Tag Archives: Rohitesh Dhawan

ICMM members commit to new stakeholder social and economic indicator framework

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The International Council on Mining and Metals (ICMM) has published a new Social and Economic Reporting Framework which, it says, commits members to report against a set of social and economic indicators, empowering stakeholders such as communities, governments and investors to assess the contribution of mining to social and economic development more easily.

ICMM members, representing around a third of the industry, have committed to report on eight key indicators which includes country-by-country tax reporting on revenues, payment and tax, workforce composition, pay equality, wage level, training provided, local procurement, education and skills programs, and capacity building.

This disclosure will also help companies to better assess and strengthen the delivery of their social and economic contribution programs and provide a clearer overview of the contribution mining is making to economic growth, employment, skills, health, education and a range of other development opportunities in the regions close to their operations, the ICMM said.

Rohitesh Dhawan, CEO of ICMM, said: “Mining plays a significant role in driving social and economic development in the regions where it takes place. What has been missing until now is a consistent set of indicators that measure these contributions, like for like. ICMM’s Social and Economic Reporting Framework raises the bar in several areas including the disaggregation of data by gender and ethnicity, and reporting of employee wages compared to the local living wage. This commitment represents a major step forward, and I encourage all mining companies to adopt the framework to provide a more complete picture of the industry’s social and economic contribution and collectively identify areas for improvement.

“We recognise that there is still more to do to measure, prevent and manage the negative impacts mining activities can have on local communities. We will continue to work closely with stakeholders to assess the potential evolution of the framework so that we can build on the data already being provided to give a clear picture of our members’ performance.”

Chris Griffith, CEO Gold Fields, said: “Along with other ICMM members, Gold Fields was actively involved in the development of the framework as we believe the reporting of social and economic indicators is critical to help provide a clear picture of the contribution we make. This transparency is key to winning the trust of our stakeholders, particularly host communities and governments. We are already aligned with several of the indicators – as reported in our annual Report to Stakeholders – and are working towards disclosure against the full framework.”

The framework was developed through an assessment of existing reporting frameworks and company practices relating to social and economic contribution. It was informed by consultation with a range of external stakeholders including investors, civil society, customers, and international organisations and tested at sites by ICMM members. It builds on existing frameworks such as the Global Reporting Initiative, thereby ensuring a streamlined approach to reporting. Where indicators were not available in existing frameworks, new ones have been developed and included in the framework.

ICMM members have already started the work needed to incorporate these indicators into their reporting systems and are committed to disclose against the indicators by 2024, except for country-by-country tax, for which reporting is expected from 2025.

Dhawan will be moderating a panel at Investing in African Mining Indaba in Cape Town, South Africa, this week, where ICMM Council member Chris Griffith (Gold Fields CEO) and Anglo American South Africa Chair, Nolitha Fakude, will discuss mining’s overall contribution to society, the importance of consistent reporting on contribution, and how transparent reporting will help to build trust across the sector.

International Mining is a media sponsor of the Investing in African Mining Indaba in Cape Town, South Africa

ICMM looks to address mining industry approach to social performance with new tools

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The International Council on Mining and Metals (ICMM) has published a set of practical tools to, it says, strengthen approaches to managing social performance within mining companies, to support more harmonious company-community relationships and enable positive socio-economic outcomes.

Social performance is the outcome of a company’s engagement, activities and commitments that directly and indirectly impact stakeholders, particularly the local communities that live close to mining operations. Good social performance requires companies to have robust management approaches and systems in place that avoid harm to people and planet, whilst contributing to social and economic development.

ICMM’s new tools have been designed to support companies to strengthen these capabilities, in order to build and maintain positive relationships with local communities and broader society.

Rohitesh Dhawan, CEO at ICMM, said: “Mining-related activity affects local communities and often takes place on Indigenous land. The industry has a critical role to play in creating lasting positive impact for those affected and can only achieve this through consistent approaches to social performance.

“This isn’t something that our industry has always got right, and we have seen the devastating impact it can have when it goes wrong. Just as financial and environmental risks are integrated across business decision making, these tools support companies to better integrate social risks and impacts to manage their social performance more effectively. ICMM’s social performance tools are available to the entire industry. They will support business leaders and social performance practitioners assess the maturity of social performance in their business, build competency, integrate social performance across the business and contribute to the organisational culture required to consistently avoid harm and deliver business and societal value.”

Tom Palmer, CEO of Newmont and Chair of ICMM’s CEO Social Performance Advisory Group, said: “Improving social performance will require leadership, commitment, tools and a willingness to be held to account for our impacts. I am reminded every day about the impacts our activities can have on people’s lives-our commitment to eliminating fatalities from our workplace is an example of where leadership, commitment and vigilance must exist for us to ensure our people go home safe every day.

“Improving social performance requires us to stand in the shoes of the community or those directly impacted by our activities-how do we like what we see when we look back at ourselves?”

