NYSE: AEM 43.92
-0.36 -0.81%
Volume: 773,624
May 25, 2018
TSX: AEM 56.94
-0.12 -0.21%
Volume: 323,925
May 25, 2018
Gold: 1,302.36
-3.27 -0.25%
Volume:
May 25, 2018

Standards

Our Sustainable Development policy reflects our emphasis on health and wellness and explicitly affirms our commitment to the protection of Human Rights, and more specifically to committing to minimize the risks associated with the management of tailings and water.

Standards and disclosures

We are committed to maintaining high standards in sustainability and achieving global best practices in transparency and disclosures.

We have designed our Responsible Mining Management System (RMMS) – our in-house health, safety, environment and social acceptability management System – to continuously improve performance and to ensure that the following compliance requirements and industry standards are met:

  • Carbon Disclosure Project (CDP)
  • Global Reporting Initiative (GRI)
  • International Cyanide Management Code
  • Towards Sustainable Mining (TSM) Initiative
  • Disclosure of payments to governments
  • Conflict-Free Gold Standard
  • United Nations Sustainable Development Goals (UN SDGs)

Carbon Disclosure Project

The Carbon Disclosure Project’s (CDP’s) goal is to encourage a rational response to climate change by facilitating a dialogue between stakeholders and businesses supported by harmonized, quality data. Agnico Eagle began reporting to the CDP in 2007 and continues to report on an annual basis.

For more information on the Carbon Disclosure Project, visit cdp.net

Global Reporting Initiative

The Global Reporting Initiative (GRI) sets out specific criteria and indicators that organizations can use to measure and report on their economic, environmental and social performance. We measure our performance using the G4 Sustainability Reporting Guidelines, including mining industry specific indicators incorporated in the GRI’s Mining and Metals Sector Supplement (MMSS). Agnico Eagle self declares that we are reporting at a Level A based on the GRI G4 and MMSS guidelines.

For more information, visit globalreporting.org

International Cyanide Management Code

The Cyanide Code is a voluntary industry program for companies that use cyanide to recover gold. It focuses on the responsible and safe management of cyanide and cyanide solutions used in gold mining – as well as on the protection of human health and the reduction of environmental impacts – through every stage of the mining process. Agnico Eagle signed the Cyanide Code in 2011, and our Kittila, Meadowbank and Pinos Altos sites were certified in 2015, while our Mascota heap leach operation will continue under the Mexican certification of Industria Limpia. Our La India and Canadian Malartic mines have also started the certification process. For more information on the Cyanide Code, visit cyanidecode.org

United Nations Sustainable Development Goals (UN SDGs)

As part of the global sustainable development agenda, Agnico Eagle is working to achieve progress on a set of goals adopted by the United Nations in 2015. These 17 goals – the SDGs – focus on ending global poverty, protecting the plant and ensuring prosperity for all. Achieving these ambitious goals by 2030 will require extensive collaboration among governments, NGOs, the private sector and civil society. Here is how Agnico Eagle is working with our partners to achieve progress on the SDGs toward a sustainable future

For details on our approach to each goal visit

Responsible Mining Management Systems (RMMS)

The RMMS is consistent with the ISO 14001 Environmental Management System and the OHSAS 18001 Health and Safety Management System. We are not planning to seek certification under the ISO or OSHA standards at this time.

chart

For more information on how we are integrating these sustainability standards, codes and disclosures into our daily operations to ensure we are not only meeting, but exceeding, regulatory requirements for health, safety and the environment we invite you to see our annual Sustainable Development report.

Towards Sustainable Mining

Agnico Eagle endorses the MAC’s TSM Initiative. TSM helps the mining industry sustain its position as a leading economic contributor, while protecting the environment and remaining responsive to Canadians. It helps the industry maintain its social license to operate by providing a framework for companies to become proactive and socially responsible operators.

TSM was developed to help mining companies evaluate the quality, comprehensiveness and robustness of their management systems under six performance elements: crisis management, energy and GHG emissions management, tailings management, biodiversity conservation management, health and safety, and aboriginal relations and community outreach. These TSM indicators have been incorporated into the framework of our RMMS.

