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ANGLOAMERICAN

S•E•A•TSocio-Economic Assessment Toolbox

Overview

AN INTRODUCTION TO THE ANGLOAMERICAN SOCIO-ECONOMICASSESSMENT TOOLBOX (SEAT)Improving the management of the social and economic

impacts of significant mining and industrial operations has

become an increasingly important public policy issue in recent

years. It is a critical element in the sustainable development

agenda. For any company in the natural resources business,

with potentially high local impacts and long investment

horizons, it is also an important risk management issue.

Where our operations deplete a natural resource we aim to

balance this consumption with an enhancement of the

human and social capital of the places in which we work.

This is not an exact science. Much of this enhancement will

occur through the normal process of job creation and of

paying taxes. Much is dependent upon the role of our host

governments. But, especially in our work in developing

countries, we are learning more about approaches that

improve the development opportunities that flow from our

operations. These include: seeking to maximise local job

opportunities through appropriate training programmes;

capacity building; catalysing community partnerships;

creative use of procurement; and small business

development as well as more traditional social

investment activities.

When we open a new operation, or carry out a major

expansion we routinely assess our social and environment

impacts. But many of our operations have anticipated lives

of 30 years or more and some pre-date such social

assessments becoming routine. This is where the SEAT

process comes in. It equips an operation better to

understand the dynamics of its impacts and, having

measured them, to manage them creatively. It is also a

valuable aid in the task of developing a social dimension to

long-term mine closure planning. It reflects the way we aim

to do business; by seeking to meet the reasonable

expectations of our key stakeholders.

Our ‘Good Citizenship’ Business Principles state that ‘we

seek to make a contribution to the economic, social and

educational well-being of the communities associated with

our operations’. SEAT is a significant investment by Anglo

American in helping our operations to live up to that goal. It

also has the capacity to enrich the Community Engagement

Plans which we are putting in place at all our major

operations and which are based on the importance of a

regular dialogue with our neighbours.

The SEAT process will not be relevant to all operations.

Some tools will have greater salience than others,

depending upon the local context. But we recognise the

business and the ethical case for working to minimise any

adverse impacts from our operations and for seeking to

ensure that our investment helps to improve the condition

of the communities associated with our businesses.

Tony Trahar

Chief Executive

CONTENTS

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1 . 1 O b j e c t i v e s 6

1 . 2 Status of the document 6

1 . 3 Key stages of the assessment and management process 6

1 . 4 Who is the SEAT process designed for? 6

1 . 5 Time commitment 6

1 . 6 Process statement 8

1 . 7 Relationship with other Anglo American guidance 1 2

1 . 8 Continuous improvement 1 5

1 . 9 S u m m a ry table of tools 1 6

1.1 OBJECTIVES This manual provides a process designed to assist Angl o

A m e rican (Anglo) operations to identify and manage th e i r

social and economic impacts (both positive and nega t i ve).

It also provides guidance on how to imp rove ove rall social

p e rfo rmance where this is necessary.

The process is aimed at ex i sting operations and has been

d eveloped as part of a ra n ge of initiatives to imp rove social

p e rfo rmance and to embed sustainable development concept s

i n to core business st ra tegies. These initiatives are a re s p o n s e

to growing ex p e c tations of imp roved social perfo rm a n c e

w i thin the natural re s o u rces and ex t ra c t i ve indust ries, as

re fl e c ted in the Global Mining Initiative, the 2002 Wo rl d

Summit on Sustainable Development and increased inve sto r

i n te re st in social and ethical issues.

It is intended, th rough the imp l e m e n tation of the SEAT

p rocess, that the long-te rm economic and social susta i n a b i l i t y

of the communities around Angl o’s operations will be enhanced,

and the basis for more sustainable part n e rships established.

Sta keholder enga gement is a vital part of the SEAT pro c e s s

and, as such, fe a t u res in many of the tools that have been

d eveloped. These tools have been designed to wo rk

i n d e p e n d e n t ly of each other and as a result dist i n c t

sta keholder enga gement activities have been developed fo r

the maj o rity of tools. In re a l i t y, when a comp re h e n s i ve

assessment is being pursued, sta keholder enga g m e n t

activities from many of these tools can effe c t i ve ly be

m e rge d . H ow this is done is best lef t to local discretion so as

to ensure an ef f icient process for the operation and to avo i d

sta keholder fa t i g u e .

The SEAT process will also assist operations to meet th e

o b j e c t i ves of Angl o’s ‘Good Citizenship’ Business Pri n c i p l e s ,

as th ey re l a te to community deve l o p m e n t .

Box 1.1 The Objectives of the SEAT Process

• To identify the key social and economic impacts

and issues which need to be managed.

• To assess existing initiatives, provide feedback

on their success and suitability, and identify where

i m p rovements might be made.

