.00
or vehicle accidents. Because our 10
1.50
root cause analyses identified lack 0 1.00
Guanaceví Bolañitos El Compas 0.50
of risk awareness prior to several 0.00
safety incidents, we plan to focus LTIs 2020 LTIs 2019
2016 2017 2018 2019 2020
on risk awareness/identification
and risk competency training.
IN FOCUS
This ensures workers, supervisors Key Initiatives
and managers can perceive and
understand workplace risks and have • In the face of the global COVID-19 • Despite the challenges of conducting Building a “Te Cuido” (“I take care of you”) safety culture
pandemic that unfolded in 2020, employee training amidst COVID-19
the knowledge and commitment
to control or mitigate exposure to we augmented our standard safety safety protocols, we engaged a Changing safety culture means re-educating current employees and contractors
safety consulting firm, Real Safety,
hazards. procedures with COVID-19 protocols to replace long-held practices with safer procedures. Maintaining safety standards
to protect our workforce. Endeavour for an 18-month period to improve
• The severity rate of reported the company’s safety culture. (See
at mining sites can be challenging when staff turn-over results in less-experienced
initiated on-site daily screening and
incidents at our mine sites in 2020 COVID-19 testing at all locations, adjacent IN FOCUS case study). employees, so improving safety training is also necessary.
decreased by 88%. including mines, offices and projects. • We rolled out a safety improvement
• Our Guanaceví site achieved just During the year, over 1,750 COVID-19 plan, including safety training To help strengthen Endeavour’s safety We also carried out a gap analysis
under 1 million hours with no lost tests were conducted. This accounts program revisions, based on culture, we engaged a consulting for critical risk control protocols. This
time incidents in 2020. They reached for over 60% of our employees, recommendations from a group, Real Safety, to carry out an identified an average of about 50%
971,808 hours by December 31, 2020 contractors and other stakeholders. comprehensive safety audit 18-month engagement across our implementation of these protocols.
and 1 million hours by January 6, For more details, refer to the conducted in 2019. operations. Despite the challenges of
2021. The local team is proud of their Workforce Wellness section. In response to these findings, we held
• Third-party experts (Real Safety) performing training programs in 2020
accomplishment, with 50% less • We provided an average of 14 hours of amidst pandemic restrictions, we made safety training to build the competencies
reviewed and tested the Endeavour
incidents with lost time in 2020, and safety training per worker, including considerable progress. of 290 frontline company and contractor
mines rescue teams. As a result,
a reduction in the severity rate from contractors, representing a total of supervisors. We also hosted “Te Cuido”
we provided refresher training and
33.99 to 26.42. 25,049 training hours. The training We completed a perception survey events at El Compas and Bolañitos for
initiated a rescue equipment upgrade
covered three key areas: safety at all sites, which identified the main more than 500 workers. This included
program.
monitoring, rescue training and safety issues raised among the 1,333 hands-on activities to strengthen skills
regulatory technical training. The employees surveyed. They included: such as trust, teamwork, leadership,
average for 2020 was down from 27 decision-making and problem solving.
• lack of trust;
hours per worker, due to COVID-19 Our consultant also worked closely
restrictions for large in-class training. • a low level of education and with our local rescue brigades to
management skills at the strengthen emergency procedures,
supervisory level; basic life support and technical rescue
capabilities.
• communication;
• recognition, and
• workplace stress.
T Y & HEA T Y & HEA
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26 27WORKFORCE Alignment with
SDGs
2020 PERFORMANCE
WELLNESS • In a year in which a global pandemic
had a profound economic impact
on people and organizations, we
– To keep any personnel considered
vulnerable due to a prior health
condition or advanced age safe,
stepped up to ensure the well-being we sent them home with base pay.
Why It Matters of our workforce, including their
financial health. During a six-week,
We also implemented protections
including mandatory mask
government-mandated shutdown usage, social distancing, reduced
Overall wellness is very important for both of all non-essential businesses in staff capacity and worker squad
employees and stakeholders. Fostering mental, Mexico in April, due to COVID-19, we separation. We added worksite
physical and financial well-being means workers are ensured that no employees were laid entrance procedures to screen
off and that all workers received their workers for illness. This included
happier, healthier and more productive. base salary as usual. measuring temperatures, answering
questionnaires and increased
• In May, the Mexican federal STPS, we began developing and
cleaning and sanitation of all sites.
government recognized mining as implementing an internal policy to
an essential business. Endeavour – Due to the isolation of our Guanaceví prevent social and psychological
resumed operations, using stringent operation, we took additional risk factors among our workers.
COVID-19 protocols for prevention and measures to protect workers in our We surveyed 64% of our workforce
MANAGEMENT APPROACH recovery. Among them: campsite and dining facilities. In on their work environment and
addition to added sanitation and relationships, to help us draft a
– Our COVID-19 protocols follow the
cleaning efforts, we increased our policy and identify priority initiatives.
Wellness Program Mental Health Mexican government guidelines.
on-site medical staff, increased We also created a risk committee
Government entities, including
We promote good, holistic health and Our workers’ mental wellness is critical screening of workers for symptoms to ensure that these actions are
COFEPRIS (Mexican Federal
mitigate health risks inherent in the to ensuring they are alert, safe and and developed protocols to test, implemented, with particular focus on
Commission for Protection against
mining industry. These can include productive on the job. isolate, contact trace and transport high-risk workers.
Health Risks), the Ministry of Labour
respiratory problems, gastrointestinal impacted workers.
We are increasingly recognizing the and the IMSS (Mexican Institute of
illnesses and headaches from
importance of supporting our workers’ Social Security), have inspected • In accordance with the recently
prolonged or inadvertent exposure to
mental health and well-being. all sites. There were no significant introduced Mexican Standard on
noise, dust, emissions and gases. Our
observations or recommendations. Psychological Risk, NOM-035-
efforts include:
To do so, we are committed to building
• Running health campaigns such as awareness and providing workplace
flu vaccinations, prostate screening supports to help our workers deal with
and cholesterol checks. potential mental health challenges.
These could range from immediate
When the COVID-19
• Providing easy access to professional stress resulting from pandemic health pandemic unfolded
health care and advice. In Mexico, concerns, to ongoing complications last year, Endeavour
we have an on-site physician at Safety and Hygiene Commission
of mine site isolation, post-accident demonstrated leadership
each mine and we offer all workers trauma, economic insecurity, work- Our Safety and Hygiene Commission,
annual medical exams, including life balance, or the risks of mental, mandated by Mexican law, meets once
by moving quickly to
X-rays, spirometry, audiometry and physical or substance abuse at work a month to audit facilities for safety and launch our own health
physicals. or home. Many of our efforts are health, identify areas of opportunity precautions and plans,
• Observing bio-markers (lead in guided by the new Mexican Standard or concern, and devise a timely and while also helping
on Psychological Risk Factors at the appropriate follow-up plan for any
blood and other blood chemistry) of
issues. The recent COVID-19 pandemic
communities protect the
our employees who work in labs or Workplace, NOM-035-STPS.
reinforces the importance of ensuring health of their people.
smelting facilities (twice per year).
that proper safeguards are in place to
Working with our host communities
• Monitoring specific health indicators ensure worker health and to minimize
in Mexico, we donated critical items
for all employees relating to organ disruption to our operations. For more
such as medical supplies, masks,
function or other aspects of work- details, also see the Occupational
cleaners and disinfectants. We
related health, such as lower back Safety section.
also loaned an ambulance to the
testing.
Municipality of Guanaceví to help
transport patients to the health
T Y & HEA care they needed.
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