Fair Pay & Worker Respect
30
Mining is a high-risk industry for worker safety and labor rights, but the core business model does not inherently advance or harm fair pay and worker respect; performance in this area is determined by operational policies and labor practices rather than the extraction of minerals itself. Pan American Silver (PAAS) demonstrates strong performance in labor relations and retention, though it faces significant challenges in operational safety. **Collective Bargaining & Labor Relations:** The company reports high unionization rates, with 66% to 70% of the workforce covered by collective bargaining agreements across almost all operations (except Timmins, Canada).
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While a 14-day strike occurred at the Shahuindo mine in 2025, the high coverage and active bargaining processes place it in a high tier for this KPI.
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**Safety Incident Rate:** This is the company's weakest area. Despite implementing 'Doing Safety Differently' programs, PAAS recorded two fatalities in 2024 and two more in 2025.
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While the Lost Time Injury Frequency (LTIF) is relatively low (0.50 to 0.63 per million hours), the rubric's strict criteria for multiple annual fatalities (>3 over two years) and high severity rates (LTIS of 321-382) result in a score of -70.
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**Worker Engagement & Turnover:** The company achieved an engagement score of 87/100 in its 2025 'Great Place to Work' survey (71% participation).
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Retention is exceptional; voluntary turnover was reported at 3.4% in 2024 and 3.8% in 2025, placing it in the top tier for workforce stability.
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**Labor Violations:** PAAS maintains a clean record regarding major labor rights. Reports for 2024 and 2025 confirm zero instances of child or forced labor in operations or the supply chain.
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While individual labor claims exist in South America (typical for the sector), no significant human rights or labor-law violations were substantiated through their grievance mechanisms or external audits.
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Fair Trade & Ethical Sourcing
-20
As a large-scale mining company operating in jurisdictions with varying regulatory oversight, the company faces inherent risks regarding human rights, supply chain transparency, and potential exploitation in its extraction processes. While it is not a 'negative pole' industry like weapons or tobacco, the extractive sector is historically associated with significant challenges in ensuring ethical sourcing and preventing labor abuses in complex, multi-national supply chains. Pan American Silver (PAAS) demonstrates strong performance in local community investment and labor rights, though supply chain mapping and formal ethical contracting are still in scaling phases.
- **Supplier Diversity Spend (Tier 80):** In 2024, the company directed 37% of its procurement budget ($527.9 million) to local or regional suppliers, exceeding the highest rubric threshold for community-based sourcing.
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- **Forced/Child Labour Incidents (Tier 30):** The company reported zero substantiated instances of forced or child labor in its operations or supply chain for at least the past five years (specifically cited for 2024 and 2025).
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It utilizes the TSM 'Prevention of Child and Forced Labour Protocol' and UNICEF checklists across all sites.
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- **Audit Frequency (Tier -80):** Sustainability, safety, and environmental audits are conducted at operations at least once every three years.
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While security reviews occur more frequently (every four months for providers), the general operational audit cycle aligns with the 3–4 year tier.
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- **Traceability Coverage (Tier -70):** The company primarily processes its own ore, limiting upstream risk.
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However, for its broader supply chain, it screened 264 critical suppliers in 2024 and 529 in 2025.
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With a total supplier base of 8,348, this represents approximately 6.3% of the total chain, though it covers 34% of identified 'critical' suppliers.
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This aligns closest with the ~20% mapping tier given the focus on critical segments.
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- **Ethical Clause Coverage (Tier -70):** While PAAS 'seeks' to include its Supplier Code of Conduct in all contracts, as of December 2025, only 20.4% of the total supplier base (1,705 of 8,348) had been formally screened and onboarded through the GAN Integrity platform where these commitments are explicitly acknowledged.
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Honest & Fair Business
10
Mining is a highly regulated industry requiring extensive transparency and legal compliance, but the core business of extraction does not inherently advance or harm honest business practices; performance is determined by behavioral conduct and regulatory history. Pan American Silver (PAAS) demonstrates a robust commitment to business ethics, though it is tempered by significant tax-related settlements. **Regulatory & Financial Integrity:** The company paid $45.9 million to the Mexican tax authorities (SAT) in 2024 to resolve disputed income tax filings from 2016–2022, and an additional $6.3 million for Argentine tax amendments.
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These settlements total over $50 million, placing the company in the -50 tier for regulatory fines.
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Financial restatements occurred in 2024 and 2025, primarily involving retrospective adjustments to the Yamana Gold acquisition and recalculations of GHG/energy data due to improved methodologies.
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**Governance & Transparency:** PAAS maintains high standards of board independence, with 91% of directors (10 of 11) reported as independent in 2024.
