Thank you for standing by. This is the conference operator. Welcome to the Pan American Silver's ESG Investor Update conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. At any time during the presentation, you can submit a question via the webcast platform only by typing it in the box on the bottom left side of the page and hitting Submit Question when done. I would now like to turn the conference over to Siren Fisekci, Vice President, Investor Relations and Corporate Communications, for opening remarks. Please go ahead.
Thank you, operator, and welcome everyone to our ESG call. A slide presentation to support today's discussion is available through the webcast and on our website under Events and Presentations. Joining the call from Pan American Silver are Michael Steinmann, President and Chief Executive Officer, and Brent Bergeron, Senior Vice President, Corporate Affairs and Sustainability. Today's presentation is intended to provide an update on our company's sustainability governance and management approach, our sustainability performance, including an update on the progress on our 22 ESG goals, and a deep dive into how we are managing and performing on some of our material topics, including health and safety, climate and energy, and community relations. At the conclusion of the presentation, members of our senior management team will be available for questions and answers.
Before we begin, I'd like to remind you that today's call and presentation slides contain content that constitutes forward-looking statements and information. Please review the cautionary statements included in our presentation, as well as the risk factors described in our most recent Form 40-F and annual information form. I will now turn the call over to Pan American Silver's President and CEO, Michael Steinmann, to lead us into this ESG update. Michael?
Thank you, Siren. Pan American Silver provides enhanced exposure to silver through a large base of reserves and resources and major catalysts to grow our silver production. We own and operate silver and gold mines in Mexico, Peru, Bolivia, Argentina, and Canada. We also own the Escobal Mine in Guatemala that is currently not operating. Silver is an essential and versatile metal in today's economy. Silver has the highest electrical and thermal conductivity of all metals, making it an important metal in the global transition to decarbonization and electrification. Approximately 11% of the global silver supply is currently being used in photovoltaic panels for solar power generation, while another 33% or so is being used in other electrical applications, such as electrical componentry for electric vehicles. Silver is also a key component in the build-out of 5G networks, the next major evolution in communication technology.
In total, 52% of worldwide silver production is used in industrial applications, and this is expected to grow with the transition to a more electrified world. About 25% of silver is for investment purposes and about 23% for jewelry and silverware. Pan American Silver has the reserves and projects to provide metals critical to the decarbonization of our economies, and our commitment is to develop those metals in a responsible, safe, and sustainable manner. Over our 28-year history of mining in the Americas, we have earned an industry-leading reputation for sustainability performance, operational excellence, and prudent financial management. A strong ESG focus is fundamental to our strategy. We provide transparent disclosure on our performance and goals.
We are implementing industry best practices such as the Mining Association of Canada's Toward Sustainable Mining or TSM protocols, the voluntary principles for security and human rights, and the World Gold Council Conflict-Free Standard. Good governance starts at the board level and translates through to all of our sites and administrative offices. Our board-level policy commitments and corporate standards are based on industry best practices, international norms, and performance standards. In 2021, the board of directors established a new committee, the Community and Sustainable Development Committee, or CSD Committee, to increase our focus on ESG-related issues, policies, practices, and disclosure. The CSD Committee, in conjunction with Health, Safety, and Environment Committee and the Nominating and Governance Committee, oversee and make recommendations to the board with respect to our ESG approach.
To this end, the CSD Committee reviews and discusses on a quarterly basis the ESG performance and ESG risk exposure by monitoring the sustainability performance indicators and by reviewing the sustainability-related audits that we undertake internally. In 2021, we also formalized our ESG committee, a cross-functional management committee that reports to me. The main purpose of this committee is to enhance Pan American Silver's ESG performance. The ESG committee supports executive management in the development, implementation, and update of the company's ESG policies, programs, and initiatives. It also monitors and assesses the company's risk exposure to ESG matters, including climate-related risks. Our ESG performance is directly linked to compensation. 35% of our annual incentive plan for senior management is tied to ESG metrics, including environment, health and safety, and inclusion and diversity targets, as well as attaining A-level ratings on Towards Sustainable Mining protocols at all operations.
