COMMUNITY
ENGAGEMENT

Teloloapan, Guerrero, Capela unit
Teloloapan, Guerrero, Capela unit

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In our community engagement, our Management System is grounded in a strategy of sustainable community development, and in respectful and coordinated work with the community and authorities, to achieve social well-being based on relations of harmony and trust.

This Management System is consistent with all laws and best practices and an internal system of standards that stresses social commitment: Code of Conduct, Sustainable Development Policy, social development guidelines and institutional values, among others.

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Our Code of Conduct incorporates policies and guidelines that reflect the principles of the United Nations Global Compact and OECD and CSR guidelines regarding sustainability, good practices and domestic and international standards on human rights, culture, traditions, regional vocation, and the sustainable development of local communities.

The Social Management Plan is one way we ensure continuity, integration and mainstreaming of operating process management. It covers each phase of Peñoles’ value chain, from exploration to the closure of operations to project construction and operation.

The Social Management Model provides for general education and awareness-raising in the internal and external communities, building shared knowledge, reflection and dialogue that strengthen our relations with the community.

Peñoles’ guidelines on social development embody our commitment to respect for culture, traditions, regional vocation, participative dialogue, skill-building and the development of sustainable communities, in an environment of trust with local communities, their inhabitants and authorities.

SOCIAL DEVELOPMENT GUIDELINES

OUTREACH MODEL

ENVIRONMENTAL

SOCIAL

ECONOMIC

Authorities
Peñoles
Leaders
NGOs / Nonprofits
Community
Reforestation team at Capela unit
Manitas

We are transforming ourselves into sustainable communities.

Reforestation team at Capela unit

The social development model starts with the very shape of the social structure, in which Peñoles is an active member of the community. We involve ourselves in efforts to achieve social development and support the goals of society at large, harmonizing and recognizing the guiding role of the State as administrator, and the shared responsibility of the community in building social well-being.

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Communities are one of the five stakeholder groups we define as a priority. Our pledge is to be a socially responsible company, respectful of nature and supportive of the self-development of the communities where we operate and of which we are part. To do so, we have social diagnosis mechanisms that determine the economic, social and environmental impact of our operations. The aim is to magnify the positive impact of our operations, and to avoid, mitigate or remediate any negative impact they might have on the environment and society.

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The approach we bring to our impact assessment is one of full respect for human and indigenous rights, which is embedded in our management model. Peñoles has no operations adjacent to indigenous lands or where artisanal and/or small-scale mining is practiced; nor have there been any resettlements or mobilization of communities because of such operations.

Constant and ongoing engagement with the communities to which we belong contributes to healthy understanding and stronger relations of trust, cooperation, local development and well-being. The social management model ensures the creation of shared value with communities and authorities; it is contained in a cycle of continuous improvement, as follows:

Community school, Capela unit.

Community school, Capela unit

122

people responsible for operating strategic social development programs.

Reforestation at tailings dam area, Capela unit

SOCIAL IMPACT EVALUATION

HUMAN, SOCIAL, ECONOMIC AND CULTURAL RIGHTS
SOCIODEMOGRAPHIC, SOCIOECONOMIC AND SOCIOCULTURAL INDICATORS
CHARACTERIZATION OF INDIGENOUS COMMUNITIES

Work

Food

Health

Housing

Water

Education

Social security

Environment

Culture

Availability

Physically accessible, affordable and free of discrimination

Acceptability and quality

Sociodemographic

Social infrastructure

Politics and government

Safety and public order

Identity and historic continuity

Regulatory system

Social organization

Economic activities

Ties to territory

Cultural expressions

Reforestation at tailings dam area, Capela unit

Reforestation at tailings dam area, Capela unit

Peñoles contributes to social welfare and development through a strategy, operating plans and leadership management indicators led by our executive team and operated by a structure of 53 direct heads and 69 indirect leaders, as shown below.

The Social Development Management System is designed to ensure the efficacy of planning and value creation for our stakeholders.

SOCIAL MANAGEMENT MODEL

Social knowledge

Alignment of strategy

Respect for human rights, dialogue and participative processes for developing sustainable communities

  • Viability
  • Harmonious relations
  • Good reputation

SOCIAL DIAGNOSIS

PLANNING

EVALUATION AND IMPROVEMENT

OPERATION

MODELO DE GESTIÓN SOCIAL

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Local community beneficiaries receive information from the company, participate in the design of projects, express their viewpoints and make decisions through various mechanisms.