• To be a useful re s o u rce in developing a Community

Engagement Plan (see section1.7.2).

• To provide an analytical framework to assist operations

to assess their overall sustainability, especially in

balancing the extraction of natural re s o u rces with

an enhancement of social and human capital.

• To ensure that “best practice” is captured and

s h a red within Anglo.

• To provide a planning tool for managing an

operation or plant’s social and economic impacts,

including social investment and mine closure .

• To gather and collate data for corporate social

reporting purposes, as well as development of

indicators that are relevant to local conditions.

OVERVIEW OF THE A N G LO AMERICAN S O C I O- E C O N O M I CASSESSMENT TOOLBOX (SEAT)

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Figure 1.1 Key Stages and Steps in the SEAT Process

1.4 WHO IS THE SEAT PROCESS DESIGNED FOR?The SEAT process has been designed for use by Anglo sta ff

w i th support, where re qu i re d , f rom local ex p e r ts such as

academics or local consultants. The focus has been on

e n s u ring that the tools are easy to understand and to apply.

E ven with ex p e rienced in-house re s o u rces, th e re may be

i n stances where it is appro p ri a te to draw on ex te rn a l

ex p e rtise to assist in meeting the objectives of a specifi c

tool. Exte rnal input may also be useful in validating th e

objectivity of the appro a ch and findings, building bri d ge s

w i th specific sta keholder groups and in contri b u t i n g

p e rs p e c t i ve and ex p e rt i s e .

1.5 TIME COMMITMENT The SEAT process is designed to provide a snap shot of local

social and economic issues re l a ted to any Anglo operation.

As a ‘snap shot’, the time commitment for this process will be

s i g n i fi c a n t ly less than for a full Social Impact Assessment (SIA).

The pilot studies carried out to te st the assessment pro c e s s

re qu i red the equ i valent of eight we e ks of a pers o n’s time

over a th ree month period, indicating that when the pro c e s s

is rolled out, re qu i rements on local management should not

be exc e s s i ve .

It is sugge sted that operations may wish to carry out such an

assessment on ave ra ge eve ry th ree ye a rs, but may wish to

u p d a te some data annually.

1.2 STATUS OF THIS DOCUMENTI mplementing the SEAT process is not mandato ry. It should

be used as a tool for imp roved social perfo rmance, and fo r

b ringing operations in line with best practice in this f i e l d .

Not all operations will need to adopt the to o l b ox in its

e n t i ret y: some will already be undertaking elements of th e

p rocess and not all ta s ks are re l evant to all social contexts.

The assessment process has been designed to address social

and economic issues in developed and developing countri e s ,

and to span the full ra n ge of Anglo activities. Howeve r, th e

re l evance of some of the tools will va ry, depending on th e

local context. Not all need to be deployed when

i mplementing the SEAT pro c e s s .

D u ring 2002, the SEAT process was piloted at th ree Angl o

o p e rations in Au st ralia, Brazil and South Africa. In each

case, the unit concerned found the process to be va l u a b l e .

The assessment process has drawn ex te n s i ve ly upon ex i st i n g

‘ b e st pra c t i c e’ within the Gro u p .

1.3 KEY STAGES IN THE ASSESSMENT ANDMANAGEMENT PROCESSThe SEAT process is divided into four key sta ges, as

s u m m a rised below, each comp rised of a number of steps

and associated tools. These tools, or guidance notes, have

been developed to guide operations th rough the process.

• Sta ge 1: Pro filing the Anglo operation and associate d

communities and identify key issues (positive and nega t i ve ) .

• Sta ge 2: Identifying and assessing socio-economic

i mpacts and sharing results with sta ke h o l d e rs. This

p rocess should include impacts that can be measured

in both qu a n t i ta t i ve and qu a l i ta t i ve te rms.

• Sta ge 3: Developing management responses to key issues,

including planning for eventual closure .

• Sta ge 4: Re p o rting the results of the assessment.

The key sta ges and associated steps are pre s e n ted in

Fi g u re 1.1.

A summary of the tools supporting each sta ge is pre s e n ted in 1.9 a t

the end of this document These tools have been developed afte r

ex te n s i ve consultation within Anglo Ameri c a n

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Figure 1.2 Summary of the SEAT Process and Supporting Tools

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1 . 6 PROCESS STAT E M E N T

1.6.1 Process Flow DiagramFi g u re 1.2 summarises the sta ges, steps and tools conta i n e d

w i thin the assessment pro c e s s .

1.6.2 Stage 1: Profile the Anglo Operation andAssociated Communities and Identify Key IssuesSta ge 1 of a ro b u st assessment process invo lves developing a

p ro file of an operation and of its neighbouring communities.

This includes identifying sta ke h o l d e rs and their

key concern s .

For the purposes of this process, Sta ge 1 has been divided

i n to two ste p s :

• Step A: P ro file the Anglo American opera t i o n .

