05 People are precious to us
People are at the heart of everything. We are convinced that the human element is what creates impact, drives innovation, and fosters strong partnerships. These are essential for growth and sustainable transformation.
We prioritize the well-being and interests of the people in our company, in nearby communities, and along our value chain. This especially includes ensuring respect for human rights, fair working conditions, a safe and healthy work environment, living wages, and diverse and inclusive workplaces.
Targets and KPIs
WOMEN
40%
IN Global Management Team
by 2025
Diversity begins at the top. By 2025, the Global Management Team of Heraeus Precious Metals, including Argor-Heraeus, will consist of at least 40% women.
reduce work-related
incidents to
ZERO
Our ultimate objective is zero work-related incidents. To achieve this target, we have numerous measures in place.
100%
of our mining partners with
targets, measures, and progress
We are expanding our activities from the workers in our value chain to include surrounding communities and environment. Our aim is to ensure that all our mining partners define concrete targets and measures and make progress.
Diversity, equity, and inclusion (DE&I)
DE&I is essential to our identity and culture. We actively encourage different perspectives, put together diverse teams, provide equal opportunity, and insist on real cultural change toward a truly inclusive work environment. We believe that diversity makes us better—better at understanding our markets and customers, at generating business opportunities, and at being innovative. Consequently, we have made DE&I a top strategic issue.
Where we stand
Our workforce is spread across multiple locations. Our Mendrisio headquarter, where the majority of production takes place, employs 453 people. Our other locations employ 116 people in Hong Kong, China, 17 in Pforzheim, Germany, and 17 in Cavenago di Brianza, Italy.
In addition to the total of 603 employees, we employ 78 temporary workers, 77 of which at our Mendrisio headquarter and 1 at our site in Cavenago di Brianza.
Employees (2023)*
No Data Found
*excl. temporary workers
We recognize the importance of diversity and gender equality in our industry and place particular emphasis on achieving a better gender balance. Globally, 28% of our employees are women.
Although our sector is traditionally male dominated, we actively promote female careers and ensure equal pay for all our employees.
This approach is in line with Heraeus Precious Metals’ target of 40% women in the Global Management Team by the end of 2025. In 2023, 16 managers from Argor-Heraeus were part of Heraeus Precious Metals’ Global Management Team. 44% of these Argor-Heraeus managers were women.
Employees by gender
No Data Found
Share of women from Argor-Heraeus within the Global Management Team
No Data Found
Diversity also has a qualitative aspect that cannot be measured by KPIs—atmosphere and culture. We therefore address the topic from several angles. We promote individual initiative, communication, respect, and diversity—because we are convinced that they represent added value for the success of our company.
Working conditions
Our employees worldwide are our most important asset. Their skills, knowledge, and dedication—as well as their diverse experience and personalities—shape our company and its success. We strive to offer attractive salaries as well as opportunities for development and are committed to providing a modern work environment in which all employees feel appreciated and can realize their full potential.
Where we stand
We actively work on creating a shared culture and values within our company. This is reflected in and influenced by the tenure of our employees. We closely monitor two key indicators: tenure and turnover rate—the proportion of employees leaving our organization compared to the total workforce.
ON AVERAGE, OUR EMPLOYEES STAY WITH US FOR
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Overall, the average tenure in our company is 9 years, and we have a reasonable turnover rate of 9%. We are aware that this rate varies widely from site to site, especially at small sites. We are always investigating the reasons for high turnover rates to implement possible measures to reduce them. We are committed to providing professional development opportunities for all employees. We invest in our future workforce by offering apprenticeship and work study programs, addressing individual needs, and working together to identify development opportunities throughout each employee’s career. These initiatives are complemented by our long-standing talent programs, which are designed to enable talented employees to take on more responsibility and to fill key positions internally.
Environmentally friendly transportation is also a priority for us. We actively encourage our employees to choose greener modes of transport such as public transportation, slow mobility and carpooling. In 2023, we registered 68 carpooling groups involving 162 employees, and subsidized 60 public transport passes in Mendrisio. In Hong Kong, we subsidize public transport usage and offer corporate shuttle buses, resulting in more than 95% of employees relying on public or shared models with significantly lower CO2 emissions than private transport.
Employee turnover
No Data Found
Health and safety (H&S)
The health and safety of our employees are our top priority. We strive to ensure that everyone starts their workday in good health and finishes it without any harm or negative impact. Our certified health and safety (H&S) management system and comprehensive policies give our organization a strong safety culture. Nevertheless, we continually work to make our operating facilities and offices even safer.
Where we stand
Providing a safe working environment is the responsibility of everyone working in our company. In order to enable constant improvement, we continuously monitor key health and safety indicators. Our dedicated H&S managers and working groups are responsible for implementing strategies to create a safe and healthy work environment. As a member of various associations, we regularly engage with our industry peers and share best practices. To ensure that we stay up to date with the most relevant topics, we also actively collaborate with external bodies and institutions such as the fire department, ambulance services and the police.