These objectives have been approved by the board. ESG performance and reporting have long been at the core of our approach for long-term sustainability. For over a decade, we have produced sustainability reports that detailed our management approach and performance within the context of our overall sustainability and business strategies. Reports have been prepared in accordance with the Global Reporting Initiative or GRI standards. In response to stakeholder and investors' interest in additional ESG disclosure, our recent reports align with the Sustainability Accounting Standards Board or SASB standards, and the Task Force on Climate-related Financial Disclosures or TCFD reporting frameworks. Our report also serves as our communication and progress for the United Nations Global Compact. We continue to support initiatives that help advance our sustainability performance and contribute to broader sustainable development.
We are pleased to announce that in May of this year, Pan American Silver was officially confirmed as a signatory to the Voluntary Principles on Security and Human Rights. The Voluntary Principles on Security and Human Rights are a set of guidelines by which companies in the extractive sector can maintain the safety and security of their operations while ensuring respect for human rights and fundamental freedoms. Pan American Silver has been implementing these principles at all its operations since late 2020. As of January 2022, all of the company's operations were compliant with the principles. We will be conducting annual audits of our implementation and report progress in our annual sustainability report. Our efforts to improve our ESG performance and reporting are being recognized. Our ratings by the major ESG rating agencies have improved across the board compared with prior years.
Most recently, S&P Global just released its 2022 ESG score for Pan American Silver that puts the company in the top 10% in the metals and mining industry. We scored 68 out of 100, reflecting improvement of 12 points over 2021. This most recent increase in our S&P Global score will result in an additional favorable pricing adjustment to our $500 million sustainability-linked credit facility, which remains undrawn. Pan American Silver currently places in the top quartile among our metals and mining peers in most of the ESG ratings. With that, I will now turn the call over to Brent Bergeron to discuss our 2021 highlights and provide an update on our 2022 ESG goals. Brent?
Thank you, Michael. At Pan American Silver, our corporate sustainability goals are set annually in collaboration with our operations team. These goals foster an understanding and a commitment by our teams who carry out day-to-day business and site activities. Performance against these goals is reported in our annual sustainability report. Despite challenges and setbacks, due to the COVID-19 pandemic, we met 21 of our 27 goals in 2021. Unfortunately, we did not achieve our primary health and safety goal as we had four fatal accidents at our operation. Later in this call, we will discuss safety and the measures we are taking to improve performance in this critical area. In regards to our environmental performance, we made significant improvements, reducing GHG emissions by 11% and achieving our target of reducing energy consumption by 7% compared to the 2021 base case.
We reduced water consumption by 10% compared to the 2021 base case, and we achieved a net positive impact on vegetation and biodiversity across sites through rehabilitation and restoration of 85 hectares of land. Furthermore, we've updated our environmental policy to better align our strategy with ESG expectations from investors, communities, and rating agencies. On the social front, we actively engage with communities to better understand their priorities and to invest in initiatives that will provide lasting benefits, such as technical skills to increase local food production. For instance, since 2020, we have been working with communities near our Shahuindo mine in Peru to boost avocado production in the region. The main objective is to encourage a sustainable source of income for 500 local producers. Through training to improve productive techniques and by facilitating access to markets.
Our community investments are voluntary contributions that in addition to a portion of the taxes and royalties paid to government, provide social benefits to communities near our operations. These investments are meant to be sustainable, defined by the communities themselves, and aligned with our business objectives. In 2021, our community investments totaled $11.2 million. In 2021, we continued to promote inclusion and diversity within our workforce. Our Building Respect Together program is designed to help us foster an inclusive organizational culture. Last year, we completed the first module of the program, providing training to each and every one of our employees and contractors. As you may recall, we set a corporate goal around implementation of the TSM framework at all of our mines, and despite COVID-related delays and restrictions, four of the nine operations achieved level A in all protocols.
The remaining five sites achieved 95% of the level A requirement by the end of 2021. I would like to take this opportunity to also provide a brief overview of our performance to date on our 2022 ESG goals. Of note, in 2022, we have aligned our ESG goals with the ten global compact principles and our prioritized United Nations Sustainable Development Goals, SDGs. On the environmental front, we are on track to meet seven of our nine goals this year, including a reduction of 13% in GHG emissions compared to the 2022 base case as of June 30th, largely due to the company's ability to procure a renewable energy source for 100% of the purchase electricity for our operations in Mexico.
