2016 Targets

The table below is a summary of the progress we made in 2016 against annual targets for driving improvements in our sustainability performance, building industry-leading processes for sustainability management, and receiving external recognition as a leader in responsible mining and energy production. Targets are reviewed before the beginning of the calendar year and adjusted to reflect planned organizational changes and initiatives, current events, and business priorities.

We achieved 9 of our 11 targets in 2016, and will look to build on this performance in 2017.

GRI Index

We have aligned our report with the Global Reporting Initiative’s G4 Guidelines. See www.globalreporting.org for more information.

General Standard Disclosures
General Standard Disclosures
GRI Indicator Description Location SDG
G4-1 Statement from the most senior decision-maker of the organization CEO Message
G4-3 Name of the organization About Sherritt
G4-4 Primary brands, products and services About Sherritt
G4-5 Location of organization’s headquarters About Sherritt
G4-6 Number of countries where the organization operates, and names of countries where the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

About Sherritt – Map/Description

http://www.sherritt.com/English/Our-Business/default.aspx

G4-7 Nature of ownership and legal form About Sherritt
G4-8 Markets served About Sherritt – Divisions/Products
G4-9 Scale of the reporting organization

About Sherritt – 2016 Key Indicators

2016 Financial Report – Page 72

G4-10
  • Employee/workforce details

Providing a Safe and Rewarding Workplace – Employee Relations – Performance – Workplace Diversity

View Data Table

1No
Poverty
8Decent Work
and Economic
Growth

Employee/workforce details

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Full-time non-supervisory (total) 2,597 525 1,822 572 27
Men 2,256 439 1,692 492 12
Women 341 86 130 80 15
Part-time non-supervisory (total) 15 2 2
Men 9 1 1
Women 6 1 1
Supervisors (total) 511 84 110 75 23
Men 454 69 103 66 15
Women 57 15 7 9 8
Contractors (total) 1 6 4
Men 1 6 2
Women 2
G4-11 Percentage of total employees covered by collective bargaining agreements

Providing a Safe and Rewarding Workplace – Employee Relations – Performance – Organized Labour, Grievances and Strike Action

View Data Table

1No
Poverty
8Decent Work
and Economic
Growth

Percentage of total employees covered by collective bargaining agreements

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Percentage of total employees covered by collective bargaining agreements A process is underway to set collective agreements with elected employee representatives. 47% In Cuba, all organized labour considerations are mandated by the Cuban state and many systems and tools common in other jurisdictions are not employed there. There were no grievances reported by expatriate or Canada-based employees. Not applicable
G4-12 Description of the organization’s supply chain

About Sherritt – Our Supply Chain

12Responsible
Consumption
and Production
G4-13 Significant changes during the reporting period regarding the organization’s size, structure, ownership or supply chain

About Sherritt

Operating Ethically – Economic Performance – Management Approach

G4-14 Whether and how the precautionary approach or principle is addressed by the organization

Providing a Safe and Rewarding Workplace – Public Safety – Management Approach

12Responsible
Consumption
and Production
G4-15 Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or which it endorses

Our Approach – Sustainability Framework – Management Systems

Providing a Safe and Rewarding Workplace – Public Safety – Management Approach

Demonstrating Environmental Responsibility – Tailings Management – Management Approach

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Multi-Stakeholder Initiatives and Associations

12Responsible
Consumption
and Production
G4-16 Memberships of associations and national or international advocacy organizations

Our Approach – Sustainability Framework – Management Systems

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Multi-Stakeholder Initiatives and Associations

17Partnerships
for the Goals
G4-17 Entities included in the organization’s consolidated financial statements

2016 Annual Report – Overview of the Business – Pages 2–3

G4-18 Process for defining report content

Our Approach – Materiality

G4-19 Priorities identified

Our Approach – Materiality

G4-20 Boundaries – Internal

Our Approach – Materiality

G4-21 Boundaries – External

Our Approach – Materiality

G4-22 Effect of any restatement of information in previous reports

About This Report

G4-23 Significant changes from previous reporting in scope of priorities

About This Report

G4-24 List of stakeholder groups

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

G4-25 Basis for identifying and selecting stakeholders

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

G4-26 Approach to stakeholder engagement

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Multi-Stakeholder Initiatives and Associations

Providing a Safe and Rewarding Workplace – Employee Relations – Performance

G4-27 Topics raised through stakeholder engagement and response

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Community Relations

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Community Grievances

G4-28 Reporting period

About This Report

G4-29 Date of most recent report

About This Report

G4-30 Reporting cycle

About This Report

G4-31 Contact

About Sherritt

G4-32 In accordance option

About This Report

This report was prepared in accordance with the GRI G4 Sustainability Reporting Guidelines – Core Option.