• Step B: P ro file the community and commence dialogue

w i th key sta ke h o l d e rs to identify key issues.

D eveloping a Pro file (Step A)

The nature of the inte ractions bet ween an operation and

the surrounding env i ronment is what results in imp a c t s ,

b o th positive and nega t i ve. The info rmation ge n e ra te d

th rough the pro filing exe rcise can also be used to help

ex te rnal sta ke h o l d e rs understand more about

an operation and the contribution it makes to local

d evelopment. The type of info rmation re qu i red includes:

• For an opera t i o n: numbers of people emp l oyed (Anglo

and Contra c to rs), skills of emp l oyees, main activities

u n d e r ta ken on site, annual output and turn ove r, ta xe s

paid (where appro p ri a te), cert i fication systems et c .

• For the neighbouring communities: to tal population,

a ge and gender ratios, ex tent of social and economic

i n f ra st ru c t u re, fo rms of livelihood, we a l th dist ri b u t i o n ,

l evels of education and training et c .

If good pro f iles of the operation and neighbouri n g

communities do not already ex i st, Steps A and B prov i d e

tools to cre a te them (see Box 1.2). In instances where an

o p e ration already has such pro files, then the info rm a t i o n

re qu i rements sugge sted in this assessment process can be

used as a ch e ck for comp l ete n e s s .

Some operations will have carried out an SIA as part of th e i r

initial licensing pro c e d u res. SIAs are like ly to cover th e

i n fo rmation re qu i rements sugge sted in this assessment

p rocess, but in much gre a ter detail. Howeve r, some of th e

i n fo rmation ga th e red may be out of date and may re qu i re

updating. It may also be helpful to ex t ract the essential

socio-economic data from the SIA and tra n s fer it into a

m o re user- f ri e n d ly fo rmat for updating and ongoing use.

Dialogue Wi th Key Sta ke h o l d e rs (Step B)

Identifying who an opera t i o n’s sta ke h o l d e rs are and th e i r

issues of concern, helps develop an understanding of th e

p o s i t i ve and nega t i ve impacts of an operation, and how

these impacts may affect sta ke h o l d e rs diffe re n t ly. This

includes issues that are linked to the operation, as well

as those that sta ke h o l d e rs perc e i ve to be linked to it.

K n owl e d ge of these issues enables them to be addressed

and managed, th e re by helping to minimise ri s k.

It is imp o rtant that the sta ke h o l d e rs invo lved in the pro c e s s

a re re p re s e n ta t i ve of the full ra n ge of affe c ted people with i n

a community, and that the te ch n i ques used to fa c i l i ta te th e i r

i nvo lvement are appro p ri a te to the local context.

M o st significant Anglo operations already have deta i l e d

sta keholder dialogue arra n gements (for exa mp l e ,

Community Enga gement Plans). Howeve r, to assist opera t i o n s

f u rth e r, this assessment process contains a number of to o l s

(see Box 1.3) designed to deliver on these objectives. These

tools will also provide the info rmation re qu i red to comp l ete

( 1 ) No te: Step B tools provide guidance on both community pro f iling and

c o n s u l tation. For the sake of clari f ication, this summary document discusses

p ro f iling f i rst, fo l l owed by consultation. Howeve r, for efficiency reasons, th e

assessment process would ge n e ra l ly combine these activities to minimise th e

number of times that fo rmal sta keholder dialogue is re qu i re d .

Box 1.2 Supporting Tools For Developing a Profile( 1 )

The following tools will assist in developing a profile

of an operation and its neighbouring communities:

• Tool A1: Pro-forma operation pro f i l e

• Tool B2: Building a basic community pro f i l e

• Tool B5: Overview and guidance on baseline

data collection

va rious aspects of the Community Enga gement Plan (CEP).

The consultation process outlined in this process will also

ge n e ra te pre l i m i n a ry info rmation on community needs (as

will the Community Pro file). This info rmation can be used to

c a rry out an initial assessment of the effe c t i veness of social

i nve stment initiatives (see Step C).

1.6.3 Stage 2: Identify and Assess Social and Economic Impacts and Share Results of the AssessmentThe key objective of Sta ge 2 is to identify and assess th e

i mpacts of an operation (both positive and nega t i ve) and

to assess the effe c t i veness of ex i sting manage m e n t

m e a s u res and other initiatives (eg social inve stments).

Sta ge 2 is divided into two steps.

• Step C: Identify and assess the social and economic

i mpacts of the operation, and assess ex i sting manage m e n t

m e a s u res and social inve stment initiative s .

• Step D: S h a re results of the impact assessment with

sta ke h o l d e rs and obtain recommendations fo r

m a n a gement of imp a c t s .

