Material topic
People
GRI 103-2, 103-3 SDG 5.1, 5.5, 5. C, 8.5, 10.2

Diversity

15 As of 2018, we began to consider Nexa Resources S.A. (Luxembourg) and Votorantim US, Inc. (U.S.) in the calculation of the target.

Since 2015, when the percentage of female employees was 9.3%, our focus has been on maintaining an active Diversity Committee, encouraging the increase of this percentage through initiatives in which the entire company participates.

The governance of the Committee, revised in 2018, was even more robust, featuring the Strategic Committee, the Corporate Committee and nine Local Committees, whose purpose is to coordinate the implementation of a number of actions aimed at uniformly and constantly promoting diversity in all our units.

The main function of the committee is to foster initiatives and support the achievement of specific goals for different diversity issues, such as reaching 20% of women in the workforce by 2025. We want to create a diverse environment of harmonious coexistence that is a reflection of society. For instance, we hope that our organization will have a representative number of women, people of different ethnicities and employees with disabilities.

Female inclusion is a very important issue for us, given that the mining sector is mainly led by men. Our mission is to contribute to change this reality. We are promoting women’s participation in both leadership and operational roles, raising the awareness of their talent and ensuring that leaders consistently demonstrate that diversity and gender equality are essential elements in strengthening a company.

We have achieved this by employing women in positions considered “unconventional” for the gender, which promotes a more wide-ranging and inclusive vision in the teams.

We have also recorded advances in the inclusion of people with disabilities, leading an electronic learning group for young people with intellectual disabilities in partnership with the Industrial Learning Service (Senai) and the Association of Parents and Friends of the Disabled (Apae), at the Morro Agudo Unit. The program offers professional training of persons with disabilities, guaranteeing autonomy, protagonism and their inclusion in the labor market. It is based upon a unique methodology and courses are lively, featuring practical exercises and memorization activities. Some 26 students were trained during the year. SDG 4.5

Organizational climate survey

As a result of initiatives to strengthen an environment where everyone can develop their potential fully and without barriers, we received an excellent score in the biennial climate survey. With 93% employee participation, our favorability index rose from 72% in the last survey to 77% in the current edition. This places us again within the top first quartile of our industry, even though it was a period of transition, in which we went through a process of integration between the companies and the consolidation of the IPO.

The leadership and development item had the highest favorability rate, which shows that we are moving in the right direction to develop and retain our staff talents.

The good relations with employees also was recognized externally. Our company was chosen in two of the nine categories in the Good Labor Practices competition organized by the Ministry of Labor and Employment Promotion in Peru. It ranked second in the “Promotion of equal opportunities for men and women” category, with its Diversity Committee case study and for the “Promotion of organized work with local suppliers of Peru,” through its Communal Companies Management project.

Recognition program (Programa de reconhecimento)

Designed to increasingly improve the value of the engagement and participation of our employees and third parties, we now recognize the best initiatives developed on four fronts: Health and Safety, Environment, Operational Excellence and Social Responsibility. In 2018, there were over 200 initiatives registered in the Program, with 12 chosen to participate in the final stage, three in each category.

The four most innovative initiatives were recognized.

In the category of Safety and Health, the winner was the “Perception of Risk – Strengthening the Commitment to Life” project from Três Marias, which proposes actions to establish a strong and genuine culture focused on accident prevention, caring for people and commitment to life.

In Social Responsibility, the highlight was “Alternative Cultivation” from Cajamarquilla, a pilot project to produce vegetables rich in nutritional content in recycled PET bottles, using a hydroponics technique, with the aim of enriching the local community’s nutrition and fighting anemia.

In the Environment, Cerro Lindo won with the “Plastic Waste” project, which creates an environmental culture involving employees and communities promoting plastic waste recycling.

In the Operational Excellence category, the winner was the “Quality as Value” project from Juiz de Fora. This comprises actions aimed at ensuring the satisfaction of internal and external market clients and rework reductions.

The top committees in the year were also chosen – Lima Corporate and the Três Marias Unit – based on an evaluation that took into account the mix of actions and the coefficient of hours dedicated to voluntary actions, as well as the planning and recurrence of actions and the level of engagement of the unit. The volunteers who inspired each unit were chosen for their dedication and work and encouragement of the collective spirit. (Other results from the We Are Everyone volunteer program can be found in the Local Development).