However, we do not expect to meet our biodiversity goal of 100 hectares of reforestation or revegetation across all of our sites, mainly due to delays in defining areas for reclamation with local communities. We will not reach all our health and safety goals. Sadly, we've had two tragic fatal accidents, one at our Huaron mine and one at our Dolores mine this year. We are on target to meet our 2022 social goals and have deployed close to $6 million of our community investment budget during the first six months of the year. Progress on our governance goal is also on track. We are on target to assess over 75% of our historical critical suppliers through our supplier due diligence system by the end of 2022.
With that, I'll pass the call back over to Michael to give us an update on health and safety performance at Pan American Silver. Michael?
Thanks, Brent. Safety is always our priority. We strive to prevent workplace injuries by continuously improving our safety systems, training and processes, and adopting leading technologies. As the company is decentralized, each operation is responsible for implementing safety management systems and procedures that meet or exceed local regulations, as well as the company's values and safety objectives. All operations have implemented the TSM safety and health protocol. As previously discussed, the Huaron, San Vicente, La Colorada, and Morococha mines each experienced one fatality in 2021. In each instance, we conducted an in-depth root cause analysis, which was used to develop corrective and preventive actions.
To protect the health and safety of all Pan American Silver's employees and contractors, we're advancing several additional safety initiatives, which include improving and developing our leadership skills, expanding the knowledge and technical abilities of our workforce, and reviewing the way that we identify, evaluate, and manage risks in the workplace. As an example of this work, we recently created a task force of corporate and site safety managers who are in the process of designing and rolling out a serious injury and fatality preventive program. The program will incorporate performance metrics to assess the effectiveness of our controls. Our health and safety supervisor training program, which provides leadership and technical training, has undergone recent changes too. At our Morococha mine, which is currently on care and maintenance, we are training our Latin America-based supervisors in person.
Bringing people together allows us to provide a consistent level of training and allows workers to share learning, best practices, and innovations that can help improve safety performance across our operations. In addition, we relaunched our corporate safety audits, which have been paused since 2020 due to COVID-19 restrictions. These audits include annual health and safety audits at each mine. Audits are conducted by a corporate safety department team led by the director of health and safety. Several operations have implemented or are currently implementing behavior-based programs to help create the safety awareness that prioritizes injury prevention and support workers in consistently making safe choices. For example, our behavior-based safety program in Peru seeks to empower all personnel in taking a more active role in their own safety by building a culture that encourages them to make safe choices throughout their lives, both at work and at home.
Finally, in 2022, we applied to join the Mining Safety Round Table in Canada. Through this group of 15 other mining companies, we look forward to sharing learnings to advance the safety performance of the industry. With that, I will now turn the call back to Brent to provide updates on two other key material topics, climate change and energy, and relationship with communities. Brent, please.
Thanks, Michael. We recognize that climate change is a global threat with potential impacts to our business and many of our communities of interest. Pan American Silver is committed to actions that reduce emissions, as well as reducing our climate risk through innovative solutions. Our climate change strategy is based on three objectives to reduce greenhouse gas emissions, to improve our climate change readiness, and to continue to enhance our climate-related public disclosure. With respect to reducing our GHG emissions, we have set a medium-term goal of reducing our global GHG Scope 1 and 2 emissions by at least 30% by 2030 from our 2019 baseline emissions. We are also committed to taking actions that will help us achieve our aspirational objective of net zero carbon dioxide equivalent emissions by 2050.
We will continue to monitor the development of viable technological and offset solutions to climate change with the intention of reaching net zero emissions by 2050 or earlier. Our approach to achieving our 30% by 2030 target requires the following initiatives. 20%-25% reductions from portfolio optimization and transitioning to operations with lower emissions intensity. 5%-10% reductions through the transition of energy supply to renewable sources where appropriate and available. 5%-10% reduction through the electrification of fossil fuel-driven equipment and processes and energy efficiency projects. Our reduction estimates is based on long-term energy and emission profiles developed for each of our assets, combined with the expected increase in the adoption of electrification and the outlook for electricity generation with lower emission intensity.
Setting annual operations levels reduction targets and creating energy and emission reduction projects at all of our operations are helping us achieve our targets. As mentioned previously, we exceeded our 2021 energy goal of a 0.3% reduction in energy use and met our goal of an 11% reduction in GHG emission estimates compared to the 2021 base case. Energy reduction projects completed in 2021 included completing the switch from propane to compressed natural gas at our Timmins operation, and completing the grid connection of a remote water treatment plant at La Arena mine and a camp at Shahuindo, reducing GHG emissions at both sites. It is important to note that although we met our 2021 goals, our overall Scope 1 and 2 GHG emissions increased relative to 2020 due to higher production.
