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Contrary to popular perception, the mining industry has been responding to what we like to call “ESG” concerns since the environmental movements of the 1970s. Even the acronym “ESG” is not new and was first popularized in the 2004 report titled “Who Cares Wins,” a joint initiative of financial institutions at the invitation of the United Nations.
In 2001, the International Council on Mining and Metals was founded to improve sustainable development performance in the industry and share good practices, and for over two decades, the industry has demonstrated the will to constantly improve as society’s standards grow ever more stringent.
While our industry is making important progress toward ESG goals, there remains plenty of room for improvement, and investors want to distinguish between true impact and value creation, versus vanity metrics. Many in both the mining and investor communities believe we are witnessing a true industry transformation, with the ESG performance bar continuously being raised.
Realistically, companies should instead assess their own ESG materiality with greater clarity around what truly matters to them, and then develop a set of policies and minimum operating standards based on the accepted “good practices” — but tailored to their unique situations. Here are five good practices to consider when integrating ESG in mining: Successful ESG is hands-on, not academic.
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