People
GRI 103-2, 103-3

Intelligence, enthusiasm and courage are the attributes of the Nexa brand that drive us to think, act and do things differently, aiming to sustain our strategy of improving performance and maintaining our competitiveness.

We manage people according to three strategic focal points conducted by the Human and Organizational Development (HOD) area: maintaining an inspiring leadership, capable of effective talent management; building and ensuring critical capabilities for the organization; and contributing to increase productivity and the company’s competitiveness.

Cultural change was the main focus of our operations in 2019. We expanded our internal program, called The Nexa Way, with actions aimed at reinforcing aspects of courage, enthusiasm and intelligence to introduce more agility, autonomy and flexibility. To implement it, we created a transformation office with a manager responsible for the program’s planning and execution, and 19 work fronts were set up. The status of each initiative is shared by the leaders of each front and the transformation manager reports them to the executive board.

Emblematical results regarding value creation for the company were already seen in 2019. This included cutting the number of approval levels, giving managers greater autonomy; the adoption of some practices focused on sustainability in the offices; reduced red tape, based on a review of the procurement flows; and elimination of some hierarchical symbols, bringing executive officers and general managers into closer contact with their teams.

Organizational health

We developed an initial organizational health survey designed to support the program, which measured employee satisfaction and motivation and also served as a checkup of our alignment with the best market practices. The first survey took place in January 2019 and delivered the necessary inputs to determine the program’s guidelines.

Forty-one initiatives were established, involving four main themes – leadership, reward and recognition, new ways of working, environment and diversity – to support this cultural transformation in the organization. Over the course of 2019, two project phases were planned and implemented. They contained 13 initiatives, including those that helped build the ten desirable behaviors in the organization, such as the plurality program, recognition actions, a leadership development program and a new performance evaluation initiative, among others.

In November, a new organizational health survey round was conducted, leading to a three percentage point increase in relation to the survey carried out in March of the same year. Our score of 76 was above the market average (73), with the most prominent attributes being innovation and training, motivation and external guidance.

Behaviors that transform our culture

Employee profile

The nature of our operations makes us have a workforce largely formed by outsourced labor, especially in Peru. We ended 2019 with 5,760 own employees, of which 3,310 were allocated in Brazil, 2,427 in Peru and 23 in other countries, in addition to 11,470 outsourced employees. Of the total number of employees, 65% belonged to the 30-50 age group and performed operational functions. In addition, the proportion of women was 13.1%. GRI 102-8

Total employees 15 GRI 102-8

15 The number of intern and apprentice are not considered

Employees by age group GRI 405-1

Employess by functional category GRI 405-1

Plurality

At Nexa, we are creating an increasingly pluralist environment that encourages inclusion and diversity. We understand that to be pluralist is to recognize and value people and their differences. Because we believe in being socially fair to the important social groups in society who nevertheless are under-represented in the business hierarchy, in 2019 we expanded the concept of diversity and started to address other inclusion issues that go beyond gender and people with disabilities. We foster a diversity of opinions and thoughts, because the more diverse and more integrated our differences, the greater our potential to transform and innovate.

To be pluralistic is to represent and be represented by different social groups in all our organization’s areas and positions; it is to coexist with a multiplicity of ideas, origins, races, ethnicities, genders, orientations, identities; and make this coexistence intrinsic to our culture, our way of thinking, creating and working. It means breaking with the barriers in our sector, doing it our way to make a difference.

We have an active Diversity Committee – with several activity levels: Strategic Committee, Corporate Committee and nine Local Committees – which coordinates the implementation of various actions aimed at uniformly and consistently promoting diversity throughout all our units.

The committee’s main function is to foster initiatives and support the efforts to meet specific goals in relation to different diversity issues. One of the first goals is to have 20% of women employed in the organization, a significant percentage when considering the traditional characteristic of the mineral sector, of being made up mainly of men. In 2019, we reached 13.8% of women in our workforce, advancing 1.4 percentage points. At the new unit in Aripuanã, we will already start up activities with 51% of women in the labor force, which will underscore Nexa as having one of the first mining operations in the world with a massive presence of women.

