While the mining industry has been pivotal in providing the world with the raw materials it needs, it has also been one of the biggest contributors to greenhouse gas emissions. While ESG (Environmental And Social Governance) policies have been in place, there were no rules out there that say exactly how the ESG policies were to be implemented. Add to the fact that there were no penalties in place either, many mining companies could get away without considering ethics or sustainability.
However, things are changing. Many institutions are putting pressure on mining companies to implement ESG policies.
Let’s delve deeper today into mining corporations and ESG—how mining companies can change for the better:
1. Create an Environmental and Social Committee
With the advent of ESG policies, the management of mining companies now has to operate in accordance with such policies. To do this, it is imperative for the management of such companies to create an Environmental and Social Committee. Such a committee will be responsible for making sure that all the policies are being followed.
If you are running a smaller company and do not have the need for an Environmental and Social Committee, you can appoint a member of your senior management, such as your CEO, to do the job.
2. Establish Internal Reporting
Mining companies are typically large entities, so you need to establish a reporting model so that information regarding the implementation of ESG policies can be shared among all the stakeholders. This is important for a number of reasons. First of all, it will ensure that the policies are being implemented. Second of all, it will ensure that the policies are being implemented in a uniform manner.
3. Develop a Performance Review System
Most mining companies have an annual review system. However, most of them use a predetermined framework to conduct the review. This is not ideal, as it does not allow for flexibility. Instead, try out a different system.
Mining companies are large and complex, so you need to develop a system that will allow you to hold management teams and employees accountable for specific projects.
For example, if you are running a diamond mine, you need to break down tasks according to their importance. Some of them may be more important than others and should be given priority. This way, you will ensure that you meet your deadlines without having to compromise on quality.
4. Use an Enterprise Resource Planning System
It is highly recommended to use an Enterprise Resource Planning (ERP) system, as it will automate a lot of the regular tasks. This is mainly because most of these systems have business intelligence tools built-in.
Besides, an ERP system will allow for easy integration with other software, such as email and data analysis tools. You can also use ERP to manage finances, accounting, procurement, and others.
The best thing about ERP is that you can use it to integrate with the ESG management software. This way, the ESG policies will be implemented in a uniform manner while being backed by data analysis.
With the advent of ESG policies, mining companies need to rethink their strategies. While it is possible to use a few tricks to sidestep the requirements of the ESG policies, most of them require a lot of investment.
Creating an ESG committee and implementing ESG software is just the beginning. There are many other factors involved when one is trying to meet the requirements of the ESG policies. Regardless, implementing them is a must. Not only do they ensure sustainability, but they help to create a world that’s better now and in the future.
Newfoundland Gold is an alliance of companies that focuses on the growth and advancement of mining projects and mineral exploration in Newfoundland. If you are interested in ESG mining and more, check us out today!