14 2 01 9 S U S T AINABILITY REPOR T M at e r i a l it y O ur C OI sur v e y f orms the b asis o f our mat erialit y as s e s sment It help s us de fne and analyz e the imp act s o f our busine s s on C OIs B y lis t ening w e le arn about the is sue s C OIs s ee as import ant which enable s us t o adjus t the w a y w e w ork t o mor e ef ectiv ely manag e the s e is sue s It als o allo w s us t o align our g o als and prioritie s with tho s e o f our C OIs This pr oc e s s both s tr engthens our r elationship s with C OIs and mak e s us a bett er c omp an y Other f act or s c onsider ed in our mat erialit y as s e s sment include glob al tr ends signifc anc e o f a t opic t o the mining indus tr y P an Americ an Silv er s busine s s prioritie s and our abilit y t o infuenc e the t opic F or r eporting purpo s e s the t opic s c o v er ed in this r eport include P an Americ an Silv er s mo s t signifc ant en vir onment al and s ocial imp act s and t opic s o f high import anc e t o our C OIs W e c onsider the s e t opic s t o be mat erial While mat erial t opic s ma y ha v e imp act s on C OIs int ernally e xt ernally or in the v alue chain the r eporting boundar y f or e ach identifed t opic is limit ed t o our oper ations and loc al c ommunitie s O ur appr o ach t o managing mat erial t opic s is thr ough the sus t ainabilit y manag ement implement ation s y s t em and fr ame w ork which is c onnect ed t o our c or e busine s s s tr at egy M A T E R I A L IT Y P RO C E S S 1 I S S U E I D E N TI FI C A TI O N O ng oing C OI eng ag ement C onsider ation o f s tr at egic busine s s prioritie s and risk s P articip ation in indus tr y gr oup s and as s ociations C onsider ation o f int ernational norms s t andar ds and fr ame w ork s e g GRI SDGs 2 E N G A G E M E N T C OI sur v e y and identifc ation o f priorit y t opic s R eport pr ogr e s s on identifed mat erial t opic s 3 ANAL Y S I S AN D P RI O RI TI Z A TI O N R e vie w o f identifed t opic s A s s e s sment o f imp act S c oring o f t opic s D et ermination o f mat erialit y thr e shold 4 V A LI D A TI O N R e vie w b y s enior manag ement 5 R E P O RT I N G