Investor Centre / 2021 Annual Report
Safety & Sustainability
We empower our people to be safe, in an environment in which they have the authority and responsibility for their own safety and the safety of others. We strive to create an environment where everyone can make a difference and share their concerns, insights and learnings with others, no matter where our people are or what they do.
Our Safety Transformation Plan, established in 2015, continues to direct our efforts and deliver results. We believe that an ongoing focus on culture, controls and systems is required to continue to improve our safety and health performance.
Our safety culture
is centred around NewSafe, which drives our understanding of why people do the things they do and how we can all influence the right safety outcomes.
Our Critical Control Management system
provides the review, approval and verification steps for high-risk tasks. This system helps our workforce identify which tasks could cause fatalities or life-changing injuries and verifies that preventative controls are in place before commencing the task.
is aimed at managing chemical and energy hazards through the proper design and operation of our assets. It strives to reduce the risk of the types of events that can cause multiple fatalities.
Our overarching aim remains the elimination of fatalities and life-changing injuries from our business. We have made excellent progress across our safety objectives during the year and are now nearly six years free of fatalities and have achieved a low 2.3 injuries per million hours, which is a 12% improvement on the prior year. Our lost time injury frequency rate (LTIFR) was 0.5 injuries per million hours worked, consistent with our performance in FY20.
Across Newcrest we have worked hard to respond to the threat of the COVID-19 pandemic in co-operation with the communities in which we operate. Newcrest continues to monitor the unfolding situation around the globe, seeking health advice and medical expertise and reviewing and updating our programs in response to local conditions.
Each decision has been guided by our values of Caring about people and Working together to respond to this crisis. We continue to work closely with government authorities and industry associations to guide the safe operations of mining during the pandemic and respond to travel restrictions.
Early on, Newcrest recognised the potential for the COVID-19 pandemic to have a severe impact on the health and wellbeing of our people and host communities. Through our WellnessMatters program Newcrest provided tools, education and support for our people to look after their mental and physical wellbeing resulting from the challenges of working remotely, being separated from family and managing life outside of work. The risk from COVID-19 still persists and we remain vigilant with our preventative controls.
Our new Sustainability Strategy
Newcrest has introduced a new sustainability strategy that is underpinned by three of the five pillars of our Forging an even stronger Newcrest business plan. Over the next five years we will strive to:
Be a safe and sustainable business
Have the best people and
Be outstanding operators
Our sustainability strategy has three main strategic imperatives:
- Protect and inspire our people and respect nearby communities and host governments – capturing the internal and external social elements
- Protect the environment – addressing operational eco-efficiency, climate strategy, water and waste management
- Be a trusted and responsible miner – addressing growth and financial sustainability, reporting, transparency, and governance
Under this strategy we will also focus on material issues that drive the biggest change, enhance livelihoods and support the United Nations Sustainable Development Goals (SDGs).
During FY21 we continued our memberships with the International Council on Mining and Metals (ICMM), the World Gold Council (WGC) and the Minerals Council of Australia (MCA). Newcrest’s Sustainability Framework incorporates the ICMM’s 10 Principles for Sustainable Development and the WGC Responsible Gold Mining Principles (which have a three-year timeframe for implementation). We also continued to progress the implementation of our sustainability-related policies of Climate Change, Water Stewardship, Biodiversity, and Communities policies throughout our business.
In May 2021, Newcrest set a goal of net zero carbon emissions by 2050, which relates to its operational (Scope 1 and Scope 2) emissions.
Newcrest will also strive to work across its value chain to reduce its Scope 3 emissions.
The goal of “Net Zero” is in addition to our target of a 30% reduction in GHG emissions intensity per tonne of ore treated by 2030 (against a 2018 baseline), which we announced in June 2019. To inform investment decisions Newcrest has also adopted a protocol for applying shadow carbon prices of US$25/tonne and US$50/tonne CO2-e for jurisdictions where there are no regulated carbon prices.
In FY21, Newcrest continued its progress to report in line with the recommendations of the Taskforce on Climate-related Financial Disclosures. Newcrest assessed the transition risks and opportunities, as well as physical risks, using climate scenario analysis over different time horizons to address the Strategy element of the TCFD recommendations. Under the TCFD framework, Climate Financial Driver Analysis (CFDA) is used to assess the financial impacts of the transition risks and opportunities pursuant to the selected scenarios.
The results of the CFDA indicate a risk of cost increases in the following areas:
- Carbon pricing
- Increased regulation in response to climate change
- Diesel price
- Oil price
- Uptake of low carbon technologies
However, there is opportunity for these potential risks to be offset by strong demand and prices for copper, together with Newcrest’s expected increase in copper production.
Newcrest has identified the following physical risks in relation to its operating sites – water scarcity, flood, extreme heat, heat stress, wildfire, wind and cyclones, extreme cold and sea level rise. Adaptation measures and strategies have been identified for these main physical risks and will be assessed by Newcrest’s operating sites.
The Global Industry Standard on Tailings Management was released on 5 August 2020 following endorsement by all three co‑conveners of the Global Tailings Review, which included the United Nations Environment Program (UNEP), the Principles for Responsible Investment (PRI) and the ICMM. Newcrest, as a member of the ICMM, will continue to participate in the implementation program of the Global Tailings Standard. Newcrest’s revised Tailings Governance Policy was released in February 2021.
Newcrest released its revised Human Rights Policy in October 2020, and released its first Modern Slavery Statement in December 2020.
Our approach to sustainability also includes community agreements, partnerships and investments to foster socio-economic advancement. Newcrest and its employees are involved in targeted local community programs, ranging from Indigenous employment and training, education, health and awareness programs to agribusiness and social housing initiatives.