Scope 1 Emissions
2022 Communication on Progress
Solaris
Published date
June 22, 2022
No. of questions
71
Supplemental files
CEO Statement
Signed
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
Optional commentAnnual statement through sustainability report. Inaugural report to de released May 2022.2. Does the company have a publicly stated commitment regarding the following sustainability topics?
Optional commentPublicly stated commitment instrumentalized in corporate policies as well as annual sustainability report. Corporate policies available here: https://www.solarisresources.com/company/corporate-governance/ and https://www.solarisresources.com/sustainability/governance/ Sustainability report here: https://www.solarisresources.com/sustainability/reports/ or https://www.solarisresources.com/_resources/reports/2021-Sustainability-Report.pdf?v=0.33. Does the company have in place a code of conduct regarding each of the following sustainability topics?
Optional commenthttps://www.solarisresources.com/sustainability/governance/4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Prevention
6. Does the company have a process or processes to assess risk?
7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentWe have a formal Whistleblower policy and Code of conduct with reporting contacts schedule. https://www.solarisresources.com/_resources/governance/2020-Whistleblower-Policy.pdf and https://www.solarisresources.com/_resources/governance/Solaris-Code-of-Conduct-and-Business-Ethics.pdf8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
Optional commenthttps://www.solarisresources.com/_resources/governance/Solaris-Code-of-Conduct-and-Business-Ethics.pdf9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
13. Do you produce sustainability reporting according to:
Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Optional commenthttps://www.solarisresources.com/_resources/reports/2021-Sustainability-Report.pdf?v=0.3Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Commitment
2. Does the company have a policy commitment in relation to the following human rights issues?
Optional commentEmbedded in Indigenous Peoples' Policy2.1. For each human rights policy, is it:
Prevention
3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?
4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?
5. Who receives training for the following human rights issues?
6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?
Response
7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?
Optional commentGRI 411-1, 412-1 Solaris has faced challenges resulting from existing conflicts within the Shuar territories. In August and September 2021, Solaris became aware of allegations made in the letter from Marcelo Unkuch on behalf of the Shuar Arutam People Association (PSHA) to Her Excellency Sylvie Bedard, Ambassador of Canada to Ecuador, dated August 26, 2021. These allegations were also posted online in the blog entry from Mining Watch Canada on behalf of PSHA dated September 8, 2021, and published in the public complaint from Alianza para los Derechos Humanos Ecuador on behalf of PSHA, posted online, dated September 9, 2021. It is critically important to understand that the Allegations have been made without consulting the communities of Warints and Yawi, without consideration of these communities’ rights to self-determination and without consideration of these communities’ voluntary choice to work with Solaris. As set out in a letter from the Shuar Centres of Warints and Yawi in a letter to the Canadian Embassy in Ecuador dated September 7, 2021, “In July 2020, the Warints and Yawi centres signed an Impacts and Benefit Agreement for the Warintza Project - that is current, and we respect it because it represents the sentiment of most of the partners in our communities. However, several organizations, unknown to us, have sought to invalidate our agreements and relationship with Solaris Resources, which cause us outrage since none represent us.” Solaris has committed to and will continue to commit to working with the prior consent of the Shuar communities in its area of influence. This means respecting the right of the Shuar communities of Warintz and Yawi to express and exercise their own will, both within the PSHA and in relationship with the Company. All allegations are false. For the full response, see: https://media.business-humanrights.org/media/documents/20210929_-_Solaris_Resources_Response_to_BHRRC__Sept_29.pdf8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
In 2021, the Board approved six new policies, adding to its existing governance framework. These policies include sustainability policy, human rights policy, Indigenous rights policy, supply chain policy, anti bribery and anti corruption policy, and health and safety policy. All Solaris employees and contractors are required to understand and sign corporate policies. Solaris’ Human Rights Policy commits to respecting and observing all human rights contained in the International Bill of Human Rights and the International Labor Organization’s Core Conventions.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commenthttps://www.solarisresources.com/sustainability/governance/1.1. For each labour rights policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Performance
6. What is the percentage of employees covered under collective bargaining agreements?
Optional commentSolaris respects the right of all workers to form and join a trade union of their choice and to bargain collectively. We have embedded this in our Human Rights Policy and Supply Chain Policy. Due to the scale of the organization there is no trade union formed or collective bargaining agreement. However, Solaris has signed an Impact and Benefits Agreement (IBA) with the Shuar communities of Warints and Yawi as well as with the community of San Miguel de Conchay, both in the direct area of influence of the Warintza Project.7. What is the percentage of employees in a trade union or other workers' organization?
