The mining industry is always looking for ways to improve its methods to reduce its impact on the environment. For this reason, the mining industry has come up with a plan: ESG. ESG stands for environmental, social, and governance. It was developed because it combines all three concepts for better mining practices, in turn benefiting the community and the environment while still earning enough.
ESG was developed because of investors that are calling for increased focus on environmental, social, and governance-related matters in mining. In essence, they’re now also having second thoughts about the current practices, as some of them are considered harmful to the environment.
This article will talk about how ESG can lead the mining industry to a better future. Read on below to learn more.
The Fundamentals of ESG
Each branch of ESG deals in the following:
- Environment – air, biodiversity, climate change, ecosystem services, energy, mine waste, mine closure, and noise.
- Social – community/worker health and safety, gender, human rights, labour, and vulnerable people.
- Governance – anti-bribery and corruption (ABC), ethics, legal compliance, and transparency.
In essence, the mining industry must consider if there are risks to ESG that will affect its ability to raise profit, obtain the required permits, and keep operations running smoothly. In the process, opportunities such as saving energy costs or reducing carbon emissions are possible.
Many mining companies are now starting to implement ESG in their operations, but the industry as a whole still has a long way to go. Here are some reasons why ESG is vital to the mining industry:
The People Who Care about ESG
Apart from investors and prominent figures in the mining industry, environmental rights groups and other people care just as much when it comes to ESG. When you think about it, the necessity stems from our own transactions where we scrutinize and evaluate whether or not something is good for us.
ESG is, for the most part, a measure of how a mining company can adapt to the growing needs of the industry while maintaining ethical business practices. If not, chances are funding will decrease, leading to lesser customers.
You’re Safe from the Risks of Poor ESG Performance
The mining industry cannot afford to take unnecessary risks, especially if the risks in question can delay or halt critical projects. If your ESG plan is managed, then you’re essentially safe from:
- Civil or criminal liabilities
- Inefficiency of resources such as water and energy, which can threaten business operations
- Environmental pollution, resulting in loss of licenses and disruption to your operations.
Better Opportunities with Excellent ESG Management
Since you’re avoiding the downsides of poor ESG, then you’ll reap nothing but positive benefits such as:
- Better relationships with investors and stakeholders, leading to better access to clients, funding, resources, and better development schedules.
- Reduced utility costs and better management of resources.
- You can attract new customers and retain the ones you already have. You can also establish a network of contacts that you can do business in a time of need.
The ESG agenda may sound excellent for the mining industry as a whole, but nothing will happen if plans aren’t put to action. Everyone, from the leading figures to management, to workers and common people, will benefit from ESG as long as the agenda is managed well, so the industry as a whole should work together.
Newfoundland Gold believes that regulations must be put in place to secure mining practices, and there’s none better than ESG gold mining to get the job done. Our alliance of companies works together to ensure that the mining industry remains afloat because it’s what powers a significant portion of the economy. Contact us today to learn more about our practices!