mining professionals -the missing esg link · 2020-05-14 · corporate social responsibility •...
TRANSCRIPT
BY:
Mining Professionals -The Missing ESG Link
Ivy Chen
FAusIMM, GAICD
AusIMM Mining Society Distinguished Speaker Lecture 2020
The changing landscape and ESG considerations: are they a mining professional’s biggest threats or do they offer new opportunities?
• No longer only “fluffy”, “tree-hugger” concerns.
• Regulators, stock exchanges and project finance considerations.
• Our role as mining professionals in this equation – are we facilitators or blockers?
ESG: Environment, Social, Governance
ESG: Environment, Social, Governance
Kyoto Protocol 2008
• United Nations Framework Convention on Climate Change.
• Committing industrialized countries to limit and reduce greenhouse gases (GHG) emissions in accordance with agreed individual targets.
• Adopt policies and measures on mitigation and to report periodically.
Paris Agreement 2015
• Strengthen the global response to the threat of climate change by
• Keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels.
• Pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.
The International Agreements
The Equator Principles (EP)
1. Review and Categorisation
2. Environmental and Social Assessment
3. Applicable Environmental and Social Standards
4. Environmental and Social Management System and Equator Principles Action Plan
5. Stakeholder Engagement
6. Grievance Mechanism
7. Independent Review
8. Covenants
9. Independent Monitoring and Reporting
10. Reporting and Transparency
The International Agreements (contd.)
The National Greenhouse and Energy Reporting (NGER) scheme:
• is a single national framework for reporting and disseminating company information about:
• greenhouse gas emissions,
• energy production,
• energy consumption
• and other information specified under NGER legislation.
Australian National Reporting Framework (NGER)
• Greenhouse gases• Scope 1 emissions• Scope 2 emissions• Scope 3 emissions• Energy production and
consumption
NGER - What is Reported?
N2OSF6
Where’s Our Part in This?
Scope 1 -emissions released to the atmosphere as a direct result of an activity, or series of activities at a facility level (direct emissions).
Scope 1, 2, 3
Scope 2 -emissions released to the atmosphere from the indirect consumption of an energy commodity (indirect emissions).
Scope 1, 2, 3
Scope 3 emissions are indirect greenhouse gas emissions other than scope 2 emissions that are generated in the wider economy.
Scope 1, 2, 3
Source: Ulrich, S., Trench, A., Hagemann, S. 2020, modified after the World Gold Council 2019
Scope 1, 2, 3 – An Example Using Gold
Governance
The organization’s governance and climate-related risks and opportunities.
Strategy
The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning.
Risk Management
The processes used by the organization to identify, assess and manage climate-related risks.
Metrics and Targets
The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
Task Force on Climate-related Financial Disclosures (TCFD)
Sustainability and survival
• Funding for project development
• License to operate
Why Does it All Matter?
Country Weighted Average GHG Emissions Intensity CurveSignificant Differences Due To Energy Source (High Emissions v Low Emissions)
197 Mines of Data~43% of CY2018 gold produced
Lowest emissions per ounce mine:Macassa – Canada – 53 kg CO2-e/oz
Highest emissions per ounce mine:Cooke – Sth Africa – 5,262 CO2-e/oz
Lowest Quartile: ≤443 kg CO2-e/oz
Median: 608 kg CO2-e/oz
Highest Quartile: ≥637 kg CO2-e/oz
China – No Data!Estimated from LCA study~1,220 CO2-e/oz
1. Finland, 2. Bulgaria, 3. Canada, 4. Armenia, 5. Argentina, 6. Brazil, 7. New Zealand, 8. Democratic Republic of the Congo, 9. Tanzania, 10. Senegal, 11. Chile, 12. Indonesia, 13. Peru, 14. Laos, 15. Suriname, 16. Ghana, 17. Turkey, 18. Philippines, 19. Guinea, 20. Côte d’Ivoire, 21. United States of America, 22. Mexico, 23. Burkina Faso, 24. Mali, 25. Australia, 26. Papua New Guinea, 27. Kyrgyz Republic, 28. Namibia, 29. Egypt, 30. Russian Federation, 31. Dominican Republic, 32. Mauritania, 33. Greece, 34. Kazakhstan, 35. South Africa.
