Five-Year Sustainability Goals

Previously, Sherritt reported against annual sustainability targets in this section. In place of these annualized performance metrics, Sherritt developed a suite of five-year sustainability goals in 2017. With the input of the divisions, and approved by the Executive team, these goals will shape priorities, long-range planning, and investment in sustainable development across all of Sherritt’s operations. For 2017 performance, review the 2017 performance summaries on the landing page of each pillar: Providing a Safe and Rewarding Workplace; Operating Ethically; Demonstrating Environmental Responsibility; and Engaging Stakeholders and Benefitting Communities. As well, our GRI performance tables can be found here.

These strategic goals will incorporate our external commitments and focus on areas that advance and protect our interests, and support Operational Excellence. They are intended to complement and supplement – not duplicate – priority efforts already underway.

Goal 1 Achieve Level A requirements in TSM protocols across all operations
Goal 2 Strengthen safety culture, behaviour and performance
Goal 3 Improve water, energy and emissions management across operations
Goal 4 Create community benefit footprints that support local priorities and the SDGs
Goal 5 Be recognized as a “supplier of choice” for responsibly produced, high-quality products
Goal 6 Improve diversity at all levels throughout the company

Check back for an update regarding the reporting template and metrics for the goals in the 2018 Sustainability Report.

GRI Index

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

General Standard Disclosures
General Standard Disclosures
GRI Indicator Description Location SDG
102-1 Name of the organization

About Sherritt

102-2 Activities, brands, products and services

About Sherritt

102-3 Location of headquarters

About Sherritt – Map/Description

102-4 Location of operations

About Sherritt – Map/Description

102-5 Ownership and legal form

About Sherritt

102-6 Markets served

About Sherritt – Divisions/Products

102-7 Scale of the organization

About Sherritt – 2017 Key Indicators

2017 Annual Report

Information on employees and other workers

Disclosure Components Canada Cuba2 Madagascar Other3 Total Sherritt
Full-time
Men 669 525 2,940 6 4,140
Women 158 65 437 11 671
Unknown 1,931 1,931
Part-time
Men 7 7
Women 6 6
Unknown
Permanent
Men 676 525 2,940 6 4,147
Women 164 65 437 11 677
Unknown 1,931 7 1,938
Temporary1
Men 6 5 5,137 5,148
Women 7 528 535
Unknown 54 2 56

1Temporary employees include consultants or positions currently filled by contractors. Ambatovy has a temporary workforce included in reporting.

2Includes the office in Havana, Sherritt and GNC employees at Moa, as well as employees of the entities which make up the Oil & Gas and Power businesses (including Energas).

3“Other” includes our Bahamian marketing office, which services the Moa JV, and OGP Spain.

102-8 Information on employees and other workers

Providing a Safe and Rewarding Workplace – Employee Relations

View Data Table

102-9 Supply chain

About Sherritt – Our Supply Chain

102-10 Significant changes to the organization and supply chain

About Sherritt

102-11 Precautionary principle or approach

Demonstrating Environmental Responsibility

102-12 External initiatives

Operating Ethically

Engaging Stakeholders – Multi-Stakeholder Initiatives and Associations

Management Systems

102-13 Membership of associations

Operating Ethically

Engaging Stakeholders – Multi-Stakeholder Initiatives and Associations

Engaging Stakeholders – Partnerships

102-14 Statement from senior decision-maker

CEO Message

102-16 Values, principles, standards and norms of behavior

Our Approach

102-18 Governance structure

Our Approach – Governance

102-40 List of stakeholder groups

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

Percentage of total employees covered by collective bargaining agreements

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate Total Sherritt
Percentage of total employees covered by collective bargaining agreements A process that began in previous years to put a collective bargaining process in place at Ambatovy advanced in 2017. 53.9%1 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 Approximately 5% of Sherritt's employee base is unionized.