However, our energy intensity has declined through improved production efficiencies. On an ongoing basis, we will work collaboratively with our operations management team, subject matter experts, and relevant site workforce to plan for, identify, and monitor each site's potential exposure to material climate change hazards. This collaborative effort will also help us monitor and evaluate the effectiveness of existing operational mine water management plans and consider opportunities to improve these plans, which already account for annual and seasonal variability, emergency response planning, and mine closure planning. In 2020, we signed on as a supporter of the TCFD and began implementing its recommendation, including establishing a framework for governance on climate risks, conducting climate change risk assessments, and further integrating climate change into our business objectives and decision-making.
In addition, we are committed to providing stakeholders with greater visibility in our performance and into the potential long-term impacts that climate change may have on our business. Going forward, we will continue to adapt our climate change strategy appropriately and effectively according to best practices and understanding. We will also continue to report on our emission estimates, reduction targets, climate risk, and update to our strategy. Turning to slide 13, Pan American Silver is committed to fostering trusting and effective long-term relationship with communities and indigenous people. Throughout the mining cycle, we engage in open and inclusive dialogue, adhere to ethical and sustainable business practices, and create partnerships that generate mutual benefits. Our objective is to establish a positive legacy in the areas where we operate. To further embed this objective, in 2021, we created our Social Sustainability Policy.
This board-level policy, which replaces our CSR policy, incorporates international standards and best practices and is intended to address expectations of our communities of interest. It also formalizes our commitments to engaging with and managing impacts on host communities. The policy contains other specific commitments to working with indigenous people and responsibly managing mine closure, resettlement, and water use, as well as respecting cultural heritage. It also commits us to report our progress on meaningful social sustainability goals and targets. Our community response mechanism provides a means through which community members can engage with our operations. We review and classify all feedback received, which generally falls into the categories of requests, including requests for employment opportunities and donations or complaints or grievances. Grievances should be acknowledged within 15 days of receipt and should be resolved within 90 days of receipt.
As mentioned before, we remain on track to resolve all medium and high-risk grievances within our targeted timeframe. Supporting host communities is a fundamental aspect of our social management approach. We have been actively engaging with and listening to our key stakeholders, including the most vulnerable families in our communities of interest, to better understand the effects of the COVID-19 pandemic and identify how to best support their needs. In 2021, we pledged $750,000 to UNICEF Canada's Give A Vax campaign to support the distribution of COVID-19 vaccines to low and middle-income countries, with particular emphasis on Peru and Guatemala. We also facilitated access to vaccinations for our own employees. In 2022, we continue to expand our socioeconomic programs and projects that contribute to long-term community well-being and self-reliance.
We would like to take this opportunity to provide you with an update on the ILO 169 consultation process for Escobal, the silver mine in Guatemala that is currently not operating and became part of our portfolio through our acquisition of Tahoe Resources in 2019. In 2017, prior to our acquisition, Escobal's mining license was suspended. The Constitutional Court of Guatemala determined that the Guatemalan Ministry of Energy and Mines must conduct an ILO 169 consultation process with the Xinka indigenous peoples before the mining license for Escobal can be reinstated. The ILO 169 consultation process for Escobal began in 2021 with a series of meetings held over the course of the year and into 2022.
The Xinka indigenous communities, the Ministry of Energy and Mines, and PAS Guatemala, the company's Guatemalan subsidiary, are key participants along with other regional and national government representatives. On July 20th, 2022, the Ministry of Energy and Mines and the Xinka Parliament held a joint press conference announcing advancements in the process. In the upcoming meetings, we expect government institutions and the company will provide information related to the project, and Xinka representatives will analyze the information with expert consultants. Pan American Silver respects indigenous people's rights to consultation, and we look forward to participating in the ILO 169 consultation process in good faith. The ILO consultation process is led by the government of Guatemala, and we do not have any control over the timing. At this time, no date has been set for the potential restart of operations at Escobal.
With that, I'll turn it back over to Michael for closing remarks. Michael?