G4-33 External assurance policy

We do not currently have an external assurance policy, but we are in the process of reviewing whether to seek external assurance for future sustainability reporting.

The 2016 report was not assured externally.

G4-34 Governance structure

Our Approach – Governance

G4-56 Organization’s values, principles, standards and norms of behaviour

Our Approach – Our Commitment to Sustainability

Our Approach – Our Purpose and Our Promises

Operating Ethically – Business Conduct – Management Approach

Sherritt 2014 Sustainability Report – Rewarding Workplace

Economic Performance
Economic Performance
GRI Indicator Description Location SDG
Material Aspect: Economic Performance
DMA Disclosure of Management Approach

Our Approach – Our Commitment to Sustainability

Operating Ethically – Economic Performance – Management Approach

2016 Annual Information Form – Risk Factors – Market Conditions – Page 50

2016 Annual Information Form – Description of the Business – Management of Growth – Page 67

G4-EC1 Direct economic value generated and distributed

About Sherritt – 2016 Key Indicators

Operating Ethically – Economic Performance

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Economic Benefit Footprint

View Data Table

1No
Poverty
8Decent Work
and Economic
Growth
9Industry,
Innovation and
Infrastructure

Direct economic value generated and distributed*

(C$ millions)
Indicator Components Ambatovy Moa JV and Fort Site Oil & Gas and Power Corporate
Revenues 264.80 339.30 167.20 48.90
Costs
Operating costs (cost of sales), excludes depreciation, employee costs and community investments disclosed below 215.80 226.52 66.89 31.41
Employee wages and benefits 43.20 89.50 31.00 46.40
Spending on capital 33.10 32.90 26.90 0.10
Payments to governments 13.36 18.10 11.54
Community investment 2.40 0.18 0.31 0.19
Total economic value distributed 307.86 367.20 136.64 78.10
Economic value retained or invested (pre-calculated as “Direct economic value generated” less “Economic value distributed”) (43.06) (27.90) 30.56 (29.20)
* These figures reflect Sherritt’s ownership share in 2016, and reporting for the Moa Joint Venture and Fort Saskatchewan facility are combined to align with other financial disclosures.

Note: There are some discrepancies between Sherritt’s economic indicators and the ESTMA filing, due to differences in reporting scope and definitions.
G4-EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change

Demonstrating Environmental Responsibility – Energy and Climate Change – Management Approach

2016 Annual Information Form – Risk Factors – Climate Change/Greenhouse Gas Emissions – Page 64

13Climate
Action
G4-EC4 Financial assistance received from government

Operating Ethically – Economic Performance

2016 Annual Report – Page 16

View Data Table

Material Aspect: Market Presence

Financial assistance received from government

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total monetary value of financial assistance received by the organization from governments, by country* $23,103
* These figures are reported on a 100% ownership basis.
DMA Disclosure of Management Approach

Engaging Stakeholders and Benefitting Communities – Community Development – Management Approach

G4-EC6 Proportion of senior management hired from the local community at significant locations of operation

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Economic Benefit Footprint

View Data Table

1No
Poverty
8Decent Work
and Economic
Growth
10Reduced
Inequalities

Proportion of senior management hired from the local community at significant locations of operation

Indicator Components Ambatovy Fort Site Moa Site Oil & Gas and Power Corporate
Report the percentage of senior management* at significant locations of operation that are hired from the local community 21% 97% 98% 54% Not applicable
* Definition: Manager (of a group), Director, Controller, Senior Counsel, VP, SVP, CFO, COO, President or CEO.
Material Aspect: Indirect Economic Impacts
DMA Disclosure of Management Approach

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

G4-EC7 Development and impact of infrastructure investments and services supported

About Sherritt – Our Supply Chain

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Economic Benefit Footprint

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Community Investment

View Data Table

7Affordable and
Clean Energy
9Industry,
Innovation and
Infrastructure
11Sustainability Cities
and Communities

Development and impact of infrastructure investments and services supported

Indicator Components Ambatovy Fort Saskatchewan Cuba
Extent of development of significant infrastructure investments and services supported In Madagascar, Ambatovy has invested heavily in industrial and public infrastructure, in order to support its 100% value-added operations in-country. This investment includes: upgrading the Port of Toamasina and 100 km of public roads as well as developing several new projects, such as a railway line to move commodities between the Port and Ambatovy’s processing plant, an electricity-generating station for the processing plant, a water treatment facility, a vocational training centre, a food distribution centre and market facilities, medical clinics, primary schools and resettlement villages. There were no significant investments in infrastructure in 2016 in Fort Saskatchewan. In Cuba, Sherritt has invested in public infrastructure, including, among other things, street lighting; sanitation and construction equipment; roads; transportation services; and equipment for hospitals, schools and retirement homes.
G4-EC8 Significant indirect economic impacts, including the extent of impacts