1Hourly employees as a percent of total employees at the Fort Site only

102-41 Percentage of total employees covered by collective bargaining agreements

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

View Data Table

102-42 Identifying and selecting stakeholders

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

102-43 Approach to stakeholder engagement

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

102-44 Key topics and concerns raised

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

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Community Grievances

Operating Ethically – Human Rights – Human Rights Grievances

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

102-45 Entities included in the consolidated financial statements

2017 Annual Report – Overview of the Business

102-46 Defining report content and topic boundaries

Our Approach – Materiality

About This Report

102-47 List of material topics

Our Approach – Materiality

102-48 Restatements of information

Water Quantity

102-49 Changes in reporting

About This Report

102-50 Reporting period

About This Report

102-51 Date of most recent report

About This Report

102-52 Reporting cycle

About This Report

102-53 Contact point for questions regarding the report

About This Report

102-54 Claims of reporting in accordance with the GRI Standards

About This Report

102-56 Policy/practice for external assurance

Number of grievances filed, addressed and resolved

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate Total Sherritt
Labour practices
Total number of grievances about labour practices filed through formal grievance mechanisms during the reporting period 8 30 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. 38
Of the identified grievances about labour practices, how many were addressed during the reporting period 8 19 27
Of the identified grievances about labour practices, how many were resolved during the reporting period 8 19 27
Total number of grievances about labour practices filed prior to the reporting period that were resolved during the reporting period
Impacts on society, human rights or the environment
Total number of grievances about impacts on society, human rights or the environment filed through formal grievance mechanisms during the reporting period 82 82
Of the identified grievances about impacts on society, human rights or the environment, how many were addressed during the reporting period 82 82
Of the identified grievances about impacts on society, human rights or the environment, how many were resolved during the reporting period 82 82
Total number of grievances about impacts on society, human rights or the environment practices filed prior to the reporting period that were resolved during the reporting period
Economic Performance
Economic Performance
GRI Indicator Description Location SDG
Material Topic: Economic Performance
103 The management approach and its components

Our Approach – Materiality

Operating Ethically – Economic Performance

An evaluation of the management approach for this topic did not occur in 2017

Direct Economic Value Generated and Distributed1

C$ Million, for the year ended December 31, 2017
Disclosure Components Ambatovy Moa JV and Fort Site Oil & Gas and Power Corporate and Other Total Sherritt
Revenues 279.2 417.0 178.2 43.1 917.5
Costs
Operating costs (costs of sales), excludes depreciation, employee costs and community investments disclosed below 198.8 228.7 53.1 39.4 520.0
Employee wages and benefits 39.5 102.0 28.5 41.0 211.0
Spending on capital 44.2 20.9 20.9 0.0 86.0
Payments to governments2 13.6 28.2 20.9 6.1 68.8
Community investment3 0.52 0.86 0.38 0.30 2.06
Total economic value distributed 296.6 380.7 123.8 86.8 887.9
Economic value retained or invested (pre-calculated as "Direct economic value generated" less "Economic value distributed") (17.4) 36.3 54.4 (43.7) 29.6

1These figures reflect Sherritt’s ownership share in 2017 and reporting for the Moa Joint Venture and Fort Saskatchewan facility are combined to align with other financial disclosures.

2Includes fines and penalties, where appropriate.

3Reported on cash basis only. Does not include in-kind valuations. See Economic Benefit Footprint for more information.

Note: There may be some discrepancies between Sherritt’s economic disclosures and the ESTMA filing, due to differences in reporting scope and definitions.

201-1 Direct economic value generated and distributed

About Sherritt – 2017 Key Indicators

Operating Ethically – Economic Performance

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

View Data Table

201-2 Financial implications and other risks and opportunities due to climate change

2017 Annual Information Form – Climate Change/Greenhouse Gas Emissions

Demonstrating Environmental Responsibility – Energy and Climate Change – Management Approach

Financial assistance received from government1

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total monetary value of financial assistance received by the organization from governments, by country2 $180,391

1See section “Overview of Our Business” in our Annual Report for information on whether, and the extent to which, governments are present in the shareholding structure.

2These figures are based on a 100% ownership structure.

201-4 Financial assistance received from government

Operating Ethically – Economic Performance

View Data Table

Material Topic: Market Presence
103 The management approach and its components

Our Approach – Materiality

Engaging Stakeholders and Benefitting Communities – Community Development

Sherritt Financial Reports

An evaluation of the management approach for this topic did not occur in 2017

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

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate
Percentage of senior management1 at significant locations of operation that are hired from the local2 community 17% 89% 98% 54% Not applicable

1Definition: Manager (of a group), Director, Controller, Senior Counsel, VP, SVP, CFO, COO, President or CEO.

