Sustainable Benefits for Communities

At Goldcorp, we recognize that we have an important opportunity and business imperative to contribute to the positive social and economic development of our host communities and countries. This is why we are working to create sustainable value – long-term social and economic benefits that extend beyond the life of the mine and ensure that communities are in a more advantageous position as a result of our presence. Our mines generate and distribute direct economic value through local employment, local procurement and investments in community programs and infrastructure. Our approach incorporates local hiring and procurement initiatives where possible, including training, educational programs, internships, apprenticeships and small business support and development. It also includes direct cash and in-kind contributions made locally through donations, community investments, sponsorships, partnership agreements, sustainability funds and infrastructure investments. We also contribute through the payment of taxes and royalties to various levels of government in the communities and regions in which we operate.

Economic Value Generated and Distributed1

Country Direct Economic Value Generated in USD (Revenue) Economic Value Distributed in USD (Operating costs, wages & benefits, community contributions, government payments) Economic Value Retained in USD (Direct Economic Value Generated less Economic Value Distributed)

Argentina

$609,520,485

$272,154,299

$337,366,186

Canada

$1,274,822,527

$875,068,697

$399,753,830

Guatemala

$87,011,504

$63,637,984

$23,373,520

Mexico

$1,399,757,472

$836,968,340

$562,789,132

Total

$3,371,111,988

$2,047,829,320

$1,323,282,668

Local Employment

In accordance with our SEMS, all our sites seek to hire local employees to fill job openings wherever possible. Our human resources and community relations teams collaborate to create and implement hiring strategies with the goal of maximizing local labour and reaching the local skills base. We train skilled and unskilled local community members, including employees in a range of mine-related jobs. We partner with local institutions to support scholarship and apprenticeship programs and deliver technical training. We also offer leadership and mentoring programs for employees looking to advance their careers internally within the organization.

In 2017, Red Lake Gold Mines (RLGM) developed a new Local Hiring Strategy to further promote economic growth within the Municipality of Red Lake and with local First Nation communities. The purpose of the strategy was to increase the number of employees who move to Red Lake for employment and work on a local shift schedule. This strategy responded to community concerns about the growing number of employees who resided in locations outside the community in which we had our site and who were flying in and out of the site on a rotational basis; this reduced the economic benefit for the municipality. The local hiring strategy was communicated throughout the community by means of stakeholder meetings and directly with employees at the mine site.

As a result of this strategy and effort, 106 new employees were hired in 2017 on a local shift schedule. This represents 100% of the new hires at RLGM in 2017. This strategy has received positive feedback from all stakeholders of the mine including the Municipality of Red Lake, Lac Seul First Nation, Wabauskang First Nation, RLGM employees, and local business owners. This strategy has proven to communities and stakeholders that we remain a responsible, community-minded and sustainability driven company.

Similarly, in 2017 Peñasquito carried out a local employment strategy – including job fairs, press releases, a recruitment strategy and a training program – to offer more opportunities to the residents living closest to the mine. See our case study, Local Employment in Peñasquito.

Local Employment Statistics at Goldcorp

In 2017, 75% of employees were drawn locally and regionally, 24% were recruited nationally and 1% was recruited internationally.

Operating Region Local Regional National International
2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017

Canada and US

59%

52%

53%

31%

36%

35%

10%

12%

12%

0%

0%

0%

Latin America

41%

47%

25%

28%

25%

39%

28%

28%

35%

2%

1%

1%

Total

47%

50%

39%

29%

30%

36%

22%

19%

24%

2%

1%

1%

The percentages of local, regional, national and international hires at our Canadian sites in 2017 remained consistent with those in 2016. In 2017, our Marlin mine transitioned into closure, and we sold our Los Filos mine. These two changes in our reporting scope account for the decrease in local employment seen in Latin America from 2016 to 2017.

In 2017 we employed a total of 66 senior managers (department head or above) at our operating sites. Of these, 82% are nationals of the country in which the mine is located.

Our Average Annual Wage Ratio

We routinely pay entry-level wages that are significantly higher than the local legally mandated minimum wage in the areas in which we operate. In 2017, Goldcorp’s mine sites paid entry-level employee wages for both men and women that were an average of 2.3 times the minimum wage in Canada, 2.9 times the minimum wage in Mexico and 3.7 times the minimum wage in Argentina.

Income per Capita and Average Annual Wage2 (USD)

Country Ratio of our entry-level wage to local minimum wage (male) Ratio of our entry-level wage to local minimum wage (female)

Argentina

3.7

3.7

Canada

2.3

2.3

Mexico

2.9

2.9

Local Procurement

Our presence in the regions in which we operate can attract and create business opportunities. Understanding the importance of providing both local benefits and local capacity building opportunities, we strive to preferentially engage and support local services at each of our operations, as well as work closely with local businesses to help increase their capacity and grow their businesses. As part of our overarching local procurement approach, our SEMS requires that sites establish local procurement strategies, while our Commercial Practices, policies and procedures provide additional sustainability considerations and help us manage supply chain risk.

