Sustainability
Touching people’s lives
Mining with Pride and Purpose
As responsible and conscious miners, we believe that mining can create long-term value, not only for our shareholders, but for all our stakeholders: employees, suppliers, communities and host countries… To achieve this, we optimize our efforts toward robust governance, focused risk and opportunity management, operational excellence, and transparency.”
Julien Baudrand, Senior Vice President, Sustainability
Sustainability is an integral part of the Company’s business framework, which is defined by its vision, mission and values.
Fortuna sees sustainability as a long-term value creation for all stakeholders, maximizing benefits for our shareholders, employees, suppliers, communities, and more.
This understanding has led us to make a fundamental commitment to integrate sustainability into our business strategy, governance and day-to-day operations.
To achieve our Company’s vision and mission while respecting our core values, we developed a Sustainability Framework to guide us towards operational excellence. The framework is structured around three levels:
- Core Elements and Pillars,
- Organizational Components and
- Management Systems as described in the diagram below.
Our Sustainability Framework
1
Core Elements and Pillars
Our Sustainability Framework is made up of three core elements: Environment, Social and Governance (ESG), and six pillars that support them.
Environment
- Environment
Social
- Communities
- Occupational Health and Safety
- Human Resources
Governance
- Systems and Disclosure
- Human Rights and Ethics
Core Elements and Pillars
Environment
Proactively manage environmental risks associated with our activities, with the primary goal of attaining zero harm.
Environment
Minimize our impact on the environment to preserve it for future generations.
Social
Create a culture of health, safety and social responsibility, a safe and supportive workplace, and develop constructive relationships with our stakeholders.
Communities
Be a catalyst for sustainable development independent of the presence of the Company in the community.
Occupational Health and Safety
Demonstrate commitment in everything we do.
Human Resources
Attract and train a workforce that draws on the local stakeholder community.
2
Organizational Components
Our Sustainability Framework is composed of four organizational components:
Functional Governance
Sustainability Strategy
Risk Management
Metrics And Targets
For each component, key operating rules are defined and must be implemented to ensure the effective implementation of our business approach (mission, vision and values).
Organizational Components
Functional Governance
To ensure an operational governance of sustainability matters at all levels of the organization, the Company has defined mandates, responsibilities, accountabilities, policies and tools related to sustainability-related risks and opportunities covering all its business units. At Fortuna, we consider that the following key elements of operational governance shall be implemented:
- Sustainability Committees at different levels of the organization, including: (i) Board of Directors, (ii) corporate management, (iii) regional and (iv) operational (subsidiary) level. Committee meetings are scheduled on a regular basis and, at the Board and corporate level are governed by a specific charter, which explicitly mentions the committee’s duties and responsibilities, the oversight of key material issues related to sustainable development, such as safety, climate change, human rights, community relations, water, tailings and other material issues as appropriate.
- Financial Incentives implemented as long-term and short-term incentives at corporate and subsidiary levels, and are tied to the achievement of sustainability key performance indicators.
- Accountable Executive formally identified for ESG and sustainability matters from the Executive leadership team and reports directly to the CEO or CFO. The Accountable Executive leads the Company’s development and implementation of sustainability and ESG strategy in order to maintain the value of the Company’s assets, and to improve the long-lasting quality of the Company’s operations while addressing key stakeholder expectations.
- Corporate Policies communicate the philosophy and expectations of our organization. New or revised policies are managed through an internal process that includes the Board of Directors and the Accountable Executive. The policies are disclosed publicly, and employee awareness-raising sessions on the policies are held periodically.
- Corporate Standards communicate the rules and requirements applicable to all processes and operations throughout the organization. They apply to all directors, officers and employees of the Company and its subsidiaries.
- Disclosure and Reporting ensures transparency on our sustainability governance, management systems and performance using recognized materiality assessment, disclosure and reporting guidance such as from International Financial Reporting Standards (IFRS), International Sustainability Standards Board (ISSB), Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI) and other relevant disclosure and reporting initiatives recognized by the mining sector. An annual sustainability report is published and made public in the second quarter of each year, in addition to any other required regulatory disclosure.
