Industry associations

Industry association memberships provide benefits to South32, including:

• Collaboration, within regulatory requirements, on issues impacting the sectors we operate in;
• Engagement with government, regulators and other stakeholder groups;
• Involvement in development and implementation of industry policy and standards such as safety, health, environment, tailings management and tax;
• Access to appropriate information, knowledge and support on policy, strategic and tactical issues that supports decision-making;
• Opportunities, within regulatory requirements, to network, exchange international best practice and discuss issues; and
• Contribution to industry leadership and development.
  

We have procedures in place to guide membership of industry associations. This includes:

• A valid business case is required that demonstrates consistency with our principles for participation;
• External Affairs and accountable leaders approve memberships based on information presented in the business case. Approval levels vary based on the size, location and scope of membership, and are outlined in our internal procedure;
• The business case must demonstrate that the industry association’s purpose and policy positions are materially aligned with our strategy and values;
• An internal current register of memberships is maintained with associated fees paid;
• Our membership register and any public issues associated with those memberships are reported regularly to our senior leaders; and
• When membership renewals are due, the original business case for joining is validated before renewal is undertaken.
  

We have procedures in place to guide membership of industry associations. This includes:

• A valid business case is required that demonstrates consistency with our principles for participation;
• External Affairs and accountable leaders approve memberships based on information presented in the business case. Approval levels vary based on the size, location and scope of membership, and are outlined in our internal procedure;
• The business case must demonstrate that the industry association’s purpose and policy positions are materially aligned with our  strategy and values;
• An internal current register of memberships is maintained with associated fees paid;
• Our membership register and any public issues associated with those memberships are reported regularly to our senior leaders; and
• When membership renewals are due, the original business case for joining is validated before renewal is undertaken.

Industry associations are by nature representative of similar member interests, but often from varied backgrounds and perspectives, so consensus on all issues is not possible. We support, and believe in, healthy debate and consideration of other viewpoints. We believe this leads to better understanding, cohesion and beneficial outcomes for members and industry.

As a member of an industry association, we retain the right to represent and advocate our own views. If a material policy difference or other misalignment exists within an industry association, we will take the following actions we consider appropriate:

• Inform the association’s leadership, explain our position and seek clarity on their position;
• Explore opportunities for alignment;
• If alignment is not possible, inform the industry association that we will advocate an alternative view; and
• Where the misalignment is material and outweighs the benefits of belonging, South32 will terminate its membership.

Since 2019, we have undertaken an annual review of our member industry associations’ positions on climate change to evaluate alignment with our own positions, strategy and values. Any potential misalignment is managed consistent with Our Approach to Industry Associations, including the circumstances under which we are prepared to cease our membership.

As for FY23, we engaged an external consultant to support our FY24 review, providing continued depth of analysis and impartiality. Building on the process implemented in FY23, the review:

• Focused on a subset of our industry associations relevant to climate change advocacy;
• Evaluated our industry association memberships in the context of our approach to addressing climate change and our climate change positions, with activity reviewed against set criteria to define potential areas of misalignment;
• Considered a range of public documentation, including traditional and social media, speeches, submissions, website content and public statements, with a focus on activity during FY24;
• Was supplemented by our regular industry association engagement and participation activities throughout the year via committees, working groups and other membership initiatives; and
• Considered other pertinent supporting information such as analysis and reporting of industry association advocacy by InfluenceMap, an independent body which maps climate policy engagement of industry associations and companies.

Summary of alignment with industry associations - FY24

The FY24 review found that the positions and advocacy on climate change of most of the industry associations reviewed align with our climate change positions, strategy and values. While inconsistencies were identified in some cases, no findings were determined that would trigger a review of ongoing membership.

These inconsistencies will be raised with the respective associations per the process outlined in Our Approach to Industry Associations, informing our ongoing engagement and discussion.

In FY25, we will continue our practice of regular monitoring and engagement to sustain alignment, raise any concerns as appropriate and consider our ongoing participation as outlined in Our Approach to Industry Associations.

Previous alignment reviews:

Summary of alignment with industry associations - FY23

We consider the merits of seeking individual appointment or election to industry association boards or executive committees. These positions provide an additional avenue to derive membership benefits as highlighted.

Outside of director responsibilities applying to individual appointments, holding a board or executive committee position in an industry association does not imply a different South32 approach to that of being an ordinary member.

We maintain a register of industry association memberships and associated fees paid. Our material industry association memberships and associated fees are listed at the end of this page.

We undertake a comparison of material policy positions of industry associations of which we are a member to our own position on specific topics (e.g. climate change), which can be found in our Sustainable Development Report.

We regularly review and update our Approach to Industry Associations to reflect stakeholder feedback and industry developments.