Identifying and Assessing Impacts (Step C)

This aspect of the assessment process, Step C, is designed

to provide operations with an understanding of:

• Activities that result in positive and nega t i ve impacts on

a s s o c i a ted communities. The st ru c t u re of the tool used

to identify these impacts is bro a d ly consistent with th e

I S O 14 0 01 management systems appro a ch.

• The significance to sta ke h o l d e rs of these impacts and of

o ther issues raised during consultation. This is defined in

te rms of the ri s ks and opportunities posed to th e

o p e ration as a result of the imp a c t s .

• Calculating the to tal economic benef it of the opera t i o n ,

including value added, ta xes paid and to tal emp l oy m e n t

( d i rect and indire c t ) .

Many operations already have some of the info rm a t i o n

re qu i red. A number of tools have been developed to help ve ri f y

m ethodologies and f ill gaps. These are outlined in B ox 1. 4 .

Assessing the Effe c t i veness of Existing Manage m e n t

M e a s u res and Initiatives (Step C)

To imp rove social and economic perfo rmance it is also

i mp o rtant to assess the effe c t i veness of ex i sting manage m e n t

m e a s u res and other initiatives, such as social inve stment.

It is th e re fo re imp o rtant peri o d i c a l ly to rev i ew wheth e r

m a n a gement measures adequ a te ly address the identifi e d

i mpacts of the operation, and the ex tent to which social

i nve stment initiatives are meeting community needs, or

o ther objective s .

It is also imp o rtant to rev i ew perfo rmance aga i n st Angl o’s

c o rp o ra te policies and principles relating to social and

economic impacts, namely:

• the Anglo American ‘Good Citizenship’ Business

P rinciples; and

• the SHE Policy and Management Principles.

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Box 1.4 Supporting Tools for Identifying Impacts

• Tool C1: Identifying Anglo activities that are resulting

in social and economic impacts

• Tool C2: Assessment of issues raised during

c o n s u l t a t i o n

• Tool C3: How to calculate an operation’s value added

• Tool C4: Inventory of all payments made to the

public sector

• Tool C5: Calculating total employment generated

Box 1.3 Supporting Tools for Engaging Stakeholders

• Tool B1: Stakeholder identification and gap analysis

• Tool B3: Overview of potential issues and possible

c a u s e s

• Tool B4: Guidance on potential approaches

to consultation

• Tool B6: Summary of issues raised by stakeholders

and needs identified

S p e c i f ic elements within each of these are assessed duri n g

the SEAT process. It is aga i n st these that each operation is

re qu e sted to assess and re p o rt on its perfo rmance. The

b e n e f it of doing this is that it provides a clear indication of

the level at which the operation is curre n t ly perfo rming, and

any steps needed to ach i eve compliance with aspects of th e

p o l i c i e s / p ri n c i p l e s .

If operations are not already undertaking such rev i ews, or if

th ey wish to ch e ck the scope of their rev i ews aga i n st good

p ractice, a number of tools have been developed. These are

outlined in Box 1. 5 .

Disclosing Results of the Assessment and Getting Inp u t

on Management Measures (Step D)

Step D of the SEAT process concerns the sharing of th e

results of the assessment with sta ke h o l d e rs and allows fo r

sta keholder input to the findings. This includes findings on

i mpacts and on the effe c t i veness of ex i sting initiative s .

O p e rations may already have systems in place for disclosing

and discussing findings with sta ke h o l d e rs. Step D outlines

the imp o r tance of invo lving sta ke h o l d e rs in this fe e d b a ck

step, and provides guidance on how to plan fe e d b a ck

sessions. Such invo lvement is also imp o rtant to the success

of Community Enga gement Plans. Many of the consulta t i o n

tools mentioned in Step B are re l evant to this sta ge of th e

assessment process (see Box 1. 6 ) .

S h a ring the results at diffe rent sta ges of the assessment

can have a number of benefits, including:

• p roviding an opportunity to discuss and te st th e

ro b u stness and validity of the re s u l t s ;

• a l l owing sta ke h o l d e rs to develop a shared understa n d i n g

of all the issues and providing an opportunity to

p a rt i c i p a te in the development of potential solutions,

s o m etimes resulting in innova t i ve sugge stions; and

• ge n e rating sta keholder ow n e rship of the issues and

m a n a gement responses, and th e re fo re leading to th e

d evelopment of a positive relationship bet ween th e

o p e ration and its sta ke h o l d e rs .

1.6.4 Stage 3: Develop Management Responses to Key Issues, Including Planning for ClosureThe main objective of Sta ge 3 is to develop appro p ri a te

m a n a gement responses to the issues identified in th e

p receding steps. This includes measures relating to the core

activities of the operation (eg management of pri o ri t y

i mpacts and planning for closure), and measures that bri n g

b e n e fits over and above core activities (eg social inve st m e n t

p rojects). For both, the objective is to imp rove perfo rm a n c e

th rough imp roved management inte rve n t i o n s .

