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 and seek a better understanding of their expectations through various channels during the year with the participation of the CEO, CFO, members of the Board, the Company Secretary and the Head of Investor Relations. These channels take different forms and include participation at sector-specific conferences, discussions with proxy agencies as well as direct meetings with significant shareholders.

During 2023, our regular calendar was supplemented by a Capital Markets event which provided an opportunity for the new management team to give an update on the Company’s latest developments and to discuss Hochschild’s growth strategy, and an open engagement with our largest shareholders during the third quarter, led by the Senior Independent Director and Chair of the Sustainability Committee, on executive remuneration and governance matters.

Why they are important

We acknowledge that our success relies greatly on our people. We seek to attract, retain and develop our people through competitive remuneration, a positive and safe working environment and equal opportunities for all.

Engagement activities

Employee engagement generally takes many forms and includes the use of surveys, presentations and Q&A sessions with management. Our 2023 programme included:

• Group-wide meetings with the CEO on the Company’s financial
  
  

• The continued use of the Brilla HOC platform to acknowledge the achievements of our people;

• A Strategic Alignment workshop led by the CEO, Eduardo Landin, with the senior managers across the operations in Peru, Argentina and Brazil;

• The continuation of the online forums chaired by Tracey Kerr, the Non-Executive Director designated for Workforce Engagement; 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 PIOs (which re-opened for in‑person service in 2021) and town hall meetings;
• Community surveys;
• Participation in formal roundtables with the participation of regional authorities;
• Collaborative activities, for example environmental monitoring; and
• 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 Brazil, the General Manager and General Counsel lead engagement activities with governmental authorities.

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, Argentinian and Brazilian 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. During the year, the Company sought to establish new commercial relationships to mitigate the risk of a concentrated customer base and its vulnerability to geo-political developments.

In addition to usual relationship management, Hochschild attended CESCO Week in Chile for customer engagement.