Mining is one of Africa’s largest industries and contributors to GDP. It has long been under scrutiny from an Environmental, Social and Governance (ESG) point of view, and this scrutiny has only increased as societies move to a low carbon future and demand that companies change the way they do business. Though the extent to which mining companies are addressing ESG concerns – and actively working to improve their credentials – varies significantly across the industry, there are mining companies that are making significant strides in improving their sustainability practices.
Taking a circular approach is key to supporting the mining sector as it transitions from developing good plans and strategies, to implementing these strategies and making meaningful headway in ESG pursuits. There are three principles that underpin circularity, and these same principles also play a key role in improving ESG performance in the mining sector.
First, renewable inputs such as the use of renewable energy solutions in mining operations is key. Second, the lifespan and usage of the mining operation must be maximised to extract the highest possible value, which must include responsible retirement of assets during mine closure. And lastly, by-products and waste in a circular economy must be recovered and reused as far as possible. The most common application of this last principle in mining involves reprocessing tailings materials to extract left over minerals. The responsible management of water resources is critical here, too.
WSP has designed an ESG scorecard, which captures and quantifies ESG metrics directly linked to a mining company’s projects. The scorecard has been incorporated on several projects on which the company has consulted, unlocking opportunities for other ESG-related improvements to allow for the assessment of its deliverables.
The scorecard uses a combination of generally accepted ESG metrics, largely drawn from internationally recognised ESG and sustainability frameworks, including the Taskforce on Climate Related Financial Disclosures, the CDP and the Sustainability Standards Accounting Board. WSP also considers the mandatory reporting obligations of publicly traded companies and mining-specific frameworks such as those of the International Council on Mining and Metals and the World Business Council for Sustainable Development.
The knowledge gained through these assessments enables the company to produce better solutions and improved designs while helping clients to reduce environmental impacts, increase social value and align with their governance structures.
Climate change, water stewardship and renewable energy services are obvious direct contributors. In addition, geotechnical engineering contributes significantly to improved ground conditions and reduction in enterprise risk (Governance), both of which can have a huge impact on worker and community safety (Social).
Each of our mining services contribute to our clients ESG KPIs. As an example, our Tailings Storage Facility (TSF) design and construction services reduce enterprise risk (Governance), reduce carbon emissions and conserve water resources (Environment), while protecting human health and local communities (Social).
And, in keeping with the principles of a circular economy, we work with mining clients to focus their closure planning, and concurrent contaminated land rehabilitation planning, beyond ensuring they have the financial means to implement the conditions of environmental authorisations, and towards limiting or reducing adverse effects on the receiving environment. For mining clients to retire their assets responsibly, closures must be thoroughly planned in advance and sufficient financial provision made for the retirement of industrial assets.
An appropriate integration of ESG into a mining company’s practices fosters positive relationships with stakeholders and reduces environmental impact, while an ESG-focused approach can help identify and address potential risks early, including regulatory changes, community opposition or potential reputational damage.
As investors increasingly favour companies with robust ESG practices, embracing a circular approach to ESG and showcasing transparency can attract responsible investors who prioritise sustainable and socially responsible investments. This in turn can result in the mining company’s having access to more capital and, potentially, at a lower cost.
We believe that the global mining industry has an important role to play in the transition to a green economy, and perhaps nowhere more so than in Africa. We are working with mining companies that must contribute to the international demand for critical minerals, while also taking action to meet their ESG commitments.
