Mining investments can be profitable and beneficial across communities of the rich and the poor. However, not many people know about this information surrounding gold and gold mining. Thus, we are here to redefine gold’s ESG credentials as a quality and long-term asset. Read on to learn more.
The Establishment Higher Standards
Large-scale mining firms today follow stricter environmental, social, and governance standards than in the past. The Responsible Gold Mining Principles formalize these standards by establishing a stringent and comprehensive set of requirements for the gold mining industry’s core ESG areas. Water management, climate change, community participation, Indigenous Peoples, human rights, gender equality, and tax transparency are all important concerns to solve. Members of the World Gold Council are required to follow the RGMPs, and non-members are beginning to do so.
Independent verification is required for business performance to be transparent and credible. Third-party oversight will distinguish these Principles and guarantee the market that the commodities were obtained ethically.
The Benefits for Disadvantaged Communities
Because of its global reach, the gold industry is particularly positioned to aid the world’s poorest and most isolated people.
Many people outside of the mining business believe that communities do not want mining. However, attitudes toward mining have shifted. The industry is well-regulated, and enterprises act ethically, providing benefits not found anywhere else. Communities are more open to new mines when firms limit negative impacts and communicate respectfully.
Locals can regularly revoke a company’s “social license to operate,” putting non-compliant businesses out of business. Because businesses are aware of this, they prioritize being good neighbours.
Mines are important to communities because they provide jobs, tax money, and social investment. The mining industry has helped the economies of many countries expand and thrive. It has the potential to produce great wealth while also discouraging young people from leaving rural communities for metropolitan ones. A gold mine can be the engine of economic and social development in isolated, impoverished African, Canadian, Peruvian, or Australian villages.
Consider mining to be an industry that “adds value” to impoverished countries and communities in ways that other industries cannot. Natural resource extraction may develop social and human capital. Businesses can strengthen governance standards and capacity building by integrating new technology and adhering to the best international environmental and social practices.
The Minimal Carbon Impact
Emerging data suggests that gold can reduce a portfolio’s carbon footprint over time. In comparison to many other industries, the gold industry’s decarbonization choices are fast expanding and approaching the size and cost-effectiveness required for widespread adoption. Electric fleets, renewable energy sources, automated equipment, precise mining, and artificial intelligence will significantly reduce the industry’s carbon impact over the next 10 to 20 years. Within a generation, carbon-neutral mining might be attained.
Many of the technologies will not only reduce CO2 emissions but will also reduce resource utilization, including land, water, and garbage, and make mining much safer. Mining will be less extensive in the future.
In comparison to other extractive industries that burn or substantially process their products, gold mining emits very little CO2 beyond the mine site. Gold is completely recyclable.
Gold as part of a responsible investing strategy may appear counterintuitive, but investors and consumers should reconsider gold’s ESG credentials and ability to have large-scale good effects.
Gold mining has advanced significantly over the last two decades while overseeing environmental, social, and governance concerns. It has the unique ability to serve a social function and aid society, as well as contribute to a low-carbon future through decarbonized operations or emission-reducing gold-based technology.
Mining has the potential to develop both human and societal capital, giving opportunities and giving responsibilities at the same time. If carried out successfully, it has the potential to transform lives and generations.
Do you want to learn more about the Canadian gold sector? Newfoundland Gold is here to guide you through the country’s mineral exploration and mining projects. Get in touch with us today to learn more!