LOCAL COMMUNITY MECHANISMS

  • Community committees that provide training and design social solutions for the various problems and needs of local communities.

  • Participation in image and reputation surveys and social impact assessments, where communities can offer their opinion on needs, problems, socioeconomic status, expectations and concerns; and on this basis, prepare diagnoses, profiles, indicators and impact statements.

  • Mechanisms through which the community can manage problems and social solutions in coordination with the company and authorities.

  • Sharing our technical expertise in various specialties with authorities, community committees, ejidos and inhabitants, to design and create technical-administrative projects for public tender processes and the mining fund, among others, and assisting them throughout the process.

  • Addressing complaints and concerns from the community and other stakeholders and taking action to prevent, remediate or mitigate them.

  • Institutional communication through mass media, direct dialogue with the community, fairs, presentations, activations and campaigns.

CORPORATE STRUCTURE

Corporate department of social engagement and development

Division heads

Functional heads

Tehuixtla, a community near our Capela unit

Tehuixtla, a community near our Capela unit

The COVID-19

pandemic challenged us to continue working for sustainable development of local communities

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These mechanisms allow us to support the improvement and evaluation of institutional programs, which operate on five axes of social development:

Results
We are a socially responsible company, and in pursuit of that commitment, we work along five axes of development. Over the past 133 years, we have built relationships of cooperation and development with the communities in which we operate and of which we are a part.

Health services for the community of Tehuiztla, Guerrero, Capela unit

Health services for the community of Tehuiztla, Guerrero, Capela unit

2020 RESULTS

1,490
social development actions

10
states in Mexico and 6 departments in Peru

67
communities

188,171
participants

AXES OF ACTION

EDUCATION
Improve educational performance: focus on science-technology and human development, va-lues, school retention and support for culture.

ENVIRONMENTAL
Environmental aware-ness-building, training and campaigns, to identify and mitigate impacts, encoura-ge positive environmental behaviors.

SELF-DEVELOPMENT
Develop capacities and skills for being self-sus-tainable and starting businesses.

FAMILY
Health and dietary habits, personal advancement, women and older adults, sports and recreation.

INFRASTRUCTURE
Shared vision and manage-ment of public services.

AXES OF ACTION

Grievances and requests
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The administration of grievances and requests, which is part of our Social Development Management System, is a mechanism for open dialogue with stakeholders.

In 2020 we fielded 29 grievances from local communities, 28 of which were addressed and one is in process.

Through management and joint work with communities and authorities, 422 requests were received regarding support for sports, educational and cultural activities, infrastructure, health and family togetherness, among others.

The COVID-19 pandemic challenged us to continue working for sustainable development of local communities. On the principles of awareness, trust, cooperation and solidarity, we will be strengthened by the challenges, as we look towards the future.

Our social engagement and development are aligned with the United Nations Sustainable Development Goals, through actions listed in the table below.

Objectivos de desarrollo sostenible.
Peñoles’ social contribution to the Sustainable Development Goals
Axes of action SDG
We develop social capacities through productive projects, community centers, job training, community committees
co-management of social infrastructure, support for health, education, and partnerships for development.
We promote entrepreneurship and improvement of local businesses through training in technical, administrative
and human skills as well as consulting, internships and supplier contracts.
We help improve health systems, sanitation, good hygiene and nutrition habits, preventive health care, promotion of
sports, family togetherness and emergency response.
We contribute to academic excellence, support arts and culture, help protect cultural heritage and promote science,
technology and infrastructure.
We help build environmental awareness through programs aligned with UN objectives. We help conserve, relocate,
forest and reforest species of flora and fauna in the places where we operate. We produce forestry species in our
own plant nurseries, and we have land and facilities for handling wildlife, to protect and conserve local animals.

Self-development

Family

Education

Environment

We administer a system for social engagement and development with an impact on environmental awareness,
development of social skills, strengthening entrepreneurship and micro-businesses, protection of cultural heritage,
educational excellence, family togetherness, health, sports, productive activities and co-management of social
infrastructure.
Peñoles forms strategic partnerships for pursuing the Sustainable Development Goals, which strengthen our
commitment to the environment, the economy and social development

Aerial view at sunset, Capela unit

Aerial view at sunset, Capela unit
CONTENT

In this 2020 Report we present the sustainability performance of the operations of Peñoles and the generation of shared value with the groups of interest.

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