Sta ge 3 is divided into th ree ste p s :

• Step E: D evelopment of a management and monito ri n g

plan for key issues, including fo rmulation of local key

p e rfo rmance indicato rs (KPIs).

• Step F: I mp roving the imp l e m e n tation and contribution

of non-core activities, including:

- assessing whether pro c u rement practices can be

ch a n ged to secure additional local benefi t s ;

- wo rking with communities to establish new social

i nve stments and community projects; and

- helping to develop human capital in local businesses;

• Step G: Planning for the closure of an operation, where

re l eva n t .

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Box 1.5 Supporting Tools for Assessing Management Measures

• Tool C1: Identifying Anglo activities that have social

and economic impacts

• Tool C6: Identifying and evaluating existing community

social investments

• Tool C7: Guidance on assessing performance in

relation to corporate level policies

Box 1.6 Supporting Tools for Sharing Re s u l t s

• Tool B4: Guidance on potential approaches

to consultation

• Tool B6: Summary of issues raised by stakeholders

and needs identified

• Tool D1: Sharing results of SEAT process

with stake h o l d e r s

Steps E and G re l a te to issues linked to core activities,

w h e reas Step F is more concerned with initiatives that add

additional value over and above an opera t i o n’s core

functions. B ox 1. 7 l i sts the tools available to support

o p e rations undertaking these activities.

D evelopment of a Management and Monito ring

Plan and KPIs (Step E)

H aving identif ied the key issues associated with th e

o p e ration, the next step is to develop manage m e n t

m e a s u res to address them. Most operations will already

h ave a management plan in place that addressees at least

some impacts. There fo re, the key step is to ensure that

all the identified issues are adequ a te ly addressed.

An assessment of the effe c t i veness of an opera t i o n’s

m a n a gement measures is outlined in Sta ge 2, Step C.

The objective of Step E is to develop new, or imp rove

i n a d e qu a te, management measures. The ex tent to which

an operation manages issues will be shaped in part by

l e g i s l a t i ve and permitting re qu i rements and by the level

of risk (to both Anglo and the sta ke h o l d e rs ) .

In some instances, th e re may be new issues that are

i d e n t i f ied during the assessment – ones that we re not

p re d i c ted during the SIA - or that ex i sting monito ring

plans and consultation exe rcises have not yet picked up.

For these issues, new management measures will need

to be developed. For each management measure, a

c o rresponding monito ring measure should be esta b l i s h e d .

This ensures that the effe c t i veness of an opera t i o n’s

m a n a gement measures is rev i ewed and, where necessary,

i mp rovements are made.

The ef fe c t i veness of an opera t i o n’s management measures is

c r itical to good relations with sta ke h o l d e rs. It is evidence of

our commitment to being responsible neighbours .

C o n s u l tation around issues of concern and pote n t i a l

solutions will cre a te ex p e c tations among sta ke h o l d e rs th a t

issues will be addressed. Doing so in an ef fe c t i ve manner will

enhance community relations and lay the foundations fo r

t ru st. Inadequ a te management measures are like ly to do th e

o p p o s i te, and will erode any gains made during th e

c o n s u l tation pro c e s s .

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Tool E1: Developing a management and monito ring plan,

p rovides guidance on the key components of a manage m e n t

and monito ring plan. The dif fe rent components ta ke th e

user th rough the list of actions and responsibilities necessary

for issues to be adequ a te ly managed. This includes set t i n g

m a n a gement and monito ring objectives, assigning

responsibility for the measures, setting perfo rm a n c e

ta rgets, and establishing KPIs.

I mp roving the Imp l e m e n tation and Contribution of No n -

C o re Activities (Step F)

Many Anglo operations will already have pro grammes th a t

a re aimed at maximising the local socio-economic benefi t s

of their operations. Whilst some of these are linked to core

activities (eg emp l oyment pro grammes and outsourc i n g ) ,

o th e rs are part of a broader commitment to bring additional

b e n e f its to the communities of which th ey are a part.

The tools provided in Step F are aimed at maximising th e

e ffe c t i veness of these non-core activities. This is done via a

s e ries of guidance notes that re flect current best practice on

a number of topics: outsourcing, social inve st m e n t ,

d eveloping human capital, and setting up part n e rs h i p s .

Box 1.7 Supporting Tools for Responding to Key Issues

Step E:• Tool E1: Developing a management and

monitoring plan

• Tool E2: Developing local key performance indicators

Step F:• Tool F1: Increasing local pro c u rement and outsourc i n g

to support local business development

• Tool F2: Establishing new community social

investment initiatives

• Tool F3: Developing human capital

• Tool F4: How to set up partnerships

Step G:• Tool G1: Guidance on closure planning/planning for

the future

If an operation already has well developed initiatives w i th i n

the above focus areas, and does not re qu i re the guidance

p rovided. Their exa mples of best practice should be capt u re d

and shared within the Group. Where re l evant, this inte rn a l

l e a rning should be used to update the tools in Step F. Fo r

o ther operations, the tools deve l o p e d to support th i s

assessment process will provide useful inst ruction on how to

i mplement value-adding initiative s .

