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Case Study: Anglo American

Integrating safety and sustainable development into operational reviews to improve business performance

Background

Anglo American asked ERM to:

  1. help define key value driver trees for Safety and Sustainable Development (S&SD) in order to integrate S&SD into the existing Asset Optimisation program
  2. support the S&SD Integration team on conducting an Operational Review using the value driver trees.

Key value driver trees (see example below) were defined for the following S&SD value drivers:

  • Energy (cost and security)
  • Greenhouse Gas Emissions (cost)
  • Water (cost and availability)
  • Waste and land stewardship (cost and closure liability)
  • Safety and health (cost and production downtime)
  • Environmental impacts including climate change (cost and production downtime)

 

Our Approach

ERM facilitated a workshop with Safety and Sustainable Development (S&SD) representatives to select the value drivers that would have the largest impact on operating profit. Value driver trees were then developed for each of the areas, as well as a series of self-assessment questions to determine the maturity of a site’s management approach to each key value driver.   ERM then provided assistance to the S&SD Integration team during an Operational Review in order to pilot the value driver trees.

Benefits and Value

S&SD was integrated into the existing Operational Review process. This will reduce the costs and improve business results as teams will be co-staffed with S&SD, Mining, Processing and Engineering experts who work together to determine the value at stake rather than separate teams working in silos. 

During the pilot Operational Review, the S&SD value drivers identified operating profit could be enhanced by up to 10% by reducing double handling of waste and absenteeism. In addition the future carbon liability of circa 5% of operating profit could be reduced via a number of measures.