Sustainability
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OUR APPROACH

ARM strives to balance the economic, social and environmental aspects of our business which are all essential to our long-term sustainability. We are proud of the good relationships we have and continue to develop with all our stakeholders.

ARM’s values, governance structures and ethical leadership guide our actions to conduct our business activities with integrity and respect for the environmental and societal contexts in which we operate. As a leading mining and minerals company, ARM is cognisant not only of our impacts on the world around us, but also of the opportunities to make a positive contribution to growth and development in the societies in which we operate.

ARM’s values explicitly acknowledge that social responsibility, good corporate governance and environmental stewardship are essential aspects of generating economic value for shareholders and social benefit for stakeholders. Taking a broader view to include nonfinancial aspects ensures ARM’s long-term sustainability.

RELATED REPORTS

  
The 2019 Sustainable Development Report provides more detail on our performance and approach to sustainable mining.

ARM’s Sustainable Development Model

Our approach to sustainable development is represented in our sustainable development model, which shows the inputs that shape our approach and the aspects we consider in the creation of value.

STAKEHOLDERS
ARM’s business model and strategy
Values and ethics
Company policies and standards
Relevant legislation
Guidelines and frameworks
Industry initiatives
NATURAL CAPITAL
Emissions
Biodiversity
Climate change
Mitigation
Water
Energy
Materials & waste
HUMAN CAPITAL
Safety
PTB, HIV & Aids
Human resources
Human rights
Health & wellness
Transformation
ARM Trust
Economic value delivered to shareholders
Social benefit to stakeholders
GOVERNANCE, RISK MANAGEMENT AND COMBINED ASSURANCE
Policies, standards, management controls, internal audit, external audit, transparent reporting and independent external assurance of sustainability data.
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Our climate change and water management strategies and reporting draw on various frameworks, guidelines, good practice and regulatory compliance requirements and also seek to meet multiple and evolving stakeholder reporting requirements. To address these issues comprehensively, we published a supplementary report on climate and water management at the end of 2019. This report uses the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD) and the Position Statement of the International Council on Mining and Metals (ICMM) on Water Stewardship as the core framework.

Creating Sustainable Value

Our operations are located in some poor and remote parts of the country and provide employment opportunities, skills development and educational support in these areas. Infrastructure investments and support for social projects in local communities support socio-economic development and improve community resilience and sustainability. ARM’s preferential procurement and enterprise development programmes support entrepreneurship and economic growth among historically disadvantaged South Africans (HDSAs) and in local communities, create jobs, improve market access for South African capital goods and services, and increase economic activity in the areas around our operations.

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ARM operations' socio-economic development contributions over the last five years include:

R9.6 billion paid as taxes and royalties.

R757 million invested in community development..

Providing employment for 21 417 employees and contractors (as at 30 June 2019).

Improved HDSA representation in management from 51% in F2015 to 62% in F2019.

Provided 1 198 bursaries.

Paid R18.4 billion to employees as salaries, wages and benefits

Invested R1.07 billion in training initiatives to improve the skills of employees.

R54 billion paid in procurement. In the year to December 2018, 84% of services, 79% of capital equipment and 86% of consumables procured were allocated to HDSA suppliers.

Provided adult education and training (AET) to 745  employees and 1 833 community members at ARM facilities since F2015, increasing their confidence and employability.

* On a 100% basis
# Reported for F2019 (as at 30 June 2019).

Communities

ARM’s commitment to being a responsible corporate citizen drives our support of the development of the communities in which we operate through social investment and local economic development projects. These initiatives aim to build capacity in communities and prioritise women, HIV and Aids projects, the upliftment of people living with disabilities, youth and the socially destitute.

Partnering with communities and other stakeholders for social upliftment is a strategic priority. Investment in local communities is aimed at driving socio-economic development and improving community resilience and sustainability. Most of ARM’s operations are located in remote areas near communities with pressing socioeconomic challenges. This provides an opportunity to make a meaningful difference by investing in infrastructure and social projects that can have a significant positive impact. Delivering these initiatives strengthens our relationships with local communities and benefits employees who live there. Regular engagements improve our understanding of community needs and expectations, and promote community ownership of projects by including beneficiaries from the planning phase.

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