ESG Risk Management in a Global Mining Company
In 2017 – 2019, Satarla worked with a global mining company to revise their risk management framework and roll it out across the organisation as a whole. Embedded within the corporate Sustainability [ESG] department, the risk team had full accountability for ERM (inclusive of financial and technical risks).
Over the course of 10 x months, the Satarla team in partnership with the client facilitated 650 risk management workshops attended by >6000 people in 15 countries. Workshops were delivered in local languages including Spanish, Portuguese, Afrikaans and English, and always used local examples and risks each team were actively trying to understand and manage. Deliverables for each operation included a revised risk profile for that operation that was fully inclusive of the ESG risks and their ranked importance beside financial and technical risks.
While many examples of success could be highlighted from this project, some include:
The total revision of objectives and allocated budget to one operation resulting in a short term reduction in production targets and increase in capital allowance for maintenance and new equipment based on the newly identified and calculated potential impact to environment and social risks.
Ability for those responsible for the payment of taxes in one jurisdiction to adequately illustrate the risks (both opportunities and threats) being taken by the company given their current tax strategy and gain full approval for suggested changes to better manage those risks.
Empower those responsible for the management of a high risk facility to enact rapid shutdown on safety grounds despite a loss to production, thereby preserving life in line with company values.
Revision of project timeline for large scale capital project and total re-evaluation of mine design in line with ESG risks previously discounted due their long time horizon.
Feedback from Vice President for Operation: “While we didn’t necessarily like the outcome of our [Satarla-facilited] workshops at first, we came to realise that they provided a far more honest view of our real risk profile and therefore empowered us to be able to take action and proactively manage it”.
[Note: this individual subsequently requested that Satarla undertake the same programme at his next operation – currently underway in 2020]