HECLA MINING COMPANY Headframe of the Lucky Friday mine, Idaho
SUSTAINABILITY REPORT 2023
Environment | Social | Governance | Appendix | 2023 Hecla Mining Company Sustainability Report | 2 |
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4 | |
6 | |
Environment | Social | |
Environmental Management | 14 | Worker Safety and Health |
Environmental Policies, Management System, | 15 | Safety and Health Leadership |
and Training | Safety and Health Management System | |
Water | 17 | Policies and Standards |
Governance
- Governance Policies
- and Structures
- Corporate Governance Structures
- Policies for Transparency, Ethics,
Appendix
69 | GRI Content Index | |
70 | SASB Content Index | 77 |
72 | TCFD Content Index | 82 |
75 | TSM Content Index | 85 |
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8 | |
9 | |
About This Report | 10 |
13 |
Tailings and Waste | 21 | Safety and Health Performance |
Biodiversity and Land | 22 | Training and Awareness |
Air: Non-GHG Emissions | 24 | Innovation to Improve Safety |
26 | Promoting Employee Wellness | |
Climate Change | ||
Performance: Reducing GHG Emissions | Local Communities | |
Climate-related Opportunities | Engaging with Stakeholders | |
Strategy and Risk Management | Indigenous Relations | |
Economic Impact | ||
Local Donations and Volunteerism | ||
Business and Industry Partnerships | ||
Human Capital Management | ||
Board and Management Oversight of HCM | ||
Building a Skilled Workforce | ||
Developing Talent in our Local Communities | ||
Fostering Diversity and Inclusion |
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50
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60
62
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and Anti-Corruption
Human Rights
Public Policy
Political Activities
Industry Associations
UN Sustainable Development Goals | 86 |
Data Tables | 88 |
89 |
67
Environment | Social | Governance | Appendix | 2023 Hecla Mining Company Sustainability Report | 3 |
Forward-looking Statements
Certain statements contained in this sustainability report are forward-looking statements, including our current expectations and projections about future results, performance, prospects, and opportunities. We have tried to identify these forward-looking statements by using words such as "may," "will," "expect," "anticipate," "believe," "intend," "feel," "plan," "estimate," "project," "forecast," and similar expressions. These forward- looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause our actual results, performance, prospects, or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
These risks, uncertainties, and other factors include but are not limited to those set forth under Part I, Item 1A - Risk Factors in our annual report
filed on Form 10-K for the year ended December 31, 2023, which is available on our website or at www.sec.gov. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Hecla Mining Company or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Sunset at Mount Haldane, Yukon
Introduction Environment Social Governance Appendix
From our President and CEO, Phillips S. Baker, Jr.
2023 Hecla Mining Company Sustainability Report | 4
Hecla showed its resilience in
2023 as we faced interruptions to our operations with a month of wildfires, multiple weather events, and began a new mine in accordance with our high standards of safety, environmental care, and community engagement. Amid these challenges we continued to grow our silver production to help provide the silver needed for transitioning to renewable energy like solar.
We are more committed than ever to responsible mining. This means meeting the highest social and governance standards, minimizing the impact of our operations on the environment, and respecting and supporting the communities where we live and work.
I am pleased to share our 2023 Sustainability Report. These pages highlight our efforts and performance in numerous environmental, social, and governance areas. Our priorities include worker safety and wellbeing, community partnership,
and biodiversity protection. To support our commitments in these areas we have created two new leadership roles: our first Director of Indigenous Affairs and Canadian Community Relations, and our first Corporate Tailings Manager, who oversees our tailings facilities across our sites.
Workforce safety has always been a core value of our company. Our Greens Creek and Lucky Friday mines both experienced their lowest all- injury frequency rates, and all our exploration and reclamation mine properties completed the year with no injuries. Mining associations took note: we received several awards recognizing our safety commitments and performance at Greens Creek, Casa Berardi, and our Nevada locations.
Hecla is a strong community partner with deep roots in almost all of the locations where we operate. We strive to continually give back and nurture this valuable legacy. In 2023, we had a direct economic impact of more than $855 million to our communities, including wages, vendor payments, and taxes, as
well as charitable donations and activities to support schools, hospitals, and roads. Generally, we are the largest private employer where we operate, and we provide great, long- term, well-paying jobs with good benefits.
Our volunteer activities focused on school-age children, health, food security, and improving basic infrastructure in our communities.
We know that diabetes affects many of our employees or their family members so I was pleased to meet with researchers who are leading the fight against diabetes and make a donation as a presenting sponsor of a luncheon for Diabetes Awareness Month.
