FLICMA 2024, Brazil
SUSTAINABILITY REPORT 2024
Responsible and innovative mining committed to a better world
ABOUT THIS REPORT OUR APPROACH TO
SUSTAINABILITY
SERVING OUR COMMUNITIES
PROTECTING THE ENVIRONMENT
ENSURING HEALTH AND SAFETY
EMPOWERING OUR PEOPLE
ENSURING WE ARE A
RESPONSIBLE BUSINESS
APPENDIX
ABOUT THIS REPORT CONTENTS
Sustainability is key to our business strategy. We prioritise responsible ESG practices to ensure our long-term prosperity.
Eduardo Hochschild
Company Chair
This report has been prepared to provide our stakeholders with a detailed account of our ongoing work to address the sustainability topics that are most important to our business. The information in this report covers the
sustainability activities and performance of Hochschild Mining PLC (Hochschild) for the year ended 31 December 2024. Company-wide policies and activities
at our operations, including the subsidiaries and joint ventures over which Hochschild has management control or acts as operator, are covered in this report. Our 2024 Annual Report, published in April 2025, includes further
information about the management, operations, and financial performance of Hochschild for the same reporting period as this report. This report has been prepared with reference to the Global Reporting Initiative Standards (GRI). GRI is a globally-recognised standard for sustainability reporting and disclosure.
For further information, please refer to the GRI Content Index in the Appendix.
Hochschild's Chief Executive Officer (CEO) and other senior management members have led its preparation, and the content has been reviewed and approved by the Chair of the Sustainability Committee.
If you would like further information, or to provide feedback, you can read
more at https://www.hochschildmining.com and email us at sustainability@hocplc.com. We look forward to hearing from you.
ABOUT THIS REPORT 2
2024 Sustainability highlights 3
About Hochschild 4
Sustainability Committee Chair's letter 7
OUR APPROACH TO SUSTAINABILIT Y 8
Hochschild's contribution to the Sustainable Development Goals 10
Our governance framework 16
Stakeholder engagement 18
SERVING OUR COMMUNITIES 22
Local communities and socio-economic development 23
PROTECTING THE ENVIRONMENT 29
Our environmental management 30
Climate change 32
Water management 35
Management of waste & tailings 37
Biodiversity and ecosystem services 39
Mine closure and rehabilitation 42
ENSURING HEALTH AND SAFET Y 43
Occupational health and safety 44
EMPOWERING OUR PEOPLE 46
Diversity, equity, and inclusion 47
Labour relations 49
Recruitment, retention, and engagement 49
Innovation through technological solutions 51
ENSURING WE ARE A RESPONSIBLE BUSINESS 52
Respecting human rights 53
Responsible business conduct and ethics 53
Responsible supply chain management 55
Public policy 55
APPENDIX 56
ESG Performance Data 56
GRI Content Index 63
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 2
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
2024 SUSTAINABILITY HIGHLIGHTS
Our ESG performance in 2024 was robust and in line with our commitment to responsible mining.
Eduardo Landin
Chief Executive Officer
26.1%
LOCAL PROCUREMENT
EXPENDITURE
2023: 17.4%
5.58/6
ECO SCORE (VS TARGET OF 5.5 OUT OF 6)
2023: 5.76/6
0
WORK-RELATED FATALITIES
2023: 0
1.22%
% OF NET REVENUE FOR
SOCIAL INVESTMENT
2023: 1 .18%
138
LITRES/PERSON/DAY OF POTABLE
WATER CONSUMPTION
2023: 163 LITRES/PERSON/DAY
3rd/18
2024 MERCO TALENTO RANKING*
(OUT OF 18 MINING COMPANIES IN PERU)
2023: 4TH PLACE OUT OF 16 COMPANIES
All community-related and environment-related KPIs exclude Brazil due to Mara Rosa construction and commissioning activities. Mara Rosa will be included from 2025, which will be the first full year of mining operations.
*The Merco Talento ranking evaluates companies' talent retention and attraction efforts in comparison to peers.
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 3
ABOUT THIS REPORT OUR APPROACH TO
SUSTAINABILITY
SERVING OUR COMMUNITIES
PROTECTING THE ENVIRONMENT
ENSURING HEALTH AND SAFETY
EMPOWERING OUR PEOPLE
ENSURING WE ARE A
RESPONSIBLE BUSINESS
APPENDIX
ABOUT HOCHSCHILD
Overview
With over 100 years of operating experience in the Americas, Hochschild is a leading precious metals company listed on the London Stock Exchange with
a primary focus on the exploration, mining, processing, and sale of silver and gold.
We own six sites in Peru: Ares and Arcata (Arequipa), Selene (Apurimac), Inmaculada and Pallancata (Ayacucho), and Sipan (Cajamarca). In Argentina, we are the majority shareholder and operator of the San Jose mine site in the Santa Cruz province and, in Brazil, we own the Mara Rosa mine site in the state of Goias.
We currently operate two underground epithermal vein mines (Inmaculada and San Jose) and an open-pit mine (Mara Rosa).
Hochschild also has a strong project pipeline with assets located in Peru, Brazil, and Chile. These include the new development project Monte do Carmo in the state of Tocantins, Brazil, as well as former operations that are believed to have geological potential.
The Company is headquartered in Lima, Peru, and has additional offices in Argentina (Buenos Aires), Brazil (Belo Horizonte), and the UK (London).
All entities in Hochschild's financial reporting are also included in its sustainability reporting. Hochschild works through the following subsidiaries: in Peru - Compañía Minera Ares S.A.C., in Brazil - Amarillo Mineracao do Brasil Ltda, and in Argentina,
we are the majority shareholder of Minera Santa Cruz S.A., which operates the San Jose mine. The Volcan project in Chile is owned by Tiernan Gold Corp, a wholly-owned Hochschild subsidiary.
Inmaculada
PERU 221 koz Au Eq
Inmaculada is a 20,000 hectare gold-silver underground mine. The mine consists of 40 mining concessions and is located in the
Ayacucho department in southern Peru.
3,630 Employees & contractors
$57.3m Wages paid
$8.3m Taxes & royalties
San Jose
ARGENTINA
124koz Au Eq
San Jose is a gold-silver underground mine located in the Santa Cruz province, 1,750km southwest of Buenos Aires.
1,788 Employees & contractors
$68.9m Wages paid
$0.1m Taxes & royalties
$82.8m Local procurement
$48.9m Local procurement
Mara Rosa
BRAZIL
64koz Au
Mara Rosa is an open pit gold mine located in the mining-friendly jurisdiction of Goias State.
841 Employees & contractors
$7.6m Wages paid
$- Taxes & royalties
$62.1m Local procurement
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 4
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
OUR CORE ACTIVITIES
How we create value
1. Discover
2. Develop
3. Extract
4. Restore
4. Restore
Strategy for delivery and growthESG
Disciplined capital allocation
Operational efficiency
Brownfield
Sustainability areas of focusREAD MORE
Serving our Communities
READ MORE
Protecting the Environment
READ MORE
Ensuring Health and Safety
READ MORE
Empowering our People
READ MORE
Ensuring we are a Responsible Business
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 5
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
OUR BUSINESS AT A GLANCE
Our purpose: Responsible and innovative mining committed to a better world.
Our cultural attributesreflect our purpose and guide how we operate as a business, shaping our culture and our relationships with our communities, contractors, and local governments. They are the fundamental basis of our sustainability management system along with our Code of Conduct and Group policies.
Inspiring others and recognising talent
We inspire and promote talent: We develop present talent and train new talent for
the future.
Innovation
We innovate: We consistently challenge the status quo to generate better results.
Seeking efficiencies
We always strive for efficiency: Our focus must be on achieving sustainable efficiency.
Demonstrating responsibility
We are always responsible: We make responsible decisions in order to obtain the best results.
- Being conscious and consistent, always acting with integrity and empathy.
Being respectful.
- Being competent and developing our abilities.
Caring to always create the best working environment.
Searching for the best talent, promoting and developing it.
Always challenging, learning new things every day.
Being considerate and forging strong relationships.
Being ambassadors of the Hochschild brand and expressing our pride for it.
Facing day-to-day with creativity, looking for new solutions to known problems.
Promoting ideas and learning from our mistakes.
