Environmental: Environmental risk management
Social & ethical: Human rights
What we did
In our engagement, we urged the company to increase the resources it dedicates to environmental protection, to disclose the relevant environmental measures once put in place and to provide onsite training to improve the safety awareness of its staff and contractors. We recommended changes to the process that ensures compliance with operating procedures and the appointment of an independent non-executive director with an international background and sustainability experience in the sector. We put the company in contact with a human rights organisation that is introducing extractive companies to global best practice on labour and human rights. We also recommended that the company leverages local expertise when conducting bottom-up social and environmental impact assessments.
Since the 2010 accidents, the company has invested over CNY800 million ($126 million) in its environmental management system at the Zijinshan copper mine alone. Zijin Mining has also set up an environmental and safety committee, a department of environmental preservation and safety, as well as a social responsibility department for significant projects, all with board level oversight. All projects are subject to operational audits, which are chosen at random to reduce sample biases.
With regard to the health and safety for its workers, targets have been set at zero casualties. Since the industrial accident in 2012, there have not been any reported fatalities or other safety related accidents. All staff moving overseas are trained in health and safety, whistleblowing and anti-bribery and corruption measures prior to their relocation. In Peru, the company moved its head office from Lima to Piura where staff live among the local community to aid integration. In January 2016, it appointed a new project head who has engaged a local organisation to assist the company in managing community relations.
In relation to the disclosure of its labour practices, the company now reports on ethnic and gender diversity in its employment across the group and staff training on health and safety. It has also introduced a 360-degree feedback system to enhance the fairness, transparency and objectivity of staff performance assessments.