Evolution is committed to maintaining high standards of ethics, corporate governance, honesty and accountability. These are aligned with our values, in all aspects of our business by enacting robust corporate governance processes and ensuring our employees understand, and consistently meet, the standards formalised in our Corporate Governance Statement.
Evolution’s Sustainability Report provides information detailed information on the management of our material environmental and social risks, with a speciﬁc focus on climate risks, in alignment with the Taskforce on Climate-related Financial Disclosures (TCFD).
Board of Directors
The Board is the governing body of Evolution and its role is to represent and serve the interests of shareholders by overseeing and appraising Evolution’s values, strategies, policies and performance. The Board operates a Risk and Sustainability Committee as a Sub Committee of the Board. The role of the Risk and Sustainability Committee is to advise and support the Board of Directors on all matters pertaining to the Risk and Sustainability of the Company including the appropriate management of risk arising from the Company’s activities.
The Board is supported by the following committees:
- Audit Committee
- Risk and Sustainability Committee
- Nomination and Remuneration Committee
The Board is structured to ensure that the Directors’ skills and experience align with the Company’s goals and strategic direction. The functions and responsibilities for the Board and each Committee is set out in the respective Charters. Click here for information on our Board members.
Click the following links below for information on our Charters:
Risk Mitigation and Management
Risk management is fundamental to maximising the value of our business and informing its strategic direction. Eﬀective risk management enables us to make informed decisions aligned to legislative obligations’ and within the various regulatory frameworks we operate and in line with social expectations. Informed and intelligent decision making will ensure Evolution is able to identify priorities, allocate resources, create advantage or value, demonstrate due diligence in discharging legal and regulatory obligations and meet the standards and expectations of our stakeholders.
Our risk-based decision approach is underpinned by the Sustainability and Strategic Planning Policies, Standards, Integrated Risk Management Framework, supported by site processes and procedures that also align to the principles of the Australian and international standards and guidance. The Group risk reporting and assurance control mechanisms are designed to ensure strategic, operational, legal, ﬁnancial, reputational and other risks are identiﬁed, assessed and appropriately managed. Matters relating to sustainability are recorded in a database and communicated widely across the organisation on daily, weekly, monthly, quarterly and annual timelines dependent on the issue. These are reviewed by our Board Risk and Sustainability Committee throughout the year, supported by regular reviews by the Leadership Team, site leadership teams and subject matter experts such as the TSF Governance Committee. Further, an integrated three level Line of Defence (LOD) assurance program has been implemented, supported by subject matter experts and internal and external audit.
The ﬁnancial reporting and control mechanisms are reviewed during the year by management, the internal audit process, the Audit Committee and external auditors.
The Group has policies in place to manage risk in the area of sustainability, with individual annual Risk and Governance Assurance conﬁrmation letters submitted at the end of each ﬁnancial year by the asset’s General Manager to the Chief Operating Oﬃcer with conﬁrmation to the Board Risk and Sustainability Committee. The Board delegated committees and Leadership Team regularly review the risk portfolio of the business and the eﬀectiveness of the management of those risks.
With the impact of COVID-19, our current risk management focus is on keeping our people safe and well, maintaining safe and reliable operations and supporting our communities, all of which are critical to protecting the future of our business.
The precautionary principle is integrated into our risk management process whereby, to protect the environment, lack of full scientiﬁc certainty shall not be used as a reason for postponing cost-eﬀective measures to prevent environmental degradation.
Each operation is geographically unique and regionally located adjacent to landholders and small communities. In a crisis, Evolution people are often ﬁrst responders and available to assist neighbours, community and neighbouring mines. Through a TCFD alignment review conducted in 2019, extreme weather was identiﬁed as one of three material climate-related risks. Short, medium and long-term risks were then identiﬁed including cyclones, ﬂood, long-term drought, bush and forest ﬁres, late snow cover, food and water borne illness.
Operations prepare thorough mitigation strategies including: cyclone, rain and wind proof infrastructure and shelter; certiﬁed water storage and drainage networks; secured buildings and infrastructure; telemetry weather including lightning detection systems; and emergency response equipment including the provision of ﬁre trucks, ambulances, and personnel who are trained in emergency response including scenario exercises and industry emergency response competitions.
Operations response plans are recorded in Trigger Action Response Plans (TARPS), Emergency Response Plans and Business Continuity Plans. Robust and proactive strategic planning remain integral to ensuring business continuity and the health and safety of our communities.
Many communities were aﬀected by the drought, bushﬁres and ﬂooding experienced in Australia and Canada in FY21.Evolution contributed over A$600,000 in donations to bushﬁre and drought relief and oﬀered in-kind ﬂood relief through our Community Investment program.