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

Employees from Cerro Lindo

Personnel management challenges

In Aripuanã, we followed our strategic plan for hiring employees, seeking and qualifying local labor, with short and medium-term courses, offered in partnership with Senai/MT. In addition, the HOD area is working on identifying local infrastructure needs, such as building homes, expanding hospitals, improving or building schools, in order to attract employees hired from outside the region and contribute to local development.

We did not register any strikes in our units that lasted for more than seven days during the year, which demonstrates our ability to establish an open dialogue with employees and labor unions. GRI MM4

Qualification and training
GRI 103-2, 103-3, 404-2 SDG 4.4

We seek to maintain an inspiring, safe, diverse and challenging environment that encourages employees to share ideas and experiences and to evolve individually and professionally. We offer training and competency programs and encourage employees to talk to their managers about the skills and attributes to be developed for their evolution in the company. It is a personnel management model that encourages open dialogue, transparency and career development possibilities, strengthening our strategies and stimulating professional growth. This is how we build a company that attracts and retains talent. GRI 404-3

During the year we offered more than 153 thousand training and qualification hours to our employees in Brazil and Peru, with an average of 31 hours per employee and investments of more than US$ 1.9 million, maintaining almost the same proportion that had been invested in 2017 for this purpose.

To develop a strategic focus, our Master Plan contains 11 critical capabilities that ensure business continuity. In 2018, the maturity level of each of them was assessed. We identified that for the five prioritized in the last two years – talent management, operational excellence, mineral exploration, capital sources and project execution – at least 75% had achieved maturity. As a next step, we will update the Master Plan to develop new, ongoing capabilities in the organization.

In addition to the constant development of the leadership, we offer our teams technical training. The following programs are notable:

Mining Development – A structured project to create more integrated spaces and processes, with a focus on the continuous development of personnel working in mining, through knowledge sharing. One of the initiatives within this program is the Short-Term Assignment (STA), a temporary, short-term mobility process designed to promote individual development, transfer knowledge and an exchange of best practices between units and countries. In 2019, eight employees participated in this program, operating for a period of five months to one year.

Average hours by gender of training per employee GRI 404-1

Mining Experts – Its main objective is to provide technical and specific knowledge to bolster operational performance. In March 2019, the key competences for the development of mining in Brazil and Peru were defined and job positions were created to attract market professionals. The program also provided an opportunity for employees who already were on Nexa’s staff. The 13 selected for the project participated in a moment of integration, between July 8-12, during which they discussed the challenges of the organization, got to know the Cerro Lindo unit and interacted with local leaders, promoting an exchange of cultures. They currently are undergoing development training to ensure they have appropriate technical knowledge and aligned leadership profiles.

The Nexa Way Experience – The pilot project, implemented in 2018, brought to employees the possibility of participating in a challenge focused on combating unnecessary red-tape, working in a different format through an autonomous, self-managing group based on the agile methodologies concepts. Seven individuals were selected out of 28 applicants to continue the project. A second round of the challenge was launched to address the issues of simplification in the São Paulo office (25 applications), Brazil-Peru integration, in Lima (30 applications) and innovation, in Cerro Lindo (19 applications). The projects proposed in the second round will be analyzed in 2020.

bg-29

Employees from Juiz de Fora

Cultivating Leaders – We have continued globally with the leadership development program, which aims to reinforce cultural transformation and train executives as leaders. Since the beginning of the program, more than 700 leaders have been trained in Brazil, Peru and Luxembourg. During the year, topics such as new ways of working, empathy and the 10 Nexa Way behaviors were presented.

Ability to Execute (A2E) – In 2019, all of Nexa’s operational and leadership audiences underwent Nexa Way training, supported by the A2E concept. The sessions were supported by an internationally renowned consulting firm, designed to develop 15 skills that can help to speed up the transformation process. The training was multiplied for our internal public, which made it possible to maintain knowledge in the company.