Generating ties with other professionals, keeping updated on new trends to improve our processes and our business.
Being committed to sustainable growth by seeking new business opportunities.
Seeking to evolve, finding new technology to help our operations.
Always looking for safety solutions.
Being fully informed in decision making, acting consistently to build trust.
Focused on achieving results.
Committed to achieving our goals.
Seeking for continuous improvement and efficiency.
Anything is possible.
Prioritising safety.
Taking responsibility for the consequences of our actions.
Being respectful of, and taking responsibility for, local communities and their surroundings.
Caring for and protecting the ecosystem in which we work.
347.4Koz
EQUIVALENT GOLD PRODUCTION ( ATTRIBUTABLE OUNCES)
2023: 300.8 KOZ
28.8moz
EQUIVALENT SILVER PRODUCTION ( ATTRIBUTABLE OUNCES)
2023: 25.0 MOZ
$421 m
ADJUSTED EBITDA
2023: $274M
6,516
TOTAL NUMBER OF EMPLOYEES AND CONTRACTORS
2023: 5,976
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 6
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
SUSTAINABILITY COMMITTEE CHAIR' S LETTER
Dear shareholderOur purpose at Hochschild is responsible and innovative mining committed to a better world. Sustainability is fundamental
to this purpose, underlying how we operate as a business; it forms our culture and how we work in our day-to-day. It
forms our relationships with our communities, our people, and local governments, and it underpins how we interact with the environment and the physical landscape in which we operate.
This standalone report provides a comprehensive overview of our sustainability-related activities in 2024 and has been prepared with reference to the GRI Standards.
One of our most notable achievements was completing a materiality assessment update, building on the last assessment conducted in 2021. This update allowed us to incorporate one critical new topic - biodiversity and
ecosystem services - alongside our existing material topics of water management, climate change, management of waste and tailings, local communities and socio-economic
development, and occupational health and safety. This update reflects our evolving understanding of sustainability priorities and our commitment to addressing them.
Following the approval of our 16 ESG KPIs in 2023, and their respective 2030 ambitions, we have started to monitor progress internally on a quarterly basis. We have established internal annual action plans and targets aligned with our 2030 ambitions, with support from across our sites in Peru, Argentina, and Brazil. Performance against our ESG KPIs is reflected in the Long-Term Incentive Plan (LTIP), strengthening the importance of ESG as a strategic pillar of the Company.
In 2024, we achieved a Lost Time Injury Frequency Rate (LTIFR) of 1.25, maintained a low number of two High Potential Events (HPEs), and maintained our ongoing target of Zero Fatalities. We are also proud to be the only mining company to hold the Det Norske Veritas (DNV) level 8 certification, reflecting the strength of our safety management information systems.
We achieved an excellent performance in our ECO Score, exceeding this year's target range, the most ambitious to date. Since 2015, we have reduced our potable water consumption by 66% to an all-time low result of 138 l/person/day. On the strength of our ECO Score performance, Hochschild was granted this year - alongside other world-class companies
- the 2024 Sustainability, Environmental Achievement and Leadership (SEAL) Business Sustainability Award in the environmental initiatives category.
Biodiversity remains a top priority for our business, as reflected in its inclusion in our material topics this year. In that sense, we have continued our focus on monitoring biodiversity levels in our areas of direct influence and continue to raise awareness of the biodiversity in our local communities through initiatives such as the Knowledge Trail at Mara Rosa. In addition, we published a book on the biodiversity, social, and historical importance of the Terra Ronca State Park where we compensate the footprint of the Mara Rosa mine site. We look forward to implementing our Andean wetland compensation plan at the Inmaculada mine site together with the Smithsonian Institute, and we are planning a gap analysis on the Company's nature data maturity and preparedness to meet the Taskforce on Nature-related Financial Disclosure (TNFD) and the Carbon Disclosure Project (CDP) nature disclosures.
This year, we made meaningful progress in supporting our local communities. We have worked to strengthen our social engagement strategy and identify various ways of providing support. This included increasing levels of local procurement, collaborating with local governments on public infrastructure projects, and positively engaging through educational, health, and socio-economic development programmes. These efforts resulted in increases in local procurement expenditure to 26.1% (vs 17.4% in 2023) and the proportion of net revenue used for social investment purposes, at 1.22% (vs 1.18% in
2023). Additionally, we are proud that there were zero days of operational disruption caused by social related issues in 2024.
Driving gender diversity within our own workforce remains high on our list of priorities and is reflective of the challenges faced by the industry. In 2024, the proportion of women in our workforce increased to 10% (vs 9.62% in 2023). Initiatives such as the Future Women Scholarships ("Beca Futuro Mujer") and our partnership with Harassment-Free Workplaces ("Espacios Laborales Sin Acoso" - ELSA) are key components of our efforts to create a more inclusive workplace.
We remain committed to strengthening our approach to responsible business practices. To demonstrate this, we are publishing our first Modern Slavery Statement and we will be performing a human rights risk assessment throughout our operations, which will lay the groundwork for a comprehensive human rights-focused due diligence framework.
As we look ahead, our strategic focus over the next 3-5 years will continue to be guided and informed by the progress we make against our 2030 ESG ambitions.
We are also proud to have signed a second sustainable corporate loan, with an interest rate that is adjusted in line with our performance in three distinct areas: safety, fresh water consumption, and recycled waste.
Achieving net zero by 2050 and reducing scope 1 and 2 Greenhouse Gas (GHG) emissions by 30% by 2030 (in comparison to our 2021 emissions) remains central to our
climate strategy. Because of this ambition, we are continuing Tracey Kerr
The safety of our people is an integral measure of our corporate success and remains our highest priority.
our focus on driving operational efficiency at existing mines and increasing the procurement of green electricity. In 2025, we will conduct a financial quantification of climate-related risks.
Chair, Sustainability Committee
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 7
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
Our approach to sustainability
Sustainability is a vital consideration at all stages of the mining cycle, from discovery to development, extraction, and to closure. It is a strategic imperative for Hochschild and is fundamental to our purpose.
Our long-term business model is guided by our Corporate Sustainability Policy, offering an attractive investment opportunity for our shareholders through the creation of long-term value from safe, innovative, and environmentally-sound operations. To ensure our purpose is achieved, in 2024 we completed an update of our 2021 materiality assessment.
This update allowed us to identify the sustainability topics that are most relevant to our business, value chain, and stakeholders. Hochschild's five sustainability focus areas (visualised in the following pages) outline how our material topics link to, and are supported by, our commitment to the achievement of the United Nations Sustainable Development Goals (SDGs). Our approach to materiality and how this interacts with the SDGs is outlined on page 10.
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 8
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
Key changes in materiality
Our materiality assessment in 2021 highlighted four topics as being of 'very high priority' for Hochschild to address: 'Positively impacting local communities and supporting socio-economic development', 'Water management', 'Climate change resilience', and 'Occupational health and safety'. Since then, the importance of certain sustainability topics has shifted from a business and impact perspective. Our
2024 materiality update confirmed the continued high importance of these topics whilst also identifying two additional topics that have increased in importance for the business since 2021:
Biodiversity and ecosystem services: This topic was viewed as a 'medium priority' topic in 2021 and has been considered a new material topic in 2024. Stakeholders linked this topic to local communities and socio-economic development,
noting the potential for effective management of each of these topics to de-risk the other. They also recognised the emerging relevance of this topic to mining companies and its interaction with other environmental topics.
Management of waste and tailings: Already a 'high priority' topic in 2021, this topic has risen notably in importance since the 2021 materiality assessment. Waste was recognised as material to the business due to the potential for waste and tailings to
affect local community health and degrade the environment. Mine closure in particular emerged as a recurring theme amongst stakeholders, linked to socio-economic legacy, waste piles, and tailings.
READ MORE See 'Protecting the Environment' for information on how we are addressing these two environmental topics.
The findings provide a mature understanding of the most material impacts, risks, and opportunities that we face relating to sustainability, within our business and broader value chain. The results also feed directly into our strategic focus areas, which can be found on the following pages. Going forward, we will undertake a materiality update every two years.
