Five-Year Sustainability Goals

In 2018, Sherritt launched a suite of five-year sustainability goals. These strategic goals 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. With input from the divisions, and executive team approval, these goals will shape priorities, long-range planning, and investments in sustainable development across all of Sherritt’s operations. Division-level plans are articulated in the following table. In future years, we will report on our performance against these plans.

Sustainability Goals Status in 2018

1. Achieve Level A requirements in TSM protocols across all operations.

Goal 1

2018 was Sherritt’s first full year of TSM implementation with sites completing Self-Assessments against the protocols to understand where each Division scores from C to AAA.

2. Strengthen our safety culture, behaviour and performance.

Goal 1

Health and safety performance continued to improve in 2018 across the company. Divisions are setting specific targets for performance based on current state.

3. Improve water, energy and emissions management across operations.

Goal 1

Each of our operating sites has specific opportunities around environmental performance to target. In 2018, sites undertook assessments of the possibilities based on available resources.

4. Create community benefit footprints that support local priorities and the SDGs.

Goal 1

During the year, the Divisions continued to align their community investments with the Community Investment Standard, Sherritt’s priority SDGs and the priorities of the regions in which we operate. In 2019, targets will focus on broadening activities beyond community investment to a more fulsome approach to benefit footprint.

5. Be recognized as a “supplier of choice” for responsibly produced, high-quality products.

Goal 1

Our focus in 2018 was on ensuring robust management systems are implemented across Divisions so that Sherritt can continuously improve the evidence we can offer customers and other stakeholders of our responsible mining and refining practices.

6. Improve diversity at all levels throughout the company.

Goal 1

The focus in 2018 was undergoing a current-state analysis of both our employee population and our policies and procedures to aid in developing a framework to support our goal, to be launched in 2019.

The first year of implementation mainly focused on necessary planning and baseline work to be able to set targets at the divisional level to achieve the goals. Performance will be reported in the 2019 Sustainability Report and in subsequent years in the Performance section of this 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
Organizational profile
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 – Key Indicators

2018 Annual Report

102-8 Information on employees and other workers

View Data Table

Information on employees and other workers

Disclosure Components Canada Cuba2 Madagascar Other3 Total Sherritt
Full-time
Men 656 2,320 3,121 5 6,102
Women 158 192 452 11 813
Unknown
Part-time
Men 16 16
Women 11 11
Unknown
Permanent
Men 672 2,320 3,121 5 6,118
Women 169 192 452 11 824
Unknown
Temporary1
Men 4 3 5,672 1 5,680
Women 2 621 1 623
Unknown 57 57

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

2 Includes 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.

102-9 Supply chain

About Sherritt – Our Supply Chain

102-10 Significant changes to the organization and its supply chain

About Sherritt – Divisions/Products

102-11 Precautionary Principle or approach

Demonstrating Environmental Responsibility

102-12 External initiatives

Operating Ethically

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

Our Approach – Sustainability Framework – Management Systems

Our Approach – Sustainability Goals

102-13 Membership of associations

Operating Ethically

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

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance – Partnerships

Strategy
102-14 Statement from senior decision-maker

CEO Message

102-15 Key impacts, risks and opportunities

CEO Message

2018 Annual Report – Management's Discussion and Analysis

Ethics and integrity
102-16 Values, principles, standards and norms of behaviour

Our Approach

Operating Ethically

102-17 Mechanisms for advice and concerns about ethics

Operating Ethically – Business Conduct – Management Approach

Governance
102-18 Governance structure

Our Approach – Governance

Stakeholder engagement
102-40 List of stakeholder groups

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Management Approach

102-41 Collective bargaining agreements

View Data Table

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 100% of national employees 53.78%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 83%2

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

2 Calculated as a % of headcount, permanent employees, excluding Cuba local nationals.

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

Providing a Safe and Rewarding Workplace – Employee Relations – Performance

Operating Ethically – Human Rights – Management Approach

Reporting practice
102-45 Entities included in the consolidated financial statements

2018 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
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

102-55 GRI content index

This table, the GRI Content Index

102-56 External assurance

About This Report

Management Approach Disclosures
Management Approach Disclosures
GRI Indicator Description Location SDG
103-1 Explanation of the material topic and its Boundary