Planning for Closure (Step G)

Sta keholder ex p e c tations are incre a s i n gly that closure

planning will address not only env i ro n m e n tal re m e d i a t i o n

but also the economic and social consequences of closure .

These social issues should, ideally, begin to be addre s s e d

many ye a rs befo re the anticipated end of the life of th e

o p e ration. The objective of Step G is to begin to address

key issues relating to downsizing or closure, such as:

• What will happen to emp l oyees once the operation is

d ownsized or closed?

• What will happen to local business part n e rs ?

• What will be the impacts on neighbouring communities?

• Is the community viable in the absence of the opera t i o n

( p a rt i c u l a rly pertinent in the case of purpose-built

mining tow n s ) ?

• Who should Anglo wo rk with to plan for the future ?

The specific issues relating to post closure planning will

va ry from location to location. For exa mple, some mining

o p e rations may be located in communities that are wholly

dependent upon Anglo (and may in fact have been cre a ted

by the Comp a n y, either in a planned way or by acting as a

‘pole of attra c t i o n’), whilst oth e rs are a small part of a more

d i ve rse local economy. It is not possible to be pre s c ri pt i ve

about how these should be managed or about th e

a p p ro p ri a te level of pri o ri t y. There fo re, the objective of Ste p

G is to provide a series of actions that Anglo operations can

i mplement as a fi rst step in planning for the future.

1.6.5 Stage 4: Reporting the Assessment Results Sta ge 4, Step H is the culmination of the preceding sta ge s

and steps within the assessment process. It invo lves th e

p re p a ration of a re p o r t summarising the f indings of th e

assessment, and the fe e d b a ck of results to sta ke h o l d e rs .

To aid this process, a te mp l a te has been provided for wri t i n g

up the f indings of the SEAT process. The headings within th e

te mp l a te provide guidance on the re p o rt st ru c t u re and on

the re qu i red info rmation.

Feeding back the results of the SEAT process is an essential

step in the ove rall process. Invo lving sta ke h o l d e rs in th i s

final fe e d b a ck loop keeps the lines of communication open

for on-going identif ication and management of issues, and

helps to build long te rm, const ru c t i ve relationships with

sta ke h o l d e rs. Fe e d b a ck is recognised as a key step in th e

assessment process. The guidance in Step D is also re l eva n t

to this ta s k, and hence is not re p e a ted here .

1.7 RELATIONSHIP WITH OTHERANGLO AMERICAN GUIDANCE AND REQUIREMENTS1.7.1 A Full Social Impact AssessmentThe Anglo Te chnical Department has developed guidelines

outlining the key steps within a full Social Imp a c t

Assessment (SIA). These are dire c ted at new operations or

m ajor expansions, and are available on the Anglo intra n et or

f rom ATD. A full SIA will need to be carried out when

assessing the potential impacts of proposed new

d evelopments, as is commonly re qu i red by national

legislation. The SEAT process should not be used as a

s u b st i t u te in these circ u m stances. Instead, it provides a

p ractical assessment process for helping ex i sting opera t i o n s

to understand what their impacts are, and how best to

i mp rove their social perfo rm a n c e .

The SEAT process mirro rs the basic st ru c t u re of a full SIA.

The key diffe rence lies in the level of detail underta ken fo r

e a ch sta ge within this basic process. This relationship is

i l l u st ra ted in Fi g u re 1. 3 .

1 2

1.7.2 Community Engagement PlansThe assessment process outlined in this manual covers a number

of key focus areas (and associated outputs) required to create a

Community Engagement Plan (CEP). These include: (a)

identification of stakeholder groups and the structures through

which they are engaged and consulted; (b) the identification

and analysis of stakeholder issues and their associated business

risks; (c) the identification of key management objectives,

accountabilities and resource requirements; (d) an evaluation of

existing community projects and plans; (e) an audit of the social

and economic footprint of the operation on its surrounding

area; and (f) planning for eventual closure.

Thus, by rolling out the assessment process, an operation

will be able to generate information that is required for its

CEP. The assessment process (or components thereof) can

also be used repeatedly, to provide up dated information

for the CEPs in subsequent years.

13

1.7.3 Corporate Key Performance IndicatorsAnglo’s operations generate benefits for a wide range

of stakeholders. These include direct impacts (such as

employment, taxes paid and value added to national

economies) and indirect impacts (for example, employment

within contractors and suppliers).

It is increasingly important that Anglo can communicate

these benefits to stakeholders. The Company will

progressively be seeking to provide a comprehensive

overview of its social and economic impacts to complement

the information provided on safety, health and

environmental performance. To measure these impacts, a set

of key performance indicators (KPIs) has been developed.