2“Local community” refers to national-level hiring at Ambatovy and Cuban sites and to the Greater Edmonton and Toronto Areas for the Fort Site and Corporate, respectively.

202-2 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

Material Topic: Indirect Economic Impacts
103 The management approach and its components

Our Approach – Materiality

Engaging Stakeholders and Benefitting Communities – Community Development

Sherritt Financial Reports

An evaluation of the management approach for this topic did not occur in 2017

Infrastructure investments and services supported

Disclosure Components Ambatovy Fort Saskatchewan Cuba

Extent of development of significant infrastructure investments and services supported

Current or expected positive or negative impacts on communities and local economies

In Madagascar, Ambatovy has invested heavily in industrial and public infrastructure, in order to support its 100% value-added operations in-country. For example, in 2017, Ambatovy built two markets (in Moramanga and in Brickaville), paved a roadway in the city of Toamasina and rehabilitated a vocational school. These projects were funded by the Social Investment Fund. There were no significant investments in infrastructure in 2017. In Cuba, Sherritt has invested in public infrastructure through its Community Investment program, including, among other things, street lighting; sanitation and construction equipment; roads; transportation services; and equipment for hospitals, schools and retirement homes.
203-1 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

203-2 Significant indirect economic impacts

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

Economic Benefit Footprint

(C$ millions)
Disclosure Components Ambatovy1 Fort Saskatchewan Moa Site1 Oil & Gas and Power1 Total Sherritt
Payments to governments 35.992 11.29 33.77 23.28 104.33
Local/national procurement3 278.64 97.21 108.95 26.85 520.65
Local salaries, wages and benefits 37.40 108.56 54.82 13.66 214.45
Community investment4 1.93 0.23 0.39 0.49 3.04
Economic benefit footprint5 362.96 217.29 197.93 64.28 842.47

1Reported in USD; converted using Bank of Canada’s 2017 average exchange rate of 1.2986.

2At Ambatovy, the payment method for royalties is under development and no royalty payments were released in 2017.

3Procurement is calculated at the national level for all except for the Fort Site, which refers to the Greater Edmonton Area.

4Includes in-kind valuations.

5This calculation includes the sum of the value on local suppliers, local salaries and wages, payments to government and community investment. All reported on a 100% ownership basis.

SI-1 Economic benefit footprint

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

View Data Table

Material Topic: Procurement Practices
103 The management approach and its components

Our Approach – Materiality

Engaging Stakeholders and Benefitting Communities – Community Development

An evaluation of the management approach for this topic did not occur in 2017

Proportion of spending on local suppliers1

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Percentage of the procurement budget used for significant locations of operation spent on suppliers local1 to that operation 38% 81% 36% 44%

1“Local suppliers” refers to the national level for Madagascar and Cuba and to the Greater Edmonton Area for the Fort Site.

204-1 Proportion of spending on local suppliers

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

View Data Table

Material Topic: Anti-Corruption
103 The management approach and its components

Our Approach – Materiality

Operating Ethically – Business Conduct

An evaluation of the management approach for this topic did not occur in 2017

Communication and training about anti-corruption policies and procedures

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate
Total 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 region1 100% of existing employees and 92% of new employees in 2017 100%3

100%3

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.

100%3
The total percentage of governance body members that have received training on anti-corruption, broken down by region (training includes being communicated to)2 100% 100% 100% 100% 100%

1Only Sherritt workers in Canada and Madagascar as well as expatriates are currently eligible for training. Training for other joint venture partners and workers is not within the 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.

2Those 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 the scope of the policy’s training requirements.

3Sherritt is currently revising its onboarding procedure for new employees to better address anti-corruption training for new employees. More information will be provided in 2018.