OUR APPROACH TO SUSTAINABILIT Y CONTINUED
Materiality update: defining what matters
In 2024, we undertook an update of our 2021 materiality assessment with ERM, a sustainability consulting firm. This enabled us to identify and report on the sustainability topics that (i) Hochschild has the potential to have a social or environmental impact on, and (ii) may create financial risks or opportunities for our business. Our sustainability focus areas provide an overview of how our environmental, social, and governance topics feed into our broader sustainability activities. The three-step process to identify material issues is described below.
1. Identifying potentially material topicsWe conducted desk-based research on the business' current focus areas as well as the evolving external sustainability landscape. This included reviewing a range of sustainability standards and frameworks such as the SDGs, GRI Mining Sector Standard, Corporate Sustainability Reporting Directive (CSRD), and the Task Force on Climate-Related Financial Disclosures (TCFD). We also reviewed key sustainability trends emerging in the mining and metals industry, using a range of published sources and reports. From this, we developed a long list of potentially material topics that could then be refined through stakeholder engagement.
2. Refining topics through stakeholder engagementExtensive engagement with our key internal and external stakeholders was completed through interviews and
surveys. The internal stakeholders were selected based on their sustainability expertise and knowledge of Hochschild's business. The external stakeholders included a representative group of investors, key suppliers, customers, industry associations, and NGOs. The insights from this engagement were used to refine the list of topics and inform the analysis, scoring, and prioritisation of topics in the following phase.
3. Scoring and prioritising topicsOur material topics were identified by scoring each topic on two dimensions:
(i) financial materiality - the effect of the relevant matter on Hochschild and (ii) impact materiality - the impact of Hochschild on society
or the environment. The results of the assessment were then formally reviewed and validated during
a workshop with a core internal working group.
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
OUR APPROACH TO SUSTAINABILIT Y CONTINUED
Hochschild's contribution to the Sustainable Development Goals
At Hochschild, we are committed to the United Nation's 2030 Agenda for Sustainable Development and recognise that meeting the goals they set out requires the global co-operation of governments, civil society, and businesses. As such, we
are working, where we can, to align our activities, efforts, and resources in a way that brings about positive social, economic, and environmental outcomes that support the achievement
of the SDGs.
Our five focus areas Our topics How we contribute to the SDGs Example focus areas in 2024
Serving our communities
READ MORE
Page 22 of this report
Local communities and socio-economic development
Fair and transparent land acquisition and resettlement
Ensure healthy lives and promote well-being for all at all ages
Our initiatives at local communities cover the provision of medical support and nutrition information.
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Hochschild provides learning opportunities through our educational programmes.
Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all
Wherever we operate, we aim to leave a lasting, positive legacy on the local communities through our economic contribution and position as a source of employment.
Implementing awareness and education campaigns and medical support through our Always Healthy and Fight Against Anemia programmes.
Sponsoring higher education scholarships in technical mining subjects through "Quri Yachay" (Golden knowledge in Quechua) scholarship programme.
Launching the HOC Scholar Community programme, which aims to enhance education, provide vocational guidance, and offer emotional support to technical and university students.
Making social investments in Peru and Argentina of $9.73 million, including investments in digital connectivity, education, health and nutrition, and socio-economic development. In addition, we invested $2.56 million in Brazil.
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
HOCHSCHILD' S CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS CONTINUED
Our five focus areas Our topics How we contribute to the SDGs Example focus areas in 2024
Protecting the environment
READ MORE
Page 29 of this report
Climate change Water management
Management of waste and tailings
Biodiversity and ecosystem services
Mine closure and rehabilitation
Ensure availability and sustainable management of water and sanitation for all.
We aim to make optimal use of water resources as a part of our strategy for responsible water management. We promote the responsible use of fresh water in our mining assets and our progress is measured by our ECO Score and ESG KPIs and 2030 ambitions.
Ensure access to affordable, reliable, sustainable, and modern energy for all
Our 2030 ambition to reduce scope 1 and 2 emissions and annual action plans towards it, including the transition to renewable energies in all three countries, emphasise our commitment with ensuring access to sustainable energy.
Ensure sustainable consumption and production patterns.
We aim to increase resource efficiency through continual innovation. One focus of our Innova campaigns, for example, is to improve and reduce our consumption of water and reduce or repurpose the waste we generate.
Take urgent action to combat climate change and its impacts
Acknowledging the global significance of climate change, we are committed to taking the necessary measures
to continually reduce our greenhouse gas emissions footprint by maximising our operational energy efficiency, increasing our use of renewable energy sources.
Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
Our goal is to preserve natural assets for future generations. As such, we have policies and commitments to halt and reverse biodiversity loss.
Modifying the water storage and circulation system at San Jose to minimise our fresh water consumption.
Equipping environmental ambassadors with tools to apply their environmental
knowledge, driving projects that improve waste management, water use, energy savings, and promote our environmental culture.
The reuse of tailings and waste rock as backfill for the underground mines, and the continuous sale of waste rock to a rail company.
Implementing the Mara Rosa green energy project by sourcing its entire energy needs through solar generation.
Reusing 100% of treated domestic wastewater in the Inmaculada and San Jose processing plants.
Contributing to environmental and heritage education through the Knowledge Trail in Mara Rosa.
Developing compensation plans for Inmaculada alongside the Smithsonian Institute for the preservation of biodiversity.
Implementing the Mara Rosa compensation plan by donating land to the Terra Ronca State Park.
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
HOCHSCHILD' S CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS CONTINUED
Our five focus areas Our topics How we contribute to the SDGs Example focus areas in 2024
Ensuring health & safety
READ MORE
Page 43 of this report
Occupational health and safety
Ensure healthy lives and promote well-being for all at all ages.
Safety is our number one priority. We make every effort to safeguard the health and well-being of our employees, contractors, and communities.
Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
We promote safe and secure working environments for all of our workers and provide training to employees and contractors around identifying and addressing safety-related risks in the workplace.
Maintaining zero fatalities and a very low LTIFR of 1.25.
Achieving a corporate annual SeguScore of
8.96 out of 10 (an in-house safety performance indicator that measures both proactive and reactive safety metrics).
Raising awareness of breast and prostate cancer and prevention in Mara Rosa, offering free tests to the local community and reinforcing the importance of self-care and early detection.
Empowering our peopleREAD MORE
Page 46 of this report
Diversity, equity, and inclusion
Labour relations
Recruitment, retention, and engagement
Innovation through technological solutions
Ensure healthy lives and promote well-being for all at all ages.
We commit to providing an integrated approach to employee welfare, supporting our people's health and, ultimately, improving employee motivation and productivity.
Achieve gender equality and empower all women and girls.
Diversity, inclusivity, and a conducive work environment that promotes equal opportunities for all are fundamental to the sustainability of our Company.
Welcoming our second cohort of the Future Women Scholarship, aimed at developing technical skills in mining and enhancing the employability of women from local communities.
Performing a Company-wide survey to identify opportunities for improvement and providing training on the prevention of workplace violence and harassment.
Almost 80,000 hours of training were delivered in 2024.
Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
We upskill our employees to broaden their career opportunities whilst also providing external training to students in local communities with the aim of gradually increasing the talent pool in our local communities.
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SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
HOCHSCHILD' S CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS CONTINUED
Our five focus areas Our topics How we contribute to the SDGs Example focus areas in 2024
Being a responsible business
READ MORE
Page 52 of this report
Respecting human rights
Responsible business conduct and ethics
Responsible supply chain management
Public policy
Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
Hochschild is committed to protecting the labour rights of workers throughout the supply chain and supports this, where possible, by partnering with businesses in its local communities.
Widening the scope of our Human Rights Policy to cover human trafficking, freedom of association, and the right to collective bargaining, in line with our existing Code of Conduct.
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
OUR AREAS OF FOCUS
Our 2030 ambition
>50%
BOARD CONSIDERED BY INVESTORS TO
BE INDEPENDENT
60%
20
LOCAL WORKFORCE VS TOTAL
WORKFORCE
After the selection of the ESG KPIs, our ambitions for each of them in 2030, and their approval by the Board of Directors in 2023, we have established a multidisciplinary team led by our Corporate Sustainability Director to set yearly interim targets with corresponding action plans. Any costs associated in implementing the ESG action plans are incorporated into our operating budgets. The Sustainability team works with all departments to ensure we stay on track to meet our yearly targets and ultimately achieve our 2030 ambitions.
