Africa ESG Risks - Mining Industry In Africa 2022
Environmental, social, and governance (ESG) issues in the Mining industry in Africa.
Although most mining companies operating in Africa, especially the larger companies, have had ESG on their agendas for some time, there is now more progress about embedding ESG policies into their operations, because Mining companies that demonstrate their ESG objectives are achieved or achievable are more likely to attract investors and customers.
Incorporating ESG risks and benefits into corporate strategies can help mining companies enjoy the benefits of technology, diversity and sustainability while building resilience and agility against future challenges.
In Democratic Republic of the Congo, DRC, ESG pressure is being exerted by not only investors but also mining customers, buyers would like to be assured that the minerals they are buying are being produced as sustainably and ethically as possible.
Even though there is no conclusive list of ESG risks for the mining sector to consider, they usually include the following environmental, social, and governance factors.
The environmental approach: to measuring and managing air, water, and soil pollution. These criteria extend not just through the life of a mine, but also to post-production activities.
The social approach: examines how well a company treats human rights, land use, resettlement, vulnerable people, gender, labor practices, and values its employees and broader communities but also health & safety, security, artisanal miners, mine closure.
The governance approach assesses a company's corporate governance practices such as legal compliance, ethics, anti-bribery, and corruption (ABC), transparency, and the company's relationship with governmental and regulatory bodies, as well as NGOs.
Attracting sustainable investment is a key challenge for African countries; the continent is also directly and indirectly exposed to the transition risks associated with climate change, which is amplified by the dependence of many economies, and jobs, on minerals, energy, and mining.
Taking ESG seriously will not only help companies save time, money, and the planet, it will also help them save lives.
As a social impact business, HCBS promotes good governance, fights against corruption, and works closely with mining companies by producing an independent report based on local community relations and benefits.
We can ensure that your investment in Africa meets the United Nations Sustainable Development Goals, global Best Governance Standards and benefits the local community whilst meeting your business objectives.