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Economic Benefit Footprint

1No
Poverty
8Decent Work
and Economic
Growth
10Reduced
Inequalities
SI-1 Economic benefit footprint

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Economic Benefit Footprint

View Data Table

Economic Benefit Footprint

(C$ millions)
Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Total Sherritt
Payments to governments 27.30** 7.91 20.30 19.39 74.91
Local/national procurement 279.55 85.86 90.40 38.55 494.35
Local salaries, wages and benefits 34.32 107.20 55.00 13.82 210.35
Community investment 6.00 17.46 329.15 311.19 6.65
Economic benefit footprint* 347.17 200.99 166.03 72.08 786.26
* This calculation includes the sum of the value of spending on local suppliers, local salaries and wages, payments to government, and community investment. All reported on a 100% ownership basis.
** At Ambatovy, the payment method for royalties is under development and no royalty payments were released in 2016.
Material Aspect: Procurement Practices
DMA Disclosure of Management Approach

Operating Ethically – Business Conduct – Performance – Anti-Corruption

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Economic Benefit Footprint

Case Study – Engaging Stakeholders and Benefitting Communities – Working with Local Businesses at Ambatovy

G4-EC9 Proportion of spending on local suppliers at significant locations of operation

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Economic Benefit Footprint

View Data Table

1No
Poverty
8Decent Work
and Economic
Growth
12Responsible
Consumption
and Production

Proportion of spending on local suppliers at significant locations of operation

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Percentage of the procurement budget used for significant locations of operation spent on suppliers local to that operation 40% 85% 38% 53% Not applicable
Environmental Performance
Environmental Performance
GRI Indicator Description Location SDG
Material Aspect: Energy
DMA Disclosure of Management Approach

Demonstrating Environmental Responsibility

Demonstrating Environmental Responsibility – Energy and Climate Change – Management Approach

G4-EN3 Energy consumption within the organization

Demonstrating Environmental Responsibility – Energy and Climate Change

View Data Table

7Affordable and
Clean Energy
12Responsible
Consumption
and Production
13Climate
Action

Energy Consumption within the Organization

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total fossil fuel consumption 1,585,441 GJ 4,469 TJ of natural gas and 11 TJ of gasoline/diesel/
propane
7,046,245 GJ 40,769,484 GJ
Total electricity consumption 1,966,342 GJ 591 TJ 536,228 GJ 34,713 GJ
Total waste fuel consumption 218 TJ Not applicable
Electricity consumption 1,966,342 GJ 591 TJ Oil and Gas – 9,642 MWh
Energas – 235,440.1 MWh
Heating consumption Not applicable
Cooling consumption Not applicable Not applicable
Steam consumption 5,294,903 t Not applicable
Electricity sold 2,683,080 MWh
Heating sold Not applicable
Cooling sold Not applicable Not applicable
Steam sold 86 TJ Not applicable
Material Aspect: Water
DMA Disclosure of Management Approach

Demonstrating Environmental Responsibility – Water – Management Approach

G4-EN8 Total water withdrawal by source

Demonstrating Environmental Responsibility – Water – Performance – Water Use

View Data Table

6Clean Water
and Sanitation

Total water withdrawal by source

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total water withdrawal by source (m3) 27,783,673 2,500,000 14,150,000 234,346
Surface water, including water from wetlands, rivers, lakes, and oceans (m3) 27,251,949 2,400,000 14,150,000 23,285
Ground water (m3) 531,724 39,600
Rainwater collected directly and stored by the organization (m3)
Waste water from another organization (m3)
Municipal water supplies or other water utilities (m3) 100,000 171,461
G4-EN10 Percentage and total volume of water recycled and reused

Demonstrating Environmental Responsibility – Water – Performance – Water Use

View Data Table

6Clean Water
and Sanitation
12Responsible
Consumption
and Production

Percentage and Total Volume of Water Recycled and Reused

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total volume of water recycled and reused (m3) 61,425 2,100 4,182,000 Not applicable
Percentage of total water recycled and reused 0.22% 0.08% 30.00% Not applicable
Material Aspect: Biodiversity
DMA Disclosure of Management Approach

Demonstrating Environmental Responsibility – Biodiversity and Land – Management Approach

G4-EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas of high biodiversity value outside protected areas

Demonstrating Environmental Responsibility – Biodiversity and Land

15Life
on Land
G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

Demonstrating Environmental Responsibility – Biodiversity and Land

15Life
on Land
G4-EN13 Habitats protected or restored

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation – Performance – Closed Properties