Employees from Três Marias

Material Topic
Safety and health
GRI 103-2, 103-3 SDG 16.1

Employee from Três Marias

Safety

For us, safety comes first. This topic, in addition to being one of the most important for the company, is the main driver of our culture. Our policies, programs and tools are built and implemented to promote an environment that preserves the physical integrity of all of our own employees and third parties, so that they return safely to their homes, families and loved ones. We want to influence this and the next generations to consolidate a mining sector based on safety and the preservation of life. SDG 8.8

We care for the health and safety of our employees and treat this issue as a priority within our organization. For this reason, in 2019 we promoted the full integration of these areas. They have started to act together, based on a more comprehensive point of view, to ensure everyone’s physical integrity in a healthy environment, designed for achieving collective well-being.

We followed up on our safety goals, which consist of eliminating fatalities, reducing the severity and number of accidents and raising the safety culture standards in all our units, especially in Peru, where we concluded a program specifically structured for this purpose.

In all weekly meetings of the Board of Executive Officers and in the scheduled meetings of managers with their teams, safety aspects are given priority. The topic is also part of the Board of Directors’ meetings, with quarterly assessment of the indicators and planning for the following quarter.

We maintain the Daily Safety Dialogues (DSDs) to assist employees in their perception of the risks in their workplace environment, as well as managerial inspections in operational areas, along with other safety management tools. The risks of the activities are surveyed and control measures are implemented. These may include engineering (such as the need to install physical barriers), procedures (written standards, work rules that guarantee safety) or be related to personal or collective protection equipment. For outsourced employees, the survey is conducted in conjunction with the leadership and the outsourced company’s safety team. GRI 403-1, 403-2

Performance Indicators

When comparing our accident frequency rate with and without lost time to that of the industry, we came in below the first quartile, maintaining the goal of being among the companies that present the best indicators. Even so, we are still falling short of our internal expectations and are working hard to improve our performance in this field.

Two years ago, we established an internal indicator, the Nexa Internal Rate (TIN), to measure our safety effectiveness. TIN merges the variable remuneration of the operational and corporate managers with those of the professionals who work in the units. In addition, in the case of fatalities, sanctions are applied to the executives in the form of reduction in points needed to meet the annual goal.

The Frequency Rate with and without lost time (TFCSA) in 2019 was 2.15, computing accidents of own employees and third parties, representing an improvement over 2.23 as registered in 2018. The Severity Rate (TG) was 148.8, mainly affected by the fatal accident in Peru, which occurred at the Cerro Lindo unit.

Accident frequency rate GRI 403-9

Safety initiatives GRI 403-5 SDG 16.1

We have adopted 12 initiatives, called Golden Rules, to ensure the safety of our own and outsourced employees. These are based on critical risk standards and other safety management tools the company has implemented, such as the use of seat belts, restrictions on the use of cell phones and a ban on working under the influence of alcohol or drugs. Failure to comply with any rule may lead to a warning, suspension or even termination. The identification of non-compliance with a rule goes through a structured process, with evidence gathering, evaluation and, if deemed applicable, a penalty.

For 2020, our Sustainability Master Plan foresees health and safety initiatives for the transformation of culture and behavior, to improve our infrastructure for routine activities and for the management of the area. They were segmented into Crucially Important Goals (MCIs), which were broken down into 18 projects to be developed over the next five years.

The main initiatives in 2019 were as follows:

Peru Safety Plan

Created in 2017, this program has the objective of eliminating all fatalities, reducing the number and severity of accidents and enhancing the safety culture in the units around the country. Over two and a half years, 244 initiatives were developed in 30 projects, based on the eight pillars defined for the Peruvian Security Plan to support risk mitigation (Leadership training and awareness raising; Strengthening the health and occupational safety structure; Implementation of the Third Party Management Program; Improvement of wellness conditions and work regime in the units; Standardization of processes and procedures and improvement of emergency plans in mining units in Peru; Team training and awareness raising; Synergy with Digital Mining actions, focusing on Safety; Master Plan for Industrial Automation (Plano Diretor de Automação Industrial – PDAI).

