Kinross Gold Corp. (TSX:K) (NYSE:KGC) published its 2022 Sustainability and ESG Report detailing significant progress in strengthening its environmental, social and governance strategy.
The 62-page report outlines Kinross’ comprehensive approach to responsible mining and its focus on three pillars: workforce and community, natural capital, and climate and energy. Performance targets are integrated into the business.
“Sustainability is a critical component of our business and every facet of our operations at Kinross,” said CEO J. Paul Rollinson. “Building on our solid foundation, we have updated our ESG strategy, focusing on key areas with short and long term targets. Our sharpened focus will enhance transparency, collaboration and responsibility, generating long term value for stakeholders.”
To strengthen oversight, Kinross established an ESG executive committee reporting to the board of directors. Kinross also increased the weighting of ESG metrics in executive short-term incentive compensation to 25 per cent, focusing on the strategy update, diversity, Tasiast solar plant, climate studies and supply chain.
Kinross obtained external assurance on conformance with the World Gold Council’s Responsible Gold Mining Principles. Selected ESG metrics were also externally assured. A human rights task force is developing a 2023 action plan.
Workforce and community highlights include stable low injury rates and economic benefits of $2.9 billion to host countries, including $1.7 billion in wages and $244 million in community support. Since 2010, benefits total $44 billion. Local employment is 99 per cent, 87 per cent of management.
Female participation in the workforce reached 13.3 per cent, the highest in five years. Kinross builds open relationships with Indigenous groups to understand mutual interests.
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Natural capital highlights include 30 years of no reportable tailings incidents. Tailings governance increased to a three-member independent review panel for Paracatu mine and two members for other sites. Water intensity declined 8 per cent due to more production and lower Paracatu water storage. Kinross works with Trout Unlimited on conservation projects. It has protected 13,620 hectares, mostly at Paracatu.
The climate strategy targets 30 per cent lower emissions intensity by 2030 and net zero by 2050. Emissions and energy intensity improved with renewable energy up to 22 per cent from 18 per cent, and 63 per cent of electricity from renewables. Kinross implemented 11 efficiency projects, offsetting 1 per cent of emissions and saving $7.5 million.
Kinross received top ESG ratings from S&P, MSCI and the Globe and Mail and it has won environmental awards in Alaska and Nevada.
Kinross operates mines and projects in the U.S., Brazil, Chile, Ghana, Mauritania, and Russia. Its focus is operational excellence and balance sheet strength to deliver shareholder value.
Company stock went up by 0.14 per cent on Tuesday to $7.13 on the Toronto Stock Exchange.