8. In the course of the reporting period, what was the percentage of women in:
9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
Optional commentWe have achieved 0% salary variation by gender.10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentRate of high-consequence work-related injuries x 1.000,000 hours: 2,9611. In the course of the reporting period, what was the company’s incident rate?
Optional commenttotal reportable incident rate of 0.148% for 2021 up to the end of December, with only 1 reportable incident in over 1 million man-hours of work that caused lost time for the Warintza Project.Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Our business success depends on our ability to recruit and retain the most promising employees – people who share our commitment to sustainable development that benefits all stakeholders. We take great care in every step of the employment process, with emphasis on equality, diversity, workplace safety and employee welfare. We treat our people fairly and without discrimination, with full regard for their human rights. We know that our success depends on their efforts, and in return we strive to maintain a safety-aware work culture in which everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The economic value we generate benefits all of our stakeholders, delivering not only financial returns but also contributing to the achievement of common goals around sustainable development. Solaris actively promotes a recruitment policy aimed at achieving a diversified and inclusive workforce. Solaris is strongly committed to contributing to the skills development of our workforce and their personal and professional growth through training for all staff, without discrimination. The corporate culture of empowerment and respect are some of the reasons for Solaris’ low employee turnover rate of (6.09%) and high employee engagement. Our recruitment process in Ecuador follows strict compliance with Ecuadorian labour laws. Every employee is hired as a result of corporate demand, and a due hiring process is followed to ensure transparency, equity and fairness in our recruitment strategy. Occupational health and safety checks are carried out for all new hires. All employees are provided benefits including life insurance, medical services, coverage for disability, paternity leave, retirement pension, among others. Solaris places high importance on ensuring transparent processes in human relations, specifically to avoid discrimination, child labour, forced labor or modern-day slavery. We recognize the importance of physical and emotional well-being in a corporate setting to ensure all-around business and community success. Every six months, an internal survey is conducted by an external provider to determine job satisfaction and work climate, allowing us to better contribute to the personal and professional development of each of our employees. In our most recent 2021 survey, 87.81% satisfaction results were recorded for Work Climate and 94.65% for Job Satisfaction. The importance of a company’s environment is recognized in terms of the impact it has on proper functioning- an environment that can appear as a threat or be an opportunity- depending on the company’s response to change. Companies must be able to respond to social and demographic changes, specifically stewarding the participation of women in social, political, and economic spaces. This allows them to chart a new roadmap for adapting to these changes in a more committed way that upholds environmental values, equal rights and opportunities in talent management. Equal opportunities contribute to the development of a socially responsible company committed to values such as equality, respect for the environment, health, human rights, sustainable development, respect, and integration of diversity. Solaris pays particular attention to gender equality and the empowerment of women in monitoring and reviewing the implementation of the United Nations 2030 Agenda for Sustainable Development and the Women’s Empowerment Principles (WEPs). The Company recognizes benefits arising from employee diversity, including a broader pool of high-quality employees, increased employee retention, and access to different perspectives and ideas, thus benefits from all available talent. We respect and value the perspectives, experiences, cultures, and essential differences of our employees. We understand that achievement and fulfillment of individuals’ career potential are only made possible by development and advancement opportunities, training and mentoring provided to all staff throughout our organization. We recruit, retain, reward, and develop our people based upon their abilities and contributions. We have achieved 0% salary variation by gender. Management provides the leadership framework and direction, and it is the responsibility of everyone at the Company to sustain a culture that promotes and supports principles of diversity and inclusivity. Local employment - Amazonia One of the main characteristics of the Warintza Project is, according to the guidelines of its participatory mining model, Company actions and initiatives have always aimed to co-contribute to the Shuar community in a sustainable manner, seeking to go beyond the regulations for the sake of real transformation with long-term positive effects. Proof of this is our compliance with article 41 of the Organic Law for Comprehensive Planning of the Amazon Special Territorial Circumscription. This law establishes that all organizations carrying out activities in Amazon territory must employ at least 70% of local residents. Solaris has not only complied with the established percentage, rather has exceeded it by 19% as 89% of the project's collaborators are from the Amazon. Further, Solaris’s compliance with this law is based on an authentic commitment because it is aware of the impact the mining industry can have on the economy and the quality of life of those who live in the project’s areas of influence. Solaris currently has signed 1027 contracts with 888 men and 139 women who have contributed directly and indirectly to the activation of the local economy. Not only are there more and better job opportunities, thanks to