Realizing the importance of a diverse local employment base, we champion current and aspiring entrepreneurs by creating local business development funds. These funds provide support to local entrepreneurs on projects in the areas in which we operate.

In 2017, 16% of goods and services were purchased from local sources, accounting for more than US$320 million of spending. Local is defined by the site’s social area of influence, which is composed of real and potential impacts as well as regulatory requirements. The graphic below summarizes some of the examples of the goods and services we procure from the local communities near our mines.

Spend on Locally Based Suppliers by Site3

Sites Local Regional (State/Province) Country International Grand Total % Local

Cerro Negro

$43,394,201

$143,220,139

$14,043,253

$200,657,593

21.6%

Éléonore

$144,575,771

$82,673,557

$35,396,091

$3,238,072

$265,883,491

54.4%

Musselwhite

$42,719,165

$75,292,973

$11,482,506

$8,494,070

$137,988,714

31.0%

Peñasquito

$11,818,581

$19,691,802

$830,529,867

$154,117,508

$1,016,157,758

1.2%

Porcupine

$59,818,183

$96,195,427

$24,581,504

$5,556,775

$186,151,889

32.1%

Red Lake

$18,808,535

$114,166,916

$30,045,505

$1,017,164

$164,038,119

11.5%

Total

$321,134,435

$388,020,675

$1,075,255,612

$186,466,842

$1,970,877,564

16.3%

Examples of local procurement at our mine sites:

Musselwhite: Ojijakoes Community Development Corporation (OCDC) was developed by the community members of North Caribou Lake First Nation in the late 1990s to provide support services to Musselwhite mine. It provides several services to Musselwhite mine which include but are not limited to the following:

  • Industrial Janitorial Services
  • Exploration Support, Core Cutting
  • Warehouse Support
  • Security Support

OCDC focuses exclusively on employing members of the North Caribou Lake First Nation and other community members that are signatory to the Musselwhite Agreement. Recently, OCDC has put a new Board of Directors in place and is evolving its business strategies to ensure sustainability post mine closure.

Porcupine: Niiwin Inc., which began operating in 2016, was set up jointly between the four signatory First Nations (Mattagami, Matachewan, Wahgoshig and Flying Post) that are part of the Resource Development Agreement with Porcupine Gold Mines. Each nation owns 25% of Niiwin Inc. The services Niiwin provides include ore haulage between Hoyle Pond mine and Dome Processing Plant as well as reclamation activities, janitorial and security services.

Red Lake: Lac Seul Small Business Equity Fund was incorporated within the Obishikokaang Collaboration Agreement between Red Lake Gold Mines and Lac Seul First Nation, and funding was put forward by Goldcorp to support local entrepreneurs from the Lac Seul community. The first Lac Seul Small Business Equity Fund application saw a successful Tim Hortons franchise built in Sioux Lookout, a few hours south of Red Lake.

Cerro Negro: In late 2017, a “Local Entrepreneurs Contest” was put together with Fundación Iniciativa and the municipality of Perito Moreno. A workshop on business ventures launched the contest and provided the participants with the opportunity to acquire tools to further develop their new ventures. Participants were offered training and financing. The month-long contest received a total of 23 applications, from which eight winners were selected. The assessment criteria included innovation of the products or services offered, management experience, sustainability considerations in areas such as social and environmental impact, safety and return on investment potential.

The judging panel included members from Fundación Iniciativa, Goldcorp Cerro Negro and Perito Moreno City Hall. The first-place winner was Puntadas Peritenses, a local provider of professional clothing for the mining industry and the municipality. With their prize money, they plan to purchase more machinery to increase efficiency. Their goal is to reduce costs while keeping the same level of quality currently offered so that clothes are affordable for more people. The business was created by six women with sewing experience.

Contributions to and from Government

We operate in multiple countries and jurisdictions around the world and are subject to various rules regarding contributions to and from government. We are committed to fully complying with the regulatory reporting requirements in the areas in which we operate. Our main contributions to Government are taxes. Some of the taxes we pay, such as corporate income tax and mining taxes, vary with mineral prices and profitability, while other taxes we pay are fixed and so do not fall as profits decrease. In 2017, we paid approximately US$201 million in income taxes. Further information regarding taxes and payments to government is available in our Management’s Discussion and Analysis (MD&A) for the year ended December 31, 2017.

Included in our commitment to acting ethically and to fulfilling external reporting requirements in compliance with: Canada’s Extractive Sector Transparency Measures Act (ESTMA); Quebec’s Bill No. 55, An Act Respecting Transparency Measures in the Mining, Oil and Gas Industries; and our global Government Payments and Contributions Policy. This policy dictates how we identify, approve and report on payments and contributions made to government entities and/or government officials (“government payees”) globally. This policy covers both “routine” and “non-routine” payments and contributions to government4.

For information about our ESTMA disclosure, please refer to our 2017 ESTMA report at www.goldcorp.com.

Transparency Initiatives

We actively support the objectives of the Extractive Industries Transparency Initiative (EITI), the International Council on Mining & Metals (ICMM), the Global Reporting Initiative (GRI), the United Nations Global Compact (UNGC) and the World Gold Council (WGC), among other initiatives that support transparency in payments to government.

We have sites in Canada, Mexico, Guatemala, Argentina, Chile and the Dominican Republic. Of these countries, Mexico, the Dominican Republic and Guatemala have implemented the EITI. In 2017, we continue to record payments according to the EITI standards. To learn more about our commitment to the EITI, click here.

Government Financial Assistance

Government financial assistance includes grants, subsidies, or rebates received from governments. In 2017, we received CAD$11.1 million in rebates5 from Ontario’s Northern Industrial Electricity Rate Program (NIER), which assists Northern Ontario’s largest industrial electricity consumers to reduce energy costs, sustain jobs and maintain global competitiveness. This program is part of the Ontario Government's plan to strengthen the economy and support a dynamic and innovative business climate that attracts investment and helps create jobs.

We also received rebates from one of our government utilities in Ontario, which funds up to CAD$200,000 per site to advance energy management programs. The Government of Ontario, through its Target GHG Program, will invest CAD$5 million into the Battery Electric Vehicle fleet at the Borden Gold Project. In Quebec, we received a CAD3.4 million rebate to advance energy efficiency initiatives.

We do not have any direct joint venture relationship in which any government holds a position of shared ownership. However, we do on occasion have state-owned institutional investors (for example, public pension funds).

Community Contributions

Community contributions support our vision of creating sustainable value by enhancing social and economic development opportunities and creating a lasting, positive impact in the communities in which we work.

Our community contributions include donations, sponsorships, sustainability funds and investments made in and/or with local communities, stakeholder groups and partners. These contributions support our strategic objectives, benefit communities and aim to build trusting relationships. Community contributions extend beyond taxes, procurement and hiring to include meaningful projects and programs that enhance social and economic development, support the global United Nations Sustainable Development Goals (SDGs) and create lasting benefits and value beyond mine closure.

In 2017, we implemented a number of activities to improve the way we approach community contributions. These reflected a shift from traditional philanthropy to a more strategic approach to investing locally and included:

  • We replaced our Donations Policy with a Community Contributions Policy that can be found here.
  • We updated our internal standards to include a required analysis of the value of all funding requests and potential projects according to their planned impact on the community and on the company.
  • We enhanced our internal reporting system to better articulate the outcomes and impacts associated with our community contributions.
  • We developed a Community Contributions Application Form to increase external accessibility to our funding opportunities and to standardize the information we collect and process. A copy can be accessed here.
  • We expanded our subject focus areas to include the following categories: a) Education, b) Health, c) Local Economic Development, d) Arts, Culture & Recreation, e) Diversity f) Governance and g) Environment.
  • We aligned these new categories of contribution with the global United Nations Sustainable Development Goals (SDGs) to support their implementation and enhance our commitment to the UN Global Compact.
  • We created an enterprise-wide Community Contributions Strategy template. This helped us develop site-level strategies for investing in communities that respond to locally-identified goals and priorities and also support our strategic objectives.

As we continue to change the way we approach our community contributions, we will continue to be more strategic and deliberate about leaving a lasting impact in the areas in which we operate. Our focus next year will be on improving our reporting of our community contribution impacts. To evaluate the impact of our contributions, we will continue to work closely with community partners and funding recipients to identify, monitor and report back with the outcomes and impacts of all our community contributions and initiatives.

Total cash community contributions amounted to approximately US$9.94 million in 2017.6 In-kind contributions were valued at roughly US$6.98 million. The table below provides a snapshot of our community contribution focus areas, as well as some highlights from some of our 2017 contributions. Take a look at this video to learn about our 2017 community contributions from our Porcupine Gold Mine (PGM).

Company-wide Community Contributions in 20177

Total

Total Community Contributions $9,936,736

Our Community Contributions are aligned with the United Nations Sustainable Development Goals and include: a) Education, b) Health, c) Local Economic Development, d) Arts, Culture & Recreation, e) Diversity f) Governance and g) Environment. For each focus area we have highlighted general examples, our intended impacts and outcomes, followed by the SDGs they support and notable initiatives from 2017.

Education

Education $1,206,280

Scholarships, school access for remote areas, teacher training, literacy programs, field trips, internships, research/program funding, partnerships with educational institutions

  • Increase access to and/or quality of primary and secondary education
  • Increase access to and/or quality of college or university programs
  • Support the development of educational infrastructure and/or improve educational resources or equipment

Peñasquito implemented their multi-year educational initiative aimed at benefitting local elementary and secondary school children. The initiative includes a science and sport program for primary and secondary school students, a scholarship program and an entrepreneurship and technical skill-building program. Peñasquito partnered with Technoserve to deliver these programs.

Health

Health $1,248,532

Hospitals, clinics, rural access to physicians and specialists, healthcare staff training, medical equipment, health campaigns, crisis support

  • Increase access to and/or quality of healthcare facilities, equipment and/or services
  • Support community and/or workplace health programs
  • Participate in response to and recovery from epidemics and/or health hazards

Cerro Negro partnered with the local Perito Moreno District Hospital to enhance the quality of services and care. In 2017 the mine supported a variety of healthcare areas including prenatal and post-natal care and equipment, neonatal intensive care, an extension of the hospital to accommodate additional doctors and offices, a new medical room and administrative offices, among others.

Local Economic Development

Local Economic Development $1,704,297

Technical, vocational and small business programs, apprenticeships, business acumen workshops, homeless shelters, food banks, breakfast programs

  • Enhance the local skills base through vocational training, apprenticeships and skill development programs
  • Promote entrepreneurship and the formalization and growth of micro, small and medium sized enterprises
  • Address poverty alleviation and hunger

Musselwhite mine supported the First Nations Natural Resources Youth Employment Program (FNNRYEP). This local, community driven initiative works towards equity and opportunity for Indigenous youth using natural resource management as a platform to focus on developing work skills, life skills, and encouraging youth to achieve an adult life of prosperity, self-sufficiency, and personal growth.

Arts, Culture & Recreation

Arts, Culture & Recreation $1,473,361

Community centres, local sports activities, tourism, programs/ infrastructure of traditional & cultural importance, art programs, festivals, celebrations

  • Promote sports and recreational activities
  • Preserve local cultural sites, traditions and heritage
  • Promote community art, tourism and festivals

We partnered with the tenth North American Indigenous Games (NAIG), held in Toronto July 16-23. The NAIG is an Olympic-style competition for Indigenous youth from Canada and the US featuring traditional sports and a gathering of 5,000+ Indigenous Peoples in North America. More than 30 youth from our First Nation partner communities at Coffee, Red Lake, Musselwhite and Éléonore participated as athletes and competed in a variety of sports including wrestling, basketball, volleyball and dance. We were a proud supporter of the NAIG, as a sponsor of the overall Games as well as through mine site sponsorships of local First Nation athletes and teams.

Diversity

Diversity $457,424

Apprenticeships, scholarships, skills training, inclusivity programs, shelters, medical facilities, mental health services, community events (aimed specifically at women and/or minority groups)

  • Promote inclusivity and equitable opportunities for women and/or underrepresented groups or minorities
  • Support initiatives aimed at skill development for women and/or underrepresented groups or minorities
  • Support programs and services aimed specifically at the health (physical and mental) of women and/or underrepresented groups or minorities

Our Corporate office supported the InnerChange Foundation, with the goal of improving the health outcomes of British Columbians living with addictions and related mental health challenges. We also continue to partner with the Special Olympics BC to support year-round sport and youth programs, empowering competitions, health and leadership programs, and social change for individuals with intellectual disabilities throughout the province.

Governance

Governance $1,385,599

Roads, sewers, water management, energy

  • Support increased capacity of government departments and offices to ensure critical services are delivered to communities

Cerro Negro contributed to the expansion of the natural gas infrastructure network in Perito Moreno to support the municipal government in meeting the needs of the town’s growing population. Twenty-five additional homes were connected to this gas network, reducing pressure on the power grid and driving significant operating cost reduction (particularly heating costs) for those families. The construction of the infrastructure finished in 2017 and the local government in Perito Moreno now manages and maintains this natural gas network.

Environment

Environment $2,461,244

Participatory water monitoring, reforestation, crisis support

  • Environmental crisis response
  • Environmental projects/initiatives in collaboration with communities

Porcupine mine partnered with the Mattagami First Nation Micro Hatchery, allowing students the ability to monitor approximately 25,000 walleye eggs until they hatch. The Mattagami First Nation Chief and Council believe it is important for children to recognize the need to enhance the population of a species that the community relies on throughout the year.

* https://www.un.org/sustainabledevelopment/wp-content/uploads/2017/12/UN-Guidelines-for-Use-of-SDG-logo-and-17-icons-December-2017.pdf