“Corporate Sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.”
– From Dow Jones Sustainability Indices website
Last week, Newmont was named to the Dow Jones Sustainability World Index (DJSI World) for the eighth consecutive year. The DSJI World – regarded as one of the most reputable sustainability indices – tracks the world’s largest companies on their long-term economic, environmental and social performance.
The DJSI’s annual review takes a rigorous approach to evaluating a company’s commitment to reduce investment risk by integrating sustainable, responsible practices throughout the business. More than 20 areas of performance are evaluated including occupational health and safety, transparency, climate strategy, environmental reporting and stakeholder engagement.
“The DJSI, which benchmarks our performance against other mining companies, helps us assess where we are meeting our targets, while identifying areas for improvement,” said Elaine Dorward-King, Newmont’s Executive Vice President for Sustainability & External Relations. “This year, we are especially proud of improving our overall score over the prior year and receiving the highest score possible in a number of areas critical to our success including risk and crisis management, biodiversity, water-related risks and stakeholder engagement.”
Embedding sustainability into every aspect of our business ensures Newmont’s long-term viability and success – it creates a safer and more engaged workforce; builds shared value with host governments and communities; mitigates and manages impacts on the environment; and leads to more effective operations through the efficient use of resources. All of which translates to creating value for shareholders.
One powerful example of sustainable business practices creating value is related to climate change.
Extreme weather events – storms, flooding and drought – cost businesses and local economies billions of dollars.
According to Ceres, a nonprofit that advocates for sustainability leadership, the world needs to invest $44 trillion in clean energy over the next 36 years to limit the increase in global temperatures to 2 degrees Celsius – the threshold some experts say is needed to avoid the worst impacts of climate change.
Newmont addresses climate change by investing in renewable and low-emission energy solutions, such as hydroelectric and geothermal power, and in projects designed to reduce or offset greenhouse gas (GHG) emissions, such as carbon-offset forestation. These programs help mitigate energy-related risks such as increased costs, supply volatility, and emissions penalties. At the same time, increasing our reliance on renewable or low-carbon energy sources helps combats climate change by reducing GHG emissions and other environmental impacts.
Another example of how our sustainability practices contribute to value creation is through our socio-economic development programs in the communities where we operate.
Our investments in community infrastructure and capacity-building programs help create mutually beneficial, long-term relationships, which are critical to mitigating the risks and avoiding the costs associated with community conflicts. These investments also are designed to serve as a catalyst for long-term socio-economic development through partnerships with host governments and communities to provide resources – new roads, water systems, healthcare facilities, skills and business opportunities – that last long after our operations cease.
For Newmont, the relationship between sustainable business practices and long-term shareholder value is clear. And through sustainable and responsible mining, we aim to create shared value for our all our stakeholders.
We are proud the DJSI once again recognized Newmont among the top 10 percent of the world’s largest companies for sustainability performance. This recognition is due to the hard work and commitment of our employees who have embraced sustainable business practices into all they do. Finally, congratulations to all the companies named to this year’s list – including Intel, Unilever and Caterpillar – on their efforts to adopt sustainable best practices.
For more information about our approach to sustainability and our performance against our goals, please visit our annual sustainability report, Beyond the Mine.