STRENGTHENED BY

Our purpose is to contribute to people’s well-being by sustainably mining gold and silver.

Fresnillo plc subsidiary

SUBSIDIARY ACTIVITIES

FRESNILLO PLC SUBSIDIARY

Simba operator at Ciénega unit
Simba operator at Ciénega unit

Sustainability strategy
We believe responsible mining must be compatible with the highest expectations of our stakeholders in terms of ethical, social and environmental performance. We are convinced that our social license to operate depends on the level of trust we inspire in them. This is why it is important to maintain responsible business practices that are closely connected with our business model an to take into account factors that are important to our stakeholders in all the decisions we make.

Actions relating to COVID-19
COVID-19 is a public health crisis with unprecedented social repercussions. During this crisis, our priority has been protecting the health of our people and our communities. To this end, we took a variety of actions.

STRATEGY

EARNING TRUST

Ethics rooted in our culture

Sharing the benefits

Compatible mining

Estrategia
Icono Reciclar

Priority

during this crisis has been protecting the health of our people and our communities.

ACTIONS TO PROTECT OUR PEOPLE

  • Crisis committees: We created crisis committees in every business unit, coordinated by a corporate Crisis Committee headed by our CEO.
  • Protection of vulnerable personnel: We proactively identified vulnerable members of our work force according to age, chronic illness (diabetes, high blood pressure), and those who were pregnant or nursing, offering them the possibility of working from home with full pay, in order to avoid contagion.
  • Communication: We launched a creative communication campaign about preventive measures to take at home and at work.
  • Training: We trained our people in IMSS guidelines for safe work.
  • Entrance controls: We set up entrance checkpoints where employee temperatures were checked and they were asked about symptoms or contacts with people suspected of having COVID-19. At our operations in remote areas, people were monitored before boarding company transport and upon arrival at the mine.
  • Safe distancing measures: We applied social distancing measures in common areas like entrances, dining rooms, dormitories, and meeting rooms, with the support of floor markers.
  • Protection and sanitation measures: We made the use of face masks mandatory and encouraged the use of antibacterial gel to minimize the risks of contagion, as well as a program of sanitizing work areas and personnel transport vehicles on a daily basis.
  • Rapid testing and contact tracing: We conducted rapid testing and contact tracing to request quarantine as a preventive measure. We monitored the status of quarantined personnel or those with confirmed cases of contagion on a daily basis.

COMMUNITY ENGAGEMENT

  • Communication: We communicated preventive measures to reduce the risk of contagion and spread of the coronavirus, and also to combat the anxiety caused by misinformation. We worked together with the authorities in communicating official information, and in all of our operations we organized donation and mask-wearing campaigns.
  • Strategic donations to the healthcare industry: We supported health care professionals and institutions by donating personal protection equipment and respirators to hospitals in regions where we operate.
  • Support for the most vulnerable: We provided basic food supplies and information to the most vulnerable members of the communities where we operate, and we developed projects.
  • Synergies with the community: The Peñoles FIRST robotic teams from Fresnillo (Jeunes d’argent) and Caborca (Cabots) manufactured protective face shields for regional hospitals and groups in the communities of San Julián and Juanicipio, and face masks for the community and our people. They also helped authorities with the sanitization of public spaces.
  • Remote social programs: We transmitted the Picando Letras and Empredemos Juntos programs through digital platforms. In an alliance with Innovec, we produced a video course called “COVID-19! How do I protect myself and others?”

We donated personal protection equipment and respirators to hospitals in the regions where we operate.

Dental Health Day in Torreón.

Preventive care and promoting healthy lifestyles can help avoid certain chronic illnesses and improve general wellness and physical ability for work.

Occupational health
Focused on identifying health risks in advance and managing them, we worked to keep our people healthy and avoid occupational illnesses. Preventive care and promoting healthy lifestyles can help avoid certain chronic illnesses and improve general wellness and physical ability for work. Although we focus on prevention, emergency response is a core skill for all our health teams.