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The company publishes annual ESG reports verified by third parties (Apex Companies, Deloitte) and aligns with GRI, SASB, and TCFD standards, earning a top 15% ranking in the S&P Global Sustainability Yearbook.
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**Ethics & Compliance:** The company operates a 24/7 whistleblower hotline managed by an independent provider.
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In 2024, it resolved 91% of complaints by Q1 2025, and in 2025, it achieved a 100% implementation rate for corrective actions.
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Anti-corruption efforts are supported by a Global Anti-Corruption Policy and mandatory annual certifications for 100% of officers and directors.
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**Stakeholder Relations:** PAAS shows efficient grievance management, resolving 98% of medium/high-risk community grievances within a 60-day target, with an average closure time of 31 days.
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ESG controversy scores are favorable, with an MSCI 'A' rating and a 'Medium Risk' (25) rating from Sustainalytics.
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Kind to Animals
-30
Large-scale mining operations inherently involve significant land disturbance, habitat destruction, and fragmentation, which directly threaten local wildlife populations and biodiversity. Pan American Silver (PAAS) is a mining company whose primary interactions with the 'Kind to Animals' value occur through habitat management and community-based livestock programs. Regarding wildlife_conservation_impact, the company is scored at -50.
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While it has documented strategic conservation outcomes for specific species—notably the protection of wild cats (Yaguarundis, Ocelots, and Tigrillos) at its Escobal operation in Guatemala and the management of 126-136 hectares of preserved habitat—the core nature of large-scale mining involves significant land disturbance.
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Although the company rehabilitated 62-76 hectares in recent years, these efforts are framed as mitigation for the inherent habitat degradation caused by mining operations.
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For animal_agriculture_ethics, the company is scored at -70.
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Evidence shows the company actively manages or funds livestock programs as part of its social and economic development initiatives.
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These include a long-standing llama breeding program in Bolivia (over 15 years) and a livestock development project in Mexico involving genetic improvement and meat processing.
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While these programs support local livelihoods, there is no evidence of specific humane certifications, enrichment protocols, or advanced welfare standards (such as cage-free or pasture-raised certifications) for these animals, suggesting they follow standard industry practices.
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KPIs related to animal testing (policy, volume, and alternative usage) are scored at 0 (N/A).
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As a mining and metals company, PAAS does not engage in the production of pharmaceuticals, chemicals, or cosmetics that would necessitate animal testing, and no evidence of such activities was found in the provided sustainability reports.
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No War, No Weapons
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As a mining company focused on precious and base metals, Pan American Silver's core business is not inherently linked to the arms industry or military conflict, though its products are used in broad industrial applications. Pan American Silver (PAAS) operates in the mining sector (ISIC 0729) and demonstrates a strong commitment to maintaining an arms-free business model. Evidence from multiple sustainability and conflict-free gold reports (2024-2026) confirms that the company has zero revenue from arms or defense contracts, focusing instead on metals for civilian applications like solar panels and electronics.
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Key findings include:
- **Zero Exposure:** The company explicitly states it has zero exposure to controversial weapons and its security personnel are prohibited from carrying firearms on-site.
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- **Conflict-Free Gold:** PAAS achieves 100% certification under the World Gold Council’s Conflict-Free Gold Standard (CFGS), ensuring its operations do not support unlawful armed conflict.
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This is verified through independent assurance by Apex Companies, LLC.
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- **Sanctions & Compliance:** The company maintains robust automated and manual screening against UN, US, EU, and OAS sanctions lists, reporting zero breaches.
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It utilizes the World-Check One and GAN Integrity platforms to screen suppliers.
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- **Human Rights & Governance:** PAAS is a signatory to the UN Global Compact and aligns with the UN Guiding Principles (UNGP) and Voluntary Principles on Security and Human Rights (VPSHR).
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It conducts annual human rights due diligence and security risk assessments across all operations, including those in high-risk regions (Mexico and Brazil) affected by organized crime.
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- **Board Oversight:** The Communities and Sustainable Development Committee provides board-level oversight of security and human rights, explicitly excluding defense-related business from the corporate mandate.
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Planet-Friendly Business
-40
As a large-scale mining company, Pan American Silver's core business involves significant land disturbance, high energy consumption, and potential for water contamination, which inherently conflicts with proactive environmental stewardship despite the role of silver in renewable energy technologies. Pan American Silver (PAAS) demonstrates a structured approach to environmental stewardship with significant transparency in reporting, though it lacks third-party validated science-based targets.
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In 2025, the company reported total Scope 1 and 2 emissions of 273,525 tCO2e and Scope 3 emissions of 1,022,405 tCO2e, totaling approximately 1.3M tCO2e.
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This represents a downward trend, exceeding annual reduction goals.
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While the company has an aspirational net-zero goal for 2050 and a 30% reduction target for 2030, these are not yet SBTi-validated.
