About this Report //
2016 marks Endeavour Silver’s fourth consecutive year of sustainability reporting using the Global Reporting Initiative as our reporting framework.
Our Sustainability Report provides performance data on the core aspects of our sustainability strategy: expanding our commercial success and creating economic value for our stakeholders, upholding rigorous safety standards, procedures and training to ensure our employees work in a safe and healthy manner, minimizing and mitigating the environmental impacts of our business, and improving the quality of life for our employees and nearby communities.
This report includes sustainability performance data from our three producing silver mines: the Guanaceví mine in the state of Durango, and the Bolañitos and El Cubo mines in the state of Guanajuato; as well as relevant performance data from our exploration and development sites. Our human resources indicators cover all operations and exploration and development sites, as well as our corporate head office in Vancouver, Canada, and the administrative office in León, Mexico. In this reporting period, there have been no significant changes to our size, structure, ownership, or supply chain.
This report also includes 12 ‘comprehensive’ General Standard Disclosures relating to our governance and sustainability stewardship. General standard disclosures and performance indicators included in this report and their respective locations are included in our Content Index located at the end of this report.
Defining Our Report Content
This report covers the sustainability-related issues that are considered material – those aspects of Endeavour’s economic, environmental, and social impacts that our stakeholders feel are the most important, and which they wish us to report on.
For the purposes of this report, we view material issues as those topics that:
- have a direct or indirect impact on our business, including the ability to create and preserve economic, environmental and social value
- have the potential to influence the perception of stakeholders who make decisions or assessments regarding our significant economic, environmental, and social impacts
Materiality, therefore, is the threshold at which these topics or issues become sufficiently important that they should be managed, measured, and reported.
To identify the sustainability topics that are material, we apply industry standards and follow the guidance of the GRI (G4) Reporting Principles. Every two years, we also conduct a materiality assessment, in which we survey key stakeholders. The last assessment was conducted in the fall of 2015.
We strive to be inclusive in our definition of stakeholders, because the materiality process is key to informing us of internal and external risks and priorities, as well as issues of importance in an overall sustainability context.
The 2015 materiality assessment process consisted of the identification of material sustainability topics, the prioritization of these topics, and verification of our analysis. Quantitative and qualitative data was gathered through employee interviews and workshops, and also included the following external stakeholders: community members, government authorities, union leaders, land owners, contractors, suppliers, artisanal miners, lenders, financial analysts, and shareholders. Internal leadership and operational management workshops combined with interviews and ranking exercises formed the basis to guide the consensus on, and prioritization of material issues to be managed, measured, and disclosed through our sustainability reporting process. Other sources included internal corporate standards and governance documentation, industry peer reports, international best practices frameworks and policy developments, and the media.
Reporting Period – Jan. 1, 2016 – Dec. 31, 2016
Date of Last Report – Dec. 31, 2015
Reporting Cycle – Annually
Reporting – Global Reporting Initiative (G4)
Framework – Mining & Metals Sector Disclosures
In Accordance Option – Core
Note: This report should be read in conjunction with our Annual Information Form, Management’s Discussion and Analysis, and Financial Statements filed on the System for Electronic Document Analysis and Retrieval (SEDAR) and on the Electronic Data Gathering Analysis and Retrieval system (EDGAR), for a more comprehensive picture of Endeavour (including consolidated financial statements and technical information containing resources, reserves, and exploration projects).
Material Sustainability Topics
Our material issues – the areas of greatest interest and impact to our stakeholders – shape the content of the report and include: economic performance, health and safety, compliance, water, waste, energy and emissions, biodiversity, closure planning, and engagement with local communities.
There were certain topics that did not emerge as the highest ranking material issues in the assessment, however they are topics of interest to our internal and external stakeholders as well as our potential reading audience and therefore received a certain proportion of report coverage. These topics include human rights, security, training and development, and environmental impacts from transportation.
Where Impacts Occur
Our material issues may impact or affect stakeholders inside our organization (Endeavour and its subsidiaries as defined by our financial reporting), outside our organization, or both. Embedded within the narrative of each material topic in the report we have described why these issues are important (or of concern), and to whom, and we have also provided boundary coding by material aspect in the G4 Content Index located at the end of this report.
We place a high priority on the quality control of our management and data collection systems to accurately benchmark and report our sustainability performance, while maintaining the trust of our reading audience and key stakeholder groups.
At present, our sustainability reports are prepared by management, with the assistance of independent sustainability consultants. Our sustainability reports are reviewed by our Board for internal data verification and quality control, and to ensure our material issues are appropriately represented and thoroughly covered. The Board also ensures the reports’ contents are integrated with those governance protocols, procedures, and practices that guide Endeavour’s sustainability performance. We continue to consider independent assurance as an additional layer of verification and to further increase our transparency.
The Company reports non-IFRS measures which include cash costs net of by-products on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce and direct production costs per tonne, in order to manage and evaluate operating performance at each of the Company’s mines. These measures, some established by industry organizations, are widely used in the silver mining industry as a benchmark for performance, but do not have a standardized meaning. These measures are reported on and reconciled in the Company’s MD&A.
Certain financial figures contained within the report were audited, however it should be noted that non-financial performance figures and certain financial figures (indicated) are unaudited.