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Page 1: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

RMI Report2020Summary

English version

Page 2: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and
Page 3: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

RMI Report 2020Summary

Page 4: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

2 RMI Report 2020 | Summary

Acknowledgements

The Responsible Mining Foundation would like to thank all those who provided comments and recommendations subsequent to the RMI Report 2018 including mining-affected community members, representatives of local community associations, people’s movements, national and international NGOs, government bodies, industry associations, mining companies, multi-stakeholder initiatives, multilateral organisations, investors, academics, expert consultants and others.

RMF Expert Review CommitteeSonia BalcazarFritz BruggerLi LiGlen MpufaneLisa SachsPrabindra ShakyaIngrid WatsonLuc Zandvliet

FundersThe RMF wishes to thank its funders:Swiss State Secretariat for Economic AffairsThe Netherlands Ministry of Foreign AffairsThe Triodos Foundation

External Review PanelBritt BanksFritz BruggerPeter ColleyLiz McGrathAfshin Mehrpouya

Research PartnersSynergy Global ConsultingAmos Advisory

Report designOmdat Ontwerp, The Netherlands

RMI Report 2020

The RMI Report 2020 is an evidence-based assessment of 38 large-scale mining companies’ policies and practices on economic, environmental, social and governance issues.

The Report is produced by the Responsible Mining Foundation (RMF), an independent research organisation that encourages continuous improvement in responsible mining across the industry by developing tools and frameworks, sharing public-interest data and enabling informed and constructive engagement between mining companies and other stakeholders.

This Summary provides some overall results and extracts from the RMI Report 2020. The full results and individual company and mine-site reports are available at www.responsibleminingindex.org, in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish.

Responsible Mining Foundation

The Foundation supports the principle that minerals and metals mining should benefit the economies, improve the lives of peoples and respect the environments of producing countries, while also benefiting mining companies in a fair and viable way. The Foundation’s work and research reflect what society at large can reasonably expect from mining companies on economic, environmental, social and governance matters. As an independent foundation, RMF does not accept funding or other contributions from the mining industry. www.responsibleminingfoundation.org

Page 5: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

3RMI Report 2020 | Summary

What RMI measures

The RMI assessment covers 43 topics, grouped into six broad thematic areas, as shown below. The assessment focuses largely on company-wide policies and practices on economic, environmental, social and governance (EESG) issues, using three types of indicators (or ‘measurement areas’):

Commitment indicators assess the extent to which companies have produced formalised commitments, endorsed by senior management, and assigned responsibilities and resources to implement these policies.

Action indicators assess the extent to which companies are systematically putting in place measures to improve and maximise the potential EESG benefits and avoid, minimise or mitigate the negative EESG impacts of their activities.

Effectiveness indicators assess the extent to which companies are tracking, reviewing and acting to improve their performance on managing EESG issues.

In addition, the RMI assessment also includes a smaller set of mine-site indicators to assess mine-site-level actions on the following topics: local employment, local procurement, post-closure viability of communities, community grievances, worker grievances, air quality, water quality, water quantity, tailings management, and emergency preparedness.

RMI analytical framework

Transversal Issues

Measurement Areas

Them

atic

Are

as

Environmental Responsibility

Working Conditions

Community Wellbeing

Lifecycle Management

Business Conduct

Economic Development

Action(58%)

Effectiveness(28%)

Commitment(14%)

Human Rights Open Data Mine-siteGender

Page 6: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

4 RMI Report 2020 | Summary

Home countries, where companies are headquartered

Producing countries, where companies have mining operations

Mine sites selected for mine-site-level assessment

Other operational mine sites

Closed or suspended mine sites (known)

Company and geographic scope

Page 7: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

5RMI Report 2020 | Summary

For more maps, visit maps.responsibleminingindex.org

Companies assessed

Anglo AmericanAngloGold AshantiAntofagastaArcelorMittalBanpuBarrick Gold CorpBHPBuenaventuraBumi ResourcesChina ShenhuaCoal IndiaCODELCOERGEvrazExxaro ResourcesFirst Quantum MineralsFortescueFreeport-McMoRanGlencoreGold FieldsGrupo MéxicoIndustrias PeñolesMMGNavoi MMCNewcrest MiningNewmontNMDCNordgoldOranoPeabody EnergyPolymetalRio TintoRUSALSibanye-StillwaterTeckValeVedanta ResourcesZijin

Page 8: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

6 RMI Report 2020 | Summary

Risk of SDG-washing

It is good to see that companies are increasingly aligning their sustainability reporting with the SDGs. However this reporting is selective and risks the perception of SDG-washing as companies generally omit any mention of negative impacts potentially impeding the achievement of these internationally agreed objectives. It is essential that an honest picture emerges of the true challenges the mining sector faces in its support of the SDGs.

Key findings

Significant gaps remain with society expectationsThe performances of even the best-scoring companies fall considerably short of society expectations in all six thematic areas. Stronger efforts are required by all companies to ensure their practices are managed effectively, in light of society expectations and the SDGs.