Thank you, Brent. I want to close by saying how proud I am of the work that Pan American Silver's team have done to deliver on our ESG commitments during the continued challenges created by COVID-19. I hope this presentation has demonstrated our efforts to apply high standards of sustainability across the organization. We have also worked hard in the past few years to improve the quality of our ESG data and disclosures to better convey information on our performance. We invite you to have a look at our 2021 sustainability report to learn more about our approach to other material ESG topics not covered in today's presentation. While written reports are necessary and useful, we welcome opportunities like this one today to engage in conversations about our ESG successes and challenges, and to provide examples of how we drive value for stakeholders.
I am confident that by adhering to our values, listening to our stakeholders, and working collaboratively, we will continue to demonstrate sustainability leadership. As we progress in our ESG journey, we look forward to future opportunities for dialogue and to update you on our performance. Thank you for joining the call today. With that, I will be happy to answer submitted questions. I'll turn the call over to Siren to help us moderate the Q&A portion of this call. Siren?
Thanks, Michael. As a reminder, you can submit your question via the webcast platform by typing it in the box on the bottom left side of the page and by hitting Submit Question when done. Our first question is, what would you estimate to be the timeline for the negotiations for the reopening of the Escobal mine? What is the government doing to facilitate that project?
Thanks, Siren, thanks for the question. Sean, can I pass it on to you, please?
Yeah, thank you, Michael. Right now we're involved in the ILO 169 consultation process, and as we mentioned during the presentation, the activity is ongoing. We expect to have another meeting on October 16th, and at that meeting, the government institutions will be providing information from the Ministries of Culture and the Ministry of Health. We expect additional meetings to the end of the year where the company and other government institutions will provide information. Obviously, we don't have a timeline for the completion of the process or restart of the Escobal mine, but the process is ongoing.
Okay. Thank you, Sean.
Thanks, Sean.
Yeah. Go ahead, Siren.
Next question. Can you address the problem of safety for women in communities nearby Pan American mines? Man camps at mining companies always contribute to sexual assaults on women.
I will pass that to Monica, please. Could you answer that?
Thank you, Michael, and thank you to Chris for the question. It's actually an interesting question for us because I would say that potentially could. I don't think that always contribute to these type of situations, but because of that potential, Pan American, in the last year and a half, deployed some protocols around this. I have to say that most of our mines, our camps are actually isolated from the communities and they're not right beside the community. It's not a likely situation for us. But wherever they are, we actually identify that. We had a particular case where we actually brought a lot of contractors at the same time and specifically work with the community, with the women in the community and develop a protocol of control of that people. We actually moved the camp.
We were supposed to put it closer to a community, and because of this type of concerns, we actually moved the camp of contractors for the time being that was being used. It was actually a very successful protocol. Thank you for the question 'cause it's actually that's something that we actually considered a long time ago, and we were able to deploy something last year.
Thanks, Monica. Next question. Will Pan American consider having a whole of mine life approach to its mining legacy operations?
Matt, can you give us some details on our, like, mine life and closure activities, please?
Yeah, sure, Michael. Yeah, that's also a great question. We have Alamo Dorado, I guess, is our best example of this, where we have, you know, we're in the post-closure phase on that operation or that legacy site, I guess you could call it. I think, you know, that's in a stable situation right now. We've completed the social and technical closure of that operation. I think, yeah, we've definitely learned a lot of great lessons out of that process. The team that completed that work is now working on our other mines. We're applying those lessons learned from that process to our other operations.
I think, yeah, we have a lot of potential for creative solutions to closing our mines and I think Alamo Dorado has been a great example for us.
Thank you, Matt.
Great. Thanks, Matt. Next question. Could you please explain to us how impactful the change in the governance structure of Pan American has been in 2021 with the appointment of the new board chair, Gillian Winckler, the creation of the new Communities and Sustainable Development Committee, and the publication of Pan American's first report under the UN Global Compact? In what way do these changes in disclosure support a more robust approach to handling human rights risks and community engagement?
Yeah, thank you, sir. I'll take that. Yeah, a lot of changes. Of course, a year and a half, Ross Beaty retired as the chair and founder of the company, is not involved anymore on the board neither, and was replaced by our new great board chair, Gillian Winckler. With that change, we brought on two additional amazing female directors to our board. We are now nearly 40% female participation on our board, which has been, you know, a great addition to our board. We also set, I think it was in March 2022, a formal target by the board to always have at least a representation of women on the board of 30%. That was a great change.
