Stakeholder Engagement

Why they are important

Our shareholders are investors and owners of the business. We seek to establish and maintain constructive relations with all shareholders through open dialogue and an ongoing programme of engagement.

Engagement activities

We interact with our shareholders through various methods throughout the year with the participation of the CEO, CFO, members of the Board, the Company Secretary and the Head of Investor Relations.

In 2021, we specifically engaged with investors on executive Remuneration Policy, the 2020 Remuneration Report, and through the Capital Markets presentation on the Group’s rare earths business, Aclara Resources.

Why they are important

Our people are key to the success of our business. We seek to attract, retain and develop our people through competitive remuneration, a positive and safe working environment and developmental opportunities.

Engagement activities

Employee engagement generally takes many forms and includes the use of surveys, presentations and Q&A sessions with management. Our 2021 programme included:

• workshops hosted by senior management and external specialists facilitating discussions themed around the Group’s cultural attributes;
• sessions led by the Country General Managers with managers of the mining units; and
• regular meetings with labour unions to negotiate collective agreements and discuss matters of interest.

Why they are important

We recognise our social commitments to (a) produce the smallest environmental footprint possible and (b) understand the needs and expectations of our local communities. Through close collaboration we implement social investment programmes in our areas of focus.

Engagement activities

We adopt a varied approach to engaging with local communities including:

• direct interaction with local mayors and residents;
• our Permanent Information Office (which re-opened for in-person service in 2021) and town hall meetings; community surveys;
• collaborative activities, for example environmental monitoring; and
• the implementation of local purchasing and hiring protocols.

Why they are important

It is our aim to maintain a constructive relationship and open dialogue with the various governmental authorities we interact with in each of the countries where we operate.

Engagement activities

The Vice President of Corporate Affairs oversees regular interaction with relevant authorities and regulators, both at a Company level but also through the National Mining Association. Various teams also regularly interact with public officials and regulators as part of their
operational functions.

The equivalent role in our Argentinian joint venture is undertaken by the General Manager and General Counsel. We also play an active role through the National Mining Association.

In 2021, management engaged directly with members of the Peruvian Government in response to actions by the Prime Minister in the Coracora district For further details, please refer to the commentary on Political, Legal and Regulatory risks in the Risk Management report.

Why they are important

As a key influence on how we operate our business, we seek a relationship of mutual benefit while requiring high standards of conduct.

Engagement activities

The General Managers of our Peruvian and Argentinian operations maintain ongoing dialogue with suppliers to the mine sites. Other suppliers are managed by the relevant functional department such as IT, Group Finance, etc.

Why they are important

Due to the nature of what we produce, Hochschild has relatively few customers. As a result, successful relations with our customers are of critical importance to our business.

Engagement activities

Our sales and logistics teams oversee a relationship of co-operation and constant dialogue.

In addition to usual relationship management, customer engagement during 2021 took place virtually including during London Metals Exchange week.