Tag Archives: ESG

Newmont lauded for leading ESG practices

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Newmont, this week, has been recognised by a trio of independent organisations for its management performance and social responsibility, action on climate-related issues and advancing women in the workplace.

The leading gold miner, which is scheduled to produce 6.4 Moz of gold in 2020, ranked as the top mining company on FORTUNE’s 2020 list of the World’s Most Admired Companies based on an in-depth global survey conducted by the magazine. It posted strong scores across several dimensions, including quality of management, social responsibility, long-term investment, people management and innovation, it said.

At the same time as this, for 2019, Newmont earned a ‘B’ in CDP’s (formerly known as the Carbon Disclosure Project) Climate Change assessment, reflecting the company’s coordinated action on climate issues.

“Newmont was recognised for strong climate governance and financial planning in response to climate-related impacts,” the miner said, adding that it ranked above average for all responders in the metallic minerals mining sector and all business sectors in North America and globally.

For the second consecutive year, Newmont was also included in Bloomberg’s Gender-Equality Index (GEI) for the company’s efforts to advance qualified women in the workplace. Newmont is one of 325 companies, spanning 50 industries globally, to be included in this year’s GEI.

Tom Palmer, President and Chief Executive Officer, said: “Continuing to thrive in our next 100 years will require strong and transparent corporate governance, responsible environmental stewardship, and a diverse and inclusive workplace that allows us to attract and retain top talent.

“Aligning our business strategy with the interests of our shareholders and stakeholders through leading environmental, social and governance (ESG) practices is key to creating sustainable, long-term value in the years and decades ahead.”

In December, Newmont was ranked the top mining company in Newsweek’s first-ever list of America’s Most Responsible Companies for 2020. Of the 300 businesses selected for inclusion in Newsweek’s index, the company placed 39th overall.

This followed, in September 2019, Newmont being named the top global gold mining company on the Dow Jones Sustainability World Index for the fifth consecutive year, being the overall mining and metals industry leader for four of those years.

MineHub adds commodity trade finance expert to blockchain platform

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MineHub has added London-based asset management company Kimura Capital to its growing consortium of industry participants.

The news comes just a few weeks after the technology platform to improve efficiency in trading operations and environmental and social governance (ESG) compliance in mining and metals supply chains confirmed it was ready for its first blockchain customers.

Kimura, a specialist in commodity trade finance with expertise in financing complex logistical operations, is a member of the Alternative Investment Management Association.

“Kimura’s experience in finance will provide another important source of financial liquidity within the mining and metals ecosystem,” MineHub said. “The partnership with MineHub will be instrumental in driving the innovation within the industry.”

The company continued: “With financial institutions adapting to a changing regulatory environment, the provision of alternative finance plays an increasingly important role in facilitating the availability of credit, not just for trade finance, but also project and institutional finance. Improving access to capital is therefore a core part of the MineHub value proposition and a key area of focus is on enabling an integrated mix of institutional and alternative finance actors to provide new financing structures.”

MineHub has been working on this technology platform in collaboration with IBM and leaders across the mining supply chain including ING Group, Wheaton Precious Metals, Ocean Partners USA, Kutcho Copper, Capstone Mining and White & Case LLP. It went live earlier this month, with the company saying initial usage and transactions with consortium members was anticipated to commence within the next few weeks.

Arnoud Star Busmann, CEO of MineHub, said having Kimura on board as a consortium member is very strategic for MineHub.

“Offering optionality in financing sources is core to our strategy and Kimura is a clear leader in this sector, both in size and diversity, as well as their commitment to innovation, technology and sustainability.”

He added: “Working with Kimura and their peers, in conjunction with commercial banks and other financial institutions, MineHub will improve the working capital options and costs for miners, traders and other users. Our solutions will serve both large corporates and SMEs within the market, whilst contributing to responsible supply chains by linking risk pricing to ESG profiles of minerals.”

Kristofer Tremaine, CEO and Founder of Kimura Capital, said digitisation is the future for the market.

“Kimura has developed its business by selecting best-in-class partners in order to strengthen its overall offering. We are delighted to begin a partnership with MineHub whom have outstanding potential and represent Kimura’s first cooperation in the digitisation of commodity trade flows.”

MineHub added: “Digitalisation, transparency and automation will help reduce operational and fraud risks, thereby lowering the barriers to entry for alternative financing sources. Increased operational efficiencies and automation of ESG compliance will enable alternative financing houses to serve more clients without increasing operations and overheads.”

Miners still need social licence for their autonomous vehicles, Wilson says

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Mining companies embracing automation and technological innovation must be also be aware of the possible implications for their social licence to operate, according to a social performance specialist.

Dr Ceit Wilson, who has more than eight years of professional experience in addressing the social and development challenges of the extractive resources industry, says there are risks around the future of technology and employment, especially from a social perspective.

Dr Wilson will address the issue in a presentation at this year’s International Mining and Resources Conference (IMARC) in Melbourne in October – Australia’s largest mining event.

Issues around social licence to operate and sustainable mining principles will be a key focus for the three-day conference with a dedicated workshop and two conference sessions covering the topic.

Environmental health and safety, social licence, sustainability, staff retention and skills development are also among the topics set to be discussed in the free to attend Collaboration Theatre, one of five concurrent conferences at IMARC.

“I intend to use my presentation at IMARC to bring attention to the fact that the while the mining industry is positively benefiting from automation and technology innovation, we need to address the question of how technological change will impact the host communities in which they operate,” Dr Wilson said.