Global Integration Plan (Integra Program)

Created to ensure that we are a strong mining company and an international benchmark, the program reinforces a global perspective in which local values are respected in the quest for a high performance culture. The plan was structured and put into practice with actions and projects in four pillars: Structure, People, Processes and Systems, designed to absorb the best practices in each country and to strengthen the concept of a unique and global company. Ten action fronts were developed, with priorities being Health and Safety, Talent Management, Organizational Structure, Standardization of Practices and Communication Management.

We maintained an integration group coordinated by the Management and HR areas, supported by the focal points in each department, which act as the multipliers for each area. The project’s main target is to build an integrated company based on its unique vision and governance, where everyone feels they are part of the same family unit regardless of which unit to which they are assigned, where they all uphold the same standards whenever possible and develop custom-made processes when necessary.

In 2018, we conducted important actions on each of the work fronts, which contributed to the integration of macro-processes and communication, now reinforced through application of a single visual language across the company. As a result, we completed 90% of the actions contemplated in the Integration Plan.

One of the highlights was the implementation of the Program for the Prevention of Fatalities and Contract Cells (Programa de Prevenção de Fatalidades e das Células de Contrato), improving workplace safety aspects, an irreversible subject regarding our operations. We have also, with regard to personnel management, been able to equalize recruitment and selection practices at all levels, to have a global coverage of the talent development programs, in addition to the global standardization of the internal communication model. The installation of virtual rooms and the improvement of internet performance in the units facilitated information exchanges. And to maximize the swapping of experiences and adoption of best practices, we continued to run exchange programs, with a total of 60 employees participating over two years.

INTEGRATION – MAIN ACTIONS IN 2018

Safety Plan

Implementation of the Program for the Prevention of Fatalities and the Contract Cells
Improvements in food, water, dormitory and sanitary services
Training of outsourced workers through risk perception modules

Dissemination of the strategy

Strengthening the communication of Nexa’s Strategy for all audiences
Inclusion of the strategy theme in the institutional video

Formalization of practices

Standardizing of Procurement and Logistics, Engineering, Mineral Exploitation, Technology, Financial, Legal, Commercial, Information Technology policies and procedures
Integration of the access profiles and equalization of the approvals website
Mining and Smelter Topic teams

Wage and benefits

Review of remuneration and benefits strategy
Equalization of benefits practices in Nexa’s various countries according to the local market

Information and communication

Implementation of virtual rooms facilitating communication between units
Improving internet performance in the Peru and Luxembourg units

Communication Management

Reformulation and creation of communication channels
Implementation of the brand in the units
Strengthening Culture and Histories
Dialogue with the CEO Events
Integra Newsletter

Organizational structure

Integration of the corporate organizational structures
Diagnosis of the GS structure (Salary Group) of the corporate areas
Strong IT Project: SAP Structure Diagnosis and Adjustment Proposal

Values and Beliefs

Strengthening Nexa’s beliefs and culture
Global Votorantim Development System (VDS)
Cross Culture Program
Employee participation in the Cultivating Leaderships Program

Talent Management

Redefining the system for the Recruitment and Selection Process and mobility programs
Integration of career path processes

Governance

Review and integration of the Committees – Remuneration, Audit, Finance – and policy making

Personnel management challenges

Among the challenges faced in the year was the implementation of a fourth work shift in Vazante, designed to boost mine productivity. To meet this demand, it was necessary to hire 56 employees and train them in a short period of time so that they were able to assume their job duties. That done, we were able to raise the production time in the mine from 15.2 to 19.2 hours per day.

Once the Aripuanã implementation license is obtained, the personnel management area also is tasked with guaranteeing the readiness of the workforce for the start of the operation, scheduled for 2021. To do so, we prepared a strategic plan to define how many new employees can be hired locally, how many need to be brought in from other regions, what training will be offered and what will be the timetable. We also are working toward offering better infrastructure, such as living conditions, education and hospital care, among others.

In addition, in Peru, there were two strikes: one lasting five days in March in Cajamarquilla; and another for seven days in November, in Cerro Lindo. Both were considered unfounded by the local labor authority and had no impact on production. In El Porvenir, there were smaller work stoppage actions, of four days in January and two days in September. Both were also considered groundless and did not impact production.