Investor Centre / 2021 Annual Report
I am pleased to present Newcrest’s Annual Report for FY21 which outlines our progress and achievements for the year.
It has now been six years since Newcrest established its safety transformation plan and the benefits are evident throughout our business. We are now approaching six years free of fatalities and have reported a pleasing 12% improvement in injury rates compared to the prior year.
At the 2020 Annual General Meeting I spoke about the devastating impact the COVID-19 pandemic was having on lives and economies across the world. Our number one priority during the pandemic has been the health and safety of our people and local communities. We continue to apply a wide range of precautionary measures throughout the business which include strict hygiene and social distancing requirements as well as comprehensive testing, quarantine and contact tracing procedures to keep people safe and help minimise disruptions to our operations.
In April 2020 we announced our A$20 million Community Support Fund which was established to help support our host communities with the challenges associated with the COVID-19 pandemic. Since its inception the Fund has supported a variety of initiatives ranging from immediate health assistance to livelihood restoration and economic recovery in Papua New Guinea, Australia, Canada and Ecuador.
Notable initiatives of the Fund during the year have included a commitment to support vaccine rollout (and additional in-kind logistical support) as a Founding Member of the COVID Vaccination Alliance of UNICEF Australia in Papua New Guinea as well as contributing to the establishment of the first Intensive Care Unit in the Province of Zamora-Chinchipe (Ecuador), in partnership with other mining companies and Ecuadorian authorities. We recently extended the Fund through to June 2022 and look forward to seeing its continued benefits over the next 12 months.
In the second half of the financial year, we announced our Purpose of Creating a brighter future for people through safe and responsible mining. This is about delivering more than just safety, profits and growth – it is about leaving a positive impact for all our stakeholders such that they are better off by us operating in proximity to their community and from having invested in us, partnered with us or worked with us.
We understand that our employees, younger generations, investors, governments and the broader society look to the corporate world to take the lead on Environmental, Social and Governance (ESG) matters.
Newcrest recognises that we have a responsibility to do our part to reduce the impact of climate change and in May 2021 we announced our goal of net zero carbon emissions by 20501. We believe that as an industry we have the ingenuity, technology and capability to reduce our carbon footprint, and these capabilities position us well as we target a zero-carbon emissions future.
At Newcrest we also recognise the benefits of using strategic partnerships to realise our goal of net zero carbon emissions. One such example is the landmark 15-year renewable energy Power Purchase Agreement (PPA) that we signed with a wind farm developer for an amount of energy which represents a significant portion of Cadia’s future projected energy requirements. The PPA will act as a partial hedge against future electricity price increases and will provide Newcrest with access to large-scale generation certificates which Newcrest intends to surrender to achieve a reduction in its greenhouse gas emissions. The PPA, together with the forecast decarbonisation of electricity generation in New South Wales, is expected to help deliver a ~20% reduction in Newcrest’s greenhouse gas emissions from calendar year 2024 and is a significant step towards the achievement of our previously announced target of a 30% reduction in greenhouse gas emissions intensity by 20302.