Extract: Covalence Basic Resources Report 2009

© Covalence SA 31.08.2009 2

TABLE OF CONTENTS

1. SUMMARY 3

2. MAIN FINDINGS 4

3. FULL UNIVERSE (18 SECTORS)

EthicalQuote historical and progress; Bi-dimensional space 6

Volume, Positive and Negative news, Changes last year 8

4 groups of criteria, 45 criteria 10

Basic Resources vs 18 sectors: Groups of Criteria, Criteria 11

Basic Resources vs 18 sectors: Source groups; Regions 13

Basic Resources vs 18 sectors: regions of source 15

4. BASIC RESOURCES SECTOR ANALYSIS

HISTORY

Covalence Ethical Ranking, Details 16

EthicalQuote 2002-2008; Companies in bi-dimensional space 18

JUL 2008 - JUN 2009

Companies in bi-dimensional space 20

Volume, Positive and Negative news, Changes last year 21

Subsectors overview, 4 groups of criteria, 45 criteria 23

Recent changes among criteria groups, Evolution of criteria weight 25

Criteria in bi-dimensional space 29

ISSUES

Major issues 31

Climate Change 32

CSR Commitments 34

Community issues 36

Unions and strike 38

Water issues 40

Countries of action; Projects & Operations 42

SOURCES

Source groups; Recent changes 44

Regions of source; Recent changes 46

Countries of source; Most active sources 47

CRITERIA & ISSUES: DETAILS

1. Labour Standards 2. Wages 49

3. Social Benefits 4. Training & Insertion 51

10. International Presence 11. Joint Ventures 53

12. Economic Impact 13. Social Impact 55

18. Downsizing 26. Environmental Impact of Production 57

27. Product Human Risk 31. Product Environmental Risk 59

32. Waste Management 33. Eco Innovative Product 61

34. Information to Consumers 37. Social Sponsorship 63

38. Anticorruption Policy 40. Human Rights Policy 65

43. Social Stability 45. Lobbying Practices 67

5. SYNTHESIS

Criteria and Issues summary tables: risks and opportunities 69

Strategic comments 72

6. ANNEXES

Covalence company and methodology; original data 75

Detailed results 76

Extract: Covalence Basic Resources Report 2009

© Covalence SA 31.08.2009 3

1. SUMMARY

Identity Results Trend

Sector: Basic Resources Positive news: 894 Future →

Companies: 32 Negative news: 1094 Present →

Period: Jul 2008 - Jun 2009 Volume of information: 1988 Past →

Data updated: 30.06.2009 Avg. EthicalQuote 30.06.2008: 12

Report released: 16.08.2009 Avg. EthicalQuote 30.06.2009: 8

Jul 2008 - Jun 2009 change -4

Comparing the Ethical Ranking of 32 companies in the Basic Resources sector calculated from 01.01.2002 to 30.06.2009, Alcoa Inc is leading (#9 across 18 sectors and 541 companies), ahead of Rio Tinto (#14) and UPM-Kymmene Oyj (#151), while Freeport-McMoRan (#537), Grupo Mexico (#535), and Harmony Gold (#529) occupy the last positions.

Positive news (ethical offers) average Negative news (ethical demands) average

147; 16%

131; 15%

101; 11%

63; 7%62; 7%

40; 4%

34; 4%

33; 4%

30; 3%

27; 3%

27; 3%

25; 3%

24; 3%

21; 2%

20; 2%15; 2%

14; 2%12; 1%12; 1%

Alcoa IncArcelorMittalRio TintoXstrataBHP BillitonU.S. SteelUPM-Kymmene OyjAnglo AmericanWeyerhaeuserPOSCONewmont MiningInternational PaperStora EnsoBarrick GoldValeNippon SteelPeabody EnergyGold Fields LtdTeck ComincoKobe Steel Corp.Freeport-McMoRanNucor CorporationKinross GoldTenarisImpala PlatinumNorsk HydroHarmony GoldJFE HoldingsGrupo MexicoSumitomo Metal IndustriesSumitomo Metal MiningChina Steel

