At Centamin, we know our presence in the countries in which we operate can be transformative through enhancing existing infrastructure, providing training and employment opportunities, pioneering business opportunities for the domestic private sector, catalysing socio-economic development in our host communities and delivering significant revenues for host governments through profit share, royalties and taxes.
- We are committed to developing resources in a way that protects and empowers people, respects human rights, fosters socio-economic development and safeguards the environment.
- We are resolute in our commitment to deliver value to our employees and host communities and deliver long-term, durable profits for our shareholders.
- Our commitment to act responsibly as individuals and as a business is reflected in our Company Values, Purpose and strategy. These guide the decisions we make and the conduct of our business
OUR SUSTAINABILITY PRIORITIES
Each year we analyse the sustainability issues that matter most to our stakeholders and our business to inform our strategy and priorities for the year ahead.
We define an issue as being material if it is considered important by key stakeholders and could have a significant strategic or financial impact on the business. Material issues are identified through the review of principal risks, applicable regulatory requirements and good practice industry standards and stakeholder engagement, including an annual materiality survey of internal and external stakeholders.
OUR SUSTAINABILITY PERFORMANCE
We are committed to meeting international standards of good practice in the areas of governance, health and safety, social development, human rights and environmental protection.
Our Sustainability Performance Framework provides a systematic approach to how the Company operates with respect to these key areas and recognises the need to adopt and apply standards and processes that transcend the mine lifecycle and issues arising from our presence in diverse socioeconomic and biophysical settings. The Sustainability Performance Framework consists of three key components: business policies; operational performance standards; and management assurance.
Our policies articulate clear business principles and commitments, align with our Values and international good practice, in particular the Responsible Gold Mining Principles (“RGMPs”) of the World Gold Council. In 2022, the Board approved updates to the Code of Conduct, Diversity and Inclusion Policy and Energy and Climate Change Policy. The Group policies are published on the Centamin website and made available to all workers at asset-level through workplace inductions, notice boards and terms of contract.
We maintain a register of sustainability objectives, performance metrics and targets at Group and asset-level that are aligned to our policies. We routinely monitor and assure our performance against this framework.
We continue to enhance our external assurance applicable to our sustainability performance. In 2022 this external assurance included: occupational health and safety management systems; tailings management; cyanide management; GHG accounting and TCFD reporting compliance; gender diversity; supply chain due diligence; and security and human rights.
SUSTAINABILITY GOVERNANCE
We strive to integrate sustainability into our business model and across all levels of the organisation, from the boardroom to operational practices, and throughout the mine lifecycle, from opportunity identification to closure.
Our commitment to responsible business principles is fundamental to our success and ability to be a trusted partner to our stakeholders. Our approach to corporate governance enables robust oversight and management accountability for all aspects of the business including sustainability. Everyone who works for or on behalf of Centamin is held to high standards that are expected to be consistently met.
INTEGRATING SUSTAINABILITY FROM THE TOP DOWN
Effective corporate and sustainability governance begins with a strong board of directors. Ultimate accountability for the Company’s sustainability performance resides with the Board. The Board oversees implementation, of adherence to and performance against the Company’s policies and governance framework. The Board also plays a critical role in assessing major risks and opportunities, ensuring high standards of ethical business conduct and approving and providing oversight of the Sustainability Performance Framework.
Centamin’s Board has the breadth of skills and experience to challenge and support the management team. The professional profile of each of our Board members is presented on the Centamin website.
Guided by the FTSE Women Leaders and the Parker Reviews, Board nomination considers skills, experience, diversity (gender, ethnicity, age), independence and geography. Three of our nine Board members are female; one identifies as being of ethnic heritage; and three of the five committees are chaired by women.
Five core Board committees provide oversight and guidance in key areas – Audit and Risk, Remuneration, Nomination, Sustainability and Technical. Charters define the role and responsibility of the Board and each committee within the Company’s corporate governance framework. In 2022 the charters were revised by the Board to reinforce governance on matters relating to climate-related risk and opportunities, and tailings management.
Read more on our Governance page
The Sustainability Committee oversees the development and implementation of the Company’s sustainability goals, policies and standards on matters of workplace health and safety; environmental, social governance and risk, climate change, human rights and workforce engagement. The committee serves as Board advisory on matters including good industry practice, sustainability performance, compliance and licence to operate risk. The committee formally reviews and approves this annual sustainability report and ensures that all material topics are covered.
The committee is comprised of four Non-Executive Directors and is chaired by Dr Catharine Farrow. Dr Farrow is a qualified geoscientist with more than 25 years’ mining industry experience ranging from operations, technical services, corporate development and exploration.
The committee held seven formal meetings in 2022, plus a visit to Sukari. Standing agenda items at each committee meeting include occupational health and safety, climate change and tailings management. The committee chair provides a summary report to the full Board on a quarterly basis and each member of the Board has access to the materials reviewed by the committee. The Sustainability Committee report is presented on pages 110 to 112 of the Annual Report and summarises the key activities and areas of focus in 2022.
The CEO has overall responsibility for Centamin’s sustainability performance. Reporting to the CEO is the Head of Environmental and Social Governance, who leads Centamin’s sustainability team and has primary responsibility for the daily implementation of the Sustainability Performance Framework. The sustainability team provides guidance to asset level managers in operationalising the Framework and its integration into asset-level management systems and practice. Our asset-level managers are supported in this responsibility by dedicated in-country health, safety, environmental and social (“HSES”) specialists familiar with the local regulatory context, values and cultural sensitivities.
LINKING REMUNERATION TO SUSTAINABILITY
Executive Directors and employees eligible for our bonus scheme are incentivised to take accountability for sustainability performance through Centamin’s compensation structure.
Sustainability metrics represented 20% of the actual performance bonus payment in 2022 and included: health and safety incident frequency rate (LTIFR and TRIFR); environmental and social incident frequency rate (“ESIFR”); GHG emissions; diversity and inclusion; and employee training and development.
At Sukari, sustainability metrics represented 27% of the 2022 employee performance bonus payment and comprised TRIFR, High Potential Incident Frequency Rate (“HPIFR”) and ESIFR. To be eligible for the performance bonus, employees must have also adhered to the Cardinal Safety Rules, defined as critical controls related to workplace safety.
SUSTAINABILITY LINKED LOAN
In 2022, Centamin secured a four-year term, US$150M sustainability-linked revolving credit facility. The sustainability targets linked to this facility align with our ongoing environmental and social governance priorities and will track tangible progress in minimising our impact and enhancing our performance.
Under the structure of the facility, annual quantifiable targets will be defined for GHG emission reduction, increasing gender diversity, and training and professional development. These metrics will be monitored annually and subject to independent assurance. Depending on the Company’s performance, the interest margin on the facility may be adjusted down, up or remain unchanged.