These are illustrated in Table 1.1.

Figure 1.3 The SEAT Process in the Context of a Detailed Socio-Economic Assessment

1 4

(a) Added value ge n e ra ted by Angl o ( 2 )

IndicatorsTotal Value

(US$ per year) AA Employees Other Stakeholders

Beneficiaries (Number)

(b) Ta xes and royalties paid by Anglo(3)

(c) D i rect Anglo emp l oy m e n t ( 4 )

(d) I n d i rect contra c tor and supplier emp l oyment plus

induced emp l oy m e n t ( 4 )

(e) Spend on social and community pro gra m m e s ( 5 )

(f) E mp l oyment th rough social inve st m e n t s ( 4 )

(g) Recipients of basic health c a re ( 5 )

(h) Recipients of company provided or subsidised education(5)

(i) Recipients of company provided or subsidised tra i n i n g ( 5 )

(j) C a p i tal ex p e n d i t u re ( 5 )

(k) To tal numbers dependent upon Anglo for their live l i h o o d ( 5 )

(l) Pension pay m e n t s ( 5 )

No tes: ( 1 ) Shaded boxes need not be comp l eted – info rmation not re qu i re d

( 2 ) See Tool C3

( 3 ) See Tool C4

( 4 ) Tool C5

( 5 ) Use Tool A1.

Table 1. Key Performance Indicators(1)

Many of these indicato rs may ultimate ly feed into re p o rt i n g

at the corp o ra te level. The ta rget audience for the corp o ra te

KPIs is pri n c i p a l ly the Comp a n y ’s inte rn a t i o n a l

sta ke h o l d e rs, including share h o l d e rs, gove rnments and

i n te rnational organisations. Howeve r, the indicato rs will

also be useful at a more local level, for exa mple, for a

p a rticular country or region.

O p e rations may also find it useful to develop a set of key

i n d i c a to rs that address local concerns. The development of

these indicato rs should ta ke account of the local opera t i o n’s

o b j e c t i ves, along with the views of local sta ke h o l d e rs ( s e e

Tool E2). Where possible, these local indicato rs should be

a c c o mpanied by info rmation on more qu a l i ta t i ve issues,

s u ch as the quality of sta keholder dialogue. Although th ey

cannot easily be measured, qu a l i ta t i ve issues are often ve ry

i mp o rtant and th ey should be re p o r ted on, for exa mple with

a brief commenta ry or a rating of perfo rmance (for exa mp l e

m a rks out of te n ) .

S o u th Afri c a’s Broad Based Socio-Economic

E mp owe rment Charter Score c a rd

S o u th Afri c a’s Broad Based Socio-Economic Emp owe rm e n t

C h a rter (BBSEE) for the Mining and Minerals Indust ry wa s

l a u n ched in 2003( 1 ). The vision for the BBSEE is to “ c re a te an

i n d u st ry that will pro u d ly re flect the promise of a non-ra c i a l

S o u th Afri c a ” . A score c a rd has been developed in order to

g i ve effect to the provisions contained within the BBSEE, th e

results of which will be used by South Afri c a’s Minist ry of

M i n e rals and Energy to assess the pro gress of comp a n i e s

a ga i n st: (a) the specific ta rgets set in the Charte r; and (b)

those that are set inte rn a l ly by the companies concern e d .

A l though the SEAT process does not cover all aspects of th e

S c o re c a rd, it provides basic guidance on meeting th e

re qu i rements of va rious components of the Score c a rd.

A n n ex I highlights where guidance is provided within th e

S E AT process for the diffe rent components of the Score c a rd .

W h i l st this is South Africa specif ic, the table may be of use

to Anglo operations in other countries that are seeking to

a s s i st disadva n ta ged communities.

1.8 CONTINUOUS IMPROVEMENTThe SEAT process has been developed and fi e l d - te ste d

th rough th ree pilot studies with Mondi Fo re sts (South

A f rica), Capcoal (Au st ralia) and Mineração Catalão (Bra z i l ) .

Valuable additional inputs we re provided by a number of

o ther Anglo operations during the rev i ew phase. Howeve r,

the SEAT process will best serve its purpose if it is subject

to on-going scrutiny and imp rovement. Fe e d b a ck is needed

f rom Anglo sta f f who have actually used the tools to conduct

the SEAT process. We would th e re fo re like to encoura ge yo u

to share your thoughts on the effe c t i veness of th e

assessment process and accompanying to o l s .