205-2 Communication and training about anti-corruption policies and procedures

Operating Ethically – Business Conduct – Performance – Anti-Corruption

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

View Data Table

Environmental Performance
Environmental Performance
GRI Indicator Description Location SDG
Material Topic: Energy
103 The management approach and its components

Our Approach – Materiality

Demonstrating Environmental Responsibility – Energy and Climate Change

An evaluation of the management approach for this topic did not occur in 2017

Energy consumption within the organization

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total fossil fuel consumption (GJ) 14,386,0031 4,458,000 5,987,255 30,921,740
Total electricity consumption (GJ) 1,849,630 575,000 592,890 822,868
Total waste fuel consumption (GJ) 168,000
Total coal consumption (GJ) 12,420,135
Total fuel consumption from renewable fuel sources (solar, wind, etc.)
Heating consumption
Cooling consumption
Steam consumption (tonnes) 5,007,580
Electricity sold (MWh) 2,637,918
Heating sold
Cooling sold
Steam sold (GJ) 101,000

1Includes energy consumption from coal (provided by the site) and estimates of fossil fuel consumption based on higher heating value conversion factors for diesel, LPG (propane) and naphtha.

302-1 Energy consumption within the organization

Demonstrating Environmental Responsibility – Energy and Climate Change

View Data Table

Material Topic: Water
103 The management approach and its components

Our Approach – Materiality

Demonstrating Environmental Responsibility – Water

An evaluation of the management approach for this topic did not occur in 2017

Water withdrawal by source1

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total water withdrawal (m3) 26,771,382.5 2,800,000.0 14,040,000.0 5,299,603.0
Surface water, including water from wetlands, rivers and lakes (m3) 26,149,702.5 2,700,000.0 12,855,000.0
Saltwater (m3) Not applicable 4,978,230.0
Ground water (m3) 601,942.0
Rainwater collected directly and stored by the organization (m3)
Waste water from another organization (m3) 3,776.0
Municipal water supplies or other water utilities (m3) 100,000.0 1,155,000.0 174,544.0

1Data are collected from meters and some estimates; collection methodologies differ between sites.

303-1 Water withdrawal by source

Demonstrating Environmental Responsibility – Water – Performance – Water Use

View Data Table

Water recycled and reused

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total volume of water recycled (m3) 3,498,150 4,500,000
Total volume of water recycled and reused as a percentage of total water withdrawal 13.1% 32%
Reclaimed water use (m3)
Process water use (m3) 3,452,208 2,800,000 13,432,000 162,471
Cooling water inflow (m3) 3,507,411 1,100,000 912,565 4,519,104
303-3 Water recycled and reused

Demonstrating Environmental Responsibility – Water – Performance – Water Use

View Data Table

Material Topic: Biodiversity
103 The management approach and its components

Our Approach – Materiality

Demonstrating Environmental Responsibility – Biodiversity and Land

An evaluation of the management approach for this topic did not occur in 2017

304-1 Operational sites owned, leased, managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas

Demonstrating Environmental Responsibility – Biodiversity and Land

304-2 Significant impacts of activities, products and services on biodiversity

Demonstrating Environmental Responsibility – Biodiversity and Land

Habitats protected or restored

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total size of protected areas (ha) 24,133 ha of conservation areas Not applicable Not applicable Not applicable
304-3 Habitats protected or restored

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance

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

View Data Table

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

Disclosure Components Units Ambatovy Fort Saskatchewan Moa Site1 Oil & Gas and Power Total Sherritt
Total amount of land disturbed and not yet rehabilitated ha 2,045.5 100 202 42 2,389.5
Total amount of land newly disturbed within the reporting period ha 168.5 51 2 221.5
Total amount of land newly rehabilitated within the reporting period to the agreed end use ha 4 15 Not applicable 19
Total land rehabilitated since start of project – estimate ha 108.5 Not applicable 655 Not applicable 763.5

1Data reported for Moa represent 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.

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

Sites requiring biodiversity management plans

Disclosure Components Units Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total number of operations requiring biodiversity management plans # 1 Not applicable 1 Not applicable
Number of total operations that have been assessed under the criteria as in need of a BMP # 1 Not applicable 1 Not applicable
Percentage of total operations that have been assessed under the criteria as in need of a BMP % 100 Not applicable 100 Not applicable
Of the number of operations in need of a BMP, the number that have a BMP in place and operational # 1 Not applicable 1 Not applicable
Of the number of operations in need of a BMP, the percentage that have a BMP in place and operational % 100 Not applicable 100 Not applicable
MM2 Sites requiring biodiversity management plans