Source: Ulrich, S., Trench, A., Hagemann, S. 2020
Metrics and targets:
• Define metrics and targets
• Data collection
• Data analysis
• Risk identification
Only then can the following occur:
• Monitoring & measuring
• Mitigation strategies
• Reporting / Governance
• JORC Table 1, Section 5?
What We Can Do Professionally
Resource models :
Tonnes + Grade + (contaminants)
Geoenviro model: ?
Tonnes + Grade + (contaminants) + (emissions: dust, diesel particulates, water volumes)
Geosocial models : ?
Tonnes + Grade + (contaminants) + (emissions: dust, diesel particulates, water volumes) + (impacts: noise, opportunityloss/gain, remediation)
Models We Can Build
• Emissions per tonne of ore / waste mined
• Using mobile & fixed plant operating parameters and capacities, model outputs of :
• Heat output
• Fuel consumption,
• Green house gases (CO2, N2O, NH4)
• Classify as Scope 1, Scope 2
Variables We Can Model
• Samarco, 2015
• Brumadinho, 2019
• Church of England questionnaire
Get in Early and Drive the Regulation
JORC 2020/2021 Table 1, Section
5?
Why do we care ?
Canada's NevsunResources Facing a Mass Slavery Lawsuit)
What Happens When We Seem Not to Care?
“The Court recognized for the first time that a Canadian corporation may be held
legally responsible for violations of international law that protect human
rights.”
This is very recent. An oiI-field
services company let a bad taste
joke “escape” into the big wide
world. The company:
• Infringed the copyright owned
by a German tattoo artist;
• Combined the image with the
name of a teenaged activist;
• Created an image implying an
unsavoury, illegal act of violence
• And then put their company
name below the image!
A Bad Joke Goes Seriously Awry
An example that is working well
• Transition to life after coal
• 300 students to the South West town each year as it.
• Local contractor Piacentini& Son to build the facility
• First crop of students in May 2020.
• New industry for Collie and Western Australia
• New jobs, training opportunities for local people,
• Meeting demand from around Australia and overseas.
Westrac Autonomous Truck Training Centre, Collie WA
Why Does it Matter?
• Engage
• Participate
• Be an advocate
• Give a F_(ig)_
What We Can Do?
ESG: Environment, Social, Governance
What We Can Do?
What We Can Do – Local Heroes
Endangered black cockatoos have extra nesting boxes, also known as cockatubes, by volunteers from Alcoa, Landcare Serpentine Jarrahdale and the Peel Harvey Catchment Council
Enduring Partnership award for the Alcoa Harvey WaroonaSustainability Fund
Alcoa’s Bev CorlessScholarship for female engineering stiudents
What We Can Do
What Else Can We Do
https://www.abc.net.au/news/2020-03-11/cecil-andrews-college-was-dying-until-students-and-teachers/12041718
Corporate social responsibility• More involved and more visible• Clearer disclosure of mitigation, strategy and governance• Stronger linkages to project funding.
Professional • More concrete metric and targets• More defined reporting frameworks
Personal• Engagement• Advocacy
ESG – It Has Always Been Part of Being a Mining Professional
• What are your ESG issues here in the South West
• Do you think there is a place in the JORC Code for reporting ESG issues – how might this work
Questions, Comments, Observations?
1. The Equator Principles: https://equator-principles.com/
2. Australian National Greenhouse and Energy Reporting (NGER) Scheme:
http://www.cleanenergyregulator.gov.au/NGER
3. Task Force on Climate-related Financial disclosures:
https://www.fsb-tcfd.org/publications/
4. Church of England Pension Fund tailings dam questionnaire:
https://www.churchofengland.org/sites/default/files/2019-
04/Annex%202%20Disclosure%20request%205.4.19.pdf
5. Minerals Council of Australia, 30 Things:
https://minerals.org.au/news/30-things
Resources