Sustainability Strategy
Based on identified sustainability-related risks and opportunities that can reasonably be expected to affect the Company, a sustainability corporate strategy is developed to address material and/or important issues. At Fortuna, our Sustainability Strategy is based on the following key elements:
- Alignment and Integration of the Sustainability Strategy within the vision and mission of the Company and the core elements and pillars of this Sustainability Framework, and the Company’s overall strategy.
- Time Frame for implementing the strategic plan, which is defined over a period of 3 or 5 years.
- Objectives and Measurement are defined with specific, measurable, achievable, relevant and time-bound (SMART) goals that align with the Company’s mission and vision.
- Target defines a desired outcome or result.
- Approach and Measurement: The strategy defines how the objectives and targets will be achieved and how they will be measured, reported and reviewed.
Risk Management
The identification, assessment, prioritization, monitoring, and communication of sustainability-related risks and opportunities is integrated into the Company’s Enterprise Risk Management (ERM) management process. At Fortuna, we consider the following to be the key elements of Sustainability Risk Management:
- Alignment with Sustainability Strategy. Risk Management is part of strategic planning and execution; it is not separate from the strategy.
- Documented Processes and Related Policies. The process to identify, assess, prioritize and monitor sustainability-related risks and opportunities follows a pre-determined methodology set by the Company’s governance policies, which focus on ensuring a consistent approach towards managing and overseeing risk.
- Risk Response Plans. When residual risks are above the organization’s risk acceptability, actions, considering an ALARP (as low as reasonably possible) approach, are implemented to mitigate or eliminate risks.
- Monitoring and Reporting. Risks, opportunities and action plans are regularly monitored, and progress and changes are reported in accordance with defined processes and policies.
Metrics And Targets
The Company develops targets and/or performance indicators, which are required to meet its objectives in relation to its sustainability-related risks and opportunities. This includes monitoring the progress towards any targets the entity has set, and any targets required to be met by law or regulation. At Fortuna, we consider the following are the key elements in setting Sustainability Metrics and Targets:
- Alignment with Sustainability Strategy and Risk Management. Metrics and targets are used to appreciate the desired outcome or result expected of the strategy.
- The Metrics identified, used and monitored for each sustainability-related risk and opportunity that could reasonably be expected to affect the Company.
- The Method used to calculate the metric and the inputs to the calculation, including the limitations of the method used and the significant assumptions made.
- The Targets are established to track progress toward achieving strategic goals. When setting these targets, the following factors should be considered: the use of quantitative or qualitative measures, period of measurement, the period from which progress is assessed, milestones and interim targets, performance relative to each target, an analysis of trends, any target revisions and the rationale behind those revisions.
3
Management System
Key elements of our Management System must be implemented at an operational level. At Fortuna, we consider that the following 17 key elements need to be part of our Sustainability Management Systems.
1.
Leadership and Commitment
2.
Role, Responsibilities and Accountabilities
3.
Risk Management
4.
Legal and Other Compliance
5.
Objectives and Planning
6.
Awareness, Training and Competence
7.
Communication
8.
Documents and Standardization
9.
Operational Control
10.
Management of Change
11.
Contractor Management
12.
Emergency and Crisis
13.
Monitoring, Measurement and Evaluation
14.
Audit
15.
Management Review
16.
Incident Management
17.
Nonconformity and Corrective Action
Management System
1.
Leadership and Commitment
The Company’s Leadership is accountable and responsible for sustainability results and the implementation of management systems in all operations, activities and processes. The Leadership is responsible for defining policies, standards and procedures, leading by example, setting objectives and providing sufficient resources for the system and controls implementation to ensure the expected compliance.
2.
Role, Responsibilities and Accountabilities
All workers must have well-defined responsibilities and accountabilities. Fortuna and all subsidiaries must ensure that all workers are fully aware of sustainability responsibility according to their role in the Company.