the increase in the purchasing power of workers, markets have been activated in other provinces because members of the Yawi and Warints communities travel to Limón, consume clothing, food, etc., and return to their home communities. Further, as mining activity is capital-intensive (due to high tech, equipment, and highly qualified personnel requirements), the Warintza Project has contributed greatly to job placement for both men and women. In addition to creating new job opportunities for those lacking in technical knowledge, the Project has also contributed to building skills through agreements with various training organizations. In addition to contracting over 400 local suppliers for the acquisition of good and services, such as construction materials, garments, security and transportation services, and vehicle maintenance, skilled job creation guarantees the generation of a local work network, fostering the sustainable growth of community, province, and state because everyone works together to build the economy. Likewise, one of the most important attributes of the Project is its social aspect. While hiring is aimed at generating quality employment, it is also structured around the decisions and constant monitoring of the Strategic Alliance, guaranteeing legitimate and transparent relationships between collaborators, community, and the Company that work toward progress and collective well-being. Currently, mining is the fourth most important area of Ecuador's total exports and represents 40% of foreign investment in 2020 (this percentage continues to increase). Mining is a key industry for the economic development of the country as reflected through Solaris’ hiring with an increase of 61.68% in the hiring of employees on payroll from January to December 2021, with a total variation of 144.52% of the workforce during the same period. This increase provides evidence of the impact and opportunities represented by the Warintza Project for both the community and the nation. UN Women’s Empowerment Principles In March 2021, Solaris adopted the United Nations Women’s Empowerment Principles (WEPs) as part of its commitment to promoting gender equality and women’s empowerment in the workplace, marketplace, and community. We believe that we have an important stake in and a responsibility for gender equality and women’s empowerment in the workplace, specifically in the mining industry. By joining the WEPs community, Solaris signals the commitment of management to work collaboratively in multistakeholder networks to foster business practices that empower women. WEPs are a primary vehicle for corporate delivery on gender equality dimensions of the 2030 agenda and United Nations Sustainable Development Goals.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
Optional commentTopics mentioned in a non specific way in our sustainability policy. https://www.solarisresources.com/_resources/governance/Solaris-Sustainability-Policy-FINAL-April-14-2021.pdf1.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
Optional commentProgress to be reported through annual sustainability report.5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
Optional commentSolaris carried out its first GHG inventory for the period 01/05/2020 to 30/04/2021. Solaris has received a certification from Carbono Negativo, 100% Carbon Neutral Programa Internacional. Productive areas: 6000 m2 Location : Quito, Macas, Exploration camps : Piunts, Oso, Entza, Warintza sur, Trinche7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Optional commentMining - explorationSector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Sector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Optional commenthttps://www.solarisresources.com/news/local-news/lowell-announces-agreement-with-wildlife-conservation-society-to-develop-a-biodiversity-management-strategy-at-the-warintza-projectSector-specific: Air pollution
17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.
Sector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
Solaris seeks to minimize and prevent any environmental impacts, foster environmental awareness in all personnel and conduct monitoring of all activities as outlined in the environmental management plan. We monitor compliance on a monthly basis and take actions to prevent, mitigate, control, compensate and correct, any impacts related to our operations. Solaris is committed to compliance with Ecuadorian Environmental frameworks and regulations to conduct exploration activities in our concessions. Specifically, this involves administrative acts such as, but not limited to: no impact on water sources, use of water for human consumption and industrial use (drilling), environmental registration for the initial exploration phase and update for Scout drilling, certificate of non-intersection with protected areas, forest inventory, hazardous waste generator registry, biotic permit for Advanced Exploration Phase (in application), authorization for archaeological studies, transfer of mineral resource and fuel permit.. Solaris has not identified any non-compliance with environmental laws and/or regulations. Solaris' operations are at the exploration level; however, the Company strives to acquire goods and services that are aligned with sustainability designs, incorporating environmentally friendly technologies. For instance, Solaris instruments its commitment to maximize the potential for efficiencies derived from renewable, low-cost energy sources through its recently signed Memorandum of Understanding with Electric Corporation of Ecuador (CELEC EP) to study the potential for electrification of infrastructure, mobile mining equipment, including drills, trucks and shovels, materials movement, and conveyance, including gravity-assisted solutions, and processing and pumping systems. Solaris intends for CELEC EP to supply low-cost, locally sourced hydroelectric power from the National Transmission System in Ecuador to the Warintza Project. This initiative dovetails with the “Ecuador Zero Carbon Program” developed by the Ministry of Environment, Water and Ecological Transition and the National Decarbonization Pact of which Solaris was the first mining signatory in September 2021. Solaris’ environmental