Case Study – Demonstrating Environmental Responsibility – Conserving Madagascar’s Precious Orchids

View Data Table

15Life
on Land
MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance – Land Management

View Data Table

12Responsible
Consumption
and Production
15Life
on Land

Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated

Indicator Components Units Ambatovy* Fort Saskatchewan Moa** Oil & Gas and Power Total Sherritt
Total amount of land disturbed and not yet rehabilitated ha 2,088 100 166 6 2,360
Total amount of land newly disturbed within 2016 ha 82 51 2 135
Total amount of land newly rehabilitated within 2016 to the agreed end use ha 10 30 Not applicable 40
Total land rehabilitated since the start of the project – estimate ha 105 Not applicable 640 Not applicable 745
* Please note the data reported for Ambatovy in 2015 accounted for all planned land disturbance over the entire life of mine, rather than what had been disturbed up to the reporting year; this error has been corrected in 2016 reporting, which accounts for all current land disturbance at the mine, plant and auxiliary facilities.

** Data reported for Moa represents land disturbance that occurred from 1994 onwards – or the years that the Moa Joint Venture between Sherritt and the Cuban state has been in place. The data do not reflect any mining activity at the site that pre-dates the joint venture.
MM2 Sites requiring biodiversity management plans

Demonstrating Environmental Responsibility – Biodiversity and Land

View Data Table

12Responsible
Consumption
and Production
14Life Below
Water
15Life
on Land

Sites requiring biodiversity management plans

Indicator Components Units Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total number of operations requiring biodiversity management plans # 1 Not applicable 1 Not applicable
Number (and percentage) of total operations that have been assessed under the criteria as in need of a BMP # 1 Not applicable 1 Not applicable
% 100 Not applicable 100 Not applicable
Of the number of operations in need of a BMP, the number (and percentage) that have a BMP in place and operational # 1 Not applicable 1 Not applicable
% 100 Not applicable 100 Not applicable
Material Aspect: Emissions
DMA Disclosure of Management Approach

Demonstrating Environmental Responsibility

Demonstrating Environmental Responsibility – Energy and Climate Change – Management Approach

Habitats protected or restored

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total size of protected areas (ha) 20,358 Not applicable Not applicable
G4-EN15 GHG emissions (Scope 1)

Demonstrating Environmental Responsibility – Energy and Climate Change – Performance – GHG Emissions and Energy Consumption

View Data Table

12Responsible
Consumption
and Production
13Climate
Action

Direct greenhouse gas (GHG) emissions (Scope 1)

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate Total Sherritt
Scope 1 emissions (kt CO2e) 1,884 355 622 1,583,042 1,585,904
G4-EN16 GHG emissions (Scope 2)

Demonstrating Environmental Responsibility – Energy and Climate Change – Performance – GHG Emissions and Energy Consumption

View Data Table

12Responsible
Consumption
and Production
13Climate
Action

Direct greenhouse gas (GHG) emissions (Scope 2)

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate Total Sherritt
Scope 2 emissions (kt CO2e) 130 50 180
G4-EN21 Air emissions

Demonstrating Environmental Responsibility – Energy and Climate Change – Performance – Air Quality

View Data Table

12Responsible
Consumption
and Production
13Climate
Action
Material Aspect: Effluents and Waste
DMA Disclosure of Management Approach

Demonstrating Environmental Responsibility – Tailings Management – Management Approach

NOx, SOx and other significant air emissions

Indicator Components Ambatovy* Fort Saskatchewan Moa Oil & Gas and Power
Air emissions – NOX 7.1 μg/m3 1,678 tonnes 1,564 tonnes 6,687 tonnes
Air emissions – SOX 18.3 μg/m3 57 tonnes 13,073 tonnes 11,601 tonnes
Air emissions – TPM 28.2 μg/m3 77 tonnes Not calculated Not applicable
* In Madagascar, our current monitoring system records air emissions as a concentration rather than a total mass (which is what we monitor at our other operations), and we base our ambient air quality observations at ground level. So we are unable to normalize these data across Sherritt.
G4-EN24 Total number and volume of significant spills

Demonstrating Environmental Responsibility – Water – Performance – Water Quality

View Data Table

6Clean Water
and Sanitation
14Life Below
Water
15Life
on Land
MM3 Total amounts of overburden, rock, tailings and sludges and their associated risks

Demonstrating Environmental Responsibility – Tailings Management – Performance

View Data Table

12Responsible
Consumption
and Production
14Life Below
Water
15Life
on Land

Total amounts of overburden, rock, tailings and sludges and their associated risks

