- More and more mining companies are pledging the bid for the green revolution with the environmental, social, and governance (ESG) practices.
- The academe has shown its support for this by providing a more accessible learning experience for mining practitioners.
- Challenges in the transition to green energy still loom over the industry, with many companies balancing out their productivity and profitability under such practices.
The mining industry is one of the most important sectors in the world, providing the raw materials that are essential for many industries and for the maintenance of our society as a whole. However, the mining industry is also one of the most polluting and damaging industries, with a huge environmental impact.
The transition to a green economy is, therefore, a key challenge for the mining industry. This transition will require a fundamental change in the way that the mining industry operates, in order to reduce its environmental impact and move towards sustainable development.
Aside from government environmental policies in motion, the academe has also expressed its support for the green revolution, taking on initiatives to provide learning and insight into the relationship between the green revolution and the mining industry.
More and more learning resources are now available for these including online education like Edumine courses and mining books integrated with environmental, social, and governance (ESG) practices.
Learning ESG in a virtual space
For one, Edumine, the world’s leading provider of training and education to the mining industry, is showing its support for a more responsible mining industry by offering a new introductory course on environmental, social, and governance (ESG) practices.
Edumine course on ESG emphasizes a foundational understanding of the ESG and how it is related to investing. It provides the learner with an introduction to the different types of ESG, as well as how they affect investment decisions.
The course includes a brief history of sustainability, the circular economy, the global factors driving demand as well as the strategic steps that organizations can take to lead the way in this new paradigm.
The benefit of completing the course is that you will be able to learn new skills that can help you in your career. You will also be able to network with other professionals who have similar interests. Additionally, you may be able to find a job or internship through the course.
Edumine courses are delivered both online and on-site and are offered to everyone from beginner miners to senior management and technical specialists.
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Increased investment in ESG
In recent years, there has been an increased awareness of sustainability and a focus on reducing environmental footprint. The circular economy is a model for economic activity that is restorative and regenerative by design. There are many benefits to adopting a circular economy including lower costs, higher profits, and improved competitiveness.
The idea behind ESG investing is that companies with strong ESG practices tend to be better run and more sustainable in the long-term, which leads to better financial performance.
There is a growing body of evidence to support this claim. A recent study by MSCI found that companies with strong ESG practices outperformed their peers.
“ESG analysis and integration is increasingly becoming mainstream in APAC, and the rate of adoption has increased during the pandemic,” Gabriel Wilson-Otto, global head of sustainability research at French bank BNP Paribas asset management, said on CNBC
The goal of ESG is to create a more sustainable and equitable world. By adhering to these standards, companies can reduce their negative impact on the environment, improve working conditions for employees, and be more transparent in their business dealings.
There are many benefits to implementing ESG standards. For one, it can help companies attract and retain talent. Employees are increasingly looking for employers who share their values, and who are committed to making a positive impact.
One mining news that keeps floating is the challenges in implementing ESG in the mining industry as many companies view it as an added cost. According to a Responsible Mining Foundation report that assessed 38 large-scale mining companies, while many mining companies mention the United Nations Sustainable Development Goals in their sustainability reporting, few have actually integrated them into their business strategies.
There is often a misconception that following these practices will impede on operational efficiency and profitability, most notably for steelmakers which are producing intensive carbon energy to produce output.
the Institutional Investors Group on Climate Change said that emissions from steel production account for 9% of the global total.
“If companies cannot produce in a cleaner way then they won’t be able to ramp up and meet the rising demand,” said James Attwood Senior Reporter Commodities at Bloomberg.
Another challenge is that due to the nature of the mining industry, it can be difficult to track the environmental and social impacts of individual projects. This can make it difficult to assess and address any negative impacts.
It’s also challenging to get buy-in from all stakeholders, including shareholders, employees, and local communities. Implementing ESG practices often requires change and compromise from all parties, which can be difficult to achieve.
A report by EY Global Mining and Metals recently said “For the first time in our annual report on the sector, mining and metals companies rank environment and social issues as their number one risk.”
One of its surveys even showed that 79% of its survey respondents expect royalties and taxes to increase in the coming years.
“2022 is likely to see more geopolitical challenges, including changing governments and resource nationalism. Seventy-nine percent of miners expect royalties and taxes to increase. Mitigating risks will require a diverse approach that includes engaging with governments and building supply chain resilience,” the report said.
ESG practices are important for any industry, but especially for the mining industry. By implementing these practices, companies can reduce their environmental impact, improve their social responsibility, and protect their shareholders. While there is some initial investment required to implement these practices, the benefits far outweigh the costs.