Social performance management is shaped by the internal context. From changes to site-level activities through to revised Group-level policies or strategic priorities, a site’s potential impacts on, and commitments to, external stakeholders are constantly evolving.

The internal context review is updated as needed on an ongoing basis, and more comprehensively refreshed every five years at minimum.

Box 2.2 summarises the elements that should be considered in the internal context review.

BOX 2.2 Summary of internal context review

Internal context

Legal and permitting requirements, including those related to socio-economic development (SED ) Business priorities Production objectives FutureSmart MiningTM initiatives / Social Licence to Innovate Permanent, temporary employees and contractors, including their accommodation arrangements Planned expansion Lifecycle transitions Land-acquisition plans, changes in land use Anticipated recruitment Planned infrastructure/changes to haul or transport routes New activities or new locations for existing activities (e.g. drilling, blasting) Group policies and standards Sustainable Mining Plan Security arrangements and whether these involve private security and/or public security providers Current staff working on the management of social and human rights issues across all departments, including those working on SED

BOX 2.3 Social Licence to Innovate

As part of Anglo American’s FutureSmart Mining^TM approach, sites will see the roll-out of new technologies, making production safer, more efficient, cleaner, and less water and energy intensive.

New technologies can deliver real benefits for local communities but can also have implications for potential social and human rights impacts, employment and our supply chains. If not managed well, this could threaten our social licence to operate.

Social Licence to Innovate refers to the work Anglo American is doing to ensure we are adopting a consistent approach, sharing best practice and that operations have the support they need to ensure societal consent and cooperation to the introduction of modern mining.

Managing Social License to Innovate-related risks and potential impacts is therefore an emerging priority for Anglo American. Sites should, where appropriate:

• include managing potential Social License to Innovate-related impacts and risks as one of their long-term objectives
• incorporate Social License to Innovate as a driver in defining the operation’s value proposition to stakeholders and therefore SED priorities (see Section 4A)
• ensure that the potential risks and impacts of new technologies on external stakeholders are considered in SED planning
• incorporate Social License to Innovate- as a topic for engagement with potentially affected stakeholders