Some signs of progress, but mostly commitmentsSince the RMI Report 2018, more companies have made and disclosed formal commitments on some economic, environmental, social and governance (EESG) issues. A few companies have developed new or stronger management standards. Yet many companies show little sign of movement and much needs to be done to translate corporate commitments and standards into successful business practices.

Effectiveness requires persistenceMost companies are still not able to demonstrate that they track and publicly report on how effectively they are managing EESG issues. Even fewer companies show evidence of reviewing their performance and taking responsive actions where necessary. Once commitments are in place it takes persistence to Plan-Do-Check-Act.

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Page 9: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

7RMI Report 2020 | Summary

It can be done

Although individual company results are generally very low, collectively the companies prove that society expectations are achievable. If one company were to attain all the highest scores seen for every indicator, it would reach over 70% of the maximum achievable score. Similarly for a mine site in the mine-site assessment, achieving all the best scores recorded would enable it to reach over 80%. Each company and mining operation is encouraged to adopt the responsible practices already being demonstrated across the sector.

External requirements drive performanceStronger-performing and more transparent companies tend to be subject to specific requirements set by investors or producing country or home country governments. For example, the investor-led request for disclosure of information on tailings storage facilities has generated much more publicly available data of critical interest to shareholders, debt issuers, insurers and governments.

Mine-site data still missing

Many mine sites do not disclose site-level data on issues of strong public interest for communities, workers, governments and investors. And very rarely do mine sites evidence engagement with local stakeholders on EESG issues. To build trust with all stakeholders and reduce risks, companies will benefit from adopting responsible mine-site behaviour across all their operations and transparently sharing information.

Severe adverse impacts must be addressed urgentlyEvents such as the Vale tailings disaster in Brumadinho are harsh reminders of the unacceptable risks faced by many communities, workers and environments in mining areas. Such tragedies and other severe adverse impacts, including worker fatalities and attacks on human rights defenders, reflect very poorly on the industry as a whole and put into stark perspective any claims of responsible mining. The mining industry needs to prove that it prioritises ESG risk management over short-term considerations.

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Page 10: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

8 RMI Report 2020 | Summary

Economic Development

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AVERAGE SCORE

society expectations

Commitment( 1 indicator)

Action( 5 indicators)

Effectiveness( 1 indicator)

Score

Summary of company results

The 0.00-6.00 scale is the scoring scale used in the assessment, which measures company performances against society expectations. All company results are based on public domain data sourced by analysts or provided by companies. It is important to note that a low score may only reflect a lack of relevant information made publicly available by the company.

For full results, visit www.responsibleminingindex.org

Page 11: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

9RMI Report 2020 | Summary

Business ConductSummary of company results

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society expectations

The 0.00-6.00 scale is the scoring scale used in the assessment, which measures company performances against society expectations. All company results are based on public domain data sourced by analysts or provided by companies. It is important to note that a low score may only reflect a lack of relevant information made publicly available by the company.

For full results, visit www.responsibleminingindex.org

Page 12: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

10 RMI Report 2020 | Summary

Lifecycle Management

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Society expectationssociety expectations

The 0.00-6.00 scale is the scoring scale used in the assessment, which measures company performances against society expectations. All company results are based on public domain data sourced by analysts or provided by companies. It is important to note that a low score may only reflect a lack of relevant information made publicly available by the company.

For full results, visit www.responsibleminingindex.org

Page 13: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

11RMI Report 2020 | Summary

Community Wellbeing

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Action( 12 indicators)

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Summary of company results

Society expectationssociety expectations

The 0.00-6.00 scale is the scoring scale used in the assessment, which measures company performances against society expectations. All company results are based on public domain data sourced by analysts or provided by companies. It is important to note that a low score may only reflect a lack of relevant information made publicly available by the company.

For full results, visit www.responsibleminingindex.org

Page 14: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

12 RMI Report 2020 | Summary

Working Conditions

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Commitment( 1 indicator)

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Summary of company results

society expectations

The 0.00-6.00 scale is the scoring scale used in the assessment, which measures company performances against society expectations. All company results are based on public domain data sourced by analysts or provided by companies. It is important to note that a low score may only reflect a lack of relevant information made publicly available by the company.

For full results, visit www.responsibleminingindex.org

Page 15: RMI Report 2020 · in Chinese, English, French, Indonesian, Portuguese, Russian and Spanish. Responsible Mining Foundation The Foundation supports the principle that minerals and

13RMI Report 2020 | Summary

Environmental Responsibility

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1.00

2.00

3.00

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2.00

3.00

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2.00

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C

AVERAGE SCORE

Commitment( 2 indicators)

Action( 8 indicators)

Effectiveness( 5 indicators)

Score

Summary of company results

society expectations

The 0.00-6.00 scale is the scoring scale used in the assessment, which measures company performances against society expectations. All company results are based on public domain data sourced by analysts or provided by companies. It is important to note that a low score may only reflect a lack of relevant information made publicly available by the company.

For full results, visit www.responsibleminingindex.org

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14 RMI Report 2020 | Summary

Mine-site summary results

While most of the indicators in the RMI Report 2020 apply to company-wide policies or practices, ten very basic indicators have been applied at a mine-site level. Although not included in the company overall scores, these mine-site indicators help to assess the extent to which companies are consistently sharing disaggregated information and applying some basic corporate policies and systems throughout their operations.