As mentioned in our call and in a question, we started a new committee in 2021 with the board, Communities and Sustainable Development Committee or CSD. It's really that committee together with our HSE committee, the Nominating and Governance committee, Human Resources and Compensation committee that has the oversight here, in by the board over our entire ESG approach really. Changes to that allowed really the CSD committee to go much deeper and in more details and allow the board to even further engage with management on our ESG questions. Great addition of this committee for us.
Relating to the United Nations Global Compact, it's 2021 is actually our second consecutive year in which we published our United Nations Global Compact Communication on Progress, so that this will now continue every year in our report, and has been a great addition as well for us.
Thanks, Michael. Another question here. How do Pan American's governance and corporate management structures support the management of human rights risks, particularly as it relates to relationships with communities and indigenous peoples?
Brent, could you start and answer this question, please?
Sure. Thank you, Michael. Another good question. Just to add a little bit more on this, from what Michael said in his previous response, one of the things that we were looking for at Pan American was to increase the governance and the oversight of sustainability, and especially at the board level, 'cause we all know that one of the important parts of how a company functions is how we look at tone at the top of the corporation and also from the board and from the senior management, how that actually goes down through our entire organization.
you know, implementing both a global human rights policy over the past years and also our new social sustainability policies, we made sure that these policies did contain very explicit commitments for us to respect and support, you know, especially internationally recognized human rights laws and standards, which was really important for us given that our operation is at the international level. To be able to make sure that what we do on an ongoing basis at our sites always recognizes and respects the rights, the cultural values, the beliefs, the knowledge, and also the tradition of indigenous people in different areas where we operate, because we do have that type of relations in many of our operations.
I think those are our different things that we're doing right now, making sure that there is accountability from the top, but there is also very good tone from the top that is going down throughout the entire organization. We've put several processes in place to be able to achieve this directly from the site level. You know, our ongoing engagement with our communities of interest, making sure that when we do have different processes such as baselines, cultural studies, perception assessments, that this is done in a way that the communities are actually participating with us, which we believe is extremely important.
Also, in terms of some of the community and since a lot of our employees are part of those communities, the response mechanisms that we have both inside and outside the mine site become extremely important for us to make sure that communities and workers have the ability to voice any type of concern that they have, and looking at any type of impact that can come from our operation, to make sure that we understand and we have the ability, as we mentioned before, in terms of our requests for information or grievance systems, that we do respond back to these different groups. All of this, I would say, has been extremely important for us in terms of being able to train the workers and the teams at our sites with all of these types of process.
It's very important for us that we also improve our ability to understand, you know, the priorities at our communities, be able to manage those risks, respond to concerns, and be able to implement programs that will really contribute to the sustainable development in the areas where we do operate. I would say that those are the different types of things that, you know, are really incorporated in all the processes that we currently put in place.
Thanks, Brent. Another related question here. Can you please explain the different levels of human rights due diligence that are taking place? What is the process in place to scale up human rights due diligence processes at operations and at the procurement or supplier level?
Christopher, could you take this question, please?
Thanks, Michael. Firstly, we have our global human rights policy, and it commits us to conducting ongoing human rights due diligence. In 2019, we appointed a human rights officer, Lucia Valenzuela, who's based in Guatemala and reports to me as general counsel. Under Lucia's guidance, we continue to advance and improve our human rights due diligence and assessment processes. Our due diligence approach is transversal and progressive, and is embedded within our existing risk processes and systems. I'll just give some examples. Through our human resource procedures, we screen for child and forced labor at our operations. We conduct sustainability audits, and through these we screen for risks to human rights from our operations, including the effects of our social programs on vulnerable groups.
We also do country risk level assessments, where we identify and assess environmental, social, community and labor risks that present actual or potential human rights impacts. We also have an extensive supplier screening program. We require suppliers to have human rights policies and provide examples of their implementation. I just wanna stress that complying with our human rights policy and supplier code of conduct are preconditions for a supplier to work for Pan American Silver. If certain risk factors are identified, we conduct additional due diligence to better understand those risks and determine whether the risk factor is still outstanding. We always reserve the right to terminate contracts with suppliers that pose significant risks or fail to abide by our human rights policy or our supplier code.