217; 20%

121; 11%

96; 9%

91; 8%71; 6%

61; 6%

54; 5%

53; 5%

39; 4%

36; 3%

34; 3%

26; 2%

25; 2%

22; 2%19; 2%

17; 2%16; 1%

15; 1%

14; 1%

14; 1%

ArcelorMittalRio TintoBHP BillitonBarrick GoldAlcoa IncNewmont MiningU.S. SteelXstrataAnglo AmericanFreeport-McMoRanStora EnsoPOSCOValeWeyerhaeuserGold Fields LtdGrupo MexicoTeck ComincoImpala PlatinumHarmony GoldTenarisUPM-Kymmene OyjPeabody EnergyChina SteelInternational PaperNorsk HydroNippon SteelSumitomo Metal IndustriesSumitomo Metal MiningKobe Steel Corp.JFE HoldingsKinross GoldNucor Corporation

Last year major positive issues regarding the Basic Resources sector have been: Climate Change | emissions, energy, etc.; Commitment | Policies, programs and initiatives; Community issues| health, family etc; Climate change energy; project; steel; Climate change carbon emissions; and program. Major negative issues: steel; Unions and strike; Job cuts creations; government; Legal issues; Water issues | usage, rivers, etc.; Community issues| health, family etc; and SRI governance. The most active criteria are shown below: Banking sector: Most active criteria, Jun 2008 - May 2009

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1 2 3 4 10 11 12 13 18 26 27 31 32 33 34 37 38 40 43 45

WORKING CONDITIONS

IMPACT OF PRODUCTION IMPACT OF PRODUCT INSTITUTIONAL IMPACT

Positive news (ethical offers) Negative news (ethical demands)

Extract: Covalence Basic Resources Report 2009

© Covalence 31.08.2009 67

43. Social Stability

Criteria Issues & Keywords Scores % total Trend

43. Social Stability

Community issues| health, family etc, Commitment |Policies, programs and

initiatives, government, project, community, steel, investment, Water issues | usage, rivers, etc., program,

Education support

Positives 39 4% Future →

Negatives 40 4% Present →

EQuote/vol --1/79 (-1%)

Past →

Criteria 43. Social stability describes when a company helps, or fails to help, promote local social stability in a community where it is active. A company may do this by offering training, subsidies, or by engaging in some other means of direct involvement in matters related to education, health, the environment, security.

Companies

Basic Resources sector: criteria 43. Social Stability, Jul 2008 - Jun 2009

History

Basic Resources: Equote, vol. on criteria 43, 2002 - 2009 (Jun)

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10

Positive news (ethical offers) Negative news (ethical demands)

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Volume of information EthicalQuote

Issues & Keywords Countries of action

0 5 10 15 20 25 30

Community issues| health, family etcCommitment |Policies, programs and …

governmentproject

communitysteel

investmentWater issues | usage, rivers, etc.

programEducation support

Legal issuesHEALTH ISSUES

forestlivelihood

CHILD ISSUESClimate Change | emissions, energy, etc.

safetyLeadershippartnership

commitmentpolicy

0 2 4 6 8 10 12

USAIndia

Global/n.a.Peru

GhanaCanada

IndonesiaChile

AustraliaSpain

South AfricaFranceGuinea

TanzaniaPhilipines

African continentEurope

BrazilLatin America

Papua New GuineaArgentina

Source countries

Basic Resources: criteria 43. by source countries, Jul 2008 - Jun 2009

Source groups

Basic Resources sector: criteria 43. Social Stability, Jul 2008 - Jun 2009

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AcademicsConsultant Enterprise Gov IndInternational org. Media NGO Trade union

Positive news (ethical offers) Negative news (ethical demands)

Media echo (Media / Other sources Ratio): 5

Extract: Covalence Basic Resources Report 2009

© Covalence 31.08.2009 76

5. ANNEXES

Contact us and get a quote:

Covalence Sector Reports are produced on a yearly basis. Price will be indicated upon request.

For more information, please contact: Marc Rochat, Marketing & Sales, marc.rochat@covalence.ch; phone: +41 (0) 22 800 08 55.

Covalence Company and Methodology

Company Methodology

> About Covalence > Methodology

> Team > Sources

> Clients > Criteria

> News > Universe

> Products > Publications

> Covalence in the News > History

EthicalQuote public version:

View the public version of Covalence EthicalQuote with daily updated curves and underlying data covering 541 companies within 18 sectors: http://www.covalence.ch/index.php/ethicalquote/?value=2

Original data

Data used for producing this report is available upon request. Price depends on the quantity of information used.