What are the material issues the company has identified? 

In its 2020 Sustainability Report Fortuna identified a range of material issues, such as waste and hazardous materials management, business ethics and transparency, climate change and greenhouse gas emissions, workforce health and safety. Among these, promoting sustainability among its contractors and suppliers 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	·      Individual and group meetings ·      Email ·      Employment contract
Communities	·      Independent and group meetings ·      Guided visits ·      Radio programmes broadcast by Fortuna Silver Mines ·      Social media networks
Investors	·      Reports ·      Meetings, telephone, and video conference
Customers	·      Meetings, telephone, email
Contractors	·      Individual and group meetings, telephone, email
Suppliers	·      Individual and group meetings, telephone, email
Government	·      Email, telephone, meetings, formal letters, audits, field inspections

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Fortuna engaged with its stakeholders through on-line surveys, focus groups and interviews. Stakeholders engaged included employees, contractors, customers, shareholders and investors, and communities.

What actions were taken by Fortuna to promote sustainability among its contractors and suppliers?

In its 2020 Sustainability Report Fortuna reports that it took the following actions for promoting sustainability among its contractors and suppliers:

• Implementing a Supplier Code of Business Ethics and Conduct
• Fortuna’s Supplier Code of Business Ethics and Conduct, which is approved by its Board, sets out its expectations for the behaviour of suppliers and other parties with whom Fortuna maintains business relationships. Fortuna provides a copy of the Supplier Code of Business Ethics and Conduct to all suppliers, who must sign an acknowledgement that they have read it and will comply with its provisions. The Code also requires contractors and suppliers to comply with or exceed local legislation, as well as Fortuna’s corporate policies and guidelines:
  • Code of Business Ethics and Conduct
  • Anti-Corruption Policy
  • Health and Safety Policy
  • Human Rights Policy
  • Environmental Policy
• Complaints about any non-compliance with the Code may be submitted through Fortuna’s whistleblower channel.

• Assessing contractors and suppliers
• Fortuna’s subsidiary Procurement departments work with HSSE (Health, Safety, Security and Environment) departments to evaluate the performance of its contractors and verify compliance with Fortuna’s In the event of non-compliance, the local Procurement department is notified and will evaluate whether to suspend the business relationship. Fortuna’s Procurement departments are trained in all aspects of its requirements for contractors. Fortuna’s annual supplier audit is an internal assessment process performed by an external third party. It focuses primarily on Fortuna’s critical Type A contractors. Every year, Fortuna recognises the contractor with the highest assessment under the audit criteria. Fortuna’s subsidiaries are responsible for implementing its corporate expectations. For example, in 2020, Bateas established a Procurement Committee and introduced a supplier certification process, in which an external third-party assesses potential suppliers on criteria including a range of sustainability issues. Potential suppliers passing the evaluation receive a one-year certification qualifying them as a supplier. In 2020, all current suppliers of key services were assessed, and from 2021 the certification process is a requirement for new suppliers. In addition to the certification process, the Procurement Committee may set contractual expectations for suppliers on additional criteria, such as certification to international standards or local employment.

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

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 414-1 New suppliers that were screened using social criteria

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5: Gender Equality
• Targets: 5.2
• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.8
• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.1

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

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 following link:

https://fortunasilver.com/site/assets/files/7760/2020-sustainability-report-12apr21-fvl.pdf

Note to Fortuna: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2019 Sustainability Report Fortuna identified a range of material issues, such as financial performance and creation of economic value, occupational health and safety management, human and organisational development, environmental management. Among these, combatting corruption 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 group meetings ·      E-mail ·      Employment contract
Communities	·      Independent and group meetings ·      Guided visits ·      Radio ·      Social media networks
Shareholders and Investors	·      Reports ·      Various meetings (by telephone, ·      E-mail, board meetings)
Customers	·      E-mail ·      Telephone ·      Meetings
Contractors	·      Independent and group meetings ·      E-mail or telephone
Suppliers	·      E-mail, telephone ·      Independent and group meetings
Government	·      E-mail ·      Telephone ·      Meetings ·      Formal letters ·      Audits ·      Field inspections

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Fortuna engaged with its stakeholders through on-line surveys, focus groups and interviews.

What actions were taken by Fortuna to combat corruption?