Demonstrating Environmental Responsibility – Biodiversity and Land

View Data Table

Material Topic: Emissions
103 The management approach and its components

Our Approach – Materiality

Demonstrating Environmental Responsibility – Energy and Climate Change

An evaluation of the management approach for this topic did not occur in 2017

Direct (scope 1) ghg emissions

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Total
Scope 1 emissions (kt CO2e) 1,808 349 610 1,507 4,274
Sources included in the GHG emissions calculation CO2, CH4, N2O CO2, CH4, N2O CO2, CH4 CO2, NOx, SOx, SO2
Other site-specific indicators 64 kt of credits purchased
305-1 Direct (scope 1) GHG emissions

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

View Data Table

Energy indirect (scope 2) ghg emissions

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Total
Scope 2 emissions (kt CO2e) 591 492 108

1Purchased grid electricity

2National grid supply

305-2 Energy indirect (scope 2) GHG emissions

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

View Data Table

Nitrogen oxides, sulfur oxides and other significant air emissions

Disclosure Components Ambatovy1 Fort Saskatchewan Moa Site Oil & Gas and Power
Air emissions – NOx (tonnes) Not reported 1,381 1,304 5,836
Air emissions – SOx (tonnes) Not reported 76 12,091 31,751
Air emissions – TPM (tonnes) Not reported 91 Not reported Not applicable
Air emissions – Persistent organic pollutants (tonnes) Not reported Not applicable Not applicable
Air emissions – Volatile organic compounds (tonnes) Not reported 0.5 Not applicable Not reported
Air emissions – Hazardous air pollutants (tonnes) Not reported 1.1 Not applicable Not reported
Source or emission factors Not reported US EPA Air Emissions Factors US EPA Air Emissions Factors Measured by Gamma2

1In 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.

2OGP works with Gamma, operating on behalf of the Cuban environmental regulator CITMA, on matters of environmental monitoring.

305-7 Nitrogen oxides, sulfur oxides and other significant air emissions

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

View Data Table

Material Topic: Effluents and Waste
103 The management approach and its components

Our Approach – Materiality

Demonstrating Environmental Responsibility – Tailings Management

An evaluation of the management approach for this topic did not occur in 2017

Significant spills

Disclosure Components Ambatovy1 Fort Saskatchewan Moa Site Oil & Gas and Power Total Sherritt
Total number of recorded significant spills (#)
Total volume of recorded significant spills (m3)
306-3 Significant spills

Demonstrating Environmental Responsibility – Water – Performance – Water Quality

View Data Table

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

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Total Sherritt
Total amounts of waste rock (tonnes) 3,123,000 Not applicable 47,871 Not applicable 5,282,630
Total amounts of overburden (tonnes) Not applicable 2,111,759 Not applicable
Total amounts of liquid tailings and sludge (tonnes) 24,077,453 Not applicable 12,221,196 Not applicable 36,298,649
MM3 Total amounts of overburden, rock, tailings and sludges and their associated risks

Demonstrating Environmental Responsibility – Tailings Management – Performance

View Data Table

Material Topic: Environmental Compliance
103 The management approach and its components

Our Approach – Materiality

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation

An evaluation of the management approach for this topic did not occur in 2017

Non-compliance with environmental laws and regulations

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate
Significant fines and non-monetary sanctions in terms of:
Total monetary value of significant fines (millions) $6.1
Total number of non-monetary sanctions (#) 1
Cases brought through dispute resolution mechanisms – fines (millions)
Cases brought through dispute resolution mechanisms – non-monetary sanctions (#)
307-1 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

High-severity environmental incidents

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate
Number of high-severity environmental incidents (#)
Comments Ambatovy was ordered by the national regulator to remove a ramp in the Mangoro river, installed to assist with approved water diversion for operations. Sherritt paid federal and provincial fines and penalties formalized by the Court in Alberta during the year ended December 31, 2017, related to past infractions.
SI-3 High-severity environmental incidents

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

View Data Table

Social Performance: Labour Practices
Social Performance: Labour Practices
GRI Indicator Description Location SDG
Material Topic: Labour/Management Relations
103 The management approach and its components

Our Approach – Materiality

Providing a Safe and Rewarding Workplace – Employee Relations

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

View Data Table

An evaluation of the management approach for this topic did not occur in 2017

Minimum notice periods regarding operational changes

Disclosure Components Ambatovy Fort Saskatchewan Moa Site 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
402-1 Minimum notice periods regarding operational changes