At the end of 2019, we ended the cycle of mapped activities and conducted a critical analysis of the final result, concluding that the objectives had been achieved. A few unfinished actions, for exceeding the scope of this plan, were incorporated into the Sustainability Master Plan, ensuring continuity. Our effort to improve the safety of operations in that country was recognized by the Peruvian Mining Safety Institute (Instituto de Seguridad Minera – Isem), which recognized the Atacocha unit for the lowest accident rate and absence of fatal accidents in the Underground Mining category in the last 12 months of operations.

3rd Mining Safety Seminar

For the third consecutive year, we held the Mining Safety Seminar at our Vazante unit, as part of the effort to bring together the largest mining companies in the country to debate work safety issues. Based on our goal to strengthen the safety culture in all units and to be a benchmark company in this regard, the event features panels for the exchange of experiences and the sharing of knowledge and practices related to the topic. In 2019, some 400 participants from 91 companies attended, with 21 hours of discussions held.

Safe Behavior Program

It involves efforts to raise the awareness and behavior of people in the workplace, creating a mutual assistance observation network and continuous feedback about observed behavior, encouraging safe practices, identifying risky conduct and promoting required corrections. This is a program that values dialogue, getting closer to people, critical analysis and delving deeper into the causes of behavioral deviations. In 2019, our efforts were aimed at leveraging the Safe Behavior Program in Peru’s units by training experts, coaches and observers. It also involved implementing Executive Committees and establishment of a Steering Committee in that country.

Strengthening Alliances

The program was born at the Três Marias Unit in 2018, the result of the need to develop a tool to hold the alliance between leaders and team members in high regard and reaffirm each person’s genuine commitment to life. On an individual approach basis, leaders record the observed behavior. The information is used as part of a structured dialogue between the leader and team members, in which agreements and commitments are established to create and strengthen genuine alliances between people. The data also is used in the employee assessment cycle. For their part, the Daily Safety Dialogues are used to develop leadership qualities and share knowledge. At the Três Marias unit, in 2019 supervisors monitored 3,694 critical activities and made 4,275 safety approaches. 779 risk perception workshops were also held. In 2020, the program will be introduced and implemented in other units.

More HSE Talent

Begun in 2018, this initiative seeks to attract, develop and retain health, safety and environmental professionals who have the potential to assume leadership positions in these issues and, thus, facilitate the succession process in the company’s main areas. The program is designed to speed up education and training, with each participant given both an individual and a collective project to develop and implement. Professionals are regularly monitored by a local or corporate mentor, who supports their development process. In 2019, the program’s six participants completed the job rotation stage, being transferred to other work areas in different functions to understand their distinct dynamics and become prepared for future challenges.

Outsourced employees safety GRI 403-7

The safety topic is observed with the same rigor and importance for both own and outsourced employees. Therefore, we strive for everyone to be given access to the same information and the same training. Hence, we continue to implement actions ranging from the selection and contracting of the strategic partners through to the training of operating professionals and the leadership group for these companies, risk management in the activities, consequences management and the recognition process for companies and professionals that best meet our standards.

This concern is even stronger in our Peruvian units, where 75% of the labor force is made up of outsourced employees. At the same time as this becomes a challenge, we have a strong sense of leadership and great respect for Peruvian culture, which contributed to the success of the training and qualification of leaders in the mining units.

In 2019, we launched the 100% Safe campaign to raise the awareness of employees of partner companies about safe behavior, encouraging reflection on the actions of each person in routine tasks. The motto of the campaign called on outsourced employees to make this reflection, as well as to act in accordance with The Nexa Way: “Stop and think about the consequences of your attitudes. Do it with courage, enthusiasm and intelligence.” The initiative featured several actions, such moments of group conversation in internal and outside work locations and a blitz event in the community.

