SUSTAINABILITY
ESG:
BEYOND THE BOTTOM LINE What is ESG?
By Michelle Goldsmith, Contributing Editor, Mining Magazine
A heightened focus on ESG is gaining momentum within the mining industry, as non-financial factors play an increasing role in investor and consumer decisionmaking worldwide. This new reality calls for mining businesses to consider the unique ESG risks to which their operations are exposed, and measure, report and improve performance on various ESG criteria. Understanding ESG principles and adopting an appropriate framework enables companies to provide the transparency and accountability that investors now require, overcoming challenges while offering opportunities for innovation and value creation.
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Spring 2022 \\ ISSUE 1
More and more frequently, investors are considering a company’s wider impacts, beyond the purely financial, when deciding whether to invest. ESG (environmental, social and governance) refers to the three main pillars encompassing the non-financial criteria often used by investors to assess company performance.
Environmental
Environmental ESG criteria primarily relate to positive and negative environmental impacts, including effects on the atmosphere, land, oceans, seas, habitat, coasts, water bodies, and biodiversity. Investors may consider environmental protection policies and measures taken to optimise environmental impact by reducing pollution, balancing resource consumption, conserving natural ecosystems and resources, and supporting climate mitigation and adaptation. www.miningmagazine.com.au