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We are certified according to ISO 45001 (Mendrisio), ISO 14001 (Mendrisio and Hong Kong) and ISO 9001 (Mendrisio and Hong Kong) and accredited according to ISO 17025 (Mendrisio and Cavenago di Brianza). These certifications reflect our commitment to effective management of safety, health, environment and quality in the workplace. All H&S incidents, including injuries, work-related ill health, process safety incidents, unsafe situations and near misses are reported, analyzed and addressed, with corrective measures implemented to prevent similar occurrences. Among the safety-related key performance indicators which we monitor, we pay particular attention to the Lost Time Incident Rate (LTIR), which measures the number of incidents that led to at least one lost day per 1,000,000 hours worked. After a pandemic-related interruption, we resumed training activities in 2022, focusing on essential health and safety aspects such as first aid, firefighting, emergency management, and workplace responsibility. In 2023 we focused our efforts on various activities related to increasing everybody’s commitment to safety, increased presence and monitoring, and careful analysis of all H&S events. In 2023, thanks in part to the measures outlined above, the LTIR for Mendrisio improved significantly compared to 2022. In Hong Kong in 2023 we have unfortunately registered a higher LTIR due to three specific production-related accidents which have been carefully analyzed, and for which countermeasures have been defined.
Lost time incident rate (LTIR)*
No Data Found
*incl. employees and temporary workers
People in our value chain
Respect for human rights, protection of the environment, ethical practices, and transparency have been and will always be non-negotiable core values of our company. We are aware of the significant impact our business has on people along our value chain and recognize our responsibility for their welfare. We systematically assess our precious metal suppliers’ social and environmental actions, particularly regarding the protection of human rights, and engage with them to foster improvements.
Due Diligence
Human rights due diligence is an integral part of our general due diligence process. By fostering meaningful collaborations and taking concrete action, we strive to make a positive and lasting impact on the lives of individuals within our value chain.
Our commitment to safeguarding human rights encompasses a range of measures:
- We conduct thorough due diligence processes to ensure compliance with human rights standards throughout our operations and value chain.
- By collaborating closely with our mining partners, we strive to enhance the living conditions and well-being of workers and communities along the entire supply chain.
- Monitoring the adherence to human rights principles is crucial to us. We actively monitor and assess human rights practices along our value chain to ensure that ethical standards are upheld at all stages of it.
- We provide accessible channels for value chain workers and people living in affected communities to raise concerns, encouraging transparency and ensuring their voices are heard and addressed.
- Through meaningful engagement with stakeholders in the industry, we actively contribute to creating a responsible work environment, particularly in artisanal and small-scale mining. As a founding member of the Swiss Better Gold Association and in collaboration with Fairtrade and Fairmined, we actively promote responsible practices and fair working conditions.
Our efforts to protect human rights along our value chain are underpinned by internationally recognized industry standards such as the Responsible Gold Guidance of the LBMA. We supplement these with our own stringent guidelines.
Collaborating with our mining partners
At Argor-Heraeus, we recognize that meaningful engagement with as many stakeholders as possible holds the key to improving the well-being of workers in our value chain and minimizing our impact on the environment and local communities. We firmly believe that collaboration is essential to creating a positive and lasting impact. With this in mind, we have developed a roadmap that sets clear milestones for transparency, improvement, and the evaluation of progress for our mining partnerships. We aim to achieve full transparency on sustainability targets for all of our mining partners by 2024. By 2026 we strive to ensure that 80% of our mining partners have their own sustainability targets in place. Ultimately, we aim to have 100% of our mining partners establish sustainability targets, implement measures and track progress.
Timeline
Artisanal and small-scale mines (ASM)
We actively engage with the most vulnerable part of the precious metals supply chain—artisanal and small-scale mines (ASM).
ASM in the gold sector remains largely informal, making its workers particularly vulnerable. They often lack access to guidance or resources for proper chemicals management, safety procedures, environmental management, labor rights, and social protection.
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ASM accounts for approximately 20% of the annual gold extracted worldwide, and employs approximately 40 million miners. In total, it is estimated that the income and lives of around 100 million people depend on ASM*. It is inevitable that gold from ASM mines will end up in the supply chain. This is why it is crucial to ensure responsible practices for secure and sustainable social development in artisanal mining communities.
We acknowledge the complexities involved in formalizing ASM. However, we are committed to our responsibilities and recognize that these efforts are necessary in order to enable artisanal miners to access the formal precious metals market. By facilitating this access, we contribute to improving the living and working conditions of the many individuals who directly or indirectly depend on gold mining.
