ESG can minimise risks and identify opportunities in the long-term by helping mining companies to raise capital and safeguard their assets from impairments.
Verdict has conducted a poll to assess the ESG and sustainability areas in the mining industry that need the biggest improvement.
Analysis of poll results shows that the impact of mining on local communities is the ESG area where the need for improvement is greatest, as opened by a majority 40% of the respondents.
Ethical mining was the next area that requires improvement, as voted by 20% of the respondents, followed by on-site safety of mine workers, which was voted by 16%, and reduction of scope 1 and 2 emissions (15%). The remaining 9% of the respondents voted diversity and inclusion as the area that needs the greatest improvement.
The analysis is based on 434 responses received from the readers of Mining Technology, a Verdict network site, between 22 March and 04 May 2021.
ESG in mining
The significance of ESG and sustainability has risen substantially in the mining industry amid the increased focus on climate change.
Miners need to focus on various aspects of their operations and set realistic ESG targets to achieve the goals of ESG and sustainability. Mines need to be operated with a societal approval, which entails engagement with all the stakeholders including local communities, non-governmental organisations, and other third-party stakeholders to avoid opposition from local people.
Mining companies also need to contribute to the cause of reducing carbon emissions and adhere to ethical mining practices by ensuring efficient operations and sustainable practices to protect the environment. Further, mining companies need to adopt safe mining, which includes strong health and safety policies, by reducing risks and focussing on educating and training onsite personnel.