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Operational efficiency is notable: the company reduced water use by over 220,000 m³ in 2024 and 54,711 m³ in 2025.
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Approximately 17.6% of its water withdrawal comes from high-stress basins (Dolores and Minera Florida), placing it in the -50 tier for stressed basin sourcing.
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Waste management is active, with a 68% diversion rate achieved at the Cerro Moro site.
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PAAS shows leadership in climate risk disclosure, with full TCFD alignment and comprehensive climate scenario analysis using NGFS and IPCC AR6 pathways (1.5°C, 2°C, and 3°C+).
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It also provides transparency regarding stranded assets, specifically noting sites under care and maintenance like Escobal.
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Socially, the company has established 'Just Transition' and climate justice programs, particularly through social closure initiatives at Manantial Espejo and Dolores, which focus on economic diversification and upskilling for over 1,100 participants.
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Biodiversity efforts are robust, with 62 hectares rehabilitated in 2025 (exceeding targets) and the initiation of TNFD pilot assessments.
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The company maintained an exemplary compliance record with zero significant environmental incidents reported in 2024 and 2025.
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Respect for Cultures & Communities
-30
As a large-scale mining company operating in multiple countries across the Americas, Pan American Silver's core business inherently involves significant land use and potential disruption to local and indigenous communities, frequently leading to documented community opposition, protests, and legal challenges regarding land rights and environmental impacts. Pan American Silver (PAAS) shows a complex profile regarding community relations, characterized by strong internal reporting and local economic metrics contrasted by severe, long-standing conflict at its Escobal asset in Guatemala.
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**Indigenous FPIC Violations (-70):** The Escobal mine has been suspended since 2017 due to a court-ordered ILO 169 consultation process.
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In May 2025, the Xinka Parliament formally denied consent for the mine's restart.
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While PAAS claims 'good faith' participation, indigenous leaders allege the company has obstructed the process and spread misinformation.
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The pattern of bypassing FPIC on this major project and the subsequent legal/regulatory suspension align with a tier -70.
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**Community Protest Severity (-90):** The company faces extreme, sustained opposition.
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A protest encampment at Casillas has been maintained for nearly nine years.
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Historically, security guards under previous ownership (Tahoe) fired on protesters, a lawsuit PAAS settled in 2019.
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Recent reports include 21-25 community incidents annually, including blockades and a 14-day strike at Shahuindo.
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The Xinka Parliament's formal rejection and international NGO campaigns (Earthworks) justify a -90.
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**Community Displacement (-30):** A long-standing dispute (since 2015) regarding worker housing at La Colorada was reported as 'largely resolved' in 2025 with relocation agreements, though some individuals are still pursuing legal action to declare the land national property.
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**Local Employment & Procurement (30):** PAAS demonstrates strong performance here, with 99.4% local hiring and 38% ($558M) local procurement in 2025, exceeding industry averages.
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**Community Grievance Resolution (30):** The company maintains a functional system, resolving 96-98% of medium/high-risk grievances within 60 days, with an average closure time of 31-33 days across nearly 200 annual grievances.
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Zero Waste & Sustainable Products
-30
Mining is inherently an extractive industry that generates significant waste, including tailings and overburden, which are difficult to manage sustainably and often result in permanent environmental degradation. Pan American Silver (PAAS) demonstrates a structured approach to waste management with significant quantitative evidence across several KPIs. Regarding waste diversion, the company reported a 69% diversion rate at its Cerro Moro site in 2025, up from 33% in 2024.
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While this specific figure is high, company-wide data for all operations is not aggregated into a single percentage, though substantial reuse of mineral waste is noted (27% of waste rock and 15% of tailings reused in 2024).
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The company has implemented over 8 distinct waste reduction initiatives with measurable results, including the 'Inclusive Composting' project in Brazil (processing 40% of municipal organic waste), tire recycling at El Peñon, and the donation of 45,000 tonnes of recyclables in Peru.
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Hazardous waste management is active, with several sites (Jacobina, El Peñon, Minera Florida, and Cerro Moro) achieving International Cyanide Management Code certification.
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However, 70% of mines have potential for Acid Rock Drainage, requiring ongoing active treatment.
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Compliance is strong; the company reported zero significant (Category 4) environmental incidents in 2024 and 2025.
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While 406 audit findings were noted in 2024, only one was 'A-severity' and was corrected.
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Waste audits are conducted at all facilities at least once every three years, supported by annual self-assessments.
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PAAS maintains company-wide waste reduction targets, such as the 2025 goal to reduce non-rock waste by 500 tonnes (achieving 471 tonnes).
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Supplier management is also formalized, with 529 critical suppliers evaluated in 2025 using a framework that includes environmental risk and mandatory commitment to a Supplier Code of Conduct.
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