The tools have been developed to support leaders, non-experts, and social practitioners as they work to better integrate social performance throughout their businesses. The individual tools include:

  • Accessible introduction to social performance, the value it delivers and how to achieve good performance;
  • A maturity matrix to establish where a company is on their social performance journey and guidance on developing an action plan;
  • A competency framework to help build the experience, skills and knowledge needed to manage social performance successfully;
  • Guidance on how to integrate community engagement across site-level activities;
  • Guidance on how to integrate social performance across the business as a whole; and
  • Support for leaders and decision-makers working to embed social performance into their operating model

These tools build on ICMM’s existing bank of guidance and resources on social performance.

ICMM members pledge to reach ‘net zero’ by 2050 or sooner

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Members of the International Council on Mining and Metals (ICMM) have committed to a goal of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner, in line with the ambitions of the Paris Agreement.

This landmark commitment was made in an open letter signed by the CEOs of ICMM’s company members.

Although the companies within ICMM have individual decarbonisation targets, which in some cases go beyond ICMM’s collective commitment, this represents a joint ambition.

“The rate and nature of the ultimate decline in emissions will vary across the different commodities and geographies represented by our diverse membership,” the ICMM says. “Yet our approach to individually setting and meeting targets will be consistent and include the following, no later than the end of 2023 where these do not already exist:

  • “Setting Scope 1 and 2 targets: we will build clear pathways to achieving net zero Scope 1 and 2 GHG emissions by 2050 or sooner, through meaningful short and/or medium-term target;
  • “Accelerating action on Scope 3 GHG emissions: we recognise that Scope 3 is critical to minimising our overall impact and we will set Scope 3 targets, if not by the end of 2023, as soon as possible. Although all Scope 3 action depends on the combined efforts of producers, suppliers and customers, some commodities face greater technological and collaborative barriers than others. We will play a leading role in overcoming these barriers and advancing partnerships that enable credible target setting and emission reductions across value chains;
  • “Covering all material sources: our targets will cover all material sources of emissions, aligning to the GHG Protocol definition of organisational boundaries and materiality;
  • “Focusing on absolute reductions: for some operations, intensity rather than absolute targets may be more appropriate in the short and medium term. Where intensity targets are used, we will disclose the corresponding absolute increase or decrease in GHG emissions;
  • “Applying robust methodologies: we will use target-setting methodologies that are aligned with the ambitions of the Paris Agreement and disclose in detail the assumptions we use; and
  • “Disclosing openly and transparently: we will report our progress on Scopes 1, 2 and 3 annually, obtain external verification over our performance, and report in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures.”

These commitments are additional to and have been incorporated into an update of ICMM’s Climate Change Position Statement which had several pre-existing commitments on performance and disclosure. Action on climate change is an integral part of ICMM’s Mining Principles, representing the comprehensive commitment to a responsible mining and metals industry, it says.

Rohitesh Dhawan, CEO, ICMM, said: “As the suppliers of the minerals and metals that are critical to decarbonisation and sustainable development, we have a particular responsibility to minimise the impact of our operations on the environment. ICMM members’ collective commitment to net zero Scope 1 and 2 GHG emissions by 2050 is a pivotal moment in our history. We are speaking with one voice, representing approximately one third of the global mining and metals industry – including more than 650 sites in over 50 countries – so that we drive emissions reduction at a significant scale.

“ICMM members have and will continue to set meaningful short and/or medium-term targets to build clear pathways to achieving this goal, while also accelerating action on addressing Scope 3 emissions and enhancing disclosure. We encourage other mining and metals companies, suppliers and customers to join us in decarbonising commodity value chains so that we collectively accelerate climate action in our wider industry.”

Gonzalo Muñoz, UNFCCC High Level Climate Action Champion, added: “I welcome the leadership and joint ambition of ICMM members to commit to a goal of net-zero Scope 1 and 2 GHG emissions by 2050 or sooner, and I strongly encourage companies to set scope 3 GHG emissions reduction targets by the end of 2023. The High-Level Climate Action Champions encourage members to strive to set the most ambitious science-based targets possible in line with the criteria of the Race to Zero campaign.”

Life in Mining Dependent Countries on the up, ICMM report says

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The International Council on Mining and Metals (ICMM) today launched a report which, it says, found that life in Mining Dependent Countries (MDCs) has improved significantly in the last 23 years.

The report analyses 41 social metrics grouped under 12 relevant United Nations Sustainable Development Goals (SDGs) and, across three quarters of these metrics, there has been significant progress made on socio-economic development. The metrics include neo-natal mortality, adult literacy, and access to electricity, with the findings showing the greatest progress has been made across health and well-being, access to quality education, clean water, sanitation and affordable clean energy. The countries with the biggest relative improvements include Bolivia, Botswana, Indonesia, Ghana, and Peru, the ICMM said.

“The research indicates that most mining-dependent countries, which are among some of the poorest in the world, continue to close the socio-economic performance gap with non-resource dependent countries,” the ICMM said. “However, governance matters. The research strongly suggests that the higher the quality of governance, the stronger the socio-economic progress observed in these countries. A stable, enabling environment has the strongest positive relationship with good socio-economic outcomes. The analysis indicates that countries that are more peaceful, have lower levels of corruption, and a vocal and active civil society with sufficient civic space are better able to translate natural resources into social progress. Having mining regulations and frameworks is an insufficient condition for good socio-economic outcomes and the analysis demonstrates that effective implementation is critical.”