Employee from Três Marias

Material Topic
Safety and health
GRI 103-2, 103-3 SDG 3.4, 3.5, 3.9, 8.8, 16.7

Employees from Morro Agudo

Occupational health

We want to be recognized as an organization that values health and quality of life at work through disease prevention actions and promotion of health, wellness and quality of life. And we carry out these activities through efficient management of health risks, encouraging healthy lifestyle habits in an organizational climate favorable to creativity, attraction and retention of talents. In addition, of course, to being committed to maintaining an environment in which own and outsourced employees can carry out their professional activities with quality and balance in the various aspects of their lives.

In 2019, we continued the Live Better Program that had been established in 2017, based on six pillars: physical, psychological, environmental, interpersonal relationships, independence and spirituality. Its premise is for balance and education in health, well-being and quality of life, the formation of a knowledge base and expansion of the perception for decision making and lifestyle choices. It covers 100% of Nexa’s units, with corporate actions and initiatives from each unit, according to the local reality and the risks related to the lifestyles of employees and their families. In 2019, 88% of our units implemented actions related to health and well-being in local communities. GRI 403-6 SDG 3.4

During the year, actions related to the Habitability Plan at the Pasco and Cerro Lindo complexes were particularly notable. Toward this end, we continued programs that had been initiated in 2018, allocating US$ 8.3 million to investments for the expansion and construction of new accommodations. In addition to the adjustments, there were gains in several dimensions, including adapting the plants to the needs of a larger population of women in line with the goal of hiring women for mining operations in Brazil and Peru. The plan foresees the completion of all ongoing actions by September 2020.

Shared Management

Within our Health and Safety Master Plan, we continue to diagnose occupational risks and apply the early diagnosis protocol for occupational diseases. This is our shared management model for Occupational Hygiene and Health, a program that aims to mitigate risks, sharing knowledge and responsibilities with preventive methods and practices with all employees.

The program is managed by the Corporate Quality of Life Committee, composed of representatives of Health and Safety, HOD and Corporate Communication, as well as representatives of the units, defined by each local committee. The corporate committee defines the guidelines and actions that must be implemented in all units. For their part, the local quality of life committees are responsible for implementing corporate and local actions pursuant to the demands of each unit. GRI 403-3, 403-4 SDG 16.7

We reached 42% of our goal to implement, by 2025, health promotion actions in 50% of the local communities where Nexa has operations. Actions benefitted communities near the units of Aripuanã (Community Health Agents Program): Juiz de Fora (health education for the Igrejinha community), Três Marias (global action); El Porvenir (service in the community of San Juan de Milpo): Morro Agudo (emergency care for the community near the unit): and at the São Paulo and Vazante administrative offices (blood donations).

Global Emergency and Disaster Response Plan

In 2019, in all operating units, with support from internationally renowned consultants, we verified our emergency response conditions at all operating units in Brazil and Peru. The consultants helped survey the strengths and weaknesses of our process. All the identified improvement possibilities are being managed, including the acquisition of fire prevention and fighting equipment, upgrading of the infrastructure to attend medical emergencies, training and capacity building of emergency first responders and continuation of hiring specialized emergency services for our facilities.

The Emergency Response Plan (PAEs) were delivered, with management training and simulated exercise (Table Top) of all units in Peru and part of the units in Brazil with the exception of Aripuanã and Juiz de Fora, which the plan is under development. A Global Emergency Response Plan should be implemented in 2020, to align the actions of the individual unit plans with the corporate Crisis and Business Continuity Management Plan.

GO NEXA

In 2019, we implemented a challenge to encourage behavioral change and the practice of physical activities, called Go Nexa. Some 1,900 people enrolled in the program. They all filled out a form to help set up teams with varied and heterogeneous profiles. Among the 1,037 effective participants, 48% had not practiced physical activities before the challenge. The teams went through a qualifying phase and weekly rounds of internal competitions.

At the end of the year, during the awards event, the three winning teams were recognized for their efforts. An outcome of this activity is our encouragement of physical exercises and the reduction of health risks for our employees. In addition, Nexa’s overall health index rose by 14% in three months, from 6.4 to 7.4.