TSX-listed Endeavour Mining has augmented its short- and long-term compensation plans to include clearly measurable environment, social and governance (ESG) targets.

For this year, Endeavour has expanded its group targets, which affects annual employee bonuses, to include 20% ESG-related short-term targets. Alongside a safety target of a lost-time injury frequency rate that 10% below the industry benchmark, it also includes a diversity target of a 25% increase in female employee representation to 10% in 2020.

The long-term incentive awards for executives have also been augmented to include a 12.5% ESG weighting for the successful external assurance on all ten umbrella principles and 51 principles of the Responsible Gold Mining Principles (RGMPs).

Endeavour reported on this on May 27, along with the publication of an enhanced 2019 Sustainability Report, which details progress towards the company’s implementation of the World Gold Council’s (WGC's) ESG reporting framework − the  RGMP.

The report has augmented climate change disclosure, including Scope 3 carbon dioxide emissions, and the company’s completion of a CDP Climate Change questionnaire.

CDP is an organisation based in the UK that runs a global disclosure system for investors, companies, cities and regions to manage their environmental impacts.

Additionally, Endeavour says it will begin reporting in line with the Task Force on Climate-related Financial Disclosures.

The company has set itself annual targets for key ESG criteria, including executive compensation targets if they meet safety goals and increased female workforce representation.

Endeavour president and CEO Sébastien de Montessus says since he joined the company in 2016, he has seen the company improve its performance, accountability and transparency in the way it approaches ESG matters.

“As the largest gold miner in West Africa, and a trusted government partner, our operations have the potential to provide a significant positive impact on the economies of our local communities and host countries.

“We are conscious of this responsibility and are proud to support over 1 000 local businesses and to source 95% of our site workforce nationally, with a target of continuing the training and development of local talent into management roles.”

The WGC’s RGMPs, launched in September last year, provide an ESG reporting framework that consists of ten umbrella principles and 51 detailed principles covering key ESG themes.

Member companies of the council have three years from the launch date to comply with the RGMPs and will be required to obtain annual external assurance on their performance and conformance.

As part of its implementation strategy of this reporting framework, Endeavour conducted a gap analysis last year to identify those policies, standards and activities that already conform to the RGMPs, and those areas that will require additional work before being able to reach conformance.

This process has resulted in the completion of the company’s first RGMP external assurance on Principle 1.7, which relates to accountabilities and reporting. The company is targeting external assurance on several other principles in the coming year.

ESG IN 2019

In addition to the company’s update on the implementation of the RGMPs, the 2019 Sustainability Report details Endeavour’s activities and performance across its five ESG pillars in 2019.

The main highlights include a strong safety record with reductions in the company’s all-injury frequency rate and lost-time injury frequency rate of 30% and 44%, respectively, compared with 2018.

Endeavour last year distributed $627-million in economic value to host countries, including $100-million in taxes and royalties, representing 71% of revenue.

Additionally, Endeavour’s in-country procurement represented 67% of group spend, which has supported 1 144 local businesses where the company operates in the West African region.

The company further managed to incur zero significant environmental incidents in both 2019 and 2018, and reduced its greenhouse-gas emission intensity year-on-year by 22%.

Endeavour reported that more West African locals were appointed as general managers in 2019, than in 2018, while the representation of women in technical or supervisory roles increased to 11%, from 5% in 2018.

A high number of locals remain employed at Endeavour’s operations, with 95% of site workforces being nationals, remaining at similar levels to 2018.