We have also built on our progress in creating more opportunities for women in our company and within the mining industry. In 2023, we increased our percentage of women in professional roles
by 5% from 2022. We continue to support the Women in Mining association both with financial resources and with our talented people: the chief environmental engineer at Greens Creek serves as vice president of the recently founded Alaska chapter and is a leading advocate
for women in Alaska's mining industry.
Also furthering our contributions to a sustainable future are environmental protection efforts at our sites. For example, at Lucky Friday, Hecla engineers are creating a system to recycle water from tailings ponds to use within the mine. The system is expected to be ready for testing in mid-2024.
At Hecla we measure success by a strong culture, consistent leadership, dedicated employees, and healthy communities. Our commitment
to sustainability will continue to drive our successful business strategy focused on long- term value creation for all our stakeholders.
I'd like to acknowledge the hard work and dedication of our employees, the vision and leadership of our Board, and the trust and support of our shareholders. All our stakeholders are essential to the success of our sustainability work, which in turn is essential to the future of Hecla.
Phillips S. Baker, Jr.
President & Chief Executive Officer
Introduction Environment Social Governance Appendix
Chair of Governance and Social Responsibility Committee Letter
2023 Hecla Mining Company Sustainability Report | 5
With this edition of Hecla's sustainability report, the company reaches seven years of comprehensive reporting on environmental, social, and governance issues in a way that enhances our transparency, our contribution to our communities both local and global, and our success as a business.
As Chair of the Governance and Social Responsibility Committee of Hecla's Board of Directors, I am proud to witness the commitment at all levels of the company to responsible mining and building strong communities wherever
we operate. The commitment to integrating sustainability into our business strategy is shared by all of our Board members, our executive management team, and employees.
Standing on the company's foundation of responsible mining practices, Hecla is at the forefront of a new era, where the world is moving to electrify and decarbonize more aspects of our lives, resulting in an increasing demand for silver to do so. Hecla is ready to produce the silver that the world needs to power our future.
This ESG report has been prepared based on several leading frameworks to enable stakeholders to compare and evaluate our disclosures. These include the Global Reporting Initiative (GRI) 2021 Standards, the Sustainability Accounting Standards Board (SASB) 2023 Metals and Mining Standard, the Task Force on Climate-Related Financial Disclosures (TCFD), and applicable areas of the Towards Sustainable Mining (TSM) protocols.
We are committed to continuing to provide high-quality information on our efforts and performance on a range of ESG issues.
These disclosures are of the highest priority to many of our stakeholders and investors.
While we celebrate the progress Hecla has achieved in its ESG programs, we also look forward to further developing our programs and efforts. We are grateful for the support of our employees, customers, suppliers, communities, investors, and all stakeholders.
Alice Wong
Hecla Board of Directors,
Chair, Governance and Social Responsibility Committee
How does Hecla report on its ESG performance?
Publish annual sustainability report based on priority ESG topics
Benchmark performance against SASB Metals and Mining Standard
Report against relevant aspects of TCFD
Post regular updates on Hecla's website
Report with reference to GRI standards
Introduction Environment Social Governance Appendix
2023 Hecla Mining Company Sustainability Report | 6
About Hecla
Hecla Mining Company (NYSE:HL) is the oldest U.S.-based precious metals mining company,
Hecla utilizes innovative mining practices to produce metals safely and efficiently. We also
Connaught (Cu)
Rackla (Au)
Mayo, Yukon
the world's fastest-growing established silver producer, and the largest silver producer in the U.S., responsible for 40% of all silver mined in the United States. We also mine gold, lead, and zinc
- which is listed as a critical mineral by both the U.S. Department of Interior and Natural Resources Canada. Domestic sources of these metals provide stability amid disruption of global supply chains.
We have deep roots in our communities and have been in business for over 130 years. Today, we are operating four mines in the U.S. and Canada. We own additional exploration properties and pre- development projects in world-class silver and gold mining districts across North America. We are also responsible stewards of our closed and inactive properties, where we conduct land reclamation
innovate to continually improve our environmental and community impacts. The jurisdictions where we operate have stringent regulatory frameworks for health and safety protection, environmental compliance, corporate governance, and adherence to human rights. Hecla is committed to responsible mining operations that meet and exceed these regulatory frameworks, providing a positive work environment for our workers and the communities where we operate.
