BUILDING ON FIRM FOUNDATIONS ... - …

1 SUSTAINABILITY REPORT 2017 BUILDING ON FIRM FOUNDATIONS DELIVERING A SUSTAINABLE FUTUREABOUT THIS REPORTBUILDING ON FIRM FOUNDATIONSDELIVERING A SUSTAINABLE FUTUREIn 2017, anglo american s centenary year, our relentless focus on driving cost and productivity efficiencies through the operations, and on continuing to upgrade the quality of our portfolio, resulted in a step-change in operational performance and profitability. Our ability to maintain strict capital discipline and drive down net debt has substantially restored our balance begin our next 100 years with an ambitious new Sustainability Strategy guided by our Purpose that seeks to build trust, materially enhance the socio-economic benefits of mining, and achieve long term greenhouse gas, energy.

2 Water and biodiversity REPORT 2017 BUILDING ON FIRM FOUNDATIONS DELIVERING A SUSTAINABLE FUTURE132 Other sources of information More information about sustainability at anglo american , including an Excel download of our sustainability data, business unit sustainability reports, and historical reports, can be found in our Annual Report and online at: american newsfeeds/AngloAmerican@AngloAmerican/An gloAmerican/AngloAmerican/AngloAmerican/ company/ anglo -AmericanCover images 1. Plant monitors Lufuno Sivhabu and Pfunzo Dzebu overlooking the process plant at De Beers Venetia mine in South page 21.

3 2. 115 Electrical Solutions, in South Africa, was supported in its growth plans by the Zimele Fund. See page At Mogalakwena platinum mine, in South Africa s water-stressed Limpopo province, technical lead Dean Bothma inspects fibre-optic sensing equipment, enabling accurate, real-time monitoring of all water flows mine-wide. This is the world s first permanent installation using this type of distributed sensing technology. See page 56. 01 anglo american plc Sustainability Report 2017 ABOUT THIS REPORTCONTENTSPURPOSE AND SCOPE OF THIS REPORTOur approach02 Our business at a glance04 Chairman s statement06 Our business model08 Chief executive s review10 Our Sustainability Strategy13 Measuring our performance14 Governance and management approachMaterial matters17 Context and material matters19 Business conduct21 Workforce engagement25 Safety29 Health34 Social performance and human rights40 Socio-economic contribution46

4 Environmental management56 Water62 Climate change67 Mine closure and rehabilitationAppendix71 Assurance statement73 Basis for the preparation of key sustainability data75 Reporting scope76 2017 data 79 Commitments to external initiatives and memberships80 GRI Standards Contents Index86 ICMM and Global Compact Principles 87 Contacts and other informationThis report provides our stakeholders with a transparent account of how we addressed the most material sustainability matters our company faced during 2017. The report is aimed primarily at those who work for us, non-governmental organisations (NGOs), investors, customers, businesses and governments.

5 Several additional mechanisms are in place to ensure that we engage meaningfully with local stakeholder groups on matters that are of specific interest to them. Individual business unit reports are published annually for the De Beers, Platinum, Copper and Kumba Iron Ore businesses, and provide greater detail on performance. These are available on the anglo american website. The anglo american Annual Report includes additional information about the management, operations and financial performance of the Group. This Sustainability Report covers companies, subsidiaries and joint ventures over which anglo american has management control; it does not include independently managed operations, such as Cerrej n and Samancor, unless significant incidents arise.

6 De Beers, however, which has independently managed joint venture operations with the governments of Namibia and Botswana, is included in (PwC) has provided independent assurance over selected sustainability key performance indicators, and on our statement on compliance with the International Council on Mining and Metals (ICMM) Sustainable Development Framework Principles and reporting requirements. The basis of preparation of this report includes guidance from the ICMM Framework, Global Reporting Initiative Standards and related Mining and Metals Supplement, the EU Non-Financial Disclosure Directive, the UN Global Compact Reporting Framework and the UN Guiding Principles Reporting Framework.

7 The anglo american chief executive and the chairman of the Sustainability Committee of the Board have reviewed and approved this VALUESS afetySafety is always first on our agenda. We truly believe that all injuries are preventable and that by working together we can make safety a way of life, inside and outside of the workplace. Care and respectWe always treat people with respect, dignity and common courtesy regardless of their background, lifestyle or position. And we are BUILDING trust through open, two-way communication every single day.

8 IntegrityIntegrity demands taking an honest, fair, ethical and transparent approach in everything we do. It is not about being popular; it is about always doing the right thing. AccountabilityWe take ownership of our decisions, our actions and our results. We deliver on our promises and acknowledge our mistakes. Above all, we never pass blame. CollaborationNo one here is on their own. We are one company with a joint ambition all working together to make decisions and to get things done more effectively. InnovationChallenging the way things have always been done is a priority.

9 By developing new solutions, encouraging new ways of thinking and finding new ways of working, we are dramatically improving our business. 02 anglo american plc Sustainability Report 2017 OUR APPROACH AT A GLANCEOUR BUSINESS AT A GLANCE(1) Number of operating mining assets at 31 December 2017. Reflects the Eskom-tied thermal coal and Union (Platinum) disposals. De Beers mining assets include Orapa, Letlhakane and Damtshaa which are managed as one operation, the Orapa regime . Namdeb includes Nor thern Coastal Mines, Southern Coastal Mines and Orange River Mines.

10 The Group s 40% share in Samancor, classified as located in South Africa, is considered to be one asset within the por tfolio.(2) With the exception of Gahcho Ku , which is on an attributable 51% AFRICAAUSTRALIASINGAPOREBOTSWANAUNITED KINGDOMFINLANDBRAZILCOLOMBIAPERUCANADACH ILEZIMBABWE13222366 NAMIBIA215 anglo american is a globally diversified mining company with a portfolio of world class competitive mining operations and undeveloped resources. As we provide the raw materials on which the world s developed and maturing economies depend, we do so in a way that not only generates sustainable returns for our shareholders but that also strives to make a real and lasting contribution to COPPER$1,508 million Underlying EBITDA 17% Group EBITDA 3 Mining assets(1)2 Projects Finland (Sakatti) Peru (Quellaveco)