2017 TSM AEM External Verification – click to view

TSM Protocols Indicators Goldex Kittila La
India
Lapa La
Ronde
Meadow-
bank
Pinos
Altos
    39 45 39   42 41 54
Community 1- Identification AAA AAA AAA n/a AAA AAA AAA
2 - Engagement AAA AAA AAA n/a AAA AAA AAA
3 - Response mechanism AAA AAA AAA n/a AAA AAA AAA
4 - Reporting AAA AA AAA n/a A AA AA

Biodiversity 1 - Comm. A AA AAA n/a AA AAA AAA
2 - Planning A AA AAA n/a AA AAA AAA
3 - Reporting A AA A n/a AA AAA AAA

Crisis 1 - Preparedness Y Y Y n/a Y Y Y
2 - Review Y Y Y n/a Y Y Y
3 - Training Y Y Y n/a Y Y Y

Energy & GHG 1 - Management System N/A A AAA n/a A A AAA
2 - Reporting A A A n/a A A A
3 - Performance targets N/A AAA AAA n/a A A AA

Health & safety 1. Policy A A AAA n/a AA A AAA
2. Planning A AA AAA n/a AA A AAA
3. Training AAA AAA AAA n/a AAA AAA AAA
4. Reporting A A AAA n/a AAA A AAA
5. Performance AA AA AAA n/a AA AA AA

Tailings Management 1. Policy AA AA N/A n/a AAA A AA
2. Management system AA AA N/A n/a A A AA
3. Responsibility AA AA N/A n/a A A A
4. Annual mngt review AA AA N/A n/a A A AA
5. OMS manual AA AA N/A n/a A A AA

Preventing forced and Child Labour Preventing Child labor Y Y Y N/A Y Y Y
Preventing forced labor Y Y Y N/A Y Y Y

More detailed information on TSM can be found at mining.ca

Disclosure of payments to governments

Agnico Eagle is committed to the principles of transparency and to increasing our level of disclosure on the payment of all taxes and royalties to governments. For 2017, we have reported all payments in accordance with the “Publish What You Pay” initiative, and the Canadian Extractive Sector Transparency Measures Act.

Conflict Free Gold Standard

Agnico Eagle understands that operating responsibly and maintaining the trust of our stakeholders requires us to demonstrate that the gold we produce has been extracted in a manner that does not fuel unlawful armed conflict or contribute to serious human rights abuses or breaches of international law. As such, we have adopted and implemented the World Gold Council’s (WGC) Conflict-Free Gold Standard (CFGS).

Click here for more information about Agnico Eagle’s commitment to the CFGS and to view our annual Statement of Conformance and Certification reports

Tailings Management Standard

Tailings management is one of the highest risk areas of any mining operation. We have adopted a tailings management standard to ensure a framework is in place to fulfil our commitments to responsible tailings management. This standard includes the provision for an annual review of tailings performance at the executive level.

Click here to read Agnico Eagle’s Tailing Management Standard. Additionally, we participated in MAC’s review of its TSM Tailings Management Protocol and guides, which involved a critical review by member company experts as well as an independent Task Force. The recommendations will be published in an enhanced Tailings Management Protocol and Guide to the Management of Tailings Facilities in 2017.

We annually conduct a self-assessment of our adherence to MAC’s TSM protocols, and every three years we conduct an external verification. In the 2017 external verification, we achieved level A or better for all indicators.

Governance and accountability

Our governance practices guide our behaviour and performance, helping to ensure we act in an ethically responsible manner and uphold our core values.

  • Agnico Eagle’s Code of Business Conduct and Ethics outlines the standards of ethical behaviour we expect from people working on our behalf around the world. The Code applies to all directors, officers, employees, agents and contractors and commits them to conducting their business in accordance with all applicable laws, rules and regulations and to the highest ethical standards.
  • We have also adopted a Supplier Code of Conduct which explicitly demands that suppliers must not discriminate on the basis of race, colour, religion, nationality, gender, ethnicity, age, marital status, creed, sexual orientation other basis prohibited by law. For more information on our procurement practices and policies, click here.
  • Our toll-free “whistleblower” ethics hotline provides anonymous reporting of any suspected violations of the Code of Business Conduct and Ethics. We have also adopted an Anti-Corruption and Anti-Bribery Policy. Additionally, our activities are audited against the Conflict-Free Gold Standard of the WGC.

For more information on our corporate governance, business practices and policies, click here.

Public Policy Participation

Agnico Eagle encourages the development of sound public policy through open dialogue and debate.

We are a member of The Mining Association of Canada (MAC), the Mexican Chamber of Mines (CAMIMEX), the Canadian Chamber of Commerce in Mexico, A.C. (Cámara de Comercio del Canadá en México, A.C. - CANCHAM), the Association of the Finnish Extractive Resources Industry (Kaivosteollisuus ry – FinnMin) and the European Association of Mining Industries, Metal Ores & Industrial Minerals (Euromines) through our Finnish subsidiary Agnico Eagle Finland Oy, as well as the Quebec Mining Association (l’Association minière du Québec – AMQ), the Quebec Mineral Exploration Association (Association De L’Exploration Minière Du Québec - AEMQ), the Ontario Mining Association (OMA), the Prospectors and Developers Association of Canada (PDAC) and the NWT & Nunavut Chamber of Mines. We typically participate in discussions on public policy issues as a member of these industry organizations.