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

View Data Table

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

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate
Total number of strikes and lock-outs that exceeded one week’s duration during the reporting period, by country
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

Material Topic: Occupational Health and Safety
103 The management approach and its components

Our Approach – Materiality

Providing a Safe and Rewarding Workplace – Health and Safety

An evaluation of the management approach for this topic did not occur in 2017

Type of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities1

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate Total Sherritt
(O&G) Power
Number of work-related fatalities
Employees
Contractors and other workers
Total
Number of lost time injuries
Employees Data are only reported as total 1 12 152
Contractors and other workers 1 1 2
Total 2 1 13 1 17
Total recordable injury (TRI) index3
Employees Data are only reported as total 0.13 0.63 0.31 1.52 0.262
Contractors and other workers 0.75 0.54 0.72 0.94 0.36
Total 0.18 0.23 0.50 0.20 0.47 1.52 0.26
Lost time injury (LTI) index
Employees Data are only reported as total 0.13 0.58 0.122
Contractors and other workers 0 0.14 0.94 0.18
Total 0.13 0.11 0.47 0.23 0.12

1All sites are applying the U.S. Occupational Safety & Health Administration (OSHA) general recording criteria. Reference Standard 29 CFR section 1904.7. The Sherritt standard is aligned to this system of rules. We did not track occupational disease rate in 2017 and we currently do not track these data by gender.

2LTI index = # LTI * 200,000/SUM (exposure hours for the year)

3Minor (first-aid level) injuries are not included in TRI index.

“Employees” include: Sherritt and GNC employees seconded to the Moa Joint Venture (100% basis) and local employees of Sherritt seconded to the Ambatovy Joint Venture (100% basis) and others working at Ambatovy; employees of the entities through which the Corporation carries on its Oil & Gas business employees of Energas.

“Contractors and other workers” include contractors and other workers included in the “Employees” category.

403-2 Type of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities

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

View Data Table

Emergency Preparedness

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate
Sites with crisis communication plans Y Y Y Y Y
Sites with crisis/emergency preparedness and response plans Y Y Y Y Y
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

Material Topic: Diversity and Equal Opportunity
103 The management approach and its components

Our Approach – Materiality

Providing a Safe and Rewarding Workplace – Employee Relations

An evaluation of the management approach for this topic did not occur in 2017

Diversity of governance bodies and employees

Disclosure Components Total Sherritt
Percentage of individuals within the organization’s governance bodies (board members)
Male 75%
Female 25%1
Under 30 years old
30-50 years old 14%
Over 50 years old 86%
Minority groups2 Not reported

1In 2017, Edythe A. (Dee) Marcoux departed from the Board mid-year, reducing the representation of females on the Board to 14% for a time; however, in the beginning of 2018, Maryse Bélanger was appointed, returning Sherritt to 25% female representation.

2Board members that self-identify as Aboriginal, persons with a disability or as a visible minority as defined in Canada’s Employment Equity Act

Disclosure Components1 Canada Ambatovy Cuba
Percentage of employees
Male 80.48% 87.10% 89%
Female 19.52% 12.9% 11%

1Includes Sherritt employees and Cuban local national employees

Disclosure Components1, 2 Ambatovy Oil & Gas and Power Corporate Metals (Fort Site only) Commercial and Technologies
Percentage of employees
Under 30 years old 15.84% 7.4% 11.4% 16.5%
30-50 years old 76.96% 44.7% 54.5% 45.5% 40%
Over 50 years old 7.2% 47.9% 34.1% 38% 60%

1Includes Sherritt employees and Cuban local national employees

2Sherritt does not currently track percentage of minority groups for our divisions; however, note that local employment is the majority at all of our sites globally.

