Abstract:
Consideration of environmental and social ‘modifying factors’ has long been an inherent requirement of CRIRSCO-aligned national reporting codes. Yet, across the industry, environmental, social and governance (ESG) factors have only received brief, if any, attention in the majority of Public Reports. This leaves investors unaware of the risks to their capital from ESG factors, which are widely recognised as being materially important to the long-term success of mineral projects.
This lack of disclosure takes place against a backdrop of growing investor and societal demands for increased transparency around ESG risks (threats and opportunities) and the associated implications for exploration and mining projects. Incidents across the mining industry continue to emphasise the importance of identifying and managing ESG factors meaningfully and effectively from the very inception of the mining lifecycle. The surge in demand for responsibly produced critical minerals to support the energy transition, and the associated policy and regulatory mechanisms that this has and continues to trigger, further emphasises the importance of active stewardship of all ESG factors in exploration and mining projects.
Recognising the potential impacts of ESG factors on exploration results, mineral resources. and mineral reserves, as well as the need to support competent persons in their efforts to integrate and disclose ESG factors in Public Reports, the South African SAMCODES Standards Committee (SSC) responded. The SAMESG Committee was established in 2014 with the objective of developing guidance to support users of the SAMCODES with ESG integration. The South African Guideline for the Reporting of Environmental, Social and Governance Parameters within the Solid Minerals and Oil and Gas Industries (SAMESG Guideline) was published and became effective alongside the 2016 updates to the SAMCODES.
This presentation will reflect on the SAMESG Guideline’s history, achievements, challenges, and future ambitions. It will consider these against the rapidly evolving context within which the mining industry is operating including other workstreams taking place within the CRIRSCO family.