Agnico Eagle is a member of:
                 

Human Rights and Informed Consent

Agnico Eagle has incorporated respect for human rights into our management and governance practices and programs.

Our Board of Directors has made it clear that we will only do business in regions where human rights laws are respected and promoted. As a Canadian company, we maintain our commitment to the Canadian Charter of Rights and Freedoms while operating internationally, ensuring that all of our employees and communities are treated with respect and dignity.

Agnico Eagle does not in any way support or facilitate child labour or forced labour practices. This applies to mining operations, exploration and other development activities in which we are directly or indirectly engaged. It also applies to all outsourced or subcontracted activities across the entire supply chain. We do our best to ensure that none of our activities result in direct or indirect support of such practices. We will take action to terminate any such arrangement should we become aware that such practices are being supported by one of our outsourced suppliers.

In 2016, Agnico Eagle formally adopted the Voluntary Principles on Security and Human Rights (VP), one of a series of standards created to help extractive sector companies balance the obligation to respect human rights while protecting the assets and people at their operations.

Informed consent: Agnico Eagle subscribes to the principle of informed consent when working on private land, including aboriginal land. We seek the consent of the land owner; this consent usually takes the form of a formal agreement acknowledging that Agnico Eagle will conduct work in a certain area and under certain conditions.

Feedback and advice:

Stakeholder Advisory Committee

Getting Feedback

We have established a Stakeholder Advisory Committee (SAC) to provide us with feedback on our corporate social responsibility efforts and to complement, and help us make strategic links to our existing local stakeholder engagement activities. This approach also supports our global efforts to engage with our stakeholders on a regular basis and in a meaningful way. The Committee was established was established in 2011 and meets in Toronto annually each fall.

The SAC provides us with constructive feedback from a diverse group of priority stakeholders. It provides advice on building a focused sustainability strategy and a business case for our investments in sustainability. The SAC also reviews our sustainability initiatives – including our environmental and social policies, programs, operational performance, communications and engagement. Committee members are independent stakeholders with expertise in sustainability, community development, mining, disclosure and governance matters. They provide their input and expertise as individuals rather than as representatives of their organizations.

Stakeholder Advisory Committee Members – click to view

Hugo Asselin Full Professor, Director of the School Indigenous Studies Université du Québec en Abitibi-Témiscamingue (UQAT)
Laura Baretto Consultant / Owner Materials Efficiency Research Group
Gérard Dufour President Gérard Dufour Consultant Inc.
Julie Forget Vice President Transfert Environnement et Société
Meg French Director, International Policy and Programs UNICEF Canada
Isabelle Laprise Senior Advisor, Responsible Investment Caisse de dépôt et placement
Bill Napier Consultant Former mining executive
Sandra Odendahl President CMC Research Institutes
Michelle McCulloch Associate Director, Extractives & Utilities Research Sustainalytics

Progress Against Prior Year’s Recommendations

In response to ongoing feedback from the Committee, we have been working on key priorities – click to view:

RECOMMENDATION STATUS ACTION
Publicly reporting sustainability goals and targets: suggestion for the company to consider disclosing more future-oriented goals and targets. Consider developing long term-goals for community relations and benefits (community development plans and creating shared value) In Progress In review for 2018
Connect long term goals to United Nations Sustainable Development Goals (SDGs): To better highlight how the company is responding and contributing to these broad societal goals. Ongoing We included linkage between our current programs and the SDGs this year (click here to view) and will be making an effort to view program development and implementation through SDG lens moving forward.
Consolidate and update the Indigenous Peoples Engagement Policy and the Aboriginal Engagement Policy (Canada) to reflect best practice: In Progress We have consolidated the policies and are currently in the process of reviewing the policy to aligns with best practices and emerging guidance such as UNDRIP, the ICMM Position Statement on Indigenous Peoples and Mining, IFC Performance Standard 7 on Indigenous Peoples, the Initiative for Responsible Mining Assurance (IRMA) Standard (including section 2.10 on FPIC) and relevant recommendations from the Truth and Reconciliation Commission.
Develop a clear strategy to improve diversity & inclusion Diversity and Inclusion In Progress We are reviewing our global corporate policies and benefits programs with the goal of raising the bar for diversity and inclusion at Agnico Eagle and across the mining industry. At the site level, we are studying our policies and accommodation programs to improve and remove barriers to diversity in our workforce. The goal of the review is to be able to inform a clear strategy to improve diversity & inclusion
Certification standards: Stakeholders are interested in the ethical production and sourcing of metals and minerals, and we are seeing some stakeholder interest in third-party certification for mining that includes exploration. In Progress AEM is a member of the World Gold Council and fully endorses the principles put forward by the Responsible Jewelry initiative of the World Gold Council and through this means ensures that its product is used in a responsible manner to the extent practical within the management control of the company
Climate change disclosure: AEM should expect to see increased disclosure requirements on climate change – particularly now that the Task Force on Climate-related Financial Disclosures released its final report in June. This will be a priority for environmental, social and governance (ESG) analysts and asset managers. La Caisse de dépôt will soon publish its strategy on climate change and will be asking companies to respond accordingly.

