Teck Resources Limited

TECK RESOURCES LIMITED

SUSTAINABILITY REPORT

Module : Corporate Social Responsibility

Student no. (CityU SCOPE) : 5471 3331

Matriculation no. (ENU) : 4029 7438

Submission date : 14 August 2017

TECK RESOURCES LIMITED

1. INTRODUCTION

In previous years, there have been a number of cases regarding Teck Resources Limited (Teck) environmental record. The Company admits polluting Columbia River for 100 years (Howe, 2012); Teck’s copper mine in Chile faces environmental breaches. (Jamasmie, 2015)

To restore reputation by achieving a sustainable business and good corporate citizenship, the Company has taken action in recent years, namely making an agenda for social sustainability, comprehensive strategy for environmental sustainability, and establishment of responsible corporate governance. The end result was presented in this report which includes proposed implementation plans with detailed action steps, 2020 sustainability goals and progress report.

2. THE TRIPLE BOTTOM LINE

“Sustainable development involves the simultaneous pursuit of economic prosperity, environmental quality and social equity. Companies aiming for sustainability need to perform not against a single, financial bottom line but against the triple bottom line.” (World Business Council for Sustainable Development)

The report focuses on the Triple Bottom Line: Economic Material Topics, Environmental Material Topics and Social Material Topics. This is a clear sign that Teck is trying to follow the Global Reporting Initiative (GRI) standards in achieving sustainability. They are also following the guidelines set by the International Council on Mining and Metals (ICMM).

In this study, GRI standards are primarily used to see check the quality of Teck’s sustainability report.

Note that in each topic, Teck briefly explains the mining industry’s situation, and then elaborates on the position of the Company, what they have done, and their plans for long- and short-term; generally a status report to show off their progress for the users of this report. This is very useful for financial users who are not familiar with the mining industry and its operations.

Also note that there is a clear GRI Indicators and Topic Boundary, as well as Material Topic Interconnections in the beginning of each topic. This shows strong acknowledgement of GRI standards and helps users to identify what Teck’s work covers and the progress regarding its sustainability.

TECK RESOURCES LIMITED

3. ECONOMIC MATERIAL TOPICS

3.1 Job creation and economic benefits to local community

In Economic Performance and Contributions, they have disclosed the basics of GRI 201, 202, 203, 204; each of them has its own GRI 103 management approach. (There are 7 pages elaboration, pp. 27-33)

By receiving commercial tax and income tax from Teck, governments will undeniably profit from it. Teck also profits from its resources production and trade. What this means is the assumption of outweighing the importance of benefiting the local communities.

Though mining operations provide employment opportunities (Hjelm, the person in the front cover of this report admits Teck’s mine is the pillar of his family, 2016), there is always a chance that the Company will decide to temporarily shut down mining operations, whether due to the bad economy or financial crisis, or shut it down permanently when the mine has depleted, and when either happens it would be better if they could provide detailed information on the plans and possible dealings with the local employees regarding unemployment.

3.2 Case studies on Mine Closure

The report includes Mine Closure – GRI G4 MM10 – Teck has a detailed plan and procedure in this area. (5 pages, pp. 34-38)

The report shows Teck taking responsibility for what happens after the mine has closed. Details in the report show reclamation is important to the locals – Teck acknowledges their presences. They are the stakeholder in the area; that’s why Teck hires them to foresee the reclamation progress of the area.

Teck begins planning for Mine Closure and reclamation long before mining even starts. The report also includes future plans and existing examples of working with communities and indigenous people – to plan how the land will be used after mining. The report shows promises of planning for economic and social transition, and restoring the land to a productive state.

TECK RESOURCES LIMITED

With over 100 years of mining experience, they should provide more case studies on the outcome and uses of the closed mine area. But it is clear from the case that they are capable of careful planning, consultation with the locals, and dedicated to close and reclaim mine sites for the benefit of the environment, local communities and future generations.

3.3 Transparency on Business Ethics

In this area, the report focuses on the presenting favourable actions on what Teck will do and has done, preferably on Public Policy Initiatives. In business deals, they will not publicly mention the agreed terms and contents regarding contracts between local governments and them. Under the profit seeking motive, both parties may agree on increasing a tad small gap in pollution limits to allow more money to flow into their pockets. (5 pages, pp. 39-43)

Savage et al. (1991) define stakeholders as groups or individuals who “have an interest in the actions of an organisation and […] the ability to influence it.”

Stakeholders, such as activists in local communities, may not be pleased that there is little transparency on the process of contracting with government. If accusation of Teck’s collusion with governments is proven to be true, then Teck may face bad public relations.

3.4 Teck’s Workforce and Local