Our Approach – Materiality

103-2 Number of grievances filed, addressed, and resolved

View Data Table

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 18 33 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 expatriates or Canada-based employees. 51
Of the identified grievances about labour practices, how many were addressed during the reporting period? 18 33 51
Of the identified grievances about labour practices, how many were resolved during the reporting period? 18 15 33
Total number of grievances about labour practices filed prior to the reporting period that were resolved during the reporting period 0 8 8
Internal
Labour grievances filed through formal grievance mechanisms during the reporting period 18 33 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 expatriates or Canada-based employees. 51
Discrimination 5 5
Other
External
Environment 3 1 4
Livelihood/land access 1081 108
Human rights
Social or community
Other 6 6

1 Note that 51 landholders at Ambatovy filed the same grievance together and were counted individually.

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

201-1 Direct economic value generated and distributed

Operating Ethically – Economic Performance

Engaging Stakeholders and Benefitting Communities – Community Development

View Data Table

Direct Economic Value Generated and Distributed1

CDN $ millions, for the year ended December 31, 2018
Disclosure Components Ambatovy Moa JV and Fort Site Oil & Gas and Power Corporate and Other Total Sherritt
Revenues 101.20 498.10 92.10 10.50 701.90
Costs
Operating costs (costs of sales) excludes depreciation, employee costs and community investments disclosed below 71.22 259.60 41.27 9.17 381.26
Employee wages and benefits 13.60 106.40 25.30 17.70 163.00
Spending on capital 15.30 37.00 27.30 1.70 81.30
Payments to governments2 6.80 75.75 9.85 0 92.36
Community investment3 0.08 0.304 0.334 0.335 1.04
Total economic value distributed 106.95 479.05 104.05 28.90 718.96
Economic value retained or invested (pre-calculated as "Direct economic value generated" less "Economic value distributed") (5.75) 19.05 (11.95) (18.40) (17.06)

1 These figures reflect Sherritt’s ownership share in 2018 and reporting for the Moa Joint Venture and Fort Saskatchewan facility are combined to align with other financial disclosures.

2 Includes fines and penalties, where appropriate.

3 Includes cash investments, employee time during working hours, and in-kind valuations.

4 OGP and Moa JV valuation for community investment is allocated on 100% basis to Sherritt.

5 Includes program management costs of the community investment program for direct Sherritt employees only.

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

201-4 Financial assistance received from government

Operating Ethically – Economic Performance

View Data Table

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 $132,428

1 See 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.

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

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

Engaging Stakeholders and Benefitting Communities – Community Development

2018 Annual Report

202-2 Proportion of senior management hired from the local community

Engaging Stakeholders and Benefitting Communities – Community Development

View Data Table

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 11% 95% 98% 54% 100%

1 Definition: 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.

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

Engaging Stakeholders and Benefitting Communities – Community Development

2018 Annual Report

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

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 2018, Ambatovy built one building in Moramanga (the Moramanga Court) and provided 57 portable radios and 11 base radio stations with accessories to the Toamasina Civil Protection Unit.

Those projects were defined and made with the government and communities in order to empower communities. They need to play a key role in their own development process.

There were no significant investments in infrastructure in 2018.

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.

OGP: Two submersible water pumps with control panels and accessories for supporting potable water distribution; a sewer cleaner, high pressure, mounted on a trailer, for servicing municipality sewage pipeline blockage; chainsaws, trimmers and lawn mowers, STIHL brand, for the green-area maintenance of the municipality.

203-2 Significant indirect economic impacts

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

SI-1 Economic benefit footprint

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

View Data Table

Economic Benefit Footprint

(CDN $ millions)
Disclosure Components Ambatovy1 Fort Saskatchewan Moa Site1 Oil & Gas and Power1 Total Sherritt
Payments to governments 56.272 14.77 60.98 21.23 153.25
Local/national procurement3 327.54 131.85 145.64 32.67 637.70
Local salaries, wages and benefits 37.40 108.63 54.96 12.84 213.83
Community investment4 0.64 0.04 0.26 0.33 1.27
Economic benefit footprint5 421.85 255.29 261.84 67.07 1,006.05

1 Reported in USD; converted using Bank of Canada’s 2018 average exchange rate of 1.2957.

2 At Ambatovy, the first lump sum payment of royalties was made in 2018 following the establishment of legislation for the disbursement of royalties in Madagascar.