405-1 Diversity of governance bodies and employees

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

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Social Performance: Human Rights
Social Performance: Human Rights
GRI Indicator Description Location SDG
Material Topic: Non-Discrimination
103 The management approach and its components

Our Approach – Materiality

Operating Ethically – Human Rights

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Community Grievances

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An evaluation of the management approach for this topic did not occur in 2017

Incidents of discrimination and corrective actions taken

Disclosure Components Ambatovy Fort Saskatchewan Moa Site 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.
406-1 Incidents of discrimination and corrective actions taken

Operating Ethically – Human Rights

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Material Topic: Freedom of Association and Collective Bargaining
103 The management approach and its components

Our Approach – Materiality

Providing a Safe and Rewarding Workplace – Employee Relations

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

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An evaluation of the management approach for this topic did not occur in 2017

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Disclosure Components Ambatovy Fort Saskatchewan Moa Site 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 All Cuban employees hired through national agency.
407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

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

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Material Topic: Child Labour
103 The management approach and its components

Our Approach – Materiality

Operating Ethically – Human Rights

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Community Grievances

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An evaluation of the management approach for this topic did not occur in 2017

Operations and suppliers at significant risk for incidents of child labour

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labour 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. In Canada, the use of child labour is prohibited under labour laws. In 2015, Cuba ratified the ILO's Worst Forms of Child Labour Convention which calls for the prohibition and elimination of the worst forms of child labour, including slavery, trafficking, the use of children in armed conflict, the use of a child for prostitution, pornography and illicit activities (such as drug trafficking) as well as in hazardous work. Cuban legislation prohibits child labour and establishes 17 years old as the minimum age of employment.
408-1 Operations and suppliers at significant risk for incidents of child labour

Operating Ethically – Human Rights – Management Approach

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

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Material Topic: Security Practices
103 The management approach and its components

Our Approach – Materiality

Providing a Safe and Rewarding Workplace – Site Security

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

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Community Grievances

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An evaluation of the management approach for this topic did not occur in 2017

Security personnel trained in human rights policies or procedures

Disclosure Components Ambatovy Fort Saskatchewan Moa Site 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
100%: Private security service providers (contractors)
100%: Government security forces
100% Security is provided by the Cuban state and Sherritt has no authority over their training.
410-1 Security personnel trained in human rights policies or procedures

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

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Material Topic: Human Rights Assessment
103 The management approach and its components

Our Approach – Materiality

Operating Ethically – Human Rights

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Community Grievances

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An evaluation of the management approach for this topic did not occur in 2017

Operations that have been subject to human rights reviews or impact assessments

Disclosure Components Ambatovy Fort Saskatchewan Moa Site 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%
412-1 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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Social Performance: Society
Social Performance: Society
GRI Indicator Description Location SDG
Material Topic: Local Communities
103 The management approach and its components

Our Approach – Materiality

Engaging Stakeholders and Benefitting Communities – Community Development

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

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An evaluation of the management approach for this topic did not occur in 2017

Operations with local community engagement, impact assessments and development programs

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Percentage of operations with
Implemented local community engagement, impact assessments and development programs
Social impact assessments, including gender impact assessments based on participatory processes
Environmental impact assessments and ongoing monitoring
Public disclosure of results of environmental and social impact assessments
Local community development programs based on local communities’ needs
Stakeholder engagement plans based on stakeholder mapping
Broad-based local community consultation committees and processes that include vulnerable groups
Works councils, occupational health and safety committees and other employee representation bodies to deal with impacts
Formal local community grievance processes In progress In Cuba, there is a state-run system where citizens can file complaints against an entity, organization or enterprise whose activities they feel are adversely affecting their well-being.
Implemented local community engagement impact assessments and development programs
413-1 Operations with local community engagement, impact assessments and development programs

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

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Number of community meetings

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Number of community meetings 1,337 26 5 4
SI-5 Number of community meetings

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement

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Material Topic: Artisanal and Small-Scale Mining

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

Disclosure 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 2017, Ambatovy continued to observe small-scale, intermittent exploitation.
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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Material Topic: Resettlement

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

Disclosure Components Ambatovy Moa Site
Sites where resettlement of a community occurred
Number of households involved in any resettlement program
Number of individuals involved in any resettlement program
Consultation processes and measures put in place to reestablish the affected community and to mitigate any impacts of relocation, and the outcomes in terms of livelihoods, including sustainable land use No resettlement occurred in 2017. Throughout the year, there were ongoing discussions with communities near the mine lease area about future resettlement plans. Any resettlement is done in strict adherence to the International Finance Corporation (IFC) Performance Standards, and guidelines set by Madagascar’s national regulatory body. No resettlement occurred in 2017.
Significant disputes related to resettlement and the processes employed to resolve outstanding issues
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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Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Community Grievances

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Material Topic: Closure Planning

Number and percentage of operations with closure plans

Disclosure Components Units Ambatovy Fort Saskatchewan1 Moa Site Oil & Gas and Power
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.