Dawson, Yukon | Keno Hill (Ag, Pb, Zn) |
Mayo, Yukon
Greens Creek (Ag, Au, Pb, Zn)
Admiralty Island, Alaska
Kinskuch (Ag)
Alice Arm, BC
Silver Valley / Star (Ag, Pb, Zn) | Rock Creek (Ag, Cu) | |
Wallace, Idaho | Noxon, Montana | |
Republic (Au) | Libby Exploration Project (Ag, Cu) | |
Republic, Washington | Libby, Montana | |
Vancouver, BC | ||
Lucky Friday (Ag, Pb, Zn) | ||
Coeur d'Alene, Idaho | ||
Mullan, Idaho |
Opinaca / Wildcat (Au)
James Bay, Québec
Casa Berardi (Au)
La Sarre, Québec
Val d'Or, Quebéc
Heva-Hosco (Au)
and long-term environmental monitoring.
Midas (Au)
Elko County, Nevada
Aurora (Au)
Mineral County, Nevada
Monte Cristo (Au)
Esmeralda County, Nevada
operating mine / mill exploration project corporate office
Hollister (Au)
Elko County, Nevada
San Juan Silver (Ag, Pb, Zn)
Creede, Colorado
Fire Creek (Au)
Lander County, Nevada
San Sebastian (Ag, Au)
Durango, Mexico
Val d'Or, Québec
Environment | Social | Governance | Appendix | 2023 Hecla Mining Company Sustainability Report | 7 |
Hecla by the Numbers in 2023
$855M | 40,488 | 423 |
direct economic impact | safety and health training hours | GHG scopes 1 & 2 emissions intensity |
(Ag-equivalent ounces/metric tonnes CO2e) |
$104M | 5% | 70 |
total government contribution | increase in women in professional roles | energy use intensity |
(Ag-equivalent ounces/mWh) |
1,472 | 29% | 0.02 |
environmental training hours | women on the Board of Directors | water usage intensity (Ag-equivalent ounces/ |
gallons used in mining or process operations) |
Environment | Social | Governance | Appendix | 2023 Hecla Mining Company Sustainability Report | 8 |
Silver Leads to a Green Future
Amid the sustained global momentum towards a green economy, institutions around the world are setting ambitious targets to reduce carbon emissions. Electrifying more aspects of our lives
- which is essential to decarbonization - relies on silver for renewable energy and electric transport. Hecla is executing a growth strategy and projects to deliver up to 20 million ounces of annual silver production by 2026 to meet sharply rising demand.
Silver for Electric Vehicles (EVs): Silver is already a vital metal in the automotive industry. Battery-poweredelectric vehicles (BEVs), which are becoming more prevalent each year, use twice as much silver as cars with a combustion engine. By 2025, production of BEVs is expected to be triple the 2020 level, increasing the demand for silver-bearingcomponents such
as electronic control units, battery packs, and connections for sensors and other subsystems.
Silver for Solar Power: Silver plays a critical role in the energy transition, in particular in generating solar electricity. The photovoltaic (PV) industry is shifting towards manufacturing higher-efficiency cells that require more silver than in the past - 30% to 120% more. Driven largely by the solar industry, the world is experiencing what may be the highest- ever deficit between silver supply and demand.1
The overall need for silver is expected to increase as PV production ramps up to meet increasing electricity demand, respond to the trend towards higher-efficiency cells, and fulfill renewable energy targets. If solar installation continues to grow
at the same rate as over the last five years, the demand for silver will exceed 500 million ounces for the solar industry alone - bringing total silver demand from 1.2 billion ounces per year today to at least 1.6 billion ounces by 2030. That's about double what the world's mines currently produce.
As our 2023 Annual Reporthighlights, Hecla is at the forefront of this new era, ready to produce the silver that the world needs to power our future.
"I believe that solar energy is fundamentally changing the silver market."
- Phillips S. Baker, Jr., President and CEO
1) Metals Focus World Silver Survey 2023
Introduction Environment Social Governance Appendix
Our ESG Approach
2023 Hecla Mining Company Sustainability Report | 9
Materiality Matrix
Hecla has integrated sustainability into its business strategy from the highest levels of leadership and planning. We focus on several environmental, social, and governance (ESG) topics that we have carefully selected as priorities for our company through consultations with a range of stakeholders, and we regularly report on our progress.
Assessment of ESG Priorities: Hecla conducted an assessment of priority ESG topics in 2021. As part of this work, Hecla retained the Governance & Accountability Institute (G&A), a respected advisor on ESG issues, to perform an independent third-partyassessment.
The first stage was a materiality assessment. To gather external stakeholder perspectives, we consulted with investors, employees, and ESG rating organizations to identify the most important topics from among the Global Reporting
Initiative (GRI) Standards Topics, the 17 United Nations Sustainable Development Goals (SDGs), and the Sustainability Accounting Standards Board (SASB) Metal and Mining 2018 Standard. We also considered the topics viewed as material by our peers in the mining industry.