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

4 Includes cash investments, employee time during working hours, and in-kind valuations.

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

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

Engaging Stakeholders and Benefitting Communities – Community Development

204-1 Proportion of spending on local suppliers

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

View Data Table

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 41% 79% 35% 31%

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

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

Operating Ethically – Business Conduct

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

Operating Ethically – Business Conduct – Performance

View Data Table

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 95% of existing employees and 91% of new employees in 2018 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 who have received training on anti-corruption, broken down by region (training includes being communicated to)2 100% 100% 100% 100% 100%

1 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.

2 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 requirements.

3 Sherritt has revised its onboard procedure to include anti-corruption training and certification of the anti-corruption policy for all new salaried employees. This change will be put into effect concurrently with the rollout of the updated anti-corruption training module in the second quarter of 2019.

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

Demonstrating Environmental Responsibility – Energy and Climate Change

302-1 Energy consumption within the organization

Demonstrating Environmental Responsibility – Energy and Climate Change – Performance

View Data Table

Energy consumption within the organization

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total fossil fuel consumption (GJ) 14,517,9811 4,276,800 5,734,851 24,578,899
Total electricity consumption (GJ) 1,803,906 561,000 207,506 1,160,240
Total waste fuel consumption (GJ) 135,000
Total coal consumption (GJ) 11,792,861
Total fuel consumption from renewable fuel sources (solar, wind, etc.)
Heating consumption
Cooling consumption
Steam consumption (tonnes) 4,915,837 4,074,908
Electricity sold (MWh) 2,426,546
Heating sold
Cooling sold
Steam sold (GJ) 93,000

1 Includes 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.

Material Topic: Water
103 The management approach and its components

Demonstrating Environmental Responsibility – Water

303-1 Water withdrawal by source

Demonstrating Environmental Responsibility – Water – Performance

View Data Table

Water withdrawal by source1

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total water withdrawal (m3) 25,718,190.1 2,651,320.0 15,078,280.0 4,524,316.0
Surface water, including water from wetlands, rivers and lakes (m3) 25,104,363.1 2,547,252.0 13,936,059.0
Saltwater (m3) Not applicable 4,465,876.0
Groundwater (m3) 613,827.0
Rainwater collected directly and stored by the organization (m3)
Waste water from another organization (m3) 1,465.0
Municipal water supplies or other water utilities (m3) 104,068.0 1,142,221.0 58,440.0

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

303-3 Water recycled and reused

Demonstrating Environmental Responsibility – Water – Performance

View Data Table

Water recycled and reused

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Total volume of water recycled (m3) 3,520,380 4,693,690 25,7121
Total volume of water recycled and reused as a percentage of total water withdrawal 13.7% 31% 0.6%
Reclaimed water use (m3)
Process water use (m3) 10,900,0002 2,650,000 14,390,000 203,612
Cooling water inflow (m3) 3,000,000 1,260,000 1,120,395 3,975,558

1 OGP only started to capture water for recycling in 2018.

2 2018 figures represent both the plant and mine site; compared to 2017 in which only the plant site figures were available.

Material Topic: Biodiversity
103 The management approach and its components

Demonstrating Environmental Responsibility – Biodiversity and Land

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 – Management Approach

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance

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

Demonstrating Environmental Responsibility – Biodiversity and Land – Management Approach

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance

304-3 Habitats protected or restored

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance

View Data Table

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 areas1 Not applicable Not applicable Not applicable

1 Includes Torotorofotsy Wetlands, Analamay-Mantadia Forest Corridor (CFAM), Ankerana Forest.

MM1 Amount of land disturbed or rehabilitated

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance

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 2,034.29 100 602.282 42 2,778.57
Total amount of land newly disturbed within the reporting period ha 157.38 48.18 0 205.56
Total amount of land newly rehabilitated within the reporting period to the agreed end use ha 11.865 20 Not applicable 31.87
Total land rehabilitated since start of project – estimate ha 120.365 Not applicable 675 Not applicable 795.37

1 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.

2 Last year, only the mine site was reported (approximately 200 ha). 2018 data is inclusive of the mine site, plant site, roads, port, etc.

MM2 Sites requiring biodiversity management plans

Demonstrating Environmental Responsibility – Biodiversity and Land – Performance

View Data Table

Sites requiring biodiversity management plans (BMP)

Disclosure Components Units Ambatovy Fort Saskatchewan1 Moa Site Oil & Gas and Power1
Total number of operations requiring biodiversity management plans # 12 Not applicable/under development 1 Not applicable/under development
Number of total operations that have been assessed under the criteria as in need of a BMP # 5 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

1 No regulatory obligations requiring a BMP; however, since Sherritt is implementing TSM, these sites are developing site-level BMPs.

