Governance, assurance and accountability
Accountability for safety performance rests with management and follows reporting lines to the highest levels of the organisation. We have integrated the identification, evaluation and mitigation of all risks, including safety, into our enterprise risk management framework and approach so that it further reinforces the fact that safety management is a normal part of our managers’ and executives’ day-to-day responsibilities. Safety risks are included in risk registers compiled and regularly updated at Group, commodity business and operational levels.
Our formal management structure documents responsibility for safety from the Xstrata Board through to each individual employee and contractor. Safety performance also forms a significant component of variable remuneration, such as bonuses, for executives, senior and operational managers, supervisors and mineworkers and is a key consideration in the career development and progression of employees (see Strategy and Governance).
Xstrata’s directors hold governance responsibility for safety performance through Xstrata’s Board Health, Safety, Environment and Community (HSEC) Committee, chaired by independent non-executive director Ian Strachan. Both the Group Executive Committee and Board HSEC Committee receive monthly management reports that describe all actual and high potential incidents related to safety performance. In the unfortunate event that a fatality occurs, the chief executive of the commodity business responsible makes a detailed presentation of their findings to the Xstrata Executive Committee and to the Board HSEC Committee.
In addition to our site-level third party Sustainable Development (SD) Standards audits (see for further detail), we also engage specialists to conduct in-depth audits targeting specific SD risks at our sites and projects, for example operational integrity and major safety hazards such as vertical openings, shafts and windings, energy isolation and explosives management.
As part of their management plans, our operations conduct numerous other audits and reviews to provide assurance that their safety risks are being properly identified and managed and that existing safety management systems and processes are adhered to and are effective. This includes legislative safety compliance audits, major hazard audits, specialist audits (e.g. electrical safety), inspections, employee safety meetings, external verifications (e.g. to OHSAS 18001), and performance reporting and reviews. Site management plans are reviewed by each commodity business at least annually.