Editorial comment
2022 was marked by a plethora of tumultuous global events: from conflict to inflation, climate disasters, and market volatility. Despite these challenges, against the backdrop of a difficult economic climate, a recent study from Harvard indicates that the majority of institutional investors plan to increase their allocations to environmental, social, and governance (ESG) investments over the next two years.1 As these years unfold – and the challenges the world faces continue to be interconnected from an economic, political, social, and environmental standpoint – a wider range of focus areas will be seen coming into the ESG agenda for mining companies, supported by new environmental and sustainability performance targets, and far more stringent regulations.
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Previously, the main drivers behind ESG initiatives were financial and corporate institutional concerns, or opportunities in response to sustainable development goals and regulations. The focus has largely been on the environmental aspects, with some further clarity required around expectations and measurable objectives on the social and governance agendas. Today, the focus is more on measuring ESG performance against a broader set of goals that satisfies the needs of all stakeholders.
Get this right, and mining companies with strong ESG performance will be in a position to reap the benefits of the competitive advantages ESG can deliver. Success, however, will be largely dependent on how the industry innovates together to make the possibility of ultra-efficient mines, that have a better interaction with nature, a reality.
Over the coming years, standards and regulations around social management practices are expected to evolve, with various industry and commodity-specific standards, principles, and protocols being developed. The Global Industry Standard on Tailings Management (GISTM) sets high expectations for community engagement, participation and collaboration, as well as socio-economic assessment alongside other International Council on Mining and Metals’ (ICMM’s) Performance Expectations.2,3
Whilst the extent to which ESG policies are being implemented in practice is still evolving, it is clear mining companies will be under ever-increasing scrutiny. A good example is the recent launch of the independent Global Tailings Management Institute (GTMI), to oversee implementation and conformance of the GISTM in the core areas of assurance, awareness, knowledge sharing, and disclosures. The GTMI will review how the standard is being applied across all operations, with transparency and independent verification.
While this is one example of a measurable performance accountability, there are many others.
Data management is a key area of focus. Better insights from data, using digital technology to manage, analyse, and utilise data allows mining companies to not only claim adherence to ESG initiatives, but also to provide evidence of their work practices.
When data is well-organised and easily accessible, it enables teams across a company’s operations to come together; creating opportunities for collaboration, bringing better insights, and driving improvements in ESG performance. With the right software and data management practices in place, companies are empowered to make better decisions and provide the evidence they need to demonstrate compliance.
Transparency is key to reporting environmental performance, and it can only be achieved by wielding the power of accurate, reliable data. The challenge is that data often resides in different systems, architectures and platforms, making it difficult to break down silos and enable collaboration. By obtaining, combining, and analysing data from across a mine’s lifecycle, mining companies can easily demonstrate their commitment to sustainable operations.
Geoscience and engineering innovations continue to evolve to help deliver efficient mines, while minimising the environmental effects of waste during operations and following mine closures. Creating and working with accurate geological digital twins capable of handling large data sets and generating detailed models, mining companies can quickly visualise and interpret modelled data, allowing teams to connect, discuss and make decisions, even when they are in different parts of the world.
Sophisticated model management platforms, which provide a repository for all modelling data, can give operators easy and ready access to the information they need, when they need it.
Seequent is working hard to develop a deeper understanding of industry challenges, and deliver supporting technologies and workflows that help companies comply with stricter regulations. Technology is the key to supporting mining companies achieve and measure their ESG compliance, as well as implement more efficient practices across operations and better management of risk.
- ALEXANDER, O., and YAZDANI, D., ‘Exponential Expectations for ESG’, Harvard Law School Forum on Corporate Governance, (17 November 2022), www.corpgov.law.harvard.edu/2022/11/17/exponential-expectations-for-esg/
- ‘Global Industry Standard on Tailings Management’, Global Tailings Review, www.globaltailingsreview.org/global-industry-standard/
- ‘Mining Principles: Performance Expectations’, ICMM, (15 June 2022), www.icmm.com/en-gb/our-principles/mining-principles/mining-principles
