Mining Sector
The National Mining Association (NMA) of America categorically commits to advancing progress on Environmental, Social and Governance (ESG) issues and the trend is gaining momentum in Europe, Asia and Latin America. This demonstrates that the future of mining is increasingly being transformed by ESG imperatives and the Transition to net zero by 2050 more realistic and achievable. This conceptual approach is now being embraced by traditional investors and it is a requirement for new investors. Through legislation, policies and other means governments are committed to protecting their environments, water and other natural resources, the health and safety of their workforce and socio-economic conditions of their people. Buyers are more sustainability conscious while human capital will shift to companies where they are protected. It is therefore imperative that to survive the new operational landscape that the Environment, social and governance approach become an integral part of every mining operation. ESG is no longer seen as a driver of change in the industry but an opportunity for more efficient and economical transformation.
Environmental
- Restoration of land to pre-mining condition through reforestation, soil conservation, effective tailing pond Management, curtailing leaching of dangerous chemicals into waterways etc.
- Adapting sustainable sources of power such as hydropower, solar and wind, wherever possible, to reduce their carbon footprint.
- Adoption of technologies exploration, overburden management and onsite refining wherever possible.
- Investing in green bonds, purchase carbon credits or trade carbon offsets with collaborating companies.
Social
- How companies, their suppliers and clients manage their human capital.
- The time has come for companies to ask themselves critical question for social accountability:
- Is any component of our operation directly or indirectly encouraging or is acquiescent to child labour, gender inequality, racial discrimination, subjugation, unfair wages, unsafe working conditions, unethical treatment of animals etc. These are some of the social components Soptics AI will evaluate and prompt effective ways to offer correction.
Governance
- Are operations equipped with ESG policy pathways?
- Is there a policy of disclosure?
- Are operations in compliance with local, governmental and international laws and regulations pertaining to mining and trading?