These KPIs can also be found on our website: https://www.hochschildmining.com/sustainability/ sustainability-reports-and-policies/
We will review the continued relevance of these indicators
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u
o
ESG is central to how we do things at Hochschild. To support us, we have established world-class policies and programmes to ensure that the entire organisation is aligned and focused on
<5%
VOLUNTARY TURNOVER
20%
WOMEN IN
LEADERSHIP ROLES
GHG SCOPE 1+2 EMISSIONS
E
e
h
t
g
n
REDUCTION (%) 1
u
i
t
c
e
t
o
r
P
y
t
e
f
a
174
a
e
H
g
n
i
r
S
d
n
a
h
t
POTABLE WATER
l CONSUMPTION
(LITRE/PERSON/DAY)
80%
0.90
DOMESTIC WASTE LANDFILLED
(KG/PERSON/DAY)
achieving our 2030 ambitions.
David Vexler
Corporate Director, Sustainability
Measured as a reduction against the 2021 baseline.
Calculated as total number of lost time injuries per 1,000,000 labour hours.
Previously under the category "Empowering our people", re-classified for consistency between employee-related and Board-related KPIs.
0
FATAL ACCIDENTS
1.20
LOST TIME INJURY FREQUENCY RATE 2
RECYCLED WASTE
VS WASTE GENERATED
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 14
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
OUR AREAS OF FOCUS CONTINUED
Sustainability disclosures and index ratings
Hochschild is pleased to report that our external sustainability ratings have gradually improved over the course of 2024, namely FTSE4Good, Sustainalytics, and MSCI benchmarks. We are also proud of the Company's inclusion in the FTSE4Good Index.
Starting in 2025, results from rating agencies will form a part of the Company's performance goals, thereby feeding into the
annual review and bonus schemes. ESG-related matters have a 25% weighting overall in the corporate bonus scorecard, which is broken down as follows:
15% weighting related to safety;
5% weighting for environmental results measured through our ECO Score; and
5% weighting with respect to Hochschild's external ESG ratings.
For climate-specific disclosures, we developed our 2024 report based on the CFD framework, details of which can be found on our website:
CDP Climate
2023: B
B
CDP Water
2023: B-
B-
FTSE4Good (/5)
2023: 3.6
3.8
Sustainalytics
2023: 28.6 MEDIUM RISK
28.4
Medium Risk
MSCI
2023: BB (4.4)
BB
(4.5)
https://www.hochschildmining.com/sustainability/sustainability-reports-and-policies/
Through these external disclosure frameworks, we are committed to providing our stakeholders with an ongoing and transparent account of our material topics and to outlining the steps we are continually taking to improve our sustainability performance.
Going forward, we will publish a standalone Sustainability Report every two years, which covers, in detail, the sustainability activities and performance of Hochschild. In the years we do not publish such a report, we will publish a detailed sustainability section within our Annual Report. Our last standalone report was published in 2021, in accordance with the 'Core' option of the GRI. Our sustainability reporting can be found here:
https://www.hochschildmining.com/sustainability/sustainability-reports-and-policies/
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
OUR GOVERNANCE FRAMEWORK
Our Board of Directors holds ultimate responsibility for establishing Group policies on sustainability. Chaired by Eduardo Hochschild, the Company's largest shareholder, the Board currently consists of eight members(1).
The Sustainability Committee, an official sub-committee of the Board, comprises Hochschild's CEO, an independent Director, and is chaired by a second independent Director.
Hochschild's Chief Operating Officer (COO), Vice Presidents of Legal and Public Affairs, People and Corporate Affairs, and the Corporate Sustainability Director are regular attendees.
The role of the Sustainability Committee is to oversee and to make all necessary recommendations to the Board in connection with ESG issues as they affect the Company's operations. For example, the ESG KPI ambitions for 2030 were recommended by management and were presented to the Sustainability Committee for review and consideration.
After adequate review and discussion with management, the Sustainability Committee submitted these ambitions to the Board for approval.
The discussion and management of climate-related issues are also a scheduled agenda item during every Board meeting
as part of the discussion on principal risks. This supports the management of, and reporting against, CDP and the TCFD. During these meetings, the Committee provides
recommendations to the Board on climate change and GHG emissions related topics that are material to Hochschild's operations and business plans.
The Sustainability Committee also manages the processes around ESG-related risks and opportunities, oversees compliance with relevant national and international standards, and reviews the policies and procedures in place for investigating relevant incidents. The Committee reviews yearly ECO Score targets and ESG KPIs and presents these to the Board for approval.
The committee is chaired by Tracey Kerr who has Board-level responsibility for sustainability matters, including health and safety, climate change, water management, community relations, governance, human rights and ethical business conduct through the oversight of the Code of Conduct.
She is also the Designated Non-Executive Director for Workforce Engagement.
Maximum
possible Actual
Members Independent attendance attendance
Tracey Kerr
Eduardo Landin Chief Executive Officer | No | 4 | 4 |
Mike Sylvestre Non-Executive Director | Yes | 4 | 4 |
Non-Executive Director (Chair) Yes 4 4
Conflict of Interest: The Board has established effective procedures to enable the Directors to notify the Company of any actual or potential conflict situations and for those
situations to be reviewed and, if appropriate, to be authorised by the Board, subject to any conditions that may be considered necessary. In keeping with the approach agreed by the Board, Directors' conflicts are reviewed annually.
Directors of the Company who have an interest in matters under discussion at Board meetings are required to declare this interest and to abstain from voting on the relevant matters. Any related party transactions are considered and, if thought fit, approved by a committee of the Board consisting solely of Independent Directors.
Possible conflicts of interest could arise from: cross-shareholdings with suppliers and other stakeholders and actions/transactions by a controlling shareholder.
Risk management: A "live" risk matrix is maintained which maps the significant risks faced by the business as well as those considered to be emerging risks. The matrix is reviewed and updated at each quarterly Risk Committee meeting, and the most significant current and emerging risks, as well as actions to mitigate them, are reported to the Group's Audit Committee, and if considered appropriate, also to the Board.
Remuneration: Hochschild's Remuneration Policy outlines the approach to remuneration for Executive Directors, Non-Executive Directors, and senior management. The
Remuneration Committee, composed solely of Independent Non-Executive Directors, oversees the design and implementation of the policy.
Hochschild Board
Sustainability Remuneration Audit Committee Committee Committee
Nomination Committee
CEO
Corporate Audit and Compliance
Company Secretary
Vice Presidents
Corporate functions Internal Audit Compliance Finance Technology
Corporate Sustainability Director
Country Managers
ESG Governance structure
The Board comprises the Chair of the Board, who is not a senior executive, the CEO and six Non-Executive Directors of which five are Independent Non-Executive Directors.
ABOUT THIS REPORT
OUR APPROACH TO
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PROTECTING THE
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EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
OUR GOVERNANCE FR AMEWORK CONTINUED
Hochschild Board
The Hochschild Board comprises a majority of Independent Non-Executive Directors and is responsible for approving the Company's strategy and monitoring its implementation, overseeing the management of operations, and providing leadership and support to the senior management team in achieving sustainable added value for shareholders.
Audit Committee
Monitors the integrity of the Company's financial statements;
Monitors the effectiveness of the Company's internal controls and risk management systems;
Oversees the relationship with the Company's external auditors; and
Reviews the effectiveness of the external audit process.
Remuneration Committee
Determines and agrees with the Board the broad policy for the remuneration of the Executive Directors, the other members
of senior management, and the Company Secretary, as well as their specific remuneration packages, including pension
rights and, where applicable, any compensation payments.
Sustainability Committee
Oversees and makes all necessary recommendations to the Board in connection with all ESG-related topics, including: health and safety, human rights, climate change and the protection of the environment, social responsibility, and governance. In particular, it oversees compliance with national and international standards to ensure that effective systems
of standards, procedures, and practices are in place at each of the Company's operations, as well as compliance with the Company's Code of Conduct and all ESG-related corporate policies.
Nomination Committee
Identifies and nominates candidates for the approval of the Board to fill Board vacancies and makes recommendations to the Board on Board composition and balance. The Nomination
Committee also prepares the Board Chair's job description including any other significant commitments that he should be responsible
for. In addition, the Nomination Committee has been authorised by the Board to review a proposed Director's external interests to identify any actual, perceived, or potential conflicts of interests.
