There has been intense an focus on environmental, social and governance (ESG) matters in recent years. Investors, purchasers and the public want confidence that ESG performance is assured by independent external providers. However, there is a danger that generalist sustainability assurance providers, who undertake assurance for a wide range of industries, may not appropriately identify the complex set of site-specific risks associated with mining operations. So how are gold mining companies rising to this challenge, and will their actions satisfy these stakeholders?
Many major gold mining companies have made clear commitments to align with either the World Gold Council’s Responsible Gold Mining Principles (RGMPs) or the International Council of Mining and Metals (ICMM) Performance Expectations, or both. These organisations have set performance expectations that define responsible mining. They require independent assurance or validation processes and a commitment to disclose the outcomes.
To assess conformance with the RGMPs, external assurance must be in accordance with the International Standard on Assurance Engagements 3000 (or equivalent). Similarly, ICMM requires its members to have their sustainability reports independently assured against the Global Reporting Indicator Standards. Since 2020, ICMM’s members have had to validate that they meet performance expectations; this includes self-assessment and external validation of key sites. Selected gold company websites and sustainability reports show this is happening and, in some cases, has been extended to cover the RGMPs.
These onerous assurance requirements have been carried through to the draft Consolidated Mining Standard that is currently out for consultation. This much-sought-after initiative will consolidate performance expectations from the RGMPs, ICMM, Copper Mark and Towards Sustainable Mining, reducing confusion and responding to society’s demands.
It can take years of experience, access to an extensive network of technical specialists and a detailed understanding of how mines can potentially impact the human and biophysical environment to comprehensively recognise gaps in ESG performance and identify meaningful opportunities for improvement. Not all assurance providers (such as accountancy, management consulting or specialist assurance firms) have this. Recognising this, SRK has helped incorporate the requirements of various ESG performance standards (including from ICMM and the RGMP) into our clients’ capital project standards, with the aim of ensuring integration of ESG through the entire project development process from initial scoping to project implementation. By setting the groundwork for future sustainability reporting and associated disclosure, technical specialists can work together with assurance providers to meet our client needs and address stakeholder concerns.