2 Ambatovy’s BMP includes five sites: Mine footprint, Mine conservation zone (Ambatovy-Analamay forest), Ankerana offset site, Torotorofotsy offset site, CFAM offset site.

Material Topic: Emissions
103 The management approach and its components

Demonstrating Environmental Responsibility – Energy and Climate Change

305-1 Direct (Scope 1) GHG emissions

Demonstrating Environmental Responsibility – Energy and Climate Change – Performance

View Data Table

Direct (scope 1) ghg emissions

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Total
Scope 1 emissions (kt CO2e) 1,716 317 606 1,418 4,057
Sources included in the GHG emissions calculation CO2, CH4, N2O CO2, CH4, N2O CO2, CH4 CO2, NOx, SOx, SO2
Other site-specific indicators 10 kt of credits purchased
305-2 Energy indirect (Scope 2) GHG emissions

Demonstrating Environmental Responsibility – Energy and Climate Change – Performance

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) 581 521 110

1 Purchased grid electricity.

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air emissions

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) 1,990.7 1,205 1,571 6,147
Air emissions – SOx (tonnes) 6,009.9 66 13,424 28,800
Air emissions – TPM (tonnes) 12,881.0 84 Not reported Not applicable
Air emissions – Persistent organic pollutants (tonnes) Not reported Not applicable Not applicable
Air emissions – Volatile organic compounds (tonnes) Not reported 9.72 Not applicable Not reported
Air emissions – Hazardous air pollutants (tonnes) Not reported 10.42 Not applicable Not reported
Source or emission factors US EPA Air Emissions Factors US EPA Air Emissions Factors US EPA Air Emissions Factors Measured by Gamma4

1 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. The reported values do not include the emissions from flares and mobile equipment used on sites. Calculation methods and inventory for POP, VOCs and HAP are still under development.

2 Increase in reported volume this year as stack-point emissions are available and included in calculation for report. Stack-point emissions were not available in time for the report in 2017. Since the time of the report, the 2017 numbers have been revised to show a volume of 10.4 metric tonnes (vs 0.5 as shown here).

3 HAP value includes VOCs that now include stack-point emissions data that were not included in 2017 (as explained above) and therefore the HAP value in this report. H2S also increased this year due to better quantification/methodology.

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

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

Demonstrating Environmental Responsibility – Tailings Management

Demonstrating Environmental Responsibility – Waste

306-2 Waste by type and disposal method

Demonstrating Environmental Responsibility – Waste – Performance

View Data Table

Waste by Type and Disposal Method

Disclosure Components Ambatovy1 Fort Saskatchewan Moa Site Oil & Gas and Power
Total waste (tonnes) 63,730 m3 + 49,870 tonnes 8,479 20,082 381
Waste recycled – includes recyclables sent off site (batteries, plastics, electronics, etc.)1 1,016 m3 + 49,523 tonnes 205 954 380 m3 + 418 tonnes + 650 kg
Batteries: 528 units
Fluorescent bulbs: 294
Tires: 840
Waste sent to landfills (tonnes) 59,965 m3 8,274 13,558 4,004 m3 + 11 bins
Hazardous waste (tonnes) 82 m3 + 1,300 pieces 5,501 5,570 0

1 Waste recycled – same units of items collected were added up. Methodology and reporting expected to improve for 2019.

306-3 Significant spills

Demonstrating Environmental Responsibility – Water – Performance

View Data Table

Significant spills

Disclosure Components Ambatovy1 Fort Saskatchewan Moa Site Oil & Gas and Power Total Sherritt
Total number of recorded significant spills1 (#) 1 1
Total volume of recorded significant spills (m3) Not available but met internal criteria

1 Significant spill – spill that is included in the organization’s financial statements, for example due to resulting liabilities, or is recorded as a spill by the organization.