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Total Sherritt
Total waste rock, liquid tailings and sludge, and overburden (2015-specific) (tonnes) 25,676,361 Not applicable 12,931,945 Not applicable 38,608,306
Total amounts of waste rock (tonnes) Not applicable 26,595 Not applicable 26,595
Total amounts of liquid tailings and sludge (tonnes) 23,535,361 Not applicable 10,398,200 Not applicable 33,933,561
Total amounts of overburden (tonnes) 2,141,000 Not applicable 2,507,150 Not applicable 4,648,150
Material Aspect: Compliance
DMA Disclosure of Management Approach

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation – Management Approach

Total number and volume of significant spills

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Total Sherritt
Total number of recorded significant spills (#) 1 1
Total volume of recorded significant spills (m3) 2 2
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Demonstrating Environmental Responsibility – Tailings Management – Performance – Update on Remediation of Obed Containment Pond Breach

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation – Management Approach

View Data Table

16Peace, Justice
and Strong
Institutions

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Report significant fines and non-monetary sanctions in terms of:
– Total monetary value of significant fines
– Total number of non-monetary sanctions
– Cases brought through dispute resolution mechanisms
SI-3 High-severity environmental incidents

Providing a Safe and Rewarding Workplace – Public Safety – Performance – Post-Incident Community Support

View Data Table

3Good Health
and Well-Being
11Sustainability Cities
and Communities

High-severity environmental incidents

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Number of high-severity environmental incidents
Material Aspect: Environmental Grievance Mechanisms
DMA Disclosure of Management Approach

Our Approach – Sustainability Framework – Management Systems

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

G4-EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Community Grievances

View Data Table

16Peace, Justice
and Strong
Institutions

Number of grievances about environmental impacts filed, addressed and resolved through formal grievance mechanisms

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total number of grievances about environmental impacts filed through formal grievance mechanisms during the reporting period 16
Total number of grievances about environmental impacts filed through formal grievance mechanisms during the reporting period – addressed 16
Total number of grievances about environmental impacts filed through formal grievance mechanisms during the reporting period – resolved 16
Total number of grievances about environmental impacts filed prior to the reporting period that were resolved during the reporting period
Social Performance: Labour Practices
Social Performance: Labour Practices
GRI Indicator Description Location SDG
Material Aspect: Labour/Management Relations
DMA Disclosure of Management Approach

Providing a Safe and Rewarding Workplace – Employee Relations – Management Approach

G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements

Providing a Safe and Rewarding Workplace – Employee Relations – Management Approach

View Data Table

8Decent Work
and Economic
Growth

Minimum notice periods regarding operational changes, including whether these are specified in collective agreements

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Minimum number of weeks’ notice typically provided to employees and their elected representatives prior to the implementation of significant operational changes that could substantially affect them 20 days (the minimum legal requirement for the Workers’ Council to respond) 2 weeks (not specified in collective agreement) 2 months (standard requirement of state-run employment agency) and additional guidance provided by Cuba’s Ministry of Labour and Social Security 2 months (standard requirement of state-run employment agency) and additional guidance provided by Cuba’s Ministry of Labour and Social Security
MM4 Number of strikes and lock-outs exceeding one week’s duration, by country

Providing a Safe and Rewarding Workplace – Labour Relations – Performance – Organized Labour, Grievances and Strike Action

View Data Table

8Decent Work
and Economic
Growth

Number of strikes and lock-outs exceeding one week’s duration, by country

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Total number of strikes and lock-outs that exceeded one week’s duration during the reporting period, by country
Material Aspect: Occupational Health and Safety
DMA Disclosure of Management Approach

Providing a Safe and Rewarding Workplace – Health and Safety – Management Approach

Case Study – Providing a Safe and Rewarding Workplace – Emergency Prevention and Preparedness – Cuba’s Experience

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Providing a Safe and Rewarding Workplace – Health and Safety – Performance – Lost Time and Recordable Incidents

View Data Table

3Good Health
and Well-Being
8Decent Work
and Economic
Growth

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Indicator Components Ambatovy Fort Site Moa Site Oil & Gas and Power Corporate
(O&G) (Power)
Total recordable injury (TRI) index
Employees (including supervised workers) Data only reported as a total (employees + contractors) 0.27 0.54 0.27
Contractors Data only reported as a total (employees + contractors) 0.15
TOTAL* 0.20 0.25 0.45 0.21
Lost time injury (LTI) index
Employees (including supervised workers) Data only reported as total (employees + contractors) 0.54 0.27
Contractors Data only reported as total (employees + contractors) 0.15
TOTAL 0.01 0.45 0.21
Absentee rate (AR)**
Employees (including supervised workers)*** 3.90% 1.73% Not applicable 0.40% 0.40% 0.26%
Work-related fatalities
Employees (including supervised workers) 4
Contractors
TOTAL 4
* We currently do not track these data by gender.
** These percentages are calculated by dividing the number of days missed per employee by 260. (A typical employee works an average of 260 days per year.) Sherritt does not track the absenteeism rate for contractors.
*** This total does not include Ambatovy expatriates, Fort Saskatchewan salaried workers, Moa workers or OGP Cuban workers. These groups will be included in future reporting.
SI-4 Emergency preparedness