“This is somewhat of a paradox given that gaining and maintaining a ‘social licence to operate’ is one of the key challenges currently facing the sector.

“We know it is no longer enough for mining companies to simply meet the formal obligations of an ‘environmental licence’ to extract resources.

“They are increasingly expected to behave responsibly and make a positive contribution to the communities in which they operate.

“One of the main ways mining companies seek to deliver this social value to regional communities is through the provision of local employment and business development opportunities.

“The concern is that automation technology may disrupt this positive trend. We are already seeing major mine operations in Western Australia and Queensland replacing human operators with autonomous trucks and robotics, and shifting control centres to the capital cities, miles away from where actual mining takes place.

“And yet industry has been silent on the potential risks that these future technologies may pose for communities and broader stakeholders.

“Disregarding these risks may leave companies ill equipped to respond to social impacts when they occur, with potential consequences for their relationship and trust with communities.

“Any company that is genuinely committed to protecting their social licence to operate will need to carefully consider and reassess how their projects will continue to deliver social value to the regional communities in which they operate if, as a result of automation, local employment and procurement opportunities are no longer as readily available.

“Maintaining a social licence will require balance and attention to alternative ways in which social value can be delivered.

“This may include a consideration of alternative livelihood or benefit sharing models, or a greater focus on the transfer and sharing of industry’s knowledge of technology through training and education programs.”

IMARC will be held from October 29-31 at the Melbourne Convention & Exhibition Centre.

International Mining is a media sponsor of IMARC

Newmont Goldcorp wins mining gold again for ESG practices

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Newmont Goldcorp has made it onto the Dow Jones Sustainability World Index (DJSI) for the 12th consecutive year, also being named the top global gold mining company.

Newmont, which added Goldcorp to its mining mix earlier this year, was the first gold company named to the index in 2007. It was recognised for its leading environmental, social and governance (ESG) performance as the Metals and Mining sector leader by the index for a fourth year in a row in 2018.

Tom Palmer, President of Newmont Goldcorp, said: “Leading ESG performance not only helps us manage risk and create value for our stakeholders, it is also an indicator that our business is well-managed and positioned for long-term success.

“It is thanks to our employees’ strong commitment to our values that we are able to consistently demonstrate leading sustainability performance in our sector. While we are honoured to be included again on the DJSI, we recognise there is always room for improvement and will continue working to drive our performance to higher levels.”

DJSI evaluates companies based on a corporate sustainability assessment (CSA) conducted by Swiss-based RobecoSAM, a sustainability asset management, analysis and investment firm. The CSA evaluates 20 financially material sustainability criteria across economic, environmental and social dimensions.

Newmont Goldcorp said: “The DJSI’s results provide comparable and actionable data that allows investors to integrate ESG factors into their investment decisions, while identifying those companies that are well-positioned to address current and future sustainability-driven challenges and opportunities.”

The company said it ranked in the 100th percentile for leading performance in the following areas:

  • Economic: corporate governance, risk and crisis management, and materiality;
  • Environmental: management of water-related risks; and
  • Social: Labour practices, corporate citizenship, and talent attraction and retention.

Manjit Jus, Head of ESG Ratings, RobecoSAM, said: “We congratulate Newmont Goldcorp for being included in the DJSI World and the DJSI North America indices. The SAM Corporate Sustainability Assessment has again raised the bar in identifying those companies best-positioned to address future sustainability challenges and opportunities.”

World Gold Council formalises ESG standards for miners

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The World Gold Council (WGC), the market development organisation for the gold industry, has announced the launch of its Responsible Gold Mining Principles.

The principles are a framework that set out expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining, the WGC said.

Working with the world’s leading gold mining companies – the WGC’s members – the council has set out the principles it believes address key environmental, social and governance (ESG) issues for the gold mining sector.

The principles focus on 10 key areas. Under the governance section, this includes ethical conduct, “understanding our impacts” and the supply chain. Social concerns include safety and health, human rights and conflict, labour rights and working with communities. The remaining three in the environmental bracket are environmental stewardship, biodiversity, and water, energy and climate change.

It is the World Gold Council’s aim that the Responsible Gold Mining Principles become a credible and widely recognised framework through which gold mining companies can provide confidence that their gold has been produced responsibly, the WGC said, acknowledging that ESG considerations are becoming increasingly important to consumers.

Companies implementing the Responsible Gold Mining Principles will be required to obtain external assurance from a third party, independent assurance provider. This will provide further confidence to purchasers of gold that the gold they buy is responsibly mined and sourced, it said.

Gary Goldberg, CEO of Newmont Goldcorp, who oversaw this initiative on behalf of the Board of the World Gold Council, said: “Adherence to strong ESG principles should be a key part of any responsible gold mining business and, as such, the members of the World Gold Council have collaborated, along with key industry stakeholders, to develop the Responsible Gold Mining Principles.

“Given the Members’ sustained focus on improving ESG performance, the formalisation of the Responsible Gold Mining Principles is a natural evolution of our daily working practices. It is my hope that these principles will be widely adopted, not only by member companies, but by the industry more broadly.”

Terry Heymann, Chief Financial Officer of the WGC, said it was the council’s aim that the principles reinforce trust in gold and the gold mining industry.

“Consumers, investors and the downstream gold supply chain will be able to know, with confidence, that their gold has been responsibly sourced,” he said. “The principles incorporate feedback from more than 200 organisations and individuals over two rounds of consultation and are designed to support the efficient operation of the gold market.”