Gold Fields’ Integrated Reporting journey SVEN LUNSCHE VP Corporate Affairs at Gold Fields 17 November 2016
Gold Fields’ Integrated Reporting journey SVEN LUNSCHE VP Corporate Affairs at Gold Fields 17 November 2016
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Gold Fields – Global presence
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
PERU Cerro Corona
Lima GHANA Tarkwa Damang
Accra
Johannesburg
SOUTH AFRICA South Deep
AUSTRALIA Agnew/Lawlers St Ives Darlot Granny Smith
Perth
Mines Regional offices Corporate office Growth Projects
PHILIPPINES Far Southeast
FINLAND Arctic Platinum
CHILE Salares Norte
• Established in 1887 • 10,000 employees • Listed on JSE, NYSE
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Integrated reporting and mining - 1
1. High impact industry
2. In the public limelight and under fire from NGOs
3. Affecting multiple stakeholders – communities, governments, businesses, shareholders, trade unions, employees
4. Significant environmental impact
5. Mining is often “the only game in town”
6. Managers have to deal with operational issues as well as regulatory and social licence to operate
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
Integrated reporting is critical for the mining industry
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Integrated reporting and mining - 2
1. Transparency – critical “first line of defence”
2. Amid heightened public scrutiny – issues will be uncovered
3. Sustainability and ESG issues are as critical to mining companies as financial and operational matters
4. Integrated reporting gives ESG issues equal status to operational issues
5. Integrated reporting reflects the integrated nature of our business
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
Transparency and integrated reporting are linked
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Integrated reporting and sustainability
2003 – First Sustainability Report as part of AR
2008 – Participation in CDP (A-List)
2009 – King III launched
2010 – First Integrated Annual Report (EY Excellence Ranking)
2010 – First GRI submission (A+, Core)
2011 – First WDP disclosure
2011 – IIRC pilot company
2012 – First DJSI submission (Top 5 in mining)
2013 – First UNGC submission
2013 – <IR> Framework launched
2016 – King IV launched
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
Key milestones – Integrated reporting and sustainability frameworks
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Integrated reporting – Key success factors
1. Support from the CEO
2. Buy-in from the Audit Committee of the Board
3. Effective risk reporting
4. Participation in Sustainable Development frameworks
5. Regulatory push – King III and JSE Listing Requirements
6. A non-compliance mindset
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
Key supporting elements for launching integrated reporting
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Integrated reporting – Key challenges
1. The silo-mindset by the majority of key executives (particularly Finance)
2. Little buy-in (initially) from operational management
3. Complete lack of reliable and consistent ESG data collection and evaluation
4. The need to assure ESG data
5. Content-development that shows the integrated nature of our business
6. Outcomes-based reporting (as opposed to outputs)
7. Reporting overload
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
Key challenges in launching integrated reporting
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Gold Fields IAR - The centre of our reporting
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
Integrated Annual Report
Mineral Resource
and Reserve
Supplement
Annual Financial
Report
GRI Supplement
Supporting Web
documents
20 F Notice (NYSE)
AGM Notice
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Gold Fields IAR – Links to <IR> Framework
1. Introduction to the business:
• Vision & Values / Company DNA
• Operating environment
• Business strategy
• Value creation model – trade-offs
• Performance dashboard
2. Governance – Audit Committee oversight Reporting boundary and how it was determined
3. Nature/magnitude of trade-offs that influence value creation
4. Guided by ‘capitals’ – but not strict adherence
Gold Fields’ Integrated Reporting journey | Sven Lunsche | 17 November 2016
Consistent elements of our IARs