Regional participation and relations

5.

Regional participation and relations

Drummond Ltd. confirms its commitment to continue working for economically viable, environmentally sustainable and socially responsible mining, through the operational management of its Corporate Social Responsibility Strategy, which contributes to meeting the Sustainable Development Goals. Through its relational participation and relations, it contributes to:

CONTRIBUTION TO MEETING SUSTAINABLE DEVELOPMENT GOALS

PEACE AND HUMAN RIGHTS

Strengthen capacities among stakeholders to build a peaceful, fair and responsible society that promotes respect for human rights. • Training and promotion

• Peace and social dialogue

• Coexistence and conflict resolution

ENVIRONMENTAL PERFORMANCE

Strengthen business capabilities that ensure world-class environmental performance. • Environmental Sustainability • Conservation and restoration

CSR STRATEGY Contribution to capacity-building

COMPREHENSIVE DEVELOPMENT

Strengthen local capacities for the well-being and prosperity of employees and their families, and the communities in our area of influence. • Education and training • Generation of opportunities • Working Enviroment

GOVERNANCE FOR DEVELOPMENT

Strengthen local capacities for greater efficiency in public planning and management.

• Transparency and citizen oversight

• Institutional and community strengthening

TARGETS

Target 16.5: Promote a culture of legality, to reduce and prevent corruption and bribery in all their forms and ethical, human rights and corporate breaches at the Company’s various locations and among its stakeholders. Target 16.6: Participate in and create spaces at all levels of effective and transparent institutions that are accountable.

Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.

There are two key aspects that the Company has used to strengthen its relationships in the region, transparency and accountability. Drummond has understood that communication and informed dialogue strengthen its information, awarenessraising and promotion mechanisms. Today it actively participates as a member of the Local Multi-Stakeholder Committee of Cesar (CML EITI-Cesar). Its role in this group is essential to promote trust-building processes in the industry that have an impact on quality of life and contribute to the development of the territory.”

MARÍA LORENA ROA National Coordinator EITI Colombia

FOR A SHARED VISION OF THE FUTURE

OF THE REGION

[GRI 415-1]

Contributions to political parties and/or representatives

DRUMMOND LTD., IN ACCORDANCE WITH THE COMPANY’S CODE OF CONDUCT, EXPRESSLY PROHIBITS MAKING DONATIONS AND CONTRIBUTIONS TO POLITICAL PARTIES AND/OR THEIR MEMBERS.

For Drummond ltd. it is essential to promote an effective relationship with its stakeholders, especially those that are located in the area where it operates, recognizing and considering their needs and expectations to be able to have a positive impact, working in coordination and generating synergies that promote regional development and social well-being.

Additionally, participating in efforts at the international, national and regional level to identify and analyze the social conditions of the region and evaluate initiatives that contribute to the vision shared by all of the actors present in the area of influence of the mining, rail and port operations.

Maintaining active participation and effective regional relationships allows Drummond Ltd. to proactively manage this material issue to coordinate the Company’s actions in the short-, medium- and long-term with the expectations of the stakeholders present in the area, hoping that this shared vision can be reflected in its contribution to complying with these regional, national and global agendas, positioning Drummond Ltd. as a model mining company that is committed to sustainability and incorporates its stakeholders into its corporate management.

[DLTD-04] Bettercoal

FOR DRUMMOND LTD., IT IS CRITICAL TO PROMOTE TRANSPARENCY IN ITS PRACTICES, TO MAINTAIN A GOOD

REPUTATION AND TO STRENGTHEN ITS RELATIONSHIPS WITH STAKEHOLDERS.

For this reason, during 2019, its mining and port operations were independently evaluated under the Bettercoal Code, which promotes improvements in the socio-environmental performance of the coal supply chain and evaluates companies’ work.

Having its performance evaluated by a third party is the most effective way to show the progress and sustainability of its operation. The Company is proud to note that in 2014 it was the first coal mining company in the world to be audited under the Bettercoal Code, and it underwent a new audit cycle in 2019. The code consists of 10 principles and 31 provisions with ethical, environmental and social focuses.

With the aim of boosting the Company’s economic, environmental, social and ethical performance, in 2021 it fully implemented the Continuous Improvement Plan, a result of the audit, which met all of the requests made by Bettercoal during the year. Thanks to the efforts and work plans created, practices were improved in areas related to the Community Service System, the implementation of human rights matters in its response system, the Company’s Social Closure Plan, its work in terms of gender equality, issues related to the environment and workplace health and safety, which improve the well-being of its employees and all of its stakeholders. In 2022, a field visit will be conducted to finalize the Continuous Improvement Plan.

The work evaluated based on the principles of the Bettercoal Code, its related provisions and the Continuous Improvement Plan show satisfactory progress and Drummond Ltd.’s work to constantly improve the processes in its operations and to become a world-class benchmark.

Training project for the development of cultural music and dance skills. Zona Bananera, Magdalena

MILESTONES

• Adherence to the U.N. Global

Compact’s CSR strategy, contributing to that shared global vision of combating corruption and incorporating best practices in human rights, labor rights and the environment, strengthening the mining sector in the promotion of activities that support the work of the companies that carry out responsible and sustainable mining (information reported in the ESG Vision section of this report). • Meetings of the Strategic and Sustainability

Committees as the corporate bodies responsible for identifying, analyzing and evaluating the risks and impacts derived from the operations in the areas of

influence, and that guides the organization toward a sustainable model in terms of social, environmental and governance (ESG) issues. • 100% implementation of the Bettercoal Continuous

Improvement Plan. • Updating the risk matrix related to human rights, including the methods for managing each risk. • Providing information for the preparation of the EITI

Colombia Report. • Supporting the work of the

Committee for Monitoring the

Investment of Royalties (CSIR

Cesar), the Human Rights and Coal Working Group, the

Mining and Energy Committee on Security and Human Rights (CME), and the initiative to

Build Trust in Cesar.

CHALLENGES

• Submit the first COP (Communication on Progress) to the U.N. Global Compact. • Continue monitoring risks and establishing strategies to preserve the stability of the operating environment and the social license through the

Strategic and Sustainability

Committees. • Begin an analysis of gaps with Bettercoal Code 2.0 and implement an action plan. • Receive the Bettercoal field visit to finalize the

Continuous Improvement

Plan that was implemented. • Continue the analyses of human rights risks into the Company’s strategic management. • Continue to support regional and national initiatives to promote transparency and social dialogue.