2017 Annual and CSR Report
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CSR Approach CSR Governance

Responsible corporate behaviour and strong governance increase accountability, minimize risk and build trust – all of which are integral to executing Hudbay’s business strategy, protecting our reputation with our stakeholders and earning the licence to grow.

Our Board of Directors has five committees to assist in the management of its duties. The Environmental, Health, Safety and Sustainability (EHSS) Committee provides oversight of the Company’s human rights, environmental, health and safety policies, programs and systems. The Committee meets quarterly to review the Company’s performance and management of key EHSS risks. It also tracks the effectiveness of Hudbay’s management systems through the external ISO 14001 and OHSAS 18001 certification and TSM performance assessment processes. Day-to-day oversight of Hudbay’s CSR program at each of our operations is the responsibility of management, supported by our Vice President, Corporate Social Responsibility.

CSR Management Framework

Hudbay’s CSR management framework

Hudbay’s Code of Business Conduct and Ethics, Human Rights Policy, Environmental Health and Safety Policy and Supplier Code of Conduct and Ethics state our social, environmental and ethical commitments across our business, including our supply chain.

Corporate and site-specific management systems support decision-making and performance. Operating sites are required to maintain certification under the ISO 14001 (environmental) and OHSAS 18001 (health and safety) standards. New sites are expected to achieve certification within two years of the start of commercial operations or acquisition by Hudbay. Our Manitoba Business Unit maintained ISO 14001 and OHSAS 18001 throughout the year, and our Peru operation achieved certification in March 2017.

We use an integrated company-wide software system to track health, safety and environmental incidents, capture stakeholder engagement activities and commitments, and document corrective actions at all sites.

As a member of the Mining Association of Canada (MAC), Hudbay participates in the Towards Sustainable Mining (TSM) program. TSM is based on a set of guiding principles that are supported by protocols and indicators that aim to drive performance and ensure key risks are managed responsibly. These protocols and frameworks are incorporated into our overall management system and company standards. Although we are only required, as members, to implement the program at our Canadian operations, we are implementing the program at all of our operations. Our Constancia mine in Peru has implemented all six protocols, achieving or exceeding a level A ranking (and “yes” in crisis management and communications planning) for all indicators. In 2017, TSM added a seventh protocol: Preventing Child and Forced Labour. Verifications of our compliance with this new protocol will begin for 2018 performance assessments.

Results of our annual TSM assessment are available on the MAC website.

International Best Practice Standards

To inform our sustainability programs and improve our performance, we apply the following international best practice standards:

  • ISO 14001 environmental management standard
  • OHSAS 18001 health and safety management standard
  • ISO 9001 quality management standard for the production and supply of cast zinc products
  • Towards Sustainable Mining – the Mining Association of Canada’s (MAC) set of tools and indicators to drive performance and ensure key mining risks are managed responsibly. While TSM is a requirement for MAC members at their sites in Canada, Hudbay applies these standards internationally as well
  • Voluntary Principles on Security and Human Rights – an operating framework that ensures security practices include respect for human rights
  • Global Reporting Initiative (GRI) – the generally accepted framework for reporting on an organization’s economic, environmental and social performance
  • CDP (formerly called the Carbon Disclosure Project) – thousands of organizations globally measure and disclose their greenhouse gas emissions, water use and climate change strategies through CDP and CDP Water
  • Extractive Industries Transparency Initiative (EITI) – Hudbay is an official supporting company of the EITI. In Peru, we are a member of the Peruvian Mining Society, which is committed to the EITI process in Peru
  • IFC Performance Standards – the International Finance Corporation (IFC), part of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. Hudbay follows the IFC’s Performance Standards on Environmental and Social Sustainability at our Constancia site in Peru

Precautionary Approach

Over the life of a mine, Hudbay operates under the precautionary principle: the duty to prevent harm, when it is within our power to do so and when harm is scientifically plausible but uncertain. We use baseline environmental and social impact studies to evaluate how to avoid, mitigate or control potentially significant impacts; we implement appropriate monitoring and management systems; and we address the need for mine closure. In all cases, we make provisions for public consultation and input.

Industry Involvement

Hudbay participates in industry associations and multi-stakeholder groups through membership, funding, provision of expertise and participation in committees and working groups. Memberships include the following:

  • Aboriginal Chamber of Commerce (Manitoba)
  • AIME – Society of Mining Engineers
  • Alliance of Construction Trades (Arizona)
  • American Exploration and Mining Association
  • Arizona Mining Association
  • Arizona Small Business Association
  • Arizona Tax Research Association
  • Arizona Trail Association
  • Asociación Vida Perú (a non-profit organization that donates medical equipment and medicines)
  • Business for Social Responsibility (BSR) (a non-profit business network and consultancy dedicated to sustainability)
  • Cámara de Comercio Canadá Perú
  • Canadian Council for Aboriginal Business
  • Canadian Institute of Mining, Metallurgy and Petroleum and relevant societies
  • Several Arizona Chambers of Commerce – Benson San Pedro Valley, Greater Oro Valley, Greater Vail Area, Green Valley/Sahuarita, Marana, Nogales–Santa Cruz, Sierra Vista Area, Tucson Hispanic, Tucson Metro
  • Confederación Nacional de Instituciones Empresariales Privadas, CONFIEP (National Confederation of Private Business Institutions in Peru)
  • Cusco Chamber of Commerce
  • Devonshire Initiative (a Canadian forum for leading international development NGOs and mining companies to engage on mining and community development issues)
  • EITI – Extractive Industries Transparency Initiative
  • Empresarios por la Educación (a Peruvian private sector organization to promote and develop educational projects)
  • Flin Flon Chamber of Commerce
  • Grupo de Diálogo, Minería y Desarrollo Sostenible (multi-stakeholder group promoting open and transparent dialogue on mining, environmental protection and sustainable development in Peru)
  • Iniciativa para la Transparencia de las Industrias Extractivas en Perú, EITI–Perú (Extractive Industries Transparency Initiative)
  • International Zinc Association
  • Manitoba Employers Council
  • Metropolitan Pima Alliance
  • Mining Association of Canada
  • Mining Association of Manitoba Inc.
  • Mining Foundation of the Southwest (US)
  • Mining Safety Round Table (a collaborative group of safety-committed mining companies that share experiences and identify best practices)
  • National Mining Association (US)
  • Saskatchewan Mining Association
  • Snow Lake Chamber of Commerce
  • Southeast Arizona Economic Development Group
  • Southeastern Arizona Contractors Association
  • Southern Arizona Business Coalition
  • Southern Arizona Leadership Council

 

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