ESG - Mining's Opportunity
On 2nd November 2020, Dr Sarah Gordon, CEO Satarla and Jamie Strauss, CEO Digbee presented at the Precious Metals Summit Europe 2020.
Below is an overview video of the Digbee ESG tool and a summary of the presentation.
As the mining sector looks to become a force for good, ESG has never had a more prominent focus across stakeholders. Mining, by having ESG at the heart of its strategy and operations, has an opportunity to show the world how they can mine responsibly and build a positive image and reputation. The industry is critical to enable the transition to a greener and sustainable future. The question is - how do we do this? There are three areas to consider:
How we mine
Miners needs to be seen as stewards of the earth, not destroyers. the opportunity for
ESG in mining is to think about what is our footprint and can we leave the
environment and communities in a better shape post mining?
Technology has advanced to enable more responsible mining for the larger deposits,
which have been depleting. Small scale mining methods also need adopting for those
deposits that are not extractable by large scale methods.
How we reward
Valuations for mining companies is on par with tobacco companies, yet the former is
necessary for humans and the latter is not. We require transparent reporting for ESG to
attract investment, and not the tick box reporting that is so often the case due
to the vast amount of standards and framework requirements. The impact question is -
what are we doing now and for the future?
Insurance is expensive for new technologies - if the insurance industry takes a more
holistic and ESG led view, miners can take advantage of lower premiums.
Reporting and communication can be shored up to demonstrate how ESG is actually
implemented, through, for example, technology enabled solutions like satellite
How we view ESG
ESG is an opportunity not just a threat. Whilst we are not seeing the impact investing
shift into mining companies, a demonstration and proof of ESG at the heart of
operations would lead to a re-rating, thereby diverting funds into this sector. This
would mean mining companies see the reward of responsible and sustainable
operations, in turn providing an opportunity to redress the image and perception of
Mining has a huge opportunity by placing ESG at the centre of operations - from the investors perspective, looking for the impact reporting rather than sifting through the vast array of standards and frameworks is critical. A re-rating of the sector will divert funds into mining companies, thereby creating further impetus to ensure a sustainable and responsible
Mining is at the core of Satarla, and we have been lucky to work with the world's leading mining companies helping them put ESG at the heart of Integrated Risk Management.
Digbee is the data, research and ESG platform for the mining industry.