Cybersecurity – Cybersecurity is a growing threat for all industries, including mining. Agnico Eagle should have a clear strategy and be preparing accordingly.
Cybersecurity strategy for both short and long term has been developed and executed accordingly across our divisions.
Develop a framework to monitor the effectiveness of community engagement (2016) Ongoing The development and implementation of new indicators of performance in Community Relations Engagement is part of the 2017 SD department objectives.
Increase SD reporting on grievances received. Separate GRI tables from the SD report (2016) Ongoing These recommendations are being implemented in the current report.
Shift to aspirational (Zero Harm) safety targets, and develop “leading” performance indicators. Ongoing The long-term goal is to reduce the occurrence of accidents to none. Zero Harm safety targets are widely stated in all health and safety communications.
Shift to positive indicators for Health and Safety. Ongoing Leading performance indicators have been selected and are being followed at each division. Targets have been established to improve performance for these indicators. Development of leading indicators continues.
Ensure that our presentations to the public are jargon-free and can be understood by as wide a range of community members as possible, and that they cover the technical issues across the whole life cycle of the mining project. Ongoing Each region, with the support of communication and community relations personnel, is developing a process to review and adapt presentations so that information can be understood by non-experts in the field.
Establish Community Liaison Groups to provide information to the community on challenging and technical issues. Ongoing A guide to establishing Community Liaison Committees has been prepared and a critical procedures guide is under development. Community Liaison Committees were created at Meadowbank, Kittila and LaRonde.

Stakeholder engagement and materiality: Agnico Eagle is committed to addressing the evolving needs and priorities of our business and key stakeholders – including shareholders, employees, contractors, business partners, communities, governments and others.

POTENTIAL IMPACT ON BUSINESS AND IMPORTANCE TO MULTIPLE STAKEHOLDERS

Engaged in Our Future: Our core values provide a strong foundation on which to achieve our long-term goals to responsibly grow our gold business, continuously improve our sustainable development performance and deliver on our commitments to Agnico Eagle’s shareholders and stakeholders. In all aspects of our business we aim to: operate a safe and healthy workplace, and treat the environment, our employees and communities with respect.

Our business strategy focuses on delivering stable, reliable performance at our mines while building a successful, promising pipeline of projects and, by providing growth and development opportunities for our people.

Our business strategy is centred on three pillars:

  • performance: delivering on high quality growth expectations;
  • pipeline: ensuring industry best, high quality project pipeline; and,
  • people: employing and developing the best people.

Agnico Eagle is committed to achieving these pillars of our business strategy while maintaining a safe and healthy workplace, with minimum environmental impacts, and within accepting communities.

As a global mining company, we have a unique responsibility to ensure we are addressing the evolving needs and priorities of our business and key stakeholders – including shareholders, employees, contractors, business partners, communities, governments and others. A material issue is defined as an issue:

  • that has significant current or potential impact on the Company over the next three to five years;
  • that is of significant concern to our key stakeholders; and,
  • over which we have a reasonable amount of control.

As our business and the challenges we face continue to evolve, we look forward to working with our stakeholders and industry experts on ways to further improve our sustainable development performance and reporting programs.

In 2018, we will review and update our materiality matrix to reflect the changes that have occurred within the Company and in the communities with which we interact.

Crisis Management and Emergency Preparedness

Due to the remote nature of our operating and exploration sites, Agnico Eagle has developed an emergency response capacity at all of our sites.

Training personnel to respond to all forms of emergencies remains a key element of our health and safety programs. Our mine rescue teams are considered amongst the best in the industry. They regularly participate in industry competitions to further develop their skills and share best practices.

These individuals contribute to safety in the workplace by being prepared to respond in the event of an emergency situation at any of our mine sites. Each of our mining operations has its own Emergency Response Plan and has personnel trained to respond to safety, fire or environmental emergencies. Each site also maintains appropriate response equipment.

Security in Mexico

We routinely audit internal security protocols and review security measures at our Pinos Altos and La India mines in northern Mexico – as well as at our other Mexican properties – with expert consultants on a continuous basis. In July 2016, a security incident occurred at our La India mine in Sonora State Mexico when a group of armed intruders forcibly gained access to the mine facilities and left the site with some gold doré bars. During the incident, a security guard sustained a minor injury. An investigation involving local, state and military authorities was conducted. The Company has also undertaken a complete review of the security procedures and enhancements were implemented.