For each company, approximately five sites were selected for assessment, and a total of 180 mine sites were covered by these mine-site indicators across a wide geographic distribution of 45 producing countries. Results for mine sites operated in Joint Venture between several companies are attributed equally to all co-venturers.

Disclosing site level information is an opportunity for companies to build trust, limit risk and show respect. The very low results show the stark reality that disaggregated mine-site-level information and action on these public-interest issues are mostly lacking.

Company Average Mine-Site Score (%) Company Average Mine-Site

Score (%)

Teck 28.0 Buenaventura 11.3

BHP 24.5 Peabody Energy 9.3

Polymetal 23.8 Coal India 9.0

AngloGold Ashanti 20.4 Orano 6.8

Glencore 20.4 Fortescue 6.1

Newcrest Mining 19.7 First Quantum Minerals 5.1

Rio Tinto 18.8 Exxaro Resources 5.0

Vale 18.7 Zijin 4.4

Newmont 18.6 Sibanye-Stillwater 3.3

MMG 18.3 ArcelorMittal 3.1

Vedanta Resources 17.4 Industrias Peñoles 1.7

CODELCO 17.2 Grupo México 1.0

Barrick Gold Corp 15.3 Evraz 0.7

Freeport-McMoRan 15.3 ERG 0.3

Gold Fields 15.0 RUSAL 0.3

Antofagasta 14.9 Nordgold 0.3

Bumi Resources 14.5 Banpu 0.0

Anglo American 13.8 Navoi MMC 0.0

NMDC 11.3 China Shenhua 0.0

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15RMI Report 2020 | Summary

The 0.0-3.0 scale is the scoring scale used in the mine-site-level assessment, which measures company performances against society expectations. All company results are based on public domain data sourced by analysts or provided by companies. It is important to note that a low score may only reflect a lack of relevant information made publicly available by the company.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Worker Grievances

130 MINE SITES SCORE 00.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Air Quality

141 MINE SITES SCORE 0

180 mine sites

Sco

re

0.0

0.5

1.0

1.5

2.0

2.5

3.0Local Employment

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Local Procurement

129 MINE SITES SCORE 0140 MINE SITES SCORE 0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Post-Closure Plans

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Community Grievances

121 MINE SITES SCORE 0125 MINE SITES SCORE 0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Water Quality

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Water Quantity

99 MINE SITES SCORE 0149 MINE SITES SCORE 0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Tailings Management

0.0

0.5

1.0

1.5

2.0

2.5

3.0

180 mine sites

Sco

re

Emergency Preparedness

149 MINE SITES SCORE 0

70 MINE SITES SCORE 0

24 EXCEPTIONS

For full results, visit www.responsibleminingindex.org

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16 RMI Report 2020 | Summary

Disclaimer

The findings, conclusions and interpretations within this Responsible Mining Index (RMI) Report 2020 do not necessarily represent the views of funders, trustees, and employees of the Responsible Mining Foundation (RMF), and others who participated in consultations and as advisors to the report.

This report is intended to be for information purposes only and is not intended as promotional material in any respect. The report is not intended to provide accounting, legal, tax or investment advice or recommendations, neither is it intended as an offer or solicitation for the purchase or sale of any financial instrument. In order to fully understand the methodology of the RMI Report 2020, the respective sections on the website should be consulted.

The RMI seeks evidence of companies’ policies and practices on economic, environmental, social and governance (EESG) issues, but does not seek to measure the actual outcomes achieved on EESG issues. Results are based only on evidence sourced from the public domain or provided by companies as open data. Whilst this information is believed to be reliable, no guarantee can be given that it is accurate or complete, nor does it preclude the possibility that policies and practices may exist, but which the RMI has not been able to consider for purposes of assessment. In this respect, the results of the low-scoring companies do not necessarily reflect a lack

of relevant policies and practices; as they may be due to a lack of public reporting by the companies, limitations in accessing information, and/or any difficulties in accessing the RMI company portal.

It should be noted that, prior to publication, all companies in the RMI were invited to check the factual accuracy of the contextual data and evidence upon which the RMI is based and to review company information in the RMI document library.

Country borders or names on maps do not reflect an official position of the RMF or anyone involved in its governance, employees or in service providers. Maps used are for illustrative purposes and do not imply the expression of any opinion on the part of the RMF, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Where needed, approaches used by the UN to present borders were followed.

Although every effort has been made to verify the accuracy of translations, the English language version should be taken as the definitive version. The RMI reserves the right to publish corrigenda on its web page, and readers of the RMI Report 2020 should consult the web page for corrections or clarifications. www.responsibleminingindex.org

Copyright notice

All data and written content are licensed under the Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).

Users are free to share and adapt the material but must give appropriate credit, provide a link to the license and indicate if changes were made. The licensed material may not be used for commercial purposes, or in a discriminating, degrading or distorting way. When cited, attribute to: “Responsible Mining Foundation (RMF), RMI Report 2020.” Images, photographs, and video content depicted on RMF websites are excluded from this license, except where noted.

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