KEY ACTIVITIES:

  • Identifying and monitoring the level of exposure to physical and chemical risks to our people’s health: noise, dust, vibration, contamination from heavy metals, extreme temperatures.
  • Establishing procedures, protective equipment, training and operating controls.
  • Evaluating and improving the ergonomics of our equipment to prevent muscular-skeletal disorders.
  • Guaranteeing a health checkup for new hires, including both physical and psycho-social assessments.
  • Routine checkups to monitor occupational illnesses and give advice on preventive care.
  • Administering new rehabilitation facilities to accelerate recovery from injury.
  • Starting up our Healthy Lifestyles Program to encourage good eating habits and prevent and control the risks relating to obesity.
  • Biological monitoring to prevent sanitary risks.
  • Organizing workshops on behavioral change, facilitated by psychologists, to reduce accident risk.
Occupational health certifications
Unit Healthy Company Smoke Free Company
San Julián In process Certified
Fresnillo Certified Certified
Saucito Certified Certified
Ciénega Certified Certified
Penmont Certified Certified
Occupational health, Ciénega mine

Occupational health, Ciénega mine

Seguridad - Me Cuido, nos Cuidamos
We want to instill in our people a culture of care—sustained by the shared values of this organization—propelled by our leaders and focused on high–potential incidents.

ME CUIDO, NOS CUIDAMOS STRATEGY

Leadership: Developing a values-based leadership style

Accountability: Integrating safety into operating systems, processes and respon-sibilities

Risk competencies - Behaviors: Instill the security and safety culture.

Risk competencies - Systems: Consolidate a management system focused on risks.

Learning environment: Reduce risks through engineering, systems, and behavioral solutions and lessons learned.

Strengthening safety goals by tracking proactive performance indicators.

KEY ACTIVITIES:

  • Strengthen safety goals by tracking proactive performance indicators, in order to act in advance of any eventuality.
  • Make all operations “owners” of their safety risks so that, as a fundamental part of their daily activities, they render accounts according to their performance and management results.
  • Introduce the Watch out for Risk program, to develop risk competencies by educating leaders, supervisors and the work force, with a system of teamwork made up of unit managers, general operating superintendents and area superintendents, all of whom will carry out this exercise according to a previously established program. This program encourages coaching and immediate feedback, and leads to a comprehensive process of review and continuous improvement.
  • Continuing the program of addressing high-potential incidents, a strategy focused on managing critical risks and controls, processes for verifying controls, and preventive reporting of possible high-potential incidents.
Occupational health certifications
Unit ISO 45001 Ministry
of Labor Self-
Management
Program
San Julián In process Initial
Fresnillo Certified Initial
Saucito Certified Level 1
Ciénega In process Level 1
Penmont Certified Level 3
Juanicipio In process Initial

Environment
We are committed to mining practices that are compatible with the environment. We have a strategy for reducing the impact of our activities and for openly and honestly communicating our performance.

KEY ACTIVITIES:

Responsible water use

  • Closed circuits: Recirculation allows us to re-use water in plant circuits and tailings dams, and between the leaching pads and Merrill-Crowe plants.
  • Treatment and reuse of municipal waste water: Reduces consumption of fresh water through treatment of municipal waste water for its reuse in processing minerals.
  • High-performance compact thickeners: Reduces water consumption and energy consumption and improves the storage capacity of tailings dams.

Reducing the carbon footprint

  • Wind energy: Reduces the carbon footprint of the energy needed to operate our plants, ventilation systems, offices, mining camps, etc.
  • Conversion of diesel trucks to hybrid systems with natural gas: Reduces operating costs and de-carbonizes the truck fleet for operations at the Centauro cut (Herradura).
  • On-demand ventilation systems: Reduce electricity consumption by optimizing mine ventilation based on air temperature and quality metrics.

Biodiversity

  • Sonoran pronghorn: (Berrendo sonorense): Support for the Sonoran government in conservation and monitoring of Sonoran pronghorn populations in ejidos adjacent to the Herradura mine.
  • Sustainable forest: Conservation of 1,000 hectares of woodlands at the La Ciénega mine. Reforestation and erosion prevention actions to protect ecosystems and conserve soil, facilitating aquifer recharge.

