Photo: Whitehaven
More than compliance – the rising importance of the ‘S’ in ESG
Ngaire Tranter, General Manager ESG, RPM Global
W
ithin all sectors of industry we’re seeing a surge in Environmental and Social Governance (ESG). This new wave of sustainability is different to what has gone before. It’s driven by an era of globalisation and is heavily influenced by geopolitical dynamics, an increase in societal expectations and a rise of nationalism in these current pandemic orientated times. So, what does this actually mean for projects here in Queensland, and more broadly, Australia? 76
BBMC Yearbook 2021
Within the current robust regulatory environment, there is pressure to transparently communicate the status of ESG within your project and/or organisation. The minute you supply to market, seek finance or communicate to key stakeholders such as shareholders, community and First Nations People, there is now an expectation that you are able to clearly communicate your ESG strategy and performance. This expectation encompasses all aspects of running your business, from your internal operations to your supply chain, both upstream and downstream. This ESG pressure has started to align with economic considerations and, where perhaps sustainability was once a “feel good” action, there is now an expectation for clear analysis and metrics that consider all aspects of ESG and underpin your internal and external communications.
In terms of ESG, we miners are well positioned. We’re adept at being compliant on all fronts of ESG, as our policy environment and community demands. However, the dial is shifting, and simple compliance with policy and standards is no longer acceptable. There is an expectation of proactive and innovative approaches to ESG. The recent Juukan Gorge case is a clear example and highlights that compliance is not necessarily a defendable position. The pathway for the ‘E’ and the ‘G’ in ESG is relatively clearly mapped out. There is plenty of talk around the E in terms of net zero or decarbonisation planning, which is truly all-encompassing of environmental considerations once you delve into the detail. The G is supported by our policy environment, in particular the ASX, United Nations Compact and the raft of international standards such the Global Reporting Index, Sustainable Development Principles, International