ABOUT THIS REPORT
OUR APPROACH TO SUSTAINABILITY
SERVING OUR COMMUNITIES
PROTECTING THE ENVIRONMENT
ENSURING HEALTH AND SAFETY
EMPOWERING OUR PEOPLE
ENSURING WE ARE A
RESPONSIBLE BUSINESS
APPENDIX
STAKEHOLDER ENGAGEMENT
We are focused on driving long-term sustainable performance for the benefit of our customers, shareholders, and wider stakeholders.
Our stakeholders
Customers Shareholders
Only by fully understanding our stakeholders' needs and their expectations can we measure the extent of our success.
To ensure we maintain strong, respectful, and mutually beneficial relationships with all our stakeholders, we invest in meaningful two-way dialogue, carefully adapted to the needs of each of our stakeholder groups. These stakeholder perspectives inform our strategic decisions.
We engage with our stakeholders through numerous channels, with significant matters reported to the Board as part of its consideration of quarterly risk management updates.
Suppliers/ Lenders
Government/ Regulators
Employees
Communities
HOCHSCHILD MINING PLC SUSTAINABILITY REPORT 2024 18
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
STAKEHOLDER ENGAGEMENT CONTINUED
Stakeholder group Engagement activities Issues raised in 2024 Stakeholder group Engagement activities Issues raised in 2024
Shareholders
Our shareholders are investors and owners of the business. We seek to establish and maintain constructive relations with all shareholders through open dialogue and an ongoing programme
of engagement.
We interact with our shareholders and seek a better understanding of their expectations through various channels during the
year with the participation of the CEO, Chief Financial Officer (CFO), members of the Board, the Company Secretary, and the Head of Investor Relations. These channels take different forms and include participation at sector-specific conferences,
discussions with proxy agencies, as well as direct meetings with shareholders and through the Annual General Meeting.
During 2024, our regular calendar was supplemented by:
A site visit in October 2024 for analysts and investors to the Mara Rosa mine site;
The use of the Investor Meet platform for the second consecutive year, providing individual shareholders the opportunity to receive the H1 2024 results presentation by the CEO and CFO, and to
participate in a Q&A session; and
Ad-hoc interaction with significant shareholders on governance matters.
Updates on the operation of the Mara Rosa mine site;
Strategy in relation to the Monte Do Carmo asset;
Permitting progress and timeline of Royropata project;
Macro-economic and political developments in Argentina;
Revised Directors' Remuneration Policy; and
Chair succession.
Employee engagement generally takes many forms and includes the use of surveys,
Employees
We acknowledge that our success relies greatly on our people. We seek to attract, retain, and develop our people through competitive remuneration, a positive and safe working environment, and equal opportunities for all.
presentations, and Q&A sessions with management. Our 2024 programme included:
The continued use of the Brilla HOC platform to acknowledge the achievements of our people;
Culture and safety perception surveys conducted across the three countries of operation, followed by in-person workshops to consider results and action plans;
A working climate survey;
The continuation of the online forum chaired by Tracey Kerr, the Non-Executive Director designated for Workforce Engagement;
A site-visit by Board members to the Mara Rosa mine site;
A workshop led by the taskforce established for the Group's goals on ESG for all female workers at the Mara Rosa mine site; and
Regular meetings with labour unions to negotiate collective agreements and discuss matters of interest.
The working climate survey provided detailed insight into the employees' perspectives including:
The potential to further develop innovation
to address operating challenges;
Review of recognition and rewards;
Further investment in professional development;
Further embedding of HOC's core values within Brazilian operations;
Progress of the Group's strategies on ESG matters;
Promoting cross-functional collaboration to facilitate continuous improvement; and
Enhancements to specific mine-site conditions.
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
STAKEHOLDER ENGAGEMENT CONTINUED
Stakeholder group Engagement activities Issues raised in 2024 Stakeholder group Engagement activities Issues raised in 2024
Communities
We recognise our social commitments to (a) produce the
smallest environmental footprint possible
and (b) understand the needs and
expectations of our local communities. Through close collaboration, we implement sustainable development programmes in our areas of operations.
We adopt a varied approach to engaging with local communities including:
Direct interaction with local authorities and residents. During the year, the Company launched a toll-free telephone number and an email address for use by communities close to the Mara Rosa mine site;
Our Permanent Information Offices (PIOs) at Pallancata, Inmaculada, and Perito Moreno (the town closest to the San Jose mine site) and town hall meetings;
Participation in formal roundtables with the participation of community representatives and national authorities;
The holding of collaborative events on a range of themes of local interest which, in Brazil, included workshops on cancer prevention and environmental conservation; and
The implementation of local purchasing and hiring protocols.
Environmental issues;
Local hiring and purchasing;
Provision of scholarships for primary, secondary, and technical education;
The development of programmes for socioeconomic development in local communities surrounding the
San Jose mine site, aiming to provide career development opportunities through technical and professional training;
The impact of proposed projects on the local area;
The Company's sustainability commitments; and
Infrastructure projects.
The Vice President of Legal & Public Affairs oversees regular interaction with relevant authorities and regulators in Peru, both at a Company level but also through the National Mining Association. Various teams also regularly interact with public officials and regulators as part of their operational functions.
Government/ Regulators
It is our aim to maintain a constructive relationship and open dialogue with the various governmental authorities we interact with in each of the countries where we operate.
The equivalent role in our Argentinian joint venture is undertaken by the President, General Manager, and General Counsel. The Company also actively participates in the National Mining Association.
In Brazil, the General Manager and General Counsel lead engagement activities with governmental authorities.
The Company Secretary is responsible for engaging with authorities in the UK resulting from the Company's London listing and reporting in line with regulatory requirements.
Permitting;
Health, safety, and environmental performance and compliance;
Climate Change reporting;
Contribution to regional development such
as through local job creation and investment in social programmes/ infrastructure; and
Enhancements to financial reporting disclosures.
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
STAKEHOLDER ENGAGEMENT CONTINUED
Stakeholder group Engagement activities Issues raised in 2024 Stakeholder group Engagement activities Issues raised in 2024
Suppliers/ Lenders
As a key influence on how we operate our business, we seek a relationship
of mutual benefit while requiring high standards of conduct.
The General Managers of our Peruvian, Argentinian, and Brazilian operations maintain ongoing dialogue with suppliers to the mine sites. This is carried out directly and, in the case of our joint venture in Argentina, through organisations representing suppliers in the Province.
Other suppliers, including lenders, are managed by the relevant functional department such as Technology, Group Finance, etc.
With regards to its existing lenders, the Company maintains an open dialogue on relevant business developments.
Providing suppliers with access to cost-efficient financing through a factoring programme that leverages HOC's risk profile;
Our sales and logistics teams - Discussions on oversee a relationship of commercial terms in
co-operation and constant light of fluctuations dialogue. During the year, the in the supply of Company continued to establish concentrate; and
new commercial relationships - The cost of shipping
to mitigate the risk of a product from San Jose
concentrated customer base and in Argentina due to
its vulnerability to geopolitical inflationary pressures.
developments.
In addition to usual relationship management, Hochschild attended LME Week in London and CESCO Week in Chile for customer engagement.
Customers
Due to the nature of what we produce, Hochschild has relatively few customers. As a result, successful relations with our customers are of critical importance
to our business.
The maintenance of stocks of critical
consumables and spare parts to mitigate supply chain risks;
Ongoing discussions with suppliers due to inflationary pressures. This resulted, among other things, in renegotiation of terms and the adoption of long-term agreements with fixed or tiered-pricing;
Discussions with the lenders of the Group's Medium-
Term facilities on the Group's sustainability performance; and
This resulted in the refinancing of the
$300m MTF with an interest rate that is subject to a
reduction in line with HOC's environmental performance.
