Sustainability website / Sustainable Development / 1: Leadership, Strategy and Accountability

1: Leadership, Accountability and Ethics

Intent

Xstrata management, employees and contractors demonstrate visible sustainable development (SD) leadership, address and pursue its performance with the same priority as other key areas of business performance and understand and accept their SD accountabilities.

Xstrata management develops and implements well-founded and effective SD strategies at the different levels of the organisation that reflect Xstrata's SD ambitions and commitments.

Management addresses key SD performance issues and external factors and contributes positively to the goal of SD through an effective and integrated strategy.

Requirements and Expectations

1.1

Management, employees and contractors demonstrate visible, proactive leadership and commitment to meeting Xstrata's SD ambitions and commitments, as expressed in Xstrata's Business Principles and Sustainable Development Policy.

1.2

Xstrata management creates and maintains a management culture that actively supports the achievement of Xstrata's SD objectives and commitments and the effective implementation of its SD strategies. Management makes clear the values, principles and authority to act that each and every Xstrata employee or contractor is expected to understand and respect. Demonstrated and measurable SD leadership and management performance is a prerequisite for promotion.

1.3

Xstrata management develops and implements well-founded and effective SD strategies at different levels of the organisation that reflect Xstrata's SD objectives, values and commitments, address key SD performance issues and external factors and contribute positively to SD goals. Long-term SD strategies are aligned to Xstrata's Business Principles, Policies and Sustainable Development Standards and are developed and implemented at Group, commodity business, divisional, site and project levels. Specifically, SD strategies:

• Consider and address current and anticipated SD risks, in particular:
• business opportunities
• issues and trends at the global, regional and local levels
• discrete and aggregated risks and impacts of our activities, operations and projects across the life cycle
• Address opportunities to have a positive impact on the quality of life, well-being and the SD of the communities in which we operate
• Reflect consultation with relevant internal and external stakeholders
• Are documented and communicated to all appropriate levels within the commodity businesses; and
• Are reviewed for continued effectiveness and updated annually.

1.4

Management understands and accepts its responsibilities and accountabilities, which include:

• Understanding and meeting the intent and expectations of Xstrata's Group Business Principles, Policies, Sustainable Development Standards and applicable regulations
• Identifying, analysing, evaluating and treating SD risks and opportunities at the commodity business, division, site and project level
• The SD performance of each manager's area of responsibility
• The development, implementation and continuous improvement of SD systems within each manager's area of responsibility.

1.5

The specific and measurable SD goals, actions and targets for each executive, manager and employee are included in performance plans and form an essential part of individual performance appraisals.

1.6

For all managers, employees and contractors the following arrangements are clearly defined, documented and communicated:

• Roles, responsibilities and accountabilities are allocated for specific SD risks and controls
• Specific and measurable SD performance indicators
• SD organisational structures and lines of reporting.