Providing a Safe and Rewarding Workplace – Public Safety – Performance – Emergency Response Planning and Training

Case Study – Providing a Safe and Rewarding Workplace – Emergency Prevention and Preparedness – Cuba’s Experience

View Data Table

3Good Health
and Well-Being
8Decent Work
and Economic
Growth
11Sustainability Cities
and Communities

Emergency Preparedness

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Percentage of locations with crisis/emergency preparedness and response plans Y Y Y Y Y
Percentage of sites with crisis communication plans Y Y Y N Y
Material Aspect: Diversity and Equal Opportunity
DMA Disclosure of Management Approach

Providing a Safe and Rewarding Workplace – Employee Relations – Management Approach

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

Providing a Safe and Rewarding Workplace – Employee Relations – Performance – Workplace Diversity

View Data Table

5Gender
Equality
8Decent Work
and Economic
Growth

Composition of governance bodies and breakdown of employees per employee category

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Percentage of full-time, non-supervisory
Male 87% 84% 93% 86% 44%
Female 13% 16% 7% 14% 56%
Percentage of part-time, non-supervisory
Male 60% 50% 50%
Female 40% 50% 50%
Percentage of supervisory
Male 89% 82% 94% 88% 65%
Female 11% 18% 6% 12% 35%
Percentage of contractors
Male 100% 100% 50%
Female 50%
Material Aspect: Labour Practices Grievance Mechanisms
DMA Disclosure of Management Approach

Providing a Safe and Rewarding Workplace – Employee Relations – Management Approach

G4-LA16 Number of grievances about labour practices filed, addressed, and resolved through formal grievance mechanisms

Providing a Safe and Rewarding Workplace – Employee Relations – Performance – Organized Labour, Grievances and Strike Action

View Data Table

16Peace, Justice
and Strong
Institutions

Number of grievances about labour practices filed, addressed and resolved through formal grievance mechanisms

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Total Sherritt
Total number of grievances about labour practices filed through formal grievance mechanisms during the reporting period 7 18 In Cuba, all organized labour considerations are mandated by the Cuban state and many systems and tools common in other jurisdictions are not employed there. There were no grievances reported by expatriate or Canada-based employees. 25
Of the identified grievances, report how many were addressed during the reporting period 7 18 25
Of the identified grievances, report how many were resolved during the reporting period 4 4
Total number of grievances about labour practices filed prior to the reporting period that were resolved during the reporting period 7 4 11
Social Performance: Human Rights
Social Performance: Human Rights
GRI Indicator Description Location SDG
Material Aspect: Non-Discrimination
DMA Disclosure of Management Approach

Providing a Safe and Rewarding Workplace – Employee Relations – Management Approach

G4-HR3 Total number of incidents of discrimination and corrective actions taken

Operating Ethically – Human Rights

View Data Table

5Gender
Equality
8Decent Work
and Economic
Growth
16Peace, Justice
and Strong
Institutions

Total number of incidents of discrimination and corrective actions taken

Indicator Components Ambatovy Fort Saskatchewan Moa* Oil & Gas and Power*
Number of incidents of discrimination on grounds of race, colour, sex, religion, political opinion, national extraction, or social origin as defined by the ILO, or other
* Incidents of discrimination in Cuba are handled by the state employment agency that provides Sherritt's businesses and joint ventures on the island-nation with workers. The employment agency will require the involvement of Sherritt and/or its joint venture partners in discrimination cases, as appropriate. Such involvement has occurred in previous years.
Material Aspect: Freedom of Association and Collective Bargaining
G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

Providing a Safe and Rewarding Workplace – Employee Relations – Performance – Organized Labour, Grievances and Strike Action

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8Decent Work
and Economic
Growth

Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Measures taken by the organization in the reporting period intended to support rights to exercise freedom of association and collective bargaining The vendor audit questionnaire includes verification of the respect of Malagasy Labour Code to have worker delegates for those vendors with more than 11 employees. Not applicable Not applicable
Material Aspect: Child Labour
G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour

Operating Ethically – Human Rights – Management Approach

Operating Ethically – Human Rights – Performance – Children's Rights

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8Decent Work
and Economic
Growth
16Peace, Justice
and Strong
Institutions