We then conducted a deeper analysis to prioritize the 39 issues of greatest importance, by reviewing factors such as how the leading ESG raters and investors select material topics in their sustainability disclosure, rating methodologies, investment decision-making, goal setting, and strategy. The research and analysis results were quantified,
and a score was assigned to each topic. Hecla then identified the highest-scoring topics as having the greatest importance for the business, shown in the materiality matrix to the right.
material | Occupational | ||||
Health & Safety | |||||
more | Human Rights | ||||
Assessment | Tailings | ||||
Perspectives | & Waste | ||||
Air Quality | |||||
Emissions | |||||
Community | |||||
Engagement | |||||
Biodiversity | |||||
Stakeholder | Water & | ||||
Effluents | |||||
Environmental | Ethics | Climate | |||
Change | |||||
Management System | & Integrity | ||||
External | Rights of Indigenous Peoples | ||||
& Rehabilitation | |||||
Labor Relations | Site Closure | ||||
Governance |
Diversity & Equal
Opportunity
less material
less material | more material |
Industry Perspectives
Introduction Environment Social Governance Appendix
2023 Hecla Mining Company Sustainability Report | 1 0
Sustainability Management Structure
Board of Directors & Board Committees
Oversight of ESG: Hecla's commitment to ESG starts at the top with Board oversight of the company's overall ESG strategies and initiatives, and Board committees tasked with specific ESG oversight responsibilities.
The Governance and Social Responsibility Committee is responsible for overseeing ESG-related risks and opportunities, and for reviewing and making recommendations to the Board regarding the company's policies, programs, practices, metrics, and performance indicators regarding ESG matters, particularly policy and external matters.
The Health, Safety, Environmental and Technical (HSET) Committee assists the Board in monitoring and reviewing ESG matters, supporting Hecla's commitment to adopt best practices in mining operations, promoting a safe and healthy work environment, and advancing environmentally sound and socially responsible resource development. It oversees ESG risks, strategic plans, and progress on issues that could adversely affect the company's operations, strategies, or reputation, with a focus primarily on internal matters and ESG technical requirements. The HSET Committee assists
the Board in monitoring and reviewing health, safety, environmental, and sustainability policies, community impacts, and reviewing performance audits and updates from management.
The Board's Compensation Committee strives to design a fair and competitive compensation program for executive officers that will attract, motivate, and retain highly qualified and experienced executives, provide incentives based on our performance and reward performance, with an overall emphasis on maximizing our long-term shareholder value. As discussed on the next page,
ESG performance indicators are included in the goals that comprise Hecla's two primary incentive compensation plans. By determining the company's performance for purposes of compensation awards under the two primary incentive plans,
the Compensation Committee is directly involved in helping Hecla achieve its ESG goals.
At the executive level, the Vice President and Chief Operating Officer (which position is currently unfilled due to a retirement in December 2023), Vice President - Operations, Vice President - Corporate Development and Sustainability, and Senior Vice President - Chief Administrative Officer are primarily responsible for implementing our ESG programs. They report directly to our Chief Executive Officer (CEO).
In 2023, we created two new roles that support our social and environmental commitments. We hired our first Director of Indigenous Affairs and Canadian Community Relations. She is responsible for building and fostering positive working relationships with Indigenous Peoples, communities, and governments where we do business. We also hired our first Corporate Tailings Manager, who oversees all of our open and closed tailings facilities across our sites.
At our operating sites, our Vice Presidents - General Managers lead our efforts to achieve sustainability goals. Hecla has risk assessment and mitigation measures in place at each operation, with general managers responsible for ensuring continuous improvement toward corporate and site-specific ESG goals.
Hecla's Sustainability Management Structure organizational chart is included here and on our website.
Governance & Social Responsibility Committee | Audit Committee |
Board of Directors
Health, Safety, Environmental | Compensation Committee | Executive Committee |
& Technical Committee | ||
Executive Leadership
Vice President, | Senior Vice President, Chief |
General Counsel | Administrative Officer |
Vice President, Operations | President & CEO | Senior Vice President & | ||
Chief Financial Officer | ||||
Vice Presidents, | Vice President, Corporate |
General Managers | Development & Sustainability |
Sustainability Management at Local Operations
Vice President, General Managers at all local operations
Accountable for the operation & Environmental Management System (EMS) implementation, performance, and continuous improvement
Tailings, waste, and water working group at each site (includes Vice President, Operations
and Engineer of Record for our tailings facilities, among other members)
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Disclaimer
Hecla Mining Company published this content on 17 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2024 15:35:03 UTC.
