Sustainable development framework JSE: R183.81 +5.37% NYSE:$9.44 +5.01% GOLD:$2 686/oz +0.36% GOLD:R1 628 968/kg +0.04% USD:ZARR18.86 -0.34% At 12:34pm, 15 Jan 2025 Home » Sustainability » Our approach » Sustainable development framework ESG imperatives are embedded in our strategy through the strategic pillar of responsible stewardship, while business and operational excellence imperatives are embedded in our operational excellence, cash certainty and effective capital allocation strategic pillars. Our sustainable development framework outlines the commitments and actions we take to foster stakeholder trust and comply with regulations while contributing to the UN SDGs. Meaningful stakeholder relationships, engagement and collaboration are critical enablers of the framework. Our ESG imperatives Environmental stewardship Harmony’s commitment to protecting the environment through ecologically responsible mining involves driving environmental sustainability and leadership. We strive for a greener, low-emissions business that leaves a lasting positive legacy. To coexist with the natural environment, it is crucial that we understand and appreciate the negative effects of our operations on the environment. Our environmental strategy enables us to manage, mitigate and offset environmental risks associated with our activities. Social stewardship What we do as a business has a broader impact on the communities surrounding our operations and society at large. Harmony is guided by its socio-economic strategy to deliver on our responsibility of: Fostering relationships of trust with our employees, suppliers, host communities and governments Promoting shared value for all and delivering impact by going beyond compliance Responsibly closing our operations to ensure we create and preserve value wherever we operate. Our social compact is further underpinned by and complies with Harmony’s social and labour plans (SLPs) and mining rights in South Africa, and various agreements including the Hidden Valley memorandum of agreement (MoA) and our cultural heritage and access agreement with the Kalkadoon People in Australia. Governance For Harmony, ethical mining equals ethical leadership that equals corporate trust. Under the board’s leadership, we are committed to good governance practices that are responsive to an ever-changing operational, economical, social and environmental risk landscape. Good governance lies at the heart of our performance and reporting. Guided by our policies and codes, we aim to do the right thing and tell our story honestly while safeguarding the natural ecosystems and communities impacted by our mining activities. Business and operational excellence To ensure that Harmony is pursuing operational sustainability, creating economic benefit and managing business resilience, we aim to improve productivity, efficiency, and maintain cash certainty while increasing margins and delivering shareholder returns – underpinned by our company values, culture and strong leadership. The following priorities will ensure we continue to embed ESG practices across the business: Environmental stewardship Climate action: Decarbonise the business through energy efficiency and Harmony’s renewable energy programme Climate resilience: Ensure Harmony and its infrastructure, sites and operations are adapted to withstand and mitigate the effects of climate change Biodiversity: Mitigate impacts to biodiversity and work towards offsetting through restoring sustainable value to land disturbed by our operations Water: Prioritise security of supply, protection of resource and responsible utilisation and recycling of water resources. Social stewardship Health, safety and wellbeing: Prioritise a strong safety culture, ensuring employee health, safety, wellbeing and zero loss of life Supporting our people: Providing and promoting strong leadership and an enabling culture that ensures we attract and retain an engaged, empowered, diverse and inclusive workforce; maintaining sound labour relations; and providing workforce training and education Partnering for thriving, sustainable communities and our social licence to operate: Strengthen stakeholder engagement and partner for sustainable communities while driving responsible procurement and supply chain transformation. Governance Transparent and ethical mining: Drive ethical business practices, meet or exceed regulatory requirements, and partner with key stakeholders Ethical and accountable leadership: Internalise our commitment and accountability to Harmony’s responsible corporate citizenship, ethical leadership and robust governance standards Governance excellence: Follow a proactive, strategic approach to governance, building on existing strengths to ensure best-in-class governance approaches, embedding ESG into our core strategy and taking a proactive approach to go beyond compliance with ESG legislation. Business and operational excellence Managing business resilience: Anticipate, identify and understand external influences and risks that affect our business, and develop appropriate responses to improve our economic impact and performance Pursuing technology and innovation for environmental, operational and safety improvements: Advance innovation capabilities to unlock and improve our sustainability Managing capital access and allocation for safe, profitable ounces: Capital allocation is aimed at producing safe, profitable ounces and increasing margins through meeting approved capital allocation parameters. Our sustainable development framework was compiled considering the following best practice recommendations, guidelines and frameworks: Harmony is not a member of the World Gold Council, however, our operations conform to the World Gold Council’s Responsible Gold Mining Principles. Harmony is in the process of transitioning its climate-related disclosures from the TCFD to align with the new standards introduced by the International Sustainability Standards Board (ISSB). We submit an annual performance report to CDP Water. This helps us manage the unique water-related risks and opportunities we face in the countries where we operate As a member of the Minerals Council South Africa, we subscribe to its membership compact, a mandatory code of ethical business conduct, and its guiding principles. We are committed to making a meaningful contribution to the SDGs as we understand our role in addressing broader sustainable development issues. We have integrated the SDGs into our sustainable development framework, having identified specific targets for each SDG that we can help achieve. We also: Adopt the principles of the International Council on Mining and Metals (ICMM), the UNGC and UN Voluntary Principles on Security and Human Rights in various sustainable development policies and position statements (Harmony is not a member or signatory to these organisations) Consider the Organisation for Economic Co-operation and Development’s (OECD) guidelines for responsible investment Strive to ensure compliance with local and international guidelines by adopting tailings management best practice.