3.
Risk Management
All planning and decision-making must be made under risk evaluation to ensure that activities and operations will have risks under control. All subsidiaries must have a process implemented to identify, assess and manage all risks related to sustainability.
4.
Legal and Other Compliance
The Company conducts its business in accordance with the applicable legal and regulatory requirements in the jurisdictions where it operates. The subsidiary leaders are responsible for considering identification, assessment and compliance management of the sustainability-related requirements.
5.
Objectives and Planning
The Company has strategic objectives and targets that drive its mission in all levels of the organization. Yearly the Company’s Leadership updates the annual objectives considering: (1) operational performance improvement, (2) full implementation of sustainability policies, (3) key items of the sustainability global strategy and (4) applicable requirements identified by the Sustainability Management System.
6.
Awareness, Training and Competence
The Company will ensure that workers demonstrate competencies prior to being authorized to execute any activity under the Company’s management. Workers must be aware of the risks and trained to comply with all of the Company’s and subsidiaries’ sustainability standards, procedures and legal requirements, in accordance with their role in our organization.
7.
Communication
The Company and all subsidiaries must ensure an effective process for regular internal and external communication regarding sustainability to stakeholders at all levels, considering workers, interested parties, relevant communities, contractors and visitors to the Company’s sites.
8.
Documents and Standardization
All sustainability policies, standards, procedures and relevant documentation are managed, maintained and disclosed by a management system, ensuring that they are updated and available to workers and leaders, and used in the Company’s training sessions.
9.
Operational Control
The risk management process establishes the controls, requirements and rules with which all operations and activities under the Company’s management must comply. All subsidiaries and operations must establish and implement controls for sustainability risks. The Company’s corporate Leadership may establish requirements that must be followed by all operations, such as critical control technical standards for safety, tailings management, water management and others.
10.
Management of Change
Internal and external changes can impact the organization’s sustainability risks. Changes can be under installations (equipment change and acquisition), technology (new ore treatment or material input), processes (change in the procedures or variables outside the original process range) and people (organizational structure, role changes), and they can be temporary or permanent. All the subsidiaries must identify and assess the risks of the changes before implementation, and manage their impacts before, during and after the change implementation.
11.
Contractor Management
All subsidiaries must ensure that the sustainability risks associated with contractors are managed and controlled to ensure compliance with the corporate and subsidiaries’ requirements. All major contractors, as defined in the corporate standard, are required to demonstrate sustainability competence.
12.
Emergency and Crisis
All subsidiaries must ensure prevention, preparedness, response and recovery from potential emergencies and/or crises that may impact or jeopardize business continuity, implementing established resources and plans. The Corporate Crisis Management Team can be activated in accordance with the corporate standard.
13.
Monitoring, Measurement and Evaluation
The Company must monitor sustainability criteria and indicators in all operations to measure the effectiveness of the management systems and controls implemented, and to evaluate the overall performance of the organization.
14.
Audit
The Company and all subsidiaries must effectively implement and maintain periodic audit processes to measure compliance with Sustainability Management System requirements.
15.
Management Review
Senior management at the corporate and subsidiary levels must review the organization’s Sustainability Management System at planned intervals, to ensure its continuing suitability, adequacy and effectiveness.
16.
Incident Management
At Fortuna, all operations leaders are responsible for ensuring that all incidents are reported, recorded and investigated and corrective actions are taken to prevent recurrence of similar incidents. All subsidiaries must learn from their own incidents and significant incidents in other subsidiaries.
Our Governance
Good governance starts at the board level, flowing through the entire organization and ensuring the highest levels of accountability.
Our Sustainability Factors
What is important for Fortuna Mining? Where can we add the most value?
Our Disclosure
Provision of expected, timely and quality information is essential to transparency and building trust with our stakeholders.
Our Stories
How responsible mining can go beyond “Zero Harm,” produce net positive effects for society and touch people’s lives.