Figure 1: Harmony’s board composition as at 23 October 2020 Total members
Chairman and Lead Independent Director 15 4 6 60% 5 Tenure
Less than 5 years Between 5 and 10 years More than 10 years
Independence
9 members of the board are independent, non- executive directors
Independent non-executive directors
Non-executive directors
Executive directors
Source: Harmony Gold 20% 73% Transformation
11 members of the board are historically disadvantaged persons
Historically disadvantaged
Other persons Female Male Female
conditions are rife. These diseases can potentially impact the health of the company’s neighbouring communities, and vice versa. Steenkamp explains that “the mining industry has historically always been at the forefront of dealing with these social issues, and Covid-19 was another one that required we pay extra attention.” As part of Harmony’s Covid-19 protocol, and to promote social distancing, various safety measures, including reduced cage (elevator) capacity for transporting workers underground, and installing underground hand sanitising stations at various points, were introduced. “As a result of these initiatives, we didn’t get the soaring numbers that people anticipated, given that workers are normally in close proximity to each other during mining operations,” says Steenkamp.
Investor relations on the ground Sharing these initiatives with investors is a basic fabric of Harmony’s IR team. Steenkamp believes it’s the role of the IR team to be the “custodians of sharing all news – both good and bad – and always looking for opportunities to share”.
The IR team participates in several investor conferences and calls throughout the year in order to enact this news-sharing. Company announcements and press releases are distributed to a database, and the team also targets new investors and jurisdictions that could potentially have an appetite for an
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emerging market gold-mining firm. Unsurprisingly, the IR team brings together a range of different skillsets. According to Steenkamp, a “numbers person, a marketer, a writer and a lawyer” collaborate to craft a message that is externally shared through various activities. The team maintains a media schedule and a calendar dedicated to monthly communications on ESG topics and company activities in this area.
In addition, Harmony developed an ESG report for the FY19 reporting period and an inaugural Task Force on Climate-related Financial Disclosures (TCFD) report in FY20. Both of these reports accompanied the publication of the company’s integrated annual report. “Our move to the TCFD was designed to improve our risk management process and to more clearly articulate the
A focus on issues such as health and safety, trade union relations, governance, and empowering South Africans previously disadvantaged under the Apartheid regime is something that mining companies have long considered in their messaging. Here, Steenkamp believes that active engagement is the measure of success: “Our main objective is to convince people that there is more to our business than just mining.”
Harmony’s dedication to employee welfare and its wider social commitments is also evident in other measures. For example, over the years it has acquired numerous mining operations from its peers that no longer complemented their strategies. Harmony integrated and optimised these assets, extending the life of mines and turning them into profitable businesses. A good example is the story of Unisel mine. Harmony acquired it in 1996 and extended its operating life by a further 24 years, thereby ensuring job security while uplifting and sustaining local communities and businesses.
Sustainability has always been a part of our DNA
Peter Steenkamp, CEO, Harmony Gold
The company also has a risk management framework to ensure the safety of employees is prioritised and that work- related injuries and fatalities are reduced. “Our total injury and accident frequency rate has improved over the past decade and is now at 7.69 per million hours worked as we strive towards our goal of zero loss of life,” notes Steenkamp.
On the ‘E’ in ESG, Harmony’s ESG Report 20205
seeks to address each of
its sustainability impacts and what it is doing to manage them. This includes land rehabilitation and water management strategies, which are aimed at conserving
representation
5 members of the board are women
67% 20%
Average age 59
likely financial impact of climate change on the company’s balance sheet and income statements,” says Steenkamp. To this end, the IR team liaises with ratings agencies and completes disclosure questionnaires from these agencies.
27% 33%
Distilling ESG messages This proactive approach to sustainability was part of Harmony’s DNA long before ESG became mainstream. The arrival of Steenkamp, a long-time mining safety advocate, in 2016 saw Harmony double down on its focus on the ‘S’ of ESG, which is an important objective given that the mining sector’s reputation has been tarnished by past fatalities, injuries and illnesses.
Images: Alamy
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