Our Cowal Operation responded to a call for help from local shires due to ﬂash ﬂooding which threatened the homes and safety of West Wyalong and Ungarie residents. Our people worked tirelessly with local councils and emergency services to coordinate the community during the ﬂooding and provide aid in sand-bagging eﬀorts.
In response to the Perth Hills bushﬁres, the Chamber of Minerals and Energy coordinated a Bushﬁre Community Support Initiative and invited all member companies to contribute. Evolution contributed A$50,000 to this initiative recognising that a broader industry response would have a more direct impact where it was needed most and directly supported response, relief and recovery eﬀorts for those impacted by the Perth Hills ﬁre.
Boost to emergency services at Red Lake.
Through strong collective leadership Evolution continues to navigate the ongoing COVID-19 pandemic safely with no material impact to operations. There was one positive case of COVID-19 (at Red Lake) that was managed carefully with the site, community and local health department.
We operate under protocols developed to minimise risks to our people and the communities where we operate to support safe production during this challenging period. These plans include activation of our crisis management protocols, restricting international and domestic travel, detailed risk assessments across all operations including our Greenﬁeld exploration projects, enacting strict social distancing protocols including reducing face-to-face interactions, increasing ﬂexible working arrangements, ensuring best practice health management maintenance and regular COVID-19 communication with the entire workforce.
Specialist medical experts were also engaged to deliver up to date specialist advice given the complexity of the pandemic.
Our Code of Conduct sets the standard for our people to act ethically, responsibly and lawfully. It applies to Directors, employees, contractors and consultants employed to undertake work on behalf of, or for Evolution and its subsidiaries. It guides us in meeting our ethical standards and legal requirements, and all Evolution employees complete a training program to understand its requirements. We encourage employees to report known or suspected breaches of the Code and any other policies and directives, and to raise any other serious concerns they may have. Any such report is responded to immediately and investigated accordingly.
Anti-bribery and Corruption policy
Evolution views any bribery or corruption behaviour as unacceptable. Evolution has an Anti-Bribery and Corruption Policy which extends across all our businesses and activities, and applies to Directors, employees, contractors and consultants employed to undertake Whistleblower policy work on behalf of, or for Evolution and its subsidiaries. Anti-bribery and corruption training is provided to all employees. All reported incidents of non-compliance or potential non-compliance are taken seriously, reviewed, and investigated. In FY21, there were no reported incidents of corruption.
A framework has been established for individuals to raise concerns that relate to unacceptable conduct. Details of this framework including the deﬁned elements of independent reporting and investigation procedures, disclosure protection and the role of the Whistleblower Protection Oﬃcer, along with the associated corporate governance, are included in the Whistleblower Policy and Whistleblower Standard. The process is managed by an external third party in conjunction with our People and Culture department. Whistleblowing events and any actions are reported to the Audit Committee and the Risk and Sustainability Committee.
There were zero whistle blower cases reported via our FairCall (KPMG) service in Australia for our currently owned assets, or via People and Culture Management for our Red Lake operations during the reporting period. One claim in relation to Cracow, a divested asset and outside of the scope of this report, was investigated and closed in September 2020.
Tax transparency code
Evolution supports transparency in our payments to governments and takes into consideration relevant transparency standards in ensuring relevant information is provided to our stakeholders.
At a minimum, Evolution complies with the Australian Government’s Voluntary Tax Transparency Code. Payments to government, including taxes and royalties, is provided separately in our Tax Governance Statement available at our website.
Like many businesses and organisations, Evolution faces constant and evolving cyber threats. The operating and control systems at our mines increasingly use digital platforms and high-tech solutions. As such, the security of these systems is crucial for operating our mines safely and eﬃciently, making cyber security one of our material business risks.
A risk-based approach is applied to manage cyber-related security risks applying good practice across standard processes. Evolution leverages leading frameworks such as National Institute of Standards and Technology (NIST)and guidance from Australian Government’s Cyber Security Centre. There are a range of measures implemented to manage cyber risk including:
- A cybersecurity policy applicable to all employees
- A cybersecurity strategy program as part of Evolution’s overall IT strategy
- Clear responsibilities with a centralised IT function and dedicated capability
- Cyber awareness training (98% compliance) supported by ongoing awareness alerts and education
- Deﬁned Disaster Recovery scenarios with Disaster Recovery testing on six-monthly cycles
- Governance reporting and regular assurance including external audits, Incident Response exercises, penetration testing, and assessment against standards and leading guidance
Cybersecurity is a standing item on the Risk and Sustainability Board Sub Committee agenda.