Xstrata 2010 Annual Report Basic Materials UK 5 Maintenance Background: o na l g m a ti sfor Tran rowth Xstrata is a major global diversified mining group and is the world’s largest producer of export thermal coal, the largest producer of ferrochrome, one of the top five producers of coking or metallurgical coal, the fourth largest global copper producer, the fifth largest global nickel producer and one of the world’s largest miners and producers of zinc. The Company differentiates itself from its peers through operating a decentralised management model which directly benefits the Group’s performance by creating a strong sense of local ownership at the operational level, and their operations and projects span 20 countries. Their aim is to grow and manage a diversified portfolio of metals and mining businesses with the single aim of delivering industry-leading returns for shareholders. The Xstrata 2010 Annual Report is the second year that they have combined information about non-financial and financial policies and performance to provide a comprehensive overview of the Group’s business and activities. A detailed Sustainability Report is also produced which provides additional discussion on policies, activities and performance. O pe na l ratio ce excellen a Sust value inable Annual Report 2010 content review: On the inside front cover of the Report, Xstrata presents a clear statement of the mission and brief company overview. At this point, the reader is informed that sustainable development information has been integrated throughout the Report, reflecting the Company’s ongoing efforts to embed sustainable development policy and principles into decision making and the way they operate at every level of the organisation. There are signposts provided to key information about sustainable development. The reader is also provided with a sense of management belief and buy-in for sustainability issues as the Chairman discusses non-financial issues and the link between sustainability and Group strategy. In taking an integrated approach to reporting, Xstrata has used the term ‘operational excellence’ as a term to cover issues such as continuous improvements in cost reductions and productivity levels as well as operating in line with leading practice social and environmental standards. The Group strategy section clearly shows the relationship between Group strategy, strategic priorities, performance and KPIs for both financial and non-financial issues. The management and accountability of the Group’s approach to sustainable development is discussed in the Group performance section. Reference is made to the sustainable development framework which each of the business divisions implement independently and this is what is then reviewed by the Board level health, safety, environment and community committee. Summary: Xstrata have integrated their sustainability discussion throughout the Report, reporting financial and non-financial aspects of the business alongside each other. This gives the reader the sense that the Company are really attempting to embed sustainability into the day-to-day business strategy and operations, even though they operate a devolved management structure. The Board committee is also given a high profile in the Report to demonstrate top level governance of the sustainability framework. 26 The integrated journey
