30 2 01 9 S U S T AINABILITY REPOR T O ur P erf ormanc e S o cia l A u di t s W e c onduct s ocial audit s t o help us monit or our s ocial f ootprint and manag e our perf ormanc e The audit s ar e c onduct ed b y c ommunit y t e am emplo y ee s fr om acr o s s the C omp an y O ur audit fr ame w ork is b as ed on the IS O 2 6000 guidanc e s t andar d on s ocial r e sponsibilit y and inc orpor at e s c ont ent fr om P an Americ an Silv er polic y c ommitment s Indus tr y s t andar ds and r equir ement s T o w ar ds Sus t ainabilit y Mining T SM Aboriginal and C ommunit y O utr e ach P r ot oc ol Unit ed Nations Guiding P rinciple s on Busine s s and Human Right s UNICEF Canada s Child Right s and S ecurit y Checklis t V olunt ar y P rinciple s on S ecurit y and Human Right s In 2 01 9 w e t ook s t ep s t o impr o v e our s ocial audit fr ame w ork b y e xp anding the s c ope o f the audit c ont ent t o include additional human right s be s t pr actic e s and s t andar ds such as the V olunt ar y P rinciple s f or S ecurit y and Human Right s and the UN Guiding P rinciple s on Busine s s and Human Right s as w ell as the T SM P r ot oc ol on C ommunit y and Aboriginal O utr e ach which c o v er s aspect s such as c ommunit y eng ag ement s t ak eholder mapping and r e spons e mechanisms The fr ame w ork w as als o r e vie w ed b y dep artment s out side the sus t ainabilit y function t o mak e it mor e inclusiv e o f is sue s enc ount er ed in e v er y da y aspect s o f the busine s s W e c omplet ed s ocial audit s o f our f our P eruvian mine s Shahuindo L a Ar ena Huar on and Mor oc ocha during 2 01 9 The primar y fnding s included the need t o impr o v e c onditions at c amp f acilitie s at the r ec ently ac quir ed Shahuindo and L a Ar ena mine s b y incr e asing c amp sp ac e impr o ving v entilation and implementing additional h y giene pr actic e s in the kit chens The s e is sue s ar e curr ently being addr e s s ed thr ough chang e s in pr oc edur e s and making additional in v e s tment s in the f acilitie s In 2 0 2 0 w e plan t o c onduct s ocial audit s at our oper ations in B olivia Ar g entina and Me xic o In 2 01 9 w e t ook s t ep s t o impr o v e our s ocial audit fr ame w ork b y e xp anding the s c ope o f the audit c ont ent t o include additional human right s be s t pr actic e s and s t andar ds 1 High S e v erit y A applie s t o nonc onf ormanc e audit fnding s that ma y ha v e a critic al imp act on the C omp an y s r eput ation and or a high ec onomic imp act 2 Moder at e S e v erit y B applie s t o nonc onf ormanc e audit fnding s that ma y ha v e a moder at e imp act on the C omp an y s r eput ation and or a pot ential ec onomic imp act 3 L o w S e v erit y C applie s t o nonc onf ormanc e audit fnding s that ha v e a lo w pot ential imp act on the C omp an y s r eput ation 20 Number o f nonc onf ormanc e audit fnding s 5 0 Mor oc ocha Huar on Shahuindo L a Ar ena 10 15 High S e v erit y A Moder at e S e v erit y B L o w S e v erit y C S O C I A L A U D I T P ER F O R MA N C E