Safe management of mining waste

  • Reuse of tailings for mine fill: At San Julián, 40% of the tailings are reused as mine fill, reducing the amount of tailings sent to the dam.
  • Tailings dams: We have a team that specializes in the design, operation and safe closure of these key infrastructures. The governance structure is based on management committees for accountability, in addition to an independent tailings dam review panel that advises on safety and governance.
  • Cyanide handling: Gold operations at Fresnillo plc, Herradura and Noche Buena have International Cyanide Management Code certification.

Management systems:
Our operations and explorations conform to an ISO 14001 management system, complemented by the cyanide management code in operations focused on gold production. The current certification status of our facilities is as follows:

Energía Eólica

Wind energy reduces the carbon footprint of the energy needed to operate our plants.

Environmental certifications (US$ 000)
Unit ISO 14001 Clean Industry Environmental
Excellence
2018
International
Cyanide Handling
Code
Explorations Certified N/A N/A N/A
Juanicipio In process Certified
Level 1
- -
San Julián In process Certified
Level 1
- -
Fresnillo Certified Certified Level 2 - -
Saucito Certified Certified Level 2 Galardonada -
Ciénega In process Certified
Level 1
- -
Penmont Herradura Certified Certified Level 2 Galardonada Certified
Noche Buena Certified Certified
Level 1
- Certified

Transparency and accountability

  1. We report our environmental performance to Carbon Disclosure Project (CDP) climate change and water programs.
  2. Additionally, we report our performance in the GHG Mexico program. Fresnillo plc has earned GHG-2 recognition for reporting verified emissions according to the voluntary GHG Mexico program.

Clean technologies play an important role in optimum environmental performance and in strengthening social acceptance of the mining industry. We support the Colorado Cleantech Challenge, an expo of the latest innovations that brings mining companies together with clean technology solution providers. Our CEO, Octavio Alvídrez, is a member of the Lowell Institute for Mineral Resources at the University of Arizona, a world-class research institute that develops technology for addressing the environmental challenges of the mining industry. We are also members of the World Environment Centre (WEC), a think-tank that promotes sustainable development through the dissemination of best practices among its members and through capacity-building.

Los Jales Park, near Saucito unit

Los Jales Park, near Saucito unit

Community relations
Social acceptance is our greatest intangible asset. We form mutually beneficial relationships with the communities surrounding our operations, projects and explorations. Our engagement strategy covers the entire life cycle of the mine, from exploration to closure. Our social investment programs focus on the United Nations Sustainable Development Goals (SDG).

COVID-19 has raised expectations regarding companies’ contributions to society. In response we adapted our programs and initiatives to respond to the challenges our communities are facing.

Clean technologies play an important role in optimum environmental performance and in strengthening social acceptance of the mining industry.

Icon Education

Education

For health reasons, schools had to close during the pandemic, so we migrated our programs to digital platforms.

  • The Picando Letras program, developed with the support of IBBY México, opened a YouTube channel to assist families with reading activities, oral and written expression, and cultural activities. It also continued to develop “reading mediators” by training teachers and parents with short videos and advice through instant messaging apps.(https://www.youtube.com/c/picandoletras).
  • Innovec provided continued support for our STEM education activities. Using short videos and advice through instant messaging apps, parents and teachers were trained on how to give the course “COVID-19! How do I protect myself and others?” developed by the Smithsonian Education Center. This course teaches children about the basics of the coronavirus, and how to care for themselves and protect their families. The success of this course motivated us to produce this content in videos created especially for kids. We invite you to join the community of Plant Super-Researchers (https://cosip.tv/).
  • Peñoles-FIRST Robotics: The Peñoles FIRST robotic teams from Fresnillo (Jeunes d’argent) and Caborca (Cabots) organized to produce protective face shields for regional hospitals and groups in the communities.
  • Fresnillo – La Salle scholarships: Recipients continued their studies remotely at La Salle Laguna.
  • Book donation in partnership with Larousse: With the campaigns “Imagine, create and transform” and “Reading is believing, let’s grow together,” in January 2021 we distributed more than 41,000 books in our communities, donated by Larousse.
  • Flute without border: We streamed a live Christmas concert by flautist Elena Durán on YouTube for our people and communities.
  • Educational internet: We launched a pilot project to assess educational internet technology for communities with limited access to telecommunications. The results will be useful in designing projects for social investment in educational internet.