Operations and suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labour This is included in any contract clause to be signed off by any new contractor prior to start of work, and also included in the vendor audit questionnaire as a mandatory verification. Any vendor who violates this clause will be terminated immediately. Not applicable
Material Aspect: Security Practices
DMA Disclosure of Management Approach

Providing a Safe and Rewarding Workplace – Site Security – Management Approach

Case Study – Providing a Safe and Rewarding Workplace – Implementing the Voluntary Principles in Madagascar

G4-HR7 Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations

Providing a Safe and Rewarding Workplace – Site Security – Management Approach

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16Peace, Justice
and Strong
Institutions

Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Percentage of security personnel who have received formal training in the organization’s human rights policies or specific procedures and their application to security

75%: Full-time

90%: Private security service providers (contractors)

100%: Government security forces

100% Not applicable Not applicable
Whether training requirements also apply to third-party organizations providing security personnel Yes Not applicable Not applicable
Material Aspect: Assessment
DMA Disclosure of Management Approach

Operating Ethically – Human Rights – Management Approach

G4-HR9 Total number and percentage of operations that have been subject to human rights reviews or impact assessments

Operating Ethically – Human Rights – Performance

Providing a Safe and Rewarding Workplace – Site Security – Performance – Security and Human Rights

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16Peace, Justice
and Strong
Institutions

Total number and percentage of operations that have been subject to human rights reviews or impact assessments

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total number of operations that have been subject to human rights reviews or human rights impact assessments in country 1 1 1 1
Percentage of operations that have been subject to human rights reviews or human rights impact assessments in country 100% 100% 100% 100%
Material Aspect: Human Rights Grievance Mechanisms
DMA Disclosure of Management Approach

Operating Ethically – Human Rights – Management Approach

G4-HR12 Number of grievances about human rights impacts filed, addressed and resolved through formal grievance mechanisms

Operating Ethically – Human Rights – Performance – Human Rights Grievances

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16Peace, Justice
and Strong
Institutions

Number of grievances about human rights impacts filed, addressed and resolved through formal grievance mechanisms

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total number of grievances about human rights impacts filed through formal grievance mechanisms during the reporting period
Number of grievances about human rights impacts filed through formal grievance mechanisms during the reporting period – addressed
Number of grievances about human rights impacts filed through formal grievance mechanisms during the reporting period – resolved
Total number of grievances about human rights impacts filed prior to the reporting period that were resolved during the reporting period
Social Performance: Society
Social Performance: Society
GRI Indicator Description Location SDG
Material Aspect: Local Communities
DMA Disclosure of Management Approach

Engaging Stakeholders and Benefitting Communities – Community Development – Management Approach

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs

Engaging Stakeholders and Benefitting Communities – Community Development – Performance – Community Investment

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10Reduced
Inequalities
11Sustainability Cities
and Communities

Percentage of operations with implemented local community engagement, impact assessments, and development programs

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Percentage of operations with implemented local community engagement, impact assessments, and development programs 100% 100% 100% 100%
Social impact assessments, including gender impact assessments, based on participatory processes 100% Local community development programs based on communities’ needs
Environmental impact assessments and ongoing monitoring 100% 100% Not applicable
Public disclosure of results of environmental and social impact assessments 100% Not applicable
Local community development programs based on local communities’ needs 100% 100% 100%
Stakeholder engagement plans based on stakeholder mapping 100% 100%
Broad based local community consultation committees and processes that include vulnerable groups 100% Not applicable
Works councils, occupational health and safety committees and other employee representation bodies to deal with impacts 100% 100% Not applicable
Formal local community grievance processes 100% Not applicable
Implemented local community engagement impact assessments and development programs 100% Not applicable
SI-5 Number of community meetings

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement

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10Reduced
Inequalities
11Sustainability Cities
and Communities

Number of community meetings

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Number of community meetings 690 47 7 14 Not applicable
Material Aspect: Artisanal and Small-Scale Mining
MM8 Number and percentage of company operating sites where artisanal and small-scale mining takes place on, or adjacent to, the site; the associated risks and the action taken to manage and mitigate these risks

Operating Ethically – Human Rights

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1No
Poverty
8Decent Work
and Economic
Growth
12Responsible
Consumption
and Production

Number and percentage of company operating sites where artisanal and small-scale mining takes place on, or adjacent to, the site; the associated risks and the action taken to manage and mitigate these risks