ICMM’s Chief Executive Officer, Rohitesh Dhawan, said: “This report builds on the extensive research we conducted in 2018, challenging the notion that an abundance of natural resources in host countries damages economic and social progress. However, without strong resource governance and, most critically, effective implementation of mining regulations and frameworks, host countries are unlikely to feel the benefits of mining operations. The mining industry has a central role to play in this as a catalyst for change, supporting effective implementation of the frameworks needed to help deliver the UN SDGs.”

Orano’s Chief Executive Officer, Philippe Knoche, said: “Good governance contributes to a better sharing of economic benefits and a better acceptability of our activities. Uranium mining with its long-term operations plays a vital role in enabling clean energy. When produced responsibly, it contributes to the wealth of regions and countries. This is how Orano Mining sees its role as a responsible miner.”

Newcrest’s Chief People and Sustainability Officer, Lisa Ali, said: “Improving our performance as an industry – and working with governments, communities, civil society to do so – will help us to better contribute to sustainable growth and aid social progress.”

The Extractive Industries Transparency Initiative (EITI)’s Chair, Rt Hon. Helen Clark, said: “The findings of the report are encouraging, and align with the EITI’s Principles, which state that the prudent use of natural resource wealth should be an important engine for sustainable economic growth. High standards of governance, transparency and accountability are a necessary condition, without which the developmental benefits of the resource sector will continue to be elusive. We, therefore, encourage governments and companies to consider how they can improve efforts towards transparency, including through implementation of the EITI Standard.”

The Natural Resource Governance Institute (NRGI)’s President and Chief Executive Officer, Suneeta Kaimal, said: “In the wake of the pandemic, mineral-rich developing countries face rising poverty, increased corruption risks and growing debt. Good governance by countries and companies – disclosing critical information, ensuring open public dialogue, and promoting evidence-based decision making – is crucial to enabling sustainable, equitable recovery for citizens and a greener planet. ICMM can leverage its collective power to help producer countries harness growing demand for minerals associated with the energy transition, develop new models for benefit-sharing, reinforce lessons learned about good governance, and ultimately transform potential into prosperity.”

The analysis from this report can be used as a baseline of the status of socio-economic progress in MDCs prior to the COVID-19 pandemic, the ICMM said. As countries look to rebuild to an even stronger position, the importance of understanding the linkage between effective resource governance and social progress will become increasingly important.

The report, ‘Social Progress in Mining-Dependent Countries: Analysing the role of Resource Governance in delivering the UN Sustainable Development Goals (SDGs),’ builds on the research undertaken in ICMM’s 2018 study, ‘Social Progress in Mining-dependent Countries.’

ICMM appoints Rohitesh Dhawan as new Chief Executive Officer

Environmental, Mining people, Mining safety, Sustainable mining, Water management, , , , , , , , ,

The International Council on Mining and Metals (ICMM) has announced the appointment of Rohitesh Dhawan as Chief Executive Officer, following a competitive global selection process, to succeed Tom Butler, who will step down on April 6, 2021.

Dhawan is a sustainability specialist with significant experience in the resources sector. His most recent role was as Managing Director and Head of the EMEA region at Eurasia Group, a geopolitical research and analysis firm, where he led the climate change and sustainability practice. Prior to this, Dhawan’s roles included Global Head of Sustainability for the Mining Sector and Global Strategy Director at KPMG International. He currently serves on the expert panel on climate change for the UK government’s Partnering for Accelerated Climate Transitions Programme (PACT).

Richard Adkerson, ICMM Chair and Chairman and CEO of Freeport-McMoRan, said: “I am pleased to welcome Rohitesh as CEO of ICMM. He brings a deep commitment to sustainable development, and strong on-the-ground experience. His extensive knowledge of the challenges and opportunities facing our industry will be invaluable as we work together to address some of the biggest issues facing our sector, and advancing important initiatives that reflect our collective commitment to continuous performance improvement.

“I would also like to recognise Tom’s outstanding contribution to ICMM over the last six years, and on behalf of the council, I would like to thank him for his leadership and commitment. I am looking forward to working with Rohitesh to build on the strong foundation that Tom leaves behind.”

On his appointment, Dhawan said: “I am excited to be joining ICMM in arguably the most important decade for the industry. The foundations of a net zero emissions economy are being laid now, and minerals are critical to it. But many environmental, social and governance challenges remain unresolved, and I can think of no better vehicle than ICMM to convene the necessary solutions. I’m delighted to be in service of an industry that touches all our lives, and to join an organisation that is united in the goal of achieving the highest possible standards of sustainability.”

Tom Butler, CEO of ICMM said: “It has been an immense privilege to lead ICMM. During my tenure we have tackled some key challenges, but much remains to be done. I am pleased to be handing the reins over to such a strong leader for the next phase. I want to take this opportunity to thank our members and everyone in the ICMM team for their sterling support over the last six years.”