ABOUT THIS REPORT
OUR APPROACH TO SUSTAINABILITY
SERVING OUR COMMUNITIES
PROTECTING THE ENVIRONMENT
ENSURING HEALTH AND SAFETY
EMPOWERING OUR PEOPLE
ENSURING WE ARE A
RESPONSIBLE BUSINESS
APPENDIX
Serving our communities
2024 Highlights(2)
26.1%
LOCAL PROCUREMENT EXPENDITURE(3)
2023: 17.4%
Alignment to UN SDGs
1.22%
SOCIAL INVESTMENT VS NET REVENUE
2023: 1.18%
Our approach to serving our communitiesThe focus of our social engagement strategy is on generating positive impact. We do this by building long-lasting partnerships with local communities and through implementing initiatives that aim to address their needs.
Our initiatives cover a wide range of development areas, from the provision of medical support
and digital facilities to the coaching of female entrepreneurs and mining students. To ensure that our programmes are sufficiently targeted, we invest resources to understand what these needs are and maintain open and
transparent dialogue in our engagement. We also keep our communities informed of any relevant company developments that may affect them and actively engage with them in these decision-making processes.
Our approach to generating positive impact is guided by our Community Relations Policy which emphasises our dedication to building trust and listening to community concerns. At Hochschild, we consider how our operations may affect the local community (including indigenous communities), either directly or
indirectly; this consideration is formally included within our application for environmental permits, under the Free Prior Informed Consent (FPIC) process, and by conducting social
impact assessments as part of our permitting applications prior to settling in new areas.
Within this strategic pillar, we have identified the following material topic: Local communities and socio-economic development. Alongside this, we also continue to monitor the topic of fair and transparent land acquisition and resettlement.
Progress against our 2030 ambitions1
2021 Baseline 2022 2023 2024 2030 Ambition
Local workforce vs total workforce (%)
51.2%
52.6%
59.1%
59.3%
60%
Local procurement vs total procurement (%)
12.2%
15.3%
17.4%
26.1%2
20%
Social investment vs revenue (%)
0.84%
0.94%
1.18%
1.22%2
0.90%
Local refers to businesses operating within the regions where the Company operates
(Peru: Apurimac, Arequipa, Ayacucho, and Cajamarca; Argentina: Santa Cruz) or businesses operated by local communities but registered outside of the regions listed above.
Community-related KPIs exclude Brazil due to Mara Rosa construction and commissioning activities. The Mara Rosa mie site will be included from 2025, which will be the first full year of mining operations.
Community-related KPIs exclude Brazil due to Mara Rosa construction and commissioning activities. The Mara Rosa mine site will be included from 2025, which will be the first full year of mining operations.
It is important to recognise that achieving our 2030 ambitions today does not guarantee similar performance in the years ahead, as mine sites cease operations and new ones are incorporated over time. As such, continuing to meet our targets will require sustained effort and careful management as we adapt to change.
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
MATE RIAL TOPIC
SERVING OUR COMMUNITIES CONTINUED
Local communities and socio-economic developmentAt Hochschild, we are proud of the work we do to support our local communities. We invest our resources to understand the rights, needs, and expectations of our communities and governments, with a particular focus on education, digital connectivity, health and nutrition, and socio-economic development. Where possible, we look for opportunities for community and governmental collaboration to ensure that
our social investment strategies are implemented successfully and have a long-lasting impact. We strive to promote close long-term collaboration with local communities, with full respect for local customs and social dynamics. Through
the implementation of our social engagement strategy, our intention is to build trust and a mutually beneficial relationship with all communities in our direct area of influence. We do this through the following:
Engaging with our communities;
Community investments;
Social programmes and initiatives;
Supporting local governments;
Local employment; and
Procurement of local goods & services.
Through focus groups, site visits, and meetings with authorities, we engage regularly with our community members and gather detailed feedback; this helps us understand the needs of our communities and the social impact that we can have through our operations. Hochschild's impacts are particularly evident
in key mining operations such as Inmaculada and San Jose, where the company's investments have stimulated local markets, increased employment opportunities, and attracted further economic activity.
We have PIOs in the communities of Pauza and San Francisco de Rivacayco, which serve the Inmaculada mine site; in the communities of Tucsa and Iscahuaca serving the former Pallancata mine site, and in Perito Moreno, serving the
San Jose mine site. The purpose of the PIOs is to support the communities, providing a central point of contact for communities to ask questions or express concerns about our mining operations. The PIOs also receive and manage any grievances that may arise, addressing the communities' concerns and rights in a confidential manner. To address ongoing community concerns, we have a formal grievance procedure in place to respond to complaints, inquiries, and requests from local communities. Through it, in 2024, we
received 17 grievances and responded to 13, with the remaining in process at the time of publication, with an average response time of 21.8 days.
Community investmentsWe make investments in various social programmes that benefit the communities in our areas of influence as a core part of our overall community strategy. In 2024, Hochschild made social investments of approximately $ 9.73 million in 2024 in Peru and Argentina, including ad-hoc philanthropic campaigns and the provision of technical assistance to municipalities.
We are pleased to report that these social investments in 2024 represented 1.22% of our net revenue of Peru and Argentina, exceeding our 2030 ambition of 0.90%.
In addition, we invested $ 2.56 million in social investments in the Mara Rosa region in 2024. With the first full year of operations, detailed social statistics relating to our Mara Rosa mine site will be included in next year's Annual Report and will be included in the KPI of social investments against our net revenue.
We also have social investment programmes in our project pipeline. For instance, in Chile we have an agreement with the National Corporation of Indigenous Rights (CONADI) to provide monthly financial support to local communities, ensuring they can distribute funds among their members for educational expenses. Its objective is to aid students who need to travel for their studies by supporting costs related to accommodation, food, and transportation. In 2024, this represented an investment of $ 42,000.
Social investment breakdown
Education
Health and nutrition
Socio-economic development
Philanthropic campaigns
Culture and Communication
Donations
Local government support
$ 741,000
$ 663,000
$ 2,519,000
$ 234,000
$ 152,000
$ 1,016,000
$ 4,404,000
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
SERVING OUR COMMUNITIES: LOCAL COMMUNITIES AND SOCIO- ECONOMIC DEVELOPMENT CONTINUED
Social programmes and initiativesAs detailed below, we run a range of short and long-term initiatives in our local communities(4) focused around the core themes of education, digital inclusion, health and nutrition, socio-economic development, and culture and communication.
Education
We are proud to support our local students by providing academic support, entrepreneurial training, and career guidance through a range of initiatives. This includes sponsoring higher education scholarships in technical subjects relevant to mining through our ongoing Golden knowledge ("Quri Yachay"
in Quechua) scholarship programme. The mining training programme is led by Cetemin, a Peruvian educational institution that offers technical programmes related to mining. The young individuals who live in communities surrounding our Inmaculada mine site receive training to enhance their employability in the mining industry and thus improve their quality of life and that
of their families. The technical courses cover a range of topics related to processing plant, mine, laboratory, and infrastructure requirements. Initiated 11 years ago, this programme has so
far provided technical training to over 400 male and female students. We are delighted to say that approximately 95% of these alumni students are now employed by Hochschild. In 2024, a new cohort of 37 students graduated.
We also launched a new programme in Peru, HOC Scholar Community programme ("Comunidad de Becarios HOC"). This aims to enhance education, provide vocational guidance, and offer emotional support to technical and university students in the areas surrounding the Inmaculada, Pallancata,
Arcata, and Selene mine sites. The programme's inauguration event in November 2024 brought together 49 participants from the four sites, providing a platform for sharing experiences, strengthening support networks, and assessing individual progress. We look forward to its continued implementation throughout 2025.
The Traffic Education initiative held in Mara Rosa in October 2024 brought together a special programme to make children aware of the importance of traffic safety. The activity was conducted in a playful way, using puppets and direct interaction with the children, addressing topics such as the responsibilities of pedestrians and drivers. The initiative
consisted of four meetings and involved two local schools and over 1,000 participants.
Digital inclusion
Our Future Connection ("Conexión Futuro") programme aims to increase the employability of those in the rural areas surrounding our mine sites in Peru through the provision of technical skills training. Access to digital centres is provided, free of charge, in communities where there is typically a large student population. This year, 245 community members benefited from digital centres across the localities of Quillcaccasa, Huallhua, Tucsa, Cccalacapcha, Psquicocha, Aniso, Patari, Cascara, Chunchumayo, and Ccayahua.
Equipped with projectors, wireless network systems, and sound systems, these centres have offered digital training and supported students and teachers with Information and Communications Technology since 2020.