management plan is made up of individual management plans that have their own key performance indicators, means of verification and registered frequency. Among these are plans for: Waste management We ensure adequate control of waste production and registry. We have established infrastructure for hazardous and non-hazardous waste storage, control the transport of waste, including delivery and proper declaration, and treat waste generated from drilling according to environmental regulations. Prevention and mitigation of environmental impacts We conduct regular maintenance of drilling equipment, latrines, and biodigester. We ensure additives are environment friendly and stored appropriately and conduct proper management of any potential archaeological remains found. We conduct controls on water at collection points and ensure adequate construction of roads and platforms in compliance with norms and regulations. Contingency management We conduct risk assessments for incidents, including spills or improper waste management. We have developed a formal protocol for contingencies. We conduct training to Company staff, contractors, and visitors. Personnel training and communications We conduct a training program for all personnel and new employees and carry out training specifically on contingency management and proper conduct around wildlife (prohibition of capture, harassment, hunting, and fishing of wildlife). Follow up and monitoring Twice a year, we present our EMP and compliance report to the Ecuadorian environmental authorities. We monitor soil, water, and noise quality across all our concessions, as well as wastewater quality at discharge points. • Community relations: We carry out a socioeconomic baseline study prior to work on site to account for the conditions of the communities in the Project’s area of influence. We hold quarterly community informational sessions in compliance with our EMP, hold workshops to inform the local communities in our area of influence about our local hiring protocol and conduct joint environmental monitoring sessions with the community. • Closing and abandonment: At the project’s closure stage, we ensure that no environmental damage was caused to the ecosystems in all the intervened areas, by conducting environmental and biotic monitoring and forest rehabilitation in all our platforms and camp sites. As of the end of 2021, the Company maintains 91.96% compliance with the Environmental Management Plan Participatory environmental management system While socialization of the environmental license is required by regulation, Solaris has intentionally worked on the license hand in hand with the community. Consistent with its participatory mining model, Solaris ensures that the environmental license guides, socializes and monitors all initiatives. Accordingly, and per Ecuadorian environmental regulations, the Solaris environmental team, together with the community relations team, carry out four socialization initiatives a year (one each quarter). During these initiatives, various regulated-related topics are covered (how, when, under what parameters, etc.) in person to facilitate community learning and monitoring of the process. Likewise, the project has a management plan for social and environmental accidents. Initiated and led by the corresponding area, this plan consists of developing, implementing and monitoring mitigation and remediation procedures within the areas of interest. Both initiatives are structured under directives and guidelines defined during Strategic Alliance meetings between Solaris and the Board of Directors to guarantee that all environment-related actions have the understanding and endorsement of both parties and seek collective improvement and well being. Operations and security: Responsible for applying and mitigating a remediation plan with actions that are coordinated with and executed in the areas of interest. Environment: Responsible for implementing the environmental management plan and coordinating and articulating related actions. Community Relations: A meeting the Board of Directors and Leaders is convened, and initial incongruencies are reported (activating an interdisciplinary Solaris team) through the Community Relations work team. Then, roadmap timelines and deadlines are specified to keep residents informed. Subsequently, the Board of Directors, in accordance with policy, convenes and holds community assemblies to communicate this information. If required by community leaders, the Solaris team is invited, and information and an explanation of the events is provided by the Board.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
Optional commentAnti Corruption and Anti Bribery Policy https://www.solarisresources.com/_resources/governance/Solaris-Anti-Bribery-Anti-Corruption-FINAL-April-14-2021.pdf2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Optional commenthttps://www.solarisresources.com/_resources/governance/Solaris-Anti-Bribery-Anti-Corruption-FINAL-April-14-2021.pdfPrevention
3. Who receives training on anti-corruption and integrity?
Optional commentAnti corruption training in 2021 for executive management in Canada and management in Ecuador3.1. How often is such training provided?
Optional commentLast training was conducted in 20214. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
Optional commentNo incidents of corruption recorded in the reporting period.6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
• Anti bribery and corruption training was conducted by Grant Thornton in Canada and by CPA consultorants in Ecuador and provided to all executives and management. Topics covered included: Jurisdictional Review, Key Legislation, Regulatory Guidance, Anti-corruption Program, Current Solaris Program and Risk Considerations. • Operations and business activities are assessed regularly to ensure compliance with the requirements of our Anti-Corruption and Anti-Bribery Policy and applicable procedures and guidelines. • Solaris promotes prompt reporting under the Company's Whistleblower Policy. • In 2021, zero instances of fraud were reported to the Audit Committee and legal actions were carried out for anti-competitive behaviour, anti-trust, or monopolistic practices.