We do conduct annual due diligence reviews, and our supplier due diligence service provider in fact conducts ongoing monitoring of corruption risks, and we're alerted to any concerns that are raised. We do security contractor assessments. We review the relationships with armed private security contractors with public security entities. As mentioned by Michael, we are signatory to the Voluntary Principles on Security and Human Rights, and we constantly monitor contractor compliance with these principles. Finally, when we're doing any kind of acquisition or joint venture, we conduct extensive due diligence before entering any agreements. Now, while our human rights program is extensive, we are constantly adapting and improving these processes.
Thanks, Christopher. We have another question here. How does Pan American's culture influence the approach it takes with community relations on issues such as jobs, training, procurement, environmental and social impact and heritage? How is Pan American translating its corporate values into community engagement? How is Pan American embedding its values into its operations and interaction with external stakeholders and local communities?
Yes.
How is Pan-
Oh, sorry.
Okay. It's a pretty long question, but I think that's the essence of it.
I think we discussed on the corporate level how we deal with our culture and basically translate that from a bottom up way to our mines. Our mines come, you know, up with our reports, with our goals and work on that while we from the head office obviously have a supervisory role and give with the board, like the big guidance for the company. That's like from the corporate side. Maybe, Brent, do you wanna answer here a bit more from the operating side, what we do to kind of distribute this culture and the approach we have from the head office to our operations?
Yeah, absolutely, Michael. Thank you. I'd say that one of the important pieces of work that we do on an ongoing basis on an annual basis, and it is ongoing, is the materiality assessment that we do with a lot of our stakeholders. Of course, one of the important stakeholders in that materiality assessment is actually the communities where we operate. With that materiality assessment, of course, we try and do is make sure that you know, some of the concerns that are being brought in, and some of this may have to do with the more of the aspect of how the community perceives whether it's the benefits or the impact of the mine.
Those different factors are communicated every year to our senior management team. We do an assessment as to see how we are actually aligned from the corporate level to all the way down to the sites where we operate. I think that that's how we've been able to actually embed a lot of the culture whether it's at the corporate level or whether it's at the community level, and bring them closer together in terms of the overall expectations. I think that many companies, many mining companies do this type of work, and I do believe that it is an important part of being able to share that culture.
Now, what I'll also mention is that when you take a look at our senior management team, we do have quite a bit of people who have done quite a bit of work during their careers in different countries, especially Latin America, where we operate. That's given our senior management team a lot of insight in terms of the cultural aspects of what happens in different companies. We do actually spend quite a bit of time not just visiting our sites, but visiting the communities to make sure that we're also exposed to this. I would say that that's the part that to us is very important. Michael mentioned in his presentation that of course, these days we do have a lot of reporting to do.
You know, we provide a lot of data for a lot of stakeholders who are interested in that data. Very important to Pan American Silver, which is that contact, that direct contact that we do have with communities where we operate. Of course, over the past couple of years, it's been a little bit more difficult with the COVID-19 pandemic, but it's definitely something that our company places a lot of emphasis on to make sure that the cultural aspect of where we operate is actually translated from where we are in at our senior management team.
Thank you, Brent.
Great. Thanks. Thanks, Brent. Next question. Should Pan American receive approval clearance to proceed with the Escobal Mine, how long do you anticipate it would take to bring the mine into production? What is your current estimated capital cost to put the mine into operation?
And thank you, Siren. I'll take this up. Of course, we are right now, as we mentioned many times, we are in care and maintenance at the asset. There is a care and maintenance management plan in place from the government for us. It's obviously environmental and management work that we do on site. The goal of that is really to keep everything in. Everything safe, keep the mine safe and, you know, the whole site in an environmental manner. There was a technical problem here.
Window.
Okay. That's the work that's ongoing right now. Maybe Sean can give us a bit more detail on that. As Sean mentioned, we don't have you know a restart date right now, so we can't really you know give you a timing on that. We are working on looking at the capital costs for a possible restart. Of course, the first thing will be to hire the workforce. There will be some working capital that has to go in there. But I really don't have details at this point on the capital costs for that.
Great. Thanks, Michael. Next question. Can you help us understand how you work with communities to choose the areas that will be rehabilitated for biodiversity and what the stumbling blocks were to choosing the areas for rehabilitation this year?