1As part of the provincial operating approval, a closure plan outlining approaches on reclamation and/or remediation is required. In 2017, the Fort Site developed an appropriate plan for the site. This plan was included in the Operating Approval renewal application.

MM10 Number and percentage of operations with closure plans

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

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

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Material Topic: Oil & Gas
OG1 Volume and type of estimated proved reserves and production

2017 Annual Information Form – Description of the Business – Section 3.2

Number and percentage of significant operating sites in which biodiversity risk has been assessed and monitored

Disclosure Components Oil & Gas
Criteria used to define priority sites for biodiversity conservation and where significant biodiversity risk requires Biodiversity Action Plans to be in place As regulated
Biodiversity Action Plan methodology (e.g., definitions, baseline assessments, management plans, protected areas, endemic species’ habitats, endangered species) As regulated
Total number and percentage of significant operating sites where biodiversity risk has been assessed 5 sites currently
100%
Number and percentage of significant operating sites exposed to significant biodiversity risk
Number and percentage of significant operating sites exposed to significant biodiversity risk in which Biodiversity Action Plans have been implemented and monitored
OG4 Number and percentage of significant operating sites in which biodiversity risk has been assessed and monitored

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Volume and disposal of formation or produced water

Disclosure Components Oil & Gas
Total volume of produced water 407,486 m3
Volume and percentage of produced water by disposal method (including reused, recycled, reinjected) 397,240 m3 reinjected
Strategies and criteria for disposal and treatment, and standards used for quality of produced water discharged, including hydrocarbon and salinity Metered

Volume of hydrocarbon discharged within produced water is not measured at this time.

OG5 Volume and disposal of formation or produced water

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Volume of flared and vented hydrocarbon

Disclosure Components Oil & Gas
Volume of flared hydrocarbon 104,355 e3m3
Volume of continuously flared hydrocarbon broken down by country 104,355 e3m3
Volume of vented hydrocarbon
Volume of continuously vented hydrocarbon broken down by country
OG6 Volume of flared and vented hydrocarbon

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Amount of drilling waste (drill mud and cuttings) and strategies for treatment and disposal

Disclosure Components Oil & Gas
Total amount of drill mud and cuttings (in tonnes) produced using non-aqueous drilling fluid Sherritt – 150 m3
Cupet – 1,764 m3
Total amount of drill mud and cuttings produced (in tonnes) using aqueous drilling fluid, by disposal method 11,020 m3
Treatment, disposal and minimization strategies Evaporation pond for liquids.
Solids are reclaimed, treated and land farmed.
OG7 Amount of drilling waste (drill mud and cuttings) and strategies for treatment and disposal

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Number of sites that have been decommissioned and sites that are in the process of being decommissioned

Disclosure Components Oil & Gas
Number of sites (broken down into offshore and onshore) and total land area of sites (onshore only) for both active and inactive sites VW PSC Block #2 was returned to CUPET in November 2017
Criteria for defining inactive sites End of contract
Percentage of active sites that have decommissioning plans in place Assets are transferred to state partner at end of contract
Decommissioning approach (e.g., plans for and owners, labour transition, finance, community infrastructure, environment remediation and government sign-off, post-decommissioning monitoring and aftercare) Assets are transferred to state partner at end of contract
Complaints on outstanding local community issues or government notices on decommissioning Not applicable
OG11 Number of sites that have been decommissioned and sites that are in the process of being decommissioned

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Number of process safety events, by business activity

Disclosure Components Oil & Gas
Number of Tier 1 process safety events with narrative per API RP 754 definitions and reported per business activity (refining, upstream, etc.) None
Number of Tier 2 process safety events with narrative per API RP 754 definitions and reported per business activity (refining, upstream, etc.) None
Report on asset integrity monitoring and maintenance program, including progress against actions identified Yearly ultrasonic thickness program in place to test wall thickness.
OG13 Number of process safety events, by business activity

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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.