How does ESG impact the mining and resource industry?
Environmental, social, and governance (ESG) principles have shaped the mining and resource industry from the beginning of exploration to asset production. The goal of achieving net zero emissions by 2050 (or sooner) is well established, but external stakeholders are exerting greater influence on how aggressively mining companies address existing ESG-related initiatives and re-prioritise if necessary.
In this article, we will explore what ESG means for mining companies and how it is influencing the industry's future.
What does ESG mean for the industry?
The attention given to the corporate social responsibility of mining firms around the world is constantly expanding as the industry struggles with the consequences of extreme weather on its sites, equipment, energy supplies, and transportation routes.
A mining organisation that is unprepared for the shift to more sustainable methods as climate change becomes a reality risks not only its operations and reputation but also its future performance and investment prospects.
Investors are increasingly interested in factors other than financial statements, such as a mining company's ethics, competitive advantage, and culture. They've also proposed new standards and frameworks to measure mining investments against.
The following issues are covered by the ESG agenda for the mining industry:
- Environment: Biodiversity, ecosystem services, water management, mine waste/tailings, air, noise, energy, climate change (carbon footprint, greenhouse gas emissions), hazardous substances, and mine closure.
- Social: human rights, land use, resettlement, vulnerable people, gender, labour practices, worker/community health & safety, security, artisanal miners and mine closure/after use.
- Governance: legal compliance, ethics, anti-bribery and corruption (ABC) and transparency.
All of the above are important factors to consider when discussing ESG. Mining companies must consider whether there are risks that could jeopardise their ability to raise capital, obtain permits, collaborate with communities and regulators, and protect their assets from impairment. This opens up possibilities for lowering energy and water bills or carbon emissions, improving operational performance, strengthening community and regulatory relationships, and managing closure viability.
Many companies in the industry are already actively working on their ESG agendas, identifying priorities and measuring performance. The real benefits, however, come when the move is made beyond measurement and action is taken.
When it comes to mining travel, we understand that it’s a logistical nightmare and therefore ESG may not be at the top of the agenda in many organisations’ policies. ATPI Mining and Resources can alleviate this pressure by helping mining organisations achieve their ESG goals in their travel policy.
We understand that Scope 1 and 2 carbon emissions are already a major focus for mining companies and industry suppliers, but Scope 3 carbon emissions are already on the radar for investors and the industry as a whole, and will become an integral part of the overall carbon emission management and offsetting programme for all reputable companies, so must be addressed....this is where ATPI comes in.
Using our in-house CO2 measurement, reduction and offset service is a method of being more environmentally sustainable. ATPI Halo is an innovative approach to support clients in creating a more sustainable business travel programme. Where travel is often an unavoidable part of a corporate’s operation ATPI Halo helps to MEASURE, REDUCE and OFFSET these emissions through accurate and highly visual reporting, consulting with account managers who understand your business and its complexities, and finally offsetting what cannot be reduced against verified and certified carbon offset schemes.
ATPI Mining and Resources also have a plethora of services and offerings to ensure the health and well-being of travellers. Through our Duty of Care programme, we keep crew safe and travel compliant. By taking a comprehensive approach, we ensure your mining organisation’s duty of care responsibilities are fulfilled at every stage of every journey. Our range of tools, technology and services, packaged with consultancy from mining sector experts, keep your travellers safe and your organisation compliant.
Want to discuss how ATPI Mining and Resources can help you achieve your ESG objectives in your travel policy?Contact the team here