Anglo American seeks to make a lasting, positive contribution to the communities and regions in which we operate. A key way of achieving this is through Socio-Economic Development (SED) - supporting stakeholders to bring about sustainable improvements in their well-being at individual, household, and/or community levels.

Drawing on existing models of the social and economic development needs of individuals, families and communities, 16 elements have been identified as being determinants of a “good” life. These elements can be grouped into four broad themes and, where they are lacking, improving them would make life better (Figure 4A.1 and Table 4A.3).

* These elements are linked to specific goals of the Sustainable Mining Plan

In regions with significant socio-economic deprivation, or as part of mine closure planning, SED needs to adopt a specific approach called Collaborative Regional Development or CRD. In line with the Anglo American Sustainable Mining Plan, CRD is about acting as a catalyst for change in the communities and regions where we operate, in cross-sectoral, multi-organisational partnership with other stakeholders to promote larger scale, long-term development. CRD looks beyond the immediate vicinity of our sites to identify opportunities to improve the prospects of those in our host regions, independent of our presence, so the benefits will be felt long beyond the life of the mine.

CRD is not a separate, standalone SED programme but should rather be considered a new approach to SED. Over time, CRD and the current local SED approach should form an integrated approach that puts initiative sustainability at the centre. CRD should be delivered in partnership, focusing on both local and regional development over a short, medium- and long-term horizon. The Sustainable Mining Plan, which applies to all sites, is an important driver of our SED activities. The three Thriving Communities stretch goals in the plan – education, health and well-being, and livelihoods – will typically form the basis for the bulk of our SED work, although other locally-relevant initiatives will also often be necessary.

Together, SED and CRD play an important role in Anglo American’s approach to securing socio-political acceptance and our social licence to operate. In this sense, SED and CRD contribute to risk management. Strategic and effective SED projects are controls to manage risks to the business. Where there is a legal requirement related to SED, the relevant SED projects are controls to manage legal and compliance risks to the business. See Table 4A.1 for a more detailed overview of how CRD fits with sites’ SED approach. Also refer to the CRD guidance note (see 4A.4 Tools and Guidance Notes).

TABLE 4A.1 – CRD and SED

An SED project can also be a control in the management of potential social and human rights impacts and other risks to the business. For example, a safety campaign to improve driving habits in local communities may improve levels of safe behaviours, contributing to a decrease in the likelihood of off-site, public-road incidents involving site transportation. Similarly, CRD supporting development of other economic sectors outside the area of influence can be a control to prevent or limit site-induced migration (SIM) (see Section 4G). CRD also offers opportunities to mitigate future risks related to closure and dependency on our mines by diversifying local economies through creating alternative livelihoods.

SED projects and CRD initiatives are underpinned by a participative approach that promotes collaboration and partnership. This approach helps build trust, which is a prerequisite for securing socio-political acceptance and a social licence to operate.

Specifically, this section:

• provides an approach for defining SED priority areas
• provides guidance on selecting and designing strategic and effective SED projects, including how we monitor and evaluate
• outlines approach to partnership and collaboration
• lists the cross-departmental roles and responsibilities involved in managing SED
• outlines engagement requirements for SED.

Intended users

Planning for SED is typically the responsibility of the site’s Social Performance team. However, other departments, especially Human Resources and Supply Chain, play key roles in delivering SED activities such as local employment and local procurement. Therefore, the main intended users of this section are Social Performance, Human Resources, Supply Chain, other relevant department heads, and the members of the Social Performance Management Committee (SPMC).

Relevance to other sections

SED planning and implementation incorporates several of the guidance sections in the Social Way.

• Governance (Section 1):
  • Social Performance Management Committee (SPMC) – SED planning and implementation typically involves multiple departments. The SPMC provides the platform to ensure that all relevant functions are engaged on a regular basis.
• Review and Planning (Section 2)
  • As part of social performance review and planning, sites are required to review and update their internal and external context review. This information is required for planning SED activities. SED planning and objectives should be incorporated in the SMP.
• Engagement and Assessment (Section 3)
  1. Stakeholder Engagement (3A) – consultations and collaboration with local communities and government authorities are key to successful SED planning and implementation.
  2. Incident and Grievance Management (3B) – grievances or incidents may be related to the planning and/or implementation of SED projects.
  3. Social and Human Rights Impact and Risk Analysis (SHIRA) (3C) – an SED project can be a control in the management of social and human rights impacts and risks to the business and should therefore be captured in SHIRA/the Baseline Workplace Risk Assessment and Control (WRAC).