Integrated report <IR> 2020

Materiality process and material matters

Material matters are those most likely to substantively affect our ability to preserve and create value over time. To identify matters that are material to AngloGold Ashanti, we apply a comprehensive process to determine what these issues are, and to consider their likely effects on our strategy, our performance and governance as well as our outlook.

Determining materiality

Our materiality process aims to identify those economic, social and environmental matters that present material risks, while simultaneously taking into account our governance, external operating context and those issues of particular concern to stakeholders.

1Analyse

  • Review and evaluate our external operating context in terms of political, economic, social, technological, legal and environmental factors
  • Research and analysis of media coverage, analyst reports and emerging industry issues
  • Benchmarking of peer reporting
  • Engage with external stakeholders to understand expectations and needs


2Identify

  • Externally facilitated review process to agree material matters and risks
  • Categorise and rank matters by subject and area

4 Respond, monitor, report and integrate

  • Once identified and ranked, material matters are reviewed and integrated into our strategic objectives and risk management
  • Key performance indicators are developed and applied across the Group and, where appropriate, included in incentive structures
  • Performance is assessed on an ongoing basis and, where appropriate, remedial action taken

3 Prioritise

  • Based on analysis and identification, prioritise those matters and risks that could potentially impact value creation over time or that may result in value erosion
  • Participants include senior management and those responsible for risk management and governance to ensure an integrated approach and alignment with all areas of the business

A materiality workshop, facilitated by external advisers was held in November 2020. Participants in the workshop represented a number of disciplines across the business, including investor relations, finance, environmental, social (safety and health, human resources, communities) and governance. The workshop was preceded by a review of stakeholder input and our external environment to ensure the outcome of the workshop was balanced and constructive.

Senior executives and functional heads of discipline have a common understanding of AngloGold Ashanti’s material issues and risks, the changing risk landscape and the actions required to improve the sustainability of the business.

The top issues were identified and a decision taken to replace some of the issues for reporting purposes.

Our materiality matrix


Our materiality matrix [heat chart]
 

2020 MATERIAL ISSUES


Environment

  • Water
  • Climate change and energy use
  • Tailings management

Cross-cutting

  • Human Rights
  • Artisanal and small-scale mining
  • Integrated closure (including environmental, economic and social considerations)

Governance

  • Business sustainability and growth
  • Navigating through regulatory and political risks

Material matters, related stakeholders and capitals affected

KEY STAKEHOLDERS

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    Investment community
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    Employees and unions
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    Governments and regulators
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    Communities
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    Suppliers
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    Industry partners and peers

OUR CAPITALS

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    Natural capital
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    Human capital
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    Manufactured capital
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    Financial capital
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    Social and relationship capital
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    Intellectual capital

The material issues most likely to affect our ability to create and preserve value, and to affect value created for stakeholders in the long term, are listed in the table below.

 
Related
Material issue
Stakeholders
Capitals and value affected
Employee and community health
(Ebola, malaria, COVID-19 pandemic)
Employees, communities, investment community
  • Human capital
  • Social and relationship capital
Employee safety
Employees, investment community
  • Human capital
  • Manufactured capital
  • Financial capital
Business sustainability and growth
Employees, investment community, governments
  • Human capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital
Building thriving communities
(including local procurement)
Communities
  • Human capital
  • Human capital
  • Financial capital
  • Social and relationship capital
Human rights
Employees, communities
  • Human capital
  • Social and relationship capital
Tailings management
Employees, communities, investment community, governments and regulators, industry peers
  • Natural capital
  • Human capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital
Navigating regulatory and political risks
Governments and regulators, investment community
  • Natural capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital
Water management
Communities, governments and regulators, investment community
  • Natural capital
  • Manufactured capital
  • Social and relationship capital
Climate change crisis and energy use
Communities, investors, governments and regulators, investment community
  • Natural capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital
Integrated closure
(rehabilitation and biodiversity; legacies)
Communities, governments and regulators
  • Natural capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital
Artisanal and small-scale mining
Communities, employees, governments and regulators
  • Natural capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital
  • Social and relationship capital
Security
Employees, communities, governments and regulators
  • Natural capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital
  • Social and relationship capital
Integrated talent management
Employees, investment community
  • Natural capital
  • Manufactured capital
  • Financial capital
  • Social and relationship capital

While these material matters and their relationship to the capitals guide the content of this report, they are discussed more fully in the <SR>.