Our social programmes and initiatives are implemented in all Company operations.
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
SERVING OUR COMMUNITIES: LOCAL COMMUNITIES AND SOCIO- ECONOMIC DEVELOPMENT CONTINUED
Health and nutrition
Hochschild held two campaigns in 2024 to support the
medical needs of our communities in Brazil. The aim of the Pink October and Blue November campaigns was to raise awareness of breast and prostate cancer prevention in Mara Rosa, offering free tests and reinforcing the importance of self-care and
early detection. During Pink October, 250 breast ultrasound examinations were offered and talks were given by a mastologist to over 90 Hochschild employees; in Blue November, around 130 free prostate cancer-screening blood tests were offered to men in the community. The Mara Rosa Health department actively collaborated in organising and publicising the initiative, ensuring that residents had access to examinations and information. In addition to promoting prevention and self-care, this programme strengthened our partnership with public health authorities.
We continued with the Always Healthy ("Siempre Sanos") programme, which addresses the medical needs of local communities in Peru. The programme offers free medical care, supports new parents with infant nutrition, and educates community members on preventative care. In 2024, the programme developed a partnership with the Regional Health Directorate (DIRESA) of Ayacucho to facilitate the alliance
and collaboration with local health centres in the areas of influence of our mine sites, particularly in the communities of Parinacocha and Paucar del Sara Sara.
Our third campaign was the Fight Against Anaemia
initiative which took place in the direct areas of influence of Inmaculada. With the aim of raising awareness of the disease among mothers and community members, the campaign also covered child nutrition, and diseases that commonly affected the elderly. A training session on nutrition was held in July with over 30 community members participating from the Patari community.
Socio-economic development
Hochschild implemented several initiatives aimed at improving socio-economic development of our neighbouring communities:
Strawberry cultivation: To strengthen family farming in Perito Moreno, the town located closest to the San Jose mine site,
a technical collaboration agreement was signed in 2022 with the National Institute of Agricultural Technology (INTA) and the Provincial Agrarian Council of Santa Cruz. The agreement
advanced the project "Mechanisation of Strawberry Cultivation in Perito Moreno and Pilot Production Experience". Hochschild and INTA selected 10 local farming families to participate
in the project. As part of the agreement, we provided two machines, plastic rolls, 50,000 strawberries seedlings, and drip irrigation systems.
The first harvests began in December 2023, with the production sold as fresh fruit and pulp to make jams. The second harvest occurred between mid-February and March 2024, yielding a total of 6,300 kilograms for the season. In 2024, to further strengthen the initiative, Hochschild, INTA, and the Provincial Agrarian Council expanded the project by adding 10 new producers and families, bringing the total to 21 strawberry-production farms. With this expansion, the
project now covers 15,000m2 under cultivation and more than 80,000 plants in production.
Mining Partner Programme: In May 2024, Hochschild launched its Mining Partner Programme ("Curso del Colaborador Minero"). Thirty residents of Perito Moreno participated, seeking to benefit from professional and career development opportunities within the mining sector. Those who successfully completed the course were offered the opportunity to work at San Jose. The programme lasted five months and consisted
of two months of virtual theoretical training, followed by three months of practical experience at the San Jose mine site.
This comprehensive approach equipped participants with both theoretical knowledge and practical skills, preparing them for roles in the industry. The 2024 edition of the Mining Partner Programme was supported by various institutions and authorities, including the Municipality of Perito Moreno, the Santa Cruz Mining Secretariat, and the Mining Workers' Association of Argentina (AOMA). Twenty-eight participants successfully completed the course and joined the workforce in October 2024.
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
SERVING OUR COMMUNITIES: LOCAL COMMUNITIES AND SOCIO- ECONOMIC DEVELOPMENT CONTINUED
Workshop "Boost your personal brand": In October 2024,
we held the workshop Boost your personal brand ("Potencia tu
Professional courses in Brazil: In partnership with the National Rural Apprenticeship Service of Brazil (SENAR), we developed
Course
Number of participants
Training hours
marca personal") focused on the women of Perito Moreno.
a series of technical and professional courses for residents
First aid 13 16
The workshop was attended by 14 participants and provided valuable tools to enhance job search processes, addressing key topics such as self-awareness, effective CV writing, LinkedIn profile creation, interview preparation, understanding the job market, and new employment trends. Participants developed
of the local community of Mara Rosa. Seeking to diversify the local economy by taking advantage of the local culture and resources, nine courses were held between June and November 2024. Each course was delivered by specialised
instructors, providing participants with the opportunity to learn
Artisanal production of cleaning and hygiene products (such as soaps, detergents and disinfectants)
Artisanal candy production through typical recipes from the region
14 24
14 32
practical skills to strengthen their personal brand, enhancing their competitiveness and opportunities in today's dynamic job market.
new techniques, and apply them to the development of small businesses and the improvement of existing activities. The courses offered, number of participants, and training hours delivered are detailed in the following table:
Rural bakery 10 32
Artisanal brown sugar production 12 32
Homemade production of milk derivatives 12 24
Artisanal chocolate production 13 24
Artisanal processing of Brazilian Savannah and tropical fruits for their use in the production of hygiene products and
local recipes
14 32
Gardening 13 24
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
SERVING OUR COMMUNITIES: LOCAL COMMUNITIES AND SOCIO- ECONOMIC DEVELOPMENT CONTINUED
Culture and Communication
Second Mara Rosa and Amaralina Literature, Culture, and Art Festival ("Festival de Literatura, Cultura e Arte de Mara Rosa e Amaralina" - FLICMA): We carried out the second
FLICMA, which attracted almost 2,500 participants - including students, educators, and local leaders from the towns of Mara Rosa and Amaralina - in a diverse programme of cultural, literary, and educational activities.
The event began with a special opening ceremony for the company's employees, their families, and local leaders.
Certain days of the festival were dedicated to the local school community, offering storytelling sessions led by writers from Goias, performances, book raffles, poetry reciting, and
and thematic panels on education. The panels covered subjects such as the challenges of ADHD in learning and the importance of emotional well-being for the educational process. The festival also featured sustainable initiatives, including the distribution of seed paper - a biodegradable material embedded with seeds - which aimed to promote environmental awareness.
The event has established itself as an important event for promoting literature, culture, and education in the region, strengthening ties between the community and the company, and leaving a legacy of learning for all those involved.
Supporting local governmentsWe have agreements signed with seven strategic local municipalities in Peru and one in Argentina, with the objective of contributing to sustainable development from a multi-stakeholder and coordinated perspective. In Argentina, the agreement is mainly focused on scholarships and supporting local education. In Peru, these agreements include:
Investing in infrastructure projects such as schools, libraries, and sports fields that were selected together with the municipal authorities;
Financing of technical assessments to improve and expand essential services such as water and irrigation systems;
Supporting through capacity building and community activities that benefit the population, including anniversaries, championships, and recreational activities;
Donating machinery, especially useful during emergencies due to rain, to support the work of the municipalities;
Developing a support fund for climate-related emergencies; and
Strengthening municipal management to improve budget execution capacity.
In 2024, a total investment of $1.0 million was made through the implementation of these agreements and initiatives supporting local governments in Peru and Argentina.
In Argentina, $4.1 million was also granted to the province of Santa Cruz through a publicly managed trust fund "Proyecto UniRSE", by the Provincial Government of Santa Cruz, which finances diverse programmes and projects.
Additionally, $2.4 million was paid through CFEM, the federal mining royalty in Brazil allocated to municipalities and states for investment in socio-economic development.
Creating wider economic value also involves making tax payments to state and local authorities. In 2024 alone, these amounted to $8.3 million in Peru and $0.1 million in Argentina.
ABOUT THIS REPORT
OUR APPROACH TO
SERVING OUR
PROTECTING THE
ENSURING HEALTH
EMPOWERING
ENSURING WE ARE A
APPENDIX
SUSTAINABILITY
COMMUNITIES
ENVIRONMENT
AND SAFETY
OUR PEOPLE
RESPONSIBLE BUSINESS
SERVING OUR COMMUNITIES: LOCAL COMMUNITIES AND SOCIO- ECONOMIC DEVELOPMENT CONTINUED
Local employmentOur 2030 ambition of 60% of local(5) workforce, including employees and contractors alike, highlights our commitment to generating employment opportunities for residents living near our mine sites. In 2024, local workers made up 59.3% of our workforce in Peru and Argentina, representing a slight improvement from our 2023 result of 59.1%. In Peru, 58% of our workforce is local and in Argentina this figure is 62%.