MM3 Total amounts of overburden, rock, tailings and sludge and their associated risks

Demonstrating Environmental Responsibility – Tailings Management – Performance

View Data Table

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

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Total Sherritt
Total amounts of waste rock (tonnes) 2,037,000 Not applicable 152,787 Not applicable 4,264,824
Total amounts of overburden (tonnes) Not applicable 2,075,037 Not applicable
Total amounts of liquid tailings and sludge (tonnes) 21,277,833 Not applicable 13,015,771 Not applicable 34,293,604
Material Topic: Environmental Compliance
103 The management approach and its components

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation

307-1 Non-compliance with environmental laws and regulations

Demonstrating Environmental Responsibility – Water – Performance

Demonstrating Environmental Responsibility – Tailings Management – Performance

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

View Data Table

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)
Total number of non-monetary sanctions (#)
Cases brought through dispute resolution mechanisms – fines (millions)
Cases brought through dispute resolution mechanisms – non-monetary sanctions (#)
SI-2 High-severity environmental incidents

View Data Table

High-severity environmental incidents

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Corporate
Number of high-severity environmental incidents1 (#) 1
Comments

A leak was reported in one of the pressure release valves of the pipeline leading from the TMF to the ocean outfall.

Local streams were contaminated with manganese above the WHO criteria of 0.4 mg/l. Drinking water supply of six villages located downstream was impacted and mitigation measures were undertaken.

1 A “high-severity environmental incident” is an incident that results in a significant or lasting effect to the environment as follows:

  • Unlicensed release of >10,000 litres of hydrocarbons or toxic solution to water or ground.
  • Unlicensed air emission that causes a significant off-site impact, including evacuation, damage, use impairment, illness, or other impact to neighbouring facilities or the public.
  • The upset or shutdown of a community wastewater treatment facility or contamination of a drinking water supply.
  • Significant wildlife fatalities (such as a fish or amphibian kill).
  • Unplanned closure or restriction of public transportation routes.
  • Any act triggering a subsequent investigation and/or order by a regulatory agency, other than routine follow-up.
SI-3 Reportable environmental incidents

View Data Table

Reportable environmental incidents

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power Total Sherritt
Number of environmental incidents1 (#) 8 1 0 1 10
Comments Air, water and ground quality related incidents. The majority were low severity with no lasting impacts. Air quality related incident, of low severity with no lasting impacts. Ground quality related incident, of medium severity with no lasting impacts. No employees or community members were harmed while these incidents occurred or while they were addressed.

1 A “reportable environmental incident” is a permit or licence exceedance or non-compliance for air, water or ground that requires reporting to a regulatory agency. This includes administrative non-compliance incidents.

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

Providing a Safe and Rewarding Workplace – Employee Relations

402-1 Minimum notice periods regarding operational changes

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

View Data Table

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 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 – Employee Relations – Performance

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

Providing a Safe and Rewarding Workplace – Health and Safety

Providing a Safe and Rewarding Workplace – Public Safety

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

Providing a Safe and Rewarding Workplace – Health and Safety – Performance

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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 2 4
Contractors and other workers 1 1 2
Total 2 3 1 6
Total recordable injury (TRI) index3
Employees Data are only reported as total 0.26 0.09 0.34 0.92 0.152
Contractors and other workers 0.13 0.91 1.13 0.25
Total 0.12 0.21 0.10 0.50 0.96 0.15
Lost time injury (LTI) index
Employees Data are only reported as total 0.09 0.032
Contractors and other workers 0.13 1.13 0.17
Total 0.02 0.10 0.24 0.04

1 All 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 2018 and we currently do not track these data by gender.

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

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

“Employees” include: Sherritt and GNC employees seconded to the Moa Joint Venture (100% basis); 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 and employees of Energas.

“Contractors and other workers” include: Contractors and other workers not included in the “Employees” category.

SI-4 Emergency preparedness

Providing a Safe and Rewarding Workplace – Public Safety – Performance

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

Providing a Safe and Rewarding Workplace – Employee Relations

405-1 Diversity of governance bodies and employees

Providing a Safe and Rewarding Workplace – Employee Relations – Performance

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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 12.5%
Over 50 years old 87.5%
Minority groups1 Not reported

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

Disclosure Components1 Canada2 Ambatovy Cuba
Percentage of employees
Male 79.88% 87.4% 92%
Female 20.12% 12.6% 8%

1 Includes Sherritt employees and Cuban local national (LN) employees.

2 Includes permanent employees for the Fort Site, OGP Calgary, and Corporate office.

Disclosure Components1, 2 Ambatovy Oil & Gas and Power Corporate4 Metals (Fort Site only)5 Commercial and Technologies
Percentage of employees
Under 30 years old 18.02% 3.5% 7.8% 15.4% 2.8%
30–50 years old 74.95% 48.3% 60.8% 45.9% 50%
Over 50 years old 7.02% 48.3% 31.4% 38.8% 47.2%