In its 2019 Sustainability Report Fortuna reports that it took the following actions for combatting corruption:

• Implementing a Code of Ethics
• Fortuna’s Code of Ethics sets out principals governing behaviour regarding 11 types of conduct, some of which are directly related to preventing acts of corruption, such as bribes, gifts, invitations and events involving a conflict of interest. All employees receive a copy of this code and are required to sign a certificate to acknowledge they have read it and will comply with the procedures and restrictions set out in the Code of Ethics. In 2019, Fortuna sought to strengthen knowledge of and compliance with the Code of Ethics by delivering a virtual course on its e-learning platform. Following completion of the course, employees were evaluated and received a certificate of compliance if they passed the test. The Code of Ethics also establishes how Fortuna’s reporting system functions. Under the system, any person who has knowledge of or is aware of a potential or suspected violation of the Code of Ethics is under an obligation to report it. Also, a whistle-blower system was designed to receive questions about ethical issues. Fortuna addresses breaches of the Code with strict confidentiality. The Code promotes the reporting of retaliation events against those who have submitted a complaint or who participate in an investigation through the above-mentioned channels. Fortuna does not tolerate any type of retaliation associated with complaints. The person responsible for overseeing the Code of Ethics is the Chief Compliance Officer (CCO). When a complaint is submitted, the CCO notifies the Chair of the Audit Committee and begins a thorough investigation. The CCO leads the process and reports directly to the Audit Committee. If needed, the CCO and the committee may request external legal advice. The CCO reports the cases to Fortuna’s Board through the Audit Committee. Fortuna also developed its Supplier Code of Ethics in 2019, to guide the ethical behaviour of its suppliers and other parties with whom it maintains business relationships. Like the Code of Ethics, this document describes certain behaviours associated with corruption, conflict of interest, gifts, etc. which are not acceptable in Fortuna. Fortuna provides a copy of this Code to all suppliers and requests that they sign an acknowledgement that they have read it and will comply with the provisions of the Code. The complaints associated with events of non-compliance with this Code follow the same procedure as the complaints in the Code of Ethics.

• Applying an Anti-corruption Policy
• Fortuna’s Anti-corruption Policy prohibits bribery, corruption, facilitation payments, gifts, and the payment of political contributions. The Policy provides limited situations in which expenses of government officials may be paid and places a dollar value limit on certain food and entertainment expenses. It also defines bribery and corruption, provides examples of what this may look like and defines government officials. This Policy also seeks to prevent employees and their family members from giving or receiving any gift, gratuity or invitation that could be perceived as an unjustified influence on a business relationship. Fortuna communicates this Policy by providing a copy to all new employees and all partners, agents, consultants, and other contractual parties who interact with government officials on the company’s behalf and conducts training on the Anti-corruption Policy for all employees in managerial and supervisory positions. Employees are requested to sign a certificate of compliance with this policy annually. This certificate serves to verify that they have not violated any of the terms and conditions of the policy and are unaware of any violation or potential violation of the policy. The person responsible for overseeing the Anti-corruption Policy is the CCO. Employees who become aware of a violation of the Policy must report the matter to their immediate supervisor/ manager or the CCO as soon as possible. If an employee reports the matter to their immediate supervisor/ manager, that supervisor/manager must immediately communicate the information to the CCO through the whistle-blower website. Where an employee does not want to report suspicious activity to their immediate supervisor/manager or directly to the CCO, then a report can be made anonymously through the whistle-blower website. The Policy provides that the CCO shall report all violations or potential violations of the Policy or applicable anti-bribery and anti-corruption laws to the Audit Committee, and the Audit Committee in consultation with the CCO shall determine the most appropriate method to investigate the substance of the complaints and ensure that there is appropriate monitoring of progress until the matter has been satisfactorily resolved. As needed, the CCO and the Audit committee may request external advice. When a complaint is submitted, the CCO notifies the Chair of the Audit Committee and begins a thorough investigation. The CCO reports the cases to Fortuna’s Board through the Audit Committee and, each year, the CCO requests each compliance officer of the subsidiaries in addition to the managers and chief financial officers to answer a series of questions seeking to verify that there have been no breaches of the Anti-corruption Policy. In addition, in connection with the annual preparation of audited financial statements, Fortuna is subjected to external audits by internationally recognised accounting firms such as KPMG and PwC on an annual basis, to verify compliance with the applicable sections of the Sarbanes-Oxley Act (SOX). These audits check that the channel to file complaints is active and functioning properly.

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

The GRI Standards addressed in this case are:

1) Disclosure 205-2 Communication and training about anti-corruption policies and procedures

2) Disclosure 205-3 Confirmed incidents of corruption and actions taken

 

Disclosure 205-2 Communication and training about anti-corruption policies and procedures corresponds to:

• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.5

Disclosure 205-3 Confirmed incidents of corruption and actions taken corresponds to:

• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.5

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
 

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/

Note to Fortuna: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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:

• Sustainable Development Goal (SDG) 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
• Business theme: Employee training and education
• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Gender equality
• 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 404-2 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:

• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Gender equality
• 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

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
 

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/

Note to Fortuna: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.