Indicator Components Ambatovy
Where ASM takes place on or adjacent to company sites, or presents risks to the company’s operations Small-scale sites of artisanal gold mining have been observed along the Pipeline at Ambatovy. This activity presents certain social risks and threatens the integrity of our pipeline; however, to be clear, the size and scale of this activity has been quite small and the risk is relatively low. This activity is not at all comparable with the larger-scale artisanal mining activities happening near gold mines in other parts of Africa and elsewhere. Ambatovy is working with local authorities to sensitize communities to the potential risks and dangers of these activities and to identify alternatives to enhance income and revenue. Authorities are willing to collaborate with us to address this matter. In 2015, two sites were completely closed and only intermittent exploitation was observed at the other.
Material Aspect: Resettlement
MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process

Operating Ethically – Human Rights

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1No
Poverty

Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process

Indicator Components Ambatovy Moa
Sites where resettlement of a community occurred Two villages identified in the mine lease area: Ampangadiantrandraka and Ankazotokana Resettlement is undertaken by the municipal government. In 2016, no resettlement action was undertaken to the knowledge of Sherritt.
Number of households involved in any resettlement program 36 households identified
Number of individuals involved in any resettlement program 169 individuals identified
Consultation processes and measures put in place to re-establish the affected community, to mitigate any impacts of relocation, and the outcomes in terms of livelihoods, including sustainable land use In 2016, a resettlement committee, which includes local authorities, traditional leaders, and community members, met four times. However, the process is still ongoing and no resettlement occurred in 2016. Any resettlement is done in strict adherence to the International Finance Corporation (IFC) Performance Standards, and guidelines set by Madagascar’s national regulatory body. Not applicable
Significant disputes related to resettlement and the processes employed to resolve outstanding issues
Material Aspect: Closure Planning
DMA Disclosure of Management Approach

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation – Management Approach

MM10 Number and percentage of operations with closure plans

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation – Performance – Current Operations

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12Responsible
Consumption
and Production

Number and percentage of operations with closure plans

Indicator Components Units Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Identify operations within the division that have closure plans % 100 100 100 OGP sites revert to the Cuban state upon closure.
# 1 1 1 OGP sites revert to the Cuban state upon closure.
Material Aspect: Anti-Corruption
DMA Disclosure of Management Approach

Operating Ethically – Business Conduct – Management Approach

G4-SO4 Communication and training on anti-corruption policies and procedures

Operating Ethically – Business Conduct – Performance – Anti-Corruption

Case Study – Operating Ethically – Rolling Out Anti-Corruption Training

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10Reduced
Inequalities
16Peace, Justice
and Strong
Institutions

Communication and training on anti-corruption policies and procedures

Indicator Components Units Ambatovy Fort Saskatchewan Moa Oil & Gas and Power Corporate
Total number and percentage of employees to whom the organization's anti-corruption policies and procedures have been communicated and who have been trained on these policies and procedures, broken down by employee category and region* % 100 100 100 100
# 3,108 + over 8,600 contractors 609 All contracts that empower suppliers to represent Sherritt are to include appropriate contractual safeguards to ensure compliance with our Anti-Corruption Policy. Contractors are not required to do training at this time.
The total number and percentage of governance body members that have received training on anti-corruption, broken down by region (training includes being communicated to)** % 100 100 100 100 100
* Only Sherritt workers in Canada, Madagascar, as well as expatriates are currently eligible for training. Training for other joint venture partners and workers is not within scope of Sherritt's policy. We are, however, exploring opportunities to provide a high-level presentation on anti-corruption to Cuban nationals, so they have greater awareness of Canadian and international standards in this evolving area.
** Those eligible for this training include Sherritt's Board of Directors and Sherritt employees who sit on boards of subsidiary companies or joint ventures. Non-Sherritt representatives are not within scope of the policy's training requirement.
Material Aspect: Grievance Mechanisms for Impacts on Society
DMA Disclosure of Management Approach

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach – Corporate Standards to Support Stakeholder Engagement

Operating Ethically – Human Rights – Management Approach

G4-SO11 Number of grievances about impacts on society filed, addressed and resolved through formal grievance mechanisms

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Community Grievances

View Data Table

10Reduced
Inequalities
16Peace, Justice
and Strong
Institutions

Number of grievances about impacts on society filed, addressed and resolved through formal grievance mechanisms

Indicator Components Ambatovy Fort Saskatchewan Moa Oil & Gas and Power
Total number of grievances about impacts on society filed through formal grievance mechanisms during the reporting period 100
Number of grievances about impacts on society filed through formal grievance mechanisms during reporting period – addressed 100
Number of grievances about impacts on society filed through formal grievance mechanisms during reporting period – resolved 100
Number of grievances about impacts on society filed through formal grievance mechanisms prior to the reporting period – resolved

United Nations Global Compact (UNGC)

Please see www.unglobalcompact.org for more information on the UNGC.

The Organisation for Economic Co-operation and Development (OECD)

Please see www.oecd.org for more information on the OECD.