If you have any fe e d b a ck that you would like to share, please

c o n tact Edwa rd Bickham, Exe c u t i ve Vice President, Exte rn a l

A ffa i rs (ebick h a m @ a n gl o a m e rican.co.uk), Dr. John Gro o m ,

Senior Vice President, Safet y, Health and Env i ro n m e n t

( j gro o m @ a n gl o a m e rican.co.uk), or your divisional

s p e c i a l i sts in communities or sustainable deve l o p m e n t ,

your social and community manage rs, or local business

d evelopment off i c e rs .

1 5

( 1 ) For fur ther info rmation go to

h t t p : / / w w w. p o l i t y. o rg . z a / h t m l / g ov d o c s / m i s c / m i n i n g - ch a rte r. h t m

Associated Tools

1 6

Stage / Step

Stage 1 – Profile the Anglo Operation and Associated Communities & Identify Key Issues

Step A. P ro f ile the Anglo American Opera t i o n : • A1 Pro - fo rma operation pro fi l e

Step B. P ro file the community and dialogue with

key sta ke h o l d e rs to identify key issues:

• B1 Sta keholder identification and gap analys i s

• B2 Building a basic community pro fi l e

• B3 Ove rv i ew of potential issues and possible causes

• B4 Guidance on potential appro a ches to consulta t i o n

• B5 Ove rv i ew and guidance on baseline data collection

• B6 Summary of issues raised by sta ke h o l d e rs and needs identifi e d

Stage 2 – Identify & Assess Social & Economic Impacts & Share Results of the Assessment

Step C. Identify and assess the social and

economic impacts of the Anglo operation,

and assess ex i sting management measures

and social inve stment initiative s :

• C1 Identifying Anglo activities that are resulting in social

and economic i mp a c t s

• C2 Assessment of issues raised during consulta t i o n

• C3 How to calculate an opera t i o n’s value added

• C4 Inve n to ry of all payments made to the public secto r

• C5 Calculating to tal emp l oyment ge n e ra ted by an opera t i o n

• C6 Identifying and evaluating ex i sting community social inve st m e n t s

• C7 Guidance on assessing perfo rmance in relation to corp o ra te level policies

Step D. S h a re results of impact assessment

w i th sta ke h o l d e rs and get recommendations

for management of issues:

• D1 Sharing results of SEAT process with sta ke h o l d e rs

1.9 INDEX OF ALL TOOLS USED FOR THE SEAT PROCESS

1 7

Associated ToolsStage / Step

Stage 3 – Develop Management Responses to Kry Issues, including Planning for Eventual Closure

Step E. D evelopment of a management and

m o n i to ring plan for key issues, including

fo rmulation of key perfo rmance indicato rs (KPIs):

• E1 Developing a management and monito ring plan

• E2 Developing local key perfo rmance indicato rs

Step F. I mp rove the imp l e m e n tation and

c o n t ribution of non-core activities:

• F1 Increasing local pro c u rement and outsourcing to support local

business deve l o p m e n t

• F2 Establishing new community social inve stment initiative s

• F3 Developing human capita l

• F4 How to set up part n e rs h i p s

Step G. Po st closure planning • G1 Guidance on closure planning/ planning for the future

Stage 4 – Report the Results of the Assessment

Step H. P re p a re SEAT re p o rt

and fe e d b a ck to community:

• H1 Pro fo rma re p o rt te mp l a te

• Fe e d b a ck results to community - re fer to Tool D1 - Sharing results of SEAT

p rocess with sta ke h o l d e rs

Acknowledgement

The Socio-Economic Assessment Toolbox (SEAT) has been

developed through a collaboration between Anglo American plc

and consultants, Environmental Resources Management (ERM).

Anglo American’s corporate team led the project, with support from

several business units and operations. In particular, Mondi Forests

(South Africa), Capcoal (Australia) and Mineração Catalão (Brazil)

provided invaluable assistance by providing inputs into the

development of the SEAT process and hosting pilot studies (the

results of which have been detailed in separate reports).

ERM’s core team in London comprised Alison McCallum

(alison.mccallum@erm.com) and Jonathan Samuel

(jonathan.samuel@erm.com). They were supported by Libby

Hirshon in London and Keryn James in Perth, Australia.

Contact details are provided below:

ERM in London: + 44 20 7465 7200

ERM in Perth, Australia: + 61 8 9321 5200

Website: www.erm.com

© Anglo American plc 2003

Applications for reproduction should be made in writing to:

Edward Bickham

Executive Vice President

External Affairs

Anglo American plc

20 Carlton House Terrace

London

SW1Y 5AN

Tel: + 44 20 7698 8888

ebickham@angloamerican.co.uk

All rights reserved. No part of this publication may be reproduced,

stored in a retrieval system, or transmitted in any form or by any means

(electronic, mechanical, photocopying, recording, or otherwise) without

acknowledgement and the prior written permission of the copyright owner.

Anglo American plc

20 Carlton House Terrace

London SW1Y 5AN

United Kingdom

www.angloamerican.co.uk

S•E•A•TSocio-EconomicAssessment Toolbox