102-18
In support of its corporate governance structure, Peñoles has a Corporate Integrity Manual, which along with the Code of Conduct is available to the public at www.penoles.com.mx.
The Corporate Integrity Manual covers aspects such as prevention, compliance, oversight and accountability, for the purpose of avoiding acts stemming from administrative failures (e.g. collusion, conflicts of interest, influence-peddling, corruption and others). It applies to all employees in their relations with outside parties, particularly public agencies and government employees, in keeping with articles 24 and 25 of the General Law on Administrative Responsibilities and best corporate practices applicable to Peñoles.
The Corporate Integrity Manual also explains the corporate vision, mission and corporate values, has general notes on the organizational structure, the corporate leadership scheme, training and communication programs and mechanisms for evaluation, verification and follow-up in complying with internal and external regulations applicable to the group’s companies.
For more information about Peñoles corporate governance, see our 2020 Annual Report, available on our website at www.penoles.com.mx, Corporate governance section.
In 2021
we will be defining the priority SDG for Peñoles, setting targets and proactive measures according to the urgency of the situation and the influence of the organization.
Personnel at Capela unit
Our sustainability performance is described in each of the chapters of this report, and our contribution to achieving the SDG is found in the table comparing GRI and SDG standards, in the section entitled About this report.
We consider sustainability to be a business strategy, one that generates shared value and trust among our stakeholders.
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Our products are indispensable for achieving sustainable development in keeping with the United Nations 2030 Agenda. This awareness compels us to conduct our activities harmoniously, pursuing not only economic goals but the quality of life of our people and the development of neighboring communities, while preserving the environment. With this, our intent is to meet the present needs of our stakeholders without compromising the possibilities of future generations.
In 2019, we took on the task of relating our own significant impacts and material issues to the priority goals contained in the 2030 Agenda of the Sustainable Development Goals (SDG). We remain convinced that our products are indispensable for development and quality of life.
In 2021, we will be defining the priority SDG for Peñoles, setting targets and proactive measures according to the urgency of the situation and the influence this organization can have.
The general guidelines for guaranteeing sustainable development throughout or value chain are the following:
15th
United Nations Global Compact Communication on Progress.
1. Morning view at Met-Mex plant; 2. Personnel, Sabinas unit.
OUR SUSTAINABLE DEVELOPMENT POLICY
It is Peñoles’ policy to guarantee continuous, productive, safe operations, respectful of the environment, communities and health in the context of our operations, based on a culture of protection and prevention, enriched through communication with and participation by employees and their representatives.
Our operations must be managed under a system of comprehensive administration subject to continuous improvement, in keeping with international standards, which includes the elimination of dangers and reduction of risks, and compliance with all laws and with the commitments we assume toward our customers and to other stakeholders.
We try to meet the present needs of our stakeholders without compromising the possibilities of future generations.
Our supply chain includes sustainability practices that take into account the full life cycle of our products, from supply of raw materials and our operations through marketing and sale. It also considers all the phases of our operations—a lifecycle that covers every phase from exploration, research and development to project construction, operation and progressive restoration, and closure of operations.
According to the general guidelines, we implement institutional action by area:
INSTITUTIONAL OBJECTIVES BY AREA
ENVIRONMENT
HEALTH
SAFETY
COMMUNITY
CUSTOMERS AND
SUPPLIERS
HUMAN RESOURCES
INTEGRITY AND
COMPLIANCE
Risk management
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The volatile nature of the markets and the business climate pose significant challenges to companies’ existence and success. The growing complexity under which companies operate today has caused a steady rise in the level of risk in all areas of business management and commercial activity. As a result, risk management discipline and practices have gradually been extended to various sectors and industries, and in companies of all sizes.
Due to the nature of our business and the competitive climate in which we operate, Peñoles has an obligation to identify, weigh and manage risks in pursuit of our strategic goal of creating and protecting value for our stakeholders. To this end, we developed a Corporate Business Risk Management Manual.
All the organizational risks are contained in a database where they are classified by topic, monitored and compared with external and internal reports. We also have a descriptive catalogue of the risks affecting the entire business, which are reviewed annually and presented, along with the strategic plan, to directors of both Peñoles and BAL. Our greatest risks and opportunities are: macroeconomic evolution and impact on prices and inputs; potential government action; exploration—new deposits and replenishment of reserves; contractors; negative perceptions of the industry and social problems with the community; access to land and concessions; capital projects; safety; human resources; union relations; laws and regulations; health; digital effectiveness and innovation; major environmental incidents; and cybersecurity.
Peñoles defines emerging risks as a new manifestation of risk that cannot yet be fully evaluated; risks that are to a certain extent known but whose materialization or impact are uncertain; or risks of which the company is unknown but which may in the future have significant implications for its ability to fulfill its strategic plan.
CLIMATE CHANGE
2020 was the hottest year on record for the planet earth, and some countries have closed ranks in their commitment to meet the goal of achieving zero net emissions by mid-century.
Commercial impact: Climate will go from being a matter of global cooperation to a scenario of global competition for a range of clean energies.
Actions: As key actors participating in the extractive industry, we recognize our responsibility to incorporate renewable energies and clean technology into our energy mix.
GEOPOLITICAL UNCERTAINTY
In many countries, domestic policy has been a subject of intense division and setbacks in geopolitical issues, leading to volatility in the costs of inputs and services.
Commercial impact: A trade war or armed conflict would impact the prices of commodities, inputs and/or services.
Actions: We have begun to monitor the geopolitical climate to visualize and anticipate trends in the markets where Peñoles operates.
Peñoles defines emerging risks as a new manifestation of risk that cannot yet be fully evaluated; risks that are to a certain extent known but whose materialization or impact are uncertain.
Sunset at Milpillas unit in Sonora
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.