This includes both direct employees and contracted workers. Starting in 2025, we will include Brazil into the calculation of the total local workforce. We estimate that in 2024, 85% of our workforce in Brazil were local.
This effort to employ locally is implemented through our programmes and initiatives. It forms part of our broader aim to drive socio-economic development in line with our yearly action plans and 2030 ambition.
Procurement of local goods and servicesAlongside creating local employment opportunities, we also look for ways to support local businesses. This is a core activity at Hochschild and one that enables business to generate longterm, tangible socio-economic value for communities.
This year, local(6) procurement expenditure made up 26.1% of our total procurement expenditure in Peru and Argentina, exceeding our 2030 ambition of 20% and improving from the 17.4% result of 2023. Local sources account for 15% of our procurement expenditure in Peru and 58% in Argentina.
Starting in 2025, we will include Brazil into local procurement results. We estimate that, in 2024, this amounted to 40% of total procurement expenditure.
These efforts are supported through the socio-economic development programmes and initiatives stated above, as well as our yearly action plans towards the 2030 ambition.
Building strong relationships with our neighbours is essential to our operations.
It is gratifying to see our efforts delivering tangible benefits through our varied programmes and initiatives.
Jose Frias
Vice President, Legal and Public Affairs
Local workforce refers to people working at the mines or businesses within regions in which Hochschild operates (Peru: Apurimac, Arequipa, Ayacucho and Cajamarca; Argentina: Santa Cruz; and Brazil: Goias).
Local procurement refers to businesses operating within the regions in which Hochschild operates (Peru: Apurimac, Arequipa, Ayacucho and Cajamarca; Argentina: Santa Cruz; and Brazil: Goias) or businesses operated by local communities but registered outside of the regions listed above.
ABOUT THIS REPORT
OUR APPROACH TO SUSTAINABILITY
SERVING OUR COMMUNITIES
PROTECTING THE ENVIRONMENT
ENSURING HEALTH AND SAFETY
EMPOWERING OUR PEOPLE
ENSURING WE ARE A
RESPONSIBLE BUSINESS
APPENDIX
Protecting the environment
2024 Highlights(7)
5.58
2023 ECO SCORE
(VS TARGET OF 5.5 OUT OF 6)
2023: 5.76
Alignment to UN SDGs
66%
REDUCTION IN POTABLE WATER CONSUMPTION COMPARED WITH 2015
2023: 60%
Our approach to protecting the environmentHochschild is committed to producing metals with the lowest possible environmental footprint. To achieve this, Hochschild is dedicated to protecting the environment through applying best-in-class environmental management practices. Our Environmental Policy addresses our most material environmental impacts and guides our everyday activities. In alignment
with our policy, we are continually seeking ways to strengthen our environmental culture and reduce our footprint.
Progress against our 2030 ambitions1
We do this through the following initiatives:
Environmental Management System (EMS);
Our environmental commitments;
ECO Score;
Investigating and learning from incidents;
Environmental Culture Transformation;
Programme (ECTP); and
Environmental Ambassadors.
We monitor our environmental impact through the following material topics: Climate change, water management, management
of waste and tailings, and biodiversity and ecosystem services.
2021
Baseline 2022 2023 2024
2030
Ambition
Environmental-related KPIs exclude Brazil due to Mara Rosa construction and commissioning activities. The Mara Rosa mine site will be included from 2025, which will be the first full year of mining operations.
GHG Scope 1 and 2 emissions reduction (%) | 0% | -0.7% | -5.6%2 | +48.6%3,4 | -30% |
Fresh water utilised per ore processed (m3/ tonnes) | 0.24 | 0.27 | 0.27 | 0.31 | 0.22 |
Recycled waste (%) | 72.5% | 68.8% | 63.3% | 57.3% | 80% |
Domestic waste landfilled (kg/person/day) | 1.001 | 1.052 | 0.931 | 0.928 | 0.90 |
Potable water consumption (l/person/day) | 193 | 171 | 163 | 138 | 174 |
KPIs (except GHG scope 1+2 emissions reduction (%) in 2024) exclude Brazil due to Mara Rosa construction and commissioning activities. The Mara Rosa mine site will be included from 2025, which will be the first full year of mining operations.
The 2023 results of GHG emissions reduction restates the value disclosed in the 2023 Annual Report (-5.1%) following the independent assurance of the carbon footprint in 2024.
See "Climate Change" section below for an explanation of the 2024 increase in GHG scope 1 and 2 emissions.
The 2024 result restates the value disclosed in the 2024 Annual Report after its independent verification in May 2025.
ABOUT THIS REPORT | OUR APPROACH TO | SERVING OUR | PROTECTING THE | ENSURING HEALTH | EMPOWERING | ENSURING WE ARE A | APPENDIX |
SUSTAINABILITY | COMMUNITIES | ENVIRONMENT | AND SAFETY | OUR PEOPLE | RESPONSIBLE BUSINESS |
PROTECTING THE ENVIRONMENT CONTINUED
Our environmental management Our environmental commitments To guide our actions on how we manage and protect the environment, our employees and contractors adhere to six fundamental Environmental Commitments:1.
We will act and take decisions considering the impact on wildlife.
2.
We will act and take decisions considering the impact on water quality.
3.
We will only discharge authorised effluents.
4.
We will receive authorisation from Mine Management before any construction.
5.
We will report any environmental incident to Mine Management.
6.
We will report our environmental performance transparently.
Environmental Management System (EMS)Our EMS ensures that we have good environmental practices in place and that we comply with all legal requirements, in alignment with ISO 14001:2015 and compatibility with DNV, and applies to all mine sites.
As part of the development of the EMS, several processes were strengthened in our mines during 2024; these included monitoring compliance with legal commitments and other obligations assumed by the Company, environmental risk assessment, leadership, operational control, communication, and training. As an example of training, environmental personnel in the mine sites received training on ISO 14001 standards and internal auditing.
We will continue to develop our EMS processes to further reinforce our proactive approach towards environmental management. In 2025, this will include focusing on document management, change management, and the measurement and monitoring of results.
Mitigating our environmental footprint drives our approach to business and so we are proud of our ECO Score performance in 2024.
Eduardo Noriega
Chief Financial Officer
ECO ScoreThe ECO score is an in-house environmental indicator that allows Hochschild to quantify the business' environmental performance within a single metric, expressing environmental management in a way that is easily understood. The score includes indicators such as potable water consumption and domestic waste generation and acts as a company-wide programme aimed at reducing our footprint, embedding an environmentally-conscious culture across all mine sites. It was implemented in 2015 and, since then, has served as a powerful and innovative tool for managing environmental issues, holding employees accountable, and generating value for
our stakeholders. In 2024, we reviewed our ambition level and received Board approval to increase the most stretching ECO Score target from 5.25 to 5.5 (out of 6). We are pleased to report that we surpassed this level with a final 2024 score of 5.58, although this result reflects a reduction from our 2023 score
of 5.76. This decrease was caused by logistical issues faced by our waste management operator at San Jose, which have been resolved as at the date of this report, and minor findings from the Peruvian environmental regulator with respect to the former Arcata mine site. Since the tool's inception in 2015, we have met our target every year and have improved our environmental performance score by 68%.
Since 2021, the ECO Scores from all mine sites have been independently assured by Ernst & Young ('EY') on an annual basis in line with the International Standard on Related Services (ISRS) 4400.
In 2024, a cloud-based interactive platform was developed together with our Technology department to automate data collection and the calculation of the monthly ECO Score, with the objective of enhancing the accuracy and efficiency of environmental performance monitoring across all mine sites, supporting data-driven sustainability strategies. The platform also enables real-time tracking and analysis of environmental performance across operations. Plans are underway to develop a similar platform for the collection and calculation of all ESG KPIs in 2025.
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Hochschild Mining plc published this content on June 11, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 11, 2025 at 15:36 UTC.