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Case study: How Fortuna promotes employee development

Fortuna Silver Mines, Inc. is engaged in the exploration, exploitation, extraction and production of precious and base metals in Latin America, seeking to become a leading producer of precious metals with a reputation for operational excellence, safety, excellence in sustainable development, organic growth and acquisitions. Fortuna annually evaluates employees’ performance to establish individual development plans and training for areas of improvement, as the achievement of its strategic objectives is contingent upon Fortuna’s ability to successfully retain, motivate and train high-quality people.

This case study is based on the 2018 Sustainability Report by Fortuna published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

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Fortuna’s people are its most important asset and, accordingly, Fortuna considers it highly important to maintain and promote the development of its employees, strengthening their technical and personal skills.  Tweet This! In order to promote employee development Fortuna took action to:

  • provide training activities for workers
  • carry out performance evaluations
  • strengthen leadership skills

What are the material issues the company has identified?

In its 2018 Sustainability Report Fortuna identified a range of material issues, such as water management, occupational health and safety, environmental protection and pollution prevention, organisational values and governance, working conditions and social protection. Among these, promoting employee development stands out as a key material issue for Fortuna.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Fortuna engages with:

Stakeholder Group                Method of engagement
Employees ·      Meetings

·      Independent and collective meetings

·      Mailing

·      Work contract

Social Organisations & Communities

 

·      Independent and collective meetings

·      Guided visits

·      Radio

·      Social Networks

Shareholders ·      Reports

·      Various meetings (telephone,

·      mail, meetings)

Clients ·      Mailing

·      Phone

·      Meetings

Contractors ·      Independent and collective meetings

·      Email, phone

Suppliers ·      Email, phone

·      Independent and collective meetings

Government ·      Mailing

·      Telephone

·      Meetings

·      Formal letters

·      Audits

·      Field visits

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Fortuna engaged with its stakeholders through unstructured field interviews.

What actions were taken by Fortuna to promote employee development?

In its 2018 Sustainability Report Fortuna reports that it took the following actions for promoting employee development:

  • Providing training activities for workers
  • Fortuna has reached milestones in training activities for workers in its operations, which in 2018 included the following:
    • In 2017, Caylloma Mine won the national contest Fondo Empleo, a programme promoted by the government that allows access to the labour force without technical training to specialised mining courses at prestigious institutions, including mining, geology, mineral processing, maintenance. The programme started in 2018, directly benefiting 180 workers.
    • At the San Jose Mine, the number of hours of training completed in 2018 totalled 15,667 hours, exceeding the 9,312 hours recorded in 2017 and 7,514 hours recorded in 2016. Also noteworthy was the significant increase in the average number of hours of training completed by female workers in the operation, which increased from an average of 31.85 hours in 2017 to an average of 56.06 hours in 2018. Additionally, the average number of hours of training completed by workers increased from an average of 12.67 hours in 2017 to an average of 46 hours in 2018.
  • Carrying out performance evaluations
  • In 2018, performance evaluations were carried out at both Fortuna mines. Approximately 90 % of the employees at the Caylloma Mine and 100 % of the employees at the San Jose Mine were evaluated. Managers were evaluated through a 360-degree appraisal process, which gathered feedback from an employee’s subordinates, colleagues, and supervisor(s), as well as a self-evaluation by the employee. Other positions went through a review process with their supervisor. The results of the performance evaluations help define training plans for the areas, recognise the progress made, and establish future paths of action in order to consolidate and improve employees’ skills.
  • Strengthening leadership skills
  • At the Caylloma Mine, Fortuna implemented the “Safe Leader” programme, aimed at training management, supervisors, and superintendents with a view to strengthening their leadership skills as well as promoting optimal physical, working and emotional conditions for the effective and safe development of Fortuna’s Thirty employees completed this programme. At the San Jose Mine, 10 department heads and superintendents completed coaching sessions and soft skills E-Learning training, as part of their individual development plan. Field Supervisor leadership training was completed by 73 workers.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 404-1 Average hours of training per year per employee

2) Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs

3) Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews

 

Disclosure 404-1 Average hours of training per year per employee corresponds to:

Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs corresponds to:

  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Employee training and education

Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews corresponds to:

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified, IEMA & CIM recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified, IEMA & CIM recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

Most importantly, you will gain the knowledge to use the GRI Standards, project manage your own first-class sustainability report and:

  • Identify your most important impacts on the Environment, Economy and Society
  • Begin taking solid, focused, all-round sustainability action ASAP

 

References:

1) This case study is based on published information by Fortuna, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

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