41,000

books donated in partnership with Larousse in January 2021.

Programas Sociales

Fresnillo social programs align with the United Nations Sustainable Development Program.

Icon Health

Health

  • We shared measures and recommendations with our communities on how to limit the spread of the COVID-19 virus.
  • We made strategic donations to hospitals and healthcare professionals that serve our communities, especially donations of ventilators and personal protection equipment.
  • In communities neighboring our operations, we organized campaigns to distribute 550,000 N95, surgical and handmade facemasks, and also instructed people about their correct use.
  • We organized rapid testing campaigns in communities to promptly detect contagion.
  • We cooperated with authorities in the municipalities of Fresnillo and Zacatecas by lending a plot of land where medical service could be expanded during the pandemic.
  • We donated basic food supplies to the most vulnerable members of our communities.
  • In cooperation with the authorities, we helped sanitize public spaces in our communities.
Icon Water

Water

  • Rainwater collectors: We conducted a diagnosis of 300 rainwater capture systems in San Julián, providing recommendations to users and planning future interventions.
  • We brought water tank trucks to communities in Sonora who were dealing with a pump failure emergency at their underground wells. This provided much-needed water for hand-washing, which is crucial to reduce contagion.
Icon Decent Work

Capabilities
improvement

  • Enterprising together: The Entrepreneurs program migrated to remote learning mode with the support of ProEmpleo Mexico City, serving participants from all our operations and projects like Rodeo.
  • Mining Clusters: Program designed to develop and strengthen supply chains and regional services, increasing economic benefit in the states of Zacatecas, Chihuahua and Sonora. Clusters are also an effective way of relating to key publics, like state governments.

Ethical culture and diversity

Ethics
We aspire to a well-established ethical culture that is embodied in our behavior and actions. Operating according to ethical standards is key to mitigating the risks of corruption, workplace accidents, conflicts with communities and environmental accidents.

Our program, Step Forward for Ethics aims to implant the winning behaviors of transformational leadership, behaving ethically, building trust, and leveraging diversity. In 2020, we reinforced the training of non-unionized personnel with the interactive course Step Forward for Ethics designed by the University of Arizona. We also applied the Ethisphere ethical culture survey.

Diversity
We implemented a strategy to boost women’s participation in Fresnillo plc: the strategy was designed, targets set, and we joined the Aequales network. We participated in the PAR ranking organized by Aequales and ITAM in Mexico, which gave us a preliminary assessment of areas of opportunity for bringing in more women.

Based on the lessons of the University of Arizona Diversity Survey, we identified unconscious bias as one of the chief barriers to leveraging diversity. Also, inspired by international diversity and ethnic inclusion movements, we trained 300 leaders through a course on “Diversity, equity and inclusion,” given by professors from the University of Arizona.

Awards
Fresnillo plc is a member of the FTSE4Good Index. In Mexico, we have received the Ethics and Values Award from Concamin and the Socially Responsible Company Award from Cemefi. Operations at El Saucito and Herradura received the Environmental Excellence Award from Profepa. Fresnillo plc currently holds the distinction of being one of Ethisphere’s Most Ethical Companies, and ranks second in the Corporate Integrity 500 Index, organized by Transparencia Mexicana, Mexicanos Unidos contra la Corrupción, and Expansión magazine.

300

leaders trained through the course "Diversity, equity and inclusion, given by the University of Arizona.

FTSE4Good
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.

logo ESR
logo ES
logo Bolsa Valor
logo FTSE for good