MAG is committed to the highest level of governance and have developed a number of policies that guide us as we strive to create safe working environments that value diversity, equality, inclusion, integrity and respect for all. Our Code of Business Conduct and Ethics underpins the standards of conduct that MAG expects from our board members, officers, employees, contractors and suppliers. Our governance mandates, charters and policies can be found here.

ESG Oversight

MAG's ESG efforts are led by members of senior leadership representing internal stakeholders and reporting directly to the CEO. At the Board level, the Health, Safety, Environment and Social Responsibility (HSEC) Committee oversees ESG activities and discusses issues during every HSEC meeting. Other Board Committees, Governance and Nomination Committee, Audit Committee, also exercise oversight over some aspects of our ESG activities. Read MAG's HSEC Policy to learn more.

Sustainability Strategy

MAG Silver’s Health, Safety, Environment and Social Responsibility Policies establish the foundation of our Sustainability Strategy and clearly communicate the Company’s expectations for employees, directors, consultants and contractors providing services for or on behalf of the Company.

During 2022, MAG Silver implemented its Sustainable Development Plan consisting of a staged approach designed to strengthen the Sustainability Strategy and performance. This has been accomplished by:

• Increasing public disclosure of our health, safety and environmental performance data
• Updating policies—Human Rights, Diversity, Equity & Inclusion and updated sections of the Code
• Developing and enhancing management systems and programs
• Seeking new ways to proactively engage with internal and external stakeholders for input to the discussions over material sustainability topics and stakeholder concerns.

2022 Material ESG Topics

Governance and Management

HSEC Committee

MAG’s HSEC Committee assists the Board in its oversight of (a) the risks, challenges and opportunities to the Company’s business associated with health, safety, environmental and social responsibility (including human rights and community engagement) matters; (b) the Company’s sustainability conduct, including health, safety, environmental and social responsibility policies and programs, and performance in such areas; (c) the Company’s compliance with applicable legal and regulatory requirements associated with health, safety, environmental and human rights matters; and (d) the Company’s external reporting in relation to health, safety, environmental and social responsibility matters.

A more comprehensive description of the HSEC committee responsibilities is described in the HSEC Committee Charter.

Technical Committee

MAG’s Technical Committee assists the Board in its oversight of responsibilities with respect to the Company’s operational performance and operating risks from a technical perspective. The Committee will, among other things, a) review and monitor the Company’s closure planning and reclamation obligations; b) In conjunction with the Company’s Health, Safety, Environment and Community Committee, review technical aspects of safety and environmental risks, specifically climate change impacts and tailings management; c) Verify that management has identified the principal operating risks; monitor management’s risk management processes to address such risks.

A more comprehensive list of Technical Committee commitments is described in our Technical Committee Charter.

Risk Management

MAG is committed to improving its ability to create, enhance and protect enterprise value through the regular identification and management of risks in carrying on its business. MAG recognizes that risks represent both opportunities and threats, and therefore an effective, enterprise-wide risk management program is essential to enable the Company to pursue its strategic objectives and realize operational goals within an acceptable range of associated risk. An Enterprise Risk Advisory Committee (ERAC), made up of 5 members of the MAG management team, oversees the processes that are in place to identify significant risks to the Company and confirm procedures are in place to mitigate the impact of these risks. The ERAC committee is responsible for reporting on the summary principal risks and mitigation strategies periodically to the Audit Committee and to the Board at least annually, or more frequently as requested.

More of our Enterprise Risk Management Policy and Commitments are described in our policy.

Transparency

Under the Canadian Extractive Sector Transparency Measures Act (ESTMA), MAG is required to publicly disclose, on an annual basis, payments made to governments in the countries where we operate. Since 2016, the first year of ESTMA, MAG has been reporting these payments which are listed in our Financial Reports under ESTMA.

Whistleblower Protection

MAG has a 24-7 Whistleblower hotline through Integrity Counts, a Canadian provider of global ethics reporting services, as an independent and external administrator of this helpline to allow any employee, contractor or member of the public who becomes aware of a violation of the MAG Code of Business Conduct and Ethics, violations of other internal policies or guidelines or violations of any applicable law or regulations to anonymously report suspected violations. Submissions can be made in English or Spanish.

More of our Whistleblower Policy and procedures are described here.