1 Includes Sherritt employees and Cuban local national (LN) employees.

2 Sherritt 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.

3 Does not include Spain, consultants or LNs.

4 Does not include consultants or LNs.

5 Excludes Moa.

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

Providing a Safe and Rewarding Workplace – Employee Relations

406-1 Incidents of discrimination and corrective actions taken

Providing a Safe and Rewarding Workplace – Employee Relations – Performance

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

Providing a Safe and Rewarding Workplace – Employee Relations

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

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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 Collective bargaining agreement signed and applicable since June 2018. Unionized employees are represented by Unifor Local 530A. In April 2016, a three-year agreement came into effect. All Cuban employees hired through national agency.
Material Topic: Child Labour
103 The management approach and its components

Operating Ethically – Human Rights

408-1 Operations and suppliers at significant risk for incidents of child labour

Operating Ethically – Human Rights – Management Approach

Operating Ethically – Human Rights – Performance

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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 2018, Sherritt underwent a third-party human rights assessment, which included children’s rights. 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.
Material Topic: Security Practices
103 The management approach and its components

Providing a Safe and Rewarding Workplace – Site Security

Providing a Safe and Rewarding Workplace – Site Security – Case Studies

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

Operating Ethically – Human Rights

412-1 Operations that have been subject to human rights reviews or impact assessments

Operating Ethically – Human Rights – Performance

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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%
Social Performance: Society
Social Performance: Society
GRI Indicator Description Location SDG
Material Topic: Local Communities
103 The management approach and its components

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement

Engaging Stakeholders and Benefitting Communities – Community Development

413-1 Operations with local community engagement, impact assessments, and development programs

Engaging Stakeholders and Benefitting Communities – Community Development – Performance

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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 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
SI-5 Number of community meetings

Engaging Stakeholders and Benefitting Communities – Stakeholder Engagement – Performance

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Number of community meetings

Disclosure Components Ambatovy Fort Saskatchewan Moa Site Oil & Gas and Power
Number of community meetings 556 38 3 12
Material Topic: 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

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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 and gemstone mining have been observed along the pipeline at Ambatovy. This activity presents certain social risks and threatens the integrity of our pipeline; however, the size and scale of this activity has been very small and the risk is low. This activity is not at all comparable with the larger-scale artisanal mining activities happening near 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. Ambatovy collaborates with authorities regarding this matter, particularly if activities impact protected areas. In 2018, Ambatovy continued to observe small-scale, intermittent exploitation; however, the risk remained very low.

Material Topic: Resettlement
MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process

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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 re-establish the affected community, to mitigate any impacts of relocation, and the outcomes in terms of livelihoods, including sustainable land use No resettlement occurred in 2018. 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 2018.
Significant disputes related to resettlement and the processes employed to resolve outstanding issues
Material Topic: Closure Planning
103 The management approach and its components

Demonstrating Environmental Responsibility – Environmental Liabilities, Closure and Reclamation

MM10 Number and percentage of operations with closure plans

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

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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.

1 As 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 submitted in 2018.

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

2018 Annual Information Form (page 22)

OG4 Number and percentage of significant operating sites in which biodiversity risk has been assessed and monitored

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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
Report the 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
OG5 Volume and disposal of formation or produced water

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Volume and disposal of formation or produced water

Disclosure Components Oil & Gas
Total volume of produced water 444,203 m3
Volume and percentage of produced water by disposal method (including re-used, recycled, re-injected) 430,100 m3 re-injected
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.

OG6 Volume of flared and vented hydrocarbon

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Volume of flared and vented hydrocarbon

Disclosure Components Oil & Gas
Volume of flared hydrocarbon 56,393 e3m3
Volume of continuously flared hydrocarbon broken down by country 56,393 e3m3
Volume of vented hydrocarbon
Volume of continuously vented hydrocarbon broken down by country
OG7 Amount of drilling waste and strategies for treatment and disposal

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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 – 0 m3
Cupet – 842 m3
Total amount of drill mud and cuttings (in tonnes) produced using aqueous drilling fluid, by disposal method 842 m3
Treatment, disposal and minimization strategies Evaporation pond for liquids.
Solids are reclaimed, treated and land farmed.
OG11 Number of sites that have been decommissioned and sites that are in the process of being decommissioned

View Data Table

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
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 land 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
OG13 Number of process safety events, by business activity

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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 (UT) program in place to test wall thickness.

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.