Expert Guidance
ESG for transparency
SDG for measurable progress
The 2030 Agenda is part of a common international framework where all actors, from citizens to nations, including communities, municipalities and mining companies, are exposed to managing their materialities by sharing the same sustainable development objectives to be achieved via targets predefined.
We are all stakeholders in sustainable development through a common framework whose progress is measurable and comparable.
Since 2016, the 2030 Agenda has framed the efforts that are deployed jointly at the national and international level to address the planet's major challenges.
The mining industry, through its extensive activities worldwide and prominent presence in emerging economies, has strong linkages with issues covered in all 17 of the UN Sustainable Development Goals (SDGs). These linkages are clearly set out in the 2016 Mapping Mining to the Sustainable Development Goals: An Atlas, produced by the Columbia Center on Sustainable Investment, the United Nations Development Programme, the United Nations Sustainable Development Solutions Network and the World Economic Forum.
Today the RMI report 2020 has observed poor results in 'integrating and reporting on the SDGs. Much of the SDG reporting comprises, for example, a mapping of the SDGs to GRI indicators, or an insertion of SDG logos with no narrative explanations.'
A transformative opportunity for the mining industry
The ESG-SDG approach to the value chain is crucial and will play a significant role in the ccmpetitiveness. Supply-chains become more transparent and the upstream supply chains' actors will be visible to end-consumers. OEM's will build their conpetitive advantages on these sustainable developments basis.
The modern world will not deviate from technological needs useful for energy transition, electric mobility or the development of efficient and energy-saving materials.
The transparency of the supply chain and the permanent control of raw material sourcing and their processing circuits will be developed on a larger scale and will affect the mining sector. It is not excluded that exploration projects could be limited to zones of tolerance circumscribed along historic mining and metalliferous zones, the extension of which could be favored underground.
Materials science has evolved and multidisciplinary research is now making it possible to reduce the levels of critical metals useful to overcome any shortage of these components. On the other hand, the life cycle of metals and their retention rate at national scales are now increasingly important for considering efficient and economical recycling.
The investment universe will therefore focus on companies that fall under this responsibility scheme for the development of projects whose contribution remains adapted to technological developments and to the life cycle prospects of metals, while complying with reducing their impacts according to the sustainable objectives (SDG) of the United Nation.
SDG-1
End poverty in all its forms everywhere
Introduction for mining
Mining and exploration activities can create quickly perverse impacts as giving temporary wealth to poor agri-communities which tend to destabilize the local economy with short term work perspectives for the youngest.
Mining contributes to eradicating poverty through tax and royalty payments that allow the development of basic public goods, such as access to health, housing, education and infrastructure. Mining can also help reduce poverty through job creation, induced economic activity and the provision of basic services. Finally, to avoid the risk of exacerbating poverty, mining operations must have effective strategies to restore livelihoods that might be adversely affected by mining, including ensuring access to land and natural resources for people in mining communities.
Companies should especially consider their impact on children, who are often overlooked, yet can be particularly vulnerable physically and economically.
Integration to core business
Remarks
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Pay tax and royalties
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Facilitate equitable access to employment
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Offer training and apprenticeship programs
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Develop local supplier capacity and Strengthen local value chains
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Preserve land access (including resettled communities)
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Very Sensitive / Strong impact on communities.
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Exploration work implies first employment from local communities, first interaction with land access and infrastructure settlement and first opportunity to buy items from local suppliers.
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Miners inheritate of the long development of exploration work and mineral resources definition.
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The capital expense, infrastructures and foreign suppliers can generate additional risks.