Aquitas Sustainability Consulting

Utilising ESG frameworks can revolutionise the design of new business processes, ensuring sustainability is at the core of innovation. #esg #mining #sustainability #businessInnovation

Navigating Changes in ESG Focus within the Mining Industry The mining sector is witnessing a shift in its approach to Environmental, Social, and Governance (ESG) commitments. Glencore CEO, Gary Nagle, recently highlighted the evolving investor attitudes towards ESG issues, noting a decrease in pressure over the past year. This shift is underscored by Glencore's decision to maintain its profitable coal business, a move strongly supported by the majority of its shareholders. This decision is strategic, not just for ensuring profitability but also for funding critical projects centered on transition metals like copper, which are essential for the energy transition. While the broader industry continues to explore low-carbon initiatives, there is a heightened focus on the competitiveness and financial viability of these investments. Glencore emphasizes that keeping its coal division is part of a responsible strategy for the phased decline of thermal coal. This approach supports the infrastructure necessary for the energy transition, particularly through the production of steelmaking coal. This recalibration reflects the complex balance that companies must navigate. They face the dual challenge of reducing emissions while leveraging the robust profits that traditional energy sources continue to offer. The evolving ESG landscape illustrates the intricate balancing act companies must manage between sustainable practices and economic performance. #sustainability #miningIndustry #ESGInvesting #energytransition #corporatestrategy https://lnkd.in/dgZZgBbD

European supermajors like Shell, bp, and TotalEnergies are shifting back to their core business of oil and gas, prioritising profits over ESG initiatives. This pivot comes after an energy crunch and slow returns from renewable investments. Despite the initial push towards wind, solar, and biofuels, these companies are now again focusing solely on shareholder returns, with reduced emphasis on ESG goals. This shift highlights the enduring profitability of oil and gas, despite political and activist pressures for energy transition. 💡 An energy crunch refers to a period of significant shortage or limited availability of energy resources, such as oil, gas, or electricity, which leads to higher energy prices, potential power outages, and economic disruptions. This can be caused by various factors, including geopolitical tensions, supply chain disruptions, natural disasters, or rapid increases in demand. The energy crunch in Europe, for example, was exacerbated by reduced gas supplies from major exporters, increasing demand, and issues with renewable energy production, leading to higher energy costs and increased focus on the reliability of traditional energy sources. https://lnkd.in/dtagr7Pz #renewableenergy #energytransition #sustainableInvesting #climateaction

Despite its pivotal role in a sustainable future, the mining industry is grappling with environmental, social, and governance (ESG) reporting requirements, reveals research by accounting and advisory firm BDO. Over the past four years, there has been a staggering 74% increase in global ESG disclosure demands, denting investor confidence. The main hurdle, cited by 71% of investors, is the inconsistency and incompleteness of ESG data. Specifically within mining, only 36% of companies were disclosing their energy intensity by volume of ore mined as of October 2022. Moreover, most mining players provide only general corporate reporting on ESG, lacking site-specific disclosures. The Global Sustainability Standards Board has attempted to address these challenges with 25 mining industry-specific topics in its Global Reporting Initiative Sector Programme. While these standards were released in early 2024 and are set to take effect from January 2026, compliance with ESG reporting requirements will likely demand substantial investments in artificial intelligence technologies and carbon dioxide emissions calculation software. Carbon taxes pose another ESG-related challenge for the mining sector, with implications for profitability due to the energy-intensive nature of ore extraction and processing. To mitigate liability, mining companies can turn to renewable energy sources. Meanwhile, the rise of carbon taxes is expected to drive demand for low-carbon technologies, presenting opportunities for mining firms specialising in energy transition metals. Ultimately, the success of the mining industry in the years ahead hinges on capitalising on emerging opportunities while adeptly navigating the complexities of the evolving ESG reporting landscape. #SustainabilityReporting #Mining #ESG #Transparency Global Reporting Initiative (GRI) https://lnkd.in/dcihx2G5

The Global Reporting Initiative (GRI) recently launched its sustainability reporting standard tailored specifically for mining companies. Unlike existing standards that primarily focus on financial risks, GRI 14: Mining Sector 2024 addresses the sector's broader impacts on sustainable development. Developed through a multi-stakeholder approach, this standard covers 25 material topics, including transparency, emissions, human rights, and biodiversity. It introduces new areas such as tailings management and artisanal mining. Noora Puro, GRI senior manager, emphasises the importance of transparency and aligning with existing responsible mining practices. As the EU prepares to implement sustainability reporting standards, GRI's mining standard provides a blueprint for transparently communicating impacts and meeting evolving regulatory expectations. #mining #GRI #sustainability #supplychain #commodities https://lnkd.in/gb_m7WT2