our approach to sustainable development

In 1983, the United Nations appointed an international commission to propose strategies for sustainable development, chaired by Norwegian Prime Minister Gro Harlem Brundtland. Its report, 'Our Common Future', published in 1987 and widely known as 'The Brundtland Report' describes sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs". To achieve sustainable development, we must address environmental, social and economic factors with equal rigour.

At Xstrata we are committed to the highest standards of health, safety and environmental performance, community co-operation and to the principles of sustainable development. As a metals and mining group, Xstrata's activities involve the extraction and ultimate depletion of natural resources, to provide essential basic materials for the social and economic development of societies globally. Our activities contribute to the sustainable development of societies by using resources efficiently and by making a lasting contribution to the social and economic capital available for future generations.

The Xstrata Board establishes the strategic direction of the Group, which the Executive Management Team then implements. Commodity Businesses are given a high degree of autonomy to pursue their business objectives and they operate within the framework of the Group Business Principles and Group Policies governing, inter alia:

• risk management;
• health, safety, environment and community (HSEC); and
• corporate social involvement.

The Board has set the HSEC Policy for application across the whole Group and expects the Commodity Businesses and supporting functions to implement the HSEC Policy and HSEC Management Standards within the confines of what they consider reasonable and operationally viable.

Xstrata's HSEC Policy and HSEC Standards are aligned to the International Council on Mining and Metals' (ICMM) principles of sustainable development and to international environmental and occupational health and safety standards. In Australia, Xstrata's businesses have adopted the Minerals Council of Australia's (MCA) programme 'Enduring Value' – the Australian Minerals Industry Framework for Sustainable Development. This programme gives detailed, practical advice which assists operations implement the ICMM principles which, in turn, assists them in meeting Xstrata's requirements.

For Xstrata, sustainability is about caring for the environment in all stages of mining and metal production; efficient and responsible use of resources, including energy, water and land; keeping our employees safe and healthy; improving services and facilities in communities where our employees and their families live; and providing our shareholders with a superior return on their investment in our business over the long term.

xstrata's stakeholders

Xstrata engages with a broad range of stakeholders, from all levels of government to analysts, industry groups, research and educational organisations, local communities and our employees.