Matt, could you please answer this question?
Yeah, sure, Michael. That's a good question. I think it's probably related to our reporting there that we might not meet our biodiversity goal this year. That's specifically related to an area in La Colorada mine in Mexico, which we plan to revegetate 40 hectares of land outside of the mine site. Part of the reason it's not purely due to you know, community, and there's no stumbling blocks with the community itself. Part of it is due to our skarn deposit and the project development related to that. There's some uncertainty, I guess, with the in terms of the layout of the future mine right now. That influenced part of this, you know, 40-hectare area that we were looking to revegetate.
The other factor also is that it's, you know, there's competing land uses, I guess, and this is probably relevant to all of our sites, where there's grazing and agriculture close to our site. It's often challenging to find areas that are both degraded that need revegetation, but that also aren't sort of destined for a competing land use. That was definitely the case in La Colorada. You know, while we try to completely offset and generate a net positive in terms of biodiversity habitat, it's not always possible due to the competing land uses, and certainly not on an annual basis, you know.
I think the earlier question is probably also relevant there in terms of, you know, the long-term, legacy, life of mine, planning that, you know, we aim to get that no net loss objective over the life of a mine, but that may not always be possible on an annual basis. I think our reporting this year is probably reflective of that.
Great. Thanks, Matt. The question here, regarding indigenous people's rights, what is your view on respecting the Free Prior and Informed Consent, FPIC, of indigenous peoples? Is this integrated in your community relations programs?
Brent, could you answer this question, please?
Sure, Michael, thank you for the question, and a very important one, especially given that we do have indigenous communities around some of our mine sites. As we mentioned during our presentation, Pan American Silver is a member of the Mining Association of Canada, and we have been implementing the TSM, the Towards Sustainable Mining protocol. An important part of that protocol with respect to the FPIC standard, free and prior informed consent, is that our member companies at MAC do aim to actually achieve free and prior informed consent. We've been going on that basis. Now one of the important aspects of free and prior informed consent is also the ability of companies to form relationship with the indigenous communities where we operate.
To me, that's always been a very important part of a lot of the work that I've done with Pan American and other companies in the past, whereby the establishment first of a relationship where it's based on openness and transparency, it's based on trust, it's based on collaboration and the sharing of different types of information, becomes the foundation of how you do actually achieve free and prior informed consent. Those are the types of things that we try and work on very closely with the indigenous communities. Sometimes there are processes in place, such as what we're doing right now in the country of Guatemala with the Escobal Mine. There is an ILO 169 process in place to be able to have that consultation part.
Also the consultation part allows us to actually build those types of relationships that in the event that the mine is allowed to proceed to go forward, it is important for the company to continue to work on those types of relationships and to answer to concerns that do come up or any type of other requests. I would say that when we look at the aspect of FPIC, the basis of FPIC for us is the part of the relationship that we're building with our communities of interest, with indigenous communities also, and how we want to operate as a company on an ongoing basis.
Thank you, Brent. Next question. Following up on an earlier question about violence against women, what are you doing to protect female employees of Pan American Silver from sexual harassment? How are you facilitating the reporting of these cases by employees?
Yeah, we have done a lot of work on this topic, and I'll pass it on to Christopher to give us more details on that.
Thanks, Michael. Of course, discrimination or sexual harassment is strictly prohibited under our code of conduct. It's a right. It's a human right to be free from discrimination and sexual harassment. I talked about our human rights program, and this is part of it. Just recently, we did a company-wide program on discrimination and human rights, a course that many of our employees took across the organization. We also have the Building Respect Together program, where we talk about these issues again across the whole organization for all those who participate. In terms of reporting, we have a whistleblower policy and a whistleblower hotline where people can make anonymous claim complaints on through that program.
We also have site visits, where again, people can make complaints on a more local basis. We have our human rights programs, where these matters can be handled. We've been very fortunate that we have not had any serious complaints or instances of sexual harassment. We're mindful of this risk and we continue to work hard to address it.
Thanks, Christopher. We're just at the top of the hour here, that wraps up the time we had for this call. Thank you for joining us today. We welcome continued dialogue on our ESG practices and performance. If you would like further details on what we discussed today or have any other questions, please feel free to contact us at cfr@panamericansilver.com. Thank you and goodbye.
This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.