Engaging with the ASM sector is an integral part in our pledge to become the most responsible precious metal refinery in the world. As a founding member of the Swiss Better Gold Association, we are committed to supporting the ASM sector. As part of this commitment, we offer Swiss Better Gold, Fairmined Gold, and Fairtrade Gold to our customers, thereby advocating for more sourcing from responsible ASM suppliers. In addition, we actively engage with these initiatives to help mines to phase out the use of mercury, and improve working and living conditions, through the payment of a premium.
*The International Institute for Sustainable Development, 2017
People in our communities
We are committed to cultivating relationships within our communities, fostering a positive reputation, and supporting economic growth. Our contribution is a conscious choice to support local businesses and initiatives in various forms.
Our contribution to the community
Argor-Heraeus is committed to being a responsible citizen in the communities in which we operate. This responsibility can take many forms, from paying taxes to providing employment opportunities, and from working with local organizations to contributing to education. The common denominator is the development of long-term relationships with our stakeholders which are based on mutual trust, benefit and growth.
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Our philosophy is to prioritize local business partners and suppliers. We always start the search for partners and suppliers at the local level and expand outwards, respecting environmental and sustainability considerations. This approach allows us to support local development and to build long-term relationships with partners covering a range of services such as catering, chemicals, packaging tools, printing supplies, tools and equipment.
We support local groups and organizations through contributions, sponsorship, donations or ad hoc collaborations. This value cannot be expressed in monetary terms, as it often involves the investment of time and the sharing of knowledge. Each year we receive numerous requests for sponsorship or support from a wide range of organizations. We evaluate these requests annually based on their alignment with our internal sponsorship guidelines.
We also support the development of young talent. Since 1978, we have been recognized as a “Training Company” by the Canton of Ticino, contributing to the training of many young individuals pursuing careers in the industry. We collaborate with the University of Applied Sciences and Arts of Southern Switzerland (SUPSI), to support educational development, and provide valuable mentorship. As testament to our commitment, we award a prize of 3,000 CHF each year to the student who produces the best thesis in sustainable engineering. Another noteworthy example of our well-established collaboration with SUPSI is our participation as guest lecturers to the Certificate of Advanced Studies (CAS) in Corporate Social Responsibility, a program designed for executives working in the field.
Projects and initiatives
We want all our employees to contribute to the success of the company. To encourage innovation from everyone, in 2023 we launched the “Precious Ideas” contest inviting all employees to provide ideas to improve our company in two main areas: reduction of CO2 emissions and improvements for employee health & safety. In total we received 136 ideas from our employees. We have evaluated all ideas and, after technical assessment, have either implemented or are working on implementing approximately 10% of the ideas submitted. The best ideas in each area were awarded with CHF 1,000 vouchers. We are very happy with the results generated by this first edition of the contest and are already thinking about the second round.
At the end of 2023, we invited all employees to take part in a survey to assess their satisfaction at the workplace. The survey investigated a number of aspects, including overall satisfaction, identification, stress levels, perception of internal communication, relationship with management and more. After collecting and analyzing the data, we shared results with our colleagues and began to implement a number of the improvement measures suggested in the survey.
Argor-Heraeus has always invested significant resources in activities that benefit the communities in which we operate. One of the latest projects in this vein was launched in 2023. The project is called “Together Sounds Better” and involves Argor-Heraeus supporting the Conservatorio della Svizzera italiana in providing music lessons to children from the Provvida Madre Foundation, a foundation that supports the development of children and adults with disabilities. We are very proud of this collaboration, which has culminated in a small concert, also thanks to the support of the City of Mendrisio.
To foster positive change within the gold supply chain, Argor-Heraeus introduced “Traceable Gold” in 2019, in collaboration with a Swiss bank. This investment product allows customers to trace each piece to its mine of origin. The product is sold at a premium, and the profits are accumulated in a fund dedicated to financing social development projects in ASM communities. The allocation of these funds is decided upon by a board, consisting of seven independent experts from various sectors of society.
In 2023, the sounding board awarded the “Emprende Pallaquera” initiative. “Pallaqueras” are women who manually sort gold in Peru’s ASM communities. Emprende Pallaquera strives to promote gender equality by supporting the economic independence of these women. It equips them with essential business skills and knowledge to launch their own microenterprises. This initiative is made possible by the non-profit organizations Solidaridad and FUNDES.
06 Guided by integrity
Our compliance and transparency standards are the foundation on which the trust of our employees and customers as well as other stakeholders is built. Earning and maintaining this trust is the basis for our success. It requires an unwavering commitment to integrity and good business practices.
We value long-term relationships over short-term profits and have always ensured that processes are transparent and auditable. Our approach to compliance has three